Bill Details
HR.967 - 119th Congress
Status
Latest action
2025-03-05 - Referred to the Subcommittee on Economic Opportunity.
Introduced Date
2025-02-04
Policy Area
Armed Forces and National Security
Committees
View committees (1)
8
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would let some veterans use their Post-9/11 GI Bill education benefits to help pay down their own federal student loans instead of only using those benefits for school costs. The money could be used to cover principal and interest on the loan, and the payments would go directly to the loan lender. The bill sets a yearly limit on how much can be used this way, limits the benefit to up to 36 months of payments, and says the assistance cannot be transferred to someone else.
- For fiscal year 2026, the most that can be used for student loan repayment would be $15,900 per year.
- After 2026, that yearly limit would rise based on the same cost-of-living increase used for some Social Security benefits.
- Payments would be made monthly, and each month’s amount could not be more than one-twelfth of the yearly cap.
- The benefit would apply only to federal student loans made, insured, or guaranteed under federal higher education law.
Official Summaries
Modern GI Bill Act
This bill authorizes individuals who are entitled to educational assistance under the Post-9/11 GI Bill to apply amounts of such assistance to repay federal student loans for up to 36 months.
The bill sets a cap and annual cost-of-living increases for the amount of educational assistance that may be paid to an individual under this bill during FY2026 and the following years.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 967 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 967
To amend title 38, United States Code, to allow individuals who are
entitled to Post-9/11 educational assistance to use such assistance to
repay Federal student loans.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 4, 2025
Mr. Steube introduced the following bill; which was referred to the
Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To amend title 38, United States Code, to allow individuals who are
entitled to Post-9/11 educational assistance to use such assistance to
repay Federal student loans.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Modern GI Bill Act''.
SEC. 2. USE OF POST-9/11 EDUCATIONAL ASSISTANCE TO REPAY FEDERAL
STUDENT LOANS.
(a) Authority.--Subchapter II of chapter 33 of title 38, United
States Code, is amended by inserting after section 3320 the following
new section:
``Sec. 3320A. Use of educational assistance benefits for the repayment
of Federal student loans
``(a) Use of Benefits.--Notwithstanding any other provision of this
chapter, an individual who is entitled to educational assistance for
tuition or fees under this subchapter may apply amounts of such
educational assistance to repay some or all of the outstanding balance
of principal and interest due on a Federal student loan to the
individual.
``(b) Maximum Annual Amount; Annual Adjustment.--(1) Payment of
educational assistance under this section to an individual during
fiscal year 2026 may not exceed $15,900.
``(2) In each fiscal year after fiscal year 2026, the dollar amount
in paragraph (1) shall be increased by the same percentage as the
percentage by which benefit amounts payable under title II of the
Social Security Act (42 U.S.C. 401 et seq.) are increased effective
December 1 of that year as a result of a determination under section
215(i) of such Act (42 U.S.C. 415(i)).
``(c) Monthly Payments: Maximum Amount; Maximum Number.--(1) The
Secretary shall make monthly payments under this section in such
amounts as an individual who is entitled to educational assistance for
tuition or fees under this subchapter may elect for the repayment of a
Federal student loan to that individual. No such amount may exceed one-
twelfth of the maximum annual amount calculated under subsection
(b)(1).
``(2) The total number of months of payments for the repayment of a
Federal student loan to an individual under this section may not exceed
36 months.
``(d) Benefit Non-Transferable.--Notwithstanding section 3319 of
this title, an individual who is entitled to educational assistance
under this section may not transfer such assistance to another
individual.
``(e) Eligible Payees.--The Secretary shall make payments of
educational assistance under this section directly to the lender of the
Federal student loan of the individual who is entitled to educational
assistance under this section.
``(f) Arrangements To Make Payments; Regulations.--The Secretary
shall enter into such arrangements, and shall prescribe such
regulations, that the Secretary determines necessary to carry out this
section.
``(g) Federal Student Loan Defined.--In this section, the term
`Federal student loan' means any loan made, insured, or guaranteed
under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et
seq.).''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
3320 the following new item:
``3320A. Use of educational assistance benefits for the repayment of
Federal student loans.''.
(c) Effective Date.--The amendments made by this section shall
apply to educational assistance paid for months beginning on or after
the date of the enactment of this Act.
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