Modern GI Bill Act

I 117TH CONGRESS 1ST SESSION H. R. 359 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 JANUARY 19, 2021 Mr. STEUBE (for himself, Mrs. RODGERS of Washington, and Mrs. HINSON) introduced 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) AUTHORITY.—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 VerDate Sep 11 2014 20:07 Feb 07, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H359.IH H359 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 359 IH ‘‘§ 3320A. Use of educational assistance benefits for 1 the repayment of Federal student loans 2 ‘‘(a) USE OF BENEFITS.—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) MAXIMUM ANNUAL AMOUNT; ANNUAL ADJUST- 10 MENT.—(1) Payment of educational assistance under this 11 section to an individual during fiscal year 2020 may not 12 exceed $15,900. 13 ‘‘(2) In each fiscal year after fiscal year 2020, 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) MONTHLY PAYMENTS: MAXIMUM AMOUNT; 21 MAXIMUM NUMBER.—(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 VerDate Sep 11 2014 20:07 Feb 07, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H359.IH H359 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 359 IH 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) BENEFIT 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) ELIGIBLE PAYEES.—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) ARRANGEMENTS TO MAKE PAYMENTS; 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) FEDERAL STUDENT LOAN DEFINED.—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) CLERICAL AMENDMENT.—The table of sections 23 at the beginning of such chapter is amended by inserting 24 VerDate Sep 11 2014 20:07 Feb 07, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H359.IH H359 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 359 IH 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) EFFECTIVE DATE.—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 VerDate Sep 11 2014 20:07 Feb 07, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H359.IH H359 pbinns on DSKJLVW7X2PROD with BILLS