I
119THCONGRESS
1
STSESSION H. R. 967
To amend title 38, United States Code, to allow individuals who are entitled
to Post-9/11 educational assistance to use such assistance to repay Fed-
eral student loans.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY4, 2025
Mr. S
TEUBEintroduced the following bill; which was referred to the
Committee on Veterans’ Affairs
A BILL
To amend title 38, United States Code, to allow individuals
who are entitled to Post-9/11 educational assistance to
use such assistance to repay Federal student loans.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Modern GI Bill Act’’. 4
SEC. 2. USE OF POST-9/11 EDUCATIONAL ASSISTANCE TO 5
REPAY FEDERAL STUDENT LOANS. 6
(a) A
UTHORITY.—Subchapter II of chapter 33 of title 7
38, United States Code, is amended by inserting after sec-8
tion 3320 the following new section: 9
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‘‘§ 3320A. Use of educational assistance benefits for 1
the repayment of Federal student loans 2
‘‘(a) U
SE OFBENEFITS.—Notwithstanding any other 3
provision of this chapter, an individual who is entitled to 4
educational assistance for tuition or fees under this sub-5
chapter may apply amounts of such educational assistance 6
to repay some or all of the outstanding balance of prin-7
cipal and interest due on a Federal student loan to the 8
individual. 9
‘‘(b) M
AXIMUMANNUALAMOUNT; ANNUALADJUST-10
MENT.—(1) Payment of educational assistance under this 11
section to an individual during fiscal year 2026 may not 12
exceed $15,900. 13
‘‘(2) In each fiscal year after fiscal year 2026, the 14
dollar amount in paragraph (1) shall be increased by the 15
same percentage as the percentage by which benefit 16
amounts payable under title II of the Social Security Act 17
(42 U.S.C. 401 et seq.) are increased effective December 18
1 of that year as a result of a determination under section 19
215(i) of such Act (42 U.S.C. 415(i)). 20
‘‘(c) M
ONTHLYPAYMENTS: MAXIMUMAMOUNT; 21
M
AXIMUMNUMBER.—(1) The Secretary shall make 22
monthly payments under this section in such amounts as 23
an individual who is entitled to educational assistance for 24
tuition or fees under this subchapter may elect for the re-25
payment of a Federal student loan to that individual. No 26
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such amount may exceed one-twelfth of the maximum an-1
nual amount calculated under subsection (b)(1). 2
‘‘(2) The total number of months of payments for the 3
repayment of a Federal student loan to an individual 4
under this section may not exceed 36 months. 5
‘‘(d) B
ENEFIT NON-TRANSFERABLE.—Notwith-6
standing section 3319 of this title, an individual who is 7
entitled to educational assistance under this section may 8
not transfer such assistance to another individual. 9
‘‘(e) E
LIGIBLEPAYEES.—The Secretary shall make 10
payments of educational assistance under this section di-11
rectly to the lender of the Federal student loan of the indi-12
vidual who is entitled to educational assistance under this 13
section. 14
‘‘(f) A
RRANGEMENTS TOMAKEPAYMENTS; REGULA-15
TIONS.—The Secretary shall enter into such arrange-16
ments, and shall prescribe such regulations, that the Sec-17
retary determines necessary to carry out this section. 18
‘‘(g) F
EDERALSTUDENTLOANDEFINED.—In this 19
section, the term ‘Federal student loan’ means any loan 20
made, insured, or guaranteed under title IV of the Higher 21
Education Act of 1965 (20 U.S.C. 1070 et seq.).’’. 22
(b) C
LERICALAMENDMENT.—The table of sections 23
at the beginning of such chapter is amended by inserting 24
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after the item relating to section 3320 the following new 1
item: 2
‘‘3320A. Use of educational assistance benefits for the repayment of Federal
student loans.’’.
(c) EFFECTIVEDATE.—The amendments made by 3
this section shall apply to educational assistance paid for 4
months beginning on or after the date of the enactment 5
of this Act. 6
Æ
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