GI Education Assistance Act of 1981

GI Education Assistance Act of 1981 - Title I: New GI Education Program - Establishes an educational assistance program for veterans who entered the armed forces after December 31, 1980, served on active duty for two or more years, and were honorably discharged or discharged for hardship or a service-connected disability. Entitles eligible veterans to 27 months of assistance for the first two years of active service and one month of assistance for each additional month of service. Makes such veterans eligible for educational loans.

Establishes a delimiting period of ten years after discharge or release from active duty for completing a program of education unless such period is interrupted by a physical or mental disability which prevents completion. Excludes periods of capture from the delimiting period. Directs the Administrator of Veterans' Affairs to pay each eligible, participating veteran the cost of tuition and a monthly subsistence allowance.

Establishes an educational benefits program for persons serving on active duty who have completed six years of active duty. Requires such persons to participate for at least 12 consecutive months except as specified. Requires participants to agree to a monthly deduction from such person's military pay as a contribution to such program. Provides for a refund of such contributions upon disenrollment, discharge, release, or death. Authorizes the Secretary of Defense to contribute to the fund of any participant any amount necessary to encourage persons to remain in the armed forces.

Entitles each participant to 36 monthly benefit payments. Sets forth the formula for computing the amount of such payments. Permits eligible veterans to transfer any educational benefits to such veterans' spouse or children. Establishes a delimiting period of ten years after discharge or release for educational assistance benefits.

Requires the Administrator and the Secretary to report to the appropriate committees of Congress on their respective plans for implementing the educational assistance benefits program. Prohibits participation in both the career service person's education assistance program and other specified educational assistance after a specified time.

Title II: Educational Leave of Absences for Members of the Armed Forces - Permits the Secretary to grant any eligible member a leave of absence from such member's military duties to permit such member to pursue a program of education for up to 12 months. Sets forth the impact of such leave of absence upon the payment of basic pay, determining eligibility for retirement pay, and upon time in grade for promotion purposes.