# Plain Language Summary: Modern GI Bill Act

This bill allows veterans who receive Post-9/11 GI Bill benefits to use that money to pay off their federal student loans instead of just using it for tuition and school fees. Right now, GI Bill benefits can only be used to cover education costs like tuition, books, and housing while in school. This change would let veterans redirect those benefits toward paying down student debt they may have taken on before, during, or after their military service.

The bill sets specific limits on how much a veteran can use for loan repayment. Starting in 2026, a veteran could use up to $15,900 per year from their GI Bill benefits to pay down federal student loans. This amount would increase each year based on Social Security cost-of-living adjustments, so it keeps pace with inflation. The payments would be made monthly—no more than one-twelfth of the annual limit each month—and a veteran could use this benefit for up to 36 months (three years). The government would send the payments directly to the loan servicer, not to the veteran.

One important restriction is that this benefit cannot be transferred to family members or dependents. It's only for the veteran themselves. Also, this only applies to federal student loans made through federal education programs—not private loans. The benefit would start being available to eligible veterans in the fiscal year after the bill becomes law, which would likely be 2026 based on the language in the bill.

Modern GI Bill Act

Steube, W. Gregory

Modern GI Bill ActThis 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.