I 
119TH CONGRESS 
1ST SESSION 
H. R. 967 
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 Fed-
eral student loans. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 4, 2025 
Mr. STEUBE 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 Representa-
tives 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 sec-
tion 3320 the following new section: 
VerDate Sep 11 2014 
16:53 Mar 03, 2025
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H967.IH
H967
ssavage on LAPJG3WLY3PROD with BILLS
‘‘§ 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 sub-
chapter may apply amounts of such educational assistance 
to repay some or all of the outstanding balance of prin-
cipal and interest due on a Federal student loan to the 
individual. 
‘‘(b) MAXIMUM ANNUAL AMOUNT; ANNUAL ADJUST-
MENT.—(1) Payment of educational assistance under this 
section to an individual during fiscal year 2026 may not 
exceed $15,900. 
‘‘(2) In each fiscal year after fiscal year 2026, 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 re-
payment of a Federal student loan to that individual. No 
VerDate Sep 11 2014 
16:53 Mar 03, 2025
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H967.IH
H967
ssavage on LAPJG3WLY3PROD with BILLS
such amount may exceed one-twelfth of the maximum an-
nual 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.—Notwith-
standing 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 di-
rectly to the lender of the Federal student loan of the indi-
vidual who is entitled to educational assistance under this 
section. 
‘‘(f) ARRANGEMENTS TO MAKE PAYMENTS; REGULA-
TIONS.—The Secretary shall enter into such arrange-
ments, and shall prescribe such regulations, that the Sec-
retary 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 
VerDate Sep 11 2014 
16:53 Mar 03, 2025
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H967.IH
H967
ssavage on LAPJG3WLY3PROD with BILLS
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. 
Æ 
VerDate Sep 11 2014 
16:53 Mar 03, 2025
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\H967.IH
H967
ssavage on LAPJG3WLY3PROD with BILLS