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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1759 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 1759

    To amend title 38, United States Code, to authorize the use of 
  educational assistance under the Montgomery GI Bill to pay Federal 
                             student loans.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 21, 2005

 Mr. Andrews 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 authorize the use of 
  educational assistance under the Montgomery GI Bill to pay Federal 
                             student loans.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``GI Bill Flexibility Act''.

SEC. 2. USE OF EDUCATIONAL ASSISTANCE UNDER THE MONTGOMERY GI BILL TO 
              PAY FEDERAL STUDENT LOANS.

    (a) In General.--Subchapter II of chapter 30 of title 38, United 
States Code, is amended by inserting after section 3020 the following 
new section:
``Sec. 3020A. Use of educational assistance benefits for the repayment 
              of Federal student loans
    ``(a) In General.--Notwithstanding any other provision of this 
chapter, upon completion of an approved course of education, an 
individual entitled to educational assistance under this subchapter may 
apply amounts of educational assistance otherwise available to the 
individual under section 3015 of this title to repay some or all of any 
Federal student loan balance owed by the individual.
    ``(b) Payment Methodology.--The Secretary shall make payments in 
such form (whether lump-sum or monthly payments) and in such amounts as 
the individual may elect for the repayment of a Federal student loan of 
such an individual.
    ``(c) Limitation on Payments.--In no event shall payment of 
educational assistance under this section exceed the amount of the 
individual's available entitlement under this chapter.
    ``(d) Arrangements to Make Payments.--The Secretary shall enter 
into such arrangements, and shall prescribe such regulations, as may be 
necessary to carry out this section.
    ``(e) 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.). ''.
    (b) Clerical Amendment.--The table of sections of subchapter II of 
chapter 30 of such title is amended by inserting after the item 
relating to section 3020 the following new item:

``3020A. Use of educational assistance benefits for the repayment of 
                            Federal student loans.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to educational assistance paid for months beginning on or after 
the date of the enactment of this Act.
                                 <all>
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