§ 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).

¹ See References in Text note below.

     (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, § 203, Oct. 24, 1972, 86 Stat. 1079, § 1685; amended Pub. L. 93–508, title II, § 205, Dec. 3, 1974, 88 Stat. 1582; Pub. L. 94–502, title II, §§ 208, 211(11), Oct. 15, 1976, 90 Stat. 2388, 2389; Pub. L. 95–202, title I, § 105, Nov. 23, 1977, 91 Stat. 1435; Pub. L. 96–466, title VIII, § 801(b), Oct. 17, 1980, 94 Stat. 2216; Pub. L. 97–295, § 4(42), Oct. 12, 1982, 96 Stat. 1308; Pub. L. 99–576, title III, § 308(c), Oct. 28, 1986, 100 Stat. 3270; Pub. L. 101–237, title IV, §§ 405(a)–(d)(2), (4)(A), 423(b)(1), Dec. 18, 1989, 103 Stat. 2080, 2081, 2092; Pub. L. 102–16, §§ 6(a)–(b)(2), 10(a)(5), Mar. 22, 1991, 105 Stat. 50, 51, 55; Pub. L. 102–40, title IV, § 402(d)(1), May 7, 1991, 105 Stat. 239; renumbered § 3485 and amended Pub. L. 102–83, §§ 2(c)(2), 5(a), Aug. 6, 1991, 105 Stat. 402, 406; Pub. L. 102–568, title III, § 311, Oct. 29, 1992, 106 Stat. 4330; Pub. L. 105–368, title II, § 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, § 1663(b)(2), Oct. 5, 1994, 108 Stat. 3006.

     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, § 5(a), renumbered section 1685 of this title as this section.

     Subsec. (a)(1). Pub. L. 102–83, § 2(c)(2), substituted "subchapter II of chapter 77" for "subchapter IV of chapter 3".

     Pub. L. 102–16, § 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, § 6(b)(1), inserted "and subsection (e) of this section" after "subsection".

     Subsec. (b). Pub. L. 102–16, § 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, § 6(a), added subsec. (e).

     1989—Pub. L. 101–237, § 405(d)(4)(A), substituted "Work-study allowance" for "Veteran-student services" as section catchline.

     Subsec. (a). Pub. L. 101–237, § 423(b)(1), substituted "Secretary" and "Department of Veterans Affairs" for "Administrator" and "Veterans’ Administration", respectively, wherever appearing.

     Pub. L. 101–237, § 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, § 423(b)(1)(A), substituted "Secretary" for "Administrator" wherever appearing.

     Pub. L. 101–237, § 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, § 423(b)(1), substituted "Secretary" and "Department of Veterans Affairs" for "Administrator" and "Veterans’ Administration", respectively, wherever appearing.

     Pub. L. 101–237, § 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, § 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, § 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, § 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, § 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, § 205(3), struck out parenthetical provisions relating to a limit of eight-hundred man-years or their equivalent during any fiscal year.

     Pub. L. 105–368, title II, § 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."

     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.

     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.

     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.

     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.

     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.

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