H.R. 967 — Modern GI Bill Act

This section establishes a new authority (38 U.S.C. 3320A) allowing individuals entitled to Post-9/11 GI Bill educational assistance for tuition or fees to apply such amounts to repay the principal and interest on their Federal student loans (i.e., loans under title IV of the Higher Education Act of 1965), with payments made directly by the Department of Veterans Affairs to the lender. The maximum annual amount is $15,900 in FY2026, adjusted in subsequent fiscal years by the percentage increase in Social Security benefits under 42 U.S.C. 215(i); monthly payments are capped at one-twelfth of the annual maximum (as elected by the individual), with total payments limited to 36 months. Such assistance is non-transferable and applies to months beginning on or after the date of enactment.