Military and Veterans Education Protection Act

Summary: Military and Veterans Education Protection Act This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to require proprietary institutions of higher education to derive at least 10% of their revenue from sources other than federal educational assistance, or risk becoming ineligible for title IV funding. Federal educational assistance includes title IV federal student aid and federal educational assistance for military personnel and veterans. Currently, this so-called 90/10 rule requires proprietary institutions to derive at least 10% of their revenue from sources other than title IV federal student aid, but it allows federal educational assistance for military personnel and veterans to count toward the 10%. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Military and Veterans Education 
Protection Act''.

SEC. 2. PROGRAM PARTICIPATION AGREEMENTS FOR PROPRIETARY INSTITUTIONS 
              OF HIGHER EDUCATION.

    Section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094) is 
amended--
            (1) in subsection (a)(24)--
                    (A) by inserting ``that receives funds provided 
                under this title'' before ``, such institution''; and
                    (B) by striking ``other than funds provided under 
                this title, as calculated in accordance with subsection 
                (d)(1)'' and inserting ``other than Federal educational 
                assistance, as defined in subsection (d)(5) and 
                calculated in accordance with subsection (d)(1)''; and
            (2) in subsection (d)--
                    (A) in the subsection heading, by striking ``Non-
                Title IV'' and inserting ``Non-Federal Educational'';
                    (B) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting ``that receives funds 
                        provided under this title'' before ``shall'';
                            (ii) in subparagraph (B)--
                                    (I) in clause (i), by striking 
                                ``assistance under this title'' and 
                                inserting ``Federal educational 
                                assistance''; and
                                    (II) in clause (ii)(I), by 
                                inserting ``, or on a military base if 
                                the administering Secretary for a 
                                program of Federal educational 
                                assistance under clause (ii), (iii), or 
                                (iv) of paragraph (5)(B) has authorized 
                                such location'' before the semicolon;
                            (iii) in subparagraph (C), by striking 
                        ``program under this title'' and inserting 
                        ``program of Federal educational assistance'';
                            (iv) in subparagraph (E), by striking 
                        ``funds received under this title'' and 
                        inserting ``Federal educational assistance''; 
                        and
                            (v) in subparagraph (F)--
                                    (I) in clause (iii), by striking 
                                ``under this title'' and inserting ``of 
                                Federal educational assistance''; and
                                    (II) in clause (iv), by striking 
                                ``under this title'' and inserting ``of 
                                Federal educational assistance'';
                    (C) in paragraph (2)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) Ineligibility.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, a proprietary 
                        institution of higher education receiving funds 
                        provided under this title that fails to meet a 
                        requirement of subsection (a)(24) for two 
                        consecutive institutional fiscal years shall be 
                        ineligible to participate in or receive funds 
                        under any program of Federal educational 
                        assistance for a period of not less than two 
                        institutional fiscal years.
                            ``(ii) Regaining eligibility.--To regain 
                        eligibility to participate in or receive funds 
                        under any program of Federal educational 
                        assistance after being ineligible pursuant to 
                        clause (i), a proprietary institution of higher 
                        education shall demonstrate compliance with all 
                        eligibility and certification requirements for 
                        the program for a minimum of two consecutive 
                        institutional fiscal years after the 
                        institutional fiscal year in which the 
                        institution became ineligible. In order to 
                        regain eligibility to participate in any 
                        program of Federal educational assistance under 
                        this title, such compliance shall include 
                        meeting the requirements of section 498 for 
                        such 2-year period.
                            ``(iii) Notification of ineligibility.--The 
                        Secretary of Education shall determine when a 
                        proprietary institution of higher education 
                        that receives funds under this title is 
                        ineligible under clause (i) and shall notify 
                        all other administering Secretaries of the 
                        determination.
                            ``(iv) Enforcement.--Each administering 
                        Secretary for a program of Federal educational 
                        assistance shall enforce the requirements of 
                        this subparagraph for the program concerned 
                        upon receiving notification under clause (iii) 
                        of a proprietary institution of higher 
                        education's ineligibility.''; and
                            (ii) in subparagraph (B)--
                                    (I) in the matter preceding clause 
                                (i)--
                                            (aa) by striking ``In 
                                        addition'' and all that follows 
                                        through ``education fails'' and 
                                        inserting ``Notwithstanding any 
                                        other provision of law, in 
                                        addition to such other means of 
                                        enforcing the requirements of a 
                                        program of Federal educational 
                                        assistance as may be available 
                                        to the administering Secretary, 
                                        if a proprietary institution of 
                                        higher education that receives 
                                        funds provided under this title 
                                        fails''; and
                                            (bb) by striking ``the 
                                        programs authorized by this 
                                        title'' and inserting ``all 
                                        programs of Federal educational 
                                        assistance''; and
                                    (II) in clause (i), by inserting 
                                ``with respect to a program of Federal 
                                educational assistance under this 
                                title,'' before ``on the expiration 
                                date'';
                    (D) in paragraph (4)(A), by striking ``sources 
                under this title'' and inserting ``Federal educational 
                assistance''; and
                    (E) by adding at the end the following:
            ``(5) Definitions.--In this subsection:
                    ``(A) Administering secretary.--The term 
                `administering Secretary' means the Secretary of 
                Education, the Secretary of Defense, the Secretary of 
                Veterans Affairs, the Secretary of Homeland Security, 
                or the Secretary of a military department responsible 
                for administering the Federal educational assistance 
                concerned.
                    ``(B) Federal educational assistance.--The term 
                `Federal educational assistance' means funds provided 
                under any of the following provisions of law:
                            ``(i) This title.
                            ``(ii) Chapter 30, 31, 32, 33, 34, or 35 of 
                        title 38, United States Code.
                            ``(iii) Chapter 101, 105, 106A, 1606, 1607, 
                        or 1608 of title 10, United States Code.
                            ``(iv) Section 1784a of title 10, United 
                        States Code.''.

SEC. 3. DEPARTMENT OF DEFENSE AND DEPARTMENT OF VETERANS AFFAIRS 
              ACTIONS ON INELIGIBILITY OF CERTAIN PROPRIETARY 
              INSTITUTIONS OF HIGHER EDUCATION FOR PARTICIPATION IN 
              PROGRAMS OF EDUCATIONAL ASSISTANCE.

    (a) Department of Defense.--
            (1) In general.--Chapter 101 of title 10, United States 
        Code, is amended by inserting after section 2008 the following 
        new section:
``Sec. 2008a. Ineligibility of certain proprietary institutions of 
              higher education for participation in Department of 
              Defense programs of educational assistance
    ``(a) In General.--Upon receipt of a notice from the Secretary of 
Education under clause (iii) of section 487(d)(2)(A) of the Higher 
Education Act of 1965 (20 U.S.C. 1094(d)(2)(A)) that a proprietary 
institution of higher education is ineligible for participation in or 
receipt of funds under any program of Federal educational assistance by 
reason of such section, the Secretary of Defense shall ensure that no 
educational assistance under the provisions of law specified in 
subsection (b) is available or used for education at the institution 
for the period of institutional fiscal years covered by such notice.
    ``(b) Covered Assistance.--The provisions of law specified in this 
subsection are the provisions of law on educational assistance through 
the Department of Defense as follows:
            ``(1) This chapter.
            ``(2) Chapters 105, 106A, 1606, 1607, and 1608 of this 
        title.
            ``(3) Section 1784a of this title.
    ``(c) Notice on Ineligibility.--(1) The Secretary of Defense shall 
take appropriate actions to notify persons receiving or eligible for 
educational assistance under the provisions of law specified in 
subsection (b) of the application of the limitations in section 
487(d)(2) of the Higher Education Act of 1965 to particular proprietary 
institutions of higher education.
    ``(2) The actions taken under this subsection with respect to a 
proprietary institution shall include publication, on the Internet 
website of the Department of Defense that provides information to 
persons described in paragraph (1), of the following:
            ``(A) The name of the institution.
            ``(B) The extent to which the institution failed to meet 
        the requirements of section 487(a)(24) of the Higher Education 
        Act of 1965.
            ``(C) The length of time the institution will be ineligible 
        for participation in or receipt of funds under any program of 
        Federal educational assistance by reason of section 
        487(d)(2)(A) of that Act.
            ``(D) The nonavailability of educational assistance through 
        the Department for enrollment, attendance, or pursuit of a 
        program of education at the institution by reason of such 
        ineligibility.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 101 of such title is amended by inserting 
        after the item relating to section 2008 the following new item:

``2008a. Ineligibility of certain proprietary institutions of higher 
                            education for participation in Department 
                            of Defense programs of educational 
                            assistance.''.
    (b) Department of Veterans Affairs.--
            (1) In general.--Subchapter II of chapter 36 of title 38, 
        United States Code, is amended by inserting after section 3681 
        the following new section:
``Sec. 3681A. Ineligibility of certain proprietary institutions of 
              higher education for participation in Department of 
              Veterans Affairs programs of educational assistance
    ``(a) In General.--Upon receipt of a notice from the Secretary of 
Education under clause (iii) of section 487(d)(2)(A) of the Higher 
Education Act of 1965 (20 U.S.C. 1094(d)(2)(A)) that a proprietary 
institution of higher education is ineligible for participation in or 
receipt of funds under any program of Federal educational assistance by 
reason of such section, the Secretary of Veterans Affairs shall ensure 
that no educational assistance under the provisions of law specified in 
subsection (b) is available or used for education at the institution 
for the period of institutional fiscal years covered by such notice.
    ``(b) Covered Assistance.--The provisions of law specified in this 
subsection are the provisions of law on educational assistance through 
the Department under chapters 30, 31, 32, 33, 34, and 35 of this title.
    ``(c) Notice on Ineligibility.--(1) The Secretary of Veterans 
Affairs shall take appropriate actions to notify persons receiving or 
eligible for educational assistance under the provisions of law 
specified in subsection (b) of the application of the limitations in 
section 487(d)(2) of the Higher Education Act of 1965 to particular 
proprietary institutions of higher education.
    ``(2) The actions taken under this subsection with respect to a 
proprietary institution shall include publication, on the Internet 
website of the Department that provides information to persons 
described in paragraph (1), of the following:
            ``(A) The name of the institution.
            ``(B) The extent to which the institution failed to meet 
        the requirements of section 487(a)(24) of the Higher Education 
        Act of 1965.
            ``(C) The length of time the institution will be ineligible 
        for participation in or receipt of funds under any program of 
        Federal educational assistance by reason of section 
        487(d)(2)(A) of that Act.
            ``(D) The nonavailability of educational assistance through 
        the Department for enrollment, attendance, or pursuit of a 
        program of education at the institution by reason of such 
        ineligibility.''.
            (2) 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 3681 the following new item:

``3681A. Ineligibility of certain proprietary institutions of higher 
                            education for participation in Department 
                            of Veterans Affairs programs of educational 
                            assistance.''.