Disbursement of educational awards
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(a) In generalAmounts in the Trust shall be available—
(1)
to repay student loans in accordance with subsection (b);
(2)
to pay all or part of the cost of attendance or other educational expenses at an institution of higher education in accordance with subsection (c);
(3)
to pay expenses incurred in participating in an approved school-to-work program in accordance with subsection (d);
(4)
to pay expenses incurred in enrolling in an educational institution or training establishment that is approved under chapter 36 of title 38, or other applicable provisions of law, for offering programs of education, apprenticeship, or on-job training for which educational assistance may be provided by the Secretary of Veterans Affairs; and
(5)
to pay interest expenses in accordance with regulations prescribed pursuant to subsection (e).
(b) Use of educational award to repay outstanding student loans
(1) Application by eligible individualsAn eligible individual under section 12602 of this title who desires to apply the national service educational award of the individual, an eligible individual under section 12602(a) of this title who served in a summer of service program and desires to apply that individual’s summer of service educational award, or an eligible individual under section 12602(a) of this title who served in a silver scholar program and desires to apply that individual’s silver scholar educational award, to the repayment of qualified student loans shall submit, in a manner prescribed by the Corporation, an application to the Corporation that—
(A)
identifies, or permits the Corporation to identify readily, the holder or holders of such loans;
(B)
indicates, or permits the Corporation to determine readily, the amounts of principal and interest outstanding on the loans;
(C)
specifies, if the outstanding balance is greater than the amount disbursed under paragraph (2), which of the loans the individual prefers to be paid by the Corporation; and
(D)
contains or is accompanied by such other information as the Corporation may require.
(2) Disbursement of repayments
Upon receipt of an application from an eligible individual of an application that complies with paragraph (1), the Corporation shall, as promptly as practicable consistent with paragraph (5), disburse the amount of the national service educational award, the summer of service educational award, or the silver scholar educational award, as applicable, that the eligible individual has earned. Such disbursement shall be made by check or other means that is payable to the holder of the loan and requires the endorsement or other certification by the eligible individual.