A bill to amend title 38, United States Code, to provide a new educational assistance program for persons who enlist, reenlist, or otherwise enter the Armed Forces after December 31, 1980, to provide for the cancellation of certain education loans in the case of individuals who perform service in the Selected Reserve of the Ready Reserve of an Armed Force, and for other purposes.

Establishes a Peacetime Veterans' Educational Assistance Program for persons who enter military service after September 30, 1980, and serve on active duty for a period of two years or more, or are discharged or released from such duty for a service-connected disability. Entitles eligible veterans to 36 months of educational assistance under such program. Makes such veterans eligible to participate in the Predischarge Education Program and eligible for education loans.

Provides that such veterans are eligible for educational assistance for the ten-year period following their discharge or release date. Sets forth procedures extending any applicable time period for such veterans who are prevented from initiating or completing a program of education under certain circumstances.

Directs the Administrator of Veterans' Affairs to pay tuition costs and a subsistence allowance to eligible veterans in the program.

Makes technical and conforming amendments to existing laws relating to veterans' educational assistance.

Terminates the Post-Vietnam Era Veterans' Educational Assistance program after September 30, 1982.