Persian Gulf Conflict Education Equity Act

Persian Gulf Conflict Education Equity Act - Amends the Higher Education Act of 1965 to cancel on a prorated basis a portion of a direct student loan received under such Act by a reserve member of the armed forces who serves on active duty for less than one year in connection with the Persian Gulf conflict. (Current law permits the cancellation of 12.5 percent of the total loan in the case of personnel who serve in a combat zone for at least one year.)

Requires every educational institution that offers courses of study approved for armed forces or veterans' educational assistance programs to reimburse each student who is a member of the armed forces for the entire amount of tuition and fees paid with respect to any course such student is unable to complete because of service on active duty in connection with the Persian Gulf conflict. Terminates approval of such institution for purposes of armed forces or veterans' educational assistance programs if such institution does not certify to the Secretary of Veterans Affairs that it is implementing such requirement. Refuses Federal financial assistance to such institution under the Higher Education Act of 1965 if such requirements are not implemented.

States that any armed forces or veterans' educational assistance paid to a member of the armed forces shall be considered not to have been paid if the payment is made as a result of the individual's enrollment in a course that the individual is unable to complete due to the person's service on active duty in connection with the Persian Gulf conflict. Requires the Secretary to report to the Congress on the implementation of this provision.