38 U.S.C. § 7683 — Education debt reduction
submitted 28 years ago by Pub. L. 105-368 to r/title-38-VETERANS-BENEFITS · 332 words · no verdicts yet
This section explains how the VA pays down a participant's student loans under its Education Debt Reduction Program. Total payments are capped at $200,000 over five years, or $40,000 a year, unless waived for hard-to-fill positions.
(a) In General: Education debt reduction payments consist of either: (1) paying the selected participant directly for the principal and interest on their loans described in section 7682(a)(2); or (2) paying the loan holder directly on the participant's behalf.
(b) Frequency of Payment: (1) The Secretary* may make these payments monthly or annually for any given participant, as the Secretary decides. (2) The Secretary makes the payments at the end of whichever period the Secretary chose under paragraph (1).
(c) Performance Requirement: The Secretary may make payments to or for a participant for a given period only if the participant kept an acceptable level of performance in their position during that period.
(d) Maximum Annual Amount: (1) Payments to or for a participant can't exceed $200,000 total over five years of participation, and no more than $40,000 in any single year. (2) (A) The Secretary may waive these limits for a participant described in (B) — in that case, the total amount payable is the full principal and interest owed on the participant's loans. (B) That's a participant the Secretary determines serves in a position for which qualified employees are in short supply, whether because of the position's location or its requirements.
Education debt reduction payments under the Education Debt Reduction Program shall consist of—
payments to individuals selected to participate in the program of principal and interest on loans described in section 7682(a)(2) of this title; or
payments for the principal and interest on such loans of such individuals to the holders of such loans.
The Secretary* may make education debt reduction payments to or for any given participant in the Education Debt Reduction Program on a monthly or annual basis, as determined by the Secretary.
The Secretary shall make such payments at the end of the period determined by the Secretary under paragraph (1).
The Secretary may make education debt reduction payments to or for a participant in the Education Debt Reduction Program for a period only if the Secretary determines that the individual maintained an acceptable level of performance in the position or positions served by the participant during the period.
The amount of education debt reduction payments made to or for a participant under the Education Debt Reduction Program may not exceed $200,000 over a total of five years of participation in the Program, of which not more than $40,000 of such payments may be made in each year of participation in the Program.
The Secretary may waive the limitations under paragraph (1) in the case of a participant described in subparagraph (B). In the case of such a waiver, the total amount of education debt repayments payable to or for that participant is the total amount of the principal and the interest on the participant’s loans referred to in subsection (a).
A participant described in this subparagraph is a participant in the Program who the Secretary determines serves in a position for which there is a shortage of qualified employees by reason of either the location or the requirements of the position.
Source credit: (Added Pub. L. 105–368, title VIII, § 803(a), Nov. 11, 1998, 112 Stat. 3357; amended Pub. L. 107–135, title I, § 102(c), Jan. 23, 2002, 115 Stat. 2448; Pub. L. 111–163, title III, § 301(c), (d), May 5, 2010, 124 Stat. 1146; Pub. L. 113–146, title III, § 302(b), Aug. 7, 2014, 128 Stat. 1788; Pub. L. 113–175, title IV, § 408, Sept. 26, 2014, 128 Stat. 1906; Pub. L. 114–58, title VI, § 601(24), Sept. 30, 2015, 129 Stat. 539; Pub. L. 115–182, title III, § 302(a), June 6, 2018, 132 Stat. 1463.)
- 1998Enacted · Pub. L. 105-368 · 112 Stat. 3357
- 2002Amended · Pub. L. 107-135 · 115 Stat. 2448
- 2010Amended · Pub. L. 111-163 · 124 Stat. 1146
- 2014Amended · Pub. L. 113-146 · 128 Stat. 1788
- 2014Amended · Pub. L. 113-175 · 128 Stat. 1906
- 2015Amended · Pub. L. 114-58 · 129 Stat. 539
- 2018Amended · Pub. L. 115-182 · 132 Stat. 1463
A history note hasn’t been published yet. The record shows enactment by Pub. L. 105-368 on 1998-11-11.
all 0 arguments · sorted by: best
no arguments yet — make the first case