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 subse-
quently 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Safeguarding Student 
Veterans Act’’. 
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SEC. 2. DEPARTMENT OF EDUCATION HEIGHTENED CASH 
MONITORING STATUS. 
Section 487(c) of the Higher Education Act of 1965 
(20 U.S.C. 1094(c)) is amended by adding at the end the 
following: 
‘‘(8) In a case in which, pursuant to paragraph 
(1)(B), the Secretary makes payments to an eligible 
institution using the heightened cash monitoring 
payment method due to the determination that the 
institution fails to meet reasonable standards of fi-
nancial responsibility or appropriate institutional ca-
pability for the administration of a program of stu-
dent financial aid under this title, not later than 5 
days after such determination with respect to the in-
stitution and on an ongoing basis thereafter, the 
Secretary of Education shall provide to the Sec-
retary of Veterans Affairs— 
‘‘(A) notice of such determination; and 
‘‘(B) any information submitted to the 
Secretary of Education by the eligible institu-
tion for purposes of such payment method.’’. 
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SEC. 3. DEPARTMENT OF VETERANS AFFAIRS RISK ANAL-
YSIS AND NOTICE TO STUDENTS REGARDING 
DEPARTMENT OF EDUCATION CASH PAY-
MENT MONITORING OF EDUCATIONAL INSTI-
TUTIONS. 
(a) IN GENERAL.—Chapter 36 of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 3699B. Risk analysis and notice to students regard-
ing Department of Education cash pay-
ment monitoring of educational institu-
tions 
‘‘(a) RISK ANALYSIS.—(1) In the case of any covered 
educational institution, the Secretary of Veterans Affairs 
shall conduct an analysis of the risk posed by the school 
to students using entitlement to educational assistance 
under the laws administered by the Secretary. Such risk 
analysis shall include the following risk factors: 
‘‘(A) Rapid increases in veteran enrollment. 
‘‘(B) Increases in the amount of benefits per 
capita. 
‘‘(C) Volume of student complaints. 
‘‘(D) Rates of Federal student loan defaults of 
veterans. 
‘‘(E) Veteran completion rates. 
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‘‘(F) Deficiencies identified by accreditors and 
other State agencies. 
‘‘(G) Deficiencies in Department of Veterans 
Affairs program administration compliance. 
‘‘(2) The Secretary shall complete such risk analysis 
by not later than 30 days after the date on which the Sec-
retary receives the notice referred to in paragraph (3)(A). 
‘‘(3) In this subsection, a covered educational institu-
tion is an educational institution— 
‘‘(A) for which the Secretary receives notice 
from the Secretary of Education under section 
487(c)(8) of the Higher Education Act of 1965 (20 
U.S.C. 1094(c)(8)) that an educational institution is 
receiving payments under the heightened cash moni-
toring payment method due to the determination 
that the institution fails to meet reasonable stand-
ards of financial responsibility or appropriate insti-
tutional capability for the administration of a pro-
gram of student financial aid; and 
‘‘(B) where 20 or more individuals are pursuing 
a course or program of education using educational 
assistance under chapter 30, 32, 33, or 35 of this 
title, or chapter 1606 or 1607 of title 10. 
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‘‘(b) NOTICE.—Not later than 15 days after com-
pleting a risk analysis under subsection (a), the Secretary 
of Veterans Affairs shall— 
‘‘(1) provide notice of such determination to 
any individual who is pursuing a course or program 
of education at such educational institution using 
the individual’s entitlement to educational assistance 
under chapter 30, 32, 33, or 35 of this title, or 
chapter 1606 or 1607 of title 10; and 
‘‘(2) publish such notice on an appropriate 
website of the Department, including as part of the 
GI Bill Comparison tool, or any successor.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘3699B. Risk analysis and notice to students regarding Department of Edu-
cation cash payment monitoring of educational institutions.’’. 
Æ 
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