[House Report 118-675]
[From the U.S. Government Publishing Office]


118th Congress    }                                 {    Rept. 118-675
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                 {           Part 1

======================================================================



 
   MONTGOMERY GI BILL SELECTED RESERVES TUITION FAIRNESS ACT OF 2024

                                _______
                                

 September 16, 2024.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Bost, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 7323]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 7323) to amend title 38, United States Code, to 
direct the Secretary of Veterans Affairs to disapprove courses 
of education offered by a public institution of higher learning 
that does not charge the in-State tuition rate to a veteran 
using certain educational assistance under title 10 of such 
Code, having considered the same, reports favorably thereon 
with amendments and recommends that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     4
Subcommittee Consideration.......................................     5
Committee Consideration..........................................     5
Committee Votes..................................................     5
Committee Oversight Findings.....................................     5
Statement of General Performance Goals and Objectives............     5
Earmarks and Tax and Tariff Benefits.............................     6
Committee Cost Estimate..........................................     6
Budget Authority and Congressional Budget Office Estimate........     6
Federal Mandates Statement.......................................     8
Advisory Committee Statement.....................................     8
Applicability to Legislative Branch..............................     8
Statement on Duplication of Federal Programs.....................     8
Section-by-Section Analysis of the Legislation...................     8
Changes in Existing Law Made by the Bill, as Reported............     9

    The amendments are as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Montgomery GI Bill Selected Reserves 
Tuition Fairness Act of 2024''.

SEC. 2. DEPARTMENT OF VETERANS AFFAIRS DISAPPROVAL OF COURSES OFFERED 
                    BY PUBLIC INSTITUTIONS OF HIGHER LEARNING THAT DO 
                    NOT CHARGE VETERANS IN-STATE TUITION RATE FOR 
                    PURPOSES OF SELECTED RESERVE EDUCATIONAL ASSISTANCE 
                    PROGRAM.

  (a) In General.--Subsection (c) of section 3679 of title 38, United 
States Code, is amended--
          (1) in paragraph (1), by inserting ``, or chapter 1606 of 
        title 10,'' after ``chapter 30, 31, 33, or 35 of this title'';
          (2) in paragraph (2), by adding at the end the following new 
        subparagraph:
          ``(E) An individual who is entitled to assistance under 
        section 16131 of title 10.''; and
          (3) in paragraph (6), by inserting ``, or chapter 1606 of 
        title 10'' before the period at the end.
  (b) Conforming Amendments.--Subsection (e) of such section is 
amended--
          (1) in paragraph (1)--
                  (A) in subparagraph (A), by inserting ``, or chapter 
                1606 of title 10,'' after ``chapter 31, 33, or 35 of 
                this title''; and
                  (B) in subparagraph (B), by striking ``chapter 31 33, 
                or 35 of this title'' and inserting ``chapter 31, 33, 
                or 35 of this title, or chapter 1606 of title 10''; and
          (2) in paragraph (2), by striking ``chapter 31 33, or 35 of 
        this title'' and inserting ``chapter 31, 33, or 35 of this 
        title, or chapter 1606 of title 10''.
  (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act and shall apply with 
respect to an academic period that begins on or after August 1, 2024.

SEC. 3. LIMITATION ON AMOUNT OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE 
                    PAYABLE FOR FLIGHT TRAINING UNDER POST-9/11 
                    EDUCATIONAL ASSISTANCE PROGRAM OF DEPARTMENT OF 
                    VETERANS AFFAIRS.

  (a) In General.--Section 3313 of title 38, United States Code, is 
amended--
          (1) in subsection (g)(3)(C), by striking ``In the case'' and 
        inserting ``Subject to the limitation under subsection (m), in 
        the case''; and
          (2) by adding at the end the following new subsection:
  ``(m) Limitation on Use of Entitlement for Flight Training.--(1) 
Notwithstanding any other provision of this chapter and subject to 
paragraph (2), the maximum total amount payable under this chapter for 
tuition and fees in the case of an individual pursuing a degree-
granting or non-degree-granting program of flight training offered by a 
public institution of higher learning is--
          ``(A) in the case of an individual who first pursues such a 
        program during the academic year beginning on August 1, 2025, 
        $108,480; and
          ``(B) in the case of an individual who first pursues such a 
        program during any subsequent academic year, the amount in 
        effect under this subsection for the previous academic year 
        beginning on August 1, as increased by the percentage increase 
        equal to the most recent percentage increase determined under 
        section 3015(h) of this title.
  ``(2) An individual who receives educational assistance under this 
subsection may not receive more than the maximum total amount in effect 
under paragraph (1) with respect to the individual, regardless of when 
the individual pursues the program of flight training or how many such 
programs the individual pursues.
  ``(3) An individual who receives educational assistance under this 
subsection in an amount equal to less than the maximum total amount in 
effect under paragraph (1) shall be entitled to additional educational 
assistance under this chapter in an amount equal to the difference 
between--
          ``(A) the amount the individual received under this 
        subsection, and
          ``(B) the maximum total amount in effect under paragraph 
        (1).''.
  (b) Applicability.--The amendments made by subsection (a) shall take 
effect on August 1, 2025, and shall apply with respect to an individual 
who first pursues a program of flight training on or after August 1, 
2025.

    Amend the title so as to read:
    A bill to amend title 38, United States Code, to direct the 
Secretary of Veterans Affairs to disapprove courses of 
education offered by a public institution of higher learning 
that does not charge the in-State tuition rate to a veteran 
using certain educational assistance under title 10 of such 
Code, and for other purposes.

                          Purpose and Summary

    H.R. 7323, the ``Montgomery GI Bill Selected Reserves 
Tuition Fairness Act of 2024,'' was introduced by Rep. Derrick 
Van Orden of Wisconsin on February 13, 2024. The bill, as 
amended, would add chapter 1606 of Title 10, United States 
Code, to the list of entitlement chapters allowed for in-state 
tuition waivers.
    This legislation, as amended, also includes the text of 
H.R. 7613, the ``Veterans Flight Training Responsibility Act of 
2024'', which was introduced by Rep. Thomas Kean of New Jersey 
on March 11, 2024. This bill would create an entitlement cap to 
limit the use of entitlement at public institutions of higher 
learning to $108,480 and would allow individuals to use 
entitlement year-round without worry of running out of 
entitlement during an academic year.

                  Background and Need for Legislation


Section 1: Short Title

    This Act may be cited as the ``Montgomery GI Bill Selected 
Reserves Tuition Fairness Act of 2024.''

Section 2: Department of Veterans Affairs Disapproval of Courses 
        Offered by Public Institutions of Higher Learning That Do Not 
        Charge Veteran In-State Tuition Rate for Purposes of Selected 
        Reserve Education Assistance Program

    Under current law, 38 U.S.C. Sec. 3679(c)(1) allows an in-
state waiver for Chapter 30, 31, 33, or 35 education 
entitlements; however, an individual using Montgomery GI Bill 
Selected Reserves (chapter 1606 of Title 10) would not be 
eligible for the in-state waiver. The in-state waiver allows an 
individual who is using veterans benefits for education to pay 
the same amount of tuition as a resident of the state. The bill 
would correct this discrepancy and create parity in education 
entitlement.
    Under the bill, a covered individual for the in-state 
waiver would be a veteran who lived where the institution of 
higher learning (IHL) is located and enrolls in the school 
within three years of discharge, or an individual who is using 
transferred entitlement. This section would include another 
education entitlement to the in-state waiver and allow veterans 
using chapter 1606 of Title 10 to receive the same reduced 
tuition paid by other veterans and individuals they are taking 
classes with. The Committee believes that by including chapter 
1606 of Title 10 in the in-state waiver, more veterans would 
attain an education and use the benefit they earned.

Section 3: Limitation on Amount of Entitlement to Educational 
        Assistance Payable for Flight Training Under Post-9/11 
        Educational Assistance Program of Department of Veterans 
        Affairs

    The Committee has heard concerns from veterans enrolled in 
flight training programs exhausting the amount of GI bill 
entitlement available to them in a year before the spring and 
summer months. Consequently, these veterans are not able to fly 
during the months with the best flight training weather unless 
they paid out of pocket. Additionally, the Committee has heard 
complaints of overcharging at some schools from veterans 
previously enrolled in the program.
    This section would modify 38 U.S.C. Sec. 3313 related to 
flight training programs offered at public institutions of 
higher learning. It would create a limit that an individual 
using Post 9/11 GI Bill benefits can use for flight training 
tuition and fees at a degree-granting or non-degree-granting 
public institution of higher learning. Currently, there is no 
cap on fees as long as it is at the in-state tuition rate. In 
many cases this means there is no effective cap at all. Under 
this section, individuals would use up to 36 months of 
entitlement with a cap of up to $108,480. Individuals would 
also be allowed to use entitlement at a faster rate which would 
allow them to attend school and flight training year-round. Any 
unused amount under the cap would be transferrable back to an 
equivalent number of months of the Post 9/11 GI Bill.
    Amending this section would improve the ability of veterans 
attending a flight training program and provide fiscal 
oversight of flight programs at public institutions of higher 
learning. Creating a maximum amount that can be charged for 
flight training could potentially save millions of dollars in 
Chapter 33 entitlement for VA. Data received from VA shows that 
99% of individuals attending a flight program at a public 
institution of higher learning do not pay over $100,000. This 
means that this legislation would only impact the most 
expensive schools and would prevent schools from overcharging 
veterans and VA. The Committee believes this proposed 
legislation is a step forward in limiting excessive charges by 
schools.

                                Hearings

    On March 20, 2023, the Subcommittee on Economic Opportunity 
held a legislative hearing on H.R. 7323 and other bills that 
were pending before the subcommittee.
    The following witnesses testified:
          Ms. Melissa Cohen, Executive Director of Outreach, 
        Transition, and Economic Development, U.S. Department 
        of Veterans Affairs; Mr. Nathan Sanfilippo, Executive 
        Director of Multichannel Technology at Veterans 
        Experience Office, U.S. Department of Veterans Affairs; 
        Mr. Thomas Alphonso, Assistant Director of Education 
        Services, U.S. Department of Veterans Affairs; Mr. 
        James Rodriguez, Assistant Secretary for Veterans' 
        Employment and Training Service, U.S. Department of 
        Labor; Ms. Kristina Keenan, Deputy Director, National 
        Legislative Service, Veterans of Foreign Wars of the 
        United States; Mr. Marquis Barefield, Assistant 
        National Legislative Director, Disabled American 
        Veterans; Ms. Nadine Bullock-Pottinga, Chief 
        Development Officer, Hire Heroes USA; Mr. Gregory John, 
        Founder and President, Infinity Flight Group, and Mr. 
        Matthew Schwartzman, Director, Legislation and Military 
        Policy, Reserve Organization of America.
    The following organizations and members submitted 
statements for the record:
          Representative Ken Calvert of California, Disabled 
        American Veterans, The American Legion, Veterans 
        Education Success, United Services Automobile 
        Association, RecruitMilitary, Orion Talent, Military 
        Talent Pipeline, Semper Forward, and ZeroMils.

                       Subcommittee Consideration

    On April 17, 2024, the Subcommittee on Economic Opportunity 
held a markup on H.R. 7323. There were no amendments offered to 
the bill at the Subcommittee markup.
    A motion by Rep. Levin of California to favorably forward 
H.R. 7323 to the Full Committee was adopted by voice vote.
          An amendment in the nature of a substitute to H.R. 
        7613 offered by Subcommittee Chair Van Orden was 
        adopted by voice vote. The amendment in the nature of a 
        substitute raised the entitlement cap from $100,000 to 
        $108,480 and established a process for turning 
        entitlement into the tuition cap and changed the cap 
        from ``flight fees'' to ``flight tuition and fees.''
    A motion by Rep. Levin of California to favorably forward 
H.R. 7613 to the Full Committee was adopted by voice vote.

                        Committee Consideration

    On May 1, 2024, the Full Committee met in open markup 
session, a quorum being present, and ordered H.R. 7323, as 
amended, to be reported favorably to the House of 
Representatives by voice vote. During consideration of the 
bill, the following amendments were considered:
          An amendment in the nature of a substitute offered by 
        Rep. Derrick Van Orden of Wisconsin that included the 
        text of H.R. 7323, adopted by the Subcommittee on 
        Economic Opportunity. The amendment also added the 
        provisions of H.R. 7613 with changes from the 
        introduced text. The new language would establish a 
        process for flight school tuition cap to be reverted 
        back to Post 9/11 GI Bill entitlement.
    The amendment in the nature of a substitute, as amended, 
was approved by voice vote.
    A motion by Ranking Member Takano of California to report 
H.R. 7323, as amended, favorably to the House of 
Representatives was agreed to by voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 7323, as 
amended, as amended, reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 7323, as amended, are to include 
Chapter 1606 of title 10 as an eligible entitlement for an in-
state tuition waiver. Additionally, the goal is to allow 
individuals using entitlement for public institutions of higher 
education flight programs to go to school faster and reduce 
fraud in those programs.

                  Earmarks and Tax and Tariff Benefits

    H.R. 7323, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

           Budget Authority and Congressional Budget Office 
                             Cost Estimate

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


    H.R. 7323 would make changes to education benefit programs 
administered by the Department of Veterans Affairs (VA). The 
costs of those programs are paid from mandatory appropriations. 
CBO estimates that enacting the bill would decrease direct 
spending by $4 million and increase spending subject to 
appropriation by $3 million, over the 2024-2034 period. The 
costs of the legislation, detailed in Table 1, fall within 
budget function 700 (veterans benefits and services). For 
purposes of this estimate, CBO assumed H.R. 7323 would be 
enacted late in fiscal year 2024.

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 7323
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2024   2025   2026   2027   2028   2029   2030   2031   2032   2033   2034  2024-2029  2024-2034
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            DECREASES (-) IN DIRECT SPENDING
 
Estimated Budget Authority...........................      0      *      *     -1      *     -1      *     -1      *     -1      *        -2         -4
Estimated Outlays....................................      0      *      *     -1      *     -1      *     -1      *     -1      *        -2         -4
 
                                                     INCREASES IN SPENDING SUBJECT TO APPROPRIATION
 
Estimated Authorization..............................      0      3      0      0      0      0      0      0      0      0      0         3          3
Estimated Outlays....................................      0      2      1      *      0      0      0      0      0      0      0         3          3
--------------------------------------------------------------------------------------------------------------------------------------------------------
*= between -$500,000 and $500,000.

    Direct spending: H.R. 7323 would limit some education 
benefits for veterans. The limit on payments for flight 
training programs would reduce direct spending, whereas the 
prohibition on paying out-of-state tuition rates would not, in 
CBO's estimation, affect direct spending.
    Flight training limit: Section 3 would limit the maximum 
amount of tuition and fees that VA would pay to public 
educational institutions on behalf of beneficiaries of the 
Post-9/11 GI Bill who enroll in flight training programs.
    Currently, VA pays an amount equivalent to in-state tuition 
and fees at public educational institutions for students 
enrolled in degree-granting programs of education. Benefits are 
paid for up to 36 months of enrollment in approved programs and 
also can include housing allowances and book stipends. Although 
there are practical limitations, there is no specified cap on 
the total amount of benefits that can be paid for a person 
attending a public institution under current law.
    The bill would limit the amount of tuition and fee payments 
for students who first enroll in a flight training program at a 
public institution after the 2024-2025 academic year to a 
lifetime total of $108,480 (increased each year thereafter to 
account for inflation). Limiting total payments for the tuition 
and fees of flight training would reduce benefit costs under 
the Post-9/11 GI Bill. On the basis of data from VA, CBO 
estimates that annual benefit payments for roughly 15 flight 
trainees would be reduced by an average of $30,000 over the 
next 10 years. Consequently, enacting the bill would decrease 
direct spending by $4 million over the 2024-2034 period, CBO 
estimates.
    In-state tuition: Section 2 would generally prohibit VA 
from paying any VA education benefits to students enrolled at 
public schools that charge beneficiaries of the Mongomery GI 
Bill--Selected Reserve (MGIB-SR) tuition and fees at amounts 
higher than the rates charged to state residents if those 
beneficiaries are living in the state where the school is 
located, regardless of whether they are state residents.
    Under the MGIB-SR, VA pays monthly benefits to eligible 
members of the federal reserves and National Guard. Those 
members may receive payments for up to 36 months while they are 
enrolled in school. The amount is determined by the number of 
college credits the members earn during an academic term 
(currently, $466 per month for full-time enrollment in 2024) 
and is adjusted annually for inflation. Many schools offer in-
state tuition to students receiving MGIB-SR benefits, and CBO 
anticipates schools that do not would choose to do so if the 
bill is enacted. As a result, MGIB-SR students enrolled in 
those schools would pay less for tuition.
    Payment rates under MGIB-SR are not based on tuition rates. 
Thus, reducing tuition for beneficiaries would not affect the 
amount of their benefits. Consequently, CBO estimates that 
enacting section 2 would not affect direct spending.
    Spending subject to appropriation: Implementing the limit 
on flight training benefits would require changes to the 
information technology systems used by VA to manage education 
benefits. On the basis of information from VA, CBO estimates 
that those changes would cost $3 million over the 2024-2029 
period; such spending would be subject to the availability of 
appropriated funds.
    The CBO staff contact for this estimate is Paul B.A. 
Holland. The estimate was reviewed by Christina Hawley Anthony, 
Deputy Director of Budget Analysis.
                                         Phillip L. Swagel,
                             Director, Congressional Budget Office.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4 is inapplicable to H.R. 7323, as 
amended.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
7323, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 7323, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of 
section102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 7323, as amended, would establish or reauthorize a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 would establish the short title of the bill as 
``Montgomery GI Bill Selected Reserves Tuition Fairness Act of 
2024.''

Section 2. Department of Veterans Affairs disapproval of courses 
        offered by public institutions of higher learning that do not 
        charge veteran in-state tuition rate for purposes of Selected 
        Reserve Education Assistance program

    This section would amend 38 U.S.C. Sec. 3679 (c) to which 
grants an in-state waiver for Chapter 30, 31, 33, or 35 
education entitlements, to allow an individual using Montgomery 
GI Bill Selected Reserves (chapter 1606 of title 10) to be 
eligible for the in-state waiver as well. This section would 
also establish an effective date for this legislation on August 
1, 2024.

Section 3. Limitation on amount of entitlement to educational 
        assistance payable for flight training under Post-9/11 
        Educational Assistance program of Department of Veterans 
        Affairs

    This section would amend 38 U.S.C. Sec. 3313 by adding a 
new subsection (m). This new subsection would create a maximum 
amount of entitlement usable for degree-granting and non-
degree-granting programs of flight training offered by a public 
institution of higher learning. This amount would be set to 
$108,480 and would increase at the same rate as Chapter 33 at 
private schools. The individual would reduce their cap while 
paying for flight tuition and fees but would be able to 
transfer their flight training cap back to their entitlement.
    This section would establish an effective date for this 
section on August 1, 2025.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE



           *       *       *       *       *       *       *
PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


CHAPTER 33--POST-9/11 EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


SUBCHAPTER II--EDUCATIONAL ASSISTANCE

           *       *       *       *       *       *       *


Sec. 3313. Educational assistance: amount; payment

  (a) Payment.--The Secretary shall pay to each individual 
entitled to educational assistance under this chapter who is 
pursuing an approved program of education (other than a program 
covered by subsections (e) and (f)) the amounts specified in 
subsection (c) to meet the expenses of such individual's 
subsistence, tuition, fees, and other educational costs for 
pursuit of such program of education.
  (b) Approved Programs of Education.--A program of education 
is an approved program of education for purposes of this 
chapter if the program of education is approved for purposes of 
chapter 30 (including approval by the State approving agency 
concerned).
  (c) Programs of Education Leading to a Degree Pursued at 
Institutions of Higher Learning on More Than Half-time Basis.--
The amounts payable under this subsection for pursuit of an 
approved program of education leading to a degree at an 
institution of higher learning (as that term is defined in 
section 3452(f)) are amounts as follows:
          (1) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        paragraph (1), (2), (8), (9), (10), or (11) of section 
        3311(b), amounts as follows:
                  (A) An amount equal to the following:
                          (i) In the case of a program of 
                        education pursued at a public 
                        institution of higher learning, the 
                        actual net cost for in-State tuition 
                        and fees assessed by the institution 
                        for the program of education after the 
                        application of--
                                  (I) any waiver of, or 
                                reduction in, tuition and fees; 
                                and
                                  (II) 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(b))) that 
                                is provided directly to the 
                                institution and specifically 
                                designated for the sole purpose 
                                of defraying tuition and fees.
                          (ii) In the case of a program of 
                        education pursued at a non-public or 
                        foreign 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) that is provided 
                                        directly to the 
                                        institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees; or
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, 
                                        $17,500; or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h).
                  (B) A monthly stipend in an amount as 
                follows:
                          (i) Except as provided in clauses 
                        (ii) and (iii), for each month an 
                        individual pursues a program of 
                        education on more than a half-time 
                        basis, a monthly housing stipend equal 
                        to the product of--
                                  (I) the monthly amount of the 
                                basic allowance for housing 
                                payable under section 403 of 
                                title 37 for a member with 
                                dependents in pay grade E-5 
                                residing in the military 
                                housing area that encompasses 
                                all or the majority portion of 
                                the ZIP code area in which is 
                                located the campus of the 
                                institution of higher learning 
                                where the individual physically 
                                participates in a majority of 
                                classes, multiplied by
                                  (II) the lesser of--
                                          (aa) 1.0; or
                                          (bb) the number of 
                                        course hours borne by 
                                        the individual in 
                                        pursuit of the program 
                                        of education, divided 
                                        by the minimum number 
                                        of course hours 
                                        required for full-time 
                                        pursuit of the program 
                                        of education, rounded 
                                        to the nearest multiple 
                                        of 10.
                          (ii) In the case of an individual 
                        pursuing a program of education at a 
                        foreign institution of higher learning 
                        on more than a half-time basis, for 
                        each month the individual pursues the 
                        program of education, a monthly housing 
                        stipend equal to the product of--
                                  (I) the national average of 
                                the monthly amount of the basic 
                                allowance for housing payable 
                                under section 403 of title 37 
                                for a member with dependents in 
                                pay grade E-5, multiplied by
                                  (II) the lesser of--
                                          (aa) 1.0; or
                                          (bb) the number of 
                                        course hours borne by 
                                        the individual in 
                                        pursuit of the program 
                                        of education, divided 
                                        by the minimum number 
                                        of course hours 
                                        required for full-time 
                                        pursuit of the program 
                                        of education, rounded 
                                        to the nearest multiple 
                                        of 10.
                          (iii) In the case of an individual 
                        pursuing a program of education solely 
                        through distance learning on more than 
                        a half-time basis, a monthly housing 
                        stipend equal to 50 percent of the 
                        amount payable under clause (ii) if the 
                        individual were otherwise entitled to a 
                        monthly housing stipend under that 
                        clause for pursuit of the program of 
                        education.
                          (iv) For the first month of each 
                        quarter, semester, or term, as 
                        applicable, of the program of education 
                        pursued by the individual, a lump sum 
                        amount for books, supplies, equipment, 
                        and other educational costs with 
                        respect to such quarter, semester, or 
                        term in the amount equal to--
                                  (I) $1,000, multiplied by
                                  (II) the fraction which is 
                                the portion of a complete 
                                academic year under the program 
                                of education that such quarter, 
                                semester, or term constitutes.
          (2) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(3), amounts equal to 90 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (3) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(4), amounts equal to 80 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (4) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(5), amounts equal to 70 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (5) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(6), amounts equal to 60 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
          (6) In the case of an individual entitled to 
        educational assistance under this chapter by reason of 
        section 3311(b)(7), amounts equal to 50 percent of the 
        amounts that would be payable to the individual under 
        paragraph (1) for the program of education if the 
        individual were entitled to amounts for the program of 
        education under paragraph (1) rather than this 
        paragraph.
  (d) Frequency of Payment.--
          (1) Quarter, semester, or term payments.--Payment of 
        the amounts payable under subsection (c)(1)(A), and of 
        similar amounts payable under paragraphs (2) through 
        (6) of subsection (c), for pursuit of a program of 
        education shall be made for the entire quarter, 
        semester, or term, as applicable, of the program of 
        education.
          (2) Monthly payments.--Payment of the amount payable 
        under subsection (c)(1)(B), and of similar amounts 
        payable under paragraphs (2) through (6) of subsection 
        (c), for pursuit of a program of education shall be 
        made on a monthly basis.
          (3) Regulations.--The Secretary shall prescribe in 
        regulations methods for determining the number of 
        months (including fractions thereof) of entitlement of 
        an individual to educational assistance under this 
        chapter that are chargeable under this chapter for an 
        advance payment of amounts under paragraphs (1) and (2) 
        for pursuit of a program of education on a quarter, 
        semester, term, or other basis.
  (e) Programs of Education Leading to a Degree Pursued on 
Active Duty for a Period of More Than 30 Days on More Than 
Half-time Basis.--
          (1) In general.--Educational assistance is payable 
        under this chapter for pursuit of an approved program 
        of education leading to a degree while on active duty 
        for a period of more than 30 days.
          (2) Amount of assistance.--The amounts of educational 
        assistance payable under this chapter to an individual 
        pursuing a program of education leading to a degree 
        while on active duty for a period of more than 30 days 
        are as follows:
                  (A) Subject to subparagraph (C), an amount 
                equal to the lesser of--
                          (i) in the case of a program of 
                        education pursued at a public 
                        institution of higher learning, the 
                        actual net cost for in-State tuition 
                        and fees assessed by the institution 
                        for the program of education after the 
                        application of--
                                  (I) any waiver of, or 
                                reduction in, tuition and fees; 
                                and
                                  (II) 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(b))) that 
                                is provided directly to the 
                                institution and specifically 
                                designated for the sole purpose 
                                of defraying tuition and fees;
                          (ii) in the case of a program of 
                        education pursued at a non-public or 
                        foreign 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) that is provided 
                                        directly to the 
                                        institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees; or
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, 
                                        $17,500; or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h); 
                                        or
                          (iii) the amount of the charges of 
                        the educational institution as elected 
                        by the individual in the manner 
                        specified in section 3014(b)(1).
                  (B) Subject to subparagraph (C), for the 
                first month of each quarter, semester, or term, 
                as applicable, of the program of education 
                pursued by the individual, a lump sum amount 
                for books, supplies, equipment, and other 
                educational costs with respect to such quarter, 
                semester, or term in the amount equal to--
                          (i) $1,000, multiplied by
                          (ii) the fraction of a complete 
                        academic year under the program of 
                        education that such quarter, semester, 
                        or term constitutes.
                  (C) In the case of an individual entitled to 
                educational assistance by reason of paragraphs 
                (3) through (7) of section 3311(b), the amounts 
                payable to the individual pursuant to 
                subparagraphs (A)(i), (A)(ii), and (B) shall be 
                the amounts otherwise determined pursuant to 
                such subparagraphs multiplied by the same 
                percentage applicable to the monthly amounts 
                payable to the individual under paragraphs (2) 
                through (6) of subsection (c).
          (3) Quarter, semester, or term payments.--Payment of 
        the amount payable under paragraph (2) for pursuit of a 
        program of education shall be made for the entire 
        quarter, semester, or term, as applicable, of the 
        program of education.
          (4) Monthly payments.--For each month (as determined 
        pursuant to the methods prescribed under subsection 
        (d)(3)) for which amounts are paid an individual under 
        this subsection, the entitlement of the individual to 
        educational assistance under this chapter shall be 
        charged at the rate of one month for each such month.
  (f) Programs of Education Pursued on Half-Time Basis or 
Less.--
          (1) In general.--Educational assistance is payable 
        under this chapter for pursuit of an approved program 
        of education on half-time basis or less whether a 
        program of education pursued on active duty, a program 
        of education leading to a degree, or a program of 
        education other than a program of education leading to 
        a degree.
          (2) Amount of assistance.--The educational assistance 
        payable under this chapter to an individual pursuing a 
        program of education covered by this subsection on 
        half-time basis or less is the amounts as follows:
                  (A) The amount equal to the lesser of--
                          (i) the actual net cost for in-State 
                        tuition and fees assessed by the 
                        institution of higher learning for the 
                        program of education after the 
                        application of--
                                  (I) any waiver of, or 
                                reduction in, tuition and fees; 
                                and
                                  (II) 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(b))) that 
                                is provided directly to the 
                                institution and specifically 
                                designated for the sole purpose 
                                of defraying tuition and fees; 
                                or
                          (ii) the maximum amount that would be 
                        payable to the individual for the 
                        program of education under paragraph 
                        (1)(A) of subsection (c), or under the 
                        provisions of paragraphs (2) through 
                        (6) of subsection (c) applicable to the 
                        individual, for the program of 
                        education if the individual were 
                        entitled to amounts for the program of 
                        education under subsection (c) rather 
                        than this subsection.
                  (B) A stipend in an amount equal to the 
                amount of the appropriately reduced amount of 
                the lump sum amount for books, supplies, 
                equipment, and other educational costs 
                otherwise payable to the individual under 
                subsection (c).
          (3) Quarter, term, or semester payments.--Payment of 
        the amounts payable to an individual under paragraph 
        (2) for pursuit of a program of education on half-time 
        basis or less shall be made for the entire quarter, 
        semester, or term, as applicable, of the program of 
        education.
          (4) Monthly payments.--For each month (as determined 
        pursuant to the methods prescribed under subsection 
        (d)(3)) for which amounts are paid an individual under 
        this subsection, the entitlement of the individual to 
        educational assistance under this chapter shall be 
        charged at a percentage of a month equal to--
                  (A) the number of course hours borne by the 
                individual in pursuit of the program of 
                education involved, divided by
                  (B) the number of course hours for full-time 
                pursuit of such program of education.
  (g) Programs of Education Other Than Programs of Education 
Leading to a Degree.--
          (1) In general.--Educational assistance is payable 
        under this chapter for pursuit of an approved program 
        of education other than a program of education leading 
        to a degree at an institution other than an institution 
        of higher learning (as that term is defined in section 
        3452(f)).
          (2) Pursuit on half-time basis or less.--The payment 
        of educational assistance under this chapter for 
        pursuit of a program of education otherwise described 
        in paragraph (1) on a half-time basis or less is 
        governed by subsection (f).
          (3) Amount of assistance.--The amounts of educational 
        assistance payable under this chapter to an individual 
        entitled to educational assistance under this chapter 
        who is pursuing an approved program of education 
        covered by this subsection are as follows:
                  (A) In the case of an individual enrolled in 
                a program of education (other than a program 
                described in subparagraphs (B) through (D)) in 
                pursuit of a certificate or other non-college 
                degree, the following:
                          (i) Subject to clause (iv), an amount 
                        equal to the lesser of--
                                  (I) the actual net cost for 
                                in-State tuition and fees 
                                assessed by the institution 
                                concerned 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(b))) that is 
                                        provided directly to 
                                        the institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees; or
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, 
                                        $17,500; or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h).
                          (ii) Except in the case of an 
                        individual pursuing a program of 
                        education on a half-time or less basis 
                        and subject to clause (iv), a monthly 
                        housing stipend equal to the product--
                                  (I) of--
                                          (aa) in the case of 
                                        an individual pursuing 
                                        resident training, the 
                                        monthly amount of the 
                                        basic allowance for 
                                        housing payable under 
                                        section 403 of title 37 
                                        for a member with 
                                        dependents in pay grade 
                                        E-5 residing in the 
                                        military housing area 
                                        that encompasses all or 
                                        the majority portion of 
                                        the ZIP code area in 
                                        which is located the 
                                        campus of the 
                                        institution of where 
                                        the individual 
                                        physically participates 
                                        in a majority of 
                                        classes; or
                                          (bb) in the case of 
                                        an individual pursuing 
                                        a program of education 
                                        through distance 
                                        learning, a monthly 
                                        amount equal to 50 
                                        percent of the amount 
                                        payable under item 
                                        (aa), multiplied by
                                  (II) the lesser of--
                                          (aa) 1.0; or
                                          (bb) the number of 
                                        course hours borne by 
                                        the individual in 
                                        pursuit of the program 
                                        of education involved, 
                                        divided by the minimum 
                                        number of course hours 
                                        required for full-time 
                                        pursuit of such program 
                                        of education, rounded 
                                        to the nearest multiple 
                                        of 10.
                          (iii) Subject to clause (iv), a 
                        monthly stipend in an amount equal to 
                        $83 for each month (or pro rata amount 
                        for a partial month) of training 
                        pursued for books, supplies, equipment, 
                        and other educational costs.
                          (iv) In the case of an individual 
                        entitled to educational assistance by 
                        reason of paragraphs (3) through (7) of 
                        section 3311(b), the amounts payable 
                        pursuant to clauses (i), (ii), and 
                        (iii) shall be the amounts otherwise 
                        determined pursuant to such clauses 
                        multiplied by the same percentage 
                        applicable to the monthly amounts 
                        payable to the individual under 
                        paragraphs (2) through (6) of 
                        subsection (c).
                  (B) In the case of an individual pursuing a 
                full-time program of apprenticeship or other 
                on-job training, amounts as follows:
                          (i) Subject to clauses (iii) and 
                        (iv), for each month the individual 
                        pursues the program of education, a 
                        monthly housing stipend equal to--
                                  (I) during the first six-
                                month period of the program, 
                                the monthly amount of the basic 
                                allowance for housing payable 
                                under section 403 of title 37 
                                for a member with dependents in 
                                pay grade E-5 residing in the 
                                military housing area that 
                                encompasses all or the majority 
                                portion of the ZIP code area in 
                                which is located the employer 
                                at which the individual pursues 
                                such program;
                                  (II) during the second six-
                                month period of the program, 80 
                                percent of the monthly amount 
                                of the basic allowance for 
                                housing payable as described in 
                                subclause (I);
                                  (III) during the third six-
                                month period of the program, 60 
                                percent of the monthly amount 
                                of the basic allowance for 
                                housing payable as described in 
                                subclause (I);
                                  (IV) during the fourth six-
                                month period of such program, 
                                40 percent of the monthly 
                                amount of the basic allowance 
                                for housing payable as 
                                described in subclause (I); and
                                  (V) during any month after 
                                the first 24 months of such 
                                program, 20 percent of the 
                                monthly amount of the basic 
                                allowance for housing payable 
                                as described in subclause (I).
                          (ii) Subject to clauses (iii) and 
                        (iv), a monthly stipend in an amount 
                        equal to $83 for each month (or pro 
                        rata amount for each partial month) of 
                        training pursued for books, supplies, 
                        equipment, and other educational costs.
                          (iii) In the case of an individual 
                        entitled to educational assistance by 
                        reason of paragraphs (3) through (7) of 
                        sections 3311(b), the amounts payable 
                        pursuant to clauses (i) and (ii) shall 
                        be the amounts otherwise determined 
                        pursuant to such clauses multiplied by 
                        the same percentage applicable to the 
                        monthly amounts payable to the 
                        individual under paragraphs (2) through 
                        (6) of subsection (c).
                          (iv) In any month in which an 
                        individual pursuing a program of 
                        education consisting of a program of 
                        apprenticeship or other on-job training 
                        fails to complete 120 hours of 
                        training, the amount of monthly 
                        educational assistance allowance 
                        payable under clauses (i) and (iii) to 
                        the individual shall be limited to the 
                        same proportion of the applicable rate 
                        determined under this subparagraph as 
                        the number of hours worked during such 
                        month, rounded to the nearest eight 
                        hours, bears to 120 hours.
                  (C) [In the case] Subject to the limitation 
                under subsection (m), in the case of an 
                individual enrolled in a program of education 
                consisting of flight training (regardless of 
                the institution providing such program of 
                education), an amount equal to--
                          (i) the lesser of--
                                  (I) the actual net cost for 
                                in-State tuition and fees 
                                assessed by the institution 
                                concerned 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) that is provided 
                                        directly to the 
                                        institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees; or
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, 
                                        $10,000; or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h), 
                                        multiplied by--
                          (ii) either--
                                  (I) in the case of an 
                                individual entitled to 
                                educational assistance by 
                                reason of paragraphs (1), (2), 
                                or (8) of section 3311(b), 100 
                                percent; or
                                  (II) in the case of an 
                                individual entitled to 
                                educational assistance by 
                                reason of paragraphs (3) 
                                through (7) of section 3311(b), 
                                the same percentage as would 
                                otherwise apply to the monthly 
                                amounts payable to the 
                                individual under paragraphs (2) 
                                through (6) of subsection (c).
                  (D) In the case of an individual enrolled in 
                a program of education that is pursued 
                exclusively by correspondence (regardless of 
                the institution providing such program of 
                education), an amount equal to--
                          (i) the lesser of--
                                  (I) the actual net cost for 
                                tuition and fees assessed by 
                                the institution concerned 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) that is provided 
                                        directly to the 
                                        institution and 
                                        specifically designated 
                                        for the sole purpose of 
                                        defraying tuition and 
                                        fees.
                                  (II) the amount equal to--
                                          (aa) for the academic 
                                        year beginning on 
                                        August 1, 2011, $8,500; 
                                        or
                                          (bb) for an academic 
                                        year beginning on any 
                                        subsequent August 1, 
                                        the amount for the 
                                        previous academic year 
                                        beginning on August 1 
                                        under this subclause, 
                                        as increased by the 
                                        percentage increase 
                                        equal to the most 
                                        recent percentage 
                                        increase determined 
                                        under section 3015(h), 
                                        multiplied by--
                          (ii) either--
                                  (I) in the case of an 
                                individual entitled to 
                                educational assistance by 
                                reason of paragraphs (1), (2), 
                                or (8) of section 3311(b), 100 
                                percent; or
                                  (II) in the case of an 
                                individual entitled to 
                                educational assistance by 
                                reason of paragraphs (3) 
                                through (7) of section 3311(b), 
                                the same percentage as would 
                                otherwise apply to the monthly 
                                amounts payable to the 
                                individual under paragraphs (2) 
                                through (6) of subsection (c).
          (4) Frequency of payment.--
                  (A) Quarter, semester, or term payments.--
                Payment of the amounts payable under paragraph 
                (3)(A)(i) for pursuit of a program of education 
                shall be made for the entire quarter, semester, 
                or term, as applicable, of the program of 
                education.
                  (B) Monthly payments.--Payment of the amounts 
                payable under paragraphs (3)(A)(ii) and 
                (3)(B)(i) for pursuit of a program of education 
                shall be made on a monthly basis.
                  (C) Lump sum payments.--
                          (i) Payment for the amount payable 
                        under paragraphs (3)(A)(iii) and 
                        (3)(B)(ii) shall be paid to the 
                        individual for the first month of each 
                        quarter, semester, or term, as 
                        applicable, of the program education 
                        pursued by the individual.
                          (ii) Payment of the amount payable 
                        under paragraph (3)(C) for pursuit of a 
                        program of education shall be made upon 
                        receipt of certification for training 
                        completed by the individual and 
                        serviced by the training facility.
                  (D) Quarterly payments.--Payment of the 
                amounts payable under paragraph (3)(D) for 
                pursuit of a program of education shall be made 
                quarterly on a pro rata basis for the lessons 
                completed by the individual and serviced by the 
                institution.
          (5) Charge against entitlement for certificate and 
        other non-college degree programs.--
                  (A) In general.--In the case of amounts paid 
                under paragraph (3)(A)(i) for pursuit of a 
                program of education, the charge against 
                entitlement to educational assistance under 
                this chapter of the individual for whom such 
                payment is made shall be one month for each 
                of--
                          (i) the amount so paid, divided by
                          (ii) subject to subparagraph (B), the 
                        amount equal to one-twelfth of the 
                        amount applicable in the academic year 
                        in which the payment is made under 
                        paragraph (3)(A)(i)(II).
                  (B) Pro rata adjustment based on certain 
                eligibility.--If the amount otherwise payable 
                with respect to an individual under paragraph 
                (3)(A)(i) is subject to a percentage adjustment 
                under paragraph (3)(A)(iv), the amount 
                applicable with respect to the individual under 
                subparagraph (A)(ii) shall be the amount 
                otherwise determined pursuant to such 
                subparagraph subject to a percentage adjustment 
                equal to the percentage adjustment applicable 
                with respect to the individual under paragraph 
                (3)(A)(iv).
  (h) Payment of Established Charges to Educational 
Institutions.--Amounts payable under subsections (c)(1)(A) (and 
of similar amounts payable under paragraphs (2) through (6) of 
subsection (c)), (e)(2), and (f)(2)(A), and under subparagraphs 
(A)(i), (C), and (D) of subsection (g)(3), shall be paid 
directly to the educational institution concerned.
  (i) Determination of Housing Stipend Payments for Academic 
Years.--Any monthly housing stipend payable under this section 
during the academic year beginning on August 1 of a calendar 
year shall be determined utilizing rates for basic allowances 
for housing payable under section 403 of title 37 in effect as 
of January 1 of such calendar year.
  (j) Determination of Monthly Housing Stipends During Active 
Duty Service.--For any month during which an individual who is 
entitled to a monthly housing stipend under this section is 
performing active duty service, the Secretary shall determine 
the amount of such stipend payable to such individual for such 
month on a pro rata basis for the period of such month during 
which the individual is not performing active duty service.
  (k) Provision of Housing Stipend Payment Information.--
          (1) In general.--The Secretary shall furnish to 
        individuals receiving educational assistance under this 
        chapter documentation that verifies the amount of the 
        monthly housing stipend the individual receives under 
        this section.
          (2) Manner.--The Secretary shall make such 
        documentation available to the individual using an 
        internet website in the same manner the Secretary 
        provides documentation verifying compensation and other 
        benefits furnished by the Secretary to individuals.
  (l) Verification of Enrollment.--
          (1) In general.--Except as provided in paragraph (4), 
        the Secretary shall require--
                  (A) each educational institution to submit to 
                the Secretary verification of each individual 
                who is enrolled in a course or program of 
                education at the educational institution and is 
                receiving educational assistance under this 
                chapter--
                          (i) not later than such time as the 
                        Secretary determines reasonable after 
                        the date on which the individual is 
                        enrolled; and
                          (ii) not later than such time as the 
                        Secretary determines reasonable after 
                        the last date on which a student is 
                        able to withdraw from the course or 
                        program of education without penalty; 
                        and
                  (B) each individual who is enrolled in a 
                course or program of education and is receiving 
                educational assistance under this chapter to 
                submit to the Secretary verification of such 
                enrollment for each month during which the 
                individual is so enrolled and receiving such 
                educational assistance.
          (2) Form of verification.--Verification under this 
        subsection shall be in an electronic form prescribed by 
        the Secretary.
          (3) Failure to submit verification.--If an individual 
        fails to submit the verification required under 
        paragraph (1)(B) for two consecutive months, the 
        Secretary may not make a monthly housing stipend 
        payment to the individual under this section until the 
        individual submits such verification.
          (4) Exception.--An educational institution is not 
        required to submit verification of an individual under 
        paragraph (1)(A) if--
                  (A) the individual is enrolled in a course or 
                program of education offered by the educational 
                institution on at least a full-time basis 
                before the date on which the individual is able 
                to withdraw from the course or program of 
                education without penalty;
                  (B) the educational institution charges the 
                same amount of tuition and fees for students 
                who are enrolled on a full-time basis and 
                students who are enrolled on a more-than-full-
                time basis; and
                  (C) the individual remains enrolled in the 
                course or program of education after the date 
                on which the individual is able to withdraw 
                from the course or program of education without 
                penalty.
  (m) Limitation on Use of Entitlement for Flight Training.--
(1) Notwithstanding any other provision of this chapter and 
subject to paragraph (2), the maximum total amount payable 
under this chapter for tuition and fees in the case of an 
individual pursuing a degree-granting or non-degree-granting 
program of flight training offered by a public institution of 
higher learning is--
          (A) in the case of an individual who first pursues 
        such a program during the academic year beginning on 
        August 1, 2025, $108,480; and
          (B) in the case of an individual who first pursues 
        such a program during any subsequent academic year, the 
        amount in effect under this subsection for the previous 
        academic year beginning on August 1, as increased by 
        the percentage increase equal to the most recent 
        percentage increase determined under section 3015(h) of 
        this title.
  (2) An individual who receives educational assistance under 
this subsection may not receive more than the maximum total 
amount in effect under paragraph (1) with respect to the 
individual, regardless of when the individual pursues the 
program of flight training or how many such programs the 
individual pursues.
  (3) An individual who receives educational assistance under 
this subsection in an amount equal to less than the maximum 
total amount in effect under paragraph (1) shall be entitled to 
additional educational assistance under this chapter in an 
amount equal to the difference between--
          (A) the amount the individual received under this 
        subsection, and
          (B) the maximum total amount in effect under 
        paragraph (1).

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CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS

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SUBCHAPTER II--STATE APPROVING AGENCIES

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Sec. 3679. Disapproval of courses

  (a)(1) Except as provided by paragraph (2), any course 
approved for the purposes of this chapter which fails to meet 
any of the requirements of this chapter (including failure to 
comply with a risk-based survey under this chapter or secure an 
affirmation of approval by the appropriate State approving 
agency following the survey) shall be immediately disapproved 
by the Secretary or the appropriate State approving agency. An 
educational institution which has its courses disapproved by 
the Secretary or a State approving agency will be notified of 
such disapproval by a certified or registered letter of 
notification and a return receipt secured.
  (2) In the case of a course of education that would be 
subject to disapproval under paragraph (1) solely for the 
reason that the Secretary of Education withdraws the 
recognition of the accrediting agency that accredited the 
course, the Secretary of Veterans Affairs, in consultation with 
the Secretary of Education, and notwithstanding the withdrawal, 
may continue to treat the course as an approved course of 
education under this chapter for a period not to exceed 18 
months from the date of the withdrawal of recognition of the 
accrediting agency, unless the Secretary of Veterans Affairs or 
the appropriate State approving agency determines that there is 
evidence to support the disapproval of the course under this 
chapter. The Secretary shall provide to any veteran enrolled in 
such a course of education notice of the status of the course 
of education.
  (3) In this section, the term ``risk-based survey'' means a 
risk-based survey developed under section 3673A(a) of this 
title.
  (b) Each State approving agency shall notify the Secretary of 
each course which it has disapproved under this section. The 
Secretary shall notify the State approving agency of the 
Secretary's disapproval of any educational institution under 
chapter 31 of this title.
  (c)(1) Notwithstanding any other provision of this chapter 
and subject to paragraphs (3) through (6), the Secretary shall 
disapprove a course of education provided by a public 
institution of higher learning if the institution charges 
tuition and fees for that course for covered individuals who 
are pursuing the course with educational assistance under 
chapter 30, 31, 33, or 35 of this title, or chapter 1606 of 
title 10, while living in the State in which the institution is 
located at a rate that is higher than the rate the institution 
charges for tuition and fees for that course for residents of 
the State in which the institution is located, regardless of 
the covered individual's State of residence.
  (2) For purposes of this subsection, a covered individual is 
any individual as follows:
          (A) A veteran who was discharged or released from a 
        period of not fewer than 90 days of service in the 
        active military, naval, air, or space service.
          (B) An individual who is entitled to assistance 
        under--
                  (i) section 3311(b)(8) of this title; or
                  (ii) section 3319 of this title by virtue of 
                the individual's relationship to--
                          (I) a veteran described in 
                        subparagraph (A); or
                          (II) a member of the uniformed 
                        services described in section 3319(b) 
                        of this title who is serving on active 
                        duty.
          (C) An individual who is entitled to rehabilitation 
        under section 3102(a) of this title.
          (D) An individual who is entitled to assistance under 
        section 3510 of this title.
          (E) An individual who is entitled to assistance under 
        section 16131 of title 10.
  (3) If after enrollment in a course of education that is 
subject to disapproval under paragraph (1) by reason of 
paragraph (2)(A), (2)(B), or (2)(C) a covered individual 
pursues one or more courses of education at the same public 
institution of higher learning while remaining continuously 
enrolled (other than during regularly scheduled breaks between 
courses, semesters or terms) at that institution of higher 
learning, any course so pursued by the covered individual at 
that institution of higher learning while so continuously 
enrolled shall also be subject to disapproval under paragraph 
(1).
  (4)(A) It shall not be grounds to disapprove a course of 
education under paragraph (1) if a public institution of higher 
learning requires a covered individual pursuing a course of 
education at the institution to demonstrate an intent, by means 
other than satisfying a physical presence requirement, to 
establish residency in the State in which the institution is 
located, or to satisfy other requirements not relating to the 
establishment of residency, in order to be charged tuition and 
fees for that course at a rate that is equal to or less than 
the rate the institution charges for tuition and fees for that 
course for residents of the State.
  (B) To the extent feasible, the Secretary shall make publicly 
available on the internet website of the Department a database 
explaining any requirements described in subparagraph (A) that 
are established by a public institution of higher learning for 
an individual to be charged tuition and fees at a rate that is 
equal to or less than the rate the institution charges for 
tuition and fees for residents of the State in which the 
institution is located. The Secretary shall disapprove a course 
of education provided by such an institution that does not 
provide the Secretary--
          (i) an initial explanation of such requirements; and
          (ii) not later than 90 days after the date on which 
        any such requirements change, the updated requirements.
  (5) The Secretary may waive such requirements of paragraph 
(1) as the Secretary considers appropriate.
  (6) Disapproval under paragraph (1) shall apply only with 
respect to educational assistance under chapters 30, 31, 33, 
and 35 of this title, or chapter 1606 of title 10 .
  (d) Notwithstanding any other provision of this chapter, the 
Secretary or the applicable State approving agency shall 
disapprove a course of education described in paragraph (14) or 
(15) of section 3676(c) of this title unless the educational 
institution providing the course of education--
          (1) publicly discloses any conditions or additional 
        requirements, including training, experience, or 
        examinations, required to obtain the license, 
        certification, or approval for which the course of 
        education is designed to provide preparation; and
          (2) makes each disclosure required by paragraph (1) 
        in a manner that the Secretary considers prominent (as 
        specified by the Secretary in regulations prescribed 
        for purposes of this subsection).
  (e)(1) Notwithstanding any other provision of this chapter, 
beginning on August 1, 2019, a State approving agency, or the 
Secretary when acting in the role of the State approving 
agency, shall disapprove a course of education provided by an 
educational institution that has in effect a policy that is 
inconsistent with any of the following:
          (A) A policy that permits any covered individual to 
        attend or participate in the course of education during 
        the period beginning on the date on which the 
        individual provides to the educational institution a 
        certificate of eligibility for entitlement to 
        educational assistance under chapter 31, 33, or 35 of 
        this title, or chapter 1606 of title 10, and ending on 
        the earlier of the following dates:
                  (i) The date on which the Secretary provides 
                payment for such course of education to such 
                institution.
                  (ii) The date that is 90 days after the date 
                on which the educational institution certifies 
                for tuition and fees following receipt from the 
                student such certificate of eligibility.
          (B) A policy that ensures that the educational 
        institution will not impose any penalty, including the 
        assessment of late fees, the denial of access to 
        classes, libraries, or other institutional facilities, 
        or the requirement that a covered individual borrow 
        additional funds, on any covered individual because of 
        the individual's inability to meet his or her financial 
        obligations to the institution due to the delayed 
        disbursement of a payment to be provided by the 
        Secretary under [chapter 31 33, or 35 of this title] 
        chapter 31, 33, or 35 of this title, or chapter 1606 of 
        title 10 .
  (2) For purposes of this subsection, a covered individual is 
any individual who is entitled to educational assistance under 
[chapter 31 33, or 35 of this title] chapter 31, 33, or 35 of 
this title, or chapter 1606 of title 10 .
  (3) The Secretary may waive such requirements of paragraph 
(1) as the Secretary considers appropriate.
  (4) It shall not be inconsistent with a policy described in 
paragraph (1) for an educational institution to require a 
covered individual to take the following additional actions:
          (A) Submit a certificate of eligibility for 
        entitlement to educational assistance not later than 
        the first day of a course of education for which the 
        individual has indicated the individual wishes to use 
        the individual's entitlement to educational assistance.
          (B) Submit a written request to use such entitlement.
          (C) Provide additional information necessary to the 
        proper certification of enrollment by the educational 
        institution.
  (f)(1) Except as provided by paragraph (5), a State approving 
agency, or the Secretary when acting in the role of the State 
approving agency, shall take an action described in paragraph 
(4)(A) if the State approving agency or the Secretary, when 
acting in the role of the State approving agency, determines 
that an educational institution does not perform any of the 
following:
          (A) Prior to the enrollment of a covered individual 
        in a course of education at the educational 
        institution, provide the individual with a form that 
        contains information personalized to the individual 
        that describes--
                  (i) the estimated total cost of the course, 
                including tuition, fees, books, supplies, and 
                any other additional costs;
                  (ii) an estimate of the cost for living 
                expenses for students enrolled in the course;
                  (iii) the amount of the costs under clauses 
                (i) and (ii) that are covered by the 
                educational assistance provided to the 
                individual under chapter 30, 31, 32, 33, or 35 
                of this title, or chapter 1606 or 1607 of title 
                10, as the case may be;
                  (iv) the type and amount of Federal financial 
                aid not administered by the Secretary and 
                financial aid offered by the institution that 
                the individual may qualify to receive;
                  (v) an estimate of the amount of student loan 
                debt the individual would have upon graduation;
                  (vi) information regarding graduation rates;
                  (vii) job-placement rates for graduates of 
                the course, if available;
                  (viii) information regarding the acceptance 
                by the institution of transfer of credits, 
                including military credits;
                  (ix) any conditions or additional 
                requirements, including training, experience, 
                or examinations, required to obtain the 
                license, certification, or approval for which 
                the course of education is designed to provide 
                preparation; and
                  (x) other information to facilitate 
                comparison by the individual of aid packages 
                offered by different educational institutions.
          (B) Not later than 15 days after the date on which 
        the institution (or the governing body of the 
        institution) determines tuition rates and fees for an 
        academic year that is different than the amount being 
        charged by the institution, provide a covered 
        individual enrolled in a course of education at the 
        educational institution with the form under 
        subparagraph (A) that contains updated information.
          (C) Maintain policies to--
                  (i) inform each covered individual enrolled 
                in a course of education at the educational 
                institution of the availability of Federal 
                financial aid not administered by the Secretary 
                and financial aid offered by the institution; 
                and
                  (ii) alert such individual of the potential 
                eligibility of the individual for such 
                financial aid before packaging or arranging 
                student loans or alternative financing programs 
                for the individual.
          (D) Maintain policies to--
                  (i) prohibit the automatic renewal of a 
                covered individual in courses and programs of 
                education; and
                  (ii) ensure that each covered individual 
                approves of the enrollment of the individual in 
                a course.
          (E) Provide to a covered individual enrolled in a 
        course of education at the educational institution with 
        information regarding the requirements to graduate from 
        such course, including, to the maximum extent 
        practicable, information regarding when required 
        classes will be offered and a timeline to graduate.
          (F) With respect to an accredited educational 
        institution, obtain the approval of the accrediting 
        agency for each new course or program of the 
        institution before enrolling covered individuals in 
        such courses or programs if the accrediting agency 
        determines that such approval is appropriate under the 
        substantive change requirements of the accrediting 
        agency regarding the quality, objectives, scope, or 
        control of the institution.
          (G) Maintain a policy that--
                  (i) ensures that members of the Armed Forces, 
                including the reserve components and the 
                National Guard, who enroll in a course of 
                education at the educational institution may be 
                readmitted at such institution if such members 
                are temporarily unavailable or have to suspend 
                such enrollment by reason of serving in the 
                Armed Forces; and
                  (ii) otherwise accommodates such members 
                during short absences by reason of such 
                service.
          (H) Designate an employee of the educational 
        institution to serve as a point of contact for covered 
        individuals and the family of such individuals needing 
        assistance with respect to academic counseling, 
        financial counseling, disability counseling, and other 
        information regarding completing a course of education 
        at such institution, including by referring such 
        individuals and family to the appropriate persons for 
        such counseling and information.
  (2) Except as provided by paragraph (5), a State approving 
agency, or the Secretary when acting in the role of the State 
approving agency, shall take an action described in paragraph 
(4)(A) if the State approving agency, the Secretary, or any 
Federal agency, determines that an educational institution, or 
any person with whom the institution has an agreement to 
provide educational programs, marketing, advertising, 
recruiting or admissions services, does any of the following:
          (A) Carries out deceptive or persistent recruiting 
        techniques, including on military installations, that 
        may include--
                  (i) misrepresentation (as defined in section 
                3696(e)(2)(B) of this title) or payment of 
                incentive compensation;
                  (ii) during any one-month period making three 
                or more unsolicited contacts to a covered 
                individual, including contacts by phone, email, 
                or in-person; or
                  (iii) engaging in same-day recruitment and 
                registration.
          (B) Provides a commission, bonus, or other incentive 
        payment based directly or indirectly on success in 
        securing enrollments or financial aid to any persons or 
        entities engaged in any student recruiting or admission 
        activities or in making decisions regarding the award 
        of student financial assistance, except for the 
        recruitment of foreign students residing in foreign 
        countries who are not eligible to receive Federal 
        student assistance.
          (C) In determining whether a violation of 
        subparagraph (B) has occurred, the State approving 
        agency, or the Secretary when acting in the place of 
        the State approving agency, shall construe the 
        requirements of this paragraph in accordance with the 
        regulations and guidance prescribed by the Secretary of 
        Education under section 487(a)(20) of the Higher 
        Education Act of 1965 (20 U.S.C. 1094(a)(20)).
  (3) A State approving agency, or the Secretary when acting in 
the role of the State approving agency, shall take an action 
described in paragraph (4)(A) if the State approving agency or 
the Secretary, when acting in the role of the State approving 
agency, determines that an educational institution is the 
subject of a negative action made by the accrediting agency 
that accredits the institution, including any of the following:
          (A) Accreditor sanctions.
          (B) Accreditation probation.
          (C) The loss of accreditation or candidacy for 
        accreditation.
  (4)(A) An action described in this subparagraph is any of the 
following:
          (i) Submitting to the Secretary a recommendation that 
        the Secretary publish a warning on the internet website 
        of the Department described in section 3698(c)(2) of 
        this title, or such other similar internet website of 
        the Department, that describes how an educational 
        institution is failing to meet a requirement under 
        paragraph (1), (2), or (3).
          (ii) Suspending the approval of the courses and 
        programs of education offered by the educational 
        institution by disapproving new enrollments of eligible 
        veterans and eligible persons in each course or program 
        of education offered by that educational institution.
          (iii) Revoking the approval of the courses and 
        programs of education offered by the educational 
        institution by disapproving all enrollments of eligible 
        veterans and eligible persons in each course or program 
        of education offered by that educational institution
  (B)(i) The Secretary shall establish guidelines to ensure 
that the actions described in subparagraph (A) are applied in a 
proportional and uniform manner by State approving agencies, or 
the Secretary when acting in the role of the State approving 
agency.
  (ii) Each State approving agency and the Secretary, when 
acting in the role of the State approving agency, shall adhere 
to the guidelines established under clause (i).
  (C) The State approving agency, in consultation with the 
Secretary, or the Secretary when acting in the role of the 
State approving agency, may limit an action described in 
subparagraph (A)(ii) to individuals not enrolled at the 
educational institution before the period described in such 
subparagraph.
  (5)(A) The Secretary may waive the requirements of paragraph 
(1) or waive the requirements of paragraph (2) with respect to 
an educational institution for a one-academic-year period 
beginning in August of the year in which the waiver is made. A 
single educational institution may not receive waivers under 
this paragraph for more than 2 consecutive academic years.
  (B) To be considered for a waiver under this paragraph, an 
educational institution shall submit to the Secretary an 
application prior to the first day of the academic year for 
which the waiver is sought.
  (6) Not later than October 1 of each year, the Secretary 
shall submit to the Committee on Veterans' Affairs of the 
Senate and the Committee on Veterans' Affairs of the House of 
Representatives the following reports:
          (A) A report, which shall be made publicly available, 
        that includes the following:
                  (i) A summary of each action described in 
                paragraph (4)(A) made during the year covered 
                by the report, including--
                          (I) the name of the educational 
                        institution;
                          (II) the type of action taken;
                          (III) the rationale for the action, 
                        including how the educational 
                        institution was not in compliance with 
                        this subsection;
                          (IV) the length of time that the 
                        educational institution was not in such 
                        compliance; and
                          (V) whether the educational 
                        institution was also not in compliance 
                        with this subsection during any of the 
                        2 years prior to the year covered by 
                        the report.
                  (ii) A summary and justifications for the 
                waivers made under paragraph (5) during the 
                year covered by the report, including the total 
                number of waivers each educational institution 
                has received.
          (B) A report containing the recommendations of the 
        Secretary with respect to any legislative actions the 
        Secretary determines appropriate to ensure that this 
        subsection is carried out in a manner that is 
        consistent with the requirements that educational 
        institutions must meet for purposes of other 
        departments or agencies of the Federal Government.
  (7) This subsection shall not apply to an educational 
institution--
          (A) located in a foreign country; or
          (B) that provides to a covered individual consumer 
        information regarding costs of the program of education 
        (including financial aid available to such covered 
        individual) using a form or template developed by the 
        Secretary of Education.
  (8) In this subsection, the term ``covered individual'' means 
an individual who is pursuing a course of education at an 
educational institution under chapter 30, 31, 32, 33, or 35 of 
this title, or chapter 1606 or 1607 of title 10.

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