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Understanding the Treatment and Processing of Federal Educational VA Benefits

Understanding the Treatment and Processing of Federal Educational VA Benefits. University of Louisville Ann Kirwan, Bryan Trautwein & Ron’a Thomas. April 12 th , 2007. University of Louisville. 4 Year Public Institution 5 Careers Undergraduate Graduate Medical Dental Law

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Understanding the Treatment and Processing of Federal Educational VA Benefits

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  1. Understanding the Treatment and Processing of Federal Educational VA Benefits University of Louisville Ann Kirwan, Bryan Trautwein & Ron’a Thomas April 12th, 2007

  2. University of Louisville • 4 Year Public Institution • 5 Careers • Undergraduate • Graduate • Medical • Dental • Law • Enrollment: 21,848 (Fall 2006) • About 11,000 Receive Student Aid • About 350 Students Receiving VA Benefits (2007 Aid Year) • 230 are Federal Student Aid Applicants

  3. Agenda • Federal VA Educational Benefits Overview • Programs • Payment Rate Overview • Kickers • Institutional Knowledge • Federal VA Benefits Processing at UofL • VA Benefits & Financial Aid • Collecting VA Information • FAFSA/ISIR • UofL Financial Aid Processing • Impact on Federal Aid • Packaging and Awarding Examples • Questions

  4. Federal VA Benefits Overview

  5. VA Benefit Programs • Montgomery GI Bill—Active Duty 30 • Montgomery GI Bill—Selected Reserve 1606 • Dependents Educational Assistance 35 • Reserve Educational Assistance Program 1607 • Vocational Rehabilitation and Employment 31 • Others

  6. VA Benefits Programs • Montgomery GI Bill (MGIB) - Active Duty (Chapter 30) • Initial active duty after 6/30/85 • $1,200 pay reduction • 36 months of entitlement • Expires 10 years from date of separation • Eligible for College Fund & $600 Buy –up

  7. VA Benefits Programs • Montgomery GI Bill-Selected Reserve (MGIB/SR) - (Chapter 1606) • 6 year selected reserve/national guard obligation (Mid 1985 - present) • Complete Initial Active Duty Training • In good standing with unit • 36 months of entitlement • 14 years of entitlement from date of eligibility or when reservist leaves selected reserve

  8. VA Benefits Programs • Reserve Educational Assistance Program (REAP-Chapter 1607) • Active Duty Requirement (Post 9/2001) • National Guard eligible if Section 502 • Eligibility begins at 90 days • Eligibility ends when person leaves selected reserves • Pay is based on number of continuous days served on active duty

  9. VA Benefits Programs • Vocational Rehabilitation and Employment (Chapter 31) • Veterans with a service connected disability • Vocational Rehabilitation counseling required • 48 months of entitlement • VA pays tuition, books, supplies & monthly stipend • Only pays for education if it is necessary for employment goal

  10. VA Benefits Programs • Veterans Education Assistance Program (VEAP-Chapter 32)* • Entered service between 1/1/1977 and 6/30/1985 • Contributed $25 to $2,700 • Entitlement is 1-36 months depending on number of monthly contributions • Has 10 years from separation date to use benefits • Monthly payments are based on amount of contributions *No current students

  11. VA Benefits Programs • Other VA Programs • Educational Assistance Test Program (901) • National Call To Service • Post Vietnam Era Educational Assistance Program (VEAP) • Restored Entitlement Program for Survivors

  12. VA Benefits Overview • General Payment Rules for VA Programs • Payments generally made to the student • Payments generally made monthly • Payments affected by • The program • The student’s “training time” • Kickers, Buy-up’s, Dependents, & active duty status

  13. Payment Rates Eff. 10/1/2006 -These rates will change on 10/1/2007

  14. Payment Rates Eff. 10/1/2006 -These rates will change on 10/1/2007

  15. VA Benefits Kickers • Money paid in addition to the $1,200 for MGIB Chapter 30 • College Fund • Qualifications established by military branches • Part of the recruitment package • Based on critical occupation specialty • Payments are added on to MGIB monthly benefits • Up to $200 a month

  16. VA Benefits Kickers Continued • $600 Contribution Buy-Up (Ch. 30) • Service person contributes in increments of $20 up to $600 a month • Contribution of $600 adds an additional $150 to the monthly full time MGIB payment • Must submit Leave and Earnings Statement (LES) indicating monthly payments or receipt of $600 lump sum payment

  17. VA Benefits Kickers Continued • Chapter 1606 Kicker • Recruitment Incentive • Qualification is based on branch of service and job specialty • Rate is $100, $200 or $350 a month in addition to monthly MGIB/SR rate • Must submit copy of kicker contract

  18. Federal VA Benefits Processing

  19. Institutional Knowledge • FAFSA indicators • VA monthly amounts reported • Answer yes to veteran question • Student’s contact VA Certifying Official • Registrar’s Office at UofL • Use of system tracking for staff and processing purposes • 3rd party payments • VA payments • Interoffice communication • Registrar, Financial Aid & Student Financials

  20. Institutional Responsibility • Regardless of the amounts included on a student’s FAFSA/ISIR, schools are responsible for the proper treatment of all VA benefits that they are aware of or should be aware of* • *FSA PowerPoint 2006 Working with Veterans Affairs to Help Students (Dan Klock & Bill Susling)

  21. UofL VA Benefits Processing • First Time VA Applicants • Chapter 30 • Chapter 1606 • Chapter 1607 • Chapter 35 • Chapter 31 • Transfer Student VA Benefits • Chapter 30, 1606, & 1607 • Chapter 35

  22. UofL VA Benefits Processing • System identifier assigned by Registrar’s Office • Posted at time of application with VA Official • Financial Aid Office uses a query/reporting tool to identify potential VA students who: • Fail to report information on FAFSA • Receive 3rd party payments • Manually assign requests for proof of VA Benefits

  23. VA Benefits & Financial Aid

  24. VA Benefits & Financial Aid • VA related issues • Veteran Status Certification • Combat Pay • Educational VA Benefits • Non-educational VA Benefits • Conflicting Information • Kentucky Revised Statutes (KRS) VA tuition waivers

  25. 2007-08 FAFSA Veteran Questions • Step Two (Student), Q46, 47: (potential Benefits issue) • If you receive veterans’ educational benefits, for how many months from July 1, 2007 through June 30, 2008, will you receive these benefits, and what amount will you receive per month? Do not include your spouse’s veterans education benefits. • Step Three (Student), Q54 (Potential dependency/certification issue) • Are you currently serving on active duty in the U.S. Armed Forces for purposes other than training? • Step Three (Student), Q55: (potential dependency/certification issue) • Are you a veteran of the U.S. Armed Forces?

  26. 2007-08 FAFSA Veteran Questions • Worksheet B (potential untaxed income/verification issues) • Housing, food and other living allowances paid to members of the military, clergy and others (including cash payments and cash value of benefits). • Veterans’ non-education benefits such as Disability, Death Pension, or DIC, and/or VA Educational Work-Study allowances. • Tax filers only: report combat pay not included in AGI … Do not include combat pay if you are not a tax filer

  27. Educational vs. Non-Educational • VA educational benefits must be counted as an aid resource when determining federal student aid eligibility (does not impact the EFC) • VA Benefits Form requested • Proof of benefit amount (UofL process) • VA non-educational benefits count as untaxed income (does impact the EFC) • Untaxed income/Verification issue

  28. UofL Processing: Forms • Proof of VA Educational Benefits • Student must provide FAO with proof of federal VA program and monthly amount • Proof of Veteran Status Certification • Student must provide FAO with proof of qualifying veteran status and copy of discharge papers (DD214) or proof of active duty status • A requirement is assigned based on ISIR comment code of 162, 173, or 180 • HERA Change – (GEN-06-05) – dependents who are currently serving on active duty in the U.S. Armed Forces for purposes other than training are now considered to be independent

  29. Required UofL Documentation • Type of educational benefits • Amount received per month • Duration of benefits • Expiration date if during the current award period • Anticipated enrollment information

  30. VA Benefits UofL Resolution • If information on FAFSA was reported in error • An ISIR correction is sent • Not required but helps student for the next year • If information on FAFSA was reported accurately and student provides supporting documentation • Award amount is entered on the system

  31. HEA Regulations • HEA (section 428(a)(2)(C)) requires a school to exclude Montgomery GI Bill-Active Duty (Chapter 30) veterans education benefits (and AmeriCorps education awards or post-service benefits) from EFA when determining eligibility for subsidized FFEL and Direct Loans

  32. HEA Regulations • When determining a student’s eligibility for campus-based funds, a school may exclude as EFA any portion of a subsidized FFEL or Direct Loan that is equal to or less than the amount of the student’s Montgomery GI Bill-Active Duty benefits (and AmeriCorps education awards or post-service benefits)

  33. Treatment of VA Educational Benefits (HEA) • All Programs, except Chapter 30 • Counted as an aid resource (EFA) by recording as an Estimated VA award • Chapter 30 – Montgomery GI Bill • Counted as an aid resource • Treated as an exception and not considered EFA when determining eligibility for a Stafford Loan

  34. GI Bill Packaging Example • Lana is an Independent Senior at Smallville U. with a 0 EFC • Her COA is $23,000 • She is receiving: • $8,600 in Chapter 30 benefits • $4,050 in Pell Grant • $900 in CAP Grant • $4,000 in SMART Grant • $3,500 in a scholarship • How much of a Subsidized Stafford Loan can she receive? • How much Campus Based funds can she receive?

  35. Can offer a $5,500 Stafford Loan $23,000 $23,000 $4,050 $4,050 $900 $900 $4,000 $4,000 $3,500 $3,500 $8,600 $10,550 $0 Can award $1,950 in Campus Based Aid Total Aid = $28,500 $1,950

  36. UofL Calculation of VA Amount • Prior to start of aid year in August, assume FT monthly rate for 8 months • Depending on time of year, use the current payment rates available (whatever is valid at point of calculation) • After start of aid year, calculate rate on actual enrollment • Between August and December, use actual enrollment for fall and assume FT enrollment for spring (if PT for fall, then PT rate for 4 months + FT rate for 4 months) • Between January and May, use actual enrollment for fall and actual enrollment for spring • Same philosophy for summer

  37. VA Tips • If dealing with an over award involving VA benefits, ALWAYS check to see if the VA amount can be adjusted prior to adjusting any other aid • A student can receive VA Benefits without being a veteran, and can be a veteran without receiving benefits

  38. Award Adjustment Scenario 1 Scenario 1: Student reported receiving Chapter 1606. We entered an award based on FT enrollment for 8 months. We calculated $309 per month for 8 months equaling $2,472. The student attended 1 month of school, then dropped to 6 hours. The VA can be adjusted to reflect the reduced rate when dealing with an over award. * For further reduction, you can use the old rate for the first month

  39. Award Adjustment Scenario 2 Scenario 2: Student reported receiving Chapter 1607. We entered an award based on FT enrollment for 8 months. We calculated $430 per month for 8 months equaling $3,440. The student attended 1 month of school in fall, then dropped to 6 hours. The student attended 1 month of school in spring, then dropped to 9 hours. The VA can be adjusted to reflect the reduced rate when dealing with an over award. * For further reduction, you can use the old rate for the first month

  40. Questions

  41. Resources/Rate Information • Education Service Home Pagehttp://www.GIBill.va.gov • For information on basic monthly rates for Chapter 30, 1606, 1607, and 35 • Veterans Benefits Administration Home Pagehttp://www.vba.va.gov • For information on Voc Rehab and Employment monthly including for Chapter 31 • Federal Student Aid Handbook • Volume 3, Chapter 6, Packaging Aid • NASFAA PowerPoint (2005) • Collaborating with the VA to Help Students • FSA PowerPoint (2006) • Working with Veterans Affairs to Help Students • Presenters: • Ann Kirwan abkirw01@gwise.louisville.edu • Bryan Trautwein bwtrau01@gwise.louisville.edu • Ron’a Thomas rlthom01@gwise.louisville.edu

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