Title 38 › PART III — READJUSTMENT AND RELATED BENEFITS › CHAPTER 30 — ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM › SUBCHAPTER II — BASIC EDUCATIONAL ASSISTANCE › § 3018C
Allows certain service members who were in the Post‑Vietnam Era education program on October 9, 1996 to switch to the basic educational assistance under this law. To switch, you had to be on active duty on October 9, 1996, have a high school diploma (or equivalent) or 12 college credits, make an irrevocable election within the one‑year period starting October 9, 1996 under your service’s procedures, and if you leave active duty after you elect you must have an honorable discharge. If you elect, you are taken out of the chapter 32 program and your unused account contributions are refunded; certain Defense Department contributions are returned while some remain in the account to pay other benefits. Your basic pay will be reduced until $1,200 has been collected, and if that amount is not fully taken from pay before your discharge the remaining amount must be collected and sent to the U.S. Treasury. The law requires you be given written notice of key rules before you sign. A later group of “qualified individuals” who were in the chapter 32 program on or before October 9, 1996 and who stayed on active duty continuously through at least April 1, 2000 could make the same kind of irrevocable election during the one‑year period that began when that part of the law was enacted. Those people face a total pay reduction of $2,700 (taken from basic pay, or if not collected before discharge the difference can be collected from retired or retainer pay), have an 18‑month window to pay any remaining amount, and get the same disenrollment and refund rules. Education payments may be withheld until the amount due is paid or deducted, and the services must notify participants about this opportunity.
Full Legal Text
Veterans' Benefits, Source: USLM XML via OLRC
Legislative History
Reference
Citation
38 U.S.C. § 3018C
Title 38, Veterans' Benefits
Last Updated
Sep 22, 2026
Release point: 119-110