Veterans and Service Members Educational Benefits Safety Act

Veterans and Service Members Educational Benefits Safety Act - Makes institutions of higher education that have a cohort default rate equal to or greater than 30% for each of the three most recent fiscal years ineligible to participate in military and veterans' educational assistance programs. (The cohort default rate represents the percentage of a school's current and former students who begin to repay Federal Family Education Loans [FFELs] in a fiscal year, but default on those loans before the end of the second fiscal year following the fiscal year they began repaying them.)

Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require proprietary institutions of higher education to derive not less than 10% of their revenue from sources other than veterans' education benefits or, as under current law, title IV, or become ineligible for title IV funding (90/10 rule).

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5836 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 5836

To prohibit institutions of higher education that have a cohort default 
rate of 30 percent or more from receiving veterans' education benefits, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 18, 2012

 Mr. Boswell introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
Committees on Armed Services and Veterans' Affairs, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To prohibit institutions of higher education that have a cohort default 
rate of 30 percent or more from receiving veterans' education benefits, 
                        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. SHORT TITLE.

    This Act may be cited as the ``Veterans and Service Members 
Educational Benefits Safety Act''.

SEC. 2. EDUCATIONAL ASSISTANCE PROVIDED BY SECRETARY OF DEFENSE AND 
              SECRETARY OF VETERANS AFFAIRS.

    (a) Assistance Provided by Secretary of Defense.--Section 2143(c) 
of title 10, United States Code, is amended by inserting after 
``level'' the following: ``, that is an eligible institution under 
section 435(a) of the Higher Education Act of 1965 (20 U.S.C. 
1085(a)),''.
    (b) Assistance Provided by Secretary of Veterans Affairs.--
            (1) In general.--Chapter 36 of title 38, United States 
        Code, is amended by inserting after section 3680A the following 
        new section:
``Sec. 3680B. Disapproval of enrollment in courses offered by 
              institutions with high default rates
    ``For purposes of providing educational assistance under this 
title, the Secretary may not approve the enrollment of an eligible 
veteran in any course offered by an institution that--
            ``(1) is an institution of higher education under section 
        101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001); 
        and
            ``(2) is not an eligible institution under section 435(a) 
        of such Act (20 U.S.C. 1085(a)).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding after the item 
        relating to section 3680A the following new item:

``3680B. Disapproval of enrollment in courses offered by institutions 
                            with high default rates.''.

SEC. 3. REVISION OF 90-10 RULE.

    Section 487(a)(24) of the Higher Education Act of 1965 (20 U.S.C. 
1094(a)(24)) is amended by inserting after ``other than'' the 
following: ``veterans' education benefits (as defined in section 
480(c)) or''.
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