To amend title 38, United States Code, with respect to veterans education and employment programs, and for other purposes.

Extends through 1994 (currently 1991) the provision of employment and training assistance for disabled and Vietnam veterans under Federal veterans' benefits provisions.

Directs the Secretary of Veterans Affairs to provide educational and vocational counseling and related services to: (1) individuals eligible for educational assistance under the armed forces educational assistance program; (2) individuals discharged or released from active duty under conditions other than dishonorable within the past year; and (3) individuals serving on active duty and within 180 days of being released or discharged under conditions other than dishonorable.

Requires the Secretary to make available information concerning the need for general education and for trained personnel in the various crafts, trades, and professions. Requires the Secretary to acquaint all eligible individuals with the availability of counseling services offered under this Act.

Provides entitlement for a veterans' rehabilitation program for persons receiving outpatient medical care or treatment for a service-connected disability pending discharge from active military service when the Secretary has determined the hospital providing such care or treatment is under contract with or under the jurisdiction of the Secretary or the Secretary of the military department concerned.

Includes the payment of handling fees by the Secretary as part of the scope and services authorized to be provided to a veterans' rehabilitation program.

Authorizes the payment of a subsistence allowance to veterans pursuing a vocational rehabilitation program in a Federal, State, or local governmental agency. (Currently, such allowance is offered only to veterans pursuing a program at the Federal level.)

Repeals certain reporting requirements concerning post-Vietnam era veterans' educational assistance and education loan defaults.

Authorizes the Secretary to enter into agreements with individuals whereby the individual agrees to perform work-study services in return for the elimination of overpayments made by the Department to such individuals during such individual's participation in a Department-sponsored benefits program. Authorizes the Secretary to waive certain hours and length of service limitations, the payment of interest and administrative costs, or deductions from future benefit payments for such individuals. Prohibits any such work-study services agreement from continuing after such indebtedness has been repaid. Requires the Secretary to compensate an individual at an appropriate hourly wage if such individual performs work in excess of his or her indebtedness.

Amends the Post-Vietnam Veterans' Educational Assistance Program to authorize the Secretary to approve the pursuit of flight training as a benefit under such Program if: (1) such training is generally accepted as necessary for attaining a recognized vocational objective in aviation; (2) the individual possesses a valid pilot's license and meets medical requirements necessary for a commercial pilot's license; and (3) the flight courses meet Federal Aviation Administration standards and are approved by the FAA and the State approving agency. Provides benefit amounts and charges to be made against an individual's basic educational assistance allotment for the payment of such flight training assistance.

Redesignates the Secretary of Labor's Committee on Veterans' Employment as the Advisory Committee on Veterans Employment and Training within the Department of Labor. Requires the Committee to: (1) assess the employment and training needs of veterans; (2) determine the extent to which the programs and activities of the Department of Labor are meeting such needs; and (3) carry out activities necessary to make specified reports and recommendations in connection with the future provision of such employment and training needs to eligible veterans. Requires the Committee to make annual reports and recommendations to the Secretary of Labor, to be forwarded to the Congress together with the Secretary's comments.

Extends the provision of veterans' readjustment appointments to disabled veterans and certain veterans of the Vietnam era and of the post-Vietnam era who are qualified for such employment and advancement. (Currently, such appointments are limited to certain veterans of the Vietnam era and post-Vietnam era only.) Allows such appointments to extend through the GS-11 level (currently, GS-9 only with a limited exception). States that veterans shall be eligible for such appointments without regard to the number of years of education completed. Provides that veterans entitled to veterans' disability compensation or whose discharge or release from active duty was for a disability incurred or aggravated in line of duty shall be given a preference over other veterans for such appointments. Provides time limitations for the receiving of such appointments and exempts from such limitations veterans having a service-connected disability rated at 30 percent or more.