A bill to amend title 38, United States Code, to require the Secretary of Veterans Affairs to provide educational counseling to individuals eligible for educational assistance under laws administered by the Secretary before such individuals receive such assistance, and for other purposes.

Summary: GI Educational Freedom Act of 2012 - Requires any individual eligible for veterans' educational assistance through the Department of Veterans Affairs (VA) to be provided educational and vocational counseling services before the receipt of such educational assistance, unless the individual specifically declines such counseling. Outlines information to be included in such counseling. Directs the Secretary of Veterans Affairs to make such information available to the public.

Repeals the $6 million fiscal year limit for VA contracting for such counseling services.

Directs the Secretary to establish a system to collect, process, and track complaints submitted by individuals enrolled in VA programs of education to report instances of fraud, waste, and abuse with respect to benefits and services provided by educational institutions. Requires a state approving agency, when considering whether to approve a course of education at an educational institution, to review and take into consideration the complaints processed and tracked by such system. Provides for the confidentiality of such complaints.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``GI Educational Freedom Act of 
2012''.

SEC. 2. REQUIREMENT FOR PROVISION OF EDUCATIONAL COUNSELING TO 
              INDIVIDUALS BEFORE SUCH INDIVIDUALS RECEIVE EDUCATIONAL 
              ASSISTANCE PROVIDED UNDER LAWS ADMINISTERED BY SECRETARY 
              OF VETERANS AFFAIRS.

    (a) In General.--Section 3697A of title 38, United States Code, is 
amended--
            (1) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c)(1) Except as provided in paragraph (2), in the case of an 
individual described in subsection (b)(1), the counseling services 
described in subsection (a) shall be required to be provided to the 
individual before the individual receives the educational assistance 
described in such subsection.
    ``(2) The requirement to provide counseling services under 
paragraph (1) shall not apply with respect to an individual described 
in such paragraph who communicates to the Secretary, before receiving 
educational assistance described in such paragraph, that the individual 
declines the counseling services provided under such paragraph.
    ``(3) For each individual to whom the Secretary provides counseling 
services under paragraph (1), the Secretary shall provide to the 
individual, as part of such services and to the degree that information 
necessary to carry out this paragraph is available to the Secretary, 
the following:
            ``(A) An explanation of the different types of 
        accreditation and State certification and licensure available 
        to educational institutions and programs of education and a 
        discussion of how such accreditation, certification, and 
        licensure can be important for meeting preconditions of 
        employment.
            ``(B) A discussion of how the various policies of 
        educational institutions regarding the transfer of academic 
        credit can affect the individual and what kinds of issues are 
        commonly encountered by students trying to transfer academic 
        credit.
            ``(C) An overview of Federal student aid programs, the 
        implications of incurring student loan debt, and discussion of 
        how receipt of Federal student aid can enable a student to 
        complete a program of education without incurring significant 
        educational debt.
            ``(D) A comprehensive assessment of the type and amount of 
        educational assistance available to the individual under 
        Federal law and under the laws of the State in which the 
        individual resides and of any other State of the individual's 
        choosing.
            ``(E) If the individual has not developed an academic plan, 
        a discussion about the importance of developing an academic 
        plan.
            ``(F) A comprehensive list of educational institutions 
        located in the State in which the individual resides and in any 
        other State of the individual's choosing.
            ``(G) For each educational institution listed under 
        subparagraph (F), the following information, if available, in a 
        format that allows for easy comparison of educational 
        institutions:
                    ``(i) Whether financial assistance is available to 
                a student enrolled in a program of education at the 
                educational institution under title IV of the Higher 
                Education Act of 1965 (20 U.S.C. 1070 et seq.).
                    ``(ii) The number of veterans enrolled in a program 
                of education at the educational institution who 
                received educational assistance under a law 
                administered by the Secretary in the most recently 
                completed academic year.
                    ``(iii) A list of--
                            ``(I) academic and student support services 
                        provided by the educational institution to 
                        students enrolled in programs of education at 
                        the educational institution, including job 
                        placement and career counseling services; and
                            ``(II) special services or benefits 
                        currently provided by the educational 
                        institution that address the unique needs of 
                        veterans.
                    ``(iv) With respect to the three-year period ending 
                at the end of the most recently completed academic 
                year, the median amount of student loan debt held upon 
                completion of a program of education at the educational 
                institution by veterans described in clause (ii).
                    ``(v) The cohort default rate, as defined in 
                section 435(m) of the Higher Education Act of 1965 (20 
                U.S.C. 1085(m)), of the educational institution.
                    ``(vi) With respect to the three-year period ending 
                at the end of the most recently completed academic 
                year--
                            ``(I) the average number of veterans who 
                        received a degree from the educational 
                        institution for completing a program of 
                        education;
                            ``(II) the average number of people who 
                        received a degree from the educational 
                        institution for completing a program of 
                        education;
                            ``(III) the average number of veterans 
                        enrolled in programs of education at the 
                        educational institution; and
                            ``(IV) the average number of people 
                        enrolled in programs of education at the 
                        educational institution.
                    ``(vii) In the case of an educational institution 
                that offers a program of education designed to prepare 
                people for a State licensure exam, the percentage of 
                such students who take and pass such exam.
                    ``(viii) For each program of education at the 
                educational institution, the average amount of tuition 
                and fees the educational institution charges a student 
                for completing the program of education within normal 
                time (as defined in section 668.41(a) of title 34, Code 
                of Federal Regulations (or any corresponding similar 
                regulation or ruling)), the typical costs for books and 
                supplies (unless those costs are included as part of 
                tuition and fees), and the cost of room and board, if 
                applicable, and a calculation of how much of such costs 
                can be covered by educational assistance available to 
                the individual under laws administered by the 
                Secretary.
                    ``(ix) A description of the status of the 
                accreditation of the educational institution and each 
                program of education offered by the educational 
                institution and a discussion of the significance of 
                such status.
                    ``(x) The median, for all veterans described in 
                subsection (b)(1) who complete a program of education 
                at the education institution that is an eligible 
                program of training to prepare students for gainful 
                employment in a recognized occupation (as described in 
                section 102(b)(1)(A)(i) of the Higher Education Act of 
                1965 (20 U.S.C. 1002(b)(1)(A)(i))), of the duration of 
                each period beginning on the date on which a veteran 
                completes a program of education at the educational 
                institution and the date on which the veteran first 
                obtains employment after completing such program.
                    ``(xi) The median, for all people who complete a 
                program of education at the education institution that 
                is an eligible program of training to prepare students 
                for gainful employment in a recognized occupation (as 
                described in section 102(b)(1)(A)(i) of the Higher 
                Education Act of 1965 (20 U.S.C. 1002(b)(1)(A)(i))), of 
                the duration of each period beginning on the date on 
                which a person completes a program of education at the 
                educational institution and the date on which the 
                person first obtains employment after completing such 
                program.
                    ``(xii) The percentages of veterans and the 
                percentages of people enrolled in programs of education 
                at the educational institution who obtain a degree or 
                certificate within--
                            ``(I) the normal time for completion of, or 
                        graduate from, the veteran's or person's 
                        program, as the case may be;
                            ``(II) 150 percent of the normal time for 
                        completion of, or graduation from, the 
                        veteran's or person's program, as the case may 
                        be; and
                            ``(III) 200 percent of the normal time for 
                        completion of, or graduation from, the 
                        veteran's or person's program, as the case may 
                        be.
                    ``(xiii) The number of students enrolled in a 
                program of education at the educational institution and 
                the number of such students who submit a complaint to 
                the Secretary under section 3693A(a) of this title.
                    ``(xiv) Whether the educational institution has 
                been reported by a Federal or State agency or a 
                nationally or regionally recognized accrediting agency 
                or association as failing to comply with, or has a 
                significant risk of failing to comply with, a provision 
                of title IV of the Higher Education Act of 1965 (20 
                U.S.C. 1070 et seq.).
                    ``(xv) A description of the topics or subjects of 
                the most numerous complaints filed during the most 
                recent three-year period under section 3693A of this 
                title with respect to the educational institution.
                    ``(xvi) With respect to each of clauses (i) through 
                (xiv), how the educational institution compares with 
                other educational institutions as follows:
                            ``(I) If the educational institution is a 
                        four-year educational institution, how the 
                        educational institution compares with the 
                        average of all four-year educational 
                        institutions.
                            ``(II) If the educational institution is a 
                        two-year educational institution, how the 
                        educational institution compares with the 
                        average of all two-year educational 
                        institutions.
                            ``(III) If the educational institution is a 
                        less than two-year educational institution, how 
                        the educational institution compares with the 
                        average of all less than two-year educational 
                        institutions.
                    ``(xvii) Such other information as the Secretary 
                considers appropriate to assist the individual in 
                selecting an educational institution or training 
                establishment as described in subsection (a)(1).
    ``(4) The Secretary may obtain such information as the Secretary 
requires to carry paragraph (3) from the Secretary of Education, the 
Secretary of Defense, and the heads of such other Federal agencies as 
the Secretary considers appropriate.
    ``(5) The Secretary shall make available to the public on an 
Internet website such information provided under paragraph (3) as the 
Secretary considers appropriate.
    ``(6) Making information available under paragraphs (3) and (5) 
shall not be required in a case in which the number of students in a 
category is insufficient to yield statistically reliable information or 
the results would reveal personally identifiable information about a 
student.''.
    (b) Effective Date.--Subsection (a) shall take effect on the date 
that is one year after the date of the enactment of this Act and 
subsection (c) of section 3697A of such title, as added by such 
subsection, shall apply with respect to individuals who apply for 
educational assistance described in subsection (b)(1) of such section 
on or after such date.

SEC. 3. REPEAL OF LIMITATION ON PAYMENTS FOR CONTRACT EDUCATIONAL AND 
              VOCATIONAL COUNSELING PROVIDED BY SECRETARY OF VETERANS 
              AFFAIRS.

    Section 3697 of title 38, United States Code, is amended--
            (1) by striking subsection (b); and
            (2) in subsection (a), by striking ``(a) Subject to 
        subsection (b) of this section, educational'' and inserting 
        ``Educational''.

SEC. 4. VETERANS' EDUCATION CONSUMER COMPLAINT TRACKING SYSTEM.

    (a) In General.--Chapter 36 of title 38, United States Code, is 
amended by inserting after section 3693 the following new section:
``Sec. 3693A. Complaint tracking system
    ``(a) Establishment.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall establish a system to 
collect, process, and track complaints submitted to the Secretary by 
individuals who are enrolled in programs of education at educational 
institutions to report instances of fraud, waste, and abuse by such 
institutions with respect to the benefits and services provided by such 
institutions to such individuals.
    ``(b) Requirements.--This system established under subsection (a) 
shall meet the following requirements:
            ``(1) The system shall create an individual case number for 
        each complaint processed and tracked in the system.
            ``(2) The system shall allow for the reporting of 
        complaints, disaggregated by educational institution.
            ``(3) The system shall allow for the reporting of 
        complaints, disaggregated by topic or subject matter.
            ``(4) The system shall allow for the submittal of 
        complaints by--
                    ``(A) Internet website; and
                    ``(B) telephone via a toll-free number that is 
                available every day at all hours.
            ``(5) The system shall allow for the sharing of complaints 
        with the following:
                    ``(A) The educational institutions that are the 
                subjects of the complaints.
                    ``(B) The Secretary of Education.
                    ``(C) The Secretary of Defense.
                    ``(D) State approving agencies.
                    ``(E) Nationally or regionally recognized 
                accrediting agencies and associations.
                    ``(F) Such other Federal agencies as the Secretary 
                of Veterans Affairs considers appropriate.
    ``(c) Outreach.--The Secretary shall conduct such outreach as may 
be necessary to inform individuals described in subsection (a) of the 
system and process established under such subsection.
    ``(d) Consideration by State Approving Agencies.--Whenever a State 
approving agency considers whether to approve a course of education of 
an educational institution under this chapter, the State approving 
agency shall review and take into consideration the complaints 
processed and tracked by the system established under subsection (a) 
regarding the educational institution.
    ``(e) Privacy.--(1) Whenever a complaint is shared under subsection 
(b)(5), the complaint shall be anonymized, unless the complainant gives 
permission to the Secretary to share the complainant's identity.
    ``(2) The Secretary may not share a complaint under subsection 
(b)(5) with an educational institution if the complainant requests that 
such complaint not be shared with an educational institution.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 36 of such title is amended by inserting after the item 
relating to section 3693 the following new item:

``3693A. Complaint tracking system.''.