Education Assistance Act of l981

Education Assistance Act of 1981 - Title I: New G.I. Education Program - Establishes a Peacetime Veterans' Educational Assistance Program for persons who enter military service after December 31, 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 27 months of educational assistance under such program for the first 24 months of service, and one month of such assistance for each additional month of service. Provides that no person may earn more than 36 months of such assistance.

Prohibits persons who enter active duty and are entitled to an initial enlistment bonus from earning entitlement under such program, unless such persons enlisted for a period of four years or more. Sets forth circumstances under which such persons may earn entitlement by not accepting certain bonuses or by re-enlisting from two to four years.

Makes veterans entitled to educational assistance 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.

Extends such educational assistance program to members of the Selected Reserve of the Ready Reserve who enlist after December 31, 1980, for not less than six years of service under regulations prescribed by the Administrator and the Secretary of Defense.

Establishes a Career Servicepersons' Education Assistance Program for members of the armed forces serving on active duty who have completed six years of service. Allows such members to enroll in such educational benefits program by contributing a monthly deduction to the Career Servicepersons' Education Account. Limits such contributions to a specified amount. Authorizes the Secretary to match such contributions at a specified rate after 24 months of participation by any member and to contribute amounts he deems necessary to encourage persons to remain in the armed forces. Provides procedures for refunds of contributions due to: (1) disenrollment from such program; (2) death of a participant; and (3) discharge or release under conditions which would bar the use of educational benefits.

Sets forth the formula for determining the amount of entitlement and the methods of payments of benefits to eligible members who pursue a program of education.

Makes veterans participating in such program eligible for education loans. Authorizes eligible veterans to transfer their educational benefits to their spouses or children in accordance with regulations prescribed by the Secretary.

Limits educational assistance under such program to the date ten years beyond an eligible veteran's discharge or release date.

Requires the Administrator and the Secretary to submit a joint report to the Congressional committees on Veterans' Affairs containing their respective plans for implementation of the Career Serviceperson's Educational Assistance Program and to submit an annual report each year detailing the operations of such program.

Directs the Secretary of Defense to submit a report to the Administrator each month on deductions made from the military pay of program participants.

Makes persons who enter the military service after December 31, 1980, ineligible for participation in the Post-Vietnam Era Veterans' Educational Assistance Program.

Title II: Educational Leaves of Absence for Members of the Armed Forces - Authorizes the Secretary of Defense to prescribe regulations to grant leaves of absence (not to exceed 12 consecutive months) to eligible members of the armed forces to pursue a program of education. Requires members granted such leave to agree in writing to extend their active duty service for a period of two months for each month of leave of absence. Allows payment to such members of basic allowance for quarters and subsistence while on such leave. Sets forth the circumstances under which the Secretary may cancel such leaves of absence.