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Veteran Education Benefits: Changes to Liability for Military Families.

New rules clarify who is financially responsible if a service member fails to complete their service agreement after transferring educational benefits to a family member. This change aims to simplify the process of recovering overpayments by making only the service member liable. This impacts the financial security of military families by removing their responsibility in such situations.
Key points
A service member who transferred educational benefits to a family member but failed to complete their service agreement will be solely responsible for repaying any overpaid amounts.
Family members who received the benefits will not be held financially liable for overpayments if the service member defaults on their agreement.
These provisions are temporary and will revert to their previous wording on October 1, 2024.
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Additional Information
To amend title 38, United States Code, to render an individual, who transfers certain educational assistance, to which the individual is entitled because of an agreement by such individual to serve in the Armed Forces, to a dependent of that individual, and who fails to complete such agreement, solely liable for the overpayment of such educational assistance.
Print number: HR 290
Sponsor: Rep. Bost, Mike [R-IL-12]
Process start date: 2021-01-13