A bill to amend title 10 of the United States Code to allow the Secretaries of the military departments to establish programs to provide educational assistance to individuals enlisting in the Armed Forces.

Authorizes the Secretary of each military department to establish an educational assistance program for persons enlisting in an armed force under such Secretary's jurisdiction.

Requires the Department of Defense to bear the costs of any such program. Prohibits requiring that any person participating make any contribution to such program.

Directs the Secretary of Defense to prescribe regulations for such programs taking account of the differences among the several armed forces.

Requires that such programs provide that any person initially enlisting in an armed force who meets eligibility requirements established by the Secretary concerned, according to specified guidelines, become entitled to educational assistance at the time of such enlistment, with specified exceptions.

Sets the period of educational assistance entitlement at one standard academic year (or the equivalent) for: (1) each year of the initial enlistment, up to four years; and (2) each year of active service, provided the person has completed at least two years active service before discharge or other release from active duty.

Denies such entitlement to members discharged or otherwise released from active duty before completing two years of active service or under other than honorable conditions. Provides that such entitlement may not be used until a member has completed two years of active service.

Directs the Secretary concerned to limit eligibility to persons who: (1) initially enlist for service on active duty in any armed force after September 30, 1980; (2) are graduates of a secondary school; and (3) meet other requirements the Secretary may consider appropriate for the purposes of this Act and the needs of the armed forces.

Directs the Secretary concerned to establish the maximum amount (up to $1,500) of assistance for educational expenses at an accredited institution of postsecondary education which may be provided any person under such program in any academic year. Permits different amounts to be established for different categories of persons enlisting.

Entitles program participants to subsistence allowances of $400 per month during a nine-month academic year for full-time students (one-half of such amount for less than full-time).

Directs the Secretary of Defense to increase the maximum amounts of yearly educational assistance and the subsistence allowance, once each year in a manner consistent with the increase over the preceding 12-month period in the average actual cost of attendance at public institutions of higher education.

Allows persons upon reenlistment at the end of their initial enlistment to transfer such entitlement to their spouses or dependent children. Provides that any unused entitlement of a person who dies before electing to transfer such entitlement, but has never elected not to make such a transfer, be automatically transferred to such person's surviving spouse or (if there is no surviving spouse or if the surviving spouse so elects) to such person's children.

Sets a ten-year duration for such entitlement beginning on the date of retirement or discharge or other separation from active duty or, in the case of a member who dies on active duty and whose entitlement was thereby automatically transferred, beginning on the date of death.

Requires persons entitled to such assistance to submit applications to the Secretary concerned to receive such benefits.