II 

112TH CONGRESS 

2D SESSION S. 2179 

To amend title 38, United States Code, to improve oversight of educational 

assistance provided under laws administered by the Secretary of Veterans 

Affairs and the Secretary of Defense, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MARCH 8, 2012 

Mr. WEBB (for himself, Mr. HARKIN, Mr. BROWN of Massachusetts, Mr. CARPER, and Mrs. MCCASKILL) introduced the following bill; which was read 

twice and referred to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to improve oversight 

of educational assistance provided under laws administered by the Secretary of Veterans Affairs and the Secretary of Defense, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military and Veterans 

5 Educational Reform Act of 2012’’. 


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1 SEC. 2. ADDITIONAL REQUIREMENTS FOR APPROVAL OF 

2 EDUCATIONAL PROGRAMS FOR PURPOSES 

3 OF EDUCATIONAL ASSISTANCE UNDER LAWS 

4 ADMINISTERED BY SECRETARY OF VET5 ERANS AFFAIRS AND SECRETARY OF DE6 FENSE. 

7 (a) AUTOMATIC APPROVAL BY SECRETARY OF VET8 ERANS AFFAIRS OF DEGREE PROGRAMS APPROVED BY

9 SECRETARY OF EDUCATION.—Clause (i) of section 

10 3672(b)(2)(A) of title 38, United States Code, is amended 

11 to read as follows: 

12 ‘‘(i) A course that is described by section 

13 3675(a) of this title.’’. 

14 (b) APPROVAL BY SECRETARY OF VETERANS AF15 FAIRS OF NON-DEGREE PROGRAMS APPROVED BY SEC16 RETARY OF EDUCATION.— 

17 (1) IN GENERAL.—Section 3675 of such title is 

18 amended— 

19 (A) by redesignating subsections (b) and 

20 (c) as subsections (c) and (d), respectively; 

21 (B) by striking subsection (a); and 

22 (C) by inserting before subsection (c), as 

23 redesignated by subparagraph (A), the following 

24 new subsections: 

25 ‘‘(a) The Secretary or a State approving agency may 

26 only approve a course that leads to an associate or higher 


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1 degree when such course is an eligible program (as defined 

2 in section 481 of the Higher Education Act of 1965 (20 

3 U.S.C. 1088)) offered by an institution of higher edu4 cation (as defined in section 102 of such Act (20 U.S.C. 

5 1002)) that has entered into, and is complying with, a pro6 gram participation agreement under section 487 of such 

7 Act (20 U.S.C. 1094). 

8 ‘‘(b)(1) The Secretary or a State approving agency 

9 may approve a course that does not lead to an associate 

10 or higher degree when— 

11 ‘‘(A) such course— 

12 ‘‘(i) is an eligible program (as defined in 

13 section 481 of the Higher Education Act of 

14 1965 (20 U.S.C. 1088)) offered by an institu15 tion of higher education (as defined in section 

16 102 of such Act (20 U.S.C. 1002)) that has en17 tered into, and is complying with, a program 

18 participation agreement under section 487 of 

19 such Act (20 U.S.C. 1094); 

20 ‘‘(ii) in the case of a course designed to 

21 prepare individuals for licensure or certification, 

22 meets the instructional curriculum licensure or 

23 certification requirements of the State in which 

24 the institution is located; and 


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1 ‘‘(iii) in the case of a course designed to 

2 prepare an individual for employment by a 

3 State board or agency in an occupation that re4 quires approval or licensure for such employ5 ment, is approved or licensed by such State 

6 board or agency; 

7 ‘‘(B) such course is accepted by the State de8 partment of education for credit for a teacher’s cer9 tificate; or 

10 ‘‘(C) such course is approved by the State as 

11 meeting the requirement of regulations prescribed by 

12 the Secretary of Health and Human Services under 

13 sections 1819(f)(2)(A)(i) and 1919(f)(2)(A)(i) of the 

14 Social Security Act (42 U.S.C. 1395i–3(f)(2)(A)(i) 

15 and 1396r(f)(2)(A)(i)). 

16 ‘‘(2)(A) An educational institution shall submit an 

17 application for approval of courses to the appropriate 

18 State approving agency. In making application for ap19 proval, the institution (other than an elementary school 

20 or secondary school) shall transmit to the State approving 

21 agency copies of its catalog or bulletin which must be cer22 tified as true and correct in content and policy by an au23 thorized representative of the institution. 

24 ‘‘(B) Each catalog or bulletin transmitted by an insti25 tution under subparagraph (A) of this paragraph shall— 


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1 ‘‘(i) state with specificity the requirements of 

2 the institution with respect to graduation; 

3 ‘‘(ii) include the information required under 

4 paragraphs (6) and (7) of section 3676(b) of this 

5 title; and 

6 ‘‘(iii) include any attendance standards of the 

7 institution, if the institution has and enforces such 

8 standards.’’. 

9 (2) CONFORMING AMENDMENTS.—Such title is 

10 amended— 

11 (A) in section 3452(g), by striking ‘‘under 

12 the provisions of section 3675 of this title’’; 

13 (B) in section 3501(11), by striking 

14 ‘‘under the provisions of section 3675 of this 

15 title’’; 

16 (C) in section 3672(b)(2)(A), by striking 

17 ‘‘3675(b)(1) and (b)(2)’’ and inserting 

18 ‘‘3675(c)(1) and (c)(2)’’; and 

19 (D) in the heading for section 3675, by 

20 striking ‘‘accredited courses’’ and insert21 ing ‘‘courses approved by Secretary of 

22 Education’’. 

23 (3) CLERICAL AMENDMENT.—The table of sec24 tions at the beginning of chapter 36 of such title is 


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1 amended by striking the item relating to section 

2 3675 and inserting the following new item: 

‘‘3675. Approval of courses approved by Secretary of Education.’’. 

3 (c) APPROVAL BY SECRETARY OF VETERANS AF4 FAIRS OF NON-DEGREE PROGRAMS NOT APPROVED BY

5 SECRETARY OF EDUCATION.— 

6 (1) IN GENERAL.—Subsection (a) of section 

7 3676 of such title is amended to read as follows: 

8 ‘‘(a) No course of education which has not been ap9 proved by the Secretary or a State approving agency under 

10 section 3675 of this title shall be approved for the pur11 poses of this chapter unless— 

12 ‘‘(1) the course— 

13 ‘‘(A) does not lead to an associate or high14 er degree; 

15 ‘‘(B) was not an eligible program (as de16 fined in section 481 of the Higher Education 

17 Act of 1965 (20 U.S.C. 1088)) at any time dur18 ing the most recent two-year period; and 

19 ‘‘(C) is a course that the Secretary or 

20 State approving agency determines, in accord21 ance with this section and such regulations as 

22 the Secretary shall prescribe and on a case-by23 case basis, that approval of which would further 

24 the purposes of this chapter or any of chapters 

25 30 through 35 of this title; and 


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1 ‘‘(2) the educational institution offering such 

2 course submits to the appropriate State approving 

3 agency a written application for approval of such 

4 course in accordance with the provisions of this 

5 chapter.’’. 

6 (2) ADDITIONAL REQUIREMENTS.—Subsection 

7 (c) of section 3676 of such title is amended— 

8 (A) by redesignating paragraph (14) as 

9 paragraph (21); and 

10 (B) by inserting after paragraph (13) the 

11 following new paragraphs: 

12 ‘‘(14) Such courses providing less than 600 

13 clock hours of instruction, or its equivalent, have 

14 verified completion and placement rates of at least 

15 70 percent. 

16 ‘‘(15) Courses that prepare individuals for li17 censure or certification have verified that the 

18 course’s instructional curriculum appropriately in19 cludes the licensure or certification requirements in 

20 the State in which the institution deems such cur21 riculum does. 

22 ‘‘(16) Courses for which a State board or agen23 cy in the State in which the course is designed to 

24 prepare a student requires approval or licensure for 

25 employment in the recognized occupation in the 


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1 State is approved or licensed by such State board or 

2 agency. 

3 ‘‘(17) In the case of an educational institution 

4 that advertises job placement rates as a means of at5 tracting students to enroll in a course of education 

6 offered by the educational institution, the application 

7 contains any other information necessary to substan8 tiate the truthfulness of such advertisements. 

9 ‘‘(18) The educational institution does not pro10 vide any commission, bonus, or other incentive pay11 ment based directly or indirectly on success in secur12 ing enrollments or financial aid to any persons or 

13 entities engaged in any student recruiting or admis14 sion activities or in making decisions regarding the 

15 award of student financial assistance, except for the 

16 recruitment of foreign students residing in foreign 

17 countries who are not eligible to receive Federal stu18 dent assistance. 

19 ‘‘(19) The educational institution does not 

20 make any misrepresentations (as defined in section 

21 668.71 of title 34, Code of Federal Regulations (or 

22 any corresponding similar regulation or ruling)) re23 garding the nature of its educational program, the 

24 nature of its financial charges, or the employability 

25 of its graduates (as defined in sections 668.72 


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1 through 668.74 of such title, respectively (or any 

2 corresponding similar regulations or rulings)). 

3 ‘‘(20) The educational institution has provided 

4 information necessary to substantiate that it com5 plies with the requirements set forth under section 

6 600.9 of title 34 Code of Federal Regulations (or 

7 any corresponding similar regulation or ruling).’’. 

8 (3) REQUIREMENT THAT ADDITIONAL REQUIRE9 MENTS IMPOSED BY STATE APPROVING AGENCIES BE

10 APPROVED BY SECRETARY OF VETERANS AFFAIRS.— 

11 Paragraph (21) of such subsection, as redesignated 

12 by paragraph (2)(A), is amended by inserting ‘‘and 

13 approved by the Secretary’’ before the period at the 

14 end. 

15 (4) CONFORMING AMENDMENTS.—Section 3676 

16 of such title is amended— 

17 (A) in the heading for such section, by 

18 striking ‘‘nonaccredited courses’’ and in19 serting ‘‘courses not approved by Sec20 retary of Education’’; and 

21 (B) in subsection (c), in the matter before 

22 paragraph (1), by striking ‘‘non-accredited’’. 

23 (5) CLERICAL AMENDMENT.—The table of sec24 tions at the beginning of chapter 36 of such title is 


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1 amended by striking the item relating to section 

2 3675 and inserting the following new item: 

‘‘3676. Approval of courses not approved by Secretary of Education.’’. 

3 (d) ADDITIONAL REQUIREMENTS FOR APPROVAL OF

4 PROGRAMS FOR EDUCATIONAL ASSISTANCE FOR PER5 SONS ENLISTING FOR ACTIVE DUTY.—Section 2143 of 

6 title 10, United States Code, is amended— 

7 (1) in subsection (a), by striking ‘‘to subsection 

8 (b)’’ and inserting ‘‘to subsections (b) and (c)’’; 

9 (2) by redesignating subsection (c) as sub10 section (d); and 

11 (3) by inserting after subsection (b) the fol12 lowing new subsection (c): 

13 ‘‘(c)(1) Except as provided in paragraph (2), a person 

14 entitled to assistance under this chapter may only use 

15 such assistance for educational expenses incurred for an 

16 eligible program (as defined in section 481 of the Higher 

17 Education Act of 1965 (20 U.S.C. 1088)) that— 

18 ‘‘(A) is offered by an institution of higher edu19 cation (as defined in section 102 of such Act (20 

20 U.S.C. 1002)) that has entered into, and is com21 plying with, a program participation agreement 

22 under section 487 of such Act (20 U.S.C. 1094); 

23 ‘‘(B) in the case of a program designed to pre24 pare individuals for licensure or certification, meets 

25 the instructional curriculum licensure or certification 


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1 requirements of the State in which the institution is 

2 located; and 

3 ‘‘(C) in the case of a program designed to pre4 pare individuals for employment by a State board or 

5 agency in an occupation that requires approval or li6 censure for such employment, is approved or li7 censed by such State board or agency. 

8 ‘‘(2) The Secretary may, in accordance with regula9 tions the Secretary shall prescribe, authorize the use of 

10 educational assistance awarded under this chapter for 

11 educational expenses incurred for a program of education 

12 that is not described in paragraph (1) if such program— 

13 ‘‘(A) is accredited and approved by a nationally 

14 recognized accrediting agency or association; 

15 ‘‘(B) was not an eligible program described in 

16 paragraph (1) at any time during the most recent 

17 two-year period; and 

18 ‘‘(C) is a program that the Secretary deter19 mines, on a case-by-case basis, that approval of 

20 which would further the purposes of the program es21 tablished under section 2141 of this title.’’. 

22 (e) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect on August 1, 2013. 


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1 SEC. 3. REQUIREMENT THAT EDUCATIONAL INSTITUTIONS 

2 INFORM STUDENTS OF MATTERS RELATING 

3 TO ACCREDITATION AND OUTCOMES AS CON4 DITION OF APPROVAL FOR PURPOSES OF 

5 EDUCATIONAL ASSISTANCE UNDER LAWS AD6 MINISTERED BY SECRETARY OF VETERANS 

7 AFFAIRS AND SECRETARY OF DEFENSE. 

8 (a) EDUCATIONAL ASSISTANCE UNDER LAWS AD9 MINISTERED BY SECRETARY OF VETERANS AFFAIRS.— 

10 Section 3672 of title 38, United States Code, is amend11 ed— 

12 (1) by adding at the end the following new sub13 section: 

14 ‘‘(f)(1) A course of education that is offered by an 

15 educational institution may not be approved under this 

16 chapter unless the educational institution discloses and 

17 makes readily available the information described in para18 graph (2) to— 

19 ‘‘(A) each individual considering enrolling in the 

20 course of education at or before the moment at 

21 which the individual applies for enrollment in such 

22 course of education; 

23 ‘‘(B) each student who is enrolled in the course 

24 of education each year the student is so enrolled; 

25 and 

26 ‘‘(C) the public. 


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1 ‘‘(2) The information described in this paragraph 

2 with respect to an educational institution or a course of 

3 education of the educational institution is the following: 

4 ‘‘(A) The names of associations, agencies, or 

5 governmental bodies which accredit, approve, or li6 cense the educational institution and its courses of 

7 education and the procedures under which any cur8 rent or prospective student may obtain or review 

9 upon request a copy of the documents describing the 

10 educational institution’s accreditation, approval, or 

11 licensing. 

12 ‘‘(B) Whether the educational institution is a 

13 public educational institution, a private nonprofit 

14 educational institution, or a private for-profit edu15 cational institution. 

16 ‘‘(C) The rates of graduation of students who 

17 enroll in the course of education and the average 

18 dropout rate of all students enrolled in the course of 

19 education. 

20 ‘‘(D) The percentage of students enrolled in the 

21 course of education who complete the course with22 in— 

23 ‘‘(i) the standard period for completion of 

24 such course of education; 

25 ‘‘(ii) 150 percent of such period; and 


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1 ‘‘(iii) 200 percent of such period. 

2 ‘‘(E) The median educational debt incurred by 

3 students who complete the course of education. 

4 ‘‘(F) The cohort default rate, as defined in sec5 tion 435(m) of the Higher Education Act of 1965 

6 (20 U.S.C. 1085(m)), of the educational institution. 

7 ‘‘(G) The rates of job placement of students 

8 who complete the course of education, as applicable, 

9 and the types of employment obtained by such stu10 dents. 

11 ‘‘(H) For any job for which the course of edu12 cation is designed to prepare a student, the relevant 

13 licensing or certification requirements for such job in 

14 the State for which the course is designed to prepare 

15 the student to obtain such license or certificate and 

16 the examination and licensure test pass rates, as ap17 plicable. 

18 ‘‘(I) The tuition and fees for programs of edu19 cation at the educational institution. 

20 ‘‘(J) The percentage of students enrolled in 

21 programs of education at the educational institution 

22 who have submitted a complaint under section 

23 3697C(a) of this title. 

24 ‘‘(K) With respect to the information reported 

25 under subparagraphs (C) through (J), indicators of 


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1 how the educational institution compares with the 

2 averages of all public educational institutions with 

3 similar courses of education in the State in which 

4 the educational institution is located. 

5 ‘‘(L) A description of the procedures by which 

6 student may submit complaints regarding edu7 cational institutions to applicable Federal and State 

8 agencies, including State approving agencies and ac9 crediting agencies or associations and such contact 

10 information as may be necessary to submit such 

11 complaints. 

12 ‘‘(M) A description of the process established 

13 under section 3697C(a) of this title and such contact 

14 information as may be necessary to submit a com15 plaint in accordance with such process. 

16 ‘‘(N) The policies established by the educational 

17 institution regarding transfer of course credit, in18 cluding the following: 

19 ‘‘(i) Any established criteria the edu20 cational institution uses regarding the transfer 

21 of course credit earned at another educational 

22 institution. 

23 ‘‘(ii) A list of educational institutions that 

24 will accept transfer of course credit for specific 


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1 programs of education offered by the edu2 cational institution. 

3 ‘‘(iii) A list of educational institutions from 

4 which the educational institution will accept 

5 transfer of course credit for specific programs 

6 offered by that educational institution. 

7 ‘‘(iv) Any changes by the educational insti8 tution in such policies and established criteria 

9 that first took effect in the most recent one10 year period. 

11 ‘‘(O) A statement of the requirements of any 

12 refund policies of the educational institution. 

13 ‘‘(P) A statement of the requirements for offi14 cially withdrawing from a course of education at the 

15 educational institution. 

16 ‘‘(Q) The standards which a student must 

17 maintain in order to be considered to be making sat18 isfactory progress in a course of education at the 

19 educational institution. 

20 ‘‘(R) A description of the services available at 

21 the educational institution that are tailored specifi22 cally to meet the needs of individuals receiving as23 sistance under this chapter, any of chapters 30 

24 through 35 of this title, or chapter 106A or 1606 of 


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1 title 10, including services provided under section 

2 3679A(a) of this title. 

3 ‘‘(S) In the case of an educational institution 

4 that advertises job placement rates as a means of at5 tracting students to enroll in the educational institu6 tion, such information as may be necessary to sub7 stantiate the truthfulness of the claims made in such 

8 advertising. 

9 ‘‘(3) The information disclosed and made readily 

10 available under paragraph (1) to individuals and students 

11 described in subparagraphs (A) and (B) of such para12 graph, respectively, shall be disclosed and made readily 

13 available— 

14 ‘‘(A) in language that can be easily understood 

15 by such individuals and students; and 

16 ‘‘(B) in a uniform manner that is appropriate 

17 for such individuals and students, including by pub18 lications, mailings, and electronic media.’’; and 

19 (2) in subsection (b)(2)(A), as amended by sec20 tion 2(b)(2), in the matter before clause (i), by in21 serting ‘‘subsection (f) and’’ after ‘‘Subject to’’. 

22 (b) EDUCATIONAL ASSISTANCE FOR PERSONS EN23 LISTING FOR ACTIVE DUTY.— 


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1 (1) IN GENERAL.—Chapter 106A of title 10, 

2 United States Code, is amended by inserting after 

3 section 2149 the following new section: 

4 ‘‘§ 2149A. Disclosure requirements of educational in5 stitutions 

6 ‘‘The Secretary may not provide a payment of edu7 cational expenses under an educational assistance pro8 gram established under section 2141 of this title for in9 struction at an accredited institution (as defined in section 

10 2143 of this title) unless such institution discloses and 

11 makes readily available the information described in para12 graph (2) of section 3672(f) of title 38 as described in 

13 paragraph (3) of such section to— 

14 ‘‘(1) each individual considering enrolling in the 

15 course of education at or before the moment at 

16 which the individual applies for enrollment in such 

17 course of education; 

18 ‘‘(2) each student who is enrolled in the course 

19 of education each year the student is so enrolled; 

20 and 

21 ‘‘(3) the public.’’. 

22 (2) CLERICAL AMENDMENT.—The table of sec23 tions at the beginning of chapter 106A of such title 

24 is amended by adding at the end the following new 

25 item: 

‘‘2149A. Disclosure requirements of educational institutions.’’. 


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1 (c) EFFECTIVE DATE.—Subsection (f) of section 

2 3672 of title 38, United States Code, as added by sub3 section (a)(1), and section 2149A of title 10, United 

4 States Code, as added by subsection (b)(1), shall take ef5 fect on August 1, 2013. 

6 SEC. 4. ADDITIONAL REQUIREMENTS OF EDUCATIONAL IN7 STITUTIONS FOR SUPPORT OF VETERANS 

8 AND MEMBERS OF ARMED FORCES. 

9 (a) REQUIREMENTS.— 

10 (1) IN GENERAL.—Subchapter I of chapter 36 

11 of title 38, United States Code, is amended by add12 ing at the end the following new section: 

13 ‘‘§ 3679A. Additional requirements 

14 ‘‘(a) PROVISION OF COUNSELING AND SERVICES.— 

15 (1) An educational institution with 20 or more covered 

16 individuals enrolled in programs of education at the edu17 cational institution may not be approved under this chap18 ter unless the educational institution provides adequate 

19 academic and student support services (as determined by 

20 the Secretary), including remediation, tutoring, and career 

21 and job placement counseling services to such covered in22 dividuals. 

23 ‘‘(2) The Secretary may, on a case-by-case basis, 

24 waive the requirement to provide services under paragraph 


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1 (1) for an educational institution for an academic year 

2 if— 

3 ‘‘(A) the Secretary determines that the edu4 cational institution has demonstrated that providing 

5 such services during such academic year would lead 

6 to severe financial hardship; and 

7 ‘‘(B) the educational institution submits to the 

8 Secretary a plan to provide such services during the 

9 following academic year. 

10 ‘‘(b) MINIMUM STANDARDS FOR EMPLOYMENT OF

11 POINTS OF CONTACT.—Except as provided in paragraph 

12 (2), an educational institution may not be approved under 

13 this chapter unless the educational institution employs a 

14 number of full-time equivalent employees that the Sec15 retary considers adequate, but not less than one full-time 

16 equivalent employee, who— 

17 ‘‘(1) acts as a point of contact for covered indi18 viduals on matters relating to educational assistance 

19 available to individuals under this chapter and chap20 ters 30 through 35 of this title and under chapters 

21 106A and 1606 of title 10; 

22 ‘‘(2) is knowledgeable about such educational 

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1 ing to postsecondary education as are important to 

2 the educational success of covered individuals; and 

3 ‘‘(3) is available to assist covered individuals on 

4 a full-time basis. 

5 ‘‘(c) COVERED INDIVIDUAL DEFINED.—In this sec6 tion, the term ‘covered individual’, with respect to enroll7 ment in a program of education, means an individual who 

8 is receiving educational assistance under this chapter or 

9 any of chapters 30 through 35 of this title or under chap10 ters 106A and 1606 of title 10 for such program of edu11 cation.’’. 

12 (2) CLERICAL AMENDMENT.—The table of sec13 tions at the beginning of chapter 36 of such title is 

14 amended by inserting after the item relating to sec15 tion 3679 the following new item: 

‘‘3679A. Additional requirements.’’. 

16 (b) CONFORMING AMENDMENT.—Section 

17 3672(b)(2)(A) of such title (as amended by section 

18 3(a)(2)) is further amended by striking ‘‘and 3696’’ and 

19 inserting ‘‘3696, and 3679A’’. 

20 (c) EFFECTIVE DATE.—Section 3679A of such title, 

21 as added by paragraph (1), shall take effect on August 

22 1, 2013. 

23 SEC. 5. STATE APPROVING AGENCIES. 

24 (a) EDUCATION AND OUTREACH.— 


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1 (1) IN GENERAL.—Subchapter I of chapter 36 

2 of title 38, United States Code, is amended by in3 serting after section 3674A the following new sec4 tion: 

5 ‘‘§ 3674B. Education and outreach 

6 ‘‘(a) EDUCATION AND OUTREACH REQUIRED.—As a 

7 condition on receipt of reimbursement expenses under sec8 tion 3674 of this title, each State approving agency shall 

9 conduct such education and outreach activities for individ10 uals who are eligible to receive or are receiving educational 

11 assistance under this chapter or any of chapters 30 

12 through 35 of this title as the Secretary considers appro13 priate to assist such individuals in making well-informed 

14 choices about their education and successfully transition15 ing into an educational environment. 

16 ‘‘(b) COORDINATION.—Each State approving agency 

17 conducting outreach activities under subsection (a) shall 

18 coordinate with the Secretary of Defense to ensure, as the 

19 Secretary of Defense considers appropriate, that informa20 tion on educational assistance available under this chapter 

21 and chapters 30 through 35 of this title is made readily 

22 available as part of the Transition Assistance Program 

23 (TAP) of the Department of Defense in the State of the 

24 State approving agency. 


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1 ‘‘(c) MANNER.—Information made available as part 

2 of education and outreach activities under this section 

3 shall be made— 

4 ‘‘(1) in language that can be easily understood 

5 by individuals described in paragraph (1); 

6 ‘‘(2) in a uniform and easily accessible manner; 

7 and 

8 ‘‘(3) through such means as may be appropriate 

9 and effective, including through publications, mail10 ings, and electronic media.’’. 

11 (2) CLERICAL AMENDMENT.—The table of sec12 tions at the beginning of chapter 36 of such title is 

13 amended by inserting after the item relating to sec14 tion 3674A the following new item: 

‘‘3674B. Education and outreach.’’. 

15 (b) AUDITS.—Section 3673(d) of such title is amend16 ed— 

17 (1) by inserting ‘‘(1)’’ before ‘‘The Secretary’’; 

18 and 

19 (2) by adding at the end the following new 

20 paragraph: 

21 ‘‘(2) Each year, each State approving agency, as a 

22 condition of receiving reimbursement of expenses under 

23 section 3674 of this title, shall conduct such audits as the 

24 Secretary considers appropriate, including unannounced 

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1 cational institutions in the State of the State approving 

2 agency that have students enrolled in programs of edu3 cation at the educational institutions who are receiving 

4 educational assistance under this chapter or any of chap5 ters 30 through 35 of this title (without regard to whether 

6 the Secretary or the State approving agency approved the 

7 courses offered) in such State— 

8 ‘‘(A) to detect misrepresentation, fraud, waste, 

9 and abuse; 

10 ‘‘(B) to ensure full compliance with the provi11 sions of this chapter; and 

12 ‘‘(C) for such other purposes as the Secretary 

13 considers appropriate.’’. 

14 (c) REPORTS.—Section 3674(a)(3) of such title is 

15 amended— 

16 (1) by inserting ‘‘(A)’’ before ‘‘Each State’’; 

17 and 

18 (2) by adding at the end the following new sub19 paragraph: 

20 ‘‘(B) Each report submitted under subparagraph (A) 

21 shall include the following: 

22 ‘‘(i) The number of visits made by the agency 

23 to educational institutions, including the number of 

24 such visits that were made without the prior knowl25 edge of such educational institution. 


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1 ‘‘(ii) A description of the audits carried out by 

2 the agency under section 3673(d)(2) of this title and 

3 the findings of the agency, including with respect to 

4 any substantiated findings of misrepresentation, 

5 fraud, waste, abuse, or failure to comply with an ap6 plicable requirement of this chapter and the steps 

7 taken by the agency to address such fraud, waste, 

8 abuse, or failure to comply. 

9 ‘‘(iii) A description of the outreach and training 

10 activities conducted by the agency under section 

11 3674B of this title.’’. 

12 (d) EFFECTIVE DATE.—The amendments made by 

13 this section shall take effect on August 1, 2013. 

14 SEC. 6. MANDATORY COMPLIANCE REVIEWS. 

15 (a) IN GENERAL.—Section 3693 of title 38, United 

16 States Code, is amended by adding at the end the fol17 lowing new subsection: 

18 ‘‘(c) In addition to the annual compliance surveys 

19 conducted under subsection (a), the Secretary shall also 

20 conduct a compliance review, in accordance with such reg21 ulations as the Secretary shall prescribe, of an educational 

22 institution described in such subsection whenever the Sec23 retary finds any of the following: 


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1 ‘‘(1) The number of student enrollments at, or 

2 the rate of student enrollments of, the educational 

3 institution has increased rapidly. 

4 ‘‘(2) The student dropout rate of the institution 

5 has increased rapidly. 

6 ‘‘(3) The cohort default rate, as defined in sec7 tion 435(m) of the Higher Education Act of 1965 

8 (20 U.S.C. 1085(m)), of the educational institution 

9 has increased rapidly or is consistently higher than 

10 the average of cohort default rate of comparable 

11 educational institutions. 

12 ‘‘(4) The number of substantiated complaints 

13 filed under section 3697C(a)(1) of this title with re14 spect to the educational institution have increased 

15 rapidly or is consistently higher than the number of 

16 substantiated complaints filed with respect to other 

17 comparable educational institutions. 

18 ‘‘(5) The educational institution is the subject 

19 of a civil lawsuit in Federal or State court, is 

20 charged with a crime under Federal or State law, or 

21 is the subject of an official investigation of a State 

22 or Federal agency for misconduct. 

23 ‘‘(6) The educational institution has significant 

24 growth in revenue resulting from tuition, including 

25 tuition paid with assistance provided under this 


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1 chapter, chapters 30 through 35 of this title, or 

2 chapters 106A or 1606 of title 10, which cannot be 

3 attributed to changes made to such chapters by Acts 

4 of Congress or changes to the administration of such 

5 chapters. 

6 ‘‘(7) Such other findings as the Secretary con7 siders warrant conducting a compliance survey 

8 under subsection (a).’’. 

9 (b) EFFECTIVE DATE.—Subsection (c) of such sec10 tion, as added by subsection (a), shall take effect on Au11 gust 1, 2013. 

12 SEC. 7. TRAINING AND COUNSELING SO VETERANS AND 

13 MEMBERS OF THE ARMED FORCES CAN 

14 MAKE INFORMED DECISIONS ABOUT EDU15 CATION. 

16 (a) IN GENERAL.—Subchapter II of chapter 36 of 

17 title 38, United States Code, is amended by adding at the 

18 end the following new section: 

19 ‘‘§ 3697B. Required one-on-one educational coun20 seling 

21 ‘‘(a) PROVISION OF COUNSELING REQUIRED.—(1) 

22 The Secretary of Veterans Affairs shall provide individual23 ized, one-on-one educational counseling to all individuals 

24 considering pursuing a program of education with assistVerDate Mar 15 2010 20:16 Mar 09, 2012 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S2179.IS S2179

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1 ance furnished under this chapter or any of chapters 30 

2 through 35 of this title. 

3 ‘‘(2) The Secretary of Defense shall provide individ4 ualized, one-on-one educational counseling to all individ5 uals considering pursuing a program of education with as6 sistance furnished under chapter 106A or 1606 of title 

7 10. 

8 ‘‘(b) TIME AND MANNER OF COUNSELING.—(1) 

9 Counseling provided under subsection (a) to an individual 

10 described in such subsection considering a program of 

11 education shall be provided at or before the individual en12 rolls in such program as follows: 

13 ‘‘(A) To such individuals who have received 

fewer than 1 14 ⁄3 of the credits necessary to complete 

15 the program of education, a complete version of such 

16 counseling. 

‘‘(B) To such individuals who have received 1 17 ⁄3

18 or more of the credits necessary to complete the pro19 gram of education, a condensed version of such 

20 counseling as the Secretary of Veterans Affairs or 

21 the Secretary of Defense, as the case may be, con22 siders appropriate. 

23 ‘‘(2) To the extent practicable, counseling provided 

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1 graph (1)(A) of this subsection shall be provided in per2 son. 

3 ‘‘(3) The Secretary of Veterans Affairs and the Sec4 retary of Defense shall each establish, by regulation, pro5 cedures by which individuals may receive counseling pro6 vided under subsection (a) when receipt of such counseling 

7 in person is not practicable. 

8 ‘‘(c) ELEMENTS.—A complete version of counseling 

9 provided under subsection (b)(1) for an individual shall 

10 include the following: 

11 ‘‘(1) An overview of educational assistance 

12 available to the individual under this chapter and 

13 chapters 30 through 35 of this title or under chap14 ters 106A and 1606 of title 10, as the case may be. 

15 ‘‘(2) Development of a personalized academic 

16 and career plan. 

17 ‘‘(3) An overview of the information disclosed 

18 and made readily available under section 3672(f)(1) 

19 of this title relevant to the academic and career plan 

20 developed under paragraph (2). 

21 ‘‘(4) A discussion of how enrollment in the pro22 gram of education at the educational institution will 

23 affect the individual’s academic and career plan and 

24 the financial implications for such individual of such 

25 enrollment. 


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1 ‘‘(5) An introduction to the College Navigator 

2 Internet website of the Department of Education. 

3 ‘‘(d) QUALIFIED COUNSELORS.—Counseling provided 

4 under subsection (a) may only be provided by properly 

5 trained counselors, as determined by the Secretary of Vet6 erans Affairs and the Secretary of Defense. 

7 ‘‘(e) USE OF INFORMATION DISCLOSED BY EDU8 CATIONAL INSTITUTIONS.—In providing educational as9 sistance under this section, the Secretary of Veterans Af10 fairs and the Secretary of Defense shall, to the degree 

11 practicable, use the information disclosed and made read12 ily available under section 3672(f)(1) of this title. 

13 ‘‘(f) LINKS TO COLLEGE NAVIGATOR INTERNET

14 WEBSITE OF DEPARTMENT OF EDUCATION.—The Sec15 retary of Veterans Affairs and the Secretary of Defense 

16 shall provide links on the Internet websites of the Depart17 ment of Veterans Affairs of the Department of Defense, 

18 respectively, to the College Navigator Internet website of 

19 the Department of Education in such a manner as the 

20 Secretary of Veterans Affairs and the Secretary of De21 fense consider appropriate to inform veterans and mem22 bers of the Armed Forces of the availability of and the 

23 benefits of using the College Navigator Internet website.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for chapter 36 of such title is amended by adding at the 

3 end the following new item: 

‘‘3697B. Required one-on-one educational counseling.’’. 

4 (c) CLARIFICATION.— 

5 (1) HEADING OF SECTION 3697A OF TITLE 38.— 

6 Section 3697A of such title is amended, in the head7 ing, by adding ‘‘by election’’ at the end. 

8 (2) TABLE OF SECTIONS.—The table of sections 

9 for chapter 36 of such title is amended by amending 

10 the item relating to section 3697A to read as fol11 lows: 

‘‘3697A. Educational and vocational counseling by election.’’. 

12 (d) EFFECTIVE DATE.—Section 3697B of such title, 

13 as added by paragraph (1), shall take effect on August 

14 1, 2013, and shall apply with respect to individuals consid15 ering pursuing programs of education as described in sub16 section (a) of such section after such date. 

17 SEC. 8. COORDINATION AND OVERSIGHT OF EDUCATIONAL 

18 ASSISTANCE PROGRAMS. 

19 (a) IN GENERAL.—Subchapter II of chapter 36 of 

20 title 38, United States Code, as amended by section 6, 

21 is further amended by adding at the end the following new 

22 section: 


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1 ‘‘§ 3697C. Coordination and oversight 

2 ‘‘(a) DEVELOPMENT OF CENTRALIZED COMPLAINTS

3 PROCESS.—(1) Not later than 180 days after the date of 

4 the enactment of the Military and Veterans Educational 

5 Reform Act of 2012, the Secretary of Veterans Affairs and 

6 the Secretary of Defense shall each establish, by regula7 tion, a process whereby persons are able to submit to the 

8 Secretaries, including by submitting via State approving 

9 agencies, complaints regarding educational institutions 

10 relevant to the provision of educational assistance provided 

11 under this chapter and chapters 30 through 35 of this title 

12 and under chapters 106A and 1606 of title 10, including 

13 complaints regarding misrepresentation, fraud, waste, and 

14 abuse. 

15 ‘‘(2) The process required by paragraph (1) shall in16 clude procedures to address complaints in a timely man17 ner, including review and investigation of such complaints. 

18 ‘‘(3) Each year, the Secretary of Veterans Affairs and 

19 the Secretary of Defense shall each compile the informa20 tion they collect under this subsection and share such in21 formation with each other and the Secretary of Education, 

22 as otherwise allowed under law. 

23 ‘‘(b) INFORMATION SHARING BETWEEN SECRETARY

24 OF VETERANS AFFAIRS, SECRETARY OF DEFENSE, AND

25 SECRETARY OF EDUCATION.—(1) Not later than 180 

26 days after the date of the enactment of the Military and 


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1 Veterans Educational Reform Act of 2012, the Secretary 

2 of Veterans Affairs and the Secretary of Defense shall 

3 each establish, by regulation, a process by which informa4 tion may be reported by their respective departments to 

5 the Secretary of Education and each other regarding in6 formation with respect to substantiated acts by edu7 cational institutions of misrepresentation, fraud, waste, or 

8 abuse or failure to comply with an applicable requirement 

9 of this chapter or other information considered appro10 priate by the reporting Secretary by an educational insti11 tution at which an individual is enrolled in a program of 

12 education for which the individual receives educational as13 sistance under this chapter, any of chapters 30 through 

14 35 of this title, or chapter 106A or 1606 of title 10 rel15 evant to the purpose and effective implementation of Fed16 eral programs of educational assistance provided under 

17 such chapters. 

18 ‘‘(2) Not later than 180 days after the date of the 

19 enactment of the Military and Veterans Educational Re20 form Act of 2012, the Secretary of Education shall estab21 lish a process by which the Secretary of Education notifies 

22 the Secretary of Veterans Affairs and the Secretary of De23 fense of the following with respect to educational institu24 tions: 


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1 ‘‘(A) Substantiated acts by educational institu2 tions of misrepresentation, fraud, waste, or abuse. 

3 ‘‘(B) Loss of accreditation. 

4 ‘‘(C) Loss of eligibility under title IV of the 

5 Higher Education Act of 1965 (20 U.S.C. 1070 et 

6 seq.). 

7 ‘‘(D) Has been reported by a Federal or State 

8 agency or a nationally recognized accrediting agency 

9 or association as failing to comply with, or has a sig10 nificant risk of failing to comply with, a provision of 

11 Federal or State law or a requirement that is a con12 dition for accreditation established by a nationally 

13 recognized accrediting agency or association. 

14 ‘‘(E) Such other information as the Secretary 

15 of Education considers appropriate. 

16 ‘‘(c) ANNUAL REPORT ON EDUCATIONAL ASSIST17 ANCE PROVIDED BY DEPARTMENT OF VETERANS AF18 FAIRS AND DEPARTMENT OF DEFENSE.—(1) Not less fre19 quently than once each year, the Secretary of Veterans 

20 Affairs and the Secretary of Defense shall each submit 

21 to Congress a report on the provision of educational assist22 ance under this chapter and chapters 30 through 35 of 

23 this title and under chapters 106A and 1606 of title 10, 

24 respectively. 


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1 ‘‘(2) Each report submitted under subsection (a) 

2 shall include, for the period covered by the report and 

3 disaggregated by for-profit and not-for-profit educational 

4 institutions, the following: 

5 ‘‘(A) The number of individuals who received 

6 assistance under laws administered by the respective 

7 Secretary. 

8 ‘‘(B) The amounts of assistance provided. 

9 ‘‘(C) A description of any complaints reported 

10 under subsection (a) to the respective Secretary or 

11 State approving agencies by such individuals with 

12 respect to the receipt or use of educational assist13 ance under laws administered by the respective Sec14 retary. 

15 ‘‘(D) All substantiated reports of misrepresen16 tation, waste, fraud, abuse, or other acts that are in17 consistent with the requirements of this chapter by 

18 an educational institution at which an individual is 

19 enrolled in a program of education for which the in20 dividual is receiving educational assistance under a 

21 law administered by the respective Secretary. 

22 ‘‘(E) A list of educational institutions which 

23 had courses of education that were approved under 

24 this chapter in the previous year but were found, in 


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1 the year covered by the report, not in compliance 

2 with a requirement of such chapter. 

3 ‘‘(F) Such recommendations for legislative or 

4 regulatory action as the respective Secretary con5 siders appropriate to improve the provision of edu6 cational assistance under the laws administered by 

7 the respective Secretary. 

8 ‘‘(G) An assessment of the academic perform9 ance of individuals who received educational assist10 ance described in paragraph (1), including gradua11 tion rates and dropout rates. 

12 ‘‘(H) A list of educational institutions that were 

13 approved under this chapter, disaggregated by edu14 cational institutions approved under section 3676 of 

15 this title.’’. 

16 (b) CLERICAL AMENDMENT.—The table of sections 

17 at the beginning of chapter 36 of such title, as amended 

18 by section 6, is further amended by adding at the end the 

19 following new item: 

‘‘3697C. Coordination and oversight.’’. 

Æ 


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