II 

108TH CONGRESS 

2D SESSION S. 2274 

To expand and improve retired pay, burial, education, and other mobilization 

benefits for members of the National Guard and Reserves who are 

called or ordered to active duty, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 1, 2004 

Ms. LANDRIEU introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To expand and improve retired pay, burial, education, and 

other mobilization benefits for members of the National 

Guard and Reserves who are called or ordered to active 

duty, 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 ‘‘21st Century Citizen 

5 Soldier Benefits Act’’. 
2 

•S 2274 IS 

1 SEC. 2. ELIGIBILITY FOR RETIRED PAY FOR NON-REGULAR 

2 SERVICE. 

3 (a) AGE AND SERVICE REQUIREMENTS.—Subsection 

4 (a) of section 12731 of title 10, United States Code, is 

5 amended to read as follows: 

6 ‘‘(a)(1) Except as provided in subsection (c), a person 

7 is entitled, upon application, to retired pay computed 

8 under section 12739 of this title, if the person— 

9 ‘‘(A) satisfies one of the combinations of re10 quirements for minimum age and minimum number 

11 of years of service (computed under section 12732 of 

12 this title) that are specified in the table in para13 graph (2); 

14 ‘‘(B) performed the last six years of qualifying 

15 service while a member of any category named in 

16 section 12732(a)(1) of this title, but not while a 

17 member of a regular component, the Fleet Reserve, 

18 or the Fleet Marine Corps Reserve, except that in 

19 the case of a person who completed 20 years of serv20 ice computed under section 12732 of this title before 

21 October 5, 1994, the number of years of qualifying 

22 service under this subparagraph shall be eight; and 

23 ‘‘(C) is not entitled, under any other provision 

24 of law, to retired pay from an armed force or re25 tainer pay as a member of the Fleet Reserve or the 

26 Fleet Marine Corps Reserve. 
3 

•S 2274 IS 

1 ‘‘(2) The combinations of minimum age and min2 imum years of service required of a person under subpara3 graph (A) of paragraph (1) for entitlement to retired pay 

4 as provided in such paragraph are as follows: 

‘‘Age, in years, is The minimum years of service 

at least: required for that age is: 

55 ...................................................................................................... 30

56 ...................................................................................................... 28

57 ...................................................................................................... 26

58 ...................................................................................................... 24

59 ...................................................................................................... 22

60 ...................................................................................................... 20.’’. 

5 (b) 20-YEAR LETTER.—Subsection (d) of such sec6 tion is amended by striking ‘‘the years of service required 

7 for eligibility for retired pay under this chapter’’ in the 

8 first sentence and inserting ‘‘20 years of service computed 

9 under section 12732 of this title.’’. 

10 (c) EFFECTIVE DATE.—This section and the amend11 ments made by this subsection (a) shall take effect on the 

12 first day of the first month beginning on or after the date 

13 of the enactment of this Act and shall apply with respect 

14 to retired pay payable for that month and subsequent 

15 months. 

16 SEC. 3. CERTAIN BURIAL BENEFITS FOR RESERVES WHO 

17 SERVED IN CAMPAIGN OR EXPEDITION FOR 

18 WHICH A CAMPAIGN MEDAL WAS AUTHOR19 IZED. 

20 (a) ELIGIBILITY FOR HEADSTONE OR GRAVE MARK21 ER.—Section 2306(a) of title 38, United States Code, is 
4 

•S 2274 IS 

1 amended by adding at the end the following new para2 graph: 

3 ‘‘(6) Any individual who, while a member of a 

4 reserve component, served on active duty in a cam5 paign or expedition for which a campaign medal was 

6 authorized and who was discharged or released from 

7 service in the Armed Forces under other than dis8 honorable conditions.’’. 

9 (b) ELIGIBILITY FOR INTERMENT IN NATIONAL

10 CEMETERIES.—Section 2402 of such title is amended by 

11 adding at the end the following new paragraph: 

12 ‘‘(9) Any individual who, while a member of a 

13 reserve component, served on active duty in a cam14 paign or expedition for which a campaign medal was 

15 authorized and who was discharged or released from 

16 service in the Armed Forces under other than dis17 honorable conditions.’’. 

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

19 this section shall apply with respect to deaths occurring 

20 on or after the date of the enactment of this Act. 
5 

•S 2274 IS 

1 SEC. 4. EDUCATIONAL ASSISTANCE UNDER MONTGOMERY 

2 GI BILL FOR MEMBERS OF THE SELECTED 

3 RESERVE WHO AGGREGATE MORE THAN 2 

4 YEARS OF ACTIVE DUTY SERVICE DURING 

5 ANY 5-YEAR PERIOD. 

6 (a) ENTITLEMENT.—Section 3012(a)(1) of title 38, 

7 United States Code, is amended— 

8 (1) in subparagraph (B), by striking ‘‘or’’ at 

9 the end; 

10 (2) in subparagraph (C), by adding ‘‘or’’ at the 

11 end; and 

12 (3) by inserting after subparagraph (C) the fol13 lowing new subparagraph (D): 

14 ‘‘(D) during any five-year period beginning 

15 on or after September 11, 2001, while in the 

16 Selected Reserve, serves on active duty in the 

17 Armed Forces for one or more periods aggre18 gating not less than two years of service on ac19 tive duty during such period;’’. 

20 (b) CONTRIBUTIONS FOR BASIC ASSISTANCE.—Sec21 tion 3012(c) of such title is amended— 

22 (1) by inserting ‘‘(1)’’ after ‘‘(c)’’; 

23 (2) by designating the second sentence as para24 graph (3) and indenting such paragraph, as so des25 ignated, two ems from the left margin; and 
6 

•S 2274 IS 

1 (3) by inserting after paragraph (1), as so des2 ignated, the following new paragraph: 

3 ‘‘(2)(A) Except as provided in subparagraph (B), in 

4 the case of an individual described in subsection (a)(1)(D) 

5 who does not make an election under subsection (d)(4), 

6 the basic pay of such individual shall be reduced by $100 

7 for each of any of the first 12 months that such individual 

8 is entitled to such pay commencing with the first month 

9 after the date on which such individual becomes entitled 

10 to educational assistance under this chapter by reason of 

11 subsection (a)(1)(D). 

12 ‘‘(B) An individual described in subparagraph (A) 

13 may pay the Secretary $1,200 in a lump sum payment 

14 in lieu of the reduction in basic pay otherwise required 

15 by subparagraph (A). Such payment shall be made before 

16 the commencement of the receipt by the individual of 

17 amounts of basic educational assistance under this chap18 ter. 

19 ‘‘(C) If the total amount of basic pay of an individual 

20 reduced under subparagraph (A) is less than $1,200 as 

21 of the completion of all service of such individual on active 

22 duty, the individual shall pay the Secretary in a lump sum 

23 payment an amount equal to the difference between 

24 $1,200 and the amount so reduced. The payment shall be 

25 made before the commencement of the receipt by such in-
7 

•S 2274 IS 

1 dividual of amounts of basic educational assistance under 

2 this chapter. 

3 ‘‘(D) The Secretary shall deposit any amounts re4 ceived as payments under subparagraph (B) or (C) into 

5 the Treasury as miscellaneous receipts.’’. 

6 (c) ELECTION NOT TO RECEIVE ASSISTANCE.—Sec7 tion 3012(d) of such title is amended by adding at the 

8 end the following new paragraph: 

9 ‘‘(4) An individual described in subsection (a)(1)(D) 

10 may make an election not to receive educational assistance 

11 under this chapter. Any such election shall be made not 

12 later than 30 days after the date on which the individual 

13 otherwise becomes entitled to such assistance under sub14 section (a)(1)(D). Any individual who makes such an elec15 tion is not entitled to educational assistance under this 

16 chapter.’’. 

17 (d) CONTRIBUTIONS FOR ADDITIONAL ASSIST18 ANCE.—Section 3012(f) of such title is amended— 

19 (1) in paragraph (1), by inserting ‘‘or (d)(4)’’ 

20 after ‘‘subsection (d)(1)’’; and 

21 (2) in the second sentence, by inserting ‘‘, or 

22 any payments by such individual,’’ after ‘‘pay of 

23 such individual’’. 
8 

•S 2274 IS 

1 (e) DURATION OF ASSISTANCE.—Section 3013(b) of 

2 such title is amended by striking ‘‘is entitled to’’ and all 

3 that follows and inserting the following: ‘‘is entitled to— 

4 ‘‘(1) one month of educational assistance bene5 fits under this chapter— 

6 ‘‘(A) in the case of an individual described 

7 in section 3012(a)(1)(A) of this title, for each 

8 month of continuous active duty served by such 

9 individual after June 30, 1985, as part of the 

10 obligated period of active duty on which such 

11 entitlement is based; 

12 ‘‘(B) in the case of an individual described 

13 in section 3012(a)(1)(B) of this title, for each 

14 month of continuous active duty served by such 

15 individual after June 30, 1985; or 

16 ‘‘(C) in the case of an individual described 

17 in section 3012(a)(1)(D) of this title, for each 

18 month of active duty served by such individual 

19 after September 11, 2001, as part of the aggre20 gate period of active duty on which such entitle21 ment is based; and 

22 ‘‘(2) one month of educational assistance bene23 fits under this chapter for each four months served 

24 by such individual in the Selected Reserve after the 

25 applicable date specified in paragraph (1) (other 
9 

•S 2274 IS 

1 than any month in which the individual served on 

2 active duty).’’. 

3 (f) AMOUNT OF ASSISTANCE.—Section 3015 of such 

4 title is amended— 

5 (1) in subsections (a)(1)(D) and (b)(1)(D), by 

6 striking ‘‘subsection (h)’’ and inserting ‘‘subsection 

7 (i)’’; 

8 (2) by redesignating subsection (h) as sub9 section (i); and 

10 (3) by inserting after subsection (g) the fol11 lowing new subsection (h): 

12 ‘‘(h) In the case of an individual entitled to an edu13 cational assistance allowance under section 3012(a)(1)(D) 

14 of this title, the amount of the basic educational assistance 

15 allowance payable under this chapter is the amount deter16 mined under subsection (b).’’. 

17 (g) DEATH BENEFIT.—Section 3017(b)(1) of such 

18 title is amended— 

19 (1) in subparagraph (C), by striking ‘‘and’’ at 

20 the end; 

21 (2) in subparagraph (D), by striking ‘‘, less’’ 

22 and inserting ‘‘; and’’; and 

23 (3) by adding at the end the following new sub24 paragraph: 
10 

•S 2274 IS 

1 ‘‘(E) the amount of any payments made by 

2 the individual under section 3012(c)(2) of this 

3 title, less’’. 

4 (h) ENTITLEMENT DATE FOR CERTAIN MEMBERS.— 

5 In the case of any member or former member of the Se6 lected Reserve who, under section 3012(a)(1)(D) of title 

7 38, United States Code (as amended by subsection (a)), 

8 is entitled to educational assistance under chapter 30 of 

9 title 38, United States Code, as of the date of the enact10 ment of this Act by reason of active duty served by such 

11 member during the period beginning on September 11, 

12 2001, and ending on the date of the enactment of this 

13 Act, the date on which such individual becomes entitled 

14 to such educational assistance by reason of that section 

15 shall be deemed to be the date of the enactment of this 

16 Act. 

17 (i) OUTREACH.—(1) The Secretaries concerned shall 

18 take actions to inform members of the Selected Reserve 

19 who are or may become entitled to basic educational as20 sistance benefits under chapter 30 of title 38, United 

21 States Code, as a result of section 3012(a)(1)(D) of such 

22 title (as amended by subsection (a) of this section) of the 

23 minimum service requirements for entitlement to such 

24 benefits under that chapter and of the scope and nature 

25 of such benefits. 
11 

•S 2274 IS 

1 (2) In this subsection: 

2 (A) The term ‘‘Secretary concerned’’ has the 

3 meaning given such term in section 101(25) of title 

4 38, United States Code. 

5 (B) The term ‘‘Selected Reserve’’ has the 

6 meaning given such term in section 3002(4) of title 

7 38, United States Code. 

8 SEC. 5. MODIFICATION OF MAXIMUM RATE OF INTEREST 

9 PAYABLE BY SERVICEMEMBERS ON OBLIGA10 TIONS INCURRED BEFORE MILITARY SERV11 ICE. 

12 (a) MODIFICATION.—Section 207 of the 

13 Servicemembers Civil Relief Act (50 U.S.C. App. 527) is 

14 amended— 

15 (1) in subsection (a), by striking ‘‘6 percent’’ 

16 each place it appears in the text of paragraphs (1) 

17 and (2) and inserting ‘‘the interest rate limitation 

18 percentage’’; 

19 (2) in subsection (c), by striking ‘‘6 percent’’ 

20 and inserting ‘‘the interest rate limitation percent21 age’’; and 

22 (3) by striking subsection (d) and inserting the 

23 following new subsection (d): 

24 ‘‘(d) DEFINITIONS.—In this section: 
12 

•S 2274 IS 

1 ‘‘(1) INTEREST.—The term ‘interest’ includes 

2 service charges, renewal charges, fees, or any other 

3 charges (except bona fide insurance) with respect to 

4 an obligation or liability. 

5 ‘‘(2) INTEREST RATE LIMITATION PERCENT6 AGE.—The term ‘interest rate limitation percentage’ 

7 means the lesser of— 

8 ‘‘(A) 6 percent; or 

9 ‘‘(B) the prime lending rate, as identified 

10 by the Administration and published in the 

11 Federal Register on a quarterly basis, plus 1 

12 percent.’’. 

13 (b) EFFECT OF ADJUSTMENT OF INTEREST RATE

14 LIMITATION PERCENTAGE DURING MILITARY SERVICE.— 

15 Subsection (a) of such section is further amended by add16 ing at the end the following new paragraph: 

17 ‘‘(4) EFFECT OF ADJUSTMENT OF INTEREST

18 RATE LIMITATION PERCENTAGE DURING SERVICE.— 

19 If during the military service of a servicemember the 

20 interest rate limitation percentage is adjusted as a 

21 result of a quarterly identification of the prime lend22 ing rate by the Administration, the interest rate lim23 itation under this subsection on obligations and li24 abilities incurred before such service shall be so ad25 justed.’’. 
13 

•S 2274 IS 

1 (c) CONFORMING AMENDMENTS.—Subsection (a) of 

2 such section is further amended— 

3 (1) in the paragraph caption of paragraph (1), 

4 by striking ‘‘LIMITATION TO 6 PERCENT’’ and insert5 ing ‘‘LIMITATION’’; and 

6 (2) in the paragraph caption of paragraph (2), 

7 by striking ‘‘FORGIVENESS OF INTEREST IN EXCESS

8 OF 6 PERCENT’’ and inserting ‘‘FORGIVENESS OF IN9 TEREST IN EXCESS OF INTEREST RATE LIMITATION

10 PERCENTAGE’’. 

11 SEC. 6. NONREDUCTION IN PAY WHILE FEDERAL EM12 PLOYEE IS PERFORMING ACTIVE SERVICE IN 

13 THE UNIFORMED SERVICES. 

14 (a) IN GENERAL.—Subchapter IV of chapter 55 of 

15 title 5, United States Code, is amended by adding at the 

16 end the following: 

17 ‘‘§ 5538. Nonreduction in pay while serving in the 

18 uniformed services 

19 ‘‘(a) An employee who is absent from a position of 

20 employment with the Federal Government in order to per21 form service in the uniformed services shall be entitled to 

22 receive, for each pay period described in subsection (b), 

23 an amount equal to the amount by which— 

24 ‘‘(1) the amount of basic pay which would oth25 erwise have been payable to such employee for such 
14 

•S 2274 IS 

1 pay period if such employee’s civilian employment 

2 with the Government had not been interrupted by 

3 that service, exceeds (if at all) 

4 ‘‘(2) the amount of pay and allowances which 

5 (as determined under subsection (d))— 

6 ‘‘(A) is payable to such employee for that 

7 service; and 

8 ‘‘(B) is allocable to such pay period. 

9 ‘‘(b)(1) Amounts under this section shall be payable 

10 with respect to each pay period (which would otherwise 

11 apply if the employee’s civilian employment had not been 

12 interrupted)— 

13 ‘‘(A) during which such employee is entitled to 

14 reemployment rights under chapter 43 of title 38 

15 with respect to the position from which such em16 ployee is absent (as referred to in subsection (a)); 

17 and 

18 ‘‘(B) for which such employee does not other19 wise receive basic pay (including by taking any an20 nual, military, or other paid leave) to which such 

21 employee is entitled by virtue of such employee’s ci22 vilian employment with the Government. 

23 ‘‘(2) For purposes of this section, the period during 

24 which an employee is entitled to reemployment rights 

25 under chapter 43 of title 38— 
15 

•S 2274 IS 

1 ‘‘(A) shall be determined disregarding the provi2 sions of section 4312(d) of title 38; and 

3 ‘‘(B) shall include any period of time specified 

4 in section 4312(e) of title 38 within which an em5 ployee may report or apply for employment or reem6 ployment following completion of service in the uni7 formed services. 

8 ‘‘(c) Any amount payable under this section to an em9 ployee shall be paid— 

10 ‘‘(1) by such employee’s employing agency; 

11 ‘‘(2) from the appropriation or fund which 

12 would be used to pay the employee if such employee 

13 were in a pay status; and 

14 ‘‘(3) to the extent practicable, at the same time 

15 and in the same manner as would basic pay if such 

16 employee’s civilian employment had not been inter17 rupted. 

18 ‘‘(d) The Office of Personnel Management shall, in 

19 consultation with Secretary of Defense, prescribe any reg20 ulations necessary to carry out the preceding provisions 

21 of this section. 

22 ‘‘(e)(1) The head of each agency referred to in section 

23 2302(a)(2)(C)(ii) shall, in consultation with the Office, 

24 prescribe procedures to ensure that the rights under this 

25 section apply to the employees of such agency. 
16 

•S 2274 IS 

1 ‘‘(2) The Administrator of the Federal Aviation Ad2 ministration shall, in consultation with the Office, pre3 scribe procedures to ensure that the rights under this sec4 tion apply to the employees of that agency. 

5 ‘‘(f) For purposes of this section— 

6 ‘‘(1) the terms ‘employee’, ‘Federal Govern7 ment’, and ‘uniformed services’ have the same re8 spective meanings as given in section 4303 of title 

9 38; 

10 ‘‘(2) the term ‘service in the uniformed services’ 

11 has the meaning given that term in section 4303 of 

12 title 38 and includes duty performed by a member 

13 of the National Guard under section 502(f) of title 

14 32 at the direction of the Secretary of the Army or 

15 Secretary of the Air Force; 

16 ‘‘(3) the term ‘employing agency’, as used with 

17 respect to an employee entitled to any payments 

18 under this section, means the agency or other entity 

19 of the Government (including an agency referred to 

20 in section 2302(a)(2)(C)(ii)) with respect to which 

21 such employee has reemployment rights under chap22 ter 43 of title 38; and 

23 ‘‘(4) the term ‘basic pay’ includes any amount 

24 payable under section 5304.’’. 
17 

•S 2274 IS 

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

2 for chapter 55 of title 5, United States Code, is amended 

3 by inserting after the item relating to section 5537 the 

4 following: 

‘‘5538. Nonreduction in pay while serving in the uniformed services or National 

Guard.’’. 

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

6 this section shall apply with respect to pay periods (as de7 scribed in section 5538(b) of title 5, United States Code, 

8 as added by this section) beginning on or after September 

9 11, 2001. 

10 SEC. 7. READY RESERVE-NATIONAL GUARD EMPLOYEE 

11 CREDIT ADDED TO GENERAL BUSINESS 

12 CREDIT. 

13 (a) READY RESERVE-NATIONAL GUARD CREDIT.— 

14 Subpart D of part IV of subchapter A of chapter 1 of 

15 the Internal Revenue Code of 1986 (relating to business16 related credits) is amended by adding at the end the fol17 lowing: 

18 ‘‘SEC. 45G. READY RESERVE-NATIONAL GUARD EMPLOYEE 

19 CREDIT. 

20 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

21 the Ready Reserve-National Guard employee credit deter22 mined under this section for any taxable year is an amount 

23 equal to 50 percent of the actual compensation amount 

24 for such taxable year. 
18 

•S 2274 IS 

1 ‘‘(b) DEFINITION OF ACTUAL COMPENSATION

2 AMOUNT.—For purposes of this section, the term ‘actual 

3 compensation amount’ means the amount of compensation 

4 paid or incurred by an employer with respect to a Ready 

5 Reserve-National Guard employee on any day during a 

6 taxable year when the employee was absent from employ7 ment for the purpose of performing qualified active duty. 

8 ‘‘(c) LIMITATIONS.— 

9 ‘‘(1) MAXIMUM PERIOD FOR CREDIT PER EM10 PLOYEE.—The maximum period with respect to 

11 which the credit may be allowed with respect to any 

12 Ready Reserve-National Guard employee shall not 

13 exceed the 12-month period beginning on the first 

14 day such credit is so allowed with respect to such 

15 employee. 

16 ‘‘(2) DAYS OTHER THAN WORK DAYS.—No 

17 credit shall be allowed with respect to a Ready Re18 serve-National Guard employee who performs quali19 fied active duty on any day on which the employee 

20 was not scheduled to work (for reason other than to 

21 participate in qualified active duty). 

22 ‘‘(d) DEFINITIONS.—For purposes of this section— 

23 ‘‘(1) QUALIFIED ACTIVE DUTY.—The term 

24 ‘qualified active duty’ means— 
19 

•S 2274 IS 

1 ‘‘(A) active duty, other than the training 

2 duty specified in section 10147 of title 10, 

3 United States Code (relating to training re4 quirements for the Ready Reserve), or section 

5 502(a) of title 32, United States Code (relating 

6 to required drills and field exercises for the Na7 tional Guard), in connection with which an em8 ployee is entitled to reemployment rights and 

9 other benefits or to a leave of absence from em10 ployment under chapter 43 of title 38, United 

11 States Code, and 

12 ‘‘(B) hospitalization incident to such duty. 

13 ‘‘(2) COMPENSATION.—The term ‘compensa14 tion’ means any remuneration for employment, 

15 whether in cash or in kind, which is paid or incurred 

16 by a taxpayer and which is deductible from the tax17 payer’s gross income under section 162(a)(1). 

18 ‘‘(3) READY RESERVE-NATIONAL GUARD EM19 PLOYEE.—The term ‘Ready Reserve-National Guard 

20 employee’ means an employee who is a member of 

21 the Ready Reserve or of the National Guard. 

22 ‘‘(4) NATIONAL GUARD.—The term ‘National 

23 Guard’ has the meaning given such term by section 

24 101(c)(1) of title 10, United States Code. 
20 

•S 2274 IS 

1 ‘‘(5) READY RESERVE.—The term ‘Ready Re2 serve’ has the meaning given such term by section 

3 10142 of title 10, United States Code.’’. 

4 (b) CREDIT TO BE PART OF GENERAL BUSINESS

5 CREDIT.—Subsection (b) of section 38 of such Code (re6 lating to general business credit) is amended by striking 

7 ‘‘plus’’ at the end of paragraph (14), by striking the period 

8 at the end of paragraph (15) and inserting ‘‘, plus’’, and 

9 by adding at the end the following: 

10 ‘‘(16) the Ready Reserve-National Guard em11 ployee credit determined under section 45G(a).’’. 

12 (c) CONFORMING AMENDMENT.—The table of sec13 tions for subpart D of part IV of subchapter A of chapter 

14 1 of the Internal Revenue Code of 1986 is amended by 

15 inserting after the item relating to section 45F the fol16 lowing: 

‘‘Sec. 45G. Ready Reserve-National Guard employee credit.’’. 

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

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act. 

20 SEC. 8. LEAVE OF ABSENCE FROM EDUCATIONAL INSTITU21 TIONS FOR MILITARY SERVICE. 

22 (a) OBLIGATION AS PART OF PROGRAM PARTICIPA23 TION REQUIREMENTS.—Section 487(a)(22) of the Higher 

24 Education Act of 1965 (20 U.S.C. 1094(a)(22)) is amend25 ed by inserting ‘‘and with the policy on leave of absence 
21 

•S 2274 IS 

1 for active duty military service established pursuant to 

2 section 484C’’ after ‘‘section 484B’’. 

3 (b) LEAVE OF ABSENCE FOR MILITARY SERVICE.— 

4 Part G of title IV of the Higher Education Act of 1965 

5 is amended by inserting after section 484B (20 U.S.C. 

6 1091b) the following new section: 

7 ‘‘SEC. 484C. LEAVE OF ABSENCE FOR MILITARY SERVICE. 

8 ‘‘(a) LEAVE OF ABSENCE REQUIRED.—Whenever a 

9 student who is a member of the National Guard or other 

10 reserve component of the Armed Forces of the United 

11 States, or a member of such Armed Forces in a retired 

12 status, is called or ordered to active duty, the institution 

13 of higher education in which the student is enrolled shall 

14 grant the student a military leave of absence from the in15 stitution while such student is serving on active duty, and 

16 for one year after the conclusion of such service. 

17 ‘‘(b) CONSEQUENCES OF MILITARY LEAVE OF AB18 SENCE.— 

19 ‘‘(1) PRESERVATION OF STATUS AND AC20 COUNTS.—A student on a military leave of absence 

21 from an institution of higher education shall be enti22 tled, upon release from serving on active duty, to be 

23 restored to the educational status such student had 

24 attained prior to being ordered to such duty without 

25 loss of academic credits earned, scholarships or 
22 

•S 2274 IS 

1 grants awarded, or, subject to paragraph (2), tuition 

2 and other fees paid prior to the commencement of 

3 the active duty. 

4 ‘‘(2) REFUNDS.— 

5 ‘‘(A) OPTION OF REFUND OR CREDIT.—An 

6 institution of higher education shall refund tui7 tion or fees paid or credit the tuition and fees 

8 to the next period of enrollment after the stu9 dent returns from a military leave of absence, 

10 at the option of the student. Notwithstanding 

11 the 180-day limitation referred to in section 

12 484B(a)(2)(B), a student on a military leave of 

13 absence under this section shall not be treated 

14 as having withdrawn for purposes of section 

15 484B unless the student fails to return at the 

16 end of the military leave of absence (as deter17 mined under subsection (a) of this section). 

18 ‘‘(B) PROPORTIONATE REDUCTION OF RE19 FUND FOR TIME COMPLETED.—If a student re20 quests a refund during a period of enrollment, 

21 the percentage of the tuition and fees that shall 

22 be refunded shall be equal to 100 percent 

23 minus— 

24 ‘‘(i) the percentage of the period of 

25 enrollment (for which the tuition and fees 
23 

•S 2274 IS 

1 were paid) that was completed (as deter2 mined in accordance with section 484B(d)) 

3 as of the day the student withdrew, pro4 vided that such date occurs on or before 

5 the completion of 60 percent of the period 

6 of enrollment; or 

7 ‘‘(ii) 100 percent, if the day the stu8 dent withdrew occurs after the student has 

9 completed 60 percent of the period of en10 rollment. 

11 ‘‘(c) ACTIVE DUTY.—In this section, the term ‘active 

12 duty’ has the meaning given such term in section 

13 101(d)(1) of title 10, United States Code, except that such 

14 term— 

15 ‘‘(1) does not include active duty for training or 

16 attendance at a service school; but 

17 ‘‘(2) includes, in the case of members of the 

18 National Guard, active State duty.’’. 

Æ