Veterans' Equity in Education Act of 2006 - Amends the Higher Education Act of 1965 with respect to calculation of financial assistance for which a student receiving veterans' education benefits may be eligible. Reduces the factor in the eligibility formula representing estimated educational financial assistance already received by the student by the amount of military pay deductions for such benefits made by or on behalf of the student while on active duty in the U.S. armed forces or in the Selective Reserve.
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