II
110th CONGRESS
2d Session
S. 2938
IN THE SENATE OF THE UNITED STATES
April 29, 2008
Mr. Graham (for himself, Mr. Burr, Mr. McCain, Mr. Chambliss, Mr. Lieberman, Mr. Cornyn, Mr. Alexander, Mrs. Hutchison, Mr. Martinez, Mr. Stevens, Mr. Cochran, Ms. Collins, Mr. Barrasso, Mr. Domenici, Mrs. Dole, Mr. Wicker, Mr. Isakson, and Mr. Inhofe) introduced the following bill; which was read twice and referred to the Committee on Veterans' Affairs
A BILL
To amend titles 10 and 38, United States Code, to improve educational assistance for members of the Armed Forces and veterans in order to enhance recruitment and retention for the Armed Forces, and for other purposes.
Short title; table of contents
Short title
This Act may be cited
as the Enhancement of Recruitment,
Retention, and Readjustment Through Education Act of
2008
.
Table of contents
The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Plan on coordination of current educational assistance programs and development of additional educational assistance programs to enable career-oriented members of the Armed Forces to attain a bachelor's degree.
Sec. 4. Increase in rates of basic educational assistance under the Montgomery GI Bill.
Sec. 5. Annual stipend for recipients of basic educational assistance under the Montgomery GI Bill.
Sec. 6. Increase in rates of educational assistance for members of the Selected Reserve.
Sec. 7. Increase in rates of educational assistance for reserve component members supporting contingency operations and other operations with extended service in the Selected Reserve.
Sec. 8. Enhancement of transferability of entitlement to educational assistance.
Sec. 9. Use of educational assistance to repay Federal student loans.
Sec. 10. Educational assistance for graduates of the service academies and Reserve Officers' Training Corps programs.
Sec. 11. Opportunity for current and certain retired VEAP-era personnel to enroll in basic educational assistance under the Montgomery GI Bill.
Sec. 12. College Patriots Grant Program.
Findings
Congress makes the following findings:
The World War II-era GI Bill assisted almost 8,000,000 members of the Armed Forces in readjusting to civilian life after completing their service to the nation. With the support and assistance of America’s colleges and universities, the GI Bill provided incentives that transformed American society, making a college degree a realizable goal for millions of Americans.
In the years following World War II, the GI Bill continued to provide educational benefits for members of the Armed Forces who had been drafted into or volunteered for service.
The establishment of the All Volunteer Force in 1973, and its development since its inception, has produced highly professional Armed Forces that are recognized as the most effective fighting force the world has ever seen.
The Sonny Montgomery GI Bill was enacted in 1984 to sustain the All Volunteer Force by providing educational benefits to aid in the recruitment and retention of highly qualified personnel for the Armed Forces and to assist veterans in readjusting to civilian life. Today, it remains a cornerstone of military recruiting and retention planning for the Armed Forces and continues to fulfill its original purposes.
The All Volunteer Force depends for its effectiveness and vitality on successful recruiting of highly capable men and women, and retention for careers of soldiers, sailors, airmen, and marines, in both the active and reserve components of the Armed Forces, who, with the support of their families and loved ones, develop into professional, dedicated, and experienced officers, noncommissioned officers, and petty officers.
The achievement of educational goals, including obtaining the means to a college degree, has traditionally been a key reason for volunteering for service in the Armed Forces. For members who serve a career in the Armed Forces, this goal extends to their spouses and children and has resulted in requests for the option to transfer educational benefits under the GI Bill to spouses and children.
As in the aftermath of World War II, colleges and universities throughout the United States should demonstrate their and the Nation’s appreciation to veterans by dedicated programs providing financial aid.
It is in that national interest for the United States—
to express the gratitude of the American people by assisting those who have honorably served in the Armed Forces and returned to civilian life to achieve their educational goals;
to provide significant educational benefits to provide incentives for successful recruiting;
to motivate continued service in the All Volunteer Force by those members with the potential for military careers and their spouses and children; and
to assist those who serve and their families in achieving their personal goals, including higher education, while progressing in a military career.
Plan on coordination of current educational assistance programs and development of additional educational assistance programs to enable career-oriented members of the Armed Forces to attain a bachelor's degree
Sense of Congress
It is the sense of Congress that—
the outstanding men and women who volunteer for service in the Armed Forces and demonstrate through their service the ability, motivation, and commitment to serve as career commissioned officers, noncommissioned officers, petty officers, and warrant officers should be given the opportunities and resources needed to obtain a bachelor's degree before they complete active duty and retire from the Armed Forces; and
every effort should be made by the leaders of the Army, Navy, Marine Corps, Air Force, and Coast Guard to demonstrate to members of the Armed Forces who are willing to serve and study that the dual goals of attaining a bachelor's degree and a distinguished military career are achievable and not mutually exclusive.
Plan To coordinate and develop educational assistance programs
Plan required
The Secretary of Defense shall, in consultation with the Secretary of Veterans Affairs, develop a plan to make the attainment of a bachelor's degree an achievable goal for members of the Armed Forces who are motivated towards careers in the Armed Forces and who are able and willing to accept the challenges of military duty and pursuit of college level studies.
Advice of the service chiefs
The Secretary of Defense shall develop the plan required by paragraph (1) with the advice of the Chief of Staff of the Army, the Chief of Naval Operations, the Chief of Staff of the Air Force, and the Commandant of the Marine Corps.
Elements
The plan required by paragraph (1) shall include the following:
Appropriate elements of current programs to assist members of the Armed Forces in obtaining college-level education, including tuition assistance programs, distance learning programs, and technical training and education provided by the military departments, including programs currently administered by the Secretary of Veterans Affairs.
Appropriate elements of current programs to provide members of the Armed Forces with assistance in obtaining college-level credit for the technical training and experience they undergo during their military career.
One or more additional education programs to assist members of the Armed Forces in obtaining a college-level education, including mechanisms for the provision by the military departments of guidance, mentoring, and resources to assist members in achieving their professional military and personal educational goals.
Such additional programs or mechanisms, such as sabbaticals from the Armed Forces or college-level education provided or funded by the military departments, as the Secretary of Defense considers appropriate to assist members of the Armed Forces in making adequate progress towards a bachelor's degree from an accredited institution of higher education while continuing a successful military career.
Such mechanisms for the application of the elements of the plan to members of the National Guard and Reserves as the Secretary of Defense considers appropriate to ensure that such members receive appropriate assistance in achieving their professional military and personal educational goals.
Such elements of current programs of the military departments for in-service education of members of the Armed Forces as the Secretary of Defense considers appropriate to maintain and enhance the recruitment and retention by the Armed Forces of highly trained and experienced military leaders.
Submittal to Congress
The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report setting forth the plan required by paragraph (1) not later than August 1, 2009.
Increase in rates of basic educational assistance under the Montgomery GI Bill
Increase in general rates and augmented rates for extended service
Rates based on three years of obligated service
Subsection (a)(1) of section
3015 of title 38, United States Code, is amended by striking on a
full-time basis, at the monthly rate of
and all that follows and
inserting “on a full-time basis—
in the case of an individual who served on active duty in the Armed Forces for 12 or more years, at the monthly rate of—
for months occurring during fiscal year 2009, $1,650;
for months occurring during fiscal year 2010, $1,800;
for months occurring during fiscal year 2011, $2,000; and
for months occurring during a subsequent fiscal year, the amount for months occurring during the preceding fiscal year increased under subsection (h); and
in the case of an individual who served on active duty in the Armed Forces for less than 12 years, at the monthly rate of—
for months occurring during fiscal year 2009, $1,500; and
for months occurring during a subsequent fiscal year, the amount for months occurring during the preceding fiscal year increased under subsection (h); or
.
Rates based on two years of obligated service
Subsection (b)(1) of such section is amended—
by striking subparagraphs (A) through (C) and inserting the following new subparagraph (A):
for months occurring during fiscal year 2009, $950; and
; and
by redesignating subparagraph (D) as subparagraph (B).
Effective date
In general
The amendments made by subsection (a) shall take effect on October 1, 2008, and shall apply with respect to basic educational assistance payable for months beginning on or after that date.
Limitation on cost-of-living adjustments
Certain rates based on three years of obligated service
No adjustment under subsection (h) of section 3015 of title 38, United States Code, shall be made in the rates of educational assistance payable under subsection (a)(1)(A) of such section (as amended by subsection (a)(1) of this section) for any of fiscal years 2009 through 2011.
Other rates
No adjustment under subsection (h) of section 3015 of title 38, United States Code, shall be made in the rates of educational assistance payable under subsection (a)(1)(B) of such section (as so amended), or subsection (b) of such section, for fiscal year 2009.
Annual stipend for recipients of basic educational assistance under the Montgomery GI Bill
Entitlement to stipend
In general
Subchapter II of chapter 30 of title 38, United States Code, is amended by adding at the end the following new section:
Educational stipend
Entitlement
Each individual receiving basic educational assistance under this subchapter who is pursuing a program of education at an institution of higher learning (as such term is defined in section 3452(f) of this title) is entitled to an educational stipend under this section.
Amount of stipend
The educational stipend payable under this section to an individual entitled to such a stipend shall be paid—
in the case of an individual pursuing an approved program of education on at least a half-time basis, at the annual rate of $500; and
in the case of an individual pursuing an approved program of education on less than a half-time basis, at the annual rate of $350.
Payment frequency and method
The educational stipend payable under this subsection shall be paid with such frequency (including by lump sum), and by such mechanisms, as the Secretary shall prescribe for purposes of this section.
.
Clerical amendment
The table of sections at the beginning of chapter 30 of such title is amended by adding at the end of the items relating to subchapter II the following new item:
3020A. Educational stipend.
.
Effective date
Section 3020A of title 38, United States Code, as added by subsection (a), shall take effect on the date that is one year after the enactment of this Act.
Increase in rates of educational assistance for members of the Selected Reserve
Increase in rates
Section 16131(b)(1) of title 10, United States Code, is amended—
in subparagraph
(A), by striking $251
and inserting $634
;
in subparagraph
(B), by striking $188
and inserting $474
;
and
in subparagraph
(C), by striking $125
and inserting $314
.
Effective date
In general
The amendments made by subsection (a) shall take effect on October 1, 2008, and shall apply with respect to educational assistance payable for months beginning on or after that date.
No cost-of-living adjustment
No adjustment under paragraph (2) of section 16131(b) of title 10, United States Code, shall be made in the rates of educational assistance payable under paragraph (1) of such section for fiscal year 2009.
Increase in rates of educational assistance for reserve component members supporting contingency operations and other operations with extended service in the Selected Reserve
Increase in rates for extended service
Paragraph (2) of section 16162(c) of title 10, United States Code, is amended to read as follows:
The educational assistance allowance provided under this chapter shall be the amount as follows (as adjusted under paragraphs (3) and (4)):
In the case of a member who serves an aggregate of 12 years or more in the Selected Reserve of the Ready Reserve, the amount provided under section 3015(a)(1)(A) of title 38 for the fiscal year concerned, except that if a member otherwise covered by this subparagraph ceases serving in the Selected Reserve the amount shall be the amount provided under subparagraph (B) of this paragraph.
In the case of any other member, the amount provided under section 3015(a)(1)(B) of title 38 for the fiscal year concerned.
.
Effective date
The amendment made by subsection (a) shall take effect on October 1, 2008, and shall apply with respect to educational assistance payable for months beginning on or after that date.
Enhancement of transferability of entitlement to educational assistance
Modification of authority To transfer entitlement under Montgomery GI bill
In general
Subsection (a) of section 3020 of title 38, United States Code, is amended to read as follows:
In general
Subject to the provisions of this section, the Secretary of Defense shall authorize each Secretary concerned to permit an individual described in subsection (b) who is entitled to basic educational assistance under this subchapter to elect to transfer to one or more of the dependents specified in subsection (c) the unused portion of such individual's entitlement to such assistance, subject to the limitation under subsection (d).
.
Eligible individuals
Subsection (b) of such section is amended to read as follows:
Eligible individuals
An individual referred to in subsection (a) is any member of the Armed Forces serving on active duty or as a member of the Selected Reserve who, at the time of the approval by the Secretary concerned of the member's request to transfer entitlement to basic educational assistance under this section—
has completed six years of service in the Armed Forces; and
meets such other requirements as the Secretary of Defense may prescribe for purposes of this section.
.
Limitations on months of transfer
Subsection (d) of such section is amended to read as follows:
Number of months transferrable
Except as provided in paragraphs (2) and (3), an individual may transfer under this section any number of months of unused entitlement of the individual to basic educational assistance under this chapter.
In the case of an individual who has completed at least six but less than 12 years of service in the Armed Forces at the time of the approval by the Secretary concerned of the individual's request to transfer entitlement under this section, the number of months that may be transferred by the individual under this section may not exceed the lesser of—
the number of months transferrable by the individual under paragraph (1); or
18 months.
.
Timing, revocation, and modification of transfer
Subsection (f) of such section is amended—
in paragraph (1),
by striking without regard
and all that follows and inserting
while the individual is a member of the Armed Forces.
;
and
in paragraph
(2)(A), by inserting while the individual is serving as a member of the
Armed Forces or in the Selected Reserve
after at any
time
.
Exclusion from marital property
Subsection (f) of such section is further amended by adding at the end the following new paragraph:
Entitlement transferred under this section may not be treated as marital property, or the asset of a marital estate, subject to division in a divorce or other civil proceeding.
.
Overpayment
Subsection (i) of such section is amended—
by striking
(1)
before In the event
; and
by striking paragraphs (2) and (3).
Regulations
Subsection (k) of such section is amended to read as follows:
Regulations
The Secretary of Defense shall, in coordination with the Secretary of Veterans Affairs, prescribe regulations for purposes of this section. Such regulations shall specify the following:
The circumstances under which the Secretaries concerned may permit and approve transfers of entitlement under this section.
Such requirements for eligibility for transfer of entitlement under this section as the Secretary of Defense considers appropriate for purposes of subsection (b)(2).
The manner and effect of an election to modify or revoke a transfer of entitlement under subsection (f)(2).
.
Heading amendment
The heading of such section is amended to read as follows:
Transfer of entitlement to basic educational assistance
.
Clerical amendment
The table of sections at the beginning of chapter 30 of such title is amended by striking the item relating to section 3020 and inserting the following:
3020. Transfer of entitlement to basic educational assistance.
.
Authority for transfer of entitlement under reserve components educational assistance programs
Selected reserve program
In general
Chapter 1606 of title 10, United States Code, is amended by inserting after section 16131a the following new section:
Transfer of entitlement to educational assistance
In general
Subject to the provisions of this section, the Secretary concerned may permit a member of the Armed Forces described in subsection (b) who is entitled to educational assistance under this chapter to elect to transfer to one or more of the dependents specified in subsection (c) a portion of such member's entitlement to such assistance, subject to the limitations under subsection (d).
Eligible members
A member described in this subsection is a member of the Selected Reserve of the Ready Reserve who, at the time of the approval of the member's request to transfer entitlement to educational assistance under this section—
has completed at least six years of service in the Selected Reserve; and
meets such other requirements as the Secretary of Defense may prescribe for purposes of this section.
Eligible dependents
A member approved to transfer an entitlement to educational assistance under this section may transfer the member's entitlement as follows:
To the member's spouse.
To one or more of the member's children.
To a combination of the individuals referred to in paragraphs (1) and (2).
Number of months transferrable
Except as provided in paragraph (2), a member may transfer under this section any number of months of unused entitlement of the member to educational assistance under this chapter.
In the case of a member who has completed at least six but less than 12 years of service in the Selected Reserve at the time of the approval by the Secretary concerned of the member's request to transfer entitlement under this section, the number of months that may be transferred by the member under this section may not exceed the lesser of—
the number of months transferrable by the individual under paragraph (1); or
18 months.
Designation of transferee
A member transferring an entitlement to educational assistance under this section shall—
designate the dependent or dependents to whom such entitlement is being transferred;
designate the number of months of such entitlement to be transferred to each such dependent; and
specify the period for which the transfer shall be effective for each dependent designated under paragraph (1).
Time for transfer; revocation and modification
Subject to the time limitation for use of entitlement under section 16133 of this title, a member approved to transfer entitlement to educational assistance under this section may transfer such entitlement at any time after the approval of the member's request to transfer such entitlement.
A member transferring entitlement under this section may modify or revoke at any time the transfer of any unused portion of the entitlement so transferred.
The modification or revocation of the transfer of entitlement under this paragraph shall be made by the submittal of written notice of the action to both the Secretary concerned and the Secretary of Veterans Affairs.
Entitlement transferred under this section may not be treated as marital property, or the asset of a marital estate, subject to division in a divorce or other civil proceeding.
Commencement of use
A dependent to whom entitlement to educational assistance is transferred under this section may not commence the use of the transferred entitlement until—
in the case of entitlement transferred to a spouse, the completion by the member making the transfer of six years of service in the Selected Reserve; or
in the case of entitlement transferred to a child, both—
the completion by the member making the transfer of six years of service in the Selected Reserve; and
either—
the completion by the child of the requirements of a secondary school diploma (or equivalency certificate); or
the attainment by the child of 18 years of age.
Additional administrative matters
The use of any entitlement to educational assistance transferred under this section shall be charged against the entitlement of the member making the transfer at the rate of one month for each month of transferred entitlement that is used.
Except as provided under subsection (e)(2) and subject to paragraphs (5) and (6), a dependent to whom entitlement is transferred under this section is entitled to educational assistance under this chapter in the same manner as the member from whom the entitlement was transferred.
The monthly rate of educational assistance payable to a dependent to whom entitlement is transferred under this section shall be the monthly amount payable to the member making the transfer under section 16131 or 16132a of this title, as applicable.
The death of a member transferring entitlement under this section shall not affect the use of the entitlement by the dependent to whom the entitlement is transferred.
The involuntary separation or retirement of a member transferring entitlement under this section because of a nondiscretionary provision of law for age or for years of service, as described in section 16133(b) of this title, or medical disqualification which is not the result of gross negligence or misconduct of the member shall not affect the use of entitlement by the dependent to whom the entitlement is transferred.
A child to whom entitlement is transferred under this section may not use any entitlement so transferred after attaining the age of 26 years.
The purposes for which a dependent to whom entitlement is transferred under this section may use such entitlement shall include the pursuit and completion of the requirements of a secondary school diploma (or equivalency certificate).
The administrative provisions of this chapter shall apply to the use of entitlement transferred under this section, except that the dependent to whom the entitlement is transferred shall be treated as the eligible member for purposes of such provisions.
Overpayment
In the event of an overpayment of educational assistance with respect to a dependent to whom entitlement is transferred under this section, the dependent and the member making the transfer shall be jointly and severally liable to the United States for the amount of the overpayment for purposes of section 3685 of title 38.
Except as provided in subparagraph (B), in the case of a member transferring entitlement under this section whose eligibility is terminated under section 16134(2) of this title, the amount of any transferred entitlement under this section that is used by a dependent of the member as of the date of the failure of the member to participate satisfactorily in training as specified in section 16134(2) of this title shall be treated as an overpayment of educational assistance under paragraph (1).
Subparagraph (A) shall not apply in the case of a member who fails to complete service agreed to by the member—
by reason of the death of the member; or
for a reason referred to in section 16133(b) of this title.
Approvals of transfer subject to availability of appropriations
The Secretary concerned may approve transfers of entitlement to educational assistance under this section in a fiscal year only to the extent that appropriations for military personnel are available in that fiscal year for purposes of making deposits in the Department of Defense Education Benefits Fund under section 2006 of this title in that fiscal year to cover the present value of future benefits payable from the Fund for the Department of Defense portion of payments of educational assistance attributable to increased usage of benefits as a result of such transfers of entitlement in that fiscal year.
Regulations
The Secretary of Defense shall, in consultation with the Secretary of Veterans Affairs, prescribe regulations for purposes of this section. Such regulations shall specify the following:
The circumstances under which the Secretaries concerned may permit and approve transfers of entitlement under this section.
Such requirements for eligibility for transfer of entitlement under this section as the Secretary of Defense considers appropriate for purposes of subsection (b)(2).
The manner and effect of an election to modify or revoke a transfer of entitlement under subsection (f)(2).
.
Clerical amendment
The table of sections at the beginning of chapter 1606 of such title is amended by inserting after the item relating to section 16131a the following new item:
16131b. Transfer of entitlement to educational assistance.
.
Program for reserve components supporting contingency and other operations
In general
Chapter 1607 of title 10, United States Code, is amended by inserting after section 16162a the following new section:
Transfer of entitlement to educational assistance
In general
Subject to the provisions of this section, the Secretary concerned may permit a member of the Armed Forces described in subsection (b) who is entitled to educational assistance under this chapter to elect to transfer to one or more of the dependents specified in subsection (c) a portion of such member's entitlement to such assistance, subject to the limitations under subsection (d).
Eligible members
A member referred to in subsection (a) is a member of the Armed Forces who, at the time of the approval of the member's request to transfer entitlement to educational assistance under this section—
has completed at least six years of service in the Armed Forces; and
meets such other requirements as the Secretary of Defense may prescribe for purposes of this section.
Eligible dependents
A member approved to transfer an entitlement to educational assistance under this section may transfer the member's entitlement as follows:
To the member's spouse.
To one or more of the member's children.
To a combination of the individuals referred to in paragraphs (1) and (2).
Number of months transferrable
Except as provided in paragraph (2), a member may transfer under this section any number of months of unused entitlement of the member to educational assistance under this chapter.
In the case of a member who has completed at least six but less than 12 years of service in the Armed Forces at the time of the approval by the Secretary concerned of the member's request to transfer entitlement under this section, the number of months that may be transferred by the member under this section may not exceed the lesser of—
the number of months transferrable by the individual under paragraph (1); or
18 months.
Designation of transferee
A member transferring an entitlement to educational assistance under this section shall—
designate the dependent or dependents to whom such entitlement is being transferred;
designate the number of months of such entitlement to be transferred to each such dependent; and
specify the period for which the transfer shall be effective for each dependent designated under paragraph (1).
Time for transfer; revocation and modification
Subject to the time limitation for use of entitlement under section 16164 of this title, a member approved to transfer entitlement to educational assistance under this section may transfer such entitlement only while serving as a member of the Armed Forces when the transfer is executed.
A member transferring entitlement under this section may modify or revoke at any time the transfer of any unused portion of the entitlement so transferred.
The modification or revocation of the transfer of entitlement under this paragraph shall be made by the submittal of written notice of the action to both the Secretary concerned and the Secretary of Veterans Affairs.
Commencement of use
A dependent to whom entitlement to educational assistance as transferred under this section may not commence the use of the transferred entitlement until—
in the case of entitlement transferred to a spouse, the completion by the member making the transfer of the years of service in the Armed Forces applicable to the member under subsection (b); or
in the case of entitlement transferred to a child, both—
the completion by the member making the transfer of the years of service in the Armed Forces applicable to the member under subsection; and
either—
the completion by the child of the requirements of a secondary school diploma (or equivalency certificate); or
the attainment by the child of 18 years of age.
Additional administrative matters
The use of any entitlement to educational assistance transferred under this section shall be charged against the entitlement of the member making the transfer at the rate of one month for each month of transferred entitlement that is used.
Except as provided under subsection (e)(2) and subject to paragraphs (5) and (6), a dependent to whom entitlement is transferred under this section is entitled to educational assistance under this chapter in the same manner as the member from whom the entitlement was transferred.
The monthly rate of educational assistance payable to a dependent to whom entitlement is transferred under this section shall be the monthly amount payable to the member making the transfer under section 16162 or 16162a of this title, as applicable.
The death of a member transferring an entitlement under this section shall not affect the use of the entitlement by the dependent to whom the entitlement is transferred.
A child to whom entitlement is transferred under this section may not use any entitlement so transferred after attaining the age of 26 years.
The purposes for which a dependent to whom entitlement is transferred under this section may use such entitlement shall include the pursuit and completion of the requirements of a secondary school diploma (or equivalency certificate).
The administrative provisions of this chapter shall apply to the use of entitlement transferred under this section, except that the dependent to whom the entitlement is transferred shall be treated as the eligible member for purposes of such provisions.
Overpayment
In the event of an overpayment of educational assistance with respect to a dependent to whom entitlement is transferred under this section, the dependent and the member making the transfer shall be jointly and severally liable to the United States for the amount of the overpayment for purposes of section 3685 of title 38.
Approvals of transfer subject to availability of appropriations
The Secretary concerned may approve transfers of entitlement to educational assistance under this section in a fiscal year only to the extent that appropriations for military personnel are available in that fiscal year for purposes of making deposits in the Department of Defense Education Benefits Fund under section 2006 of this title in that fiscal year to cover the present value of future benefits payable from the Fund for the Department of Defense portion of payments of educational assistance attributable to increased usage of benefits as result of such transfers of entitlement in that fiscal year.
Regulations
The Secretary of Defense shall, in consultation with the Secretary of Veterans Affairs, prescribe regulations for purposes of this section. Such regulations shall specify the following:
The circumstances under which the Secretaries concerned may permit and approve transfers of entitlement under this section.
Such requirements for eligibility for transfer of entitlement under this section as the Secretary of Defense considers appropriate for purposes of subsection (b)(2).
The manner and effect of an election to modify or revoke a transfer of entitlement under subsection (f)(2).
.
Clerical amendment
The table of sections at the beginning of chapter 1607 of such title is amended by inserting after the item relating to section 16162a the following new item:
16162b. Transfer of entitlement to educational assistance.
.
Funding under department of defense education benefits fund
Section
2006(b)(2)(D) of title 10, United States Code, is amended by inserting before
the period at the end the following: , including payments attributable
to increased usage of benefits as a result of transfers of entitlement to
educational assistance under sections 16131b and 16162b of this
title
.
Effective date
The amendments made by this subsection shall take effect on October 1, 2009.
Use of educational assistance To repay Federal student loans
Use of educational assistance To repay Federal student loans
In general
Subchapter II of chapter 30 of title 38, United States Code, as amended by section 4(a) of this Act, is further amended by inserting after section 3020A the following new section:
Use of basic educational assistance benefits for repayment of Federal student loans
In general
An individual entitled to basic educational assistance under this subchapter who is serving on active duty in the Armed Forces may elect to apply amounts of basic educational assistance otherwise available to the individual under this subchapter to repay all or a portion of the outstanding principal and interest on any Federal student loan owed by the individual for the individual's pursuit of a course of education.
Designation of loans and amounts payable
An individual electing under this section to apply amounts of basic educational assistance to the payment of the outstanding principal and interest on Federal student loans shall designate (in such form and manner as the Secretary shall prescribe for purposes of this section) the following:
Each Federal student loan of the individual for which payment shall be made under this section.
For each Federal student loan designated under paragraph (1), the monthly amount to be paid under this section.
Limitation on amount of payments
The monthly amount payable with respect to an individual under this section may not exceed the monthly rate of basic educational assistance to which the individual is otherwise entitled under this subchapter at the time of payment of such monthly amount.
The aggregate amount of basic educational assistance payable with respect to an individual under this section for any 12-month period may not exceed $6,000.
Frequency of payments
Payment of amounts of principal and interest on Federal student loans of an individual under this section shall be made on a monthly basis.
Cessation of payments
Payments made under this section with respect to an individual shall cease if the individual ceases serving on active duty in the Armed Forces, effective as of the first month that begins after the date on which the individual ceases serving on active duty in the Armed Forces.
Charge against entitlement
The period of entitlement to basic educational assistance under this subchapter of an individual for whom payments are made under this section shall be charged at the rate of one month for each payment or aggregate of payments under this section that are equivalent in amount to the monthly rate of basic educational assistance to which the individual is otherwise entitled under this subchapter.
Regulations
The Secretary shall prescribe such regulations as the Secretary considers appropriate for purposes of the administration of this section.
Federal student loan defined
In this section, the term Federal student
loan
means any loan made under title IV of the Higher Education Act of
1965 (20 U.S.C. 1070 et
seq.).
.
Clerical amendment
The table of sections of subchapter II of chapter 30 of such title, as so amended, is further amended by inserting after the item relating to section 3020A the following new item:
3020B. Use of basic educational assistance benefits for repayment of Federal student loans.
.
Effective Date
Section 3020B of title 38, United States Code, as added by subsection (a), shall apply with respect to educational assistance payable for months that begin on or after the date that is one year after the date of the enactment of this Act.
Educational assistance for graduates of the service academies and Reserve Officers' Training Corps programs
Active duty program
In general
Subsection (a)(1) of section 3011 of title 38, United States Code, is amended—
in subparagraph
(B), by striking or
at the end;
in subparagraph
(C), by adding or
at the end; and
by adding at the end the following new subparagraph:
after September 30, 2009—
receives a commission as an officer in the Armed Forces—
upon graduation from the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, or the Coast Guard Academy; or
upon completion of a Senior Reserve Officers' Training Corps program under chapter 103 of title 10; and
completes at least five years of continuous active duty in the Armed Forces (excluding any period of obligated service in connection with receipt of a commission as an officer in the Armed Forces under clause (i) and excluding any other period of obligated service in connection with education, training, or instruction provided or funded, whether in whole or in part, by the United States);
.
Conforming amendments
Such section is further amended—
in subsection
(b), by striking subsection (c)(1)
and inserting
subsection (c)
;
in subsection (c)—
by
striking (1)
after (c)
; and
by striking paragraphs (2) and (3); and
in subsection
(e)(1), by striking subsection (c)(1)
and inserting
subsection (c)
.
Selected Reserve program
In general
Subsection (a)(1) of section 3012 of such title is amended—
in subparagraph
(B), by striking or
at the end;
in subparagraph
(C), by adding or
at the end; and
by adding at the end the following new subparagraph:
after September 30, 2009—
receives a commission as an officer in the Armed Forces—
upon graduation from the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, or the Coast Guard Academy; or
upon completion of a Senior Reserve Officers' Training Corps program under chapter 103 of title 10; and
completes at least five years of continuous active duty in the Armed Forces (excluding any period of obligated service in connection with receipt of a commission as an officer in the Armed Forces under clause (i) and excluding any other period of obligated service in connection with education, training, or instruction provided or funded, whether in whole or in part, by the United States);
.
Conforming amendments
Such section is further amended—
in subsection
(c), by striking subsection (d)(1)
and inserting
subsection (d)
;
in subsection (d)—
by
striking (1)
after (d)
; and
by striking paragraphs (2) and (3); and
in subsection
(f)(1), by striking subsection (d)(1)
and inserting
subsection (d)
.
Amount of basic educational assistance
Section 3015(c) of such title is amended—
in paragraph (1),
by striking paragraph (2)
and inserting paragraphs (2)
and (3)
; and
by adding at the end the following new paragraph:
Paragraph (1) of this section also applies to the following:
An individual entitled to an educational assistance allowance under section 3011 of this title by reason of subsection (a)(1)(D) of such section.
An individual entitled to an educational assistance allowance under section 3012 of this title by reason of subsection (a)(1)(D) of such section.
.
Effective date
The amendments made by this section shall take effect on October 1, 2009.
Opportunity for current and certain retired VEAP-era personnel to enroll in basic educational assistance under the Montgomery GI Bill
Opportunity for current and certain retired VEAP-era personnel to enroll
In general
Chapter 30 of title 38, United States Code, is amended by inserting after section 3018C the following new section:
Opportunity for current and certain retired VEAP-era personnel to enroll
In general
An individual described in subsection (b) who makes an election described in paragraph (5) of such subsection is entitled to basic educational assistance under this chapter, subject to the provisions of subsection (d).
Covered individuals
An individual described in this subsection is an individual who meets each of the following requirements:
The individual first became a member of the Armed Forces or first entered on active duty as a member of the Armed Forces on or after January 1, 1977, but before July 1, 1985.
The individual, as of the date of the individual's election under paragraph (5)—
is serving on active duty without a break in service (other than as described in section 3202(1)(C) of this title) since the date the individual first became such a member or first entered on active duty as such a member; or
is retired from the Armed Forces after serving at least 20 years on active duty in the Armed Forces, which service included service on active duty in the Armed Forces on or after September 11, 2001, and elected not to participate in the program of educational assistance under chapter 32 of this title.
The individual, before applying for benefits under this section, has completed the requirements of a secondary school diploma (or equivalency certificate) or has successfully completed the equivalent of 12 semester hours in a program of education leading to a standard college degree, but has not completed the requirements for nor been awarded a bachelor's degree.
The individual—
in the case of an individual described by paragraph (2)(A), is discharged with an honorable discharge or released with service characterized as honorable by the Secretary concerned; or
in the case of an individual described by paragraph (2)(B), was discharged with an honorable discharge or released with service characterized as honorable by the Secretary concerned.
During the one-year period beginning on October 1, 2009, the individual makes an irrevocable election to receive benefits under this section pursuant to procedures which the Secretary of each military department shall provide in accordance with regulations prescribed by the Secretary of Defense for the purpose of carrying out this section or which the Secretary of Transportation shall provide for such purpose with respect to the Coast Guard when it is not operating as a service in the Navy.
Reduction of pay; collection and payment of amounts
In the case of an individual described by subsection (b) who makes an election under this section to become entitled to basic educational assistance under this chapter—
the basic pay or retired or retainer pay, as applicable, of the individual shall be reduced (in a manner determined by the Secretary concerned) until the total amount by which such pay is reduced is $2,700; or
to the extent that the basic pay of the individual is not so reduced before the individual’s discharge or release from active duty as described in subsection (d)(4)(A), the Secretary concerned shall collect from the individual an amount equal to the difference between $2,700 and the total amount of reductions with respect to the individual under subparagraph (A).
An individual covered by paragraph (1) may at any time pay the Secretary concerned an amount equal to the difference between the total of the reductions otherwise required with respect to the individual under that paragraph and the total amount of the reductions with respect to the individual under that paragraph at the time of the payment.
Any amounts collected under paragraph (1)(B) or paid under paragraph (2) shall be paid into the Department of Defense Education Benefits Fund under section 2006 of title 10.
The total amount of reductions in pay, or of collections or payments, required with respect to an individual under paragraph (1) shall be achieved not later than 12 months after the date on which the individual makes an election under subsection (b)(5).
No amount of educational assistance allowance under this chapter shall be paid to an individual covered by paragraph (1) until the date on which the total amount of reductions in pay, or of collections or payments, required with respect to the individual under paragraph (1) is achieved.
Limitations on basic educational assistance
The basic educational assistance allowance payable under this chapter to an individual entitled to such educational assistance allowance under this section shall be payable at the monthly rate of basic educational assistance payable under section 3015(a)(1)(B) of this title.
Basic educational assistance under this section shall be available only for pursuit of a non-degree vocational training program, an associate degree, or a bachelor's degree, but shall not be available for pursuit of a masters degree or other advanced college degree.
An individual entitled under this section to basic educational assistance under this chapter is entitled to the educational stipend provided under section 3020A of this title.
Entitlement under this section to basic educational assistance under this chapter is not transferrable under the provisions of section 3020 of this title.
An individual entitled under this section to basic educational assistance under this chapter is not eligible for the following:
The use of basic educational assistance benefits under this chapter for the repayment of Federal student loans under section 3020B of this title.
Supplemental educational assistance authorized by subchapter III of this chapter.
Except as provided in subparagraph (B), the provisions of section 3031 of this title shall apply to the use of entitlement under this section to basic educational assistance under this chapter.
In the case of an individual entitled under this section to basic educational assistance under this chapter who is described by subsection (b)(2)(B), the period during which the individual may use such entitlement expires on October 1, 2019.
Outreach
The Secretary shall, in coordination with the Secretary of Defense, provide for notice of the opportunity under this section to elect to become entitled to basic educational assistance under this chapter.
.
Clerical amendment
The table of sections at the beginning of chapter 30 of such title is amended by inserting after the item relating to section 3018C the following new item:
3018D. Opportunity for current and certain retired VEAP-era personnel to enroll.
.
Conforming amendments
Section 3017(b)(1) of such title is amended—
in subparagraphs
(A) and (C), by striking or 3018C(e)
and inserting
3018C(e), or 3018D(c)
; and
in subparagraph
(B), by striking or 3018C(e) of this title
after section
3018C(e), or 3018D(c) of this title or paid by the individual under section
3018D(c) of this title
.
College Patriots Grant Program
Program authorized
In general
Chapter 36 of title 38, United States Code, is amended by adding at the end the following new subchapter:
College Patriots Grants
College Patriots Grant Program
Purpose
It is the purpose of this section to provide, through a partnership with the Department and institutions of higher education, supplemental educational grants to assist in making available the benefits of postsecondary education to qualified veterans by meeting such veterans' unmet financial need.
Establishment of program
The Secretary shall carry out a supplemental educational grant program under which—
an institution of higher education participating in the program voluntarily provides a covered individual enrolled in the institution with the non-Federal share of a percentage of the covered individual's unmet financial need determined in accordance with subsection (e); and
the Secretary provides the Federal share of a percentage of the covered individual's unmet financial need determined in accordance with subsection (e).
Designation of program
The program under this section shall be known as the
College Patriots Grant Program
.
Institutional eligibility criteria
Assistance may be made available under this section only to an institution of higher education that satisfies any criteria specified by the Secretary. Such criteria shall include an agreement or other appropriate assurance from the institution of higher education that—
the non-Federal share of a covered individual's unmet financial need awarded under this section shall be provided from non-Federal resources, including—
institutional grants and scholarships;
tuition or fee waivers;
State scholarships; and
foundation or other charitable organization funds; and
funds made available under this section shall be provided to a covered individual for whom the institution of higher education has made a determination that the covered individual has an unmet financial need, which determination shall be made before including Federal student loans under title IV of the Higher Education Act of 1965 in the covered individual's financial aid package.
Federal share; non-Federal share
In general
The Secretary shall not approve an institution of higher education for participation in the College Patriots Grant Program unless the institution of higher education has provided, in the manner required by the Secretary, the following:
An agreement or other assurance that the institution of higher education will provide the non-Federal share in accordance with this subsection.
Information on the specific methods by which the non-Federal share shall be paid.
An acknowledgment that the non-Federal share provided under this subsection shall supplement and not supplant other Federal and non-Federal funds.
Federal and non-Federal shares
Each institution of higher education participating in the program under this section shall select one of the three contribution percentage tiers described in paragraph (3) for purposes of meeting a percentage of the unmet financial needs of covered individuals enrolled in the institution.
Percentage contribution tiers
25 percent tier
In the case of a covered individual enrolled in the institution who has an unmet financial need that is—
less than $8,000, the non-Federal share shall be 12.5 percent of the unmet financial need and the Federal share shall be 12.5 percent of the unmet financial need, except that the Federal share shall not exceed $1,000; and
equal to or greater than $8,000, the Federal share shall be $1,000 and the non-Federal share shall be 25 percent of the covered individual's unmet financial need minus $1,000.
50 percent tier
In the case of a covered individual enrolled in the institution who has an unmet financial need that is—
less than $8,000, the non-Federal share shall be 25 percent of the unmet financial need and the Federal share shall be 25 percent of the unmet financial need, except that the Federal share shall not exceed $2,000; and
equal to or greater than $8,000, the Federal share shall be $2,000 and the non-Federal share shall be 50 percent of the covered individual's unmet financial need minus $2,000.
100 percent tier
In the case of a covered individual enrolled in the institution who has an unmet financial need that is—
less than $6,000, the non-Federal share shall be 50 percent of the unmet financial need and the Federal share shall be 50 percent of the unmet financial need, except that the Federal share shall not exceed $3,000; and
equal to or greater than $6,000, the Federal share shall be $3,000 and the non-Federal share shall be 100 percent of the covered individual's unmet financial need minus $3,000.
Regulations
The Secretary shall prescribe regulations necessary to implement and administer the College Patriots Grant Program, including regulations establishing the procedures for determining eligibility for the program, applying for supplemental educational grants under the program, and distributing the Federal share provided by the Secretary under the program.
Outreach
The Secretary of Veterans Affairs, in coordination with the Secretary of Defense and the Secretary of Education, shall—
make available to the public on the Internet website of the Department—
a current list of institutions of higher education participating in the College Patriots Grant Program; and
information on the extent of participation of each institution of higher education participating in the College Patriots Grant Program;
make available to the public on the Internet website of the Department information about all Federal and State education benefits that members of the regular components of the Armed Forces, members of the reserve components of the Armed Forces, veterans, and their dependents may be eligible to receive; and
make available to institutions of higher education information about the College Patriots Grant Program and take appropriate actions to encourage broad participation of institutions of higher education in the program.
Awards for institutional recognition
The Secretary may establish and administer an awards program to recognize the extent of an institution of higher education's participation in the College Patriots Grant Program.
Definitions
In this section:
Cost of attendance
The term cost of attendance has the meaning given the term in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll).
Covered individual
The term covered individual means an individual who—
is enrolled in an institution of higher education that is participating in the College Patriots Grant Program;
has such amount of remaining entitlement to educational assistance under chapter 30 or 32 of this title, or under chapter 1606 or 1607 of title 10, as the Secretary may require for purposes of this section; and
after receipt of any of the educational assistance described in subparagraph (B), has an unmet financial need to attend the institution of higher education for which a supplemental educational grant is sought.
Institution of higher education
The term institution of higher education has the meaning given the term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002).
Unmet financial need
The term unmet financial need means, with respect to a covered individual, the cost of attendance for the covered individual to attend an institution of higher education participating in the College Patriots Grant Program, minus the sum of—
grant and work assistance received by the covered individual under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); and
any educational assistance payments received by the covered individual through any programs administered by the Department of Veterans Affairs or the Department of Defense.
.
Clerical amendment
The table of sections at the beginning of chapter 36 of such title is amended by adding at the end the following new items:
SUBCHAPTER IV—College Patriots Grants
3699A. College Patriots Grant Program.
.
Effective date
The amendments made by this section shall take effect one year after the date of the enactment of this Act, and shall apply to terms, quarters, or semesters beginning on or after that date.
