To provide and restore certain education benefits to certain individuals serving in the Persian Gulf War.

Amends the Federal veterans' and armed forces educational assistance programs to provide that, in the case of an active-duty or reserve member student who fails to complete a course of study under such programs due to being called to active duty or being given increased work in connection with the Persian Gulf War, both the amount of educational assistance received and the time spent pursuing that course will not be counted against such student for purposes of his or her general entitlement to educational benefits under the appropriate educational assistance program. Restores the full amount available to such student veteran as if the interrupted course had not been taken. States that such exclusion shall also apply to members of the Selected Reserve pursuing courses of study (and similarly interrupted) under the armed forces' educational assistance program.

Amends Federal armed forces provisions to provide that, in the case of a member of the reserves called to active duty in connection with the Persian Gulf War: (1) the period of such active duty may not be considered in determining the expiration date for eligibility for educational assistance benefits provided under the Montgomery GI Bill; and (2) the member may not be considered to have been separated from the reserves for purposes of commencement of the delimiting period for the use of such educational benefits.

Makes military personnel called to active duty in the Persian Gulf eligible for the deferment of student loan payments under the Higher Education Act of 1965 during the continuance of such duty. States that such deferment period shall not be counted against the grace period that is available to all individuals with respect to such loans made under such Act.