I 

111TH CONGRESS 

1ST SESSION H. R. 1336 

To amend title 38, United States Code, to make certain improvements in 

the basic educational assistance program administered by the Secretary 

of Veterans Affairs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 5, 2009 

Ms. HERSETH SANDLIN (for herself and Mr. BOOZMAN) introduced the following bill; which was referred to the Committee on Veterans’ Affairs, 

and in addition to the Committee on Armed Services, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To amend title 38, United States Code, to make certain 

improvements in the basic educational assistance program administered by the Secretary of Veterans Affairs, 

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 Improvement Act of 2009’’. 


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1 SEC. 2. USE OF EDUCATIONAL ASSISTANCE FOR BUSINESS 

2 COURSES AND SEMINARS. 

3 (a) IN GENERAL.—The Secretary of Veterans Affairs 

4 shall ensure that individuals entitled to educational assist5 ance under laws administered by the Secretary are entitled 

6 to use such assistance for business courses and seminars, 

7 if such courses or seminars are related to the operation 

8 of a business, and for continuing education courses. The 

9 Secretary shall treat the courses referred to in the pre10 ceding sentence in a similar manner as licensing and cer11 tification courses. 

12 (b) EFFECTIVE DATE.—Subsection (a) shall take ef13 fect on September 1, 2010. 

14 SEC. 3. USE OF EDUCATIONAL ASSISTANCE FOR COURSES 

15 TAKEN TO PREPARE FOR LICENSING OR CER16 TIFICATION TESTS. 

17 (a) BASIC EDUCATIONAL ASSISTANCE.—Section 

18 3452(b) of title 38, United States Code, is amended by 

19 inserting after the fourth sentence the following new sen20 tence: ‘‘Such term also includes preparatory courses for 

21 licensing or certification tests described in the preceding 

22 sentence, as designated by the Secretary.’’. 

23 (b) SURVIVORS’ AND DEPENDENTS’ EDUCATIONAL

24 ASSISTANCE.—Section 3501(a)(5) of title 38, United 

25 States Code, is amended by inserting after the second sen26 tence the following new sentence: ‘‘Such term also includes 


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1 preparatory courses for licensing or certification tests de2 scribed in the preceding sentence, as designated by the 

3 Secretary.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 subsections (a) and (b) shall take effect on September 1, 

6 2010. 

7 SEC. 4. USE OF EDUCATIONAL ASSISTANCE TO REPAY FED8 ERAL STUDENT LOANS. 

9 (a) MONTGOMERY GI BILL.— 

10 (1) IN GENERAL.—Subchapter II of chapter 30 

11 of title 38, United States Code, is amended by in12 serting after section 3020 the following new section: 

13 ‘‘§ 3020A. Use of educational assistance benefits for 

14 the repayment of Federal student loans 

15 for certain courses of education 

16 ‘‘(a) USE OF BENEFITS.—Notwithstanding any other 

17 provision of this chapter, and subject to subsections (b) 

18 through (e), an individual who is serving on active duty 

19 and who is entitled to educational assistance under this 

20 subchapter may apply amounts of such educational assist21 ance otherwise available to the individual to repay some 

22 or all of any Federal student loan balance owed by the 

23 individual for a course of education pursued by the indi24 vidual. 


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1 ‘‘(b) LIMITATIONS ON PAYMENTS.—(1) The amount 

2 of an individual’s entitlement to educational assistance 

3 that the individual may apply to the repayment of a stu4 dent loan balance under subsection (a) may not exceed 

5 $7,000 in any 12-month period. 

6 ‘‘(2) In no event shall payment of educational assist7 ance under this section exceed the amount of the individ8 ual’s available entitlement under this chapter. 

9 ‘‘(3) An individual entitled to educational assistance 

10 under this subchapter may not apply such educational as11 sistance to any of the following: 

12 ‘‘(A) A loan made to the parents of a dependent 

13 student under section 428B of the Higher Education 

14 Act of 1965. 

15 ‘‘(B) A Federal Direct PLUS Loan made to the 

16 parents of a dependent student. 

17 ‘‘(C) A loan made under section 428C or 

18 455(g) of such Act, to the extent that such loan was 

19 used to repay— 

20 ‘‘(i) a loan made to the parent of a de21 pendent student under section 428B of such 

22 Act; or 

23 ‘‘(ii) a Federal Direct PLUS Loan made to 

24 the parents of a dependent student. 


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1 ‘‘(c) AMOUNT OF PAYMENTS.—The Secretary shall 

2 make monthly payments under this section in such 

3 amounts as the individual may elect for the repayment of 

4 a Federal student loan of such an individual. 

5 ‘‘(d) ARRANGEMENTS TO MAKE PAYMENTS.—The 

6 Secretary shall enter into such arrangements, and shall 

7 prescribe such regulations, as may be necessary to carry 

8 out this section. 

9 ‘‘(e) FEDERAL STUDENT LOAN DEFINED.—In this 

10 section, the term ‘Federal student loan’ means any loan 

11 made under title IV of the Higher Education Act of 1965 

12 (20 U.S.C. 1070 et seq.).’’. 

13 (2) CLERICAL AMENDMENT.—The table of sec14 tions at the beginning of such chapter is amended 

15 by inserting after the item relating to section 3020 

16 the following new item: 

‘‘3020A. Use of educational assistance benefits for the repayment of Federal 

student loans for certain courses of education.’’. 

17 (b) POST-9–11 EDUCATIONAL ASSISTANCE PRO18 GRAM.— 

19 (1) IN GENERAL.—Subchapter II of chapter 33 

20 of title 38, United States Code, is amended by in21 serting after section 3319 the following new section: 


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1 ‘‘§ 3320. Use of educational assistance benefits for the 

2 repayment of Federal student loans for 

3 certain courses of education 

4 ‘‘(a) USE OF BENEFITS.—Notwithstanding any other 

5 provision of this chapter, and subject to subsections (b) 

6 through (e), an individual who is serving on active duty 

7 and who is entitled to educational assistance under this 

8 subchapter may apply amounts of such educational assist9 ance otherwise available to the individual to repay some 

10 or all of any Federal student loan balance owed by the 

11 individual for a course of education pursued by the indi12 vidual. 

13 ‘‘(b) LIMITATIONS ON PAYMENTS.— 

14 ‘‘(1) LIMITATION ON AMOUNT IN ANY 12- 

15 MONTH PERIOD.—The amount of an individual’s en16 titlement to educational assistance that the indi17 vidual may apply to the repayment of a student loan 

18 balance under subsection (a) may not exceed $6,000 

19 in any 12-month period. 

20 ‘‘(2) LIMITATION ON TOTAL AMOUNT.—In no 

21 event shall payment of educational assistance under 

22 this section exceed the amount of the individual’s 

23 available entitlement under this chapter. 

24 ‘‘(3) PROHIBITION ON USE FOR CERTAIN

25 LOANS.—An individual entitled to educational assistVerDate Nov 24 2008 02:48 Mar 07, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1336.IH H1336

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1 ance under this subchapter may not apply such edu2 cational assistance to any of the following: 

3 ‘‘(A) A loan made to the parents of a de4 pendent student under section 428B of the 

5 Higher Education Act of 1965. 

6 ‘‘(B) A Federal Direct PLUS Loan made 

7 to the parents of a dependent student. 

8 ‘‘(C) A loan made under section 428C or 

9 455(g) of such Act, to the extent that such loan 

10 was used to repay— 

11 ‘‘(i) a loan made to the parent of a 

12 dependent student under section 428B of 

13 such Act; or 

14 ‘‘(ii) a Federal Direct PLUS Loan 

15 made to the parents of a dependent stu16 dent. 

17 ‘‘(c) AMOUNT OF PAYMENTS.—The Secretary shall 

18 make monthly payments under this section in such 

19 amounts as the individual may elect for the repayment of 

20 a Federal student loan of such an individual. 

21 ‘‘(d) ARRANGEMENTS TO MAKE PAYMENTS.—The 

22 Secretary shall enter into such arrangements, and shall 

23 prescribe such regulations, as may be necessary to carry 

24 out this section. 


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1 ‘‘(e) FEDERAL STUDENT LOAN DEFINED.—In this 

2 section, the term ‘Federal student loan’ means any loan 

3 made under title IV of the Higher Education Act of 1965 

4 (20 U.S.C. 1070 et seq.).’’. 

5 (2) CLERICAL AMENDMENT.—The table of sec6 tions at the beginning of such chapter is amended 

7 by inserting after the item relating to section 3319 

8 the following new item: 

‘‘3320. Use of educational assistance benefits for the repayment of Federal student loans for certain courses of education.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply with respect to educational assist11 ance paid for months beginning on or after September 1, 

12 2010. 

13 SEC. 5. OPPORTUNITY TO WITHDRAW ELECTION NOT TO 

14 ENROLL IN EDUCATIONAL ASSISTANCE PRO15 GRAM. 

16 (a) BASIC EDUCATIONAL ASSISTANCE FOR ACTIVE

17 DUTY SERVICE.— 

18 (1) OPPORTUNITY TO WITHDRAW.—Subsection 

19 (c) of section 3011 of title 38, United States Code, 

20 is amended by adding at the end the following new 

21 paragraph: 

22 ‘‘(4) An individual who makes an election not to re23 ceive educational assistance under paragraph (1) may 

24 withdraw that election at any time and, after making such 


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1 withdrawal, shall be entitled to educational assistance 

2 under this chapter in the same manner as if the individual 

3 had never made that election, if, at the time the individual 

4 makes such withdrawal, the individual is serving on active 

5 duty as a member of the Armed Forces.’’. 

6 (2) CONFORMING AMENDMENT.—Paragraph (1) 

7 of such subsection is amended in the third sentence 

8 by striking ‘‘Any individual’’ and inserting ‘‘Except 

9 as provided in paragraph (4), any individual’’. 

10 (b) BASIC EDUCATIONAL ASSISTANCE FOR SERVICE

11 IN THE SELECTED RESERVE.— 

12 (1) OPPORTUNITY TO WITHDRAW.—Subsection 

13 (d) of section 3012 of title 38, United States Code, 

14 is amended by adding at the end the following new 

15 paragraph: 

16 ‘‘(4) An individual who makes an election not to re17 ceive educational assistance under paragraph (1) may 

18 withdraw that election at any time and, after making such 

19 withdrawal, shall be entitled to educational assistance 

20 under this chapter in the same manner as if the individual 

21 had never made that election, if, at the time the individual 

22 makes such withdrawal, the individual is serving on active 

23 duty as a member of the Armed Forces.’’. 

24 (2) CONFORMING AMENDMENT.—Paragraph (1) 

25 of such subsection is amended in the third sentence 


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1 by striking ‘‘Any individual’’ and inserting ‘‘Except 

2 as provided in paragraph (4), any individual’’. 

3 (c) EFFECTIVE DATE.—The amendments made by 

4 subsections (a) and (b) shall take effect on September 1, 

5 2010, and shall apply with respect to an individual who 

6 is serving on active duty as a member of the Armed Forces 

7 on or after that date. 

8 SEC. 6. EXTENSION OF INCREASE IN BENEFIT FOR CER9 TAIN INDIVIDUALS PURSUING APPRENTICE10 SHIPS OR ON-JOB TRAINING. 

11 (a) MEMBERS OF THE SELECTED RESERVE.—Sub12 section (d) of section 103 of the Veterans Earn and Learn 

13 Act of 2004 (Public Law 108–454; 38 U.S.C. 3032 note) 

14 is amended by striking ‘‘January 1, 2008’’ and inserting 

15 ‘‘January 1, 2014’’. 

16 (b) SURVIVORS AND DEPENDENTS.—Subsection (c) 

17 of such section is amended by striking ‘‘January 1, 2008’’ 

18 and inserting ‘‘January 1, 2014’’. 

19 (c) CERTAIN OTHER INDIVIDUALS.—Subsection (a) 

20 of such section is amended by striking ‘‘January 1, 2008’’ 

21 and inserting ‘‘January 1, 2014’’. 

22 (d) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect on September 1, 2010. 


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1 SEC. 7. PROVISION OF BASIC EDUCATIONAL ASSISTANCE 

2 BENEFITS FOR VETERANS DISCHARGED 

3 FROM ACTIVE DUTY WITH GENERAL DIS4 CHARGE. 

5 (a) MONTGOMERY GI BILL.— 

6 (1) ACTIVE DUTY SERVICE.—Section 

7 3011(a)(3)(B) of title 38, United States Code, is 

8 amended by inserting ‘‘or a general discharge (under 

9 honorable conditions)’’ before the period at the end. 

10 (2) SERVICE IN SELECTED RESERVE.—Section 

11 3012(a)(3)(A) of such title is amended by inserting 

12 ‘‘or a general discharge (under honorable condi13 tions)’’ before the semicolon. 

14 (b) POST-9–11 EDUCATIONAL ASSISTANCE PRO15 GRAM.—Section 3311(c)(1) of such title is amended by in16 serting ‘‘or a general discharge (under honorable condi17 tions)’’ before the period at the end. 

18 (c) EFFECTIVE DATE.—The amendments made by 

19 subsections (a) and (b) shall apply with respect to an indi20 vidual who is discharged from service in the Armed Forces 

21 on or after September 1, 2010. 


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1 SEC. 8. INCREASE IN AMOUNT OF REPORTING FEE PAY2 ABLE TO EDUCATIONAL INSTITUTIONS THAT 

3 ENROLL VETERANS RECEIVING EDU4 CATIONAL ASSISTANCE. 

5 (a) INCREASE IN AMOUNT OF FEE.—Subsection (c) 

6 of section 3684 of title 38, United States Code, is amend7 ed— 

8 (1) by striking ‘‘$7’’ and inserting ‘‘$21’’; and 

9 (2) by striking ‘‘$11’’ and inserting ‘‘$21’’. 

10 (b) TECHNICAL CORRECTION.—Subsection (a) of 

11 such section is amended by striking the second comma 

12 after ‘‘34’’. 

13 (c) EFFECTIVE DATE.—The amendments made by 

14 subsections (a) and (b) shall take effect on September 1, 

15 2010. 

16 SEC. 9. PROVISION OF ADDITIONAL AREAS OF WORK17 STUDY FOR VETERANS. 

18 (a) IN GENERAL.—Subsection (a)(4) of section 3485 

19 of title 38, United States Code, is amended by adding at 

20 the end the following new subparagraph: 

21 ‘‘(G) The provision of placement services de22 scribed in section 3104(a)(5) of this title at an edu23 cational institution carried out under the supervision 

24 of a Department employee.’’. 


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1 (b) WORK STUDY FOR STUDENTS ENROLLED ON

2 HALF-TIME BASIS.—Subsection (b) of such section is 

3 amended— 

4 (1) in the first sentence, by striking ‘‘three5 quarters’’ and inserting ‘‘half’’; and 

6 (2) in the third sentence, by striking ‘‘three7 quarter-time’’ and inserting ‘‘half-time’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply with respect to agreements entered 

10 into under section 3485 of title 38, United States Code, 

11 on or after September 1, 2010. 

12 SEC. 10. 5-YEAR PILOT PROGRAM FOR ON-CAMPUS WORK13 STUDY POSITIONS. 

14 (a) ESTABLISHMENT OF PILOT PROGRAM.—Begin15 ning not later than two years after the date of the enact16 ment of this Act, the Secretary of Veterans Affairs shall 

17 conduct a five-year pilot project to test the feasibility and 

18 advisability of expanding the scope of qualifying work19 study activities under subsection (a)(4) of section 3485 

20 of title 38, United States Code, including work-study posi21 tions available on site at educational institutions. 

22 (b) TYPE OF WORK-STUDY POSITIONS.—The work23 study positions referred to in subsection (a) may include 

24 positions in academic departments (including positions as 

25 tutors or research, teaching, and lab assistants) and in 


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1 student services (including positions in career centers and 

2 financial aid, campus orientation, cashiers, admissions, 

3 records, and registration offices). 

4 (c) REGULATIONS.—The Secretary shall prescribe 

5 regulations to carry out the pilot project under this sec6 tion, including regulations providing for the supervision of 

7 work-study positions referred to in subsection (a) by ap8 propriate personnel. 

9 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to the Secretary 

11 $10,000,000 for each of the fiscal years during which the 

12 Secretary carries out the pilot project under this section. 

13 SEC. 11. MODIFICATION OF ADVANCE PAYMENT OF INITIAL 

14 EDUCATIONAL ASSISTANCE OR SUBSISTENCE 

15 ALLOWANCE. 

16 (a) MODIFICATION.—Section 3680(d)(2) of title 38, 

17 United States Code, is amended by inserting after the 

18 third sentence the following new sentence: ‘‘For purposes 

19 of the entitlement to educational assistance of the veteran 

20 or person receiving an advance payment under this sub21 section, the advance payment shall be charged against the 

22 final month of the entitlement of the person or veteran 

23 and, if necessary, the penultimate such month. In no event 

24 may any veteran or person receive more than one advance 


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1 payment under this subsection during any academic 

2 year.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 subsection (a) shall apply with respect to an advance pay5 ment of educational assistance made on or after Sep6 tember 1, 2010. 

7 SEC. 12. CONSIDERATION OF ADDITIONAL CONTRIBUTIONS 

8 AND PAYMENTS IN CALCULATING ENTITLE9 MENT CHARGE FOR CERTAIN PROGRAMS OF 

10 EDUCATION. 

11 (a) TUITION ASSISTANCE.—Section 3014(b)(2)(C) of 

12 title 38, United States Code, is amended by striking ‘‘or 

13 (e)(1) of section 3015 of this title,’’ and inserting ‘‘(e)(1), 

14 or (g) of section 3015 of this title, or section 16131(I) 

15 of title 10,’’. 

16 (b) FLIGHT TRAINING.—Section 3032(e)(3) of such 

17 title is amended by striking ‘‘or (e)(1) of section 3015 of 

18 this title,’’ and inserting ‘‘(e)(1), or (g) of section 3015 

19 of this title, or section 16131(I) of title 10,’’. 

20 (c) LICENSING AND CERTIFICATION TESTS.—Section 

21 3032(f)(2) of such title is amended by striking ‘‘or (e)(1) 

22 of section 3015 of this title,’’ and inserting ‘‘(e)(1), or (g) 

23 of section 3015 of this title, or section 16131(I) of title 

24 10,’’. 


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1 SEC. 13. ACCELERATED PAYMENT OF EDUCATIONAL AS2 SISTANCE. 

3 (a) IN GENERAL.—Chapter 33 of title 38, United 

4 States Code, as amended by section 4, is further amended 

5 by inserting after section 3320, as added by section 4, the 

6 following new section: 

7 ‘‘§ 3320A. Accelerated payment of educational assist8 ance 

9 ‘‘(a) PAYMENT ON ACCELERATED BASIS.—The edu10 cational assistance allowance payable under this chapter 

11 with respect to an eligible person described in subsection 

12 (b) may, upon the election of such eligible person, be paid 

13 on an accelerated basis in accordance with this section. 

14 ‘‘(b) ELIGIBLE PERSON.—An eligible person de15 scribed in this subsection is a member of a reserve compo16 nent entitled to educational assistance under this chapter 

17 who is— 

18 ‘‘(1) enrolled in an approved program of edu19 cation not exceeding two years in duration and not 

20 leading to an associate, bachelors, masters, or other 

21 degree, subject to subsection (g); and 

22 ‘‘(2) charged tuition and fees for the program 

23 of education that, when divided by the number of 

24 months (and fractions thereof) in the enrollment pe25 riod, exceeds the amount equal to 200 percent of the 

26 monthly rate of educational assistance allowance 


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1 otherwise payable with respect to the person under 

2 section 3313 of this title. 

3 ‘‘(c) AMOUNT OF ACCELERATED PAYMENT.— 

4 ‘‘(1) AMOUNT.—The amount of the accelerated 

5 payment of educational assistance payable with re6 spect to an eligible person making an election under 

7 subsection (a) for a program of education shall be 

8 the lesser of— 

9 ‘‘(A) the amount equal to 60 percent of the 

10 established charges for the program of edu11 cation; or 

12 ‘‘(B) the aggregate amount of educational 

13 assistance allowance to which the person re14 mains entitled under this chapter at the time of 

15 the payment. 

16 ‘‘(2) ESTABLISHED CHARGES.— 

17 ‘‘(A) DEFINITION.—In this subsection, ex18 cept as provided in subparagraph (B), the term 

19 ‘established charges’, in the case of a program 

20 of education, means the actual charges (as de21 termined pursuant to regulations prescribed by 

22 the Secretary of Veterans Affairs) for tuition 

23 and fees which similarly circumstanced individ24 uals who are not eligible for benefits under this 

25 chapter and who are enrolled in the program of 


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1 education would be required to pay. Established 

2 charges shall be determined on the following 

3 basis: 

4 ‘‘(i) In the case of an individual en5 rolled in a program of education offered on 

6 a term, quarter, or semester basis, the tui7 tion and fees charged the individual for the 

8 term, quarter, or semester. 

9 ‘‘(ii) In the case of an individual en10 rolled in a program of education not of11 fered on a term, quarter, or semester 

12 basis, the tuition and fees charged the in13 dividual for the entire program of edu14 cation. 

15 ‘‘(B) EXCEPTION.—In this subsection, the term 

16 ‘established charges’ does not include any fees or 

17 payments attributable to the purchase of a vehicle. 

18 ‘‘(3) CERTIFICATION BY EDUCATIONAL INSTI19 TUTION.—The educational institution providing the 

20 program of education for which an accelerated pay21 ment of educational assistance allowance is elected 

22 by an eligible person under subsection (a) shall cer23 tify to the Secretary of Veterans Affairs the amount 

24 of the established charges for the program of edu25 cation. 


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1 ‘‘(d) TIME OF PAYMENT.—An accelerated payment 

2 of educational assistance allowance made with respect to 

3 an eligible person under this section for a program of edu4 cation shall be made not later than the last day of the 

5 month immediately following the month in which the Sec6 retary of Veterans Affairs receives a certification from the 

7 educational institution regarding— 

8 ‘‘(1) the person’s enrollment in and pursuit of 

9 the program of education; and 

10 ‘‘(2) the amount of the established charges for 

11 the program of education. 

12 ‘‘(e) CHARGE AGAINST ENTITLEMENT.—For each 

13 accelerated payment of educational assistance allowance 

14 made with respect to an eligible person under this section, 

15 the person’s entitlement to educational assistance under 

16 this chapter shall be charged the number of months (and 

17 any fraction thereof) determined by dividing the amount 

18 of the accelerated payment by the full-time monthly rate 

19 of educational assistance allowance otherwise payable with 

20 respect to the person under section 3313 of this title as 

21 of the beginning date of the enrollment period for the pro22 gram of education for which the accelerated payment is 

23 made. 

24 ‘‘(f) REGULATIONS.—The Secretary shall prescribe 

25 regulations to carry out this section. The regulations shall 


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1 include requirements, conditions, and methods for the re2 quest, issuance, delivery, certification of receipt and use, 

3 and recovery of overpayment of an accelerated payment 

4 of educational assistance allowance under this section. The 

5 regulations may include such elements of the regulations 

6 prescribed under section 3014A of this title as the Sec7 retary of Veterans Affairs considers appropriate for pur8 poses of this section. 

9 ‘‘(g) LIMITATION.—The aggregate amount of edu10 cational assistance payable under this section in any fiscal 

11 year for enrollments covered by subsection (b)(1) may not 

12 exceed $3,000,000.’’. 

13 (b) CLERICAL AMENDMENT.—The table of sections 

14 at the beginning of such chapter is amended by inserting 

15 after the item relating to section 3320 the following new 

16 item: 

‘‘3320A. Accelerated payment of educational assistance.’’. 

Æ 


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