I 

116TH CONGRESS 

1ST SESSION H. R. 4012 

To amend the Higher Education Act of 1965 and title 38, United States 

Code, to conduct risk analyses regarding certain educational institutions 

receiving payments under the Department of Education heightened cash 

monitoring payment method, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 25, 2019 

Mr. CUMMINGS (for himself and Mr. YOHO) introduced the following bill; 

which was referred to the Committee on Education and Labor, and in 

addition to the Committee on Veterans’ Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Higher Education Act of 1965 and title 38, 

United States Code, to conduct risk analyses regarding 

certain educational institutions receiving payments under 

the Department of Education heightened cash monitoring 

payment method, 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 ‘‘Safeguarding Student 

5 Veterans Act’’. 


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1 SEC. 2. DEPARTMENT OF EDUCATION HEIGHTENED CASH 

2 MONITORING STATUS. 

3 Section 487(c) of the Higher Education Act of 1965 

4 (20 U.S.C. 1094(c)) is amended by adding at the end the 

5 following: 

6 ‘‘(8) In a case in which, pursuant to paragraph 

7 (1)(B), the Secretary makes payments to an eligible 

8 institution using the heightened cash monitoring 

9 payment method due to the determination that the 

10 institution fails to meet reasonable standards of fi11 nancial responsibility or appropriate institutional ca12 pability for the administration of a program of stu13 dent financial aid under this title, not later than 5 

14 days after such determination with respect to the in15 stitution and on an ongoing basis thereafter, the 

16 Secretary of Education shall provide to the Sec17 retary of Veterans Affairs— 

18 ‘‘(A) notice of such determination; and 

19 ‘‘(B) any information submitted to the 

20 Secretary of Education by the eligible institu21 tion for purposes of such payment method.’’. 


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1 SEC. 3. DEPARTMENT OF VETERANS AFFAIRS RISK ANAL2 YSIS AND NOTICE TO STUDENTS REGARDING 

3 DEPARTMENT OF EDUCATION CASH PAY4 MENT MONITORING OF EDUCATIONAL INSTI5 TUTIONS. 

6 (a) IN GENERAL.—Chapter 36 of title 38, United 

7 States Code, is amended by adding at the end the fol8 lowing new section: 

9 ‘‘§ 3699B. Risk analysis and notice to students regard10 ing Department of Education cash pay11 ment monitoring of educational institu12 tions 

13 ‘‘(a) RISK ANALYSIS.—(1) In the case of any covered 

14 educational institution, the Secretary of Veterans Affairs 

15 shall conduct an analysis of the risk posed by the school 

16 to students using entitlement to educational assistance 

17 under the laws administered by the Secretary. Such risk 

18 analysis shall include the following risk factors: 

19 ‘‘(A) Rapid increases in veteran enrollment. 

20 ‘‘(B) Increases in the amount of benefits per 

21 capita. 

22 ‘‘(C) Volume of student complaints. 

23 ‘‘(D) Rates of Federal student loan defaults of 

24 veterans. 

25 ‘‘(E) Veteran completion rates. 


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1 ‘‘(F) Deficiencies identified by accreditors and 

2 other State agencies. 

3 ‘‘(G) Deficiencies in Department of Veterans 

4 Affairs program administration compliance. 

5 ‘‘(2) The Secretary shall complete such risk analysis 

6 by not later than 30 days after the date on which the Sec7 retary receives the notice referred to in paragraph (3)(A). 

8 ‘‘(3) In this subsection, a covered educational institu9 tion is an educational institution— 

10 ‘‘(A) for which the Secretary receives notice 

11 from the Secretary of Education under section 

12 487(c)(8) of the Higher Education Act of 1965 (20 

13 U.S.C. 1094(c)(8)) that an educational institution is 

14 receiving payments under the heightened cash moni15 toring payment method due to the determination 

16 that the institution fails to meet reasonable stand17 ards of financial responsibility or appropriate insti18 tutional capability for the administration of a pro19 gram of student financial aid; and 

20 ‘‘(B) where 20 or more individuals are pursuing 

21 a course or program of education using educational 

22 assistance under chapter 30, 32, 33, or 35 of this 

23 title, or chapter 1606 or 1607 of title 10. 


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1 ‘‘(b) NOTICE.—Not later than 15 days after com2 pleting a risk analysis under subsection (a), the Secretary 

3 of Veterans Affairs shall— 

4 ‘‘(1) provide notice of such determination to 

5 any individual who is pursuing a course or program 

6 of education at such educational institution using 

7 the individual’s entitlement to educational assistance 

8 under chapter 30, 32, 33, or 35 of this title, or 

9 chapter 1606 or 1607 of title 10; and 

10 ‘‘(2) publish such notice on an appropriate 

11 website of the Department, including as part of the 

12 GI Bill Comparison tool, or any successor.’’. 

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

14 at the beginning of such chapter is amended by adding 

15 at the end the following new item: 

‘‘3699B. Risk analysis and notice to students regarding Department of Education cash payment monitoring of educational institutions.’’. 

Æ 


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