I 

117TH CONGRESS 

1ST SESSION H. R. 359 

To amend title 38, United States Code, to allow individuals who are entitled 

to Post-9/11 educational assistance to use such assistance to repay Federal student loans. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 19, 2021 

Mr. STEUBE (for himself, Mrs. RODGERS of Washington, and Mrs. HINSON) 

introduced the following bill; which was referred to the Committee on 

Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to allow individuals 

who are entitled to Post-9/11 educational assistance to 

use such assistance to repay Federal student loans. 

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 ‘‘Modern GI Bill Act’’. 

5 SEC. 2. USE OF POST-9/11 EDUCATIONAL ASSISTANCE TO 

6 REPAY FEDERAL STUDENT LOANS. 

7 (a) AUTHORITY.—Subchapter II of chapter 33 of title 

8 38, United States Code, is amended by inserting after sec9 tion 3320 the following new section: 


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

2 the repayment of Federal student loans 

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

4 provision of this chapter, an individual who is entitled to 

5 educational assistance for tuition or fees under this sub6 chapter may apply amounts of such educational assistance 

7 to repay some or all of the outstanding balance of prin8 cipal and interest due on a Federal student loan to the 

9 individual. 

10 ‘‘(b) MAXIMUM ANNUAL AMOUNT; ANNUAL ADJUST11 MENT.—(1) Payment of educational assistance under this 

12 section to an individual during fiscal year 2020 may not 

13 exceed $15,900. 

14 ‘‘(2) In each fiscal year after fiscal year 2020, the 

15 dollar amount in paragraph (1) shall be increased by the 

16 same percentage as the percentage by which benefit 

17 amounts payable under title II of the Social Security Act 

18 (42 U.S.C. 401 et seq.) are increased effective December 

19 1 of that year as a result of a determination under section 

20 215(i) of such Act (42 U.S.C. 415(i)). 

21 ‘‘(c) MONTHLY PAYMENTS: MAXIMUM AMOUNT; 

22 MAXIMUM NUMBER.—(1) The Secretary shall make 

23 monthly payments under this section in such amounts as 

24 an individual who is entitled to educational assistance for 

25 tuition or fees under this subchapter may elect for the re26 payment of a Federal student loan to that individual. No 


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1 such amount may exceed one-twelfth of the maximum an2 nual amount calculated under subsection (b)(1). 

3 ‘‘(2) The total number of months of payments for the 

4 repayment of a Federal student loan to an individual 

5 under this section may not exceed 36 months. 

6 ‘‘(d) BENEFIT NON-TRANSFERABLE.—Notwith7 standing section 3319 of this title, an individual who is 

8 entitled to educational assistance under this section may 

9 not transfer such assistance to another individual. 

10 ‘‘(e) ELIGIBLE PAYEES.—The Secretary shall make 

11 payments of educational assistance under this section di12 rectly to the lender of the Federal student loan of the indi13 vidual who is entitled to educational assistance under this 

14 section. 

15 ‘‘(f) ARRANGEMENTS TO MAKE PAYMENTS; REGULA16 TIONS.—The Secretary shall enter into such arrange17 ments, and shall prescribe such regulations, that the Sec18 retary determines necessary to carry out this section. 

19 ‘‘(g) FEDERAL STUDENT LOAN DEFINED.—In this 

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

21 made, insured, or guaranteed under title IV of the Higher 

22 Education Act of 1965 (20 U.S.C. 1070 et seq.).’’. 

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

24 at the beginning of such chapter is amended by inserting 


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1 after the item relating to section 3320 the following new 

2 item: 

‘‘3320A. Use of educational assistance benefits for the repayment of Federal 

student loans.’’. 

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

4 this section shall apply to educational assistance paid for 

5 months beginning on or after the date of the enactment 

6 of this Act. 

Æ 


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