110 STAT. 3328 PUBLIC LAW 104-275—OCT. 9, 1996 "(1) is a participant on the date of the enactment of the Veterans' Benefits Improvements Act of 1996 in the educational benefits program provided by chapter 32 of this title; "(2) is serving on active duty (excluding the periods referred to in section 3202(1)(C) of this title) on such date; "(3) before applying for benefits under this section, has completed the requirements of a secondary school diploma (or equivalency certificate) or has successfiiliy completed the equivalent of 12 semester hours in a program of education leading to a standard college degree; "(4) if discharged or released from active duty during the one-year period specified in paragraph (5), is discharged or released therefrom with an honorable discharge; and "(5) during the one-year period beginning on the date of the enactment of the Veterans' Benefits Improvements Act of 1996, makes an irrevocable election to receive benefits under this section in lieu of benefits under chapter 32 of this title, pursuant to procedures which the Secretary of each militsuy department shall provide in accordance with regulations prescribed by the Secretary of Defense for the purpose of carrying out this section or which the Secretary of Transportation shall provide for such purpose with respect to the Coast Guard when it is not operating as a service in the Navy; may elect to become entitled to basic educational assistance under this chapter. "(b) With respect to an individual who makes an election under subsection (a) to become entitled to basic education assistance \mder this chapter— "(1) the basic pay of the individusJ shall be reduced (in a manner determined by the Secretary of Defense) until the total amount by which such basic pay is reduced is $1,200; or "(2) to the extent that basic pay is not so reduced before the individual's discharge or release from active duty as specified in subsection (a)(4), the Secretary shall collect from the individual an amount equal to the difference between $1,200 and the total amount of reductions under paragraph (1), which shall be paid into the Treasury of the United States as miscellaneous receipts. "(c)(1) Except as provided in paragraph (3), an individual who is enrolled in the educational benefits program provided by chapter 32 of this title and who makes the election described in subsection (a)(5) shall be disenroUed from such chapter 32 program as of the date of such election. "(2) For each individual who is disenrolled from such program, the Secretary shall refund— "(A) to the individual, as provided in section 3223(b) of this title and subject to subsection (b)(2) of this section, the unused contributions made by the individual to the Post-Vietnam Era Veterans Education Accoxmt established pursuant to section 3222(a) of this title; and "(B) to the Secretary of Defense the unused contributions (other than contributions made under section 3222(c) of this title) made by such Secretary to the Account on behedf of such individual. "(3) Any contribution made by the Secretary of Defense to the Post-Vietnam Era Veterans Education Account pursuant to
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