An Act to amend title 38, United States Code, to set a termination date for veterans' educational benefits under chapters 34 and 36, to increase vocational rehabilitation subsistence allowances, educational and training assistance allowances, and special allowances paid to eligible veterans and persons under chapters 31, 34, and 35; to extend the basic educational assistance eligibility for veterans and for certain dependents from thirty-six to forty-five months; to improve and expand the special programs for educationally disadvantaged veterans and servicemen under chapter 34; to improve and expand the education loan program for veterans and persons eligible for benefits under chapter 34 or 35; to create a new chapter 32 (Post-Vietnam Era Veterans' Educational Assistance program) for those entering military service on or after January 1, 1977; to make other improvements in the educational assistance program; to clarify, codify, and strengthen the administration of educational benefits to prevent or reduce abuse; to promote the employment of veterans by improving and expanding the provisions governing the operation of Veterans' Employment Service; and for other purposes.
PL 94-502 (S.969), enacted 10/15/1976

PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2383 
Public Law 94-502 
94th Congress 
An Act 
To amend title 38, United States Code, to set a termination date for veterans' 
educational benefits under chapters 34 and 36, to increase vocational rehabili-
tation subsistence allowances, educational and training assistance allowances, 
and special allowances paid to eligible veterans and persons under chapters 
31, 34, and 35; to extend the basic educational assistance eligibility for vet-
erans and for certain dependents from thirty-six to forty-five months; to 
improve and expand the special programs for educationally disadvantaged 
veterans and servicemen under chapter 34; to improve and expand the educa-
tion loan program for veterans and persons eligible for benefits under chapter 
34 or 35; to create a new chapter 32 (Post-Vietnam Era Veterans' Educational 
Assistance program) for those entering military service on or after January 1, 
1977; to make other improvements in the educational assistance prograiji; to 
clarify, codify, and strengthen the administration of educational benefits to 
prevent or reduce abuse; to promote the employment of veterans by improving 
and expanding the provisions governing the operation of Veterans' Employ-
ment Service; and for other purposes. 
Be it enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled, That this Act may 
be cited as the "Veterans' Education and Employment Assistance 
Act of 1976". 
TITLE I—CHAPTER 31 DISABLED VETERANS' VOCA-
TIONAL 
REHABILITATION 
RATE 
AND 
PROGRAM 
ADJUSTMENTS 
SEC. 101. The table contained in section 1504(b) of title 38, United 
States Code, is amended to read as follows: 
Oct. 15, 1976 
[S. 969] 
Veterans' 
Education and 
Employment 
Assistance Act of 
1976. 
38 u s e 101 note. 
"Column I 
Type of training 
Institutional: 
Full-time 
Three-quarter-
time 
Half-time 
Farm cooperative, 
apprentice, or 
other on-job 
training: 
Full-time 
Column 
II 
No de-
pendents 
$226 
170 
113 
197 
Column 
III 
One de-
pendent 
$280 
210 
140 
238 
Column 
IV 
Two de-
pendents 
$329 
247 
165 
275 
Column V 
More than two 
dependents 
The amount in 
column IV, 
plus the fol-
lowing for 
each de-
pendent in 
excess of 
two: 
$24 
18 
12 
• _ 
18". 
90 STAT. 2384 
PUBLIC LAW 94-502—OCT. 15, 1976 
SEC. 102. Section 1503(c) of title 38, United States Code, is amended 
by striking out ", but not beyond ten years after such termination 
date, or June 30, 1975, whichever date is the later," and inserting in 
lieu thereof "when such action is determined by the Administrator to 
be necessary for such veteran based upon such veteran's disability and 
need for vocational rehabilitation,". 
SEC. 103. Section 1511 of title 38, United States Code, is amended 
by adding at the end thereof the following: "Notwithstanding any 
other provision of law, the facilities of any agency of the United 
States, as designated in clause (3) of this section, may be used to 
provide unpaid training or work experience as part or all of a vet-
eran's program of vocational rehabilitation when the Administrator 
determines such training or work experience to be necessary to accom-
plish vocational rehabilitation. While pursuing such training or work 
experience, an uncompensated veteran shall be deemed an employee of 
the United States for the purposes of the benefits of chapter 81 of title 
5 but not for the purposes of laws administered by the Civil Service 
Commission.". 
SEC. 104. Chapter 31 of title 38, United States Code, is amended— 
38 use 1502. 
(1) by striking out in the second sentence of section 1502(b) 
"him" and inserting in lieu thereof "the veteran"; 
38 use 1503. 
(2) by striking out in subsections (a) and (b) of section 1503 
"his", "he", and "him" each time they appear and inserting in lieu 
thereof "the veteran's", "the veteran", and "the veteran", 
respectively; 
(3) by striking out in section 1503(c) "him" and "he" each time 
they appear and inserting in lieu thereof "the veteran" and by 
striking out "his" the first and second time it appears and insert-
ing in lieu thereof "the veteran's" and "the veteran", respectively; 
38 use 1504. 
(4) by striking out in subsections (a) and (c) of section 1504 
"his" and "him" and inserting in lieu thereof "the veteran's" and 
"the employer", respectively; 
38 use 1505. 
(5} by striking out in section 1505 "he" and "his" and insert-
ing m lieu thereof "the Administrator" and "the veteran's", 
respectively; 
38 use 1507. 
(6) by striking out in section 1507 "him" and inserting in lieu 
thereof "the Administrator"; 
38 use 1508. 
(7) by striking out in section 1508 "he" and inserting in lieu 
thereof "the Administrator"; 
38 use 1509. 
(8) by striking out in section 1509(a) "him", "his", and "he" 
each time they appear and inserting in lieu thereof "the veteran", 
"the veteran's", and "the veteran", respectively; 
(9) by striking out in section 1509(b) "he" and inserting in 
lieu thereof "the Administrator"; 
38 use 1510. 
(10) by striking out in section 1510 "he" each time it appears 
and inserting in lieu thereof "such person"; and 
38 use 1511. 
(11) by striking out in section 1511 "he" and inserting in lieu 
thereof "the Administrator". 
TITLE II—VETEEANS' EDUCATION KATE AND PROGRAM 
ADJUSTMENTS 
SEC. 201. Chapter 34 of title 38, United States Code, is amended— 
(1) by amending the table contained in paragraph (1) of sec-
38 use 1682. 
tion 1682(a) to read as follows: 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2385 
"Column I 
Type of program 
Institutional: 
Full-time 
Three-quarter-
time 
Half-time 
Cooperative 
Column 
II 
No de-
pendents 
$292 
219 
146 
235 
Column 
III 
One de-
pendent 
$347 
260 
174 
276 
Column 
IV 
Two de-
pendents 
$396 
297 
198 
313 
Column V 
More than two 
dependents 
The amount in 
column IV, 
plus the fol-
lowing for 
each de-
pendent in 
excess of 
two: 
$24 
18 
12 
18"; 
(2) by striking out in section 1682(b) "$270" and inserting in 38 USC 1682. 
lieu thereof "$292"; 
(3) by amending the table contained in paragraph (2) of sec-
tion 1682 (c) to read as follows: 
"Column I 
Basis 
Full-time 
Three-quarter-time. _ 
Half-time 
Column 
II 
No de-
pendents 
$235 
176 
118 
Column 
III 
One de-
pendent 
$276 
207 
138 
Column 
IV 
Two de-
pendents 
$313 
235 
157 
Column V 
More than two 
dependents 
The amount in 
column IV, 
plus the fol-
lowing for 
each de-
pendent in 
excess of 
two: 
$18 
14 
9"; 
and 
(4) by striking out in section 1696(b) "$270" and inserting in 
38 USC 1696 
lieu thereof "$292". 
SEC. 202. Section 1652 of title 38, United States Code, is amended 
by adding at the end thereof the following new subsections: 
"(f) For the purposes of this chapter and chapter 36 of this title, 
the term 'institution of higher learning' means a college, university, or 
similar institution, including a technical or business school, offering 
postsecondary level academic instruction that leads to an associate or 
higher degree if the school is empowered by the appropriate State 
education authority under State law to grant an associate or higher 
"Institution of 
higher learning." 
38 USC 1770 et 
seq. 
90 STAT. 2386 
PUBLIC LAW 94-502—OCT. 15, 1976 
degree. When there is no State law to authorize the granting of a 
degree, the school may be recognized as an institution of higher learn-
ing if it is accredited for degree programs by a recognized accrediting 
agency. Such term shall also include a hospital offering educational 
programs at the postsecondary level without regard to whether the 
hospital grants a postsecondary degree. 
"Standard 
"(g) For the purposes of this chapter and chapter 36 of this title, 
college degree." 
the term 'standard college degree' means an associate or higher degree 
38 use 1770 et 
awarded by (1) an institution of higher learning that is accredited as 
*
*
9
'
- 
a collegiate institution by a recognized regional or national accredit-
ing agency; or (2) an institution of higher learning that is a 'candi-
date' for accreditation as that term is used by the regional or national 
accrediting agencies; or (3) an institution of higher learning upon 
completion of a course which is accredited by an agency recognized to 
accredit specialized degree-level programs. For the purpose of this 
section, the accrediting agency must be one recognized by the Commis-
sioner of Education under the provisions of section 1775 of this title.". 
SEC. 203. Section 1661 of title 38, United States Code, is amended— 
(1) by striking out in the second sentence of subsection ^a) all 
after "period of" the second time it appears and inserting m lieu 
thereof "45 months (or the equivalent thereof in part-time educa-
tional assistance)."; and 
(2) by amending subsection (c) to read as follows: 
"(c) Excej)t as provided in subsection (b) and in subchapters V 
38 use 1690, 
and VI of this chapter, no eligible veteran shall receive educational 
1695. 
assistance under this chapter in excess of 45 months.". 
Study. 
SEC. 204. (a) The Administrator shall carry out a study of the voca-
38 use 1501 
tional objective programs approved for the enrollment of veterans and 
°®*®- 
other eligible persons under chapters 31, 34, 35, and 36 of title 38, 
^^ use 1501, 
United States Code. The study shall include the extent to which such 
1700 1770 
programs are in compliance with the applicable provisions of such 
chapters particularly the requirements of section 1673(a) (2) of that 
38 use 1673. 
title. 
(b) The findings and report of such study with respect to the pro-
visions of section 1673(a) (2) of such title shall include, but shall not 
be limited to— 
(1) the number of veterans and institutions submitting justi-
fication asserting compliance with the requirements of such sec-
tion and the extent to which any courses were challenged or 
disqualified by a State approving agency or by the Veterans' 
Administration; 
(2) the number of institutions and courses for which justifica-
tion showing compliance with the requirements of such section 
was not submitted; 
(3) the number of courses for which justification showing com-
pliance with the requirements of this section was submitted and 
actively reviewed by either the appropriate State approving 
agency or by the Veterans' Administration; 
(4) the extent to which courses subject to the requirements of 
such section have not been identified or surveyed; 
(5) the extent to which vocational objective programs have 
been converted to degree programs following enactment of Public 
38 use 1501 
Law 93-508; 
^^^^- 
(6) information as to completion rates of those courses sub-
mitting placement reports pursuant to such section; 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2387 
(7) the extent to which justification submitted pursuant to 
such section disclosed invalid survey population; 
(8) the extent to which justification submitted pursuant to 
such section disclosed improper exclusion of students who com-
pleted the course but did not take or pass a licensing examination 
given by the State; 
(9) the extent to which justification submitted pursuant to 
such section disclosed improper exclusion of persons employed in 
other fields; 
(10) the extent to which justification submitted pursuant to 
such section disclosed improper exclusion of persons as being in 
closely related occupations, when in fact they were not; 
(11) the extent to which justification submitted pursuant to 
such section disclosed improper exclusion of some persons as not 
being available for employment; 
(12) the extent to which there are deficiencies in basic proce-
dures, instructions, and forms issued pursuant to such section; 
and 
(13) the extent to which vocational objective programs are 
being pursued for avocational or recreational purposes. 
(c) The Administrator shall report the results of the study carried Report to 
out under this section to the Congress and the President not later President and 
than 180 days after the date of enactment of this Act and shall include '"''"g''®^^-
in such report any recommendations for legislative or administrative 
action the Administrator deems appropriate. 
SEC. 205. Section 1673 of title 38, United States Code, is amended— 
(1) by striking out at the end of subsection (a) (2) "or"; 
(2) by striking out the period at the end of subsection (a) (3) 
and inserting in lieu thereof "; or"; 
(3) by adding at the end of subsection (a) a new clause (4) 
as follows: 
"(4) any independent study program except one leading to a 
standard college degree."; and 
(4) by amending subsection (d) to read as follows: 
"(d) The Administrator shall not approve the enrollment of any 
eligible veteran, not already enrolled, in any course (other than one 
offered pursuant to subchapter V, an^ farm cooperative training 
course, or any course described in section 1789(b)(6) of this title) 
for any period during which the Administrator finds that more than 
85 per centum of the students enrolled in the course are having all 
or part of their tuition, fees, or other charges paid to or for them by 
the educational institution, by the Veterans' Administration under 
this title and/or by grants from any Federal agency. The Administra-
tor may waive the requirements of this subsection, in whole or in 
part, if the Administrator determines it to be in the interest of the 
eligible veteran and the Federal Government.". 
SEC. 206. Section 1674 of title 38, United States Code, is amended 
by inserting immediately after the first sentence thereof the following: 
"Unless the Administrator finds there are mitigating circumstances, 
progress will be considered unsatisfactory at any time the eligible 
veteran is not progressing at a rate that will permit such veteran to 
graduate within the approved length of the course based on the 
training time as certified to the Veterans' Administration.". 
SEC. 207. Section 1682 of title 38, United States Code, is amended 
by adding a new subsection (e) at the end thereof as follows: 
90 STAT. 2388 
PUBLIC LAW 94-502—OCT. 15, 1976 
Special 
supplementary 
assistance. 
38 
use 
1652. 
38 
use 
1697A. 
38 
use 
1696. 
38 
use 
1631. 
38 use 1652. 
38 use 1661. 
38 use 1662. 
38 use 1663. 
38 use 1670. 
38 use 1671. 
38 use 1673. 
38 use 1674. 
"(e^ The educational assistance allowance of an eligible veteran 
pursuing an independent study program which leads to a standard 
college degree shall be computed at the rate provided in subsection 
(b) (2) of this section. In those cases where independent study is com-
bined with resident training and the resident training constitutes the 
major portion of such training, the maximum allowance may not 
exceed the full-time institutional allowance provided under subsection 
(a) (1) of this section.". 
SEC. 208. Section 1685(b) of title 38, United States Code, is amended 
by adding at the end thereof the following: "In the event the veteran 
ceases to be a full-time student before completing such agreement, the 
veteran may, with the approval of the Administrator, be permitted 
to complete such agreement.". 
SEC. 209. Section 1692 of title 38, United States Code, is amended, 
by striking out in subsection (b) "$60" and "$720 ' and inserting in lieu 
thereof "$65" and "$780", respectively. 
SEC. 210. Chaj)ter 34 of title 38, United States Code, is amended— 
(1) by striking out in section 1652(e) "United States Code,"; 
(2) by striking out in subsections (a) and (b) of section 1681 
"section 1780" and inserting in lieu thereof "chapter 36"; 
(3) by redesignating section 1697A as section 1698; 
(4) by striking out in the table of sections at the beginning of 
such chapter "1697A" and inserting in lieu thereof "1698"; and 
(5) by amending section 1696 by inserting at the end thereof 
the following new subsection: 
"(d) After October 31, 1976, no person other than a member of the 
Armed Forces described in section 1631(b) of this title shall be per-
mitted to enroll, or re-enroll, in any course provided under the 
authority of this subchapter.". 
SEC. 211. Chapter 34 of title 38, United States Code, is amended— 
(1) by striking out in subsections (a) and (d) of section 1652 
"he" and "wife" and inserting in lieu thereof "such individual" 
and "spouse", respectively; 
(2) by striking out in section 1661(a) "his" and "he" each time 
they appear and inserting in lieu thereof "the veteran's" and "the 
veteran", respectively; 
(3) by striking out in subsections (a), (b), and (d) of section 
1662 "his" and "he" each time they appear and inserting in lieu 
thereof "the veteran's" and "the veteran", respectively; 
(4) by striking out in section 1663 "he" each time it appears 
and inserting in lieu thereof "the Administrator"; 
(5) by striking out in section 1670 "him" each time it appears 
and inserting in lieu thereof "the veteran"; 
(6) by striking out in section 1671 "he" the first time it appears 
and inserting in lieu thereof "the Administrator", by striking out 
"he" the second time it appears and inserting in lieu thereof "the 
veteran or person", and by striking out "his"' each time it appears 
and inserting in lieu thereof "the veteran's or person's"; 
(7) by striking out in section 1673(a) "he" and "his" and 
inserting in lieu thereof "the Administrator" and "the veteran's", 
respectively; 
(8) by striking out in section 1674 "his" and "he" each time 
they appear and inserting in lieu thereof "the veteran's" and "the 
Administrator", respectively; 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2389 
(9) by striking out in section 1676 "his" and "he" and inserting 
in lieu thereof "the Administrator's" and "the Administrator", 
respectively; 
(10) by striking out in section 1681(a) "his" and inserting in 
lieu thereof "the veteran's"; 
(11) by striking out in section 1685(c) "he" and |'his" each 
time they appear and inserting in lieu thereof "the Administrator" 
and "the veteran's", respectively; 
(12) by striking out in section 1691(a) "his" and "he" each 
time they appear and inserting in lieu thereof "the veteran's" and 
"the veteran", respectively; 
(13) by striking out in section 1696(a) "he" and inserting in 
lieu thereof "the Administrator"; and 
(14) by striking out in subsections (a) and (b) of section 1698 
(as redesignated by section 211(3) of this Act) "he" and "his" 
and inserting in lieu thereof "the Administrator" and "such 
person's", respectively. 
TITLE III—CHAPTER 35 SURVIVORS' AND DEPENDENTS' 
EDUCATIONAL ASSISTANCE RATE AND 
PROGRAM 
ADJUSTMENTS 
SEC. 301. Chapter 35 of title 38, United States Code, is amended— 
(1) by striking out in section 1732(b) "$217" and inserting in 
lieu thereof "$235"; and 
(2) by amending subsection (a) of section 1742 to read as 
follows: 
"(a) While the eligible person is enrolled in and pursuing a full-
time course of special restorative training, the parent or guardian 
shall be entitled to receive on behalf of such person a special training 
allowance computed at the basic rate of $292 per month. If the charges 
for tuition and fees applicable to any such course are more than $92 
per calendar month, the basic monthly allowance may be increased by 
the amount that such charges exceed $92 a month, upon election by 
the parent or guardian of the eligible person to have such person's 
period of entitlement reduced by one day for each $9.76 that the 
special training allowance paid exceeds the basic monthly allowance.". 
SEC. 302. Section 1701(a) of title 38, United States Code, is amended 
by adding at the end thereof the following new paragraphs : 
"(10) For the purposes of this chapter and chapter 36 of this title, 
the term 'institution of higher learning' means a college, university, 
or similar institution, including a technical or business school, offering 
postsecondary level a'cademic instruction that leads to an associate or 
higher degree if the school is empowered by the appropriate State 
education authority under State law to grant an associate or higher 
degree. When there is no State law to authorize the granting of a 
degree, the school may be recognized as an institution of higher learn-
ing if it is accredited for degree programs by a recognized accrediting 
agency. Such term shall also include a hospital offering educationjQ 
programs at the postsecondary level without regard to whether the 
hospital grants a postsecondary degree. 
"(11) For the purposes of this chapter and chapter 36 of this title, 
the term 'standard college degree' means an associate or higher degree 
awarded by (A) an institution of higher learning that is accredited 
as a collegiate institution by a recognized regional or national accredit-
ing agency; or (B) an institution of higher learning that is a 'candi-
date' for accreditation as that term is used by the regional or national 
38 
use 
1676. 
38 
use 
1681. 
38 
use 
1685. 
38 
use 
1691. 
38 
use 
1696. 
38 
use 
1698. 
38 
use 
1732. 
38 
use 
1742. 
38 u s e 1701. 
"Institution of 
higher learning." 
38 u s e 1770 et 
seq. 
"Standard 
college degree." 
38 u s e 1770 et 
seq. 
90 STAT. 2390 
PUBLIC LAW 94-502—OCT. 15, 1976 
38 use 1775. 
Application. 
Discontinuance 
for unsatisfactory 
progress. 
Computation. 
accrediting agencies; or (C) an institution of higher learning upon 
completion of a course which is accredited by an agency recognized 
to accredit specialized degree-level programs. For the purpose of this 
section, the accrediting agency must be one recognized by the Com-
missioner of Education under the provisions of section 1775 of this 
title.". 
SEC. 303. Section 1711 of title 38, United States Code, as amended— 
(1) by striking out in subsection (a) "thirty-six" and inserting 
in lieu thereof "45"; and 
(2) by striking out in subsection (b) "nine" and inserting in 
lieu thereof "12". 
SEC. 304. Section 1712 of title 38, United States Code, is amended— 
(1) by striking out in clauses (3) and (4) of subsection (a) 
"five ' each time it appears and inserting in lieu thereof "8"; 
(2) by amending clause (5) of subsection (a) to read as 
follows: 
"(5) (A) if such person is enrolled in an educational institution 
regularly operated on the quarter or semester system and such 
period ends during a quarter or semester, such period shall be 
extended to the end of the quarter or semester; or 
"(B) if such person is enrolled in an educational institution 
operated on other than a quarter or semester system and such 
period ends after a major portion of the course is completed, 
such period shall be extended to the end of the course, or until 12 
weeks have expired, whichever first occurs."; and 
(3) by repealing subsection (d) and redesignating subsections 
(e), (f), and (g), as subsections (d), (e), and (f), respectively. 
SEC. 305. Section 1713 of title 38, United States Code, is amended 
to read as follows: 
"The parent or guardian of a person or the eligible person if such 
person has attained legal majority for whom educational assistance is 
sought under this chapter shall submit an application to the Adminis-
trator which shall be in such form and contain such information as the 
Administrator shall prescribe. If the Administrator finds that the 
person on whose behalf the application is submitted is an eligible per-
son, the Administrator shall approve the application provisionally. 
The Administrator shall notify the parent or guardian or eligible 
person (if the person has attained legal majority) of the provisional 
approval or of the disapproval of the application.". 
SEC. 306. Section 1723(a) of title 38, United States Code, is 
amended— 
^1) by striking out at the end of clause (2) "or"; 
(2) by striking out at the end of clause (3) the period and 
inserting in lieu thereof "; or"; and 
(3) by adding at the end thereof a new clause (4) as follows: 
"(4) any independent study program except one leading to a 
standard college degree.". 
SEC. 307. Section 1724 of title 38, United States Code, is amended 
by inserting immediately after the first sentence thereof the follow-
ing: "Unless the Administrator finds there are mitigating circum-
stances, progress will be considered unsatisfactory at any time an 
eligible person is not progressing at a rate that will permit such person 
to graduate within the approved length of the course based on the 
training time as certified to the Veterans' Administration.". 
SEC. 308. Section 1732(c) of title 38, United States Code, is amended 
by adding a new paragraph (3) at the end thereof as follows: 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2391 
"(3) The monthly educational assistance allowance to be paid on 
behalf of an eligible person pursuing an independent study program 
which leads to a standard college degree shall be computed at the rate 
prescribed in section 1682(e) of this title.". 
SEC. 309. (a) The title of chapter 35 of title 38, United States Code, 
is amended by striking out 
"CHAPTER 35—WAR ORPHANS' AND WIDOWS' 
EDUCATIONAL ASSISTANCE" 
and inserting in lieu thereof 
"CHAPTER 35—SURVIVORS' AND DEPENDENTS' 
^ 
EDUCATIONAL ASSISTANCE" 
(b) The table of chapters at the beginning of title 38, United States 
Code, and the table of chapters at the beginning of part III of such 
title are each amended by striking out 
"35. War Orphans' and Widows' Education Assistance 
1700" 
and inserting in lieu thereof 
"35. Survivors' and Dependents' Educational Assistance 
1700". 
(c) Section 1731(a) is amended by striking out "section 1780" and ^8 USC 1731. 
inserting in lieu thereof "chapter 36". 
SEC. 310. Chapter 35 of title 38, United States Code, is amended— 
(1) by striking out in section 1700 "widows", "wives", and "his" 38 U
S
C 1700. 
each time they appear and inserting in lieu thereof "surviving 
spouses", "spouses", and "the veteran's", respectively; 
(2) by striking out in section 1701(a) "widow" and "wife" 38 USC 1701. 
each time they appear and inserting in lieu thereof "surviving 
spouse" and "spouse", respectively; 
(3) by striking out in section 1701(b) "his" and inserting in 
lieu thereof "the person's" and by striking out "himself"; 
(4) by striking out in section 1701 (c) "his" each time it appears 
and inserting in lieu thereof "such person's" and by striking out 
"himself"; 
(5) by striking out in section 1701(d) "he" each time it appears 
and inserting in lieu thereof "such person"; 
(6) by striking out in section 1711(b) "she" the first time it 38 U
S
C 1711. 
appears and inserting in lieu thereof "the spouse", by striking out 
"her" each time it appears and inserting in lieu thereof "such 
person's", and by striking out "he or she" each time it appears and 
inserting in lieu thereof "such person"; 
(7) by striking out in section 1712(a) "him", "his", and "he" 38 U
S
C 1712. 
each time they appear and inserting in lieu thereof "the person", 
"the person's", and "the person", respectively; 
(8) by striking out in section 1712(c) "him", "he", "his" each 
time they appear and inserting in lieu thereof "such person", 
"such person", and "such person's", respectively; 
(9) by striking out in subsections (e) and (f) of section 1712 
(as redesignated by section 304(3) of this Act) "her" and "he" 
and inserting in lieu thereof "the" and "such person", respectively; 
(10) by striking out in section 1720(a) "his" each time it 38 U
S
C 1720. 
appears and inserting in lieu thereof "such person's"; 
(11) by striking out in section 1721 "he" and inserting in lieu 38 USC 1721. 
thereof "the Administrator"; 
90 STAT. 2392 
PUBLIC LAW 94-502—OCT. 15, 1976 
38 use 1723. 
(12) by striking out in section 1723(a) "he" and "his" and 
inserting in lieu thereof "the Administrator" and "the person's", 
respectively; 
(13) b^ striking out in section 1723(c) "his" and "he" and 
inserting in lieu thereof "the Administrator's" and "the Admin-
istrator', respectively; 
(14) by striking out in section 1723(d) "his" each time it 
appears and inserting in lieu thereof "such person's"; 
38 use 1724. 
(15) by striking out in section 1724 "he" the first time it 
appears and inserting in lieu thereof "such person", by striking 
out "his" each time it appears and inserting in lieu thereof "the 
person's", and by striking out "he" the second time it appears 
and inserting in lieu thereof "the Administrator"; 
38 use 1731. 
(16) by striking out in section 1731(b) "his" and "he" and 
inserting in lieu thereof "the person's" and "the person", 
respectively; 
38 use 1733, 
(17) by striking out in section 1733(a) "wife or widow" and 
"she" and inserting in lieu thereof "spouse or surviving spouse" 
and "such spouse", respectively; 
(18) by striking out in section 1733(b) "he" and inserting in 
lieu thereof "such person"; 
38 use 1734. 
(19) by striking out in section 1734(b) "wife or widow" and 
inserting in lieu thereof "spouse or surviving spouse"; 
38 use 1736. 
(20) by striking out in section 1736 "he" and inserting in lieu 
thereof "the Administrator"; 
38 use 1741. 
(21) by striking out in section 1741(b) "he" and inserting in 
lieu thereof "the Administrator"; 
38 use 1743. 
(22) by striking out in subsections (a) and (b) of section 1743 
"his" and "he" each time they appear and inserting in lieu thereof 
"the Administrator's" and "the Administrator", respectively; 
38 use 1761. 
(23) by striking out in section 1761(a) "he" and inserting in 
lieu thereof "the Administrator"; and 
38 use 1763. 
(24) by striking out in section 1763 "his" and inserting in lieu 
thereof "such person's". 
TITLE IV—POST-VIETNAM ERA VETERANS' 
EDUCATIONAL ASSISTANCE ACT 
Post-Vietnam Era 
§^0. 401. This title may be cited as the "Post-Vietnam Era Vet-
Veterans' 
erans' Educational Assistance Act of 1977". 
Educational 
g^^ ^Qg. Section 1652 of title 38, United States Code, is amended— 
Assistance Act ot 
(1) by amending paragraph (1) of subsection (a) to read as 
jjQjg 
"(1) The term'eligible veteran'means any veteran who— 
"Eligible 
"(-^) served on active duty for a period of more than 180 days, 
veteran." 
any part of which occurred after January 31, 1955, and before 
January 1,1977, and was discharged or released therefrom under 
conditions other than dishonorable; or 
" ( B ) contracted with the Armed Forces and was enlisted in or 
assigned to a reserve component prior to January 1, 1977, and as 
a result of such enlistment or assignment served on active duty 
for a period of more than 180 days, any part of which commenced 
within 12 months after January 1, 1977, and was discharged or 
released from such active duty under conditions other than dis-
honorable ; or 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2393 
"(C) was discharged or released from active duty, any part of 
which was performed after January 31, 1955, and before Jan-
uary 1, 1977, or following entrance into active service from an 
enlistment provided for under clause (B) of this paragraph, 
because of a service-connected disability."; and 
(2) by inserting in subsection (a)(2) "or (B)" after "para-
graph(l)(A)". 
SEC. 403. (a) Section 1661(a) of title 38, United States Code, is 
amended by adding at the end thereof a new sentence as follows: "In 
the case of any person serving on active duty on December 31, 1976, 
or a person whose eligibility is based on section 1652(a)(1)(B) of 38 USC 1652. 
this chapter, the ending date for computing such person's entitlement 
shall be the date of such person's first discharge or release from active 
duty after December 31,1976.". 
(b) Section 1662 of title 38, United States Code, is amended by 
inserting at the end thereof the following new subsection: 
"(e) No educational assistance shall be afforded any eligible vet-
eran under this chapter or chapter 36 of this title after December 31, 38 USC 1770 et 
1989.". 
^
e
y
-
SEC. 404. Part III of title 38, United States Code, is amended by 
inserting immediately after chapter 31 of such title a new chapter as 
follows: 
"CHAPTER 32—POST-VIETNAM ERA VETERANS' 
EDUCATIONAL ASSISTANCE 
"SUBCHAPTEB I—PURPOSE; DEFINITIONS 
"Sec. 
"1601. Purpose. 
"1602. Definitions. 
"SUBCHAPTER II—ELIGIBILITY ; CONTRIBUTIONS ; AND MATCHING FUND 
"1621. Eligibility. 
"1622. Contributions; matching fund. 
"1623. Refunds of contributions upon disenrollment. 
"1624. Death of participant. 
"1625. Discharge or release under conditions which would bar use of benefits. 
"SUBCHAPTER III—ENTITLEMENT; DURATION 
"1631. Entitlement; loan eligibility. 
"1632. Duration; limitations. 
"SUBCHAPTER IV—ADMINISTRATION 
"1641. Requirements. 
"1642. Reporting requirements. 
"1643. Deposits; reports. 
"Subchapter I—Purpose; Definitions 
"§ 1601. Purpose 
38 USC 1601. 
"It is the purpose of this chapter (1) to provide educational assist-
ance to those men and women who enter the Armed Forces after 
December 31, 1976, (2) to assist young men and women in obtaining 
an education they might not otherwise be able to afford, and (3) to 
promote and assist the all volunteer military program of the United 
States by attracting qualified men and women to serve in the Armed 
Forces. 
90 STAT. 2394 
PUBLIC LAW 94-502—OCT. 15, 1976 
38 use 1602. 
«§ 1602. Definitions 
"For the purposes of this chapter— 
"(1)(A) The term 'eligible veteran' means any veteran who (i) 
initially entered military service on or after January 1, 1977, served 
on active duty for a period of more than 180 days commencing on or 
after such date, and was discharged or released therefrom under con-
ditions other than dishonorable, or (ii) initially entered military 
service on or after January 1, 1977, and was discharged or released 
from active duty after such date for a service-connected disability. 
"(B) The requirement of discharge or release, prescribed in sub-
paragraph (A), shall be waived in the case of any participant who 
has completed his or her first obligated period of active duty (which 
began after December 31,1976) or 6 years of active duty (which began 
after December 31,1976), whichever period is less. 
"(C) For the purposes of subparagraphs (A) and (B), the term 
'active duty' does not include any period during which an individual 
(i) was assigned full time by the Armed Forces to a civilian institu-
tion for a course of education which was substantially the same as 
established courses offered to civilians, (ii) served as a cadet or mid-
shipman at one of the service academies, or (iii) served under the pro-
visions of section 511(d) of title 10 pursuant to an enlistment in the 
Army National Guard or the Air National Guard, or as a Reserve for 
service in the Army Reserve, Naval Reserve, Air Force Reserve, 
Marine Corps Reserve, or Coast Guard Reserve. 
"(2) The terms 'program of education' and 'educational institution' 
shall have the same meaning ascribed to them in sections 1652(b) and 
38 use 1652. 
1652 (c), respectively, of this title. 
"(3) The term 'participant' is a person who is participating in the 
educational benefits program established under this chapter. 
^'Subchapter II—Eligibility; Contributions; and Matching Fund 
38 use 1621. 
«§ 1621. Eligibility 
"(a) Each person entering military service on or after January 1, 
1977, shall have the right to enroll in the educational benefits program 
provided by this chapter (hereinafter in this chapter referred to as 
the 'program' except where the text indicates otherwise) at any time 
during such person's service on active duty. When a person elects 
to enroll in the program, such person must participate for at least 12 
consecutive months before disenrolling or suspending participation. 
"(b) The requirement for 12 consecutive months of participation 
required by subsection (a) of this section shall not apply when (1) 
the participant suspends participation or disenroUs from the program 
because of personal hardship as defined in regulations issued jointly 
bv the Administrator and the Secretary of Defense (hereinafter in 
this chapter referred to as the 'Secretary'), or (2) the participant is 
discharged or released from active duty. 
"(c) A participant shall be permitted to suspend participation or 
disenroll from the program at the end of any 12-consecutive-
month period of participation. If participation is suspended, the 
participant shall be eligible to make additional contributions to the 
program under such terms and conditions as shall be prescribed by 
regulations issued jointly by the Administrator and the Secretary. 
"(d) If a participant disenroUs from the program, such participant 
forfeits any entitlement to benefits under the program except as pro-
vided in subsection (e) of this section. A participant who disenroUs 
from the program is eligible for a refund of such participant's contri-
butions as provided in section 1623 of this title. 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2395 
"(e) A participant who has disenrolled may be permitted to reen-
roU in the program under such conditions as shall be prescribed jointly 
by the Administrator and the Secretary. 
**§1622. Contributions; matching fund 
38 USC 1622. 
"(a) Each person electing to participate in the program shall agree 
to have a monthly deduction made from such person's military pay. 
Such monthly deduction shall be in any amount not less than $50 nor 
more than $75 except that the amount must be divisible by 5. Any such 
amount contributed by the participant or contributed by the Secretary 
pursuant to subsection (c) of this section shall be deposited in a 
deposit fund account entitled the 'Post—Vietnam Era Veterans Edu-
cation Account' (hereinafter in this chapter referred to as the 'fund') 
to be established in the Treasury of the United States. Contributions 
made by the participant shall be limited to a maximum of $2,700. 
"(b) Except as otherwise provided in this chapter, each monthly 
contribution made by a participant under subsection (a) shall entitle 
the participant to matching funds from the Veterans' Administration 
at the rate of $2 for each $1 contributed by the participant. 
"(c) The Secretary is authorized to contribute to the fund of any 
participant such contributions as the Secretary deems necessary or 
appropriate to encourage persons to enter or remain in the Armed 
Forces. The Secretary is authorized to issue such rules and regula- Rules and 
tions as the Secretary deems necessary or appropriate to implement regulations, 
the provisions of this subsection. 
"§ 1623. Refunds of contributions upon disenrollment 
38 U
S
C 1623. 
"(a) Contributions made to the program by a participant may be 
refunded only after the participant has disenrolled from the program 
or as provided in section 1624. 
"(b) If a participant disenrolls from the program prior to dis-
charge or release from active duty, such participant's contributions 
will be refunded on the date of the participant's discharge or release 
from active duty or within 60 days of receipt of notice by the Admin-
istrator of the participant's discharge or disenrollment, except that 
refunds may be made earlier in instances of hardship or other good 
reason as prescribed in regulations issued jointly by the Administrator 
and the Secretary. 
"(c) If a participant disenrolls from the program after discharge 
or release from active duty, the participant's contributions shall be 
refunded within 60 days of receipt of an application for a refund 
from the participant. 
"(d) In the event the participant (1) dies while on active duty, 
(2) dies after discharge or release from active duty, or (3) disenrolls 
or is disenrolled from the program without having utilized any entitle-
ment, the participant may have accrued under the program, or, in the 
event the participant utilizes part of such participant's entitlement 
and disenrolls or is disenrolled from the program, the amount con-
tributed by the Secretary under the authority of section 1622(c) 
remaining in the fund shall be refunded to the Secretary. 
"§ 1624. Death of participant 
38 USC 1624. 
"(a) If a participant dies, the amount of such participant's unused 
contributions to the fund shall be paid (1) to the beneficiary or bene-
ficiaries designated by such participant under such participant's 
Servicemen's Group Life Insurance policy, or (2) to the participant's 
estate if no beneficiary has been designated under such policy or if the 
participant is not insured under the Servicemen's Group Life Insur-
ance program. 
90 STAT. 2396 
PUBLIC LAW 94-502—OCT. 15, 1976 
"(b) If a participant dies after having been discharged or released 
from active duty and before using any or all of the contributions 
which the participant made to the fund, such unused contributions 
shall be paid as prescribed in subsection (a) of this section. 
38 use 1625. 
"§ 1625. Discharge or release under conditions which would bar 
the use of benefits 
"If a participant in the program is discharged or released from 
active duty under dishonorable conditions, such participant is auto-
matically disenrolled and any contributions made oy such participant 
shall be refunded to such participant on the date of such participant's 
discharge or release from active duty or within 60 days from receipt 
of notice by the Administrator of such discharge or release, whichever 
is later. 
"Subchapter III—Entitlement; Duration 
38 use 1631. 
«§163L Entitlement; loan eligibility 
"(a)(1) A participant shall be entitled to a maximum of 36 
monthly benefit payments (or their equivalent in the event of part-
time benefit payments). 
"(2) The amount of the monthly payment to which any eligible 
veteran is entitled shall be ascertained by (A) adding all contributions 
made to the fund by the eligible veteran, (B) multiplying the sum by 
3, (C) adding all contributions made to the fund for such veteran 
by the Secretary, and (D) dividing the sum by the lesser of 36 or the 
number of months in which contributions were made by such veteran. 
"(3) Payment of benefits under this chapter may be made only for 
periods of time during which an eligible veteran is actually enrolled 
in and pursuing an approved program of education and, except as 
provided in paragraph (4), only after an eligible veteran has been 
discharged or released from active duty. 
"(4) Payment of benefits under this chapter may be made after a 
participant has completed his or her first obligated period of active 
duty (which began after December 31,1976), or 6 years of active duty 
(which began after December 31, 1976), whichever period is less. 
"(b) Any enlisted member of the Armed Forces participating in 
the program shall be eligible to participate in the Predischarge 
Education Program (PREP), authorized by subchapter VI of chapter 
38 use 1681. 
34 of this title, during the last 6 months of such member's first 
enlistment. 
"(c) When an eligible veteran is pursuing either a program of 
education under this chapter by correspondence or a program of flight 
training, such eligible veteran's entitlement shall be charged at the 
rate of 1 month's entitlement for each month of benefits paid to the 
eligible veteran (computed on the basis of the formula provided in 
subsection (a) (2) of this section). 
"(d) Eligible veterans participating in the program shall be eligible 
for education loans authorized by subchapter III of chapter 36 of this 
38 use 1798. 
title in such amounts and on the same terms and conditions as provided 
in such subchapter, except that the term 'eligible veteran' as used in 
such subchapter shall be deemed to include 'eligible veteran' as defined 
in this chapter. 
38 use 1632. 
«§ 1632. Duration; limitations 
"No educational assistance benefits shall be afforded an eligible 
veteran under this chapter beyond the date of 10 years after such 
veteran's last discharge or release from active duty. In the event an 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2397 
eligible veteran has not utilized any or all of such veteran's entitlement 
by the end of the 10-year period, such eligible veteran is automatically 
disenrolled and any contributions made by such veteran remaining in 
the fund shall be refunded to the veteran following notice to the 
veteran and an application by the veteran for such refund. If no 
application is received within 1 year from date of notice, it will be 
presumed for the purposes of subsection (a) of section 725s of title 31, 
that the individual's whereabouts is unknown and the funds shall be 
transferred as directed in the last proviso of that subsection. 
"Subchapter IV—Administration 
"§ 1641. Requirements 
"The provisions of sections 1670, 1671, 1673, 1674, 1676, 1677, 
1681 (c), 1683,1696, and 1698 of this title and the provisions of chapter 
36 of this title, with the exception of sections 1777,1780(c), and 1787, 
shall be applicable to the program. 
"§ 1642. Reporting requirements 
"The Administrator and the Secretary shall, within 90 days after 
the date of enactment of this chapter, submit to the Committees on 
Veterans' Affairs of the Senate and House of Representatives a joint 
report containing their respective plans for implementation of the 
program provided for in this chapter. The Administrator and the 
Secretary shall submit to such committees a report each year detailing 
the operations of the program during the preceding year. The first 
such annual report shall be submitted 15 months after the date of 
enactment of this section. 
"§1643. Deposits; reports 
"Deductions made by the Department of Defense from the military 
pay of any participant shall be promptly transferred to the Adminis-
trator for deposit in the fund. The Secretary shall also submit to the 
Administrator a report each month showing the name, service number, 
and the amount of the deduction made from the military pay of each 
initial enrollee, any contribution made by the Secretary pursuant to 
section 1622(c), as well as any changes in each participant's enrollment 
and/or contribution. The report shall also include any additional 
information the Administrator and the Secretary deem necessary to 
administer this program. The Administrator shall maintain accounts 
showing contributions made to the fund by individual participants 
and by the Secretary as well as disbursements made from the fund in 
the form of benefits.". 
SEC. 405. The table of chapters at the beginning of title 38, United 
States Code, and the table of chapters at the beginning of part III 
of such title are each amended by inserting immediately below 
"31. VOCATIONAL REHABILITATION 
1501" 
the following: 
"32. POST-VIETNAM ERA VETERANS' EDUCATIONAL ASSISTANCE 
1601". 
SEC. 406. The provisions of this title shall become effective on 
January 1,1977. 
SEC. 407. Section 725s (b) of title 31, United States Code, is amended 
by adding at the end thereof the following: 
"(84) Post-Vietnam Era Veterans Education Account, Veter-
ans' Administration." 
SEC. 408. (a) (1) No individual on active duty in the Armed Forces 
may initially enroll in the educational assistance program provided 
38 u s e 1641. 
38 u s e 1770 et 
seq. 
38 use 1642. 
Report to 
congressional 
committees. 
38 use 1643. 
Report to 
Administrator. 
Effective date. 
38 use 1601 
note. 
38 use 1621 
note. 
90 STAT. 2398 
PUBLIC LAW 94-502—OCT. 15, 1976 
for in chapter 32 of title 38, United States Code (as added by section 
404 of this Act) after December 31,1981, unless— 
Recommendation 
(A) before June 1, 1981, the President submits to both Houses 
to Congress. 
Qf Congress a written recommendation that such program con-
tinue to be open for new enrollments; and 
(B) before the close of the 60-day period after the day on which 
the President submits to Congress the recommendation described 
in subparagraph (A), neither the House of Representatives nor 
the Senate adopts, by an affirmative vote of a majority of those 
present and voting in that House, a resolution which in substance 
disapproves such recommendation. 
(2) For purposes of computing the 60-day period referred to 
in paragraph (1) (B), there shall be excluded— 
(A) the days on which either House is not in session because 
of an adjournment of more than 3 days to a day certain or an 
adjournment of the Congress sine die, and 
(B) any Saturday and Sunday, not excluded under the pre-
ceding subparagraph, when either House is not in session. 
The recommendation referred to in paragraph (1) (A) shall be deliv-
ered to both Houses of Congress on the same day and shall be delivered 
to the Clerk of the House of Representative's if the House is not in 
session and to the Secretary of the Senate if the Senate is not in session, 
(b) If new enrollments after December 31, 1981, in the educational 
assistance program provided for in such chapter 32 are authorized 
after the application of the provisions of subsection (a), then effec-
tive January 1, 1982, section 1622(b) of title 38, United States Code, 
is amended by striking out "Veterans' Administration" and inserting 
in lieu thereof "Department of Defense." 
TITLE V—CHAPTER 36 EDUCATION LOAN AND 
PROGRAM ADMINISTRATION AMENDMENTS 
SEC. 501. Chapter 36 of title 38, United States Code, is amended— 
38 use 1786. 
(1) by striking out in section 1786(a) (2) "$270" and inserting 
in lieu thereof "$292"; and 
(2) by amending the table contained in paragraph (1) of section 
1787 (b) to read as follows: 
"Column I 
Periods of training 
First 6 months 
Second 6 months 
Third 6 months 
Fourth and any suc-
ceeding 6-month 
periods 
Column 
II 
No de-
pendents 
$212 
159 
106 
53 
Column 
III 
One de-
pendent 
$238 
185 
132 
79 
Column 
IV 
Two de-
pendents 
$260 
207 
154 
101 
Column V 
More than two 
dependents 
The amount in 
column IV, 
plus the fol-
lowing for 
each de-
pendent in 
excess of 
two: 
$11 
11 
11 
11". 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2399 
SEC. 502. (a) Section 1798 of title 38, United States Code, is 
amended— 
(1) by striking out in subsection (b) (3) "$270" and "$600" 
and inserting in lieu thereof "$292" and "$1,500", respectively; 
and 
(2) by amending clause (3) of subsection (d) to read as 
follows: 
"(3) shall provide that the loan shall bear interest, on the 
unpaid balance of the loan, at a rate prescribed by the Admin-
istrator, at the time the loan is contracted for which rate shall be 
comparable to the rate of interest charged students at such time 
on loans insured by the Commissioner of Education, Department 
of Health, Education, and Welfare, under part B of title IV of 
the Higher Education Act of 1965, but in no event shall the rate 20 USC 1071. 
so prescribed by the Administrator exceed the rate charged stu-
dents on such insured loans, and shall provide that no interest 
shall accrue prior to the beginning date of repayment; and". 
(b) The amendments made by subsection (a) shall be effective with 38 USC 1798 
respect to loans made under section 1798 of title 38, United States "o*«-
Code, on and after October 1, 1976. 
SEC. 503. Section 1774 of title 38, United States Code, is amended— 
(1) by adding at the end of subsection (a) thereof the follow-
ing new sentence: "The Administrator may also reimbui-se such 
agencies for work performed by their subcontractors where such 
work has a direct relationship to the requirements of chapter 32, 
34, 35, or 36 of this title, and has had the prior approval of the Ante, p. 2393. 
Administrator."; and 
38 U
S
C 1651, 
(2) by amending subsection (b) to read as follows: 
1700, 1770. 
"(b) The allowance for administrative expenses incurred pursuant 
to subsection (a) of this section shall be paid in accordance with the 
following formula: 
"Total salary cost reimbursable Allowable for administrative expense 
under this section 
$5,000 or less 
$600. 
Over $5,000 but not exceeding 
$10,000 
$1,080. 
Over $10,000 but not exceeding 
$35,000 
$1,080 for tlie first $10,000 plus $1,000 for 
each additional $5,000 or fraction thereof. 
Over $35,000 but not exceeding 
$40,000 
$6,535. 
Over $40,000 but not exceeding 
$75,000 
$6,535 for the first $40,000 plus $865 for each 
additional $5,000 or fraction thereof. 
Over $75,000 but not exceeding 
$80,000 
$12,960. 
Over $80,000 
$12,960 for the first $80,000 plus $755 for 
each additional $5,000 or fraction thereof.". 
SEC. 504. Section 1775 of title 38, United States Code, is amended— 
(1) by striking out the period at the end of subsection (a) and 
inserting in lieu thereof "which must be certified as true and cor-
rect in content and policy by an authorized lepresentative of the 
school. The catalog or bulletin must specifically state its progress 
requirements for graduation and must include as a minimum the 
information required by sections 1776(b) (6) and (7) of this 
title."; and 
(2) by inserting before the period in the first sentence of sub-
section (b) the TOllowing: "and must include as a minimum 
(except for attendance) the requirements set forth in section 
1776(c)(7) of this title". 
90 STAT. 2400 
PUBLIC LAW 94-502—OCT. 15, 1976 
SEC. 505. Section 1780(a) of title 38, United States Code, is 
amended— 
(1) by striking out at the end of clause (1) "or"; 
(2) by striking out the period at the end of clause (2) and 
inserting in lieu thereof a semicolon; and 
(3) by inserting immediately after clause (2) the following new 
clauses: 
"(3) to any eligible veteran or person for auditing a course; 
" (4) to any eligible veteran or person for a course for which the 
grade assigned is not used in computing the requirements for grad-
uation including a coui-se from which the student withdraws 
unless the Administrator finds there are mitigating circumstances; 
or 
"(5) to any eligible veteran or person for pursuit of a program 
of education exclusively by correspondence as authorized under 
38 use 1786. 
section 1786 of this title or for the pursuit of a correspondence 
portion of a combination correspondence-residence course lead-
ing to a vocational objective where the normal period of time 
required to complete such correspondence course or portion is less 
the 6 months. A certification as to the normal period of time 
required to complete the course must be made to the Administra-
tor by the educational institution.". 
SEC. 506. The last sentence of section 1780(a) of title 38, United 
States Code, is amended to read as follows: "Notwithstanding the fore-
going, the Administrator may, subject to such regulations as the 
Administrator shall prescribe, continue to pay allowances to eligible 
veterans and eligible persons enrolled in courses set forth in clause (1) 
or (2) of this subsection— 
"(A) during periods when the schools are temporarily closed 
under an established policy based upon an Executive order of 
the President or due to an emergency situation, and such periods 
shall not be counted as absences for the purposes of clause (2); 
"(B) during periods between consecutive school terms where 
such veterans or persons transfer from one approved educational 
institution to another approved educational institution for the 
purpose of enrolling in and pursuing a similar course at the sec-
ond institution if the period between such consecutive terms does 
not exceed 30 days, but such periods shall be counted as absences 
for the purposes of clause (2); or 
"(C) during periods between a semester, term, or quarter where 
the educational institution certifies the enrollment of the eligible 
veteran or eligible person on an individual semester, term, or 
quarter basis if the interval between such periods does not exceed 
1 full calendar month, but such periods shall be counted as 
absences for the purposes of clause (2).". 
SEC. 507. Section 1784(a) of title 38, United States Code, is amended 
by adding at the end thereof the following: "The date of interruption 
or termination will be the last date of pursuit or, in the case of corre-
spondence training, the last date a lesson was serviced by the school.". 
SEC. 508. Section 1784(b) of title 38, United States Code, is amended 
by striking out "$3" and "$4" and inserting in lieu thereof "$5" and 
"$6", respectively. 
SEC. 509. (a) Section 1788(a) of title 38, United States Code, is 
amended— 
(1) by striking out the semicolon at the end of clause 1 and 
inserting in lieu thereof a comma and the following: "but if such 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2401 
course is approved pursuant to section 1775 of this title, then 27 38 USC 1775. 
hours per week of attendance, with no more than 21/^ hours of 
rest period per week allowed and excluding supervised study, 
shall be considered full time;"; and 
(2) by striking out the semicolon at the end of clause 2 and 
inserting in lieu thereof a comma and the following: "but if such 
course is approved pursuant to section 1775 of this title, then 22 
hours per week net of instruction (excluding supervised study), 
which may include customary intervals not to exceed ten minutes 
between hours of instruction, shall be considered full time;" 
(b) Section 1789 of title 38, United States Code, is amended— 
(1) by striking out "or" at the end of clause (4) in subsection 
(b); 
(2) by striking out the period at the end of clause (5) m sub-
section (b) and inserting in lieu thereof "; or"; 
(3) by adding at the end of subsection (b) a new clause (6) to 
read as follows: 
"(6) any course offered by an educational institution under a 
contract with the Department of Defense that (A) is given on, or 
immediately adjacent to, a military base; (B) is available only 
to active duty military personnel and/or their dependents and 
(C) has been approved by the State approving agency of the 
State in which the base is located."; and 
(4) by adding at the end thereof a new subsection (c) as 
follows: 
"(c) Notwithstanding the provisions of subsection (b) (1), (2), 
(3), or (4) of this section, the provisions of subsection (a) shall apply 
to any course offered by a branch or extension of— 
"(1) a public or other tax-supported institution where the 
branch or extension is located outside of the area of the taxing 
jurisdiction providing support to such institution; or 
"(2) a proprietary profit or proprietary nonprofit educational 
institution where the branch or extension is located beyond the 
normal commuting distance of such institution.". 
SEC. 510. Section 1790(c) of title 38, United States Code, is amended 
to read as follows: 
"(c) Notwithstanding any other provision of law, the records and 
accounts of educational institutions pertaining to eligible veterans or 
eligible persons who received educational assistance under this chapter 
or chapter 31, 32, 34, or 35 of this title, as well as the records of other 38 U
S
C 1501. 
students which the Administrator determines necessary to ascertain Ante, p. 2393. 
institutional compliance with the requirements of such chapters, shall 38 U
S
C 1651, 
be available for examination by duly authorized representatives of the l^^O. 
Government.". 
SEC. 511. Subchapter II of chapter 36, United States Code, is 
amended— 
(1) by striking out section 1793 and inserting in lieu thereof 
the following: 
"§ 1793. Compliance surveys 
38 USC 1793. 
"The Administrator shall conduct an annual compliance survey of 
each institution offering one or more courses approved for the enroll-
ment of eligible veterans or persons where at least 300 veterans or 
persons are enrolled under provisions of this title or where the course 
does not lead to a standard college degree. Such compliance survey 
90 STAT. 2402 
PUBLIC LAW 94-502—OCT. 15, 1976 
Advertising, 
sales, and 
enrollment; 
record 
maintenance. 
38 use 1771. 
38 use 1775. 
38 use 1777. 
38 use 1779. 
38 use 1780. 
shall assure that the institution and approved courses are in com-
pliance with all applicable provisions of chapters 31, 34, 35, and 36 of 
this title. The Administrator shall assign at least one education com-
pliance specialist to work on compliance surveys in any year for each 
40 compliance surveys required to be made under this section."; and 
(2) by striking out in the table of sections at the beginning 
of chapter 36 of such title 
"1793. Institutions listed by Attorney General." 
and inserting in lieu thereof 
"1793. Compliance surveys.". 
SEC. 512. Section 1796 of title 38, United States Code, is amended— 
(1) by redesignating subsections (b) and (c) as (c) and (d), 
respectively; and 
(2) by inserting after subsection (a) a new subsection (b) as 
follows: 
"(b) To ensure compliance with this section, any institution offer-
ing courses approved for the enrollment of eligible persons or veterans 
shall maintain a complete record of all advertising, sales, or enroll-
ment materials (and copies thereof) utilized by or on behalf of the 
institution during the preceding 12-month period. Such record shall 
be available for inspection by the State approving agency or the 
Administrator. Such materials shall include but are not limited to 
any direct mail pieces, brochures, printed literature used bv sales 
persons, films, video tapes, and audio tapes disseminated through 
broadcast media, material disseminated through print media, tear 
sheets, leaflets, handbills, fliers, and any sales or recruitment manuals 
used to instruct sales personnel, agents, or representatives of such 
institution.". 
SEC. 513. (a) Chapter 36 of title 38, United States Code, is 
amended— 
(1) by striking out in section 1771(a) "his" and inserting in 
lieu thereof "such"; 
(2) by striking out in section 1775(a) "he" and inserting in 
lieu thereof "the Commissioner"; 
(3) by striking out in subsections (b) and (c) of section 1777 
"he", "him", "his" each time they appear and inserting in lieu 
thereof "the veteran or person", "the veteran or person", and 
"such veteran's or person^", respectively; 
(4) by striking out in section 1779(b) "his" and inserting in 
lieu thereof "the Administrator's"; 
(5) by striking out in subsections (a) and (b) of section 1780 
"his", "wife or widow", and "wife's or widow's" each time they 
appear and inserting in lieu thereof "such veteran's or person's", 
"spouse or surviving spouse", and "spouse's or surviving spouse's", 
respectively; 
(6) by striking out in subsections (c) and (d) of section 1780 
"his" and "he" each time they appear and inserting in lieu thereof 
"such veteran's or person's" and "the veteran or person", 
respectivelj; 
(7) by inserting "may" immediately before "need" in section 
1780(d)(1); 
(8) by inserting immediately after the fourth sentence in sec-
tion 1780(d) (2) the following new sentence: "An advance pay-
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2403 
meiit may not be made under this subsection to any veteran or 
person unless the veteran or person requests such payment and 
the Administrator finds that the educational institution at which 
such veteran or person is accepted or enrolled has agreed to, and 
can satisfactorily, carry out the provisions of paragraphs 6(B) 
and (C) and (6) of this subsection." 
(9) by striking out section 1780(e) and the heading thereto; 
38 U
S
C 1780. 
(10) by redesignating subsections (f), (g), and (h) of section 
1780 as subsections (e), (f), and (g), respectively, and by adding 
at the end of such subsection (g) (as so redesignated) the follow-
ing : "Subject to such reports and proof as the Administrator may 
require to show an eligible veteran's or eligible person's enroll-
ment in and satisfactory pursuit of such person's program, the 
Administrator is authorized to withhold the final payment of 
benefits to such person until the required proof is received and the 
amount of the final payment is appropriately adjusted."; 
(11) by striking out in section 1780(f) "him" and inserting in 
. 
lieu thereof "such veteran or person"; 
(12) by striking out in section 1780(h) "he" the first time it 
appears and inserting in lieu thereof "the Administrator" and by 
striking out "he" the second time it appears and inserting in lieu 
thereof "the veteran or person"; 
(13) by striking out m section 1781 "him" and inserting in lieu 38 U
S
C 1781. 
thereof "such person"; 
(14) by striking out in section 1783(a) "his" and inserting in 38 U
S
C 1783. 
lieu thereof "such officer's or employee's"; 
(15) by striking out in section 1783(b) "he" the first time it 
appears and inserting in lieu thereof "such person" and by strik-
ing out "he" the second time it appears and inserting in lieu 
thereof "the Administrator"; 
(16) by striking out in section 1783(d) "he" and inserting in 
lieu thereof "the Administrator"; 
(17) by striking out in subsections (a) and (b) of section 1784 38 U
S
C 1784. 
"him" and inserting in lieu thereof "the Administrator"; 
(18) by striking out in subsections (a), (b), and (c) of section 
1786 "wife and widow" and "his" each time they appear and 
inserting in lieu thereof "spouse or surviving spouse" and "such 
veteran's or spouse's", respectively; 
(19) by striking out in subsections (a), (b), and (d) of section 
1790 "he" each time it appears and inserting in lieu thereof "the 
Administrator"; 
(20) by striking out in subsections (a), (b), and (c) of section 
1791 "his" and "he" each time they appear and inserting in lieu 
thereof "the veteran's or person's" and "the Administrator", 
respectively; 
(21) by striking out in section 1794 "his" and inserting in lieu 38 USC 1794. 
thereof "the Administrator's"; 
(22) by striking out in section 1796(c) (as redesignated by 38 USC 1796. 
section 513(1) of this Act) "his" and inserting in lieu thereof 
"the Administrator's"; 
(23) by striking out in section 1798(b) (1) "he" and inserting 38 U
S
C 1798. 
in lieu thereof "the veteran or person" and by striking out in sec-
tion 1798(e) (1) "he" and inserting in lieu thereof Hhe Admin-
istrator" ; and 
90 STAT. 2404 
PUBLIC LAW 94-502—OCT. 15, 1976 
38 use 1799. 
Effective date. 
38 use 1780 
note. 
38 use 2002A. 
38 use 2010, 
2021. 
Repeal. 
38 use 2002 
note. 
29 use 801 note. 
(24) by striking out in section 1799(d) "his" and inserting in 
lieu thereof "the Administrator's". 
(b) The amendments made by paragraphs (7), (8), (9), and (10) 
of subsection (a) shall take effect June 1, 1977, and shall apply with 
respect to educational assistance allowances and subsistence allowances 
paid under title 38, United States Code, for months after May 1977. 
T I T L E V I — V E T E R A N S ' E M P L O Y M E N T A S S I S T A N C E 
P R O V I S I O N S 
SEC. 601. (a) Section 2002 of title 38, United States Code, is 
amended by inserting "by a Deputy Assistant Secretary of Labor for 
Veterans' Employment, established by section 2002A of this title," 
after "promulgated and administered". 
(b) Chapter 41 of title 38, United States Code, is amended by— 
(1) adding after section 2002 a new section as follows: 
"§ 2002A. Deputy Assistant Secretary of Labor for Veterans' 
Employment 
"There is established within the Department of Labor a Deputy 
Assistant Secretary of Labor for Veterans' Employment, appointed 
by the President by and with the advice and consent of the Senate, 
who shall be the principal advisor to the Secretary of Labor with 
respect to the formulation and implementation of all departmental 
policies and procedures to carry out (1) the purposes of this chapter, 
chapter 42, and chapter 43 of this title, and (2) all other Department 
of Labor employment, unemployment, and training programs to the 
extent they affect veterans,"; and 
(2) amending the table of sections at the beginning of chapter 
41 of such title I)y inserting 
"2002A. Deputy Assistant Secretary of Labor for Veterans' Employment. 
after 
"2002. Purposes.". 
(c) Section 104(a) of the Emergency Jobs and Unemployment 
Assistance Act of 1974 (Public Law 93-567) is repealed. 
SEC. 602. Section 2003 of title 38, United States Code, is amended— 
(1) by inserting in the fourth sentence "or by prime sponsors 
under the Comprehensive Employment and Training Act" after 
"programs admmistered by the Secretary"; 
(2) by striking out "and" at the end of clause ( 5 ) ; and 
(3) by redesignating clause (6) as clause (7) and inserting new 
clause (6) as follows: 
"(6) promote the participation of veterans in Comprehensive 
Employment and Training Act programs and monitor the imple-
mentation and operation of Comprehensive Employment and 
Training Act programs to assure that eligible veterans receive 
special consideration when required; and". 
SEC. 603. Section 2006(a) of title 38, United States Code, is amended 
by inserting in the last sentence "each" after "shall". 
SEC. 604. Section 2007 of title 38, United States Code, is amended— 
(1); by striking out in subsection (a)(1) "his" and inserting 
in lieu thereof "such veteran's and eligible person's" ; 
(2^ by inserting in the second sentence of subsection (c) "and 
public service employment" after "occupational training"; and 
PUBLIC LAW 94-502—OCT. 15, 1976 
90 STAT. 2405 
(3) by striking out in the last sentence of subsection (c) "or 
2006" and inserting in lieu thereof ", 2006, or 2007(a)". 
SEC. 605. Section 2012 of title 38, United States Code, is amended by 
adding at the end thereof a new subsection (c) as follows: 
"(c) The Secretary shall include as part of the annual report 
required by section 2007(c) of this title the number of complaints filed 
pursuant to subsection (b) of this section, the actions taken thereon 
and the resolutions thereof. Such report shall also include the number 
of contractors listing suitable employment openings, the nature, 
types, and number of positions listed and the number of veterans 
receiving priority pursuant to subsection (a) (2) of this section.". 
SEC. 606. Chapter 41 of title 38, United States Code, is amended—r 
(1) by striking out in section 2003 "he" and "his" and inserting 38 USC 2003. 
in lieu thereof "the Secretary" and "such representative's", 
respectively; 
(2) by striking out in section 2004 "his" and inserting in lieu 38 U
S
C 2004. 
thereof "such representative's" and by inserting "or eligible per-
sons" after "eligible veterans"; 
(3) by striking out in section 2005 "he" and inserting in lieu 38 USC 2005. 
thereof "the Secretary"; and 
(4) by striking out in section 2008 "his" and "him" and 38 U
S
C 2008. 
inserting in lieu thereof "the Secretary's" and "the Administra-
tor", respectively. 
SEC. 607. Chapter 42 of title 38, United States Code, is amended— 
(1) by striking out in section 2011(2) "his" and inserting 38 USC 2011. 
in lieu thereof "the person's"; and 
(2) by striking out in the first sentence of section 2012(b) "his" 38 USC 2012. 
and inserting in lieu thereof "the contractor's". 
SEC. 608. Chapter 43 of title 38, United States Code, is amended— 
(1) by striking out in section 2021(a) (2) (B) "his" each time 38 U
S
C 2021. 
it appears and inserting in lieu thereof "the employer's"; 
(2) by striking out in section 2021(b) (2) "his'^ and "he" and 
inserting in lieu thereof "the person's" and "the person", respec-
tively ; and 
(3) by striking out in the sixth sentence of section 2024(d) 38 USC 2024. 
"his" each time it appears and inserting in lieu thereof "such 
employer's". 
TITLE VII—MISCELLANEOUS AND EFFECTIVE DATE 
SEC. 701. Section 3101 (a) of title 38, United States Code, is amended 
by adding at the end thereof the following: "For the purposes of this 
subsection, in any case where a payee of an educational assistance 
allowance has designated the address of an attorney-in-fact as the 
payee's address for the purpose of receiving his or her benefit check 
and has also executed a power of attorney giving the attorney-in-
fact authority to negotiate such benefit check, such action shall be 
deemed to be an assignment and is prohibited.". 
SEC. 702. Section 2108(1) (B) of title 5, United States Code, is 
amended by striking out "after January 31, 1955," and inserting in 
lieu thereof "any part of which occurred after January 31, 1955, and 
before the date of the enactment of the Veterans' Education and 
Employment Assistance Act of 1976,". 
90 STAT. 2406 
PUBLIC LAW 94-502—OCT. 15, 1976 
Effective date. 
SEC. 703. (a) Sections 101, 201, 203, 207, 209, 301, 303, 304, 308, 501, 
38 use 1504 
502, 503, and 508 of this Act shall become effective on October 1,1976. 
note. 
(b) Sections 102, 104, 202, 204, 205(1), 205(2), 205(3), 208, 210, 
211, 302, 305, 306, 309, 310, 506, 510, 511, and 513 (other than para-
graphs (7), (8), (9), and (10) of subsection (a)) of this Act shall 
become effective on the date of the enactment of this Act. 
(c) Sections 103, 205(4), 206, 307, 504, 505, 507, 509, 512, and 701 
and title VI of this Act shall become effective on December 1, 1S76. 
Approved October 15, 1976. 
LEGISLATIVE HISTORY: 
SENATE REPORT No. 94-1243 (Coram, on Veterans' Affairs). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
Oct. 1, considered and passed Senate; 
considered and passed House, amended; 
Senate concurred in House amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol 12, No. 43: 
Oct. 15, Presidential statement.