#aafth ,,congress  #ast ,session  ,h4   
,r4 #dfbe  ,,an ,,act  ,to amend title  
#ch1 ,united ,states ,code1 to require  
that educational institutions abide by  
certain principles as a condition of    
approval for purposes of the educational
 assistance programs of the ,department 
of ,veterans ,affairs1 and for other    
purposes4  #a4 ,short title2 table of   
contents  7a7 ,short title ,this ,act   
may be cited as the ,protect the ,,gi   
,bill ,act4  7b7 ,table of contents ,the
 table of contents for this ,act is as  
follows3  ,sec4 #a4 ,short title2 table 
of contents4 ,sec4 #b4 ,clarification of
 educational assistance for individuals 
who pursue an approved program of       
education leading to a degree while on  
active duty4 ,sec4 #c4 ,verification of 
enrollment for purposes of receipt of   
,post-#i_/aa ,educational ,assistance   
benefits4 ,sec4 #d4 ,clarification      
regarding the dependents to whom        
entitlement to educational assistance   
may be transferred under the ,post      

#i_/aa ,educational ,assistance         
,program4 ,sec4 #e4 ,expansion of       
reasons for which a course of education 
may be disapproved4 ,sec4 #f4 ,oversight
 of educational institutions subject to 
,government action for purposes of the  
educational assistance programs of the  
,department of ,veterans ,affairs4 ,sec4
 #g4 ,additional requirement for        
approval of educational institutions for
 purposes of the educational assistance 
programs of the ,department of ,veterans
 ,affairs4 ,sec4 #h4 ,clarification of  
accreditation for law schools for       
purposes of the educational assistance  
programs of the ,department of ,veterans
 ,affairs4 ,sec4 #i4 ,clarification of  
grounds for disapproval of a course for 
purposes of the educational assistance  
programs of the ,department of ,veterans
 ,affairs4 ,sec4 #aj4 ,requirements for 
educational institutions participating  
in the educational assistance programs  
of the ,department of ,veterans         
,affairs4 ,sec4 #aa4 ,overpayments to   

eligible persons or veterans4 ,sec4 #ab4
 ,improvements to limitation on certain 
advertising1 sales1 and enrollment      
practices4 ,sec4 #ac4 ,additional       
limitation on certain advertising1      
sales1 and enrollment practices of      
educational institutions4 ,sec4 #ad4    
,charge to entitlement to educational   
assistance for individuals who do not   
transfer credits from certain closed or 
disapproved programs of education4 ,sec4
 #ae4 ,determination of budgetary       
effects4  #b4 ,clarification of         
educational assistance for individuals  
who pursue an approved program of       
education leading to a degree while on  
active duty ,section #ccac7;e7 of title 
#ch1 ,united ,states ,code1 is amended--
 7#a7 in the heading1 by inserting for a
 period of more than #cj days after     
active duty2  7#b7 in paragraph 7#a71 by
 inserting for a period of more than #cj
 days after active duty2 and  7#c7 in   
paragraph 7#b71 in the matter preceding 
subparagraph 7,a71 by inserting for a   

period of more than #cj days after      
active duty4  #c4 ,verification of      
enrollment for purposes of receipt of   
,post-#i_/aa ,educational ,assistance   
benefits  7a7 ,in general ,section #ccac
 of title #ch1 ,united ,states ,code1 as
 amended by section #b1 is further      
amended by adding at the end the        
following new subsection3  7l7          
,verification of enrollment  7#a7 ,the  
,secretary shall require--  7,a7 each   
educational institution to submit to the
 ,secretary verification of each        
individual who is enrolled in a course  
or program of education at the          
educational institution and is receiving
 educational assistance under this      
chapter for each month during which the 
individual is so enrolled and receiving 
such educational assistance2 and  7,b7  
each individual who is enrolled in a    
course or program of education and is   
receiving educational assistance under  
this chapter to submit to the ,secretary
 verification of such enrollment for    

each month during which the individual  
is so enrolled and receiving such       
educational assistance4  7#b7           
,verification under this subsection     
shall be in an electronic form          
prescribed by the ,secretary4  7#c7 ,if 
an individual fails to submit the       
verification required under paragraph   
7#a77;,b7 for two consecutive months1   
the ,secretary may not make a monthly   
stipend payment to the individual under 
this section until the individual       
submits such verification4  4  7b7      
,effective date ,the amendment made by  
subsection 7a7 shall take effect on     
,august #a1 #bjbj4  #d4 ,clarification  
regarding the dependents to whom        
entitlement to educational assistance   
may be transferred under the ,post      
#i_/aa ,educational ,assistance ,program
  7a7 ,in general ,section #ccai7;c7 of 
title #ch1 ,united ,states ,code1 is    
amended to read as follows3  7c7        
,eligible dependents  7#a7 ,transfer ,an
 individual approved to transfer an     

entitlement to educational assistance   
under this section may transfer the     
individual's entitlement to an eligible 
dependent or a combination of eligible  
dependents4  7#b7 ,definition of        
eligible dependent ,for purposes of this
 subsection1 the term eligible dependent
 has the meaning given the term         
dependent under paragraph 7#b7 of       
section #ajgb of title #aj4  4  7b7     
,applicability ,the amendment made by   
subsection 7a7 shall apply with respect 
to educational assistance payable under 
chapter #cc of title #ch1 ,united       
,states ,code1 before1 on1 or after the 
date of the enactment of this ,act4  #e4
 ,expansion of reasons for which a      
course of education may be disapproved  
7a7 ,in general ,section #cfgb7;b77#b7  
of title #ch1 ,united ,states ,code1 is 
amended--  7#a7 in subparagraph 7,a77i71
 by inserting or or 7,d7 after          
subparagraph 7,c72 and  7#b7 by adding  
at the end the following new            
subparagraph3  7,d7 ,a program that is  

described in subparagraph 7,a77i7 of    
this paragraph and offered by an        
educational institution that is at risk 
of losing accreditation shall not be    
deemed to be approved for purposes of   
this chapter4 ,for purposes of this     
subparagraph1 an educational institution
 is at risk of losing accreditation if  
that educational institution has        
received from the relevant accrediting  
agency or association a notice described
 in section #cfgc7;e77#b77;,d7 of this  
title4  4  7b7 ,effective date ,the     
amendment made by subsection 7a7 shall  
take effect on the date that is #ahj    
days after the date of the enactment of 
this ,act4  #f4 ,oversight of           
educational institutions subject to     
,government action for purposes of the  
educational assistance programs of the  
,department of ,veterans ,affairs  7a7  
,in general ,section #cfgc of title #ch1
 ,united ,states ,code1 is amended by   
adding at the end the following new     
subsection3  7e7 ,notice of ,government 

action  7#a7 7,a7 ,if the ,secretary    
receives notice under paragraph 7#b71 or
 otherwise becomes aware of an action or
 event described in paragraph 7#c71 with
 respect to an educational institution1 
the ,secretary shall transmit such      
notice or provide notice of such action 
or event to the ,state approving agency 
for the ,state where the educational    
institution is located by not later than
 #cj days after the date on which the   
,secretary receives such notice or      
becomes aware of such action or event4  
,a ,state approving agency shall perform
 a risk-based oversight survey to the   
educational institution by not later    
than #fj days after receiving notice    
under this subparagraph4  7,b7 ,if a    
,state approving agency receives notice 
as described in paragraph 7#b71 or      
otherwise becomes aware of an action or 
event described in paragraph 7#c71 with 
respect to an educational institution1  
the ,state approving agency shall       
perform a risk-based oversight survey to

 the educational institution by not     
later than #fj days after receiving such
 notice or otherwise becoming aware of  
such action or event4  7#b7 ,notice     
under this paragraph is any of the      
following3  7,a7 ,notice from the       
,secretary of ,education of an event    
under paragraph 7#c77;,a74  7,b7 ,notice
 of an event under paragraph 7#c77;,b74 
7,c7 ,notice from a ,state of an action 
take by that ,state under paragraph     
7#c77;,c74  7,d7 ,notice provided by an 
accrediting agency or association of an 
action described in paragraph 7#c77;,d7 
taken by that agency or association4    
7,e7 ,notice that the ,secretary of     
,education has placed the educational   
institution on provisional status4  7#c7
 ,an action or event under this         
paragraph is any of the following3  7,a7
 ,the receipt by an educational         
institution of payments under the       
heightened cash monitoring payment      
method pursuant to section              
#dhg7;c77#a77;,b7 of the ,higher        

,education ,act of #aife 7#bj ,u4,s4,c4 
#ajid74  7,b7 ,final punitive action    
taken by the ,attorney ,general1 the    
,federal ,trade ,commission1 or any     
other ,federal department or agency     
against an educational institution      
relating to misconduct or misleading    
marketing practices1 as defined by the  
,secretary of ,veterans ,affairs4  7,c7 
,final punitive action taken by a ,state
 against an educational institution4    
7,d7 ,the loss1 or risk of loss1 by an  
educational institution of an           
accreditation from an accrediting agency
 or association1 including notice of    
probation1 suspension1 an order to show 
cause1 or revocation of accreditation4  
7,e7 ,the placement of an educational   
institution on provisional status by the
 ,secretary of ,education4  7#d7 ,if a  
,state approving agency disapproves or  
suspends an educational institution1 the
 ,state approving agency shall provide  
notice of such disapproval or suspension
 to the ,secretary and to the other     

,state approving agencies4  7#e7 ,this  
subsection shall be carried out using   
amounts made available pursuant to      
section #cfgd7;a77#d7 of this title as  
long as such amounts remain available4  
4  7b7 ,effective date ,the amendment   
made by subsection 7a7 shall take effect
 on ,august #a1 #bjbj4  #g4 ,additional 
requirement for approval of educational 
institutions for purposes of the        
educational assistance programs of the  
,department of ,veterans ,affairs  7a7  
,in general ,section #cfge of title #ch1
 ,united ,states ,code1 is amended--    
7#a7 in subsection 7b71 by adding at the
 end the following new paragraph3  7#d7 
,the educational institution is approved
 and participates in a program under    
title ,,iv of the ,higher ,education    
,act of #aife 7#bj ,u4,s4,c4 #ajgj et   
seq47 or the ,secretary has waived the  
requirement under this paragraph with   
respect to an educational institution   
and submits to the ,committees on       
,veterans' ,affairs of the ,senate and  

,house of ,representatives notice of    
such waiver4  4  7#b7 by adding at the  
end the following new subsection3  7d7  
,the ,secretary shall submit to         
,congress an annual report on any       
waivers issued pursuant to subsection   
7b77#d7 or section #cfgb7;b77#b77;,a77i7
 of this title4 ,each such report shall 
include1 for the year covered by the    
report-- 7#a7 the name of each          
educational institution for which a     
waiver was issued2  7#b7 the            
justification for each such waiver2 and 
7#c7 the total number of waivers issued4
  4  7b7 ,requirement for approval of   
standard college degree programs ,clause
 7i7 of subparagraph 7,a7 of paragraph  
7#b7 of subsection 7b7 of section #cfgb 
of such title is amended to read as     
follows3  7i7 ,except as provided in    
subparagraph 7,c7 or 7,d71 an accredited
 standard college degree program offered
 at a public or not-for-profit          
proprietary educational institution     
that--  7,i7 is accredited by an agency 

or association recognized for that      
purpose by the ,secretary of ,education2
 and  7,,ii7 is approved and            
participates in a program under title   
,,iv of the ,higher ,education ,act of  
#aife 7#bj ,u4,s4,c4 #ajgj et seq471    
unless the ,secretary has waived the    
requirement to participate in a program 
under title ,,iv of the ,higher         
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajgj et seq474  4  7c7 ,effective date 
,the amendments made by subsections 7a7 
and 7b7 shall take effect on ,august #a1
 #bjbj4  #h4 ,clarification of          
accreditation for law schools for       
purposes of the educational assistance  
programs of the ,department of ,veterans
 ,affairs  7a7 ,in general ,paragraphs  
7#ad77;,b7 and 7#ae77;,b7 of section    
#cfgf7;c7 of title #ch1 ,united ,states 
,code1 are each amended by striking an  
accrediting agency both places it       
appears and inserting a specialized     
accrediting agency4  7b7 ,effective date
 ,the amendments made by subsection 7a7 

shall take effect on ,august #a1 #bjbj4 
#i4 ,clarification of grounds for       
disapproval of a course for purposes of 
the educational assistance programs of  
the ,department of ,veterans ,affairs   
7a7 ,in general ,section #cfgi7;a77#a7  
of title #ch1 ,united ,states ,code1 is 
amended by inserting 7including failure 
to comply with a risk-based survey under
 section #cfgc7;d7 of this title and    
secure an affirmation of approval by the
 appropriate ,state approving agency    
following the survey7 after requirements
 of this chapter4  7b7 ,effective date  
,the amendment made by subsection 7a7   
shall take effect on ,august #a1 #bjbj4 
#aj4 ,requirements for educational      
institutions participating in the       
educational assistance programs of the  
,department of ,veterans ,affairs  7a7  
,in general ,section #cfgi of title #ch1
 ,united ,states ,code1 as amended by   
section #f1 is further amended by adding
 at the end the following new           
subsection3  7f7  7#a7 ,except as       

provided by paragraph 7#e71 a ,state    
approving agency1 or the ,secretary when
 acting in the role of the ,state       
approving agency1 may take an action    
described in paragraph 7#d77;,a7 if the 
,state approving agency or the          
,secretary determines that an           
educational institution does not perform
 any of the following3 7,a7 ,prior to   
the enrollment of a covered individual  
in a course of education at the         
educational institution1 provide the    
individual with a form that contains    
information personalized to the         
individual that describes--  7i7 the    
estimated total cost of the course1     
including tuition1 fees1 books1         
supplies1 and any other additional      
costs2  7ii7 an estimate of the cost for
 living expenses for students enrolled  
in the course2  7iii7 the amount of the 
costs under clauses 7i7 and 7ii7 that   
are covered by the educational          
assistance provided to the individual   
under chapter #cj1 #cb1 #cc1 or #ce of  

this title1 or chapter #afjf or #afjg of
 title #aj1 as the case may be2  7iv7   
the type and amount of ,federal         
financial aid not administered by the   
,secretary and financial aid offered by 
the institution that the individual may 
qualify to receive2  7v7 an estimate of 
the amount of student loan debt the     
individual would have upon graduation2  
7vi7 information regarding graduation   
rates2  7vii7 job-placement rates for   
graduates of the course1 if available2  
7viii7 information regarding the        
acceptance by the institution of        
transfer of credits1 including military 
credits2  7ix7 any conditions or        
additional requirements1 including      
training1 experience1 or examinations1  
required to obtain the license1         
certification1 or approval for which the
 course of education is designed to     
provide preparation2 and  7x7 other     
information to facilitate comparison by 
the individual of aid packages offered  
by different educational institutions4  

7,b7 ,not later than #ae days after the 
date on which the institution 7or the   
governing body of the institution7      
determines tuition rates and fees for an
 academic year that is different than   
the amount being charged by the         
institution1 provide a covered          
individual enrolled in a course of      
education at the educational institution
 with the form under subparagraph 7,a7  
that contains updated information4  7,c7
 ,maintain policies to--  7i7 inform    
each covered individual enrolled in a   
course of education at the educational  
institution of the availability of      
,federal financial aid not administered 
by the ,secretary and financial aid     
offered by the institution2 and  7ii7   
alert such individual of the potential  
eligibility of the individual for such  
financial aid before packaging or       
arranging student loans or alternative  
financing programs for the individual4  
7,d7 ,maintain policies to-- 7i7        
prohibit the automatic renewal of a     

covered individual in courses and       
programs of education2 and  7ii7 ensure 
that each covered individual approves of
 the enrollment of the individual in a  
course4  7,e7 ,provide to a covered     
individual enrolled in a course of      
education at the educational institution
 with information regarding the         
requirements to graduate from such      
course1 including information regarding 
when required classes will be offered   
and a timeline to graduate4  7,f7 ,with 
respect to an accredited educational    
institution1 obtain the approval of the 
accrediting agency for each new course  
or program of the institution before    
enrolling covered individuals in such   
courses or programs if the accrediting  
agency determines that such approval is 
appropriate under the substantive change
 requirements of the accrediting agency 
regarding the quality1 objectives1      
scope1 or control of the institution4   
7,g7 ,maintain a policy that--  7i7     
ensures that members of the ,armed      

,forces1 including the reserve          
components and the ,national ,guard1 who
 enroll in a course of education at the 
educational institution may be          
readmitted at such institution if such  
members are temporarily unavailable or  
have to suspend such enrollment by      
reason of serving in the ,armed ,forces2
 and  7ii7 otherwise accommodates such  
members during short absences by reason 
of such service4  7,h7 ,designate an    
employee of the educational institution 
to serve as a point of contact for      
covered individuals and the family of   
such individuals needing assistance with
 respect to academic counseling1        
financial counseling1 disability        
counseling1 and other information       
regarding completing a course of        
education at such institution1 including
 by referring such individuals and      
family to the appropriate persons for   
such counseling and information4  7#b7  
,except as provided by paragraph 7#e71 a
 ,state approving agency1 or the        

,secretary when acting in the role of   
the ,state approving agency1 may take an
 action described in paragraph 7#d77;,a7
 if the ,state approving agency1 the    
,secretary1 or the ,federal ,trade      
,commission1 determines that an         
educational institution does any of the 
following3  7,a7 ,carries out deceptive 
or persistent recruiting techniques1    
including on military installations1    
that may include-- 7i7 misrepresentation
 7as defined in section                 
#cfif7;e77#b77;,b7 of this title7 or    
payment of incentive compensation2  7ii7
 during any #a-month period making three
 or more unsolicited contacts to a      
covered individual1 including contacts  
by phone1 email1 or in-person2 or  7iii7
 engaging in same-day recruitment and   
registration4  7,b7 ,pays inducements1  
including any gratuity1 favor1 discount1
 entertainment1 hospitality1 loan1      
transportation1 lodging1 meals1 or other
 item having a monetary value of more   
than a de minimis amount1 to any        

individual or entity1 or its agents     
including third party lead generators or
 marketing firms other than salaries    
paid to employees or fees paid to       
contractors in conformity with all      
applicable laws for the purpose of      
securing enrollments of covered         
individuals or obtaining access to      
educational assistance under this title1
 with the exception of scholarships1    
grants1 and tuition reductions provided 
by the educational institution4  7#c7 ,a
 ,state approving agency1 or the        
,secretary when acting in the role of   
the ,state approving agency1 may take an
 action described in paragraph 7#d77;,a7
 if the ,state approving agency or the  
,secretary determines that an           
educational institution is the subject  
of a negative action made by the        
accrediting agency that accredits the   
institution1 including any of the       
following3  7,a7 ,a show cause order4   
7,b7 ,accreditor sanctions4  7,c7       
,accreditation probation4  7,d7 ,the    

loss of accreditation or candidacy for  
accreditation4  7#d7  7,a7 ,an action   
described in this subparagraph is any of
 the following3 7i7 ,publishing a       
warning on the internet website of the  
,department described in section        
#cfih7;c77#b7 of this title1 or such    
other similar internet website of the   
,department1 that describes how an      
educational institution is failing to   
meet a requirement under paragraph 7#a7 
or 7#b74  7ii7 ,prohibiting the pursuit 
by an individual of a course of         
education at an educational institution 
under chapter #cj1 #cb1 #cc1 or #ce of  
this title during the period beginning  
on the date of such prohibition and     
ending on a date specified by the ,state
 approving agency1 in consultation with 
the ,secretary1 or the ,secretary when  
acting in the role of the ,state        
approving agency1 unless the individual 
was enrolled at the institution before  
such period4  7,b7 ,the ,secretary shall
 establish guidelines to ensure that the

 actions described in subparagraph 7,a7 
are applied in a proportional and       
uniform manner by ,state approving      
agencies1 or the ,secretary when acting 
in the role of the ,state approving     
agency4  7#e7  7,a7 ,the ,secretary may 
waive the requirements of paragraph 7#a7
 or waive the requirements of paragraph 
7#b7 with respect to an educational     
institution for a #a-;academic-year     
period beginning in ,august of the year 
in which the waiver is made4 ,a single  
educational institution may not receive 
waivers under this paragraph for more   
than #b consecutive academic years4     
7,b7 ,to be considered for a waiver     
under this paragraph1 an educational    
institution shall submit to the         
,secretary an application prior to the  
first day of the academic year for which
 the waiver is sought4  7#f7 ,on an     
annual basis1 the ,secretary shall      
submit to the ,committees on ,veterans' 
,affairs of the ,house of               
,representatives and the ,senate the    

following reports3 7,a7 ,a report1 which
 shall be made publicly available1 that 
includes the following3  7i7 ,a summary 
of each action described in paragraph   
7#d77;,a7 made during the year covered  
by the report1 including-- 7,i7 the name
 of the educational institution2  7,,ii7
 the type of action taken2  7,,iii7 the 
rationale for the action1 including how 
the educational institution was not in  
compliance with this subsection2  7,,iv7
 the length of time that the educational
 institution was not in such compliance2
 and  7,v7 whether the educational      
institution was also not in compliance  
with this subsection during any of the  
#b years prior to the year covered by   
the report4  7ii7 ,a summary and        
justifications for the waivers made     
under paragraph 7#e7 during the year    
covered by the report1 including the    
total number of waivers each educational
 institution has received4  7,b7 ,a     
report containing the recommendations of
 the ,secretary with respect to any     

legislative actions the ,secretary      
determines appropriate to ensure that   
this subsection is carried out in a     
manner that is consistent with the      
requirements that educational           
institutions must meet for purposes of  
other departments or agencies of the    
,federal ,government4  7#g7 ,in this    
subsection1 the term covered individual 
means an individual who is pursuing a   
course of education at an educational   
institution under chapter #cj1 #cb1 #cc1
 or #ce of this title4  4  7b7          
,application date ,the amendment made by
 this section shall take effect on ,june
 #ae1 #bjbj1 and shall apply to an      
educational institution beginning on    
,august #a1 #bjbj1 except that an       
educational institution may submit an   
application for a waiver under          
subsection 7f77#e7 of section #cfgi of  
title #ch1 ,united ,states ,code1 as    
added by subsection 7a71 beginning on   
,june #ae1 #bjbj4  #aa4 ,overpayments to
 eligible persons or veterans           

,subsection 7b7 of section #cfhe of     
title #ch1 ,united ,states ,code1 is    
amended to read as follows3  7b7 ,any   
overpayment by an educational           
institution to a veteran or eligible    
person shall constitute a liability of  
the educational institution to the      
,united ,states if--  7#a7 the          
,secretary finds that the overpayment   
has been made as the result of-- 7,a7   
the willful or negligent failure of an  
educational institution to report1 as   
required under this chapter or chapter  
#cd or #ce of this title1 to the        
,department of ,veterans ,affairs       
excessive absences from a course1 or    
discontinuance or interruption of a     
course by the veteran or eligible       
person2 or  7,b7 the willful or         
negligent false certification by an     
educational institution2 or  7#b7 the   
payment is made pursuant to--  7,a7     
section #ccac7;h7 of this title2  7,b7  
section #ccag of this title2 or  7,c7   
section #cfhj7;d7 of this title4  4     

#ab4 ,improvements to limitation on     
certain advertising1 sales1 and         
enrollment practices  7a7 ,substantial  
misrepresentation  7#a7 ,in general     
,subsection 7a7 of section #cfif of     
title #ch1 ,united ,states ,code1 is    
amended to read as follows3  7a7 ,the   
,secretary1 or a ,state approving agency
 acting in the role of the ,secretary1  
shall not approve the enrollment of an  
eligible veteran or eligible person in  
any course offered by an institution1 or
 by an entity that owns the institution1
 engaged in substantial                 
misrepresentation described in          
subsection 7e77#a74  4  7#b7            
,definitions ,such section is further   
amended by adding at the end the        
following new subsection3  7e7  7#a7    
,substantial misrepresentation described
 in this paragraph is substantial       
misrepresentation by an educational     
institution1 a representative of the    
institution1 or any person with whom the
 institution has an agreement to provide

 educational programs1 marketing1       
advertising1 recruiting or admissions   
services1 concerning any of the         
following3 7,a7 ,the nature of the      
educational program of the institution1 
including misrepresentation regarding-- 
7i7 the particular type1 specific       
source1 or nature and extent1 of the    
accreditation of the institution or a   
course of education at the institution2 
7ii7 whether a student may transfer     
course credits to another institution2  
7iii7 conditions under which the        
institution will accept transfer credits
 earned at another institution2  7iv7   
whether successful completion of a      
course of instruction qualifies a       
student--  7,i7 for acceptance to a     
labor union or similar organization2 or 
7,,ii7 to receive1 to apply to take1 or 
to take an examination required to      
receive a local1 ,state1 or ,federal    
license1 or a nongovernmental           
certification required as a precondition
 for employment1 or to perform certain  

functions in the ,states in which the   
educational program is offered1 or to   
meet additional conditions that the     
institution knows or reasonably should  
know are generally needed to secure     
employment in a recognized occupation   
for which the program is represented to 
prepare students2  7v7 the requirements 
for successfully completing the course  
of study or program and the             
circumstances that would constitute     
grounds for terminating the student's   
enrollment2  7vi7 whether the courses of
 education at the institution are       
recommended or have been the subject of 
unsolicited testimonials or endorsements
 by--  7,i7 vocational counselors1 high 
schools1 colleges1 educational          
organizations1 employment agencies1     
members of a particular industry1       
students1 former students1 or others2 or
  7,,ii7 officials of a local or ,state 
government or the ,federal ,government2 
7vii7 the size1 location1 facilities1 or
 equipment of the institution2  7viii7  

the availability1 frequency1 and        
appropriateness of the courses of       
education and programs to the employment
 objectives that the institution states 
the courses and programs are designed to
 meet2  7ix7 the nature1 age1 and       
availability of the training devices or 
equipment of the institution and the    
appropriateness to the employment       
objectives that the institution states  
the courses and programs are designed to
 meet2  7x7 the number1 availability1   
and qualifications1 including the       
training and experience1 of the faculty 
and other personnel of the institution2 
7xi7 the availability of part-time      
employment or other forms of financial  
assistance2  7xii7 the nature and       
availability of any tutorial or         
specialized instruction1 guidance and   
counseling1 or other supplementary      
assistance the institution ill provide  
students before1 during1 or after the   
completion of a course of education2    
7xiii7 the nature or extent of any      

prerequisites established for enrollment
 in any course of education2  7xiv7 the 
subject matter1 content of the course of
 education1 or any other fact related to
 the degree1 diploma1 certificate of    
completion1 or any similar document that
 the student is to be1 or is1 awarded   
upon completion of the course of        
education2 and  7xv7 whether the degree 
that the institution will confer upon   
completion of the course of education   
has been authorized by the appropriate  
,state educational agency1 including    
with respect to cases where the         
institution fails to disclose facts     
regarding the lack of such authorization
 in any advertising or promotional      
materials that reference such degree4   
7,b7 ,the financial charges of the      
institution1 including misrepresentation
 regarding--  7i7 offers of scholarships
 to pay all or part of a course charge2 
7ii7 whether a particular charge is the 
customary charge at the institution for 
a course2  7iii7 the cost of the program

 and the refund policy of the           
institution if the student does not     
complete the program2  7iv7 the         
availability or nature of any financial 
assistance offered to students1         
including a student's responsibility to 
repay any loans1 regardless of whether  
the student is successful in completing 
the program and obtaining employment2   
and  7v7 the student's right to reject  
any particular type of financial aid or 
other assistance1 or whether the student
 must apply for a particular type of    
financial aid1 such as financing offered
 by the institution4  7,c7 ,the         
employability of the graduates of the   
institution1 including misrepresentation
 regarding--  7i7 the relationship of   
the institution with any organization1  
employment agency1 or other agency      
providing authorized training leading   
directly to employment2  7ii7 the plans 
of the institution to maintain a        
placement service for graduates or      
otherwise assist graduates to obtain    

employment2  7iii7 the knowledge of the 
institution about the current or likely 
future conditions1 compensation1 or     
employment opportunities in the industry
 or occupation for which the students   
are being prepared2  7iv7 job market    
statistics maintained by the ,federal   
,government in relation to the potential
 placement of the graduates of the      
institution2 and  7v7 other requirements
 that are generally needed to be        
employed in the fields for which the    
training is provided1 such as           
requirements related to commercial      
driving licenses or permits to carry    
firearms1 and failing to disclose       
factors that would prevent an applicant 
from qualifying for such requirements1  
such as prior criminal records or       
preexisting medical conditions4  7#b7   
,in this subsection3  7,a7 ,the term    
misleading statement includes any       
communication1 action1 omission1 or     
intimation made in writing1 visually1   
orally1 or through other means1 that has

 the likelihood or tendency to mislead  
the intended recipient of the           
communication under the circumstances in
 which the communication is made4 ,such 
term includes the use of student        
endorsements or testimonials for an     
educational institution that a student  
gives to the institution either under   
duress or because the institution       
required the student to make such an    
endorsement or testimonial to           
participate in a program of education4  
7,b7 ,the term misrepresentation means  
any false1 erroneous1 or misleading     
statement1 action1 omission1 or         
intimation made directly or indirectly  
to a student1 a prospective student1 the
 public1 an accrediting agency1 a ,state
 agency1 or to the ,secretary by an     
eligible institution1 one of its        
representatives1 or any person with whom
 the institution has an agreement to    
provide educational programs1 marketing1
 advertising1 recruiting or admissions  
services4  7,c7 ,the term substantial   

misrepresentation means                 
misrepresentation in which the person to
 whom it was made could reasonably be   
expected to rely1 or has reasonably     
relied1 to that person's detriment4  4  
7b7 ,referral ,subsection 7c7 of such   
section is amended by striking the last 
sentence and inserting the following3   
,the findings and results of any such   
investigations shall be referred to the 
,state approving agency1 or the         
,secretary when acting in the role of   
the ,state approving agency1 who shall  
take appropriate action in such cases   
not later than #fj days after the date  
of such referral44  7c7 ,requirements   
for nonaccredited courses ,paragraph    
7#aj7 of section #cfgf7;c7 of such title
 is amended to read as follows3  7#aj7  
,the institution1 and any entity that   
owns the institution1 does not engage in
 substantial misrepresentation described
 in section #cfif7;e7 of this title4    
,the institution shall not be deemed to 
have met this requirement until the     

,state approving agency--  7,a7 has     
ascertained that no ,federal department 
or agency has taken a punitive action1  
not including a settlement agreement1   
against the school for misleading or    
deceptive practices2  7,b7 has1 if such 
an order has been issued1 given due     
weight to that fact2 and  7,c7 has      
reviewed the complete record of         
advertising1 sales1 or enrollment       
materials 7and copies thereof7 used by  
or on behalf of the institution during  
the preceding #ab-month period4  4  7d7 
,application date ,the amendments made  
by this section shall apply to an       
educational institution beginning on    
,august #a1 #bjbj4  #ac4 ,additional    
limitation on certain advertising1      
sales1 and enrollment practices of      
educational institutions  7a7 ,in       
general ,section #cfif7;a7 of title #ch1
 ,united ,states ,code1 as amended by   
section #aa1 is further amended-- 7#a7  
by inserting 7#a7 before ,the           
,secretary2 and  7#b7 by adding at the  

end the following new paragraph3  7#b7  
,not later than #abj days after a ,state
 or ,federal department or agency takes 
final punitive action against an        
educational institution relating to     
practices described in paragraph 7#a71  
the ,secretary or the relevant ,state   
approving agency may--  7,a7 take an    
action described in subsection          
7f77#d77;,a7 of section #cfgi of this   
title2 or  7,b7 disapprove under such   
section each course offered by that     
educational institution4  4  7b7        
,effective date ,the amendment made by  
subsection 7a7 shall take effect on     
,august #a1 #bjbj4  #ad4 ,charge to     
entitlement to educational assistance   
for individuals who do not transfer     
credits from certain closed or          
disapproved programs of education  7a7  
,in general ,subsection 7c7 of section  
#cfii of title #ch1 ,united ,states     
,code1 is amended to read as follows3   
7c7 ,period not charged  7#a7 ,the      
period for which1 by reason of this     

subsection1 educational assistance is   
not charged against entitlement or      
counted toward the applicable aggregate 
period under section #cfie of this title
 shall not exceed the aggregate of--    
7,a7 the portion of the period of       
enrollment in the course from which the 
individual did not receive credit or    
with respect to which the individual    
lost training time1 as determined under 
subsection 7b77#b72 and  7,b7 the period
 by which a monthly stipend is extended 
under section #cfhj7;a77#b77;,b7 of this
 title4  7#b7 7,a7 ,an individual       
described in subparagraph 7,b7 who      
transfers fewer than #ab credits from a 
program of education that is closed or  
disapproved as described in subsection  
7b77#a7 shall be deemed to be an        
individual who did not receive such     
credits1 as described in subsection     
7b77#b71 except that the period for     
which such individual's entitlement is  
not charged shall be the entire period  
of the individual's enrollment in the   

program of education4 ,in carrying out  
this subparagraph1 the ,secretary1 in   
consultation with the ,secretary of     
,education1 shall establish procedures  
to determine whether the individual     
transferred credits to a comparable     
course or program of education4  7,b7   
,an individual described in this        
subparagraph is an individual who is    
enrolled in a course or program of      
education closed or discontinued as     
described in subsection 7b77#a7 during  
the period beginning on the date that is
 #abj days before the date of such      
closure or discontinuance and ending on 
the date of such closure or             
discontinuance1 as the case may be4     
7,c7 ,this paragraph shall apply with   
respect to a course or program of       
education closed or discontinued before 
,september #cj1 #bjbc4  4  7b7          
,effective date ,the amendment made by  
subsection 7a7 shall take effect on     
,august #a1 #bjbj4  #ae4 ,determination 
of budgetary effects ,the budgetary     

effects of this ,act1 for the purpose of
 complying with the ,statutory          
,pay-,as-,you-,go ,act of #bjaj1 shall  
be determined by reference to the latest
 statement titled ,budgetary ,effects of
 ,,paygo ,legislation for this ,act1    
submitted for printing in the           
,congressional ,record by the ,chairman 
of the ,house ,budget ,committee1       
provided that such statement has been   
submitted prior to the vote on passage4 
,passed the ,house of ,representatives  
,november #ab1 #bjai4;,clerk4