Federal

Student Veteran Benefit Restoration Act

Source: Congress.gov · 1,350 words in original text

What This Bill Does

This bill helps student veterans who attended schools that violated certain advertising, sales or enrollment rules. When a school violates these rules and a veteran cannot finish their education there, the money the government paid to that school will not count against the veteran's education benefits. The bill also requires schools to repay the government for educational assistance they received during the time they were breaking the rules.

Who It Affects

Student veterans who used education benefits to attend schools that violated advertising, sales or enrollment practices. Educational institutions that offer courses or programs to veterans. The Department of Veterans Affairs, which administers veterans benefits. School owners who operate institutions receiving veteran education funds.

Key Provisions

When a school violates advertising, sales or enrollment rules, the Secretary of Veterans Affairs can decide that money paid to that school does not count against a veteran's education benefits or time limits. (Sec. 2(a)) Schools must repay the government all education assistance money they received when violations occurred, and schools must agree to this repayment requirement to get approval for their courses. (Sec. 2(b)(1)) The Under Secretary of Veterans Affairs must create a process to determine how much a school owes, including looking at how much veterans lost because of the violation. (Sec. 2(b)(1)) The government can disapprove a school's courses or programs if the school does not repay the required amount. (Sec. 2(2))

What Changes

Schools that violate rules will have to repay the government instead of veterans losing their education benefits. Veterans whose education was disrupted by school violations will get their education benefits restored and not lose their eligibility for future assistance.

Important Definitions

Educational assistance: Money provided by the Department of Veterans Affairs to help veterans pay for education programs, including benefits under certain chapters of federal law. Entitlement: A veteran's right to receive a specific amount of educational assistance benefits.

Effective Date

Not specified in bill text

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 Vet- erans Affairs educational assistance programs to an indi- vidual 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 indi- vidual, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 01:32 May 02, 2024 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1767.RFS H1767 ssavage on LAPJG3WLY3PROD with BILLS 2 HR 1767 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Student Veteran Ben- 2 efit Restoration Act’’. 3 SEC. 2. TREATMENT BY DEPARTMENT OF VETERANS AF- 4 FAIRS OF EDUCATIONAL INSTITUTIONS THAT 5 VIOLATE CERTAIN PROHIBITIONS ON ADVER- 6 TISING, SALES, AND ENROLLMENT PRAC- 7 TICES. 8 (a) RESTORATION OF ENTITLEMENT.—Section 3696 9 of title 38, United States Code, is amended— 10 (1) by redesignating subsections (i) through (l) 11 as subsections (j) through (m), respectively; and 12 (2) by inserting after subsection (h) the fol- 13 lowing new subsection (i): 14 ‘‘(i) RESTORATION OF ENTITLEMENT.—Upon a final 15 determination by the Under Secretary for Benefits under 16 subsection (g), including the results of any appeal under 17 subsection (i), that an educational institution or the owner 18 of an educational institution violated subsection (a), (c), 19 or (d), the Secretary may determine that any payment of 20 educational assistance to an individual who used, or was 21 enticed to use, entitlement to educational assistance under 22 chapter 30, 31, 32, 33, or 35 of this title, or chapter 1606 23 or 1607 of title 10, to pursue a course or program of edu- 24 cation at such educational institution during the time pe- 25 riod when the violation occurred, and who, by reason of 26 VerDate Sep 11 2014 01:32 May 02, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1767.RFS H1767 ssavage on LAPJG3WLY3PROD with BILLS 3 HR 1767 RFS such violation, was unable to continue such course or pro- 1 gram at such educational institution or was deprived (in 2 the determination of the Secretary) of the expected value 3 of such used entitlement, is not— 4 ‘‘(1) charged against any entitlement to edu- 5 cational assistance of the individual; or 6 ‘‘(2) counted against the aggregate period for 7 which section 3695 of this title limits the receipt of 8 educational assistance by such individual.’’. 9 (b) REPAYMENT OF FUNDS.— 10 (1) IN GENERAL.—Subsection (h) of such sec- 11 tion is amended— 12 (A) in paragraph (4), by striking ‘‘sub- 13 section (i)’’ and inserting ‘‘subsection (j)’’; and 14 (B) by adding at the end the following new 15 paragraph: 16 ‘‘(5)(A) In addition to any other enforcement action 17 taken under this subsection, upon a final determination 18 by the Under Secretary for Benefits under subsection (g) 19 that an educational institution or the owner of an edu- 20 cational institution violated subsection (a) or (c), the Sec- 21 retary shall require the educational institution to repay to 22 the Secretary all amounts of educational assistance under 23 chapter 30, 31, 32, 33, or 35 of this title, or chapter 1606 24 or 1607 of title 10, paid to the educational institution by 25 VerDate Sep 11 2014 01:32 May 02, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1767.RFS H1767 ssavage on LAPJG3WLY3PROD with BILLS 4 HR 1767 RFS or on behalf of an individual who pursued a course or pro- 1 gram of education at the educational institution during 2 the time period when the violation occurred. 3 ‘‘(B) As a condition of the approval of a course or 4 program of education under this chapter, the educational 5 institution offering the course or program shall agree that 6 if Under Secretary of Benefits makes a final determina- 7 tion under subsection (g) that the educational institution 8 or the owner of the educational institution violated sub- 9 section (a) or (c), the educational institution shall make 10 the repayment required under subparagraph (A). 11 ‘‘(C) The Under Secretary shall establish a process 12 for making a determination regarding the amount an edu- 13 cational institution or an owner of an educational institu- 14 tion is required to repay under subparagraph (A) in the 15 case of a violation of subsection (a) or (c). Such process 16 shall include— 17 ‘‘(i) clearly defined factors to be used to deter- 18 mine the amount attributable to the violation, in- 19 cluding the degree to which individuals enrolled in a 20 program of education offered by the educational in- 21 stitution using entitlement to educational assistance 22 under chapter 30, 31, 32, 33, or 35 of this title or 23 chapter 1606 or 1607 of title 10 suffered a loss due 24 to the violation; 25 VerDate Sep 11 2014 01:32 May 02, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1767.RFS H1767 ssavage on LAPJG3WLY3PROD with BILLS 5 HR 1767 RFS ‘‘(ii) a requirement that the Under Secretary 1 provide notice to the educational institution or the 2 owner of the educational institution that the Under 3 Secretary is in the process of making such a deter- 4 mination with respect to the educational institution 5 or owner; and 6 ‘‘(iii) a procedure under which the educational 7 institution or owner may provide such information to 8 the Under Secretary as the educational institution or 9 owner determines appropriate within a specified pe- 10 riod of time outlined by the Secretary for purposes 11 of informing such determination. 12 ‘‘(D) A determination made pursuant to subpara- 13 graph (C) shall be— 14 ‘‘(i) made by the Under Secretary and may not 15 be delegated; and 16 ‘‘(ii) subject to review under section 7104(a) of 17 this title.’’. 18 (2) DISAPPROVAL.—Section 3679 of title 38, 19 United States Code, is amended by adding at the 20 end the following new subsection: 21 ‘‘(g) Notwithstanding any other provision of this 22 chapter, in the case of an educational institution that the 23 Secretary determines is required to repay to the Secretary 24 an amount under section 3696(h)(5) of this title and does 25 VerDate Sep 11 2014 01:32 May 02, 2024 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1767.RFS H1767 ssavage on LAPJG3WLY3PROD with BILLS 6 HR 1767 RFS not repay such amount, the Secretary shall disapprove a 1 course or program of education offered by the educational 2 institution until the educational institution repays to the 3 Secretary such amount.’’. 4 (3) REINSTATEMENT.—Paragraph (2) of sub- 5 section (k) of section 3696, as redesignated by sub- 6 section (a)(1), is amended— 7 (A) in subparagraph (E)— 8 (i) by striking ‘‘that’’; and 9 (ii) by striking ‘‘and’’ at the end; 10 (B) by redesignating subparagraph (F) as 11 subparagraph (G); and 12 (C) by inserting after subparagraph (E) 13 the following new subparagraph (F): 14 ‘‘(F) the educational institution repays any 15 amount required to be repaid under subsection 16 (h)(5); and’’. 17 SEC. 3. MODIFICATION OF CERTAIN HOUSING LOAN FEES. 18 The loan fee table in section 3729(b)(2) of title 38, 19 United States Code, is amended by striking ‘‘November 20 VerDate Sep 11 2014 01:32 May 02, 2024 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1767.RFS H1767 ssavage on LAPJG3WLY3PROD with BILLS 7 HR 1767 RFS 15, 2031’’ each place it appears and inserting ‘‘November 1 29, 2031’’. 2 Passed the House of Representatives April 30, 2024. Attest: KEVIN F. MCCUMBER, Clerk. VerDate Sep 11 2014 01:32 May 02, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1767.RFS H1767 ssavage on LAPJG3WLY3PROD with BILLS

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