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.

Subjects: Armed Forces and National Security


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1767 Introduced in House (IH)]

&lt;DOC&gt;






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.

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

SECTION 1. EFFECTS OF TERMINATION OF COURSES OR PROGRAMS BY REASON OF 
              FRAUD ON EDUCATIONAL INSTITUTIONS UNDER DEPARTMENT OF 
              VETERANS AFFAIRS EDUCATIONAL ASSISTANCE PROGRAMS.

    (a) In General.--Section 3699(b)(1) of title 38, United States 
Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(C) the suspension or termination of a course or 
                program of education by reason of information collected 
                as part of a risk-based survey under section 3673A of 
                this title; or
                    ``(D) a determination made by the Secretary of 
                Education based on a preponderance of the evidence that 
                an educational institution committed an actionable act 
                or omission under regulations under the authority of 
                the Secretary of Education and, as a result, direct 
                loan borrowers at such educational institution suffered 
                detriments of a nature and degree warranting the relief 
                provided by a borrower defense to repayment; and''.
    (b) Repayment of Funds.--Section 3699 of title 38, United States 
Code, as amended by subsection (a), is further amended by adding at the 
end the following new subsection:
    ``(f) Repayment of Funds in Cases of Fraud.--As a condition of the 
approval of a course or program of education under this chapter, the 
educational institution offering the course or program shall agree that 
if the educational institution closes or suspends or terminates a 
course or program of education by reason of a determination of fraud by 
the Commissioner of the Federal Trade Commission or the Secretary of 
Education, the educational institution shall repay to the Secretary all 
amounts of educational assistance received pursuant to the educational 
assistance programs administered by the Secretary during the period 
when the fraud was determined to have occurred.''.
    (c) Effective Date.--Subparagraphs (C) and (D) of section 
3699(b)(1) of title 38, United States Code, as added by subsection (a), 
shall apply with respect to the suspension or termination of a course 
or program of education or a determination of the Secretary of 
Education made before, on, or after the date of the enactment of this 
Act.
                                 &lt;all&gt;
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