Modern GI Bill Act

Subjects: Armed Forces and National Security, Government lending and loan guarantees, Higher education, Student aid and college costs, Veterans' education, employment, rehabilitation

Summary:  <p><b>Modern GI Bill Act</b></p> <p>This bill authorizes individuals who are entitled to educational assistance under the Post-9/11 GI Bill to apply amounts of such assistance to repay federal student loans for up to 36 months. </p> <p>The bill sets a cap and annual cost-of-living increases for the amount of educational assistance that may be paid to an individual under this bill during FY2024 and the following years.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 393 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 393

  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 17, 2023

Mr. Steube (for himself and Mr. Reschenthaler) 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.

    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 ``Modern GI Bill Act''.

SEC. 2. USE OF POST-9/11 EDUCATIONAL ASSISTANCE TO REPAY FEDERAL 
              STUDENT LOANS.

    (a) Authority.--Subchapter II of chapter 33 of title 38, United 
States Code, is amended by inserting after section 3320 the following 
new section:
``Sec. 3320A. Use of educational assistance benefits for the repayment 
              of Federal student loans
    ``(a) Use of Benefits.--Notwithstanding any other provision of this 
chapter, an individual who is entitled to educational assistance for 
tuition or fees under this subchapter may apply amounts of such 
educational assistance to repay some or all of the outstanding balance 
of principal and interest due on a Federal student loan to the 
individual.
    ``(b) Maximum Annual Amount; Annual Adjustment.--(1) Payment of 
educational assistance under this section to an individual during 
fiscal year 2024 may not exceed $15,900.
    ``(2) In each fiscal year after fiscal year 2024, the dollar amount 
in paragraph (1) shall be increased by the same percentage as the 
percentage by which benefit amounts payable under title II of the 
Social Security Act (42 U.S.C. 401 et seq.) are increased effective 
December 1 of that year as a result of a determination under section 
215(i) of such Act (42 U.S.C. 415(i)).
    ``(c) Monthly Payments: Maximum Amount; Maximum Number.--(1) The 
Secretary shall make monthly payments under this section in such 
amounts as an individual who is entitled to educational assistance for 
tuition or fees under this subchapter may elect for the repayment of a 
Federal student loan to that individual. No such amount may exceed one-
twelfth of the maximum annual amount calculated under subsection 
(b)(1).
    ``(2) The total number of months of payments for the repayment of a 
Federal student loan to an individual under this section may not exceed 
36 months.
    ``(d) Benefit Non-Transferable.--Notwithstanding section 3319 of 
this title, an individual who is entitled to educational assistance 
under this section may not transfer such assistance to another 
individual.
    ``(e) Eligible Payees.--The Secretary shall make payments of 
educational assistance under this section directly to the lender of the 
Federal student loan of the individual who is entitled to educational 
assistance under this section.
    ``(f) Arrangements To Make Payments; Regulations.--The Secretary 
shall enter into such arrangements, and shall prescribe such 
regulations, that the Secretary determines necessary to carry out this 
section.
    ``(g) Federal Student Loan Defined.--In this section, the term 
`Federal student loan' means any loan made, insured, or guaranteed 
under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et 
seq.).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
3320 the following new item:

``3320A. 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.
                                 &lt;all&gt;
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