---
kind: "section"
citation: "38 U.S.C. § 3690"
title: "38"
title_heading: "Veterans’ Benefits"
number: "3690"
heading: "Overcharges by educational institutions; discontinuance of allowances; examination of records; false or misleading statements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/3690"
units:
  - "Part III — Readjustment and Related Benefits"
  - "Chapter 36 — Administration of Educational Benefits"
  - "Subchapter III — Miscellaneous Provisions"
---

# §3690. Overcharges by educational institutions; discontinuance of allowances; examination of records; false or misleading statements

- (a) **Overcharges by Educational Institutions.—** If the [Secretary](/usc/38/4101.md?p=8) finds that an [educational institution](/usc/38/3002.md?p=8) has—
  - (1) charged or received from any [eligible veteran](/usc/38/3202.md?p=1-A) or [eligible person](/usc/38/3501.md?p=a-1) pursuing a [program of education](/usc/38/3002.md?p=3) under this chapter or chapter [34](/usc/38/chptIII/ch34.md) or [35](/usc/38/chptIII/ch35.md) 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](/usc/38/3202.md?p=1-A) and the [Secretary](/usc/38/4101.md?p=8) finds that the effect of such policy or practice substantially denies to [veterans](/usc/38/3701.md?p=b-2) the [benefits](/usc/38/4303.md?p=2) of the advance allowances under such section,

  the [Secretary](/usc/38/4101.md?p=8) may disapprove such [educational institution](/usc/38/3002.md?p=8) for the enrollment of any [eligible veteran](/usc/38/3202.md?p=1-A) or [eligible person](/usc/38/3501.md?p=a-1) not already enrolled therein under this chapter or chapter [31](/usc/38/chptIII/ch31.md), [34](/usc/38/chptIII/ch34.md), or [35](/usc/38/chptIII/ch35.md) of this title.

- (b) **Discontinuance of Allowances.—**
  - (1) The [Secretary](/usc/38/4101.md?p=8) may discontinue the educational assistance allowance of any [eligible veteran](/usc/38/3202.md?p=1-A) or [eligible person](/usc/38/3501.md?p=a-1) if the [Secretary](/usc/38/4101.md?p=8) finds that the [program of education](/usc/38/3002.md?p=3) or any course in which the [veteran](/usc/38/3701.md?p=b-2) or person is enrolled fails to meet any of the requirements of this chapter or chapter [34](/usc/38/chptIII/ch34.md) or [35](/usc/38/chptIII/ch35.md) of this title, or if the [Secretary](/usc/38/4101.md?p=8) finds that the [educational institution](/usc/38/3002.md?p=8) offering such program or course has violated any provision of this chapter or chapter [34](/usc/38/chptIII/ch34.md) or [35](/usc/38/chptIII/ch35.md) 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](/usc/38/4101.md?p=8) under paragraph (1) of this subsection to discontinue (including to suspend) assistance provided to any [eligible veteran](/usc/38/3202.md?p=1-A) or [eligible person](/usc/38/3501.md?p=a-1) under this chapter or chapter [31](/usc/38/chptIII/ch31.md), [32](/usc/38/chptIII/ch32.md), [34](/usc/38/chptIII/ch34.md), or [35](/usc/38/chptIII/ch35.md) of this title shall be based upon evidence that the [veteran](/usc/38/3701.md?p=b-2) or [eligible person](/usc/38/3501.md?p=a-1) is not or was not entitled to such assistance. Whenever the [Secretary](/usc/38/4101.md?p=8) so discontinues any such assistance, the [Secretary](/usc/38/4101.md?p=8) shall concurrently provide written [notice](/usc/38/4303.md?p=8) to such [veteran](/usc/38/3701.md?p=b-2) or person of such discontinuance and that such [veteran](/usc/38/3701.md?p=b-2) 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](/usc/38/4101.md?p=8) may suspend educational assistance to [eligible veterans](/usc/38/3202.md?p=1-A) and [eligible persons](/usc/38/3501.md?p=a-1) already enrolled, and may disapprove the enrollment or reenrollment of any [eligible veteran](/usc/38/3202.md?p=1-A) or [eligible person](/usc/38/3501.md?p=a-1), in any course as to which the [Secretary](/usc/38/4101.md?p=8) has evidence showing a substantial pattern of [eligible veterans](/usc/38/3202.md?p=1-A) or [eligible persons](/usc/38/3501.md?p=a-1), 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](/usc/38/3002.md?p=8) offering such course has violated one or more of the recordkeeping or reporting requirements of this chapter or chapter [30](/usc/38/chptIII/ch30.md), [32](/usc/38/chptIII/ch32.md), [33](/usc/38/chptIII/ch33.md), [34](/usc/38/chptIII/ch34.md), or [35](/usc/38/chptIII/ch35.md) of this title.
    - (B) Action may be taken under subparagraph (A) of this paragraph only after—
      - (i) the [Secretary](/usc/38/4101.md?p=8) provides to the [State](/usc/38/4101.md?p=6) approving agency concerned and the [educational institution](/usc/38/3002.md?p=8) concerned written [notice](/usc/38/4303.md?p=8) 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](/usc/38/4303.md?p=8) (or within such longer period as the [Secretary](/usc/38/4101.md?p=8) determines is reasonable and appropriate) take corrective action; and
      - (iii) the [Secretary](/usc/38/4101.md?p=8), not less than 30 days before taking action under such subparagraph, provides to each [eligible veteran](/usc/38/3202.md?p=1-A) and [eligible person](/usc/38/3501.md?p=a-1) already enrolled in such course written [notice](/usc/38/4303.md?p=8) of the [Secretary](/usc/38/4101.md?p=8)’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](/usc/38/4101.md?p=8) has determined is reasonable and appropriate), and of the date on which the [Secretary](/usc/38/4101.md?p=8) intends to take action under such subparagraph.
- (c) **Examination of Records.—**
  - (1) Except as provided in [paragraph (2)](#c-2), notwithstanding any other provision of law, the records and accounts of [educational institutions](/usc/38/3002.md?p=8) pertaining to [eligible veterans](/usc/38/3202.md?p=1-A) or [eligible persons](/usc/38/3501.md?p=a-1) who received educational assistance under this chapter or chapter [31](/usc/38/chptIII/ch31.md), [32](/usc/38/chptIII/ch32.md), [34](/usc/38/chptIII/ch34.md), or [35](/usc/38/chptIII/ch35.md) of this title, as well as the records of other students which the [Secretary](/usc/38/4101.md?p=8) 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)](#c-1) does not apply to the records and accounts—
    - (A) of an [educational institution](/usc/38/3002.md?p=8) 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](/usc/38/4101.md?p=8) finds that an [educational institution](/usc/38/3002.md?p=8) has willfully submitted a false or misleading claim, or that a [veteran](/usc/38/3701.md?p=b-2) or person, with the complicity of an [educational institution](/usc/38/3002.md?p=8), has submitted such a claim, the [Secretary](/usc/38/4101.md?p=8) shall make a complete report of the facts of the case to the appropriate [State](/usc/38/4101.md?p=6) approving agency and, where deemed advisable, to the [Attorney General](/usc/38/4303.md?p=1) of the United States for appropriate action.

## Source credit

(Added Pub. L. 92–540, title III, § 316(2), Oct. 24, 1972, 86 Stat. 1088, § 1790; amended Pub. L. 94–502, title V, §§ 510, 513(a)(19), Oct. 15, 1976, 90 Stat. 2401, 2403; Pub. L. 95–202, title III, § 306, Nov. 23, 1977, 91 Stat. 1445; Pub. L. 96–466, title VIII, § 801(f), Oct. 17, 1980, 94 Stat. 2216; Pub. L. 97–295, § 4(59), Oct. 12, 1982, 96 Stat. 1309; Pub. L. 97–306, title II, § 207, Oct. 14, 1982, 96 Stat. 1435; Pub. L. 101–237, title IV, § 423(a)(9), (b)(1)(A), (2), Dec. 18, 1989, 103 Stat. 2092; renumbered § 3690, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102–86, title V, § 506(b)(1), Aug. 14, 1991, 105 Stat. 426; Pub. L. 109–233, title V, § 503(8)(A), June 15, 2006, 120 Stat. 416; Pub. L. 110–252, title V, § 5003(b)(2)(A)(iv), June 30, 2008, 122 Stat. 2375; Pub. L. 117–76, § 3(c)(2), Dec. 21, 2021, 135 Stat. 1519.)

## Notes

### 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 Amendment

Amendment 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 Amendment

Amendment 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 Amendment

Amendment 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 Amendment

Amendment 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.