I 

111TH CONGRESS 

1ST SESSION H. R. 2456 

To amend section 484B of Higher Education Act of 1965 to provide for 

tuition reimbursement and loan forgiveness to students who withdraw 

from an institution of higher education to serve in the uniformed services, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 18, 2009 

Mrs. DAVIS of California (for herself, Mr. BISHOP of New York, Mr. HARE, 

Mr. CUMMINGS, Mr. WU, and Mr. COSTELLO) introduced the following 

bill; which was referred to the Committee on Education and Labor 

A BILL 

To amend section 484B of Higher Education Act of 1965 

to provide for tuition reimbursement and loan forgiveness 

to students who withdraw from an institution of higher 

education to serve in the uniformed services, and for 

other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Education 

5 Tuition Support Act of 2009’’ or the ‘‘VETS Act of 

6 2009’’. 


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1 SEC. 2. TUITION RELIEF FOR POSTSECONDARY STUDENTS 

2 CALLED TO MILITARY SERVICE. 

3 (a) IN GENERAL.—Section 484B(b)(2) of the Higher 

4 Education Act of 1965 (20 U.S.C. 1091b(b)(2)) is amend5 ed by adding at the end the following: 

6 ‘‘(F) TUITION RELIEF FOR STUDENTS

7 CALLED TO MILITARY SERVICE.— 

8 ‘‘(i) TUITION RELIEF.— 

9 ‘‘(I) IN GENERAL.—Subject to 

10 subclause (II), whenever a student’s 

11 withdrawal from an institution of 

12 higher education is necessitated by 

13 reason of service in the uniformed 

14 services, the institution shall refund to 

15 such student the tuition and fees paid 

16 by, or on behalf of, such student for 

17 the payment period or period of en18 rollment for which such student did 

19 not receive academic credit as a result 

20 of such withdrawal. 

21 ‘‘(II) EXCEPTION.—Subclause (I) 

22 shall not apply to the tuition or fees 

23 paid on behalf of the student— 

24 ‘‘(aa) from scholarships 

25 awarded to the student by the in26 stitution of higher education; or 


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1 ‘‘(bb) through funds award2 ed under this title. 

3 ‘‘(ii) WAIVER OF REPAYMENT BY STU4 DENTS CALLED TO MILITARY SERVICE.—In 

5 addition to the waivers authorized by sub6 paragraphs (D) and (E), the Secretary 

7 shall waive the amounts that students are 

8 required to return under this section if the 

9 withdrawals on which the returns are 

10 based are withdrawals necessitated by rea11 son of service in the uniformed services. 

12 ‘‘(iii) LOAN FORGIVENESS AUTHOR13 IZED.—Whenever a student’s withdrawal 

14 from an institution of higher education is 

15 necessitated by reason of service in the 

16 uniformed services, the Secretary shall, 

17 with respect to the payment period or pe18 riod of enrollment for which such student 

19 did not receive academic credit as a result 

20 of such withdrawal, carry out a program— 

21 ‘‘(I) through the holder of the 

22 loan, to assume the obligation to 

23 repay— 

24 ‘‘(aa) the outstanding prin25 ciple and accrued interest on any 


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1 loan assistance awarded to the 

2 student under part B (including 

3 to a parent on behalf of the stu4 dent under section 428B) for 

5 such payment period or period of 

6 enrollment; minus 

7 ‘‘(bb) any amount of such 

8 loan assistance returned by the 

9 institution in accordance with 

10 paragraph (1) of this subsection 

11 for such payment period or pe12 riod of enrollment; and 

13 ‘‘(II) to cancel— 

14 ‘‘(aa) the outstanding prin15 ciple and accrued interest on the 

16 loan assistance awarded to the 

17 student under part D or E (in18 cluding a Federal Direct PLUS 

19 loan awarded to a parent on be20 half of the student) for such pay21 ment period or period of enroll22 ment; minus 

23 ‘‘(bb) any amount of such 

24 loan assistance returned by the 

25 institution in accordance with 


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1 paragraph (1) of this subsection 

2 for such payment period or pe3 riod of enrollment. 

4 ‘‘(iv) REIMBURSEMENT FOR CAN5 CELLATION OF PERKINS LOANS.—The Sec6 retary shall pay to each institution for 

7 each fiscal year an amount equal to the ag8 gregate of the amounts of Federal Perkins 

9 loans in such institutions’s student loan 

10 fund which are cancelled pursuant to 

11 clause (iii)(II) for such fiscal year, minus 

12 an amount equal to the aggregate of the 

13 amounts of any such loans so canceled 

14 which were made from Federal capital con15 tributions to its student loan fund provided 

16 by the Secretary under section 468. None 

17 of the funds appropriated pursuant to sec18 tion 461(b) shall be available for payments 

19 pursuant to this paragraph. To the extent 

20 feasible, the Secretary shall pay the 

21 amounts for which any institution qualifies 

22 under this paragraph not later than 3 

23 months after the institution files an insti24 tutional application for campus-based 

25 funds. 


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1 ‘‘(v) LOAN ELIGIBILITY AND LIMITS

2 FOR STUDENTS.—Any amounts that are 

3 returned by an institution in accordance 

4 with paragraph (1), or forgiven or waived 

5 by the Secretary under this subparagraph, 

6 with respect to a payment period or period 

7 of enrollment for which a student did not 

8 receive academic credit as a result of with9 drawal necessitated by reason of service in 

10 the uniformed services, shall not be in11 cluded in the calculation of the student’s 

12 annual or aggregate loan limits for assist13 ance under this title, or otherwise affect 

14 the student’s eligibility for grants or loans 

15 under this title. 

16 ‘‘(vi) DEFINITION.—In this subpara17 graph, the term ‘service in the uniformed 

18 services’ has the meaning given such term 

19 in section 484C(a).’’. 

20 (b) EFFECTIVE DATE.— 

21 (1) IN GENERAL.—The amendments made by 

22 this Act shall take effect for periods of service in the 

23 uniformed services beginning after the date of the 

24 enactment of this Act. 


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1 (2) DEFINITION.—In this subsection, the term 

2 ‘‘period of service in the uniformed services’’ means 

3 the period beginning 30 days prior to the date a stu4 dent is required to report to service in the uniformed 

5 services (as defined in section 484C(a)) and ending 

6 when such student returns from such service. 

Æ 


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