I 111th CONGRESS 1st Session H. R. 2456 IN THE HOUSE OF REPRESENTATIVES May 18, 2009 Mrs. Davis of California (for herself, Mr. Bishop of New York, Mr. Hare, Mr. Cummings, Mr. Wu, and Mr. Costello) introduced the following bill; which was referred to the Committee on Education and Labor A BILL To amend section 484B of Higher Education Act of 1965 to provide for tuition reimbursement and loan forgiveness to students who withdraw from an institution of higher education to serve in the uniformed services, and for other purposes.

1.

Short title

This Act may be cited as the Veterans Education Tuition Support Act of 2009 or the VETS Act of 2009.

2.

Tuition relief for postsecondary students called to military service

(a)

In general

Section 484B(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 1091b(b)(2)) is amended by adding at the end the following: (F)

Tuition relief for students called to military service

(i)

Tuition relief

(I)

In general

Subject to subclause (II), whenever a student’s withdrawal from an institution of higher education is necessitated by reason of service in the uniformed services, the institution shall refund to such student the tuition and fees paid by, or on behalf of, such student for the payment period or period of enrollment for which such student did not receive academic credit as a result of such withdrawal. (II)

Exception

Subclause (I) shall not apply to the tuition or fees paid on behalf of the student— (aa)from scholarships awarded to the student by the institution of higher education; or (bb)through funds awarded under this title. (ii)

Waiver of repayment by students called to military service

In addition to the waivers authorized by subparagraphs (D) and (E), the Secretary shall waive the amounts that students are required to return under this section if the withdrawals on which the returns are based are withdrawals necessitated by reason of service in the uniformed services. (iii)

Loan forgiveness authorized

Whenever a student’s withdrawal from an institution of higher education is necessitated by reason of service in the uniformed services, the Secretary shall, with respect to the payment period or period of enrollment for which such student did not receive academic credit as a result of such withdrawal, carry out a program— (I)through the holder of the loan, to assume the obligation to repay— (aa)the outstanding principle and accrued interest on any loan assistance awarded to the student under part B (including to a parent on behalf of the student under section 428B) for such payment period or period of enrollment; minus (bb)any amount of such loan assistance returned by the institution in accordance with paragraph (1) of this subsection for such payment period or period of enrollment; and (II)to cancel— (aa)the outstanding principle and accrued interest on the loan assistance awarded to the student under part D or E (including a Federal Direct PLUS loan awarded to a parent on behalf of the student) for such payment period or period of enrollment; minus (bb)any amount of such loan assistance returned by the institution in accordance with paragraph (1) of this subsection for such payment period or period of enrollment. (iv)

Reimbursement for cancellation of Perkins loans

The Secretary shall pay to each institution for each fiscal year an amount equal to the aggregate of the amounts of Federal Perkins loans in such institutions’s student loan fund which are cancelled pursuant to clause (iii)(II) for such fiscal year, minus an amount equal to the aggregate of the amounts of any such loans so canceled which were made from Federal capital contributions to its student loan fund provided by the Secretary under section 468. None of the funds appropriated pursuant to section 461(b) shall be available for payments pursuant to this paragraph. To the extent feasible, the Secretary shall pay the amounts for which any institution qualifies under this paragraph not later than 3 months after the institution files an institutional application for campus-based funds. (v)

Loan eligibility and limits for students

Any amounts that are returned by an institution in accordance with paragraph (1), or forgiven or waived by the Secretary under this subparagraph, with respect to a payment period or period of enrollment for which a student did not receive academic credit as a result of withdrawal necessitated by reason of service in the uniformed services, shall not be included in the calculation of the student’s annual or aggregate loan limits for assistance under this title, or otherwise affect the student’s eligibility for grants or loans under this title. (vi)

Definition

In this subparagraph, the term service in the uniformed services has the meaning given such term in section 484C(a). . (b)

Effective date

(1)

In general

The amendments made by this Act shall take effect for periods of service in the uniformed services beginning after the date of the enactment of this Act. (2)

Definition

In this subsection, the term period of service in the uniformed services means the period beginning 30 days prior to the date a student is required to report to service in the uniformed services (as defined in section 484C(a)) and ending when such student returns from such service.