I 
111TH CONGRESS 
1ST SESSION H. R. 1336 
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 
MARCH 5, 2009 
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 Armed Services, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
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. 
This Act may be cited as the ‘‘Veterans Education 
Improvement Act of 2009’’. 
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SEC. 2. USE OF EDUCATIONAL ASSISTANCE FOR BUSINESS 
COURSES AND SEMINARS. 
(a) IN GENERAL.—The Secretary of Veterans Affairs 
shall ensure that individuals entitled to educational assist-
ance under laws administered by the Secretary are entitled 
to use such assistance for business courses and seminars, 
if such courses or seminars are related to the operation 
of a business, and for continuing education courses. The 
Secretary shall treat the courses referred to in the pre-
ceding sentence in a similar manner as licensing and cer-
tification courses. 
(b) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect on September 1, 2010. 
SEC. 3. 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 
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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 September 1, 
2010. 
SEC. 4. USE OF EDUCATIONAL ASSISTANCE TO REPAY FED-
ERAL STUDENT LOANS. 
(a) MONTGOMERY GI BILL.— 
(1) IN GENERAL.—Subchapter II of chapter 30 
of title 38, United States Code, is amended by in-
serting after section 3020 the following new section: 
‘‘§ 3020A. 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, and subject to subsections (b) 
through (e), an individual who is serving on active duty 
and who is entitled to educational assistance under this 
subchapter may apply amounts of such educational assist-
ance 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 pursued by the indi-
vidual. 
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‘‘(b) LIMITATIONS 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 
$7,000 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. 
‘‘(3) An individual entitled to educational assistance 
under this subchapter may not apply such educational as-
sistance to any of the following: 
‘‘(A) A loan made to the parents of a dependent 
student under section 428B of the Higher Education 
Act of 1965. 
‘‘(B) A Federal Direct PLUS Loan made to the 
parents of a dependent student. 
‘‘(C) A loan made under section 428C or 
455(g) of such Act, to the extent that such loan was 
used to repay— 
‘‘(i) a loan made to the parent of a de-
pendent student under section 428B of such 
Act; or 
‘‘(ii) a Federal Direct PLUS Loan made to 
the parents of a dependent student. 
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‘‘(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. 
‘‘(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.).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 3020 
the following new item: 
‘‘3020A. Use of educational assistance benefits for the repayment of Federal 
student loans for certain courses of education.’’. 
(b) POST-9–11 EDUCATIONAL ASSISTANCE PRO-
GRAM.— 
(1) IN GENERAL.—Subchapter II of chapter 33 
of title 38, United States Code, is amended by in-
serting after section 3319 the following new section: 
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‘‘§ 3320. 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, and subject to subsections (b) 
through (e), an individual who is serving on active duty 
and who is entitled to educational assistance under this 
subchapter may apply amounts of such educational assist-
ance 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 pursued by the indi-
vidual. 
‘‘(b) LIMITATIONS ON PAYMENTS.— 
‘‘(1) LIMITATION
ON
AMOUNT
IN
ANY
12- 
MONTH PERIOD.—The amount of an individual’s en-
titlement to educational assistance that the indi-
vidual may apply to the repayment of a student loan 
balance under subsection (a) may not exceed $6,000 
in any 12-month period. 
‘‘(2) LIMITATION ON TOTAL AMOUNT.—In no 
event shall payment of educational assistance under 
this section exceed the amount of the individual’s 
available entitlement under this chapter. 
‘‘(3) PROHIBITION
ON
USE
FOR
CERTAIN 
LOANS.—An individual entitled to educational assist-
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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.).’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 3319 
the following new item: 
‘‘3320. Use of educational assistance benefits for the repayment of Federal stu-
dent loans for certain courses of education.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to educational assist-
ance paid for months beginning on or after September 1, 
2010. 
SEC. 5. 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 
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, at the time the individual 
makes such withdrawal, the individual is serving on active 
duty as a member of 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 
withdrawal, shall be entitled to educational assistance 
under this chapter in the same manner as if the individual 
had never made that election, if, at the time the individual 
makes such withdrawal, the individual is serving on active 
duty as a member of the Armed Forces.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (1) 
of such subsection is amended in the third sentence 
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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 September 1, 
2010, 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. 
SEC. 6. EXTENSION OF INCREASE IN BENEFIT FOR CER-
TAIN INDIVIDUALS PURSUING APPRENTICE-
SHIPS OR ON-JOB TRAINING. 
(a) MEMBERS OF THE SELECTED RESERVE.—Sub-
section (d) of section 103 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’’. 
(b) SURVIVORS AND DEPENDENTS.—Subsection (c) 
of such section is amended by striking ‘‘January 1, 2008’’ 
and inserting ‘‘January 1, 2014’’. 
(c) CERTAIN OTHER INDIVIDUALS.—Subsection (a) 
of such section 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 September 1, 2010. 
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SEC. 7. PROVISION OF BASIC EDUCATIONAL ASSISTANCE 
BENEFITS 
FOR 
VETERANS 
DISCHARGED 
FROM ACTIVE DUTY WITH GENERAL DIS-
CHARGE. 
(a) MONTGOMERY GI BILL.— 
(1) 
ACTIVE
DUTY
SERVICE.—Section 
3011(a)(3)(B) of title 38, United States Code, is 
amended by inserting ‘‘or a general discharge (under 
honorable conditions)’’ before the period at the end. 
(2) SERVICE IN SELECTED RESERVE.—Section 
3012(a)(3)(A) of such title is amended by inserting 
‘‘or a general discharge (under honorable condi-
tions)’’ before the semicolon. 
(b) POST-9–11 EDUCATIONAL ASSISTANCE PRO-
GRAM.—Section 3311(c)(1) of such title is amended by in-
serting ‘‘or a general discharge (under honorable condi-
tions)’’ before the period at the end. 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply with respect to an indi-
vidual who is discharged from service in the Armed Forces 
on or after September 1, 2010. 
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SEC. 8. INCREASE IN AMOUNT OF REPORTING FEE PAY-
ABLE TO EDUCATIONAL INSTITUTIONS THAT 
ENROLL 
VETERANS 
RECEIVING 
EDU-
CATIONAL ASSISTANCE. 
(a) INCREASE IN AMOUNT OF FEE.—Subsection (c) 
of section 3684 of title 38, United States Code, is amend-
ed— 
(1) by striking ‘‘$7’’ and inserting ‘‘$21’’; and 
(2) by striking ‘‘$11’’ and inserting ‘‘$21’’. 
(b) TECHNICAL CORRECTION.—Subsection (a) of 
such section is amended by striking the second comma 
after ‘‘34’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on September 1, 
2010. 
SEC. 9. PROVISION OF ADDITIONAL AREAS OF WORK- 
STUDY FOR VETERANS. 
(a) IN GENERAL.—Subsection (a)(4) of section 3485 
of title 38, United States Code, is amended by adding at 
the end the following new subparagraph: 
‘‘(G) The provision of placement services de-
scribed in section 3104(a)(5) of this title at an edu-
cational institution carried out under the supervision 
of a Department employee.’’. 
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(b) WORK STUDY FOR STUDENTS ENROLLED ON 
HALF-TIME BASIS.—Subsection (b) of such section is 
amended— 
(1) in the first sentence, by striking ‘‘three- 
quarters’’ and inserting ‘‘half’’; and 
(2) in the third sentence, by striking ‘‘three- 
quarter-time’’ and inserting ‘‘half-time’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to agreements entered 
into under section 3485 of title 38, United States Code, 
on or after September 1, 2010. 
SEC. 10. 5-YEAR PILOT PROGRAM FOR ON-CAMPUS WORK- 
STUDY POSITIONS. 
(a) ESTABLISHMENT OF PILOT PROGRAM.—Begin-
ning not later than two years after the date of the enact-
ment of this Act, the Secretary of Veterans Affairs shall 
conduct a five-year pilot project to test the feasibility and 
advisability of expanding the scope of qualifying work- 
study activities under subsection (a)(4) of section 3485 
of title 38, United States Code, including work-study posi-
tions available on site at educational institutions. 
(b) TYPE OF WORK-STUDY POSITIONS.—The work- 
study positions referred to in subsection (a) may include 
positions in academic departments (including positions as 
tutors or research, teaching, and lab assistants) and in 
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student services (including positions in career centers and 
financial aid, campus orientation, cashiers, admissions, 
records, and registration offices). 
(c) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out the pilot project under this sec-
tion, including regulations providing for the supervision of 
work-study positions referred to in subsection (a) by ap-
propriate personnel. 
(d) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary 
$10,000,000 for each of the fiscal years during which the 
Secretary carries out the pilot project under this section. 
SEC. 11. MODIFICATION OF ADVANCE PAYMENT OF INITIAL 
EDUCATIONAL ASSISTANCE OR SUBSISTENCE 
ALLOWANCE. 
(a) MODIFICATION.—Section 3680(d)(2) of title 38, 
United States Code, is amended by inserting after the 
third sentence the following new sentence: ‘‘For purposes 
of the entitlement to educational assistance of the veteran 
or person receiving an advance payment under this sub-
section, the advance payment shall be charged against the 
final month of the entitlement of the person or veteran 
and, if necessary, the penultimate such month. In no event 
may any veteran or person receive more than one advance 
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payment under this subsection during any academic 
year.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply with respect to an advance pay-
ment of educational assistance made on or after Sep-
tember 1, 2010. 
SEC. 12. CONSIDERATION OF ADDITIONAL CONTRIBUTIONS 
AND PAYMENTS IN CALCULATING ENTITLE-
MENT CHARGE FOR CERTAIN PROGRAMS OF 
EDUCATION. 
(a) TUITION ASSISTANCE.—Section 3014(b)(2)(C) of 
title 38, United States Code, is amended by striking ‘‘or 
(e)(1) of section 3015 of this title,’’ and inserting ‘‘(e)(1), 
or (g) of section 3015 of this title, or section 16131(I) 
of title 10,’’. 
(b) FLIGHT TRAINING.—Section 3032(e)(3) of such 
title is amended by striking ‘‘or (e)(1) of section 3015 of 
this title,’’ and inserting ‘‘(e)(1), or (g) of section 3015 
of this title, or section 16131(I) of title 10,’’. 
(c) LICENSING AND CERTIFICATION TESTS.—Section 
3032(f)(2) of such title is amended by striking ‘‘or (e)(1) 
of section 3015 of this title,’’ and inserting ‘‘(e)(1), or (g) 
of section 3015 of this title, or section 16131(I) of title 
10,’’. 
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SEC. 13. ACCELERATED PAYMENT OF EDUCATIONAL AS-
SISTANCE. 
(a) IN GENERAL.—Chapter 33 of title 38, United 
States Code, as amended by section 4, is further amended 
by inserting after section 3320, as added by section 4, the 
following new section: 
‘‘§ 3320A. Accelerated payment of educational assist-
ance 
‘‘(a) PAYMENT ON ACCELERATED BASIS.—The edu-
cational assistance allowance payable under this chapter 
with respect to an eligible person described in subsection 
(b) may, upon the election of such eligible person, be paid 
on an accelerated basis in accordance with this section. 
‘‘(b) ELIGIBLE PERSON.—An eligible person de-
scribed in this subsection is a member of a reserve compo-
nent entitled to educational assistance under this chapter 
who is— 
‘‘(1) enrolled in an approved program of edu-
cation not exceeding two years in duration and not 
leading to an associate, bachelors, masters, or other 
degree, subject to subsection (g); and 
‘‘(2) charged tuition and fees for the program 
of education that, when divided by the number of 
months (and fractions thereof) in the enrollment pe-
riod, exceeds the amount equal to 200 percent of the 
monthly rate of educational assistance allowance 
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otherwise payable with respect to the person under 
section 3313 of this title. 
‘‘(c) AMOUNT OF ACCELERATED PAYMENT.— 
‘‘(1) AMOUNT.—The amount of the accelerated 
payment of educational assistance payable with re-
spect to an eligible person making an election under 
subsection (a) for a program of education shall be 
the lesser of— 
‘‘(A) the amount equal to 60 percent of the 
established charges for the program of edu-
cation; or 
‘‘(B) the aggregate amount of educational 
assistance allowance to which the person re-
mains entitled under this chapter at the time of 
the payment. 
‘‘(2) ESTABLISHED CHARGES.— 
‘‘(A) DEFINITION.—In this subsection, ex-
cept as provided in subparagraph (B), the term 
‘established charges’, in the case of a program 
of education, means the actual charges (as de-
termined pursuant to regulations prescribed by 
the Secretary of Veterans Affairs) for tuition 
and fees which similarly circumstanced individ-
uals who are not eligible for benefits under this 
chapter and who are enrolled in the program of 
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education would be required to pay. Established 
charges shall be determined on the following 
basis: 
‘‘(i) In the case of an individual en-
rolled in a program of education offered on 
a term, quarter, or semester basis, the tui-
tion and fees charged the individual for the 
term, quarter, or semester. 
‘‘(ii) In the case of an individual en-
rolled in a program of education not of-
fered on a term, quarter, or semester 
basis, the tuition and fees charged the in-
dividual for the entire program of edu-
cation. 
‘‘(B) EXCEPTION.—In this subsection, the term 
‘established charges’ does not include any fees or 
payments attributable to the purchase of a vehicle. 
‘‘(3) CERTIFICATION BY EDUCATIONAL INSTI-
TUTION.—The educational institution providing the 
program of education for which an accelerated pay-
ment of educational assistance allowance is elected 
by an eligible person under subsection (a) shall cer-
tify to the Secretary of Veterans Affairs the amount 
of the established charges for the program of edu-
cation. 
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‘‘(d) TIME OF PAYMENT.—An accelerated payment 
of educational assistance allowance made with respect to 
an eligible person under this section for a program of edu-
cation shall be made not later than the last day of the 
month immediately following the month in which the Sec-
retary of Veterans Affairs receives a certification from the 
educational institution regarding— 
‘‘(1) the person’s enrollment in and pursuit of 
the program of education; and 
‘‘(2) the amount of the established charges for 
the program of education. 
‘‘(e) CHARGE AGAINST ENTITLEMENT.—For each 
accelerated payment of educational assistance allowance 
made with respect to an eligible person under this section, 
the person’s entitlement to educational assistance under 
this chapter shall be charged the number of months (and 
any fraction thereof) determined by dividing the amount 
of the accelerated payment by the full-time monthly rate 
of educational assistance allowance otherwise payable with 
respect to the person under section 3313 of this title as 
of the beginning date of the enrollment period for the pro-
gram of education for which the accelerated payment is 
made. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out this section. The regulations shall 
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include requirements, conditions, and methods for the re-
quest, issuance, delivery, certification of receipt and use, 
and recovery of overpayment of an accelerated payment 
of educational assistance allowance under this section. The 
regulations may include such elements of the regulations 
prescribed under section 3014A of this title as the Sec-
retary of Veterans Affairs considers appropriate for pur-
poses of this section. 
‘‘(g) LIMITATION.—The aggregate amount of edu-
cational assistance payable under this section in any fiscal 
year for enrollments covered by subsection (b)(1) may not 
exceed $3,000,000.’’. 
(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. Accelerated payment of educational assistance.’’. 
Æ 
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