US Code

Public Law 119-73 (01/23/2026)

38 U.S.C. § 3690

Overcharges by educational institutions; discontinuance of allowances; examination of records; false or misleading statements

(a)

Overcharges by Educational Institutions .—

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 , 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,
the Secretary may disapprove such educational institution for the enrollment of any eligible veteran or eligible person not already enrolled therein under this chapter or chapter 31, 34, or 35 of this title.
(b)

Discontinuance of Allowances .—

(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)

Examination of Records .—

(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)

False or Misleading Statements .—

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.

Pub. L. 92–540, title III, § 316(2)86 Stat. 1088Pub. L. 94–502, title V90 Stat. 2401Pub. L. 95–202, title III, § 30691 Stat. 1445Pub. L. 96–466, title VIII, § 801(f)94 Stat. 2216Pub. L. 97–295, § 4(59)96 Stat. 1309Pub. L. 97–306, title II, § 20796 Stat. 1435Pub. L. 101–237, title IV, § 423(a)(9)103 Stat. 2092Pub. L. 102–83, § 5(a)105 Stat. 406Pub. L. 102–86, title V, § 506(b)(1)105 Stat. 426Pub. L. 109–233, title V, § 503(8)(A)120 Stat. 416Pub. L. 110–252, title V, § 5003(b)(2)(A)(iv)122 Stat. 2375Pub. L. 117–76, § 3(c)(2)135 Stat. 1519(Added , , , § 1790; amended , §§ 510, 513(a)(19), , , 2403; , , ; , , ; , , ; , , ; , (b)(1)(A), (2), , ; renumbered § 3690, , , ; , , ; , , ; , , ; , , .)

Editorial Notes

Prior Provisions

Pub. L. 89–358, § 280 Stat. 19Pub. L. 90–77, title III, § 304(a)81 Stat. 186Pub. L. 85–85772 Stat. 1199Pub. L. 89–358, § 4(m)80 Stat. 25Pub. L. 89–358, § 280 Stat. 19Pub. L. 90–77, title III, § 304(a)81 Stat. 186Pub. L. 85–85772 Stat. 1199Pub. L. 88–126, § 277 Stat. 162Pub. L. 89–358, § 4o80 Stat. 25Pub. L. 89–358, § 3(b)80 Stat. 23Pub. L. 89–358, § 3(b)80 Stat. 23Pub. L. 92–540Provisions similar to those comprising subsec. (a) were contained in former section 1685, as added by , , , § 1684; renumbered , , , and former section 1734, , , ; , , ; provisions similar to those comprising subsec. (b) were contained in former section 1687, as added by , , , § 1686; renumbered , , ; and former section 1736, , , ; , , ; (), , ; provisions similar to those comprising subsec. (c) were contained in former section 1786, as added by , , ; and provisions similar to those comprising subsec. (d) were contained in former section 1787, as added by , , ; prior to the general revision by .

Amendments

Pub. L. 117–762021—Subsec. (c). designated existing provisions as par. (1), substituted “Except as provided in paragraph (2), notwithstanding” for “Notwithstanding”, and added par. (2).

Pub. L. 110–2522008—Subsec. (b)(3)(A). inserted “33,” after “32,”.

Pub. L. 109–2332006— revised style of subsec. headings.

Pub. L. 102–83section 1790 of this title1991— renumbered as this section.

Pub. L. 102–86Pub. L. 101–237, § 423(b)(2)Subsec. (b). made technical amendment to directory language of . See 1989 Amendment note below.

Pub. L. 101–237, § 423(a)(9)(A)1989—Subsec. (a). , (b)(1)(A), substituted “Secretary” for “Administrator” wherever appearing and struck out “and prepayment” after “advance” in par. (2).

Pub. L. 101–237, § 423(a)(9)(B)Subsec. (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)Pub. L. 102–86, as amended by , substituted “Secretary’s” for “Administrator’s” in par. (3)(B)(iii).

Pub. L. 101–237, § 423(b)(1)(A)Subsecs. (c), (d). , substituted “Secretary” for “Administrator” wherever appearing.

Pub. L. 97–295, § 4(59)(A)section 1780 of this title1982—Subsec. (a). , substituted “after ” for “after the effective date of ” in par. (2), and struck out the comma after “or 35” in provisions following par. (2).

Pub. L. 97–295, § 4(59)(B)Subsec. (b)(1). , inserted “of this title” after “provision of this chapter or chapter 34 or 35”.

Pub. L. 97–306, § 207(1)Subsec. (b)(2). , substituted “Except as provided in paragraph (3) of this subsection, any” for “Any”.

Pub. L. 97–306, § 207(2)Subsec. (b)(3). , added par. (3).

Pub. L. 96–4661980—Subsec. (b)(2). substituted “for” for “therefor”.

Pub. L. 95–2021977—Subsec. (b). designated existing provisions as par. (1) and added par. (2).

Pub. L. 94–502, § 513(a)(19)1976—Subsec. (a). , substituted “the Administrator may disapprove” for “he may disapprove”.

Pub. L. 94–502, § 513(a)(19)Subsec. (b). , substituted “if the Administrator finds” for “if he finds” in two places.

Pub. L. 94–502, § 510Subsec. (c). , 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.

Pub. L. 94–502, § 513(a)(19)Subsec. (d). , substituted “the Administrator shall make” for “he shall make”.

Statutory Notes and Related Subsidiaries

Effective Date of 2008 Amendment

Pub. L. 110–252section 5003(d) of Pub. L. 110–252section 16163 of Title 10Amendment by effective , see , set out as a note under , Armed Forces.

Effective Date of 1991 Amendment

Pub. L. 102–86, title V, § 506(b)105 Stat. 426, , , provided that the amendment made by section 506(b)(1) is effective as of .

Effective Date of 1980 Amendment

Pub. L. 96–466section 802(h) of Pub. L. 96–466section 3452 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1977 Amendment

Pub. L. 95–202section 501 of Pub. L. 95–202section 101 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1976 Amendment

Pub. L. 94–502section 703(b) of Pub. L. 94–502section 3693 of this titleAmendment by effective , see , set out as an Effective Date note under .