I 

110TH CONGRESS 

2D SESSION H. R. 5684 

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 

APRIL 2, 2008 

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 Education and Labor, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Veterans Education Improvement Act of 2008’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Increase in amount of basic educational assistance. 

Sec. 3. Extension of time limitation for use of eligibility and entitlement to educational assistance. 

Sec. 4. Monthly stipend for recipients of educational assistance allowance. 

Sec. 5. Extension of period for collection of fee for basic educational assistance. 

Sec. 6. Use of educational assistance for business courses and seminars. 

Sec. 7. Use of educational assistance for courses taken to prepare for licensing 

or certification tests. 

Sec. 8. Use of educational assistance to repay Federal student loans. 

Sec. 9. Opportunity to withdraw election not to enroll in educational assistance 

program. 

Sec. 10. Montgomery GI Bill benefits not to reduce financial aid. 

Sec. 11. Extension of increase in benefit for certain individuals pursuing apprenticeships or on-job training. 

Sec. 12. Modification of amount available for reimbursement of State and local 

agencies administering veterans education benefits. 

Sec. 13. Provision of basic educational assistance benefits for veterans discharged from active duty with general discharge. 

Sec. 14. Increase in amount of reporting fee payable to educational institutions 

that enroll veterans receiving educational assistance. 

Sec. 15. Provision of additional areas of work-study for veterans. 

Sec. 16. 5-year pilot program for on-campus work-study positions. 

Sec. 17. Increase in employees for Education Service. 

Sec. 18. Upgrade of certain information technology. 

Sec. 19. Modification of advance payment of initial educational assistance or 

subsistence allowance. 

3 SEC. 2. INCREASE IN AMOUNT OF BASIC EDUCATIONAL AS4 SISTANCE. 

5 (a) INCREASE.—Section 3015 of title 38, United 

6 States Code, is amended— 

7 (1) in subsection (a)(1)— 

8 (A) in subparagraph (A), by striking ‘‘Jan9 uary 1, 2002, $800’’ and inserting ‘‘January 1, 

10 2009, $1,450’’; 

11 (B) by striking subparagraphs (B) and 

12 (C); and 


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1 (C) by redesignating subparagraph (D) as 

2 subparagraph (B); and 

3 (2) in subsection (b)(1)— 

4 (A) in subparagraph (A), by striking ‘‘Jan5 uary 1, 2002, $650’’ and inserting ‘‘January 1, 

6 2009, $1,250’’; 

7 (B) by striking subparagraphs (B) and 

8 (C); and 

9 (C) by redesignating subparagraph (D) as 

10 subparagraph (B). 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 subsection (a) shall apply with respect to a payment of 

13 educational assistance for a month beginning after the 

14 date that is 90 days after the date of the enactment of 

15 this Act. 

16 SEC. 3. EXTENSION OF TIME LIMITATION FOR USE OF ELI17 GIBILITY AND ENTITLEMENT TO EDU18 CATIONAL ASSISTANCE. 

19 (a) EXTENSION OF TIME LIMITATION.—Section 

20 3031 of title 38, United States Code, is amended by strik21 ing ‘‘10-year period’’ each place it appears and inserting 

22 ‘‘15-year period’’. 

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

24 subsection (a) shall apply with respect to an individual 

25 who is entitled to educational assistance under chapter 30 


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1 of such title on the date that is 90 days after the date 

2 of the enactment of this Act or who becomes entitled to 

3 educational assistance under such chapter after such date. 

4 SEC. 4. MONTHLY STIPEND FOR RECIPIENTS OF EDU5 CATIONAL ASSISTANCE ALLOWANCE. 

6 (a) ENTITLEMENT TO MONTHLY STIPEND.—Sub7 chapter II of chapter 30 of title 38, United States Code, 

8 is amended by adding at the end the following new section: 

9 ‘‘§ 3020A. Educational stipend 

10 ‘‘(a) ENTITLEMENT.—Each individual who is receiv11 ing educational assistance under this chapter and who is 

12 pursuing a program of education at an institution of high13 er learning (as such term is defined in section 3452(f) of 

14 this title) is entitled to an educational stipend under this 

15 section. 

16 ‘‘(b) AMOUNT OF STIPEND.—An educational stipend 

17 under this section shall be paid to an individual who is 

18 entitled to such a stipend— 

19 ‘‘(1) in the case of an individual pursuing an 

20 approved program of education on at least a half21 time basis, at the monthly rate of $500; and 

22 ‘‘(2) in the case of an individual pursuing an 

23 approved program of education on less than a half24 time basis, at the monthly rate of $250.’’. 


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

2 at the beginning of such chapter is amended by adding 

3 at the end of the items relating to subchapter II the fol4 lowing new item: 

‘‘3020A. Educational stipend.’’. 

5 (c) EFFECTIVE DATE.—Section 3020A of title 38, 

6 United States Code, as added by subsection (a) shall take 

7 effect on the date that is two years after the date of the 

8 enactment of this Act and shall apply with respect to 

9 months beginning after that date. 

10 SEC. 5. EXTENSION OF PERIOD FOR COLLECTION OF FEE 

11 FOR BASIC EDUCATIONAL ASSISTANCE. 

12 (a) BASIC EDUCATIONAL ASSISTANCE FOR SERVICE

13 ON ACTIVE DUTY.—Section 3011(b)(1) of title 38, United 

14 States Code, is amended— 

15 (1) by striking ‘‘$100’’ and inserting ‘‘$50’’; 

16 and 

17 (2) by striking ‘‘12’’ and inserting ‘‘24’’. 

18 (b) BASIC EDUCATIONAL ASSISTANCE FOR SERVICE

19 IN THE SELECTED RESERVE.—Section 3012(c)(1) of such 

20 title is amended— 

21 (1) by striking ‘‘$100’’ and inserting ‘‘$50’’; 

22 and 

23 (2) by striking ‘‘12’’ and inserting ‘‘24’’. 


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

2 this section shall take effect on the date that is 90 days 

3 after the date of the enactment of this Act. 

4 SEC. 6. USE OF EDUCATIONAL ASSISTANCE FOR BUSINESS 

5 COURSES AND SEMINARS. 

6 (a) BASIC EDUCATIONAL ASSISTANCE.—Section 

7 3452(b) of title 38, United States Code, is amended by 

8 adding at the end the following new sentence: ‘‘Such term 

9 also includes business courses and seminars, if such 

10 courses or seminars are related to the operation of a busi11 ness. Such term also includes continuing education 

12 courses, as designated by the Secretary.’’. 

13 (b) SURVIVORS’ AND DEPENDENTS’ EDUCATIONAL

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

15 States Code, is amended by adding at the end the fol16 lowing new sentences: ‘‘Such term also includes business 

17 courses and seminars, if such courses or seminars are re18 lated to the operation of a business. Such term also in19 cludes continuing education courses, as designated by the 

20 Secretary.’’. 

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

22 subsections (a) and (b) shall take effect on the date that 

23 is two years after the date of the enactment of this Act. 


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1 SEC. 7. USE OF EDUCATIONAL ASSISTANCE FOR COURSES 

2 TAKEN TO PREPARE FOR LICENSING OR CER3 TIFICATION TESTS. 

4 (a) BASIC EDUCATIONAL ASSISTANCE.—Section 

5 3452(b) of title 38, United States Code, is amended by 

6 inserting after the fourth sentence the following new sen7 tence: ‘‘Such term also includes preparatory courses for 

8 licensing or certification tests described in the preceding 

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

10 (b) SURVIVORS’ AND DEPENDENTS’ EDUCATIONAL

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

12 States Code, is amended by inserting after the second sen13 tence the following new sentence: ‘‘Such term also includes 

14 preparatory courses for licensing or certification tests de15 scribed in the preceding sentence, as designated by the 

16 Secretary.’’. 

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

18 subsections (a) and (b) shall take effect on the date that 

19 is two years after the date of the enactment of this Act. 

20 SEC. 8. USE OF EDUCATIONAL ASSISTANCE TO REPAY FED21 ERAL STUDENT LOANS. 

22 (a) IN GENERAL.—Subchapter II of chapter 30 of 

23 title 38, United States Code, as amended by section 4, 

24 is further amended by inserting after section 3020A the 

25 following new section: 


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1 ‘‘§ 3020B. Use of educational assistance benefits for 

2 the repayment of Federal student loans 

3 for certain courses of education 

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

5 provision of this chapter, an individual who is serving on 

6 active duty and who is entitled to educational assistance 

7 under this subchapter may apply amounts of such edu8 cational assistance otherwise available to the individual to 

9 repay some or all of any Federal student loan balance 

10 owed by the individual for a course of education. 

11 ‘‘(b) LIMITATION ON PAYMENTS.—(1) The amount 

12 of an individual’s entitlement to educational assistance 

13 that the individual may apply to the repayment of a stu14 dent loan balance under subsection (a) may not exceed 

15 $6,000 in any 12-month period. 

16 ‘‘(2) In no event shall payment of educational assist17 ance under this section exceed the amount of the individ18 ual’s available entitlement under this chapter. 

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

20 make monthly payments under this section in such 

21 amounts as the individual may elect for the repayment of 

22 a Federal student loan of such an individual. 

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

24 Secretary shall enter into such arrangements, and shall 

25 prescribe such regulations, as may be necessary to carry 

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

6 of subchapter II of chapter 30 of such title is amended 

7 by inserting after the item relating to section 3020 the 

8 following new item: 

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

student loans for certain courses of education.’’. 

9 (c) EFFECTIVE DATE.—Section 3020B of title 38, 

10 United States Code, as added by subsection (a) shall apply 

11 with respect to educational assistance paid for months be12 ginning after the date that is two years after the date of 

13 the enactment of this Act. 

14 SEC. 9. OPPORTUNITY TO WITHDRAW ELECTION NOT TO 

15 ENROLL IN EDUCATIONAL ASSISTANCE PRO16 GRAM. 

17 (a) BASIC EDUCATIONAL ASSISTANCE FOR ACTIVE

18 DUTY SERVICE.— 

19 (1) OPPORTUNITY TO WITHDRAW.—Subsection 

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

21 is amended by adding at the end the following new 

22 paragraph: 

23 ‘‘(4) An individual who makes an election not to re24 ceive educational assistance under paragraph (1) may 


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

2 withdrawal, shall be entitled to educational assistance 

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

4 had never made that election, if— 

5 ‘‘(A) at the time the individual makes such 

6 withdrawal, the individual is serving on active duty 

7 as a member of the Armed Forces; and 

8 ‘‘(B) the basic pay of the individual is reduced 

9 by, or the individual otherwise pays to the Secretary, 

10 $1,200 by not later than 90 days after the date on 

11 which the individual is discharged or released from 

12 active duty in the Armed Forces.’’. 

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

14 of such subsection is amended in the third sentence 

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

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

17 (b) BASIC EDUCATIONAL ASSISTANCE FOR SERVICE

18 IN THE SELECTED RESERVE.— 

19 (1) OPPORTUNITY TO WITHDRAW.—Subsection 

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

21 is amended by adding at the end the following new 

22 paragraph: 

23 ‘‘(4) An individual who makes an election not to re24 ceive educational assistance under paragraph (1) may 

25 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— 

4 ‘‘(A) at the time the individual makes such 

5 withdrawal, the individual is serving on active duty 

6 as a member of the Armed Forces; and 

7 ‘‘(B) the basic pay of the individual is reduced 

8 by, or the individual otherwise pays to the Secretary, 

9 $1,200 by not later than 90 days after the date on 

10 which the individual is discharged or released from 

11 active duty in the Armed Forces.’’. 

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

13 of such subsection is amended in the third sentence 

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

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

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

17 subsections (a) and (b) shall take effect on the date that 

18 is 90 days after the date of the enactment of this Act and 

19 shall apply with respect to an individual who is serving 

20 on active duty as a member of the Armed Forces on or 

21 after that date. 


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1 SEC. 10. MONTGOMERY GI BILL BENEFITS NOT TO REDUCE 

2 FINANCIAL AID. 

3 (a) IN GENERAL.—Section 480(j) of the Higher Edu4 cation Act of 1965 (20 U.S.C. 1087vv(j)) Act is amend5 ed— 

6 (1) in paragraph (1), by striking ‘‘including vet7 erans’ education benefits as defined in subsection 

8 (c),’’ and inserting ‘‘including, subject to paragraph 

9 (4), veterans’ education benefits as defined in sub10 section (c),’’; and 

11 (2) by adding at the end the following new 

12 paragraph: 

13 ‘‘(4) Notwithstanding paragraph (1), estimated fi14 nancial assistance not received under this title shall not 

15 include any veterans’ benefits paid under chapter 30 of 

16 title 38, United States Code.’’. 

17 (b) EFFECTIVE DATE.—The amendments made by 

18 subsection (a) shall take effect on the date that is 90 days 

19 after the date of the enactment of this Act. 

20 SEC. 11. EXTENSION OF INCREASE IN BENEFIT FOR CER21 TAIN INDIVIDUALS PURSUING APPRENTICE22 SHIPS OR ON-JOB TRAINING. 

23 (a) SURVIVORS AND DEPENDENTS.—Subsection (c) 

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

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


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1 (b) MEMBERS OF THE SELECTED RESERVE.—Sec2 tion 103(d) of the Veterans Earn and Learn Act of 2004 

3 (Public Law 108–454; 38 U.S.C. 3032 note) is amended 

4 by striking ‘‘January 1, 2008’’ and inserting ‘‘January 1, 

5 2014’’. 

6 (c) CERTAIN OTHER INDIVIDUALS.—Section 103(a) 

7 of the Veterans Earn and Learn Act of 2004 (Public Law 

8 108–454; 38 U.S.C. 3032 note) is amended by striking 

9 ‘‘January 1, 2008’’ and inserting ‘‘January 1, 2014’’. 

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

11 this section shall take effect on the date that is 90 days 

12 after the date of the enactment of this Act. 

13 SEC. 12. MODIFICATION OF AMOUNT AVAILABLE FOR REIM14 BURSEMENT OF STATE AND LOCAL AGEN15 CIES ADMINISTERING VETERANS EDUCATION 

16 BENEFITS. 

17 Section 3674(a)(4) of title 38, United States Code, 

18 is amended by striking ‘‘$13,000,000’’ and all that follows 

19 through ‘‘fiscal year 2007,’’. 

20 SEC. 13. PROVISION OF BASIC EDUCATIONAL ASSISTANCE 

21 BENEFITS FOR VETERANS DISCHARGED 

22 FROM ACTIVE DUTY WITH GENERAL DIS23 CHARGE. 

24 (a) ACTIVE DUTY SERVICE.—Section 3011(a)(3)(B) 

25 of title 38, United States Code, is amended by inserting 


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1 ‘‘or a general discharge (under honorable conditions)’’ be2 fore the period at the end. 

3 (b) SERVICE IN SELECTED RESERVE.—Section 

4 3012(a)(3)(A) of such title is amended by inserting ‘‘or 

5 a general discharge (under honorable conditions)’’ before 

6 the semicolon. 

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

8 subsections (a) and (b) shall apply with respect to an indi9 vidual who is discharged from service in the Armed Forces 

10 after the date that is 90 days after the date of the enact11 ment of this Act. 

12 SEC. 14. INCREASE IN AMOUNT OF REPORTING FEE PAY13 ABLE TO EDUCATIONAL INSTITUTIONS THAT 

14 ENROLL VETERANS RECEIVING EDU15 CATIONAL ASSISTANCE. 

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

17 of section 3684 of title 38, United States Code, is amend18 ed— 

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

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

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

22 such section is amended by striking the second comma 

23 after ‘‘34’’. 


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

2 subsections (a) and (b) shall take effect on the date that 

3 is 90 days after the date of the enactment of this Act. 

4 SEC. 15. PROVISION OF ADDITIONAL AREAS OF WORK5 STUDY FOR VETERANS. 

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

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

8 the end the following new subparagraph: 

9 ‘‘(G) The provision of placement services de10 scribed in section 3104(a)(5) of this title at an edu11 cational institution carried out under the supervision 

12 of a Department employee.’’. 

13 (b) WORK STUDY FOR STUDENTS ENROLLED ON

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

15 amended— 

16 (1) in the first sentence, by striking ‘‘three17 quarters’’ and inserting ‘‘half’’; and 

18 (2) in the third sentence, by striking ‘‘three19 quarter-time’’ and inserting ‘‘half-time’’. 

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

21 this section shall apply with respect to agreements entered 

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

23 after the date that is 90 days after the date of the enact24 ment of this Act. 


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1 SEC. 16. 5-YEAR PILOT PROGRAM FOR ON-CAMPUS WORK2 STUDY POSITIONS. 

3 (a) ESTABLISHMENT OF PILOT PROGRAM.—The Sec4 retary of Veterans Affairs shall conduct a five-year pilot 

5 project to test the feasibility and advisability of expanding 

6 the scope of qualifying work-study activities under sub7 section (a)(4) of section 3485 of title 38, United States 

8 Code, including work-study positions available on site at 

9 educational institutions. 

10 (b) TYPE OF WORK-STUDY POSITIONS.—The work11 study positions referred to in subsection (a) may include 

12 positions in academic departments (including positions as 

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

14 student services (including positions in career centers and 

15 financial aid, campus orientation, cashiers, admissions, 

16 records, and registration offices). 

17 (c) REGULATIONS.—The Secretary shall prescribe 

18 regulations to carry out the pilot project under this sec19 tion, including regulations providing for the supervision of 

20 work-study positions referred to in subsection (a) by ap21 propriate personnel. 

22 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated to the Secretary 

24 $10,000,000 for each of fiscal years 2009 through 2012 

25 to carry out the pilot project under this section. 


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1 SEC. 17. INCREASE IN EMPLOYEES FOR EDUCATION SERV2 ICE. 

3 The Secretary of Veterans Affairs shall increase the 

4 number of full-time employees of the Education Service 

5 of the Department of Veterans Affairs by 150 additional 

6 such employees. 

7 SEC. 18. UPGRADE OF CERTAIN INFORMATION TECH8 NOLOGY. 

9 (a) ACTION PLAN REQUIRED.—The General Infor10 mation Officer of the Department of Veterans Affairs, in 

11 coordination with the Director of Education, shall submit 

12 to the Committees on Veterans’ Affairs of the Senate and 

13 House of Representatives and action plan describing how 

14 the General Information Officer and Director of Edu15 cation intend to upgrade the information technology sys16 tem of the Department of Veteran Affairs that is used 

17 in connection with the administration of educational bene18 fits under laws administered by the Secretary of Veterans 

19 Affairs. The General Information Officer and Director of 

20 Education shall update the committees at least annually 

21 on any progress made in upgrading such system. 

22 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to upgrade the information 

24 technology system of the Department of Veteran Affairs 

25 that is used in connection with the administration of eduVerDate Aug 31 2005 00:36 Apr 05, 2008 Jkt 069200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H5684.IH H5684

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1 cational benefits under laws administered by the Secretary 

2 of Veterans Affairs— 

3 (1) $8,000,000 for fiscal year 2009; and 

4 (2) $3,000,000 for each of fiscal years 2010, 

5 2011, and 2012. 

6 SEC. 19. MODIFICATION OF ADVANCE PAYMENT OF INITIAL 

7 EDUCATIONAL ASSISTANCE OR SUBSISTENCE 

8 ALLOWANCE. 

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

10 United States Code, is amended by inserting after the 

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

12 of the entitlement to educational assistance of the veteran 

13 or person receiving an advance payment under this sub14 section, the advance payment shall be charged against the 

15 final month of the entitlement of the person or veteran 

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

17 may any veteran or person receive more than one advance 

18 payment under this subsection during any academic 

19 year.’’. 

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

21 subsection (a) shall apply with respect to an advance pay22 ment of educational assistance made after the date that 

23 is 90 days after the date of the enactment of this Act. 

Æ 


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