Ensuring Quality Education for Veterans Act

Summary: Ensuring Quality Education for Veterans Act This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to require proprietary institutions of higher education to derive not less than 10% of their revenue from sources other than title IV or the educational assistance programs of the Departments of Defense and Veterans Affairs, or become ineligible for title IV funding and participation in those programs. (Currently, this 90/10 rule requires these schools to derive not less than 10% of their revenue from sources other than title IV or become ineligible for title IV funding.)

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Ensuring Quality Education for 
Veterans Act''.

SEC. 2. REVISION OF 90-10 RULE.

    (a) Revision of 90-10 Rule.--Section 487 of the Higher Education 
Act of 1965 (20 U.S.C. 1094) is amended--
            (1) in subsection (a)(24), by inserting after ``other 
        than'' the following: ``veterans' education benefits (as 
        defined in subsection (d)(5)) or'';
            (2) in subsection (d)--
                    (A) in paragraph (2)(A), by inserting at the end 
                the following: ``The Secretary of Education shall 
                notify the Secretary of Defense and the Secretary of 
                Veterans Affairs when, by reason of failing to meet a 
                requirement of subsection (a)(24), a proprietary 
                institution of higher education becomes ineligible to 
                participate in the programs authorized by this title, 
                and when the institution regains such eligibility.''; 
                and
                    (B) by inserting at the end the following new 
                paragraph:
            ``(5) Veterans' education benefits defined.--For the 
        purpose of this subsection, the term `veterans' education 
        benefits' includes the veterans' education benefits listed in 
        subparagraphs (A) through (L) of section 480(c)(2) and any 
        other educational assistance benefits provided by the Secretary 
        of Defense or the Secretary of Veterans Affairs to an 
        individual.''.
    (b) Conforming Amendment.--The heading for subsection (d) of 
section 487 of the Higher Education Act of 1965 (20 U.S.C. 1094(d)) is 
amended by inserting after ``Non-Title IV'' the following: ``and Non-
Veterans' Education Benefits''.

SEC. 3. INELIGIBILITY OF CERTAIN PROPRIETARY INSTITUTIONS OF HIGHER 
              EDUCATION TO PARTICIPATE IN DEPARTMENT OF DEFENSE OR 
              DEPARTMENT OF VETERANS AFFAIRS 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 to participate in Department of Defense 
              programs of educational assistance
    ``Upon notice from the Secretary of Education under 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 to participate in the programs authorized by title IV of 
such Act (20 U.S.C. 1070 et seq.), the Secretary of Defense shall 
ensure that no educational assistance provided by the Secretary under 
this title or any other provision of law is available or used for 
education at the institution for the period of institutional fiscal 
years during which the institution remains ineligible to participate in 
the programs authorized by title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070 et seq.).''.
            (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 to participate 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 to participate in Department of Veterans 
              Affairs programs of educational assistance
    ``(a) In General.--Upon notice from the Secretary of Education 
under 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 to participate in the programs authorized by 
title IV of such Act (20 U.S.C. 1070 et seq.), the Secretary of 
Veterans Affairs shall ensure that no educational assistance provided 
by the Secretary under this title or any other provision of law is 
available or used for education at the institution for the period of 
institutional fiscal years during which the institution remains 
ineligible to participate in the programs authorized by title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1070 et seq.).''.
            (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 to participate in Department of 
                            Veterans Affairs programs of educational 
                            assistance.''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall be effective July 1, 2016.