This bill amends title 38 of the United States Code to permit individuals eligible for Post-9/11 educational assistance to utilize those benefits for the repayment of federal student loans . Specifically, it allows recipients to apply their educational assistance amounts towards the outstanding principal and interest of their federal student loans, which are defined as those made, insured, or guaranteed under Title IV of the Higher Education Act of 1965. This new authority aims to provide greater flexibility for veterans in managing their educational and financial obligations. The legislation establishes a maximum annual repayment amount, beginning at $15,900 for fiscal year 2026 , with subsequent annual adjustments tied to Social Security benefit increases. Monthly payments, chosen by the individual, cannot exceed one-twelfth of the annual maximum, and the total duration of these payments is capped at 36 months . This specific student loan repayment benefit is non-transferable to other individuals, and payments are made directly by the Secretary of Veterans Affairs to the loan lender.
Referred to the House Committee on Veterans' Affairs.
Referred to the Subcommittee on Economic Opportunity.
Armed Forces and National Security
Government lending and loan guaranteesHigher educationStudent aid and college costsVeterans' education, employment, rehabilitation
Modern GI Bill Act
USA119th CongressHR-967| House
| Updated: 3/5/2025
This bill amends title 38 of the United States Code to permit individuals eligible for Post-9/11 educational assistance to utilize those benefits for the repayment of federal student loans . Specifically, it allows recipients to apply their educational assistance amounts towards the outstanding principal and interest of their federal student loans, which are defined as those made, insured, or guaranteed under Title IV of the Higher Education Act of 1965. This new authority aims to provide greater flexibility for veterans in managing their educational and financial obligations. The legislation establishes a maximum annual repayment amount, beginning at $15,900 for fiscal year 2026 , with subsequent annual adjustments tied to Social Security benefit increases. Monthly payments, chosen by the individual, cannot exceed one-twelfth of the annual maximum, and the total duration of these payments is capped at 36 months . This specific student loan repayment benefit is non-transferable to other individuals, and payments are made directly by the Secretary of Veterans Affairs to the loan lender.