Page:United States Statutes at Large Volume 94 Part 1.djvu/1165

 PUBLIC LAW 96-342—SEPT. 8, 1980

94 STAT. 1115

AUTHORIZATION TO REPAY LOANS FOR SERVICE IN THE ARMED FORCES

SEC. 902. (a)(1) Subject to the provisions of this section, the Secre- lo use 2i4i tary of Defense may repay any loan made, insured, or guaranteed "*® °^ under part B of the Higher Education Act of 1965, or any loan made under part E of such Act, after October 1, 1975. Repayment of any such loan shall be made on the basis of each complete year of service performed by the borrower. (2) The Secretary of Defense may repay loans described in para- Loan repayment criteria. graph (1) in the case of any person for— (A) service performed (i) as an enlisted member of the Selected Reserve of the Ready Reserve of an Armed Force after September 30, 1980, and (ii) in a Reserve component and military specialty specified by the Secretary of Defense; or (B) service performed on active duty as an enlisted member of the Armed Forces after September 30, 1980, in a military specialty specified by the Secretary of Defense. In the case of service described in clause (A) of the first sentence of this paragraph, the Secretary of Defense may repay a loan described in paragraph (1) only if the person to whom the loan was made performed such service after the loan was made. (b) The portion or amount of a loan that may be repaid under Percentage. subsection (a) is— (1) 15 percent or $500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(A); or (2) 33 Vs percent or $1,500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(B). (c) If a portion of a loan is repaid under this section for any year, interest on the remainder of such loan shall accrue and be paid in the same manner as is otherwise required. (d) Nothing in this section shall be construed to authorize refunding any repayment of a loan. (e) Any individual who transfers from service described in clause (A) or (B) of subsection (a)(1) of this section to service described in the other clause of such subsection during a year shall be eligible to have repaid a portion of such loan determined by giving appropriate fractional credit for each portion of the year so served, in accordance with regulations of the Secretary concerned. (0 The Secretary of Defense shall, by regulation, prescribe a Fund allocation schedule for the allocation of funds made available to carry out the schedule. provisions of this section during any year for which funds are not sufficient to pay the sum of the amounts eligible for repayment under subsection (a). (g) The authority provided under this section shall apply only in the case of persons who enlist or reenlist in the Selected Reserve of the Ready Reserve of an Armed Force or enlist or reenlist for service on active duty after September 30, 1980, and before October 1, 1981. EDUCATIONAL ASSISTANCE PILOT PROGRAM

SEC. 903. (a)(1) As a means of encouraging enlistments and reenlistments in the Armed Forces, the Secretary of Defense, on behalf of any person who enlists or reenlists in the Armed Forces after September 30, 1980, and before October 1, 1981, and who elects or has elected to participate in the Post-Vietnam Era Veterans' Educational Assistance Program provided for under chapter 32 of title 38, United States Code, may pay the monthly contribution otherwise deducted from the military pay of such person. No deduction may be made under section

10 USC 2141 note.

38 USC 1601 et seq.

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