Collapse to view only § 7636. Exemption of educational assistance payments from taxation

§ 7631. Periodic adjustments in amount of assistance
(a)
(1) Whenever there is a general Federal pay increase, the Secretary shall increase the maximum monthly stipend amount, the maximum tuition reimbursement amount, the maximum Selected Reserve member stipend amount, the maximum employee incentive scholarship amount, the maximum education debt reduction payments amount, and the maximum specialty education loan repayment amount. Any such increase shall take effect with respect to any school year that ends in the fiscal year in which the pay increase takes effect.
(2) The amount of any increase under paragraph (1) of this subsection is the previous maximum amount under that paragraph multiplied by the overall percentage of the adjustment in the rates of pay under the General Schedule made under the general Federal pay increase. Such amount shall be rounded to the next lower multiple of $1.
(b) For purposes of this section:
(1) The term “maximum monthly stipend amount” means the maximum monthly stipend that may be paid to a participant in the Scholarship Program specified in section 7613(b) of this title and as previously adjusted (if at all) in accordance with this section.
(2) The term “maximum tuition reimbursement amount” means the maximum amount of tuition reimbursement provided to a participant in the Tuition Reimbursement Program specified in section 7622(e) of this title and as previously adjusted (if at all) in accordance with this section.
(3) The term “maximum Selected Reserve member stipend amount” means the maximum amount of assistance provided to a person receiving assistance under subchapter V of this chapter, as specified in section 7653 of this title and as previously adjusted (if at all) in accordance with this section.
(4) The term “maximum employee incentive scholarship amount” means the maximum amount of the scholarship payable to a participant in the Department of Veterans Affairs Employee Incentive Scholarship Program under subchapter VI of this chapter, as specified in section 7673(b)(1) of this title and as previously adjusted (if at all) in accordance with this section.
(5) The term “maximum education debt reduction payments amount” means the maximum amount of education debt reduction payments payable to a participant in the Department of Veterans Affairs Education Debt Reduction Program under subchapter VII of this chapter, as specified in section 7683(d)(1) of this title and as previously adjusted (if at all) in accordance with this section.
(6) The term “general Federal pay increase” means an adjustment (if an increase) in the rates of pay under the General Schedule under subchapter III of chapter 53 of title 5.
(7) The term “specialty education loan repayment amount” means the maximum amount of specialty education loan repayment payments payable to or for a participant in the Department of Veterans Affairs Specialty Education Loan Repayment Program under subchapter VIII of this chapter, as specified in section 7694(c)(1) of this title and as previously adjusted (if at all) in accordance with this section.
(Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 528, § 4331; amended Pub. L. 101–366, title II, § 205(b), Aug. 15, 1990, 104 Stat. 441; renumbered § 7631 and amended Pub. L. 102–40, title IV, § 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 102–54, § 14(e)(10), June 13, 1991, 105 Stat. 287; Pub. L. 102–83, § 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 107–135, title I, §§ 101(f), (g), 102(d)(1), Jan. 23, 2002, 115 Stat. 2448, 2449; Pub. L. 115–182, title III, § 303(b)(1)(D), June 6, 2018, 132 Stat. 1466.)
§ 7632. Annual report
Not later than March 1 of each year, the Secretary shall submit to Congress a report on the Educational Assistance Program. Each such report shall include the following information:
(1) The number of students receiving educational assistance under the Educational Assistance Program, showing the numbers of students receiving assistance under the Scholarship Program, the Tuition Reimbursement Program, the Employee Incentive Scholarship Program, the Education Debt Reduction Program, the Specialty Education Loan Repayment Program, and the Readjustment Counseling Service Scholarship Program separately, and the number of students (if any) enrolled in each type of health profession training under each program.
(2) The education institutions (if any) providing such training to students in each program.
(3) The number of applications filed under each program, by health profession category, during the school year beginning in such year and the total number of such applications so filed for all years in which the Educational Assistance Program (or predecessor program) has been in existence.
(4) The average amounts of educational assistance provided per participant in the Scholarship Program, per participant in the Tuition Reimbursement Program, per participant in the Employee Incentive Scholarship Program, per participant in the Education Debt Reduction Program, per participant in the Specialty Education Loan Repayment Program, and per participant in the Readjustment Counseling Service Scholarship Program.
(5) The amount of tuition and other expenses paid, by health profession category, in the aggregate and at each educational institution for the school year beginning in such year and for prior school years.
(6) The number of scholarships accepted, by health profession category, during the school year beginning in such year and the number, by health profession category, which were offered and not accepted.
(7) The number of participants who complete a course or course of training in each program each year and for all years that such program (or predecessor program) has been in existence.
(Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 528, § 4332; renumbered § 7632, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102–83, § 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 105–368, title VIII, § 805(5), Nov. 11, 1998, 112 Stat. 3359; Pub. L. 115–182, title III, § 303(b)(1)(E), June 6, 2018, 132 Stat. 1467; Pub. L. 116–171, title V, § 502(b)(1)(E), Oct. 17, 2020, 134 Stat. 818.)
§ 7633. Regulations

The Secretary shall prescribe regulations to carry out the Educational Assistance Program.

(Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 529, § 4333; renumbered § 7633, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102–83, § 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.)
§ 7634. Breach of agreement; waiver of liability
(a) An obligation under the Educational Assistance Program (or an agreement under the program) of a participant in the Educational Assistance Program for performance of services or payment of damages is canceled upon the death of the participant.
(b) The Secretary shall prescribe regulations providing for the waiver or suspension of any obligation of a participant for service or payment under the Educational Assistance Program (or an agreement under the program) whenever noncompliance by the participant is due to circumstances beyond the control of the participant or whenever the Secretary determines that the waiver or suspension of compliance is in the best interest of the United States.
(c) An obligation of a participant under the Educational Assistance Program (or an agreement thereunder) for payment of damages may not be released by a discharge in bankruptcy under title 11 before the expiration of the five-year period beginning on the first date the payment of such damages is due.
(Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 529, § 4334; renumbered § 7634, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102–83, § 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405.)
§ 7635. Service in other agencies
(a) The Secretary, with the consent of the participant or individual involved and the consent of the head of the department or agency involved, may permit—
(1) a period of obligated service required under this chapter to be performed in the Veterans Health Administration to be performed in another Federal department or agency or in the Armed Forces in lieu of performance of such service in the Veterans Health Administration; and
(2) a period of obligated service required to be performed in another Federal department or agency or in the Armed Forces under another Federal health personnel educational assistance program to be performed in the Veterans Health Administration.
(b) This section shall be carried out in cooperation with the heads of other appropriate departments and agencies.
(Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 529, § 4335; renumbered § 7635, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 102–83, § 4(b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 405; Pub. L. 103–446, title XII, § 1201(b)(1), Nov. 2, 1994, 108 Stat. 4682.)
§ 7636. Exemption of educational assistance payments from taxation

Notwithstanding any other law, any payment to, or on behalf of a participant in the Educational Assistance Program, for tuition, education expenses, a stipend, or education debt reduction under this chapter shall be exempt from taxation.

(Added Pub. L. 100–322, title II, § 216(b), May 20, 1988, 102 Stat. 529, § 4336; renumbered § 7636, Pub. L. 102–40, title IV, § 402(b)(1), May 7, 1991, 105 Stat. 238; amended Pub. L. 105–368, title VIII, § 805(6), Nov. 11, 1998, 112 Stat. 3359.)