Student Veteran Benefit Restoration Act

Bill: 118-hr-1767
Sponsor: full_name: Rep. Ramirez, Delia C. [D-IL-3]
Introduced: 2023-03-23
Policy area: Armed Forces and National Security
Subjects: Educational facilities and institutions

Fraud offenses and financial crimes

Veterans' education, employment, rehabilitation

Veterans' pensions and compensation
Latest action: action_date: 2024-05-01
text: Received in the Senate and Read twice and referred to the Committee on Veterans' Affairs.

Summaries:
action_date: 2023-03-23
action_desc: Introduced in House
text: <p>This bill provides that an individual's Department of Veterans Affairs (VA) educational assistance benefits must not be charged for a course or program if the VA determines the individual could not complete the course or program because (1) it was suspended or terminated due to information collected as part of a VA risk-based survey, or (2) the Department of Education has determined the educational institution committed an actionable act or omission that had a detrimental effect on direct loan borrowers.</p> <p>The bill also provides that as a condition of the approval of a course or program of education, an educational institution offering the course or program must agree to repay to the VA all educational assistance amounts if the institution closes or suspends or terminates a course or program because the Federal Trade Commission or the Department of Education determined there was fraud.</p>

tv_txt: IIB 118th CONGRESS 2d Session H. R. 1767 IN THE SENATE OF THE UNITED STATES May 1, 2024 Received; read twice and referred to the Committee on Veterans' Affairs AN ACT 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. Short title This Act may be cited as the Student Veteran Benefit Restoration Act . 2. Treatment by Department of Veterans Affairs of educational institutions that violate certain prohibitions on advertising, sales, and enrollment practices (a) Restoration of entitlement Section 3696 of title 38, United States Code, is amended— (1) by redesignating subsections (i) through (l) as subsections (j) through (m), respectively; and (2) by inserting after subsection (h) the following new subsection (i): (i) Restoration of entitlement Upon a final determination by the Under Secretary for Benefits under subsection (g), including the results of any appeal under subsection (i), that an educational institution or the owner of an educational institution violated subsection (a), (c), or (d), the Secretary may determine that any payment of educational assistance to an individual who used, or was enticed to use, entitlement to educational assistance under chapter 30, 31, 32, 33, or 35 of this title, or chapter 1606 or 1607 of title 10, to pursue a course or program of education at such educational institution during the time period when the violation occurred, and who, by reason of such violation, was unable to continue such course or program at such educational institution or was deprived (in the determination of the Secretary) of the expected value of such used entitlement, is not— (1) charged against any entitlement to educational assistance of the individual; or (2) counted against the aggregate period for which section 3695 of this title limits the receipt of educational assistance by such individual. . (b) Repayment of funds (1) In general Subsection (h) of such section is amended— (A) in paragraph (4), by striking subsection (i) and inserting subsection (j) ; and (B) by adding at the end the following new paragraph: (5) (A) In addition to any other enforcement action taken under this subsection, upon a final determination by the Under Secretary for Benefits under subsection (g) that an educational institution or the owner of an educational institution violated subsection (a) or (c), the Secretary shall require the educational institution to repay to the Secretary all amounts of educational assistance under chapter 30, 31, 32, 33, or 35 of this title, or chapter 1606 or 1607 of title 10, paid to the educational institution by or on behalf of an individual who pursued a course or program of education at the educational institution during the time period when the violation occurred. (B) 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 Under Secretary of Benefits makes a final determination under subsection (g) that the educational institution or the owner of the educational institution violated subsection (a) or (c), the educational institution shall make the repayment required under subparagraph (A). (C) The Under Secretary shall establish a process for making a determination regarding the amount an educational institution or an owner of an educational institution is required to repay under subparagraph (A) in the case of a violation of subsection (a) or (c). Such process shall include— (i) clearly defined factors to be used to determine the amount attributable to the violation, including the degree to which individuals enrolled in a program of education offered by the educational institution using entitlement to educational assistance under chapter 30, 31, 32, 33, or 35 of this title or chapter 1606 or 1607 of title 10 suffered a loss due to the violation; (ii) a requirement that the Under Secretary provide notice to the educational institution or the owner of the educational institution that the Under Secretary is in the process of making such a determination with respect to the educational institution or owner; and (iii) a procedure under which the educational institution or owner may provide such information to the Under Secretary as the educational institution or owner determines appropriate within a specified period of time outlined by the Secretary for purposes of informing such determination. (D) A determination made pursuant to subparagraph (C) shall be— (i) made by the Under Secretary and may not be delegated; and (ii) subject to review under section 7104(a) of this title. . (2) Disapproval Section 3679 of title 38, United States Code, is amended by adding at the end the following new subsection: (g) Notwithstanding any other provision of this chapter, in the case of an educational institution that the Secretary determines is required to repay to the Secretary an amount under section 3696(h)(5) of this title and does not repay such amount, the Secretary shall disapprove a course or program of education offered by the educational institution until the educational institution repays to the Secretary such amount. . (3) Reinstatement Paragraph (2) of subsection (k) of section 3696, as redesignated by subsection (a)(1), is amended— (A) in subparagraph (E)— (i) by striking that ; and (ii) by striking and at the end; (B) by redesignating subparagraph (F) as subparagraph (G); and (C) by inserting after subparagraph (E) the following new subparagraph (F): (F) the educational institution repays any amount required to be repaid under subsection (h)(5); and . 3. Modification of certain housing loan fees The loan fee table in section 3729(b)(2) of title 38, United States Code, is amended by striking November 15, 2031 each place it appears and inserting November 29, 2031 .

Passed the House of Representatives April 30, 2024. Kevin F. McCumber, Clerk

tv_txt: I 118th CONGRESS 2d Session H. R. 1767 IN THE HOUSE OF REPRESENTATIVES AN ACT 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. Short title This Act may be cited as the Student Veteran Benefit Restoration Act . 2. Treatment by Department of Veterans Affairs of educational institutions that violate certain prohibitions on advertising, sales, and enrollment practices (a) Restoration of entitlement Section 3696 of title 38, United States Code, is amended— (1) by redesignating subsections (i) through (l) as subsections (j) through (m), respectively; and (2) by inserting after subsection (h) the following new subsection (i): (i) Restoration of entitlement Upon a final determination by the Under Secretary for Benefits under subsection (g), including the results of any appeal under subsection (i), that an educational institution or the owner of an educational institution violated subsection (a), (c), or (d), the Secretary may determine that any payment of educational assistance to an individual who used, or was enticed to use, entitlement to educational assistance under chapter 30, 31, 32, 33, or 35 of this title, or chapter 1606 or 1607 of title 10, to pursue a course or program of education at such educational institution during the time period when the violation occurred, and who, by reason of such violation, was unable to continue such course or program at such educational institution or was deprived (in the determination of the Secretary) of the expected value of such used entitlement, is not— (1) charged against any entitlement to educational assistance of the individual; or (2) counted against the aggregate period for which section 3695 of this title limits the receipt of educational assistance by such individual. . (b) Repayment of funds (1) In general Subsection (h) of such section is amended— (A) in paragraph (4), by striking subsection (i) and inserting subsection (j) ; and (B) by adding at the end the following new paragraph: (5) (A) In addition to any other enforcement action taken under this subsection, upon a final determination by the Under Secretary for Benefits under subsection (g) that an educational institution or the owner of an educational institution violated subsection (a) or (c), the Secretary shall require the educational institution to repay to the Secretary all amounts of educational assistance under chapter 30, 31, 32, 33, or 35 of this title, or chapter 1606 or 1607 of title 10, paid to the educational institution by or on behalf of an individual who pursued a course or program of education at the educational institution during the time period when the violation occurred. (B) 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 Under Secretary of Benefits makes a final determination under subsection (g) that the educational institution or the owner of the educational institution violated subsection (a) or (c), the educational institution shall make the repayment required under subparagraph (A). (C) The Under Secretary shall establish a process for making a determination regarding the amount an educational institution or an owner of an educational institution is required to repay under subparagraph (A) in the case of a violation of subsection (a) or (c). Such process shall include— (i) clearly defined factors to be used to determine the amount attributable to the violation, including the degree to which individuals enrolled in a program of education offered by the educational institution using entitlement to educational assistance under chapter 30, 31, 32, 33, or 35 of this title or chapter 1606 or 1607 of title 10 suffered a loss due to the violation; (ii) a requirement that the Under Secretary provide notice to the educational institution or the owner of the educational institution that the Under Secretary is in the process of making such a determination with respect to the educational institution or owner; and (iii) a procedure under which the educational institution or owner may provide such information to the Under Secretary as the educational institution or owner determines appropriate within a specified period of time outlined by the Secretary for purposes of informing such determination. (D) A determination made pursuant to subparagraph (C) shall be— (i) made by the Under Secretary and may not be delegated; and (ii) subject to review under section 7104(a) of this title. . (2) Disapproval Section 3679 of title 38, United States Code, is amended by adding at the end the following new subsection: (g) Notwithstanding any other provision of this chapter, in the case of an educational institution that the Secretary determines is required to repay to the Secretary an amount under section 3696(h)(5) of this title and does not repay such amount, the Secretary shall disapprove a course or program of education offered by the educational institution until the educational institution repays to the Secretary such amount. . (3) Reinstatement Paragraph (2) of subsection (k) of section 3696, as redesignated by subsection (a)(1), is amended— (A) in subparagraph (E)— (i) by striking that ; and (ii) by striking and at the end; (B) by redesignating subparagraph (F) as subparagraph (G); and (C) by inserting after subparagraph (E) the following new subparagraph (F): (F) the educational institution repays any amount required to be repaid under subsection (h)(5); and . 3. Modification of certain housing loan fees The loan fee table in section 3729(b)(2) of title 38, United States Code, is amended by striking November 15, 2031 each place it appears and inserting November 29, 2031 .

Passed the House of Representatives April 30, 2024. Cheryl L. Johnson, Clerk.

tv_txt: I 118th CONGRESS 1st Session H. R. 1767 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. 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.