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 fol-
lowing 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 consider-
ation 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 pro-
gram administered by the Secretary of Veterans Affairs, 
and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Veterans Education Improvement Act of 2008’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
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 edu-
cational 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 ap-
prenticeships 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 dis-
charged 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. 
SEC. 2. INCREASE IN AMOUNT OF BASIC EDUCATIONAL AS-
SISTANCE. 
(a) INCREASE.—Section 3015 of title 38, United 
States Code, is amended— 
(1) in subsection (a)(1)— 
(A) in subparagraph (A), by striking ‘‘Jan-
uary 1, 2002, $800’’ and inserting ‘‘January 1, 
2009, $1,450’’; 
(B) by striking subparagraphs (B) and 
(C); and 
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(C) by redesignating subparagraph (D) as 
subparagraph (B); and 
(2) in subsection (b)(1)— 
(A) in subparagraph (A), by striking ‘‘Jan-
uary 1, 2002, $650’’ and inserting ‘‘January 1, 
2009, $1,250’’; 
(B) by striking subparagraphs (B) and 
(C); and 
(C) by redesignating subparagraph (D) as 
subparagraph (B). 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply with respect to a payment of 
educational assistance for a month beginning after the 
date that is 90 days after the date of the enactment of 
this Act. 
SEC. 3. EXTENSION OF TIME LIMITATION FOR USE OF ELI-
GIBILITY 
AND 
ENTITLEMENT 
TO 
EDU-
CATIONAL ASSISTANCE. 
(a) EXTENSION
OF
TIME
LIMITATION.—Section 
3031 of title 38, United States Code, is amended by strik-
ing ‘‘10-year period’’ each place it appears and inserting 
‘‘15-year period’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to an individual 
who is entitled to educational assistance under chapter 30 
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of such title on the date that is 90 days after the date 
of the enactment of this Act or who becomes entitled to 
educational assistance under such chapter after such date. 
SEC. 4. MONTHLY STIPEND FOR RECIPIENTS OF EDU-
CATIONAL ASSISTANCE ALLOWANCE. 
(a) ENTITLEMENT
TO MONTHLY STIPEND.—Sub-
chapter II of chapter 30 of title 38, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 3020A. Educational stipend 
‘‘(a) ENTITLEMENT.—Each individual who is receiv-
ing educational assistance under this chapter and who is 
pursuing a program of education at an institution of high-
er learning (as such term is defined in section 3452(f) of 
this title) is entitled to an educational stipend under this 
section. 
‘‘(b) AMOUNT OF STIPEND.—An educational stipend 
under this section shall be paid to an individual who is 
entitled to such a stipend— 
‘‘(1) in the case of an individual pursuing an 
approved program of education on at least a half- 
time basis, at the monthly rate of $500; and 
‘‘(2) in the case of an individual pursuing an 
approved program of education on less than a half- 
time basis, at the monthly rate of $250.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end of the items relating to subchapter II the fol-
lowing new item: 
‘‘3020A. Educational stipend.’’. 
(c) EFFECTIVE DATE.—Section 3020A of title 38, 
United States Code, as added by subsection (a) shall take 
effect on the date that is two years after the date of the 
enactment of this Act and shall apply with respect to 
months beginning after that date. 
SEC. 5. EXTENSION OF PERIOD FOR COLLECTION OF FEE 
FOR BASIC EDUCATIONAL ASSISTANCE. 
(a) BASIC EDUCATIONAL ASSISTANCE FOR SERVICE 
ON ACTIVE DUTY.—Section 3011(b)(1) of title 38, United 
States Code, is amended— 
(1) by striking ‘‘$100’’ and inserting ‘‘$50’’; 
and 
(2) by striking ‘‘12’’ and inserting ‘‘24’’. 
(b) BASIC EDUCATIONAL ASSISTANCE FOR SERVICE 
IN THE SELECTED RESERVE.—Section 3012(c)(1) of such 
title is amended— 
(1) by striking ‘‘$100’’ and inserting ‘‘$50’’; 
and 
(2) by striking ‘‘12’’ and inserting ‘‘24’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date that is 90 days 
after the date of the enactment of this Act. 
SEC. 6. USE OF EDUCATIONAL ASSISTANCE FOR BUSINESS 
COURSES AND SEMINARS. 
(a) BASIC
EDUCATIONAL
ASSISTANCE.—Section 
3452(b) of title 38, United States Code, is amended by 
adding at the end the following new sentence: ‘‘Such term 
also includes business courses and seminars, if such 
courses or seminars are related to the operation of a busi-
ness. Such term also includes continuing education 
courses, as designated by the Secretary.’’. 
(b) SURVIVORS’ AND DEPENDENTS’ EDUCATIONAL 
ASSISTANCE.—Section 3501(a)(5) of title 38, United 
States Code, is amended by adding at the end the fol-
lowing new sentences: ‘‘Such term also includes business 
courses and seminars, if such courses or seminars are re-
lated to the operation of a business. Such term also in-
cludes continuing education courses, as designated by the 
Secretary.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on the date that 
is two years after the date of the enactment of this Act. 
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SEC. 7. USE OF EDUCATIONAL ASSISTANCE FOR COURSES 
TAKEN TO PREPARE FOR LICENSING OR CER-
TIFICATION TESTS. 
(a) BASIC
EDUCATIONAL
ASSISTANCE.—Section 
3452(b) of title 38, United States Code, is amended by 
inserting after the fourth sentence the following new sen-
tence: ‘‘Such term also includes preparatory courses for 
licensing or certification tests described in the preceding 
sentence, as designated by the Secretary.’’. 
(b) SURVIVORS’ AND DEPENDENTS’ EDUCATIONAL 
ASSISTANCE.—Section 3501(a)(5) of title 38, United 
States Code, is amended by inserting after the second sen-
tence the following new sentence: ‘‘Such term also includes 
preparatory courses for licensing or certification tests de-
scribed in the preceding sentence, as designated by the 
Secretary.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on the date that 
is two years after the date of the enactment of this Act. 
SEC. 8. USE OF EDUCATIONAL ASSISTANCE TO REPAY FED-
ERAL STUDENT LOANS. 
(a) IN GENERAL.—Subchapter II of chapter 30 of 
title 38, United States Code, as amended by section 4, 
is further amended by inserting after section 3020A the 
following new section: 
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‘‘§ 3020B. Use of educational assistance benefits for 
the repayment of Federal student loans 
for certain courses of education 
‘‘(a) USE OF BENEFITS.—Notwithstanding any other 
provision of this chapter, an individual who is serving on 
active duty and who is entitled to educational assistance 
under this subchapter may apply amounts of such edu-
cational assistance otherwise available to the individual to 
repay some or all of any Federal student loan balance 
owed by the individual for a course of education. 
‘‘(b) LIMITATION ON PAYMENTS.—(1) The amount 
of an individual’s entitlement to educational assistance 
that the individual may apply to the repayment of a stu-
dent loan balance under subsection (a) may not exceed 
$6,000 in any 12-month period. 
‘‘(2) In no event shall payment of educational assist-
ance under this section exceed the amount of the individ-
ual’s available entitlement under this chapter. 
‘‘(c) AMOUNT OF PAYMENTS.—The Secretary shall 
make monthly payments under this section in such 
amounts as the individual may elect for the repayment of 
a Federal student loan of such an individual. 
‘‘(d) ARRANGEMENTS TO MAKE PAYMENTS.—The 
Secretary shall enter into such arrangements, and shall 
prescribe such regulations, as may be necessary to carry 
out this section. 
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‘‘(e) FEDERAL STUDENT LOAN DEFINED.—In this 
section, the term ‘Federal student loan’ means any loan 
made under title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070 et seq.).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
of subchapter II of chapter 30 of such title is amended 
by inserting after the item relating to section 3020 the 
following new item: 
‘‘3020B. Use of educational assistance benefits for the repayment of Federal 
student loans for certain courses of education.’’. 
(c) EFFECTIVE DATE.—Section 3020B of title 38, 
United States Code, as added by subsection (a) shall apply 
with respect to educational assistance paid for months be-
ginning after the date that is two years after the date of 
the enactment of this Act. 
SEC. 9. OPPORTUNITY TO WITHDRAW ELECTION NOT TO 
ENROLL IN EDUCATIONAL ASSISTANCE PRO-
GRAM. 
(a) BASIC EDUCATIONAL ASSISTANCE FOR ACTIVE 
DUTY SERVICE.— 
(1) OPPORTUNITY TO WITHDRAW.—Subsection 
(c) of section 3011 of title 38, United States Code, 
is amended by adding at the end the following new 
paragraph: 
‘‘(4) An individual who makes an election not to re-
ceive educational assistance under paragraph (1) may 
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withdraw that election at any time and, after making such 
withdrawal, shall be entitled to educational assistance 
under this chapter in the same manner as if the individual 
had never made that election, if— 
‘‘(A) at the time the individual makes such 
withdrawal, the individual is serving on active duty 
as a member of the Armed Forces; and 
‘‘(B) the basic pay of the individual is reduced 
by, or the individual otherwise pays to the Secretary, 
$1,200 by not later than 90 days after the date on 
which the individual is discharged or released from 
active duty in the Armed Forces.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (1) 
of such subsection is amended in the third sentence 
by striking ‘‘Any individual’’ and inserting ‘‘Except 
as provided in paragraph (4), any individual’’. 
(b) BASIC EDUCATIONAL ASSISTANCE FOR SERVICE 
IN THE SELECTED RESERVE.— 
(1) OPPORTUNITY TO WITHDRAW.—Subsection 
(d) of section 3012 of title 38, United States Code, 
is amended by adding at the end the following new 
paragraph: 
‘‘(4) An individual who makes an election not to re-
ceive educational assistance under paragraph (1) may 
withdraw that election at any time and, after making such 
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withdrawal, shall be entitled to educational assistance 
under this chapter in the same manner as if the individual 
had never made that election, if— 
‘‘(A) at the time the individual makes such 
withdrawal, the individual is serving on active duty 
as a member of the Armed Forces; and 
‘‘(B) the basic pay of the individual is reduced 
by, or the individual otherwise pays to the Secretary, 
$1,200 by not later than 90 days after the date on 
which the individual is discharged or released from 
active duty in the Armed Forces.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (1) 
of such subsection is amended in the third sentence 
by striking ‘‘Any individual’’ and inserting ‘‘Except 
as provided in paragraph (4), any individual’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on the date that 
is 90 days after the date of the enactment of this Act and 
shall apply with respect to an individual who is serving 
on active duty as a member of the Armed Forces on or 
after that date. 
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SEC. 10. MONTGOMERY GI BILL BENEFITS NOT TO REDUCE 
FINANCIAL AID. 
(a) IN GENERAL.—Section 480(j) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087vv(j)) Act is amend-
ed— 
(1) in paragraph (1), by striking ‘‘including vet-
erans’ education benefits as defined in subsection 
(c),’’ and inserting ‘‘including, subject to paragraph 
(4), veterans’ education benefits as defined in sub-
section (c),’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(4) Notwithstanding paragraph (1), estimated fi-
nancial assistance not received under this title shall not 
include any veterans’ benefits paid under chapter 30 of 
title 38, United States Code.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect on the date that is 90 days 
after the date of the enactment of this Act. 
SEC. 11. EXTENSION OF INCREASE IN BENEFIT FOR CER-
TAIN INDIVIDUALS PURSUING APPRENTICE-
SHIPS OR ON-JOB TRAINING. 
(a) SURVIVORS AND DEPENDENTS.—Subsection (c) 
of such section is amended by striking ‘‘January 1, 2008’’ 
and inserting ‘‘January 1, 2014’’. 
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(b) MEMBERS OF THE SELECTED RESERVE.—Sec-
tion 103(d) of the Veterans Earn and Learn Act of 2004 
(Public Law 108–454; 38 U.S.C. 3032 note) is amended 
by striking ‘‘January 1, 2008’’ and inserting ‘‘January 1, 
2014’’. 
(c) CERTAIN OTHER INDIVIDUALS.—Section 103(a) 
of the Veterans Earn and Learn Act of 2004 (Public Law 
108–454; 38 U.S.C. 3032 note) is amended by striking 
‘‘January 1, 2008’’ and inserting ‘‘January 1, 2014’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date that is 90 days 
after the date of the enactment of this Act. 
SEC. 12. MODIFICATION OF AMOUNT AVAILABLE FOR REIM-
BURSEMENT OF STATE AND LOCAL AGEN-
CIES ADMINISTERING VETERANS EDUCATION 
BENEFITS. 
Section 3674(a)(4) of title 38, United States Code, 
is amended by striking ‘‘$13,000,000’’ and all that follows 
through ‘‘fiscal year 2007,’’. 
SEC. 13. PROVISION OF BASIC EDUCATIONAL ASSISTANCE 
BENEFITS 
FOR 
VETERANS 
DISCHARGED 
FROM ACTIVE DUTY WITH GENERAL DIS-
CHARGE. 
(a) ACTIVE DUTY SERVICE.—Section 3011(a)(3)(B) 
of title 38, United States Code, is amended by inserting 
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