GI Bill is fine because it is not used for colleges and universities that do NOT meet the educational requirements. There ARE religious AND private schools that GI bill will not be allowed at because they do not conform to certain regulations. 

This is the same way. If these schools want to steal public money, then fine, just conform to the needed regulations.

https://gibill.custhelp.com/app/answers/detail/a_id/1481/~/how-does-a-school-get-a-program-approved-for-gi-bill-benefits%3F