1. (a) Closure or Disapproval.— Any payment of educational assistance described in subsection (b) shall not—

   1. (1) be charged against any entitlement to educational assistance of the individual concerned; or
   2. (2) be counted against the aggregate period for which section 3695 of this title limits the receipt of educational assistance by such individual.

2. (b) Educational Assistance Described.— Subject to subsection (c), the payment of educational assistance described in this paragraph ¹ is the payment of such assistance to an individual for pursuit of a course or program of education at an educational institution under chapter 30, 32, 33, or 35 of this title, or chapter 1606 or 1607 of title 10, if the Secretary determines that the individual—

   1. (1) was unable to complete such course or program as a result of—

      1. (A) the closure of the educational institution; or

      2. (B) the disapproval of the course or a course that is a necessary part of that program under this chapter by reason of—

         1. (i) a provision of law enacted after the date on which the individual enrolls at such institution affecting the approval or disapproval of courses under this chapter; or
         2. (ii) after the date on which the individual enrolls at such institution, the Secretary prescribing or modifying regulations or policies of the Department affecting such approval or disapproval; and
   2. (2) did not receive credit or lost training time, toward completion of the program of education being so pursued.

3. (c) Period Not Charged.— The period for which, by reason of this subsection, educational assistance is not charged against entitlement or counted toward the applicable aggregate period under section 3695 of this title shall not exceed the aggregate of—

   1. (1) 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 time, as determined under subsection (b)(2); and
   2. (2) the period by which a monthly stipend is extended under section 3680(a)(2)(B) of this title.

4. (d) Continuing Pursuit of Disapproved Courses.—

   1. (1) The Secretary may treat a course of education that is disapproved under this chapter as being approved under this chapter with respect to an individual described in paragraph (2) if the Secretary determines, on a case-by-case basis, that—

      1. (A) such disapproval is the result of an action described in clause (i) or (ii) of subsection (b)(1)(B); and
      2. (B) continuing pursuing such course is in the best interest of the individual.
   2. (2) An individual described in this paragraph is an individual who is pursuing a course of education at an educational institution under chapter 30, 32, 33, or 35 of this title, or chapter 1606 or 1607 of title 10, as of the date on which the course is disapproved under this chapter.

5. (e) Notice of Closures.— Not later than 5 business days after the date on which the Secretary receives notice that an educational institution will close or is closed, the Secretary shall provide to each individual who is enrolled in a course or program or education at such educational institution using entitlement to educational assistance under chapter 30, 32, 33, or 35 of this title, or chapter 1606 or 1607 of title 10, notice of—

   1. (1) such closure and the date of such closure; and
   2. (2) the effect of such closure on the individual’s entitlement to educational assistance pursuant to this section.

(Added Pub. L. 115–48, title I, § 109(a)(1), Aug. 16, 2017, 131 Stat. 978.)

Prior Provisions

A prior section 3699, added Pub. L. 93–508, title III, § 301(a), Dec. 3, 1974, 88 Stat. 1591, § 1799; amended Pub. L. 94–502, title V, § 513(a)(24), Oct. 15, 1976, 90 Stat. 2404; Pub. L. 97–295, § 4(61), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 101–237, title IV, § 423(b)(1), (2), Dec. 18, 1989, 103 Stat. 2092; renumbered § 3699 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406, related to revolving fund available for making of loans under former subchapter III of this chapter, prior to repeal by Pub. L. 108–183, title III, § 306(e), Dec. 16, 2003, 117 Stat. 2661, effective 90 days after Dec. 16, 2003.

Effective Date

Pub. L. 115–48, title I, § 109(c)(1), Aug. 16, 2017, 131 Stat. 980, provided that:

1. “(A) In general.— The amendments made by subsection (a) [enacting this section] shall take effect on the date that is 90 days after the date of the enactment of this Act [Aug. 16, 2017], and shall apply with respect to courses and programs of education discontinued as described in section 3699 of title 38, United States Code, as added by subsection (a)(1), after January 1, 2015.
2. “(B) Special application.— With respect to courses and programs of education discontinued as described in section 3699 of title 38, United States Code, as added by subsection (a)(1), during the period beginning January 1, 2015, and ending on the date of the enactment of this Act, an individual who does not transfer credits from such program of education shall be deemed to be an individual who did not receive such credits, as described in subsection (b)(2) of such section, except that the period for which the individual’s entitlement is not charged shall be the entire period of the individual’s enrollment in the program of education. In carrying out this paragraph, the Secretary of Veterans Affairs, in consultation with the Secretary of Education, shall establish procedures to determine whether the individual transferred credits to a comparable course or program of education.”

¹ So in original. Probably should be “subsection”.