TITLE 38 - US CODE - CHAPTER 32 - POST-VIETNAM ERA VETERANS EDUCATIONAL ASSISTANCE

TITLE 38 - US CODE - SUBCHAPTER I - PURPOSE; DEFINITIONS

38 USC 3201 - Purpose

It is the purpose of this chapter
(1)  to provide educational assistance to those men and women who enter the Armed Forces after December 31, 1976, and before July 1, 1985,
(2)  to assist young men and women in obtaining an education they might not otherwise be able to afford, and
(3)  to promote and assist the all volunteer military program of the United States by attracting qualified men and women to serve in the Armed Forces.

38 USC 3202 - Definitions

For the purposes of this chapter
(1) 
(A) The term eligible veteran means any veteran who is not eligible for educational assistance under chapter 34 of this title and who
(i)  entered military service on or after January 1, 1977, and before July 1, 1985, served on active duty for a period of more than 180 days commencing on or after January 1, 1977, and was discharged or released therefrom under conditions other than dishonorable, or
(ii)  entered military service on or after January 1, 1977, and before July 1, 1985, and was discharged or released from active duty after January 1, 1977, for a service-connected disability.
(B) The requirement of discharge or release, prescribed in subparagraph (A), shall be waived in the case of any participant who has completed his or her first obligated period of active duty (which began after December 31, 1976) or 6 years of active duty (which began after December 31, 1976), whichever period is less.
(C) For the purposes of subparagraphs (A) and (B), the term active duty does not include any period during which an individual
(i)  was assigned full time by the Armed Forces to a civilian institution for a course of education which was substantially the same as established courses offered to civilians,
(ii)  served as a cadet or midshipman at one of the service academies, or
(iii)  served under the provisions of section 511 (d)1 of title 10 pursuant to an enlistment in the Army National Guard or the Air National Guard, or as a Reserve for service in the Army Reserve, Navy Reserve, Air Force Reserve, Marine Corps Reserve, or Coast Guard Reserve.
(D) 
(i) The requirement of ineligibility for educational assistance under chapter 34 of this title, prescribed in subparagraph (A), shall be waived in the case of a veteran described in division (ii) of this subparagraph who elects to receive benefits under this chapter instead of assistance under such chapter 34. A veteran who makes such an election shall be ineligible for assistance under such chapter. Such an election is irrevocable.
(ii) A veteran referred to in division (i) of this subparagraph is a veteran who before January 1, 1977, performed military service described in subparagraph (C)(iii), is entitled under section 3452 (a)(3)(C) of this title to have such service considered to be active duty for the purposes of chapter 34 of this title, and is eligible for assistance under such chapter only by reason of having such service considered to be active duty.
(2) The term program of education
(A) has the meaning given such term in section 3452 (b) of this title, and
(B) includes
(i)  a full-time program of apprenticeship or other on-job training approved as provided in clause (1) or (2), as appropriate, of section 3687 (a) of this title, and
(ii)  in the case of an individual who is not serving on active duty, a cooperative program (as defined in section 3482 (a)(2) of this title).
(3) The term participant is a person who is participating in the educational benefits program established under this chapter.
(4) The term educational institution has the meaning given such term in section 3452 (c) of this title.
(5) The term training establishment has the meaning given such term in section 3452 (e) of this title.
[1] See References in Text note below.

TITLE 38 - US CODE - SUBCHAPTER II - ELIGIBILITY; CONTRIBUTIONS; AND MATCHING FUND

38 USC 3221 - Eligibility

(a) Each person entering military service on or after January 1, 1977, and before July 1, 1985, shall have the right to enroll in the educational benefits program provided by this chapter (hereinafter in this chapter referred to as the program except where the text indicates otherwise) at any time during such persons service on active duty before July 1, 1985. When a person elects to enroll in the program, such person must participate for at least 12 consecutive months before disenrolling or suspending participation.
(b) The requirement for 12 consecutive months of participation required by subsection (a) of this section shall not apply when
(1)  the participant suspends participation or disenrolls from the program because of personal hardship as defined in regulations issued jointly by the Secretary and the Secretary of Defense, or
(2)  the participant is discharged or released from active duty.
(c) A participant shall be permitted to suspend participation or disenroll from the program at the end of any 12-consecutive-month period of participation. If participation is suspended, the participant shall be eligible to make additional contributions to the program under such terms and conditions as shall be prescribed by regulations issued jointly by the Secretary and the Secretary of Defense.
(d) If a participant disenrolls from the program, such participant forfeits any entitlement to benefits under the program except as provided in subsection (e) of this section. A participant who disenrolls from the program is eligible for a refund of such participants contributions as provided in section 3223 of this title.
(e) A participant who has disenrolled may be permitted to reenroll in the program under such conditions as shall be prescribed jointly by the Secretary and the Secretary of Defense.
(f) An individual who serves in the Selected Reserve may not receive credit for such service under both the program established by this chapter and the program established by chapter 106 of title 10 but shall elect (in such form and manner as the Secretary of Veterans Affairs may prescribe) the program to which such service is to be credited.

38 USC 3222 - Contributions; matching fund

(a) Except as provided in subsections (c) and (d) of this section, each person electing to participate in the program shall agree to have a monthly deduction made from such persons military pay. Such monthly deduction shall be in any amount not less than $25 nor more than $100 except that the amount must be divisible by 5. Any such amount contributed by the participant or contributed by the Secretary of Defense pursuant to subsection (c) of this section shall be deposited in a deposit fund account entitled the Post-Vietnam Era Veterans Education Account (hereinafter in this chapter referred to as the fund) to be established in the Treasury of the United States. Contributions made by the participant shall be limited to a maximum of $2,700.
(b) Except as otherwise provided in this chapter, each monthly contribution made by a participant under subsection (a) shall entitle the participant to matching funds from the Department of Defense at the rate of $2 for each $1 contributed by the participant.
(c) The Secretary of Defense is authorized to contribute to the fund of any participant such contributions as the Secretary of Defense deems necessary or appropriate to encourage persons to enter or remain in the Armed Forces, including contributions in lieu of, or to reduce the amount of, monthly deductions under subsection (a) of this section. The Secretary of Defense is authorized to issue such rules and regulations as the Secretary of Defense deems necessary or appropriate to implement the provisions of this subsection.
(d) Subject to the maximum contribution prescribed by subsection (a) of this section, a participant shall be permitted, while serving on active duty, to make a lump-sum contribution to the fund. A lump-sum contribution to the fund by a participant shall be in addition to or in lieu of monthly deductions made from such participants military pay and shall be considered, for the purposes of paragraph (2) of section 3231 (a) of this title, to have been made by monthly deductions from such participants military pay in the amount of $100 per month or in such lesser amount as may be specified by such participant pursuant to regulations issued jointly by the Secretary of Defense and the Secretary.
(e) Any amount transferred to the Secretary from the Secretary of a military department under an interagency agreement for the administration by the Department of Veterans Affairs of an educational assistance program established by the Secretary of Defense under chapter 107 of title 10 may be deposited into and disbursed from the fund for the purposes of such program.

38 USC 3223 - Refunds of contributions upon disenrollment

(a) Contributions made to the program by a participant may be refunded only after the participant has disenrolled from the program or as provided in section 3224 of this title.
(b) If a participant disenrolls from the program prior to discharge or release from active duty, such participants contributions will be refunded on the date of the participants discharge or release from active duty or within 60 days of receipt of notice by the Secretary of the participants discharge or disenrollment, except that refunds may be made earlier in instances of hardship or other good reason as prescribed in regulations issued jointly by the Secretary and the Secretary of Defense.
(c) If a participant disenrolls from the program after discharge or release from active duty, the participants contributions shall be refunded within 60 days of receipt of an application for a refund from the participant.
(d) In the event the participant
(1)  dies while on active duty,
(2)  dies after discharge or release from active duty, or
(3)  disenrolls or is disenrolled from the program without having utilized any entitlement, the participant may have accrued under the program, or, in the event the participant utilizes part of such participants entitlement and disenrolls or is disenrolled from the program, the amount contributed by the Secretary of Defense under the authority of section 3222 (c) of this title remaining in the fund shall be refunded to such Secretary.

38 USC 3224 - Death of participant

In the event of a participants death, the amount of such participants unused contributions to the fund shall be paid to the living person or persons first listed below:
(1) The beneficiary or beneficiaries designated by such participant under such participants Servicemembers Group Life Insurance policy.
(2) The surviving spouse of the participant.
(3) The surviving child or children of the participant, in equal shares.
(4) The surviving parent or parents of the participant, in equal shares.

If there is no such person living, such amount shall be paid to such participants estate.

38 USC 3225 - Discharge or release under conditions which would bar the use of benefits

If a participant in the program is discharged or released from active duty under dishonorable conditions, such participant is automatically disenrolled and any contributions made by such participant shall be refunded to such participant on the date of such participants discharge or release from active duty or within 60 days from receipt of notice by the Secretary of such discharge or release, whichever is later.

TITLE 38 - US CODE - SUBCHAPTER III - ENTITLEMENT; DURATION

38 USC 3231 - Entitlement; loan eligibility

(a) 
(1) Subject to the provisions of section 3695 of this title limiting the aggregate period for which any person may receive assistance under two or more programs of educational or vocational assistance administered by the Department of Veterans Affairs, a participant shall be entitled to a maximum of 36 monthly benefit payments (or their equivalent in the event of part-time benefits).
(2) Except as provided in paragraph (5)(E) of this subsection and in subsection (e) of this section and section 3233 of this title and subject to section 3241 of this title, the amount of the monthly payment to which any eligible veteran is entitled shall be ascertained by
(A)  adding all contributions made to the fund by the eligible veteran,
(B)  multiplying the sum by 3,
(C)  adding all contributions made to the fund for such veteran by the Secretary of Defense, and
(D)  dividing the sum by the lesser of 36 or the number of months in which contributions were made by such veteran.
(3) Payment of benefits under this chapter may be made only for periods of time during which an eligible veteran is actually enrolled in and pursuing an approved program of education and, except as provided in paragraph (4), only after an eligible veteran has been discharged or released from active duty.
(4) Payment of benefits under this chapter may be made after a participant has completed his or her first obligated period of active duty (which began after December 31, 1976), or 6 years of active duty (which began after December 31, 1976), whichever period is less.
(5) 
(A) Notwithstanding any other provision of this chapter or chapter 36 of this title, any payment of an educational assistance allowance described in subparagraph (B) of this paragraph
(i) shall not be charged against the entitlement of any eligible veteran under this chapter; and
(ii) shall not be counted toward the aggregate period for which section 3695 of this title limits an individuals receipt of assistance.
(B) The payment of an educational assistance allowance referred to in subparagraph (A) of this paragraph is any payment of a monthly benefit under this chapter to an eligible veteran for pursuit of a course or courses under this chapter if the Secretary finds that the eligible veteran
(i) in the case of a person not serving on active duty, had to discontinue such course pursuit as a result of being ordered to serve on active duty under section 688, 12301 (a), 12301 (d), 12301 (g), 12302, or 12304 of title 10; or
(ii) in the case of a person serving on active duty, had to discontinue such course pursuit as a result of being ordered to a new duty location or assignment or to perform an increased amount of work; and
(iii) failed to receive credit or training time toward completion of the individuals approved educational, professional, or vocational objective as a result of having to discontinue, as described in clause (i) or (ii) of this subparagraph, his or her course pursuit.
(C) The period for which, by reason of this subsection, an educational assistance allowance is not charged against entitlement or counted toward the applicable aggregate period under section 3695 of this title shall not exceed the portion of the period of enrollment in the course or courses for which the individual failed to receive credit or with respect to which the individual lost training time, as determined under subparagraph (B)(iii) of this paragraph.
(D) The amount in the fund for each eligible veteran who received a payment of an educational assistance allowance described in subparagraph (B) of this paragraph shall be restored to the amount that would have been in the fund for the veteran if the payment had not been made. For purposes of carrying out the previous sentence, the Secretary of Defense shall deposit into the fund, on behalf of each such veteran, an amount equal to the entire amount of the payment made to the veteran.
(E) In the case of a veteran who discontinues pursuit of a course or courses as described in subparagraph (B) of this paragraph, the formula for ascertaining the amount of the monthly payment to which the veteran is entitled in paragraph (2) of this subsection shall be implemented as if
(i) the payment made to the fund by the Secretary of Defense under subparagraph (D) of this paragraph, and
(ii) any payment for a course or courses described in subparagraph (B) of this paragraph that was paid out of the fund,

had not been made or paid.

(b) Any enlisted member of the Armed Forces participating in the program shall be eligible to enroll in a course, courses, or program of education for the purpose of attaining a secondary school diploma (or an equivalency certificate), as authorized by section 3491 (a) of this title, during the last six months of such members first enlistment and at any time thereafter.
(c) When an eligible veteran is pursuing a program of education under this chapter by correspondence, such eligible veterans entitlement shall be charged at the rate of 1 months entitlement for each month of benefits paid to the eligible veteran (computed on the basis of the formula provided in subsection (a)(2) of this section).
(d) 
(1) Subject to the provisions of paragraph (2) of this subsection, the amount of the educational assistance benefits paid to an eligible veteran who is pursuing a program of education under this chapter while incarcerated in a Federal, State, local, or other penal institution or correctional facility for conviction of a felony may not exceed the lesser of
(A)  such amount as the Secretary determines, in accordance with regulations which the Secretary shall prescribe, is necessary to cover the cost of established charges for tuition and fees required of similarly circumstanced nonveterans enrolled in the same program and the cost of necessary supplies, books, and equipment, or
(B)  the applicable monthly benefit payment otherwise prescribed in this section or section 3233 of this title. The amount of the educational assistance benefits payable to a veteran while so incarcerated shall be reduced to the extent that the tuition and fees of the veteran for any course are paid under any Federal program (other than a program administered by the Secretary) or under any State or local program.
(2) Paragraph (1) of this subsection shall not apply in the case of any veteran who is pursuing a program of education under this chapter while residing in a halfway house or participating in a work-release program in connection with such veterans conviction of a felony.
(e) 
(1) Subject to subsection (a)(1) of this section, each individual who is pursuing a program of education consisting exclusively of flight training approved as meeting the requirements of section 3241 (b) of this title shall be paid educational assistance under this chapter in the amount equal to 60 percent of the established charges for tuition and fees which similarly circumstanced nonveterans enrolled in the same flight course are required to pay.
(2) No payment may be paid under this chapter to an individual for any month during which such individual is pursuing a program of education consisting exclusively of flight training until the Secretary has received from that individual and the institution providing such training a certification of the flight training received by the individual during that month and the tuition and other fees charged for that training.
(3) The entitlement of an eligible veteran pursuing a program of education described in paragraph (1) of this subsection shall be charged at the rate of one month for each amount of educational assistance paid which is equal to the monthly benefit otherwise payable to such veteran (computed on the basis of the formula provided in subsection (a)(2) of this section).
(4) The number of solo flying hours for which an individual may be paid an educational assistance allowance under this subsection may not exceed the minimum number of solo flying hours required by the Federal Aviation Administration for the flight rating or certification which is the goal of the individuals flight training.

38 USC 3232 - Duration; limitations

(a) 
(1) Except as provided in paragraphs (2) and (3), and subject to paragraph (4), of this subsection, educational assistance benefits shall not be afforded an eligible veteran under this chapter more than 10 years after the date of such veterans last discharge or release from active duty.
(2) 
(A) If any eligible veteran was prevented from initiating or completing such veterans chosen program of education during the delimiting period determined under paragraph (1) of this subsection because of a physical or mental disability which was not the result of such veterans own willful misconduct, such veteran shall, upon application made in accordance with subparagraph (B) of this paragraph, be granted an extension of the applicable delimiting period for such length of time as the Secretary determines, from the evidence, that such veteran was so prevented from initiating or completing such program of education.
(B) An extension of the delimiting period applicable to an eligible veteran may be granted under subparagraph (A) of this paragraph by reason of the veterans mental or physical disability only if the veteran submits an application for such extension to the Secretary within one year after
(i)  the last date of the delimiting period otherwise applicable to the veteran under paragraph (1) of this subsection, or
(ii)  the termination date of the period of the veterans mental or physical disability, whichever is later.
(3) When an extension of the applicable delimiting period is granted an eligible veteran under paragraph (2) of this subsection, the delimiting period with respect to such veteran shall again begin to run on the first day after such veterans recovery from such disability on which it is reasonably feasible, as determined in accordance with regulations prescribed by the Secretary, for such veteran to initiate or resume pursuit of a program of education with educational assistance under this chapter.
(4) For purposes of paragraph (1) of this subsection, a veterans last discharge or release from active duty shall not include any discharge or release from a period of active duty of less than 90 days of continuous service unless the individual involved is discharged or released for a service-connected disability, for a medical condition which preexisted such service and which the Secretary determines is not service connected, for hardship, or as a result of a reduction in force as described in section 3011 (a)(1)(A)(ii)(III) of this title.
(b) 
(1) In the event that an eligible veteran has not utilized any or all of such veterans entitlement by the end of the delimiting period applicable to the veteran under subsection (a) of this section and at the end of one year thereafter has not filed a claim for utilizing such entitlement, such eligible veteran is automatically disenrolled.
(2) 
(A) Any contributions which were made by a veteran disenrolled under paragraph (1) of this subsection and remain in the fund shall be refunded to the veteran after notice of disenrollment is transmitted to the veteran and the veteran applies for such refund.
(B) If no application for refund of contributions under subparagraph (A) of this paragraph is received from a disenrolled veteran within one year after the date the notice referred to in such subparagraph is transmitted to the veteran, it shall be presumed that the veterans whereabouts is unknown and the funds shall be transferred to the Secretary for payments for entitlement earned under subchapter II of chapter 30.
(c) 
(1) Subject to paragraph (3), the amount of educational assistance payable under this chapter for a licensing or certification test described in section 3452 (b) of this title is the lesser of $2,000 or the fee charged for the test.
(2) The number of months of entitlement charged in the case of any individual for such licensing or certification test is equal to the number (including any fraction) determined by dividing the total amount paid to such individual for such test by the full-time monthly institutional rate of the educational assistance allowance which, except for paragraph (1), such individual would otherwise be paid under this chapter.
(3) In no event shall payment of educational assistance under this subsection for such a test exceed the amount of the individuals available entitlement under this chapter.
(d) 
(1) Subject to paragraph (3), the amount of educational assistance payable under this chapter for a national test for admission or national test providing an opportunity for course credit at institutions of higher learning described in section 3452 (b) of this title is the amount of the fee charged for the test.
(2) The number of months of entitlement charged in the case of any individual for a test described in paragraph (1) is equal to the number (including any fraction) determined by dividing the total amount of educational assistance paid such individual for such test by the full-time monthly institutional rate of educational assistance, except for paragraph (1), such individual would otherwise be paid under this chapter.
(3) In no event shall payment of educational assistance under this subsection for a test described in paragraph (1) exceed the amount of the individuals available entitlement under this chapter.

38 USC 3233 - Apprenticeship or other on-job training

(a) Except as provided in subsection (b) of this section, the amount of the monthly benefit payment to an individual pursuing a full-time program of apprenticeship or other on-job training under this chapter is
(1) for each of the first six months of the individuals pursuit of such program, 75 percent of the monthly benefit payment otherwise payable to such individual under this chapter;
(2) for each of the second six months of the individuals pursuit of such program, 55 percent of such monthly benefit payment; and
(3) for each of the months following the first 12 months of the individuals pursuit of such program, 35 percent of such monthly benefit payment.
(b) 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 the monthly benefit payment payable under this chapter to the individual shall be limited to the same proportion of the applicable rate determined under subsection (a) of this section as the number of hours worked during such month, rounded to the nearest eight hours, bears to 120 hours.
(c) For each month that an individual is paid a monthly benefit payment under this chapter, the individuals entitlement under this chapter shall be charged at the rate of
(1) 75 percent of a month in the case of payments made in accordance with subsection (a)(1) of this section;
(2) 55 percent of a month in the case of payments made in accordance with subsection (a)(2) of this section; and
(3) 35 percent of a month in the case of payments made in accordance with subsection (a)(3) of this section.
(d) For any month in which an individual fails to complete 120 hours of training, the entitlement otherwise chargeable under subsection (c) of this section shall be reduced in the same proportion as the monthly benefit payment payable is reduced under subsection (b) of this section.

38 USC 3234 - Tutorial assistance

(a) An individual entitled to benefits under this chapter shall also be entitled to the benefits provided an eligible veteran under section 3492 of this title, subject to the conditions applicable to an eligible veteran under such section. Any amount paid to an individual under this section shall be in addition to the amount of other benefits paid under this chapter.
(b) An individuals period of entitlement to educational assistance under this chapter shall be charged only with respect to the amount of educational assistance paid to the individual under this section in excess of $600.
(c) An individuals period of entitlement to educational assistance under this chapter shall be charged at the rate of one month for each amount of assistance paid to the individual under this section in excess of $600 that is equal to the amount of monthly educational assistance the individual is otherwise eligible to receive for full-time pursuit of an institutional course under this chapter.
(d) Payments of benefits under this section shall be made
(1) in the case of the first $600 of such benefits paid to an individual, from funds appropriated, or otherwise available, to the Department of Veterans Affairs for the payment of readjustment benefits; and
(2) in the case of payments to an individual for such benefits in excess of $600, from the fund from contributions made to the fund by the veteran and by the Secretary of Defense in the same proportion as these contributions are used to pay other educational assistance to the individual under this chapter.

TITLE 38 - US CODE - SUBCHAPTER IV - ADMINISTRATION

38 USC 3241 - Requirements

(a) 
(1) The provisions of sections 3470, 3471, 3474, 3476, 3483, 3485, and 3491 (a)(1) of this title and the provisions of chapter 36 of this title (with the exception of section 3687) shall be applicable with respect to individuals who are pursuing programs of education while serving on active duty.
(2) The Secretary may, without regard to the application to this chapter of so much of the provisions of section 3471 of this title as prohibit the enrollment of an eligible veteran in a program of education in which the veteran is already qualified, and pursuant to such regulations as the Secretary shall prescribe, approve the enrollment of such individual in refresher courses (including courses which will permit such individual to update knowledge and skills or be instructed in the technological advances which have occurred in the individuals field of employment during and since the period of such veterans active military service), deficiency courses, or other preparatory or special education or training courses necessary to enable the individual to pursue an approved program of education.
(b) The Secretary may approve the pursuit of flight training (in addition to a course of flight training that may be approved under section 3680A (b) of this title) by an individual entitled to basic educational assistance under this chapter if
(1) such training is generally accepted as necessary for the attainment of a recognized vocational objective in the field of aviation;
(2) the individual possesses a valid pilot certificate and meets, on the day the individual begins a course of flight training, the medical requirements necessary for a commercial pilot certificate; and
(3) the flight school courses meet Federal Aviation Administration standards for such courses and are approved by the Federal Aviation Administration and the State approving agency.
(c) The provisions of sections 3470, 3471, 3474, 3476, 3483, and 3491 (a) (other than clause (1)) of this title and the provisions of chapter 36 of this title (with the exception of section 3687) shall be applicable with respect to individuals who are pursuing programs of education following discharge or release from active duty.

38 USC 3242 - Vacant]

38 USC 3243 - Deposits; reports

Deductions made by the Department of Defense from the military pay of any participant shall be promptly transferred to the Secretary for deposit in the fund. The Secretary of Defense shall also submit to the Secretary a report each month showing the name, service number, and the amount of the deduction made from the military pay of each initial enrollee, any contribution made by the Secretary of Defense pursuant to section 3222 (c) of this title, as well as any changes in each participants enrollment and/or contribution. The report shall also include any additional information the Secretary and the Secretary of Defense deem necessary to administer this program. The Secretary shall maintain accounts showing contributions made to the fund by individual participants and by the Secretary of Defense as well as disbursements made from the fund in the form of benefits.