Union Calendar No. 426 82d Congress, 2d Session -House Report No. 1376 _ __ HOUSE SELECT COMMITTEE TO INVESTIGATE EDUCATIONAL, TRAINING, AND LOAN GUARANTY PROGRAMS UNDER GI BILL HOUSE OF REPRESENTATIVES EIGHTY-SECOND CONGRESS SECOND SESSION CREATED PURSUANT TO H. Res. 93 FEIBRUARY 14, 1952.-Committed to the Committee of, the Whole House on the State of the IJnion and ordered to be printed, with illustrations UNITED STATES GOVERNMENT PRINTING OFFICE 'V5144 WASHINGTON : 1952 _ __ ._. ___.._ HOUSE SELECTI COMM\IITTEEI, TO I'NVESTIGATI, E]D)UCATIONAL PRO()GRAM UNI)DEt GI BILL OLIN EI. T'' E A ( I.E, 'Txis, Ch(irmaifn ClA IR FN; 1,1';, (':liforniii ALVIN F. WEICIIIL, Ohio JO EL1I. 1ViN' 'S,T'n nessee J. (}OLENN BEA ,LL, Miryhlii ' EA1L CII 1)01I'1,', I'eui:sylvnli IWI; l';It'l I. ,SCI;' I1)DE1 , (';ilif»nii:i HAI.tOLI) A. I'ATTEN, Arizona 'I' IU.STON1, . MO)'TON, K14nitlcky Ol.r/EKIt EC. \I EAIP.OWs, S'ltjff Direclor ifEO1;F) MV. I(OSE, SIi[ff .lrmbirr JAML S I. TI.\ANNEI{Y,! ?eItcfrch .AlJUi ]:,. It. 1,'F:li.SO)N, Jl.,C(t.foel ][ltmltY][';E hX , tlinefliltor ¢;AIifmtl) V.!(I.:fl, r(e[ttsliwator AllTlI1'l I' I.IllF:m.\AN, Invs'ftligitor 1'AII. If. SMII. ':Y, [rIe.<',4ltilior MIE.VIN W. \'()I;T.M\,N, hitLstipilor ll,11. 11. i1lM,hltC.ltipthar WAI.TON \\W(O)DS, IiiWrYlilntOr [EfI.IEN WVII'lIIT, S(crlchry JOsEI'III N ; I'iclr,,.ccrclvary IIREN: \\VAI)f:, Secrtaiury II CONTENTS Page Iecommenldations of tile coimmiit tee .--------..----.--_----. 1 Conclusions of the colmmittee -----..----..._....----..........-------- 3 Introduction--l-------------------------------------------------- 10 Purpose of conlmmittee- _------------------------------------------- 13 Scope of investigation ----------------------------------------- 13 Legislative backgroullnd -------------------------------------------- ( Statistics on cost and size of program -------------------------------- 20 Proprietary schools below the college levell 29 Control of costs through audit p)rog.ralms.----------------------------- 49 Institutional on--tlil-farn training progralll------------------------------ 51 The1 I railing p)ro"'r'ul at tile college level .------------------------__ r65 On-the-job training p)rogramn-----8---------------------------------- 80 Thie veteran trainllee-..---------------------- ---------- ------ 87 Organization anld operatiol of St ate a)rovig agelci(es --------------- 102 Administrative l)roblems confronting the Veterans' Administration ----- 110 'lT'e functionlling of tlie supply progi atl------------------------------ 127 Probletm11 involving vocational rhabtlit action and education persoInnel _-_- 180 Central office organization and sullervision of field activities.--------. 201 llelort on edllcatlion anld training uilnder the Servicemcen's Rleadjustmlent Act,, as allended, from tlie Adilnistrator of Veterans' Affairs _-___-- 212 Finality of dleterminatiols by the Adminitistrator -------------....-.-- 215 An evaluation of the veterans' training lprogral ---------_------------ 220 Appendix---.--------------------.-------------------------------- 223 m LETTER OF TRANSMITTAL CONG ItSS 01 T'HEI'I IT'l'iI) ST'I'rATES, I IoouSJ SEi.E;(CT' ('OMniI'I"1'V I' TO I NVE\S'rIGATE EDI) UCAT(. IO NA. 1, TRAINING, AND LOAN GU(AIRANTY ])lt()m.~mS Um.N):lte (GI BIJL,, 'Febrary 11, 1052. X-Hon. SAM 1tAYItI.iUN, Speaker, H/ouse q/rpre.ve.entafive.s,f l a..shinglfIon, I). 0. l)]x.\. Sc:Iit: T'1lirnsniitted llherewithi is tile 1el)ort of thle House Select Coilmmiittee( 'lTo jIlvestigtil tile lIduc(tnlionll, ''aniiwn, andl Tonan Guaranty lProgramils ,Under thie (l Bill. Tlliis 1relpo't is submitted pursuantl to ltouse. I(esoliutioln ):, Eligiht-seconld (Congre('ss, niid d(ials exelllsivewlv withtill e vet(llerlns' edu(lntionl'Pils)'og,'n. report is sul)bliltted wit'lh t1he u1111iilolms l)l)approval of thle committee. IRespectfully, OIJN E. TEAGUI', C'hairman. IV Union Calendar No. 426 82D CONGRESS -10 USE OF REPRESENTATIVES REPORT d Session J ( No. 1375 INVESTIGA.rTING EDUCATION AND TRAINING PROGRA\MS UNDER GI BILL Fj:rnnriAiRY 14, 1952.-Coinnmittcd to the Commnittee of thle Whole Iouse on the State of tlie Union and ordered o be printed, wit h illustrations \Mr. TEAxUE, from the House Select Commlittee Tor Investigate Educa- tionall Program Under GI B3ill, subnittedl tlhe followillng REPORT [Pursuiant to I. 93J tREICO.IMMENDATIONS OF THEII COMMITTEEri 1. A new act sliould1be written extending educational benefits to veterans who served during the Korean conflict. i'he act should define as its intent and purpose til(e creation of ail education an(l train- ing program to provide for vocational rehabiilitation and restoration of lost educational opportunity to those service men and women whose vocational pursuit and educational ambitions have been delayed or impeded by cause of active military, naval, or air service (luring a period of hostilities. An entirely newr act, rather than amendment to existing law, is desirable. The new act should included certain features of the present law and should incorI)orate the reconmmenda- tions of this report. 2. Eligibility for training should be granted to all veterans who served honorably during the period June 27, 1950, and such delimiting date as may later be established by Plresidential proclamation or concurrent resolution by Congress. Entitlement to educational benefits, not to exceed 36 months, sliould be granted to veterans with 90 or more days honorable service, based'on 1}1 days of entitle- mcnt for calll day of service during the period June 27, 1950, and prior to the delimiting date to be established. 3. 'The total payment, including an allowance for tuition, books, and supplies sufficient to maintain a veteran in training under average and reasonable conditions, should be paid directly to tlie veteran. From such an allowance the veteran should pay tuition, fees, and other charges not to exceed the charges paid by a nonveteran similarly circumstanced. No subsistence allowance should be paid for less 1 2 TRAINING AND LOAN GUARANTY PROGRAMS than half-time training; however in those instances where the veteran elects training without subsistence allowance, the VA should pay tuition, fees, an'd other charges not to exceed those charges made of nonveteran students similarly circumstances. 4. Enrollment of veterans in institutional training should be limited to courses offered by public schools and colleges, or to courses in private schools which have been in successful operation for at least 1 year and which maintain an enrollment of at least 25 percent nonveteran students. 5. The relative authority and responsibility of the Administrator and the State approving agencies should be defined. 'lhe State approving agencies should be charged with approval and supervision of educational institutions, training establlishments, and veterans enrolled tlierein. State approval agencies should receive reimburse- ment for supervision of all educational institutions and training establishments and nondisabled veterans enrolled therein. 6. lh( agricultural training program for veterans in the employ of another person should not be continued. lThe new act should prohibit enrollment of veterans in farm training when the veteran does not have a farm and farming program of sufficient size and scope to support his family and provide him with full-time employment, or when by virtue of previous education and experience the veteran is already as proficient as other successful farmers in the community. Subsistence payments to fnarl trainees sliould b)e scaled downward as the training program progresses and tie trainee's farming program nndl income improves. 7. The law should contain specific prollilfitions against Veterans' Administration and State approving agency personnel owning in- terest d(irectly or indirectly in schools training veterans, or receiving gifts, gratuities, favors, money, loans, or employment from such scliools. Approved schools, otler than public tax-supported schools and col- leges, slouldl be prohibited from employing a former Veterans' Ad- ministration or State approving agency emplloyee for a period of 1 year following thie termination of such person's employment with the Veterans' Administration or a State approving agency. 8. 'The law should lprohibit enrollment of a veteran in any school which is listed as subversive by tle Attorney General of the United States. 9. The Administrator should be authorized to discontinue benefits to any veteran who commits criminal acts or acts of gross misconduct in the use of his entitlement. 'I'me Veterans' Administration should establish a systetn of control and advisement and guidance for veteran students who fail, change courses often, or commit acts of bad faith in the use of their entitlement. 10. Standards for approval of nonaccredited courses in vocational and trade schools should be established by law to preclude approval of schools with poor or inadequate qualifications. ,11. IFull-time training in colleges should be defined as 15 semester hours or its equivalent. 12. Specific penalties should be established for persons w;ho know- ingly qr willfully make false claims in connection with tlhe veterans' program. 1:3. Veterans should be required to report taxable income rather than income from productive labor for tile purposes of computing subsistence allowances. TRAINING AND LOAN GUARANTY PROGRAMS 3 14. The Administrator of Veterans' Affairs should allow the Inspection and Investigation Service to investigate criminal matters arising in the veterans' program. The Administrator