This document is the first volume of a transcript of hearings before a U.S. House of Representatives Subcommittee of the Committee on Veterans' Affairs concerning proposed H.R. 1400--the Veterans' Educational Assistance Act of 1981. The Proposed Educational Assistance Act is an updated GI Bill, which would provide the following educational benefits: 80 percent of college tuition up to $2500 plus a $250 living allowance for 36 months for three years' military service or two years' military service plus four years in the active Reserve or National Guard; a two-for-one savings plan for educational benefits for career military personnel; an educational leave-of-absence program; and transferability of educational benefits to a spouse or children for career military personnel with 16, or in some cases 12, years of service. The benefits are structured with the goal of increasing military service enlistments of high school graduates and retention of experienced middle-level personnel. Pros and cons of H.R. 1400's provisions are discussed during the hearings by various Senators and Representatives, Defense Department representatives, and high ranking officers of the branches of military service. Their oral testimony, as well as their prepared statements, are included in the document. (KC)