B-163543, JULY 2, 1968, 48 COMP. GEN. 5

B-163543: Jul 2, 1968

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EVEN IF THE COSTS ARE NOT IDENTICAL. THE INTERPRETATION IS ENTITLED TO GREAT WEIGHT UNDER THE RULE OF STATUTORY CONSTRUCTION. PARTICULARLY WHERE THE PROVISION WAS REENACTED. IT IS IMMATERIAL WHETHER A PAYMENT UNDER OTHER THAN CHAPTER 34 IS MADE TO AN EDUCATIONAL INSTITUTION. EMPLOYERS FOR ON-THE-JOB TRAINING TO EQUIP SELECTED PERSONS IN APPROPRIATE SKILLS ARE USED TO PAY COSTS CONSIDERED TUITION COSTS. SUCH A PAYMENT IS BARRED. IS BARRED UNDER THE LONGSTANDING CONSTRUCTION BY THE VETERANS ADMINISTRATION OF SECTION 1781 THAT SUCH A PAYMENT WOULD CONSTITUTE A DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY. CONCERNS TWO QUESTIONS WHICH HAVE BEEN PRESENTED TO THE VETERANS ADMINISTRATION (VA) FOR CONSIDERATION RELATING TO THE LEGALITY OF THE PAYMENT OF THE EDUCATIONAL ASSISTANCE ALLOWANCE AUTHORIZED BY CHAPTER 34 OF TITLE 38.

B-163543, JULY 2, 1968, 48 COMP. GEN. 5

VETERANS - EDUCATION - DUAL BENEFITS - PROHIBITION THE PROVISION IN 38 U.S.C. 1781, WHICH PROHIBITS THE GRANTING OF AN EDUCATIONAL ASSISTANCE ALLOWANCE OR SPECIAL TRAINING ALLOWANCE TO OR ON BEHALF OF AN ELIGIBLE PERSON OR VETERAN UNDER CHAPTER 34 OF TITLE 38, U.S. CODE, FOR ANY PERIOD OF ENROLLMENT IN A PROGRAM OF EDUCATION OR COURSE PAID FOR BY THE UNITED STATES UNDER "ANY OTHER PROVISION OF LAW," WHERE THE PAYMENT CONSTITUTES A ,DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY," HAVING BEEN UNIFORMLY AND CONSISTENTLY INTERPRETED BY THE VETERANS ADMINISTRATION TO MEAN PAYMENTS FOR THE SAME OR SIMILAR BENEFITS OR PURPOSES, EVEN IF THE COSTS ARE NOT IDENTICAL, THE INTERPRETATION IS ENTITLED TO GREAT WEIGHT UNDER THE RULE OF STATUTORY CONSTRUCTION, PARTICULARLY WHERE THE PROVISION WAS REENACTED, AND IT IS IMMATERIAL WHETHER A PAYMENT UNDER OTHER THAN CHAPTER 34 IS MADE TO AN EDUCATIONAL INSTITUTION. UNEMPLOYMENT RETRAINING - EFFECT ON VETERANS EDUCATIONAL BENEFITS TO THE EXTENT THAT THE MANPOWER DEVELOPMENT TRAINING ACT PROGRAM FUNDS MADE AVAILABLE BY AGREEMENT BETWEEN THE LABOR DEPARTMENT AND STATES, PRIVATE AND PUBLIC AGENCIES, AND EMPLOYERS FOR ON-THE-JOB TRAINING TO EQUIP SELECTED PERSONS IN APPROPRIATE SKILLS ARE USED TO PAY COSTS CONSIDERED TUITION COSTS, UNDER THE VETERANS ADMINISTRATION CONTEMPORANEOUS AND LONGSTANDING CONSTRUCTION OF 38 U.S.C. 1781, AND PRIOR SIMILAR PROVISIONS OF LAW, THE PAYMENT OF AN EDUCATIONAL ASSISTANCE ALLOWANCE TO A TRAINEE UNDER CHAPTER 34 OF TITLE 38, U.S. CODE, WOULD CONSTITUTE A DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY AND, THEREFORE, SUCH A PAYMENT IS BARRED. PUBLIC HEALTH SERVICE - EDUCATIONAL GRANTS - EFFECT ON VETERANS EDUCATIONAL BENEFITS WHEN SCHOLARSHIPS TO STUDENTS FROM PUBLIC HEALTH SERVICE GRANTS TO EDUCATIONAL INSTITUTIONS UNDER 42 U.S.C. 295G COVERS IN PART EITHER TUITION OR LIVING EXPENSES, OR BOTH, THE PAYMENT OF AN EDUCATIONAL ASSISTANCE ALLOWANCE UNDER CHAPTER 34 OF TITLE 38, U.S. CODE, IS BARRED UNDER THE LONGSTANDING CONSTRUCTION BY THE VETERANS ADMINISTRATION OF SECTION 1781 THAT SUCH A PAYMENT WOULD CONSTITUTE A DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY.

TO THE ADMINISTRATOR, VETERANS ADMINISTRATION, JULY 2, 1968:

YOUR LETTER OF FEBRUARY 9, 1968, CONCERNS TWO QUESTIONS WHICH HAVE BEEN PRESENTED TO THE VETERANS ADMINISTRATION (VA) FOR CONSIDERATION RELATING TO THE LEGALITY OF THE PAYMENT OF THE EDUCATIONAL ASSISTANCE ALLOWANCE AUTHORIZED BY CHAPTER 34 OF TITLE 38, U.S.C. AT THE SAME TIME EDUCATIONALLY ORIENTED BENEFITS ARE BEING PROVIDED UNDER A PROGRAM ADMINISTERED BY A DIFFERENT AGENCY OF THE GOVERNMENT (I.E., THE DEPARTMENT OF LABOR AND THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE). YOU STATE THAT ALTHOUGH YOU HAVE BROAD AUTHORITY FOR ADMINISTERING THE BENEFITS AUTHORIZED BY TITLE 38, WHERE THE EXPENDITURE OF APPROPRIATED FUNDS ADMINISTERED BY SEPARATE AGENCIES IS CONCERNED, THE MATTER PRESENTED CANNOT BE FINALLY RESOLVED WITHOUT OBTAINING OUR VIEWS THEREON.

SPECIFICALLY, YOU HAVE RECEIVED A REQUEST FROM THE DEPARTMENT OF LABOR AS TO WHETHER THE VETERANS EDUCATIONAL ASSISTANCE ALLOWANCE AUTHORIZED BY 38 U.S.C. CHAPTER 34, MAY BE PAID AT THE SAME TIME THE INDIVIDUAL IS RECEIVING ON-THE-JOB TRAINING UNDER A MANPOWER DEVELOPMENT TRAINING ACT PROGRAM AUTHORIZED BY TITLE II OF PUBLIC LAW 87-415 (42 U.S.C. 2581- 2602). YOU HAVE ALSO RECEIVED A SIMILAR QUESTION IN CONNECTION WITH A SITUATION WHERE A PERSON IS RECEIVING SCHOLARSHIP AID UNDER A PUBLIC HEALTH SERVICE SCHOLARSHIP GRANTS PROGRAM AUTHORIZED BY 42 U.S.C. 295G.

THE QUESTIONS YOU HAVE BEEN ASKED TO CONSIDER ARISE AS A RESULT OF THE PROVISIONS OF 38 U.S.C. 1781 WHICH READS AS FOLLOWS: NO EDUCATIONAL ASSISTANCE ALLOWANCE OR SPECIAL TRAINING ALLOWANCE SHALL BE PAID ON BEHALF OF ANY ELIGIBLE PERSON OR VETERAN UNDER CHAPTER 34 OR 35 OF THIS TITLE FOR ANY PERIOD DURING WHICH SUCH PERSON OR VETERAN IS ENROLLED IN AND PURSUING A PROGRAM OF EDUCATION OR COURSE PAID FOR BY THE UNITED STATES UNDER ANY PROVISION OF LAW OTHER THAN SUCH CHAPTERS, WHERE THE PAYMENT OF AN ALLOWANCE WOULD CONSTITUTE A DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY TO THE ELIGIBLE PERSON OR VETERAN OR TO HIS PARENT OR GUARDIAN IN HIS BEHALF. YOU ADVISE THAT THIS PROHIBITION WAS CARRIED FORWARD FROM PRIOR LAWS PROVIDING EDUCATIONAL OPPORTUNITIES FOR VETERANS, AND THE VA REGULATIONS IMPLEMENTING THE EARLIER LAWS INTERPRETED THE STATUTORY PROVISION AS APPLYING TO ANY COURSE PAID FOR IN WHOLE OR IN PART BY THE UNITED STATES.

YOU STATE THAT THE FOLLOWING IS A BRIEF RESUME OF YOUR UNDERSTANDING OF THE TWO NON-VA PROGRAMS WHICH ARE INVOLVED:(A) UNDER THE SPECIFIC AUTHORITY CONTAINED IN 42 U.S.C. 2584, THE DEPARTMENT OF LABOR CAN ENTER INTO AGREEMENTS WITH STATES, PRIVATE AND PUBLIC AGENCIES, AND EMPLOYERS, ETC., WHEREBY MDTA FUNDS ARE PAID FOR THE COST OF INSTRUCTION, MATERIALS, SPOILAGE, AND OTHER EXPENSES RELATING TO ON-THE JOB TRAINING NEEDED TO EQUIP SELECTED PERSONS WITH THE APPROPRIATE SKILLS. TRAINEES ARE PAID BY EMPLOYERS FOR PRODUCTIVE WORK. EMPLOYERS, HOWEVER, ARE NOT REIMBURSED FOR THIS EXPENSE. UNDER CERTAIN CIRCUMSTANCES, THE TRAINEES WILL BE PAID A TRAVEL AND SUBSISTENCE ALLOWANCE, PAID DIRECTLY TO THEM BY THE FEDERAL GOVERNMENT, WHEN THEIR TRAINING IS AWAY FROM HOME. WITH THE EXCEPTION OF THESE SPECIAL CASES, NO FEDERAL FUNDS WOULD BE PAID DIRECTLY TO THE INDIVIDUAL TRAINEE, OTHER THAN THE VETERANS BENEFIT TO WHICH HE WOULD BE ENTITLED. (B) PUBLIC LAW 89-290 (42 U.S.C. 295G) AUTHORIZED THE SURGEON GENERAL TO MAKE SCHOLARSHIP GRANTS TO CERTAIN PUBLIC OR OTHER NON-PROFIT SCHOOLS OF MEDICINE, OSTEOPATHY, DENTISTRY, OPTOMETRY, PODIATRY AND PHARMACY FOR SCHOLARSHIPS TO BE AWARDED ANNUALLY BY THE SCHOOL. SCHOLARSHIPS FOR INDIVIDUALS ARE AWARDED BY THE SCHOOLS ONLY TO THOSE FROM LOW-INCOME FAMILIES WHO, WITHOUT SUCH FINANCIAL ASSISTANCE, COULD NOT PURSUE A COURSE AT THE SCHOOL FOR THAT YEAR. GRANTS TO THE SCHOOLS MAY BE PAID IN ADVANCE OR BY WAY OF REIMBURSEMENT. THE LUMP SUM GRANT IS PAID TO THE INSTITUTION. THE SCHOOL SELECTS THE STUDENTS TO WHOM SCHOLARSHIPS ARE GRANTED. THE AMOUNT OF THE INDIVIDUAL SCHOLARSHIP IS DETERMINED ON THE BASIS OF THE STUDENT'S NEED FOR FINANCIAL AID TO MEET EXPENSES OF TUITION, BOOKS, SUPPLIES, HOUSING AND DEPENDENTS. THE SCHOOLS ARE NOT REQUIRED TO DENY SCHOLARSHIPS TO VETERANS WHO ARE RECEIVING EDUCATIONAL ASSISTANCE FROM THE VA. THE AMOUNT RECEIVED WOULD, HOWEVER, BE A FACTOR IN DETERMINING THE EXTENT OF HIS NEED FOR SCHOLARSHIP AID. AT THE END OF THE YEAR THE SCHOOL REPORTS TO PUBLIC HEALTH SERVICE THE NUMBER OF STUDENTS TO WHOM SCHOLARSHIPS HAVE BEEN AWARDED AND THE AMOUNT OF EACH SCHOLARSHIP. IF THE TOTAL OF THE SCHOLARSHIPS AWARDED EXCEEDS THE AMOUNT OF THE GRANT, REIMBURSEMENT IS AUTHORIZED. IF THE FULL AMOUNT OF THE GRANT HAS NOT BEEN EXPENDED, THE SURPLUS REVERTS TO THE FEDERAL TREASURY. IN ANY EVENT, HOWEVER, FEDERAL FUNDS WOULD NOT BE PAID DIRECTLY TO THE INDIVIDUAL STUDENT, OTHER THAN THE VETERANS BENEFITS TO WHICH HE WOULD BE ENTITLED.

YOU STATE THAT THE SPECIFIC QUESTION WHICH MUST BE RESOLVED IS WHETHER THE TWO NON-VA PROGRAMS IN QUESTION ARE IN FACT PAID FOR IN WHOLE OR IN PART BY THE UNITED STATES TO THE EXTENT THAT THE PAYMENT OF THE VETERANS EDUCATIONAL ALLOWANCE AUTHORIZED BY CHAPTER 34 OF TITLE 38 WOULD CONSTITUTE A DUPLICATION OF BENEFITS FROM THE FEDERAL TREASURY SO AS TO BE BARRED BY THE PROVISIONS OF THE ABOVE-QUOTED 38 U.S.C. 1781. OUR CONCLUSIONS ON THIS MATTER ARE REQUESTED.

THE PURPOSE OF THE EDUCATIONAL ASSISTANCE ALLOWANCE AUTHORIZED BY CHAPTER 34 OF TITLE 38, IS TO ENABLE THE RECIPIENT TO "MEET, IN PART, THE EXPENSES OF HIS SUBSISTENCE, TUITION, FEES, SUPPLIES, BOOKS, EQUIPMENT, AND OTHER EDUCATIONAL COSTS.' (38 U.S.C. 1681 (A) (

IT IS OUR VIEW THAT IT IS IMMATERIAL IN THE CASE OF A VETERAN WHOSE EDUCATION IS BEING PAID FOR--- IN WHOLE OR IN PART--- BY THE UNITED STATES UNDER A PROVISION OF LAW OTHER THAN CHAPTER 34 OF TITLE 38, UNITED STATES CODE, WHETHER THE PAYMENT INVOLVED IS MADE DIRECTLY TO THE VETERAN (OR TO HIS PARENT OR GUARDIAN ON HIS BEHALF) OR DIRECTLY TO THE ENTITY OR ORGANIZATION PROVIDING HIS EDUCATION, INSOFAR AS DETERMINING WHETHER THE PAYMENT OF AN EDUCATIONAL ASSISTANCE ALLOWANCE UNDER CHAPTER 34 WOULD CONSTITUTE A DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY IS CONCERNED. IN OTHER WORDS THE FACT THAT FEDERAL FUNDS USED TO PAY FOR A VETERAN'S EDUCATION UNDER PROVISIONS OF LAW OTHER THAN CHAPTER 34 OF TITLE 38 ARE PAID TO OTHER THAN THE VETERAN (OR HIS PARENT OR GUARDIAN ON HIS BEHALF), WOULD NOT BE CONTROLLING IN CONNECTION WITH DETERMINING WHETHER THE PAYMENT OF AN EDUCATIONAL ASSISTANCE ALLOWANCE TO SUCH VETERAN (OR HIS PARENT OR GUARDIAN ON HIS BEHALF) UNDER CHAPTER 34 WOULD CONSTITUTE A DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY.

TO HOLD THAT 38 U.S.C. 1781 IS NOT FOR APPLICATION UNLESS THE FEDERAL FUNDS USED TO PAY FOR A COURSE OF EDUCATION BEING PURSUED BY A VETERAN UNDER A PROVISION OF LAW OTHER THAN CHAPTER 34 OF TITLE 38 ARE PAID DIRECTLY TO SUCH VETERAN (OR TO HIS PARENT OR GUARDIAN ON HIS BEHALF) COULD HAVE THE EFFECT OF COMPLETELY CIRCUMVENTING THE PROVISIONS OF 38 U.S.C. 1781 IN THAT IT WOULD PERMIT THE RECEIPT OF DUPLICATE BENEFITS.

IN ANY EVENT, AS INDICATED IN YOUR LETTER, THE PROHIBITION CONTAINED IN 38 U.S.C. 1781 WAS CARRIED FORWARD FROM PRIOR LAWS PROVIDING EDUCATIONAL OPPORTUNITIES. ONE OF THE PRIOR LAWS WAS THE WAR ORPHANS' EDUCATIONAL ASSISTANCE ACT OF 1956, PUBLIC LAW 634, 84TH CONGRESS, 70 STAT. 420, SECTION 502 OF WHICH CONTAINED PROVISIONS ALMOST IDENTICAL WITH 38 U.S.C. 1781. THE LEGISLATIVE HISTORY OF SECTION 502 DISCLOSES THAT THE PURPOSE OF THE PROVISION IS TO PROHIBIT THE PAYMENT OF ALLOWANCES THAT WILL BE PAID UNDER THE ACT INVOLVED FOR PERIODS DURING WHICH THE EDUCATION OF THE ELIGIBLE PERSON IS BEING PAID FOR BY THE UNITED STATES. SEE PAGE 13, S.REPT. NO. 2063, AND PAGE 24, H.REPT. NO. 1974, OF THE 84TH CONG., ON THE WAR ORPHANS' EDUCATIONAL ACT OF 1956, SUPRA.

ALTHOUGH IT IS NOT COMPLETELY CLEAR FROM 38 U.S.C. 1781 OR ITS LEGISLATIVE HISTORY OR FROM THE LEGISLATIVE HISTORY OF SECTION 502, WHAT THE CONGRESS INTENDED, WE UNDERSTAND THAT THE VA HAS ALWAYS INTERPRETED 38 U.S.C. 1781 AND SIMILAR PROVISIONS IN EARLIER LAWS AS PRECLUDING THE PAYMENT OF AN EDUCATIONAL ASSISTANCE ALLOWANCE (OR SIMILAR ALLOWANCE) TO AN ELIGIBLE PERSON OR ELIGIBLE VETERAN PURSUING A COURSE OF EDUCATION PAID FOR IN WHOLE OR IN PART BY THE UNITED STATES UNDER ANY PROVISION OF LAW (OTHER THAN THE INVOLVED CHAPTER OF TITLE 38) IF THE PAYMENT INVOLVED (UNDER SUCH OTHER LAW) COVERED IN WHOLE OR IN PART EITHER LIVING EXPENSES OR TUITION, OR BOTH, EVEN THOUGH THE PAYMENT UNDER SUCH OTHER PROVISION OF LAW WAS NOT MADE DIRECTLY TO THE ELIGIBLE PERSON OR VETERAN OR TO HIS PARENT OR GUARDIAN ON HIS BEHALF.

THE PHRASE "DUPLICATION OF BENEFITS" COULD BE INTERPRETED AS PERTAINING ONLY TO PAYMENTS COVERING IDENTICAL COSTS. HOWEVER, THE VA HAS APPARENTLY INTERPRETED "DUPLICATION OF BENEFITS" IN ITS BROADEST SENSE AND THUS CONSTRUED IT TO MEAN PAYMENTS FOR THE SAME (OR SIMILAR) BENEFITS OR PURPOSES, EVEN THOUGH THE PAYMENTS DO NOT COVER IDENTICAL COSTS. IN OTHER WORDS, AS INDICATED ABOVE, THE VA HAS INTERPRETED THE PHRASE IN QUESTION TO PRECLUDE PAYMENT OF AN EDUCATIONAL ASSISTANCE ALLOWANCE UNDER CHAPTER 34 TO A VETERAN WHOSE TUITION OR LIVING EXPENSES (OR BOTH), IS BEING PAID, IN PART, FROM FEDERAL FUNDS (UNDER SOME OTHER PROVISION OF LAW), EVEN THOUGH THE PAYMENT UNDER THE OTHER FEDERAL LAW AND THE EDUCATIONAL ASSISTANCE ALLOWANCE PAYMENT WOULD NOT COVER THE SAME IDENTICAL PORTION OF SUCH EXPENSES.

IT IS A WELL-ESTABLISHED RULE OF STATUTORY CONSTRUCTION THAT THE CONTEMPORANEOUS CONSTRUCTION PLACED ON AN AMBIGUOUS STATUTE BY THE OFFICERS OR DEPARTMENTS CHARGED WITH ITS ENFORCEMENT AND ADMINISTRATION IS TO BE CONSIDERED AND GIVEN WEIGHT IN CONSTRUING THE STATUTE, ESPECIALLY IF SUCH CONSTRUCTION HAS BEEN UNIFORM AND CONSISTENT AND HAS BEEN OBSERVED AND ACTED ON AND ACQUIESCED IN FOR A LONG TIME. ACCORDING TO THE JUDICIAL AUTHORITIES, SUCH CONSTRUCTION SHOULD NOT BE DISREGARDED OR OVERTURNED EXCEPT FOR THE MOST COGENT REASONS AND EVEN WHERE THE EXECUTIVE CONSTRUCTION IS UNSUPPORTED BY LAW, IT WILL BE DISTURBED ONLY WHEN THE ISSUES PRESENTED REQUIRE IT. ALSO, EXECUTIVE CONSTRUCTION IS ENTITLED TO ADDITIONAL WEIGHT WHERE IT HAS BEEN IMPLIEDLY INDORSED BY THE LEGISLATURE, AS BY THE REENACTMENT OF THE STATUTE, OR THE PASSAGE OF A SIMILAR ONE IN THE SAME OR SUBSTANTIALLY SAME TERMS (SUCH AS IS TRUE IN THE INSTANT CASE). 82 C.J.S. STATUTES 359.

ACCORDINGLY, WE WOULD NOT DISAGREE WITH YOUR ADMINISTRATION'S CONTEMPORANEOUS AND LONG STANDING INTERPRETATION OF THE PROVISIONS OF LAW NOW APPEARING IN 38 U.S.C. 1781.

THEREFORE, WHETHER THE TWO NON-VA PROGRAMS INVOLVED HERE ARE IN FACT PAID FOR IN WHOLE OR IN PART BY THE UNITED STATES, TO THE EXTENT THAT PAYMENT OF THE VETERANS' EDUCATIONAL ASSISTANCE ALLOWANCE AUTHORIZED BY CHAPTER 34 OF TITLE 38 WOULD CONSTITUTE A DUPLICATION OF BENEFITS FROM THE FEDERAL TREASURY SO AS TO BE BARRED BY THE PROVISIONS OF 38 U.S.C. 1781, DEPENDS UPON WHETHER THE FEDERAL FUNDS INVOLVED IN THE NON-VA PROGRAMS ARE TO PROVIDE IN WHOLE OR IN PART AN ALLOWANCE FOR LIVING EXPENSES OR TUITION, OR BOTH.

CONCERNING THE MDTA PROGRAM, YOUR LETTER DISCLOSES THAT MDTA PROGRAM AGREEMENTS MAY PROVIDE THAT MDTA FUNDS MAY BE USED TO PAY FOR THE COST OF INSTRUCTION, MATERIALS, SPOILAGE AND OTHER EXPENSES RELATED TO ON-THE-JOB TRAINING NEEDED TO EQUIP SELECTED PERSONS WITH THE APPROPRIATE SKILLS. THUS, UNDER THE MDTA PROGRAM FEDERAL FUNDS MAY BE USED TO PAY COSTS THAT, IN EFFECT, ARE TUITION COSTS. HENCE, UNDER THE VA'S CONTEMPORANEOUS AND LONG STANDING ADMINISTRATIVE CONSTRUCTION OF 38 U.S.C. 1781 AND PRIOR SIMILAR PROVISIONS OF LAW, IT WOULD APPEAR THAT TO THE EXTENT THAT MDTA FUNDS ARE USED TO PAY THE COSTS ENUMERATED ABOVE ON ACCOUNT OF A TRAINEE, THE PAYMENT OF AN EDUCATIONAL ASSISTANCE ALLOWANCE TO SUCH TRAINEE UNDER CHAPTER 34 OF TITLE 38 WOULD CONSTITUTE A DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY AND HENCE BE BARRED BY 38 U.S.C. 1781.

AS TO THE SCHOLARSHIPS AWARDED BY SCHOOLS FROM GRANTS MADE TO SUCH SCHOOLS BY THE SURGEON GENERAL UNDER 42 U.S.C. 295G, THE SCHOLARSHIPS ARE TO COVER SUCH PORTION OF THE STUDENT'S TUITION, FEES, BOOKS, EQUIPMENT, AND LIVING EXPENSES AT THE SCHOOL, BUT NOT TO EXCEED $2,500 FOR ANY YEAR AS THE SCHOOL MAY DETERMINE THE STUDENT NEEDS FOR SUCH YEAR ON THE BASIS OF HIS REQUIREMENTS AND FINANCIAL RESOURCES. (42 U.S.C. 295G (C) (2) ). THUS, THE PUBLIC HEALTH SERVICE SCHOLARSHIP GRANTS MAY COVER TUITION AND LIVING EXPENSES. ACCORDINGLY, TO THE EXTENT THAT A SCHOLARSHIP AWARDED TO A STUDENT UNDER THE PHS GRANTS PROGRAM AUTHORIZED BY 42 U.S.C. 295G COVERS IN PART EITHER TUITION OR LIVING EXPENSES OR BOTH, THE PAYMENT OF AN EDUCATIONAL ASSISTANCE ALLOWANCE UNDER CHAPTER 34 WOULD (IN LIGHT OF WHAT IS STATED ABOVE) CONSTITUTE A DUPLICATION OF BENEFITS PAID FROM THE FEDERAL TREASURY AND HENCE BE BARRED BY 38 U.S.C. 1781.