Title 38 — Veterans' BenefitsRelease 119-73
§3690 Overcharges by educational institutions; discontinuance of allowances; examination of records; false or misleading statements
Title 38 › Part PART III— - READJUSTMENT AND RELATED BENEFITS › Chapter CHAPTER 36— - ADMINISTRATION OF EDUCATIONAL BENEFITS › Subchapter SUBCHAPTER III— - MISCELLANEOUS PROVISIONS › § 3690
Summary
The Secretary can stop or refuse GI Bill and other VA education payments if a school charges veterans more than students in the same class who do not get VA help, or if a school starts a practice after October 24, 1972 that effectively blocks veterans from getting advance allowances. The Secretary can also cut off payments if a course or school does not meet the rules in this law or in chapters 31, 32, 34, or 35, or if the school breaks those rules. Before cutting off money, the Secretary must have evidence that the veteran was not entitled to the benefits. When payments are stopped, the Secretary must give written notice and tell the veteran they can get the reasons and a chance to be heard. The Secretary may suspend payments or stop new enrollments if many veterans are getting benefits for a course they should not because the course approval rules are not met or the school failed to keep or report required records. The Secretary must first tell the State approving agency and the school, give the school 60 days (or longer if reasonable) to fix the problem, and give enrolled veterans at least 30 days written notice of the planned action unless the school corrects things in time. The Secretary’s authorized agents may examine school records about students who got VA education help, except for records of foreign schools or records about people who did not get help under this chapter. If a school knowingly submits a false or misleading claim, or helps a veteran do so, the Secretary must report the facts to the State approving agency and, when appropriate, to the Attorney General.
Full Legal Text
Title 38, §3690
Veterans' Benefits — Source: USLM XML via OLRC
(a)If the Secretary finds that an educational institution has—
(1)charged or received from any eligible veteran or eligible person pursuing a program of education under this chapter or chapter 34 or 35 of this title any amount for any course in excess of the charges for tuition and fees which such institution requires similarly circumstanced nonveterans not receiving assistance under such chapters who are enrolled in the same course to pay, or
(2)instituted, after October 24, 1972, a policy or practice with respect to the payment of tuition, fees, or other charges in the case of eligible veterans and the Secretary finds that the effect of such policy or practice substantially denies to veterans the benefits of the advance allowances under such section,
(b)(1)The Secretary may discontinue the educational assistance allowance of any eligible veteran or eligible person if the Secretary finds that the program of education or any course in which the veteran or person is enrolled fails to meet any of the requirements of this chapter or chapter 34 or 35 of this title, or if the Secretary finds that the educational institution offering such program or course has violated any provision of this chapter or chapter 34 or 35 of this title, or fails to meet any of the requirements of such chapters.
(2)Except as provided in paragraph (3) of this subsection, any action by the Secretary under paragraph (1) of this subsection to discontinue (including to suspend) assistance provided to any eligible veteran or eligible person under this chapter or chapter 31, 32, 34, or 35 of this title shall be based upon evidence that the veteran or eligible person is not or was not entitled to such assistance. Whenever the Secretary so discontinues any such assistance, the Secretary shall concurrently provide written notice to such veteran or person of such discontinuance and that such veteran or person is entitled thereafter to a statement of the reasons for such action and an opportunity to be heard thereon.
(3)(A)The Secretary may suspend educational assistance to eligible veterans and eligible persons already enrolled, and may disapprove the enrollment or reenrollment of any eligible veteran or eligible person, in any course as to which the Secretary has evidence showing a substantial pattern of eligible veterans or eligible persons, or both, who are receiving such assistance by virtue of their enrollment in such course but who are not entitled to such assistance because (i) the course approval requirements of this chapter are not being met, or (ii) the educational institution offering such course has violated one or more of the recordkeeping or reporting requirements of this chapter or chapter 30, 32, 33, 34, or 35 of this title.
(B)Action may be taken under subparagraph (A) of this paragraph only after—
(i)the Secretary provides to the State approving agency concerned and the educational institution concerned written notice of any such failure to meet such approval requirements and any such violation of such recordkeeping or reporting requirements;
(ii)such institution refuses to take corrective action or does not within 60 days after such notice (or within such longer period as the Secretary determines is reasonable and appropriate) take corrective action; and
(iii)the Secretary, not less than 30 days before taking action under such subparagraph, provides to each eligible veteran and eligible person already enrolled in such course written notice of the Secretary’s intent to take such action (and the reasons therefor) unless such corrective action is taken within such 60 days (or within such longer period as the Secretary has determined is reasonable and appropriate), and of the date on which the Secretary intends to take action under such subparagraph.
(c)(1)Except as provided in paragraph (2), notwithstanding any other provision of law, the records and accounts of educational institutions pertaining to eligible veterans or eligible persons who received educational assistance under this chapter or chapter 31, 32, 34, or 35 of this title, as well as the records of other students which the Secretary determines necessary to ascertain institutional compliance with the requirements of such chapters, shall be available for examination by duly authorized representatives of the Government.
(2)Paragraph (1) does not apply to the records and accounts—
(A)of an educational institution located in a foreign country; and
(B)that pertain to an individual who is not receiving educational assistance under this chapter.
(d)Whenever the Secretary finds that an educational institution has willfully submitted a false or misleading claim, or that a veteran or person, with the complicity of an educational institution, has submitted such a claim, the Secretary shall make a complete report of the facts of the case to the appropriate State approving agency and, where deemed advisable, to the Attorney General of the United States for appropriate action.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Prior Provisions
Provisions similar to those comprising subsec. (a) were contained in former section 1685, as added by Pub. L. 89–358, § 2, Mar. 3, 1966, 80 Stat. 19, § 1684; renumbered Pub. L. 90–77, title III, § 304(a), Aug. 31, 1967, 81 Stat. 186, and former section 1734, Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1199; Pub. L. 89–358, § 4(m), Mar. 3, 1966, 80 Stat. 25; provisions similar to those comprising subsec. (b) were contained in former section 1687, as added by Pub. L. 89–358, § 2, Mar. 3, 1966, 80 Stat. 19, § 1686; renumbered Pub. L. 90–77, title III, § 304(a), Aug. 31, 1967, 81 Stat. 186; and former section 1736, Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1199; Pub. L. 88–126, § 2, Sept. 23, 1963, 77 Stat. 162; Pub. L. 89–358, § 4(o), Mar. 3, 1966, 80 Stat. 25; provisions similar to those comprising subsec. (c) were contained in former section 1786, as added by Pub. L. 89–358, § 3(b), Mar. 3, 1966, 80 Stat. 23; and provisions similar to those comprising subsec. (d) were contained in former section 1787, as added by Pub. L. 89–358, § 3(b), Mar. 3, 1966, 80 Stat. 23; prior to the general revision by Pub. L. 92–540.
Amendments
2021—Subsec. (c). Pub. L. 117–76 designated existing provisions as par. (1), substituted “Except as provided in paragraph (2), notwithstanding” for “Notwithstanding”, and added par. (2). 2008—Subsec. (b)(3)(A). Pub. L. 110–252 inserted “33,” after “32,”. 2006—Pub. L. 109–233 revised style of subsec. headings. 1991—Pub. L. 102–83 renumbered section 1790 of this title as this section. Subsec. (b). Pub. L. 102–86 made technical amendment to directory language of Pub. L. 101–237, § 423(b)(2). See 1989 Amendment note below. 1989—Subsec. (a). Pub. L. 101–237, § 423(a)(9)(A), (b)(1)(A), substituted “Secretary” for “Administrator” wherever appearing and struck out “and prepayment” after “advance” in par. (2). Subsec. (b). Pub. L. 101–237, § 423(a)(9)(B), (C), (b)(1)(A), substituted “Secretary” for “Administrator” wherever appearing, inserted “30,” before “32” in par. (3)(A), and in par. (3)(B) substituted “(B)” for “(B)(i)” and redesignated subcls. (I), (II), and (III) as cls. (i), (ii), and (iii), respectively. Pub. L. 101–237, § 423(b)(2), as amended by Pub. L. 102–86, substituted “Secretary’s” for “Administrator’s” in par. (3)(B)(iii). Subsecs. (c), (d). Pub. L. 101–237, § 423(b)(1)(A), substituted “Secretary” for “Administrator” wherever appearing. 1982—Subsec. (a). Pub. L. 97–295, § 4(59)(A), substituted “after October 24, 1972” for “after the
Effective Date
of section 1780 of this title” in par. (2), and struck out the comma after “or 35” in provisions following par. (2). Subsec. (b)(1). Pub. L. 97–295, § 4(59)(B), inserted “of this title” after “provision of this chapter or chapter 34 or 35”. Subsec. (b)(2). Pub. L. 97–306, § 207(1), substituted “Except as provided in paragraph (3) of this subsection, any” for “Any”. Subsec. (b)(3). Pub. L. 97–306, § 207(2), added par. (3). 1980—Subsec. (b)(2). Pub. L. 96–466 substituted “for” for “therefor”. 1977—Subsec. (b). Pub. L. 95–202 designated existing provisions as par. (1) and added par. (2). 1976—Subsec. (a). Pub. L. 94–502, § 513(a)(19), substituted “the Administrator may disapprove” for “he may disapprove”. Subsec. (b). Pub. L. 94–502, § 513(a)(19), substituted “if the Administrator finds” for “if he finds” in two places. Subsec. (c). Pub. L. 94–502, § 510, substituted “chapter 31, 32, 34, or 35” for “chapter 31, 34, or 35” and required the records of other students which the Administrator determines necessary to ascertain institutional compliance to be available for inspection. Subsec. (d). Pub. L. 94–502, § 513(a)(19), substituted “the Administrator shall make” for “he shall make”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2008 AmendmentAmendment by Pub. L. 110–252 effective Aug. 1, 2009, see section 5003(d) of Pub. L. 110–252, set out as a note under section 16163 of Title 10, Armed Forces.
Effective Date
of 1991 Amendment Pub. L. 102–86, title V, § 506(b), Aug. 14, 1991, 105 Stat. 426, provided that the amendment made by section 506(b)(1) is effective as of Dec. 18, 1989.
Effective Date
of 1980 AmendmentAmendment by Pub. L. 96–466 effective Oct. 1, 1980, see section 802(h) of Pub. L. 96–466, set out as a note under section 3452 of this title.
Effective Date
of 1977 AmendmentAmendment by Pub. L. 95–202 effective Nov. 23, 1977, see section 501 of Pub. L. 95–202, set out as a note under section 101 of this title.
Effective Date
of 1976 AmendmentAmendment by Pub. L. 94–502 effective Oct. 15, 1976, see section 703(b) of Pub. L. 94–502, set out as an
Effective Date
note under section 3693 of this title.
Reference
Citations & Metadata
Citation
38 U.S.C. § 3690
Title 38 — Veterans' Benefits
Last Updated
Apr 6, 2026
Release point: 119-73