accelerated payment

accelerated payment Sec. 201. (a) Chapter 34 of title 38, United States Code, is amended by inserting after section 1682 the following new section: “§ 1682A. Accelerated payment of educational assistance allowances “(a) The Administrator, in accordance with the provisions of this section and section 1798(f) of this title and regulations which the Administrator shall prescribe under such sections, shall accelerate the payment of educational assistance allowances (hereinafter in this section referred to as ‘accelerated payment’) to an eligible, veteran who makes application and is eligible therefor and proportionally reduce the educational entitlement of such veteran under section 1661 of this title. “(b) An eligible veteran who makes application for accelerated payment shall be eligible for such payment in connection with each school term for which such veteran applies for such accelerated payment only if— “(1) such veteran was enrolled as a full-time student during such school term; “(2) such veteran was entitled to an educational assistance allowance under section 1661 during such school term; “(3) such veteran has received, after the date of enactment of this section, a loan for such school term pursuant to section 1798 of this title; “(4) the combined amount of tuition and fees of the educational institution in which such veteran was enrolled was in excess of $700 for such school term: “(5) the educational institution in which such veteran was enrolled has certified to the Administrator that such veteran has satisfactorily completed the program of education and attained the predetermined and identified educational, professional, or vocational objective which such veteran has been pursuing and has on such basis been awarded by such institution the appropriate educational degree, diploma, or certificate signifying such completion and attainment; “(6) such application was filed with the Administrator within 180 days after the date (A) on which the degree, diploma, or certificate described in clause (5) of this subsection has been awarded to such veteran, or (B) on which the appropriate State or local governmental unit establishes a program described in clause (8) of this subsection, whichever date is the later; “(7) the educational institution in which such veteran was enrolled has certified for such school term that 35 per centum or less (or such other per centum as the Administrator prescribes pursuant to section 1673(d) of this title) of the total number of students enrolled in such institution (computed separately for the main campus and any branch or extension of such institution pursuant to regulations prescribed by the Administrator under section 1673(d) of this title) were students receiving educational 91 STAT. 1437assistance benefits under this chapter or chapter 31, 32, 35, or 36 of this title; and “(8) the State (or local governmental unit with jurisdiction over the geographical area, or both such State and such unit) in which is located the educational institution in which such veteran was enrolled pays to the Veterans’ Administration (for deposit in the Veterans’ Administration Education Loan Fund established by section 1799 of this title) on such veteran’s behalf an amount not more than the amount of accelerated payment which the Administrator is authorized to make on behalf of such veteran under this section, pursuant to a program established, within five years after the date of enactment of this section, by such State (or unit or both) to match the maximum or a lesser amount of the accelerated payment which the Administrator is authorized to make to any eligible veteran under this section, except that such State (or unit) may limit such program to veterans who are bona fide residents of such State (or unit). “(c) Accelerated payments made under this section by the Administrator and matching amounts paid to the Administrator by a State or local governmental unit, as described in subsection (b) (8) of this section, shall constitute a collection of principal on loans made under subchapter III of chapter 36 of this title and shall be deposited in the Veterans’ Administration Education Loan Fund established by section 1799 of this title. The Administrator shall promptly notify each veteran on whose behalf such a principal collection and deposit has been made of the amount by which such collection and deposit reduces the principal repayment obligation of such veteran. “(d) In no event may the amount of accelerated payment made by the Administrator in connection with any school term exceed (1) an amount equal to the educational assistance allowance to which such veteran was otherwise entitled under section 1682 of this title for such school term, (2) an amount equal to 33⅓ per centum of the amount by which the expenses of tuition and fees are in excess of $700 for such school term, (3) an amount equal to 33⅓ per centum of the amount by which the amount of the outstanding obligation of such veteran under any loan made pursuant to section 1798 of this title is in excess of $700, or (4) the amount which the State (or local governmental unit or both) concerned pays to the Administrator to match the accelerated payment to be made by the Administrator on behalf of such veteran, whichever is the least amount. “(e) As used in this section, the term ‘school term’ means— “(1) in the case of an institution of higher learning operating on a quarter system, three such consecutive quarters; “(2) in the case of an institution of higher learning operating on a semester system, two such consecutive semesters; or “(3) in the case of an educational institution not an institution of higher learning, or, in the case of an institution of higher learning not operating on a quarter or semester system, any time division, approved by the Administrator, of a program of education within which segments of the program are completed.”. (b) Chapter 35 of title 38, United States Code, is amended by inserting after section 1737 the following new section: “§ 1738. Accelerated payment of educational assistance allowances “An eligible person shall be entitled to an accelerated payment of educational assistance allowances pursuant to the provisions of section 1682A of this title.”. 91 STAT. 1438 (c) (1) The table of sections at the beginning of chapter 34 of such title is amended by inserting “1682A. Accelerated payment of educational assistance allowances.” below “1682. Computation of educational assistance allowances.”. (2) The table of sections at the beginning of chapter 35 of such title is amended by inserting “1738. Accelerated payment of educational assistance allowances.” below “1737. Education loans.”. (d) The Administrator of Veterans’ Affairs, not later than 60 days after the date of enactment of this Act, shall notify each appropriate educational institution that accelerated payments (as provided for in subsection (a) of this section) may be available for certain students enrolled at such institutions, specifying the full conditions and procedures governing such payments, and, not later than 90 days after such date of enactment, shall publish in the Federal Register, and notify each State of, the rules and regulations governing the accelerated payment program. (e) Notwithstanding the provisions of section 1682A or section 1738 of title 38, United States Code, as added by subsections (a) and (b) of this section, eligible veterans and eligible persons entitled thereunder shall, in connection with a semester or two consecutive quarters beginning after January 1, 1978, and ending prior to August 1, 1978, be entitled to accelerated payment of educational assistance allowances upon application therefor, but the amounts of such accelerated payment which may be made in connection with any such semester or quarters, the number of months by which such veteran’s or person’s entitlement shall be reduced, and any quantifiable eligibility criteria shall be appropriately prorated by the Administrator of Veterans’ Affairs.