38 U.S.C. § 3225 — Discharge or release under conditions

Page 712 TITLE 38—VETERANS’ BENEFITS § 3223 ticipating in educational assistance program, see sec- tion 903 of Pub. L. 96–342, set out as a note under sec- tion 2141 of Title 10, Armed Forces. MATCHING FUNDS FROM DEPARTMENT OF DEFENSE AFTER JANUARY 1, 1982, IF NEW ENROLLMENTS ARE AUTHORIZED AFTER DECEMBER 31, 1981 For provisions of section 408(b) of Pub. L. 94–502 di- recting that ‘‘Department of Defense’’ be substituted for ‘‘Veterans’ Administration’’ in subsec. (b) of this section, effective Jan. 1, 1982, if new enrollments after Dec. 31, 1981, in the educational assistance program provided by this chapter are authorized after applica- tion of section 408(a) of Pub. L. 94–502, see section 408 of Pub. L. 94–502, set out as a note under section 3221 of this title. § 3223. Refunds of contributions upon disenrollment (a) Contributions made to the program by a participant may be refunded only after the par- ticipant has disenrolled from the program or as provided in section 3224 of this title. (b) If a participant disenrolls from the pro- gram prior to discharge or release from active duty, such participant’s contributions will be re- funded on the date of the participant’s discharge or release from active duty or within 60 days of receipt of notice by the Secretary of the partici- pant’s discharge or disenrollment, except that refunds may be made earlier in instances of hardship or other good reason as prescribed in regulations issued jointly by the Secretary and the Secretary of Defense. (c) If a participant disenrolls from the pro- gram after discharge or release from active duty, the participant’s contributions shall be re- funded within 60 days of receipt of an applica- tion for a refund from the participant. (d) In the event the participant (1) dies while on active duty, (2) dies after discharge or release from active duty, or (3) disenrolls or is disenrolled from the program without having utilized any entitlement, the participant may have accrued under the program, or, in the event the participant utilizes part of such partici- pant’s entitlement and disenrolls or is disenrolled from the program, the amount con- tributed by the Secretary of Defense under the authority of section 3222(c) of this title remain- ing in the fund shall be refunded to such Sec- retary. (Added Pub. L. 94–502, title IV, § 404, Oct. 15, 1976, 90 Stat. 2395, § 1623; amended Pub. L. 98–160, title VII, § 702(7), Nov. 21, 1983, 97 Stat. 1009; Pub. L. 101–237, title IV, § 423(b)(1)(A), (4)(A), (7), Dec. 18, 1989, 103 Stat. 2092, 2093; renumbered § 3223 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83, § 5(a), renumbered section 1623 of this title as this section. Subsec. (a). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3224’’ for ‘‘1624’’. Subsec. (d). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3222(c)’’ for ‘‘1622(c)’’. 1989—Subsec. (b). Pub. L. 101–237, § 423(b)(1)(A), (4)(A), substituted ‘‘Secretary’’ for ‘‘Administrator’’ wherever appearing and inserted ‘‘of Defense’’ after ‘‘Secretary’’ at end. Subsec. (d). Pub. L. 101–237, § 423(b)(7), inserted ‘‘of Defense’’ after first reference to ‘‘Secretary’’ and sub- stituted ‘‘such’’ for ‘‘the’’ before second reference to ‘‘Secretary’’. 1983—Subsec. (a). Pub. L. 98–160 inserted ‘‘of this title’’ after ‘‘section 1624’’. Subsec. (d). Pub. L. 98–160 inserted ‘‘of this title’’ after ‘‘section 1622(c)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1977, see section 406 of Pub. L. 94–502, set out as a note under section 3201 of this title. § 3224. Death of participant In the event of a participant’s death, the amount of such participant’s unused contribu- tions to the fund shall be paid to the living per- son or persons first listed below: (1) The beneficiary or beneficiaries des- ignated by such participant under such par- ticipant’s Servicemembers’ Group Life Insur- ance policy. (2) The surviving spouse of the participant. (3) The surviving child or children of the participant, in equal shares. (4) The surviving parent or parents of the participant, in equal shares. If there is no such person living, such amount shall be paid to such participant’s estate. (Added Pub. L. 94–502, title IV, § 404, Oct. 15, 1976, 90 Stat. 2395, § 1624; amended Pub. L. 96–466, title IV, § 402, Oct. 17, 1980, 94 Stat. 2201; renumbered § 3224, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 104–275, title IV, § 405(c)(2), Oct. 9, 1996, 110 Stat. 3340.) Editorial Notes AMENDMENTS 1996—Par. (1). Pub. L. 104–275 substituted ‘‘Servicemembers’ Group’’ for ‘‘Servicemen’s Group’’. 1991—Pub. L. 102–83 renumbered section 1624 of this title as this section. 1980—Pub. L. 96–466 expanded provisions to require payment of a participant’s unused contributions to the fund to the surviving spouse, the surviving child or children, or to the surviving parent or parents before payment of such amount to the participant’s estate. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Pub. L. 96–466, title VIII, § 802(d)(2), Oct. 17, 1980, 94 Stat. 2218, provided that: ‘‘The amendments made by sections 402 through 406 [amending this section and sec- tions 1622, 1631, and 1641 [now 3222, 3231, and 3241] of this title] shall become effective on October 1, 1980.’’ EFFECTIVE DATE Section effective Jan. 1, 1977, see section 406 of Pub. L. 94–502, set out as a note under section 3201 of this title. § 3225. Discharge or release under conditions which would bar the use of benefits If a participant in the program is discharged or released from active duty under dishonorable conditions, such participant is automatically disenrolled and any contributions made by such participant shall be refunded to such participant Page 713 TITLE 38—VETERANS’ BENEFITS § 3231 on the date of such participant’s discharge or re- lease from active duty or within 60 days from re- ceipt of notice by the Secretary of such dis- charge or release, whichever is later. (Added Pub. L. 94–502, title IV, § 404, Oct. 15, 1976, 90 Stat. 2396, § 1625; amended Pub. L. 101–237, title IV, § 423(b)(1)(A), Dec. 18, 1989, 103 Stat. 2092; renumbered § 3225, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 1625 of this title as this section. 1989—Pub. L. 101–237 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Jan. 1, 1977, see section 406 of Pub. L. 94–502, set out as a note under section 3201 of this title. SUBCHAPTER III—ENTITLEMENT; DURATION § 3231. Entitlement; loan eligibility (a)(1) Subject to the provisions of section 3695 of this title limiting the aggregate period for which any person may receive assistance under two or more programs of educational or voca- tional assistance administered by the Depart- ment of Veterans Affairs, a participant shall be entitled to a maximum of 36 monthly benefit payments (or their equivalent in the event of part-time benefits). (2) Except as provided in paragraph (5)(E) of this subsection and in subsection (e) of this sec- tion and section 3233 of this title and subject to section 3241 of this title, the amount of the monthly payment to which any eligible veteran is entitled shall be ascertained by (A) adding all contributions made to the fund by the eligible veteran, (B) multiplying the sum by 3, (C) add- ing all contributions made to the fund for such veteran by the Secretary of Defense, and (D) di- viding the sum by the lesser of 36 or the number of months in which contributions were made by such veteran. (3) Payment of benefits under this chapter may be made only for periods of time during which an eligible veteran is actually enrolled in and pursuing an approved program of education and, except as provided in paragraph (4), only after an eligible veteran has been discharged or released from active duty. (4) Payment of benefits under this chapter may be made after a participant has completed his or her first obligated period of active duty (which began after December 31, 1976), or 6 years of active duty (which began after December 31, 1976), whichever period is less. (5)(A) Notwithstanding any other provision of this chapter or chapter 36 of this title, any pay- ment of an educational assistance allowance de- scribed in subparagraph (B) of this paragraph— (i) shall not be charged against the entitle- ment of any eligible veteran under this chap- ter; and (ii) shall not be counted toward the aggre- gate period for which section 3695 of this title limits an individual’s receipt of assistance. (B) The payment of an educational assistance allowance referred to in subparagraph (A) of this paragraph is any payment of a monthly benefit under this chapter to an eligible veteran for pur- suit of a course or courses under this chapter if the Secretary finds that the eligible veteran— (i) in the case of a person not serving on ac- tive duty, had to discontinue such course pur- suit as a result of being ordered to serve on ac- tive duty under section 688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10; or (ii) in the case of a person serving on active duty, had to discontinue such course pursuit as a result of being ordered to a new duty loca- tion or assignment or to perform an increased amount of work; and (iii) failed to receive credit or training time toward completion of the individual’s ap- proved educational, professional, or vocational objective as a result of having to discontinue, as described in clause (i) or (ii) of this subpara- graph, his or her course pursuit. (C) The period for which, by reason of this sub- section, an educational assistance allowance is not charged against entitlement or counted to- ward the applicable aggregate period under sec- tion 3695 of this title shall not exceed the por- tion of the period of enrollment in the course or courses for which the individual failed to receive credit or with respect to which the individual lost training time, as determined under subpara- graph (B)(iii) of this paragraph. (D) The amount in the fund for each eligible veteran who received a payment of an edu- cational assistance allowance described in sub- paragraph (B) of this paragraph shall be restored to the amount that would have been in the fund for the veteran if the payment had not been made. For purposes of carrying out the previous sentence, the Secretary of Defense shall deposit into the fund, on behalf of each such veteran, an amount equal to the entire amount of the pay- ment made to the veteran. (E) In the case of a veteran who discontinues pursuit of a course or courses as described in subparagraph (B) of this paragraph, the formula for ascertaining the amount of the monthly pay- ment to which the veteran is entitled in para- graph (2) of this subsection shall be imple- mented as if— (i) the payment made to the fund by the Sec- retary of Defense under subparagraph (D) of this paragraph, and (ii) any payment for a course or courses de- scribed in subparagraph (B) of this paragraph that was paid out of the fund, had not been made or paid. (b) Any enlisted member of the Armed Forces participating in the program shall be eligible to enroll in a course, courses, or program of edu- cation for the purpose of attaining a secondary school diploma (or an equivalency certificate), as authorized by section 3491(a) of this title, dur- ing the last six months of such member’s first enlistment and at any time thereafter. (c) When an eligible veteran is pursuing a pro- gram of education under this chapter by cor-