Veterans and Service Members Education Benefits Act of 1980

Veterans' and service members Education Benefits Act of 1980 - Establishes a Veterans' and service members Education Benefits Program for veterans who have served on active duty for a period of two years or more after December 31,1980. Entitles eligible veterans to one and one-half months of educational assistance for each month of such veteran's service and makes such veterans eligible for education loans.

Provides that such veterans are eligible for educational assistance for the ten-year period following their discharge or release date. Sets forth procedures extending any applicable time period for such veterans who are prevented from initiating or completing a program of education under certain circumstances.

Directs the Administrator of Veterans' Affairs to pay an educational assistance allowance to eligible veterans in the program.

Makes any person who, after December 31, 1980, performs four years of service as a member of the Selected Reserve eligible for educational assistance limited to a maximum of 36 months, and an educational assistance allowance equal to one-half that of an eligible veteran.

Grants to eligible veterans, who have served on active duty for eight years or more, the right to transfer educational assistance entitlements to such veterans' spouses or children in such manner as prescribed by the Administrator and under limitations set forth in this Act.

Increases the range of amounts of monthly deductions eligible veterans shall be allowed to contribute to the Post-Vietnam Era Veterans Education Account and the limitation on the maximum amount of such contributions.

Authorizes the Secretary of Defense to make contributions to such fund on behalf of any participant, thereby reducing such participant's deductions, when deemed necessary to encourage such persons to enter or remain in the Armed Forces.

Terminates the Veterans' Educational Assistance program after December 31, 1989, or four years after any eligible veteran's discharge or release date, whichever is later.