Establishment of the Public Service Educational Assistance Program

(a) In General The Secretary shall establish a Public Service Educational Assistance Program to provide educational assistance to eligible dependents of public service employees. (b) Educational assistance Educational assistance provided to an eligible dependent under this Act— (1) shall be in an amount that covers the cost of tuition, fees, and course materials and related items described in section 472(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)(2)) for a program of study at an applicable postsecondary educational institution located in a State where a dependent is eligible to receive in-State tuition; and (2) may be provided for not longer than 4 academic years. (c) Method of distribution (1) In General The Secretary shall pay to each applicable postsecondary educational institution that has an agreement with the Secretary under paragraph (2) such sums as may be necessary to pay each eligible dependent described in subsection (a) for each period of time during which that eligible dependent is in attendance at an applicable postsecondary educational institution, an amount of educational assistance described in subsection (b) for which that eligible dependent is eligible. (2) Agreements The Secretary shall enter into agreements with applicable postsecondary educational institutions that desire to participate in the distribution method described in paragraph (1) for funds under this section. (3) Distribution of Grants to Dependents Payments under this section shall be made in accordance with regulations promulgated by the Secretary for such purpose, in such manner as will best accomplish the purpose of this section. Any disbursement allowed to be made by crediting the dependent’s account shall be limited to tuition and fees, and the cost of course materials and related items described in section 472(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 1087ll(a)(2)).