To amend title 38, United States Code, to provide equity for tuition and fees for individuals entitled to educational assistance under the Post-9/11 Educational Assistance Program of the Department of Veterans Affairs who are pursuing programs of education at institutions of higher learning, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Education Equity Act of 
2011''.

SEC. 2. PROTECTING EQUITY FOR TUITION AND FEES FOR INDIVIDUALS ENTITLED 
              TO ASSISTANCE UNDER THE POST-9/11 EDUCATIONAL ASSISTANCE 
              PROGRAM WHO ARE PURSUING PROGRAMS OF EDUCATION AT 
              INSTITUTIONS OF HIGHER LEARNING.

    (a) In General.--Clause (i) of subparagraph (A) of paragraph (1) of 
subsection (c) of section 3313 of title 38, United States Code, is 
amended to read as follows:
                            ``(i) In the case of a program of education 
                        pursued at a public institution of higher 
                        learning, the lesser of--
                                    ``(I) the actual net cost for 
                                tuition and fees assessed by the 
                                institution for the program of 
                                education after the application of--
                                            ``(aa) any waiver of, or 
                                        reduction in, tuition and fees; 
                                        and
                                            ``(bb) any scholarship, or 
                                        other Federal, State, 
                                        institutional, or employer-
                                        based aid or assistance (other 
                                        than loans and any funds 
                                        provided under section 401(b) 
                                        of the Higher Education Act of 
                                        1965 (20 U.S.C. 1070a)) that is 
                                        provided directly to the 
                                        institution and specifically 
                                        designated for the sole purpose 
                                        of defraying tuition and fees; 
                                        or
                                    ``(II) the greater of--
                                            ``(aa) the actual net cost 
                                        for in-State tuition and fees 
                                        assessed by the institution for 
                                        the program of education after 
                                        the application of--

                                                    ``(AA) any waiver 
                                                of, or reduction in, 
                                                tuition and fees; and

                                                    ``(BB) any 
                                                scholarship, or other 
                                                Federal, State, 
                                                institutional, or 
                                                employer-based aid or 
                                                assistance (other than 
                                                loans and any funds 
                                                provided under section 
                                                401(b) of the Higher 
                                                Education Act of 1965 
                                                (20 U.S.C. 1070a)) that 
                                                is provided directly to 
                                                the institution and 
                                                specifically designated 
                                                for the sole purpose of 
                                                defraying tuition and 
                                                fees; or

                                            ``(bb) the amount equal 
                                        to--

                                                    ``(AA) for the 
                                                academic year beginning 
                                                on August 1, 2011, 
                                                $17,500; or

                                                    ``(BB) for any 
                                                subsequent academic 
                                                year, the amount in 
                                                effect for the previous 
                                                academic year under 
                                                this subclause, as 
                                                increased by the 
                                                percentage increase 
                                                equal to the most 
                                                recent percentage 
                                                increase determined 
                                                under section 3015(h) 
                                                of this title.''.

    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to the payment of educational assistance for an 
academic year beginning on or after the date of the enactment of this 
Act.

Summary: Veterans Education Equity Act of 2011 - Revises the formula for the payment by the Department of Veterans Affairs (VA) of tuition and fees for individuals entitled to educational assistance under the Post-9/11 Educational Assistance Program and pursuing programs of education at public institutions of higher learning to include, as an additional payment formula, the greater of: (1) the actual net costs for in-state tuition after applying the receipt of any tuition waivers, reductions, scholarships, or other assistance; or (2) $17,500 for the academic year beginning on August 1, 2011 (such amount to be increased each subsequent year by the average percentage increase in undergraduate tuition costs).