
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-103 Section 107(a)]
[Document affected by Public Law 107-14 Section 8(a)(16)]
[Document affected by Public Law 107-103 Section 107(b)]
[CITE: 38USC3485]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
              CHAPTER 34--VETERANS' EDUCATIONAL ASSISTANCE
 
 SUBCHAPTER IV--PAYMENTS TO ELIGIBLE VETERANS; VETERAN-STUDENT SERVICES
 
Sec. 3485. Work-study allowance

    (a)(1) Individuals utilized under the authority of subsection (b) of 
this section shall be paid an additional educational assistance 
allowance (hereafter referred to as ``work-study allowance''). Such 
work-study allowance shall be paid in an amount equal to the applicable 
hourly minimum wage times the number of hours worked during the 
applicable period, in return for such individual's agreement to perform 
services, during or between periods of enrollment, aggregating not more 
than a number of hours equal to 25 times the number of weeks in the 
semester or other applicable enrollment period, required in connection 
with (A) the out-reach services program under subchapter II of chapter 
77 of this title as carried out under the supervision of a Department of 
Veterans Affairs employee, (B) the preparation and processing of 
necessary papers and other documents at educational institutions or 
regional offices or facilities of the Department of Veterans Affairs, 
(C) the provision of hospital and domiciliary care and medical treatment 
under chapter 17 of this title, (D) any other activity of the Department 
of Veterans Affairs as the Secretary shall determine appropriate, or (E) 
in the case of an individual who is receiving educational assistance 
under chapter 106 of title 10, activities relating to the administration 
of such chapter at Department of Defense, Coast Guard, or National Guard 
facilities. An individual may elect, in a manner prescribed by the 
Secretary, to be paid in advance an amount equal to 40 percent of the 
total amount of the work-study allowance agreed to be paid under the 
agreement in return for the individual's agreement to perform the number 
of hours of work specified in the agreement (but not more than an amount 
equal to 50 times the applicable hourly minimum wage).
    (2) For the purposes of paragraph (1) of this subsection and 
subsection (e) of this section, the term ``applicable hourly minimum 
wage'' means (A) the hourly minimum wage under section 6(a) of the Fair 
Labor Standards Act of 1938 (29 U.S.C. 206(a)), or (B) the hourly 
minimum wage under comparable law of the State in which the services are 
to be performed, if such wage is higher than the wage referred to in 
clause (A) and the Secretary has made a determination to pay such higher 
wage.
    (b) Notwithstanding any other provision of law, the Secretary shall, 
subject to the provisions of subsection (e) of this section, utilize, in 
connection with the activities specified in subsection (a)(1) of this 
section, the service of individuals who are pursuing programs of 
rehabilitation, education, or training under chapter 30, 31, 32, or 34 
of this title or chapter 106 of title 10, at a rate equal to at least 
three-quarters of that required of a full-time student. In carrying out 
this section, the Secretary, wherever feasible, shall give priority to 
veterans with disabilities rated at 30 percent or more for purposes of 
chapter 11 of this title. In the event an individual ceases to be at 
least a three-quarter-time student before completing such agreement, the 
individual may, with the approval of the Secretary, be permitted to 
complete such agreement.
    (c) The Secretary shall determine the number of individuals whose 
services the Department of Veterans Affairs can effectively utilize and 
the types of services that such individuals may be required to perform, 
on the basis of a survey, which the Secretary shall conduct annually, of 
each Department of Veterans Affairs regional office in order to 
determine the numbers of individuals whose services can effectively be 
utilized during an enrollment period in each geographical area where 
Department of Veterans Affairs activities are conducted, and shall 
determine which individuals shall be offered agreements under this 
section in accordance with regulations which the Secretary shall 
prescribe, including as criteria (1) the need of the individual to 
augment the veteran's educational assistance or subsistence allowance; 
(2) the availability to the individual of transportation to the place 
where the individual's services are to be performed; (3) the motivation 
of the individual; and (4) in the case of a disabled veteran pursuing a 
course of vocational rehabilitation under chapter 31 of this title, the 
compatibility of the work assignment to the veteran's physical 
condition.
    (d) While performing the services authorized by this section, 
individuals shall be deemed employees of the United States for the 
purposes of the benefits of chapter 81 of title 5 but not for the 
purposes of laws administrated by the Office of Personnel Management.
    (e)(1) Subject to paragraph (2) of this subsection, the Secretary 
may, notwithstanding any other provision of law, enter into an agreement 
with an individual under this section, or a modification of such an 
agreement, whereby the individual agrees to perform services of the kind 
described in clauses (A) through (E) of subsection (a)(1) of this 
section and agrees that the Secretary shall, in lieu of paying the work-
study allowance payable for such services, as provided in subsection (a) 
of this section, deduct the amount of the allowance from the amount 
which the individual has been determined to be indebted to the United 
States by virtue of such individual's participation in a benefits 
program under this chapter, chapter 30, 31, 32, 35, or 36 (other than an 
education loan under subchapter III) of this title, or chapter 106 of 
title 10 (other than an indebtedness arising from a refund penalty 
imposed under section 2135 \1\ of such title).
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    \1\ See References in Text note below.
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    (2)(A) Subject to subparagraph (B) of this paragraph, the provisions 
of this section (other than those provisions which are determined by the 
Secretary to be inapplicable to an agreement under this subsection) 
shall apply to any agreement authorized under paragraph (1) of this 
subsection.
    (B) For the purposes of this subsection, the Secretary may--
        (i) waive, in whole or in part, the limitations in subsection 
    (a) of this section concerning the number of hours and periods 
    during which services can be performed by the individual and the 
    provisions of subsection (b) of this section requiring the 
    individual's pursuit of a program of rehabilitation, education, or 
    training;
        (ii) in accordance with such terms and conditions as may be 
    specified in the agreement under this subsection, waive or defer 
    charging interest and administrative costs pursuant to section 5315 
    of this title on the indebtedness to be satisfied by performance of 
    the agreement; and
        (iii) notwithstanding the indebtedness offset provisions of 
    section 5314 of this title, waive or defer until the termination of 
    an agreement under this subsection the deduction of all or any 
    portion of the amount of indebtedness covered by the agreement from 
    future payments to the individual as described in section 5314 of 
    this title.

    (3)(A) Subject to the provisions of subparagraphs (B) and (C) of 
this paragraph, an agreement authorized under this subsection shall 
terminate in accordance with the provisions of this section and the 
terms and conditions of the agreement which are consistent with this 
subsection.
    (B) In no event shall an agreement under this subsection continue in 
force after the total amount of the individual's indebtedness described 
in paragraph (1) of this subsection has been recouped, waived, or 
otherwise liquidated.
    (C) Notwithstanding the provisions of subparagraphs (A) and (B) of 
this paragraph, if the Secretary finds that an individual was without 
fault and was allowed to perform services described in the agreement 
after its termination, the Secretary shall, as reasonable compensation 
therefor, pay the individual at the applicable hourly minimum wage rate 
for such services as the Secretary determines were satisfactorily 
performed.
    (4) The Secretary shall promulgate regulations to carry out this 
subsection.

(Added Pub. L. 92-540, title II, Sec. 203, Oct. 24, 1972, 86 Stat. 1079, 
Sec. 1685; amended Pub. L. 93-508, title II, Sec. 205, Dec. 3, 1974, 88 
Stat. 1582; Pub. L. 94-502, title II, Secs. 208, 211(11), Oct. 15, 1976, 
90 Stat. 2388, 2389; Pub. L. 95-202, title I, Sec. 105, Nov. 23, 1977, 
91 Stat. 1435; Pub. L. 96-466, title VIII, Sec. 801(b), Oct. 17, 1980, 
94 Stat. 2216; Pub. L. 97-295, Sec. 4(42), Oct. 12, 1982, 96 Stat. 1308; 
Pub. L. 99-576, title III, Sec. 308(c), Oct. 28, 1986, 100 Stat. 3270; 
Pub. L. 101-237, title IV, Secs. 405(a)-(d)(2), (4)(A), 423(b)(1), Dec. 
18, 1989, 103 Stat. 2080, 2081, 2092; Pub. L. 102-16, Secs. 6(a)-(b)(2), 
10(a)(5), Mar. 22, 1991, 105 Stat. 50, 51, 55; Pub. L. 102-40, title IV, 
Sec. 402(d)(1), May 7, 1991, 105 Stat. 239; renumbered Sec. 3485 and 
amended Pub. L. 102-83, Secs. 2(c)(2), 5(a), Aug. 6, 1991, 105 Stat. 
402, 406; Pub. L. 102-568, title III, Sec. 311, Oct. 29, 1992, 106 Stat. 
4330; Pub. L. 105-368, title II, Sec. 202(a), Nov. 11, 1998, 112 Stat. 
3326.)

                       References in Text

    Section 2135 of title 10, referred to in subsec. (e)(1), was 
renumbered section 16135 of Title 10, Armed Forces, by Pub. L. 103-337, 
div. A, title XVI, Sec. 1663(b)(2), Oct. 5, 1994, 108 Stat. 3006.


                               Amendments

    1998--Subsec. (a)(1). Pub. L. 105-368 substituted ``An individual 
may elect, in a manner prescribed by the Secretary, to be paid in 
advance'' for ``An individual shall be paid in advance'' in last 
sentence.
    1992--Subsec. (a)(1). Pub. L. 102-568 substituted ``40 percent'' for 
``40 per centum'' and inserted before period at end ``(but not more than 
an amount equal to 50 times the applicable hourly minimum wage)''.
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 1685 of this 
title as this section.
    Subsec. (a)(1). Pub. L. 102-83, Sec. 2(c)(2), substituted 
``subchapter II of chapter 77'' for ``subchapter IV of chapter 3''.
    Pub. L. 102-16, Sec. 10(a)(5), redesignated cls. (1) to (5) as cls. 
(A) to (E), respectively, and inserted in cl. (E) ``, Coast Guard, or 
National Guard'' after ``Department of Defense''.
    Subsec. (a)(2). Pub. L. 102-16, Sec. 6(b)(1), inserted ``and 
subsection (e) of this section'' after ``subsection''.
    Subsec. (b). Pub. L. 102-16, Sec. 6(b)(2), inserted ``, subject to 
the provisions of subsection (e) of this section,'' after ``shall'' in 
first sentence.
    Subsec. (e). Pub. L. 102-40 substituted ``5315'' for ``3115'' in 
par. (2)(B)(ii) and ``5314'' for ``3114'' in two places in par. 
(2)(B)(iii).
    Pub. L. 102-16, Sec. 6(a), added subsec. (e).
    1989--Pub. L. 101-237, Sec. 405(d)(4)(A), substituted ``Work-study 
allowance'' for ``Veteran-student services'' as section catchline.
    Subsec. (a). Pub. L. 101-237, Sec. 423(b)(1), substituted 
``Secretary'' and ``Department of Veterans Affairs'' for 
``Administrator'' and ``Veterans' Administration'', respectively, 
wherever appearing.
    Pub. L. 101-237, Sec. 405(a)(1), (b), (d)(2)(A), (C), (D), 
designated existing provisions as par. (1), substituted ``Such work-
study allowance shall be paid in an amount equal to the applicable 
hourly minimum wage times the number of hours worked during the 
applicable period, in return for such individual's agreement to perform 
services, during or between periods of enrollment, aggregating not more 
than a number of hours equal to 25 times the number of weeks in the 
semester or other applicable enrollment period,'' for ``Such work-study 
allowance shall be paid in an amount equal to either the amount of the 
hourly minimum wage in effect under section 6(a) of the Fair Labor 
Standards Act of 1938 (29 U.S.C. 206(a)) times two hundred and fifty or 
$625, whichever is the higher, in return for such veteran-student's 
agreement to perform services, during or between periods of enrollment, 
aggregating two hundred and fifty hours during a semester or other 
applicable enrollment period,'' in second sentence, added cl. (5), 
substituted references to individuals for references to veteran-
students, struck out third and fourth sentences which read as follows: 
``An agreement may be entered into for the performance of services for 
periods of less than two hundred and fifty hours. The amount of the 
work-study allowance to be paid under any such agreement shall be 
determined by multiplying the number of hours of work performed by the 
veteran-student under such agreement times either the hourly minimum 
wage in effect under section 6(a) of the Fair Labor Standards Act of 
1938 during the period the work is to be performed or $2.50, whichever 
is the higher.'', and added par. (2).
    Subsec. (b). Pub. L. 101-237, Sec. 423(b)(1)(A), substituted 
``Secretary'' for ``Administrator'' wherever appearing.
    Pub. L. 101-237, Sec. 405(a)(2), (c), (d)(1), substituted 
``subsection (a)(1) of this section'' for ``subsection (a) of this 
section'', ``individuals who are pursuing programs of rehabilitation, 
education, or training under chapter 30, 31, 32, or 34 of this title or 
chapter 106 of title 10, at a rate equal to at least three-quarters of 
that required of a full-time student'' for ``veteran-students who are 
pursuing full-time programs of rehabilitation, education, or training 
under chapter 30, 31, 32, or 34 of this title'', ``30 percent'' for ``30 
per centum'', and ``an individual ceases to be at least a three-quarter-
time student before completing such agreement, the individual'' for 
``the veteran ceases to be a full-time student before completing such 
agreement, the veteran''.
    Subsec. (c). Pub. L. 101-237, Sec. 423(b)(1), substituted 
``Secretary'' and ``Department of Veterans Affairs'' for 
``Administrator'' and ``Veterans' Administration'', respectively, 
wherever appearing.
    Pub. L. 101-237, Sec. 405(d)(2)(B), (E)-(G), substituted 
``individuals'' for ``veterans'' and for ``veteran-students'' wherever 
appearing, substituted ``individual's'' for ``veteran's'' in cl. (2), 
and substituted ``individual'' for ``veteran'' wherever appearing in 
cls. (1) to (3).
    Subsec. (d). Pub. L. 101-237, Sec. 405(d)(2)(B), substituted 
``individuals'' for ``veteran-students''.
    1986--Subsec. (b). Pub. L. 99-576 substituted ``rehabilitation, 
education, or training under chapter 30, 31, 32, or 34 of this title'' 
for ``education or training under chapters 31 and 34 of this title''.
    1982--Subsec. (a). Pub. L. 97-295 inserted ``(29 U.S.C. 206(a))'' 
after ``Act of 1938'' the first time it appeared.
    1980--Subsec. (d). Pub. L. 96-466 substituted ``Office of Personnel 
Management'' for ``Civil Service Commission''.
    1977--Subsec. (a). Pub. L. 95-202 substituted ``Such work-study 
allowance shall be paid in an amount equal to either the amount of the 
hourly minimum wage in effect under section 6(a) of the Fair Labor 
Standards Act of 1938 times two hundred and fifty or $625, whichever is 
the higher,'' for ``Such work-study allowance shall be paid in the 
amount of $625'' and, in the provisions relating to periods of service 
of less than two hundred and fifty hours, substituted ``amount of the 
work-study allowance to be paid under any such agreement shall be 
determined by multiplying the number of hours of work performed by the 
veteran-student under such agreement times either the hourly minimum 
wage in effect under section 6(a) of the Fair Labor Standards Act of 
1938 during the period the work is to be performed or $2.50, whichever 
is the higher'' for ``amount of the work-study allowance to be paid 
shall bear the same ratio to the number of hours of work agreed to be 
performed as $625 bears to two hundred and fifty hours'' and ``A 
veteran-student shall be paid in advance an amount equal to 40 per 
centum of the total amount of the work-study allowance agreed to be paid 
under the agreement to perform the number of hours of work specified in 
the agreement'' for provisions setting a flat amount of $250 in advance 
or a lesser amount in the case of any agreement providing for periods of 
less than one hundred hours.
    1976--Subsec. (b). Pub. L. 94-502, Sec. 208, inserted provision 
permitting the veteran who ceases to be a full-time student to complete 
the agreement, with the approval of the Administrator.
    Subsec. (c). Pub. L. 94-502, Sec. 211(11), substituted ``the 
Administrator shall conduct'' for ``he shall conduct'', ``the 
Administrator shall prescribe,'' for ``he shall prescribe,'', and ``the 
veteran's'' for ``his'' in two places.
    1974--Subsec. (a). Pub. L. 93-508, Sec. 205(1), (2), substituted 
``the amount of $625'' for ``in advance in the amount of $250'', and 
``aggregating two hundred and fifty hours'' for ``aggregating one 
hundred hours'', and substituted provisions that an agreement may be 
entered into for the performance of services for periods of less than 
two hundred and fifty hours, in which case the amount of the work-study 
allowance to be paid shall bear the same ratio to the number of hours of 
work agreed to be performed as $625 bears to two hundred and fifty hours 
and that in the case of any agreement providing for the performance of 
services for less than one hundred hours, the amount of the advance 
payment shall bear the same ratio to the number of hours of work agreed 
to be performed as $625 bears to two hundred and fifty hours, for 
provisions that advances of lesser amounts may be made in return for 
agreements to perform services for periods of less than one hundred 
hours, and that the amount of such advance shall bear the same ratio to 
the number of hours of work agreed to be performed as $250 bears to one 
hundred hours.
    Subsec. (c). Pub. L. 93-508, Sec. 205(3), struck out parenthetical 
provisions relating to a limit of eight-hundred man-years or their 
equivalent during any fiscal year.


                    Effective Date of 1998 Amendment

    Pub. L. 105-368, title II, Sec. 202(b), Nov. 11, 1998, 112 Stat. 
3326, provided that: ``The amendment made by subsection (a) [amending 
this section] shall apply with respect to agreements entered into under 
section 3485 of title 38, United States Code, on or after January 1, 
1999.''


                    Effective Date of 1989 Amendment

    Amendment by section 405(a)-(d)(2), (4)(A) of Pub. L. 101-237 
effective May 1, 1990, and applicable to services performed on or after 
that date, see section 405(e) of Pub. L. 101-237, set out as a note 
under section 16136 of Title 10, Armed Forces.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-466 effective Oct. 1, 1980, see section 
802(h) of Pub. L. 96-466, set out as a note under section 3452 of this 
title.


                    Effective Date of 1977 Amendment

    Amendment by Pub. L. 95-202 effective retroactively to Oct. 1, 1977, 
see section 501 of Pub. L. 95-202, set out as a note under section 101 
of this title.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-502 effective Oct. 15, 1976, see section 
703(b) of Pub. L. 94-502, set out as an Effective Date note under 
section 3693 of this title.


                    Effective Date of 1974 Amendment

    Amendment by Pub. L. 93-508 effective Dec. 3, 1974, see section 503 
of Pub. L. 93-508, set out as a note under section 3452 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 1712A, 3034, 3104, 3241, 
3537, 5314, 5315, 7722 of this title; title 10 section 16136.
