H.R.967 - Modern GI Bill Act (119th Congress)
Summary
H.R. 967, the Modern GI Bill Act, proposes to amend Title 38 of the United States Code, allowing individuals eligible for Post-9/11 educational assistance to use these funds to repay federal student loans. The bill sets a maximum annual repayment amount, initially at $15,900 for fiscal year 2026, with annual adjustments based on Social Security benefit increases. Payments would be made directly to the loan lender, with a maximum of 36 months of payments allowed.
Expected Effects
This bill, if enacted, would provide veterans with greater flexibility in utilizing their educational benefits. It allows them to alleviate student loan debt, potentially improving their financial stability. The change could also incentivize more veterans to pursue higher education, knowing they have an additional option for managing student loan burdens.
Potential Benefits
- Provides veterans with an alternative way to use their Post-9/11 GI Bill benefits.
- Reduces the burden of student loan debt for veterans.
- Could improve veterans' credit scores and financial stability.
- May encourage more veterans to pursue higher education.
- Simplifies the process of managing educational assistance for some veterans.
Potential Disadvantages
- May reduce the funds available for traditional educational expenses (tuition, fees, books).
- Could disproportionately benefit veterans with higher student loan debt, potentially creating inequity.
- The maximum annual amount may not be sufficient to cover all student loan payments for some veterans.
- Requires administrative oversight to ensure proper implementation and prevent fraud.
- May incentivize veterans to take on more student loan debt, knowing they can use GI Bill benefits to repay it.
Constitutional Alignment
The bill appears to align with the Constitution, particularly the General Welfare Clause (Preamble), as it aims to improve the financial well-being of veterans. Congress has the power to legislate for the common defense and provide for veterans' welfare. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).