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FPCD-81-45 1 (1981-09-17)

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                      COMPTROLLER GENERAL OF THE UNITED STATES
                               WASHINGTON D.C. 20548



 B-204142
                                                SEPTEMBER 17, 1981


 The Honorable G. V. Montgomery
 Chairman, House Committee on
 Veterans' Affairs
 House of Representatives                         116379
 Dear Mr. Chairmans

      Subject: Alternatives for Funding a GI Bill (FPCD-81-45)

      This responds to your request of April 8, 1981, that we
provide our views on alternative funding for a GI Bill. As ar-
ranged with your office, we are combining your request with that
of Chairman Robert Edgar's Subcommittee on Education, Training,
and Employment (Mar. 20, 1981). As you requested, we did not
obtain agency comments.

      Since the end of World War II, millions of Gs were provided
 financial assistance for postsecondary education through several
 01 Bills. The purpose of these benefits was to assist the GI's
 transition into a civilian career. The last GI Bill for Vietnam-
 era veterans expired in 1976. Although it was not the intent of
 the GI Bill, during the early years of the All-Volunteer Force
 the military apparently used it as a recruiting tool to attract
 high-quality recruits capable of scoring in the top categories of
 the armed services entrance exams. Since its expiration, there
 has been considerable discussion on the need to reinstitute a
 01 Bill, and the Congress is currently cQnsidering this option.

      The Congress has recently provided substantial support for
 postsecondary education assistance through the Department of
 Education's (ED's) student assistance programs. Since 1974, ap-
 propriations for these programs have increased from $1.6 billion
 to $5.8 billion in 1981. Enough data exists to suggest that the
 high-quality high-school graduates the military is seeking to
 recruit are currently opting for a postsecondary education--
 often funded by the Federal Government. This report suggests
 that using a portion of ED's student assistance appropriations
 to finance a GI Bill would reduce the impact on the Federal bud-
 get and could, at least partially, improve the armed services'
 ability to attract the high-quality youth they need.

                                                            (961143)


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