I 

118TH CONGRESS 

1ST SESSION H. R. 1767 

To amend title 38, United States Code, to provide that educational assistance 

paid under Department of Veterans Affairs educational assistance programs to an individual who pursued a program or course of education 

that was suspended or terminated for certain reasons shall not be 

charged against the entitlement of the individual, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 23, 2023 

Mrs. RAMIREZ (for herself and Mr. LEVIN) introduced the following bill; which 

was referred to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to provide that 

educational assistance paid under Department of Veterans Affairs educational assistance programs to an individual who pursued a program or course of education 

that was suspended or terminated for certain reasons 

shall not be charged against the entitlement of the individual, 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, 


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1 SECTION 1. EFFECTS OF TERMINATION OF COURSES OR 

2 PROGRAMS BY REASON OF FRAUD ON EDU3 CATIONAL INSTITUTIONS UNDER DEPART4 MENT OF VETERANS AFFAIRS EDUCATIONAL 

5 ASSISTANCE PROGRAMS. 

6 (a) IN GENERAL.—Section 3699(b)(1) of title 38, 

7 United States Code, is amended— 

8 (1) in subparagraph (A), by striking ‘‘or’’ at 

9 the end; 

10 (2) in subparagraph (B), by striking ‘‘; and’’; 

11 and 

12 (3) by adding at the end the following new sub13 paragraph: 

14 ‘‘(C) the suspension or termination of a 

15 course or program of education by reason of in16 formation collected as part of a risk-based sur17 vey under section 3673A of this title; or 

18 ‘‘(D) a determination made by the Sec19 retary of Education based on a preponderance 

20 of the evidence that an educational institution 

21 committed an actionable act or omission under 

22 regulations under the authority of the Secretary 

23 of Education and, as a result, direct loan bor24 rowers at such educational institution suffered 

25 detriments of a nature and degree warranting 


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1 the relief provided by a borrower defense to re2 payment; and’’. 

3 (b) REPAYMENT OF FUNDS.—Section 3699 of title 

4 38, United States Code, as amended by subsection (a), 

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

6 subsection: 

7 ‘‘(f) REPAYMENT OF FUNDS IN CASES OF FRAUD.— 

8 As a condition of the approval of a course or program of 

9 education under this chapter, the educational institution 

10 offering the course or program shall agree that if the edu11 cational institution closes or suspends or terminates a 

12 course or program of education by reason of a determina13 tion of fraud by the Commissioner of the Federal Trade 

14 Commission or the Secretary of Education, the edu15 cational institution shall repay to the Secretary all 

16 amounts of educational assistance received pursuant to 

17 the educational assistance programs administered by the 

18 Secretary during the period when the fraud was deter19 mined to have occurred.’’. 

20 (c) EFFECTIVE DATE.—Subparagraphs (C) and (D) 

21 of section 3699(b)(1) of title 38, United States Code, as 

22 added by subsection (a), shall apply with respect to the 

23 suspension or termination of a course or program of edu24 cation or a determination of the Secretary of Education 


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1 made before, on, or after the date of the enactment of 

2 this Act. 

Æ 


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