118th CONGRESS 1st Session |
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.
March 23, 2023
Mrs. Ramirez (for herself and Mr. Levin) introduced the following bill; which was referred to the Committee on Veterans' Affairs
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.