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S 2732 IS

To expand the definition of independent student under the Higher Education Act of 1965 to include active members of the National Guard or Reserve forces of the United States and to prevent payments of educational assistance for veterans and members of the Selected Reserve from being offset in the calculation of financial aid under such Act.

March 7, 2008

Mrs. MCCASKILL introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

To expand the definition of independent student under the Higher Education Act of 1965 to include active members of the National Guard or Reserve forces of the United States and to prevent payments of educational assistance for veterans and members of the Selected Reserve from being offset in the calculation of financial aid under such Act.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Student Veteran Financial Aid Fairness Act of 2008'.

SEC. 2. INDEPENDENT STUDENT.

(a) Amendment to Current Law-

(1) IN GENERAL- Section 480(d)(3) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(d)(3)) is amended by inserting `or is a current active member of the National Guard or Reserve forces of the United States who has completed initial military training' after `purposes'.

(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall be effective on July 1, 2008.

(b) Amendment to Law as Amended by the College Cost Reduction and Access Act-

(1) IN GENERAL- Section 480(d) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(d)), as amended by section 604 of the College Cost Reduction and Access Act (Public Law 110-84), is amended in paragraph (1)(D), by inserting `or is a current active member of the National Guard or Reserve forces of the United States who has completed initial military training' after `purposes'.

(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall be effective on July 1, 2009.

SEC. 3. TREATMENT AS OTHER FINANCIAL AID.

Section 480(j)(1) of the Higher Education Act of 1965 (20 U.S.C. 1087vv(j)(1)) is amended--

(1) by striking `veterans' education benefits as defined in subsection (c), and'; and

(2) by inserting before the period at the end the following: `, but excluding any payments of educational assistance to veterans under title 38, United States Code, and to members of the Selected Reserve under chapters 1606 and 1607 of title 10, United States Code'.