VA Education Benefits MGIB Benefits Briefing
Objectives This presentation will provide: • A brief overview of VA education benefits • Broader discussion on Post 9/11 GI Bill (Chapter 33), relative to school specific concerns • An update to current Chapter 33 payment issues (Information contained in this briefing was compiled from information provided by the Dept of Veterans Affairs and 38 CFR Part 21 Subpart P. Up-to-date information can be found at www.gibill.va.gov)
Buffalo’s Jurisdiction14 Northeastern StatesDistrict of ColumbiaForeign Schools
Participants in VA Education Programs by Fiscal Year (in thousands)
VA Forms for Students VA 22-1990 Application For VA Education Benefits VA 22-1990t Application For Tutorial Assistance VA 22-1995 Request Change of Program/Place of Training VA-22-1990E Application for Transfer of Entitlement Benefits VA-22-1990R Application for VRAP Benefits Chapter 35 VA 22-5490 Application For Survivors’ And Dependents’ Educational Assistance (also Fry Scholarship) VA 22-5495 Request For Change Of Program/Place Chapter 31 VA 28-1900 Application For Vocational and Rehabilitation Benefits
Current Benefits Programs • Post 9/11 GI Bill (Chapter 33) / Transfer of Entitlement / John D. Fry Scholarship • MGIB-Active Duty (Chapter 30) • MGIB-Selected Reserve (Chapter 1606) • Reserve Education Assistance Program (Chapter 1607/REAP) • Dependent’s Educational Assistance (Ch 35/DEA) • VRAP • Vocational Rehabilitation & Employment (Chapter 31/VR&E)
CommonGround Eligibility is based, in part, on type of military service and honorable discharge. Up to 48 months of benefits. Programs of study at training sites must be approved for VA benefits. All degree programs at public and accredited non-profit schools are ‘deemed approved’ for VA benefits.
Common Ground (continued) • Education Benefits may be used for: • College courses leading to a degree • Business/technical/vocational courses leading to a certificate or diploma • Tests for a license or certification • Apprenticeship or OJT training • Foreign schools (degree program only)
Common Ground (continued) • Correspondence courses • Entrepreneurship courses • Flight Training (private pilot excluded) • Accelerated Pay (High Tech programs) • Reimbursement for National Exams • Tutorial assistance (if needed) • Top-up (active duty only)
Entitlement The number of months and days of full-time benefits an individual originally receives or has remaining. • Maximum of 36 months for MGIB programs / Post 9/11 GI Bill (CH30 and CH33 entitlement may be extended to end of term). • DEA (CH35) provides 45 months, VR&E (CH31) 48 months. • Maximum of 48 months under any combination of programs (Example: If a claimant used 36 months under MGIB chapter 30, they may use an additional 12 months of CH 33 benefits). • Entitlement charged based on Training Time (Rate of Pursuit for CH33) and the actual period the student attended. • Entitlement was charged for all intervals between terms that were paid through 8/1/11.
How Is Entitlement Charged? Full time = Generally 12 or more undergraduate credits per standard term (commonly 4 courses @ 3 credits each ) Term Dates: Fall 08/25 thru 12/13 = 3 mos 19 days Interval 12/14 thru 01/25 = 1 mos 10 days Spring 01/26 thru 05/16 = 3 mos 21 days Full time training without interval pay = 7 mos 10 days (Interval pay ceased effective 7/31/2011)
Entitlement Charge cont. Half time (or 50% ROP) = 6 hrs per standard term (generally 2 courses @ 3 credits each ) Term Dates: Fall 08/25 thru 12/13 = 1 mos 24 days Interval 12/14 thru 01/25 = 0 mos 20 days Spring 01/26 thru 05/16 = 1 mos 26 days Half time training, no interval pay = 3 mos 20 days
‘Delimiting Date’ • The first day after a claimant's period of eligibility expires. Benefits are not payable on or after the delimiting date. • Periods of eligibility vary by program. • CH1606, CH1607 and CH35 Delimiting Dates may be extended to the end of the term. • Delimiting Dates may be extended for a disability that prevented training. • Extended for additional active duty of 90 days or more.
Post - 9/11 GI Bill Eligibility Criteria And Entitlement
Changes to the Post-9/11 GI Bill As a result of Public Law 111-377 (Jan. 2011), there were many changes to the Post 9/11 GI Bill (Ch33). The broad changes affected the way tuition & fees are paid, eligibility determinations, housing payments, etc. The final regulations and processing procedures have not yet been published. Information presented at this time is subject to change. Updated information can be found on the GI Bill website at www.gibill.va.gov.
Active Duty Service Requirements After 9/10/01 an individual must serve: % of Maximum Benefit Payable At least 36 months 100 100 At least 30 continuous days on active duty and discharged due to service-connected disability At least 30 months but less than 36 months 90 At least 24 months but less than 30 months 80 At least 18 months but less than 24 months 70 At least 12 months but less than 18 months 60 At least 6 months but less than 12 months 50 At least 90 days but less than 6 months 40
Ch33 Entitlement In general, individuals remain eligible for benefits for 15 years from date of last discharge of at least 90 continuous days (30 days if disability). Active duty members maintain eligibility while on active duty. Veterans receive a maximum of 36 months of benefits under CH33. (may extend to end of term) Entitlement limited to no more than 48 months of combined benefits under educational assistance programs administered by VA. NOTE: Individuals transferring to the Post-9/11 GI Bill from the Montgomery GI Bill (Chapter 30) will be limited to the amount of remaining Chapter 30 entitlement, unless none remains.
Transfer of Entitlement (TOE) Fry Scholarship
Transfer of Entitlement DoD determines if an individual can transfer entitlement to one or more dependents Dependents eligible to receive entitlement include spouses and natural, adopted, or step-children. Transferees use entitlement in the same manner as the veteran. Changes to transferred entitlement can be made at any time by the veteran. Eligibility percentage levels may change with additional active duty service. Dependents file VAF 22-1990E to receive benefits. Note: The fact that DoD permitted a transfer of entitlement to occur does not guarantee Chapter 33 benefits can be paid.
Transfer of EntitlementSpouses • Spouses receive benefits in the same manner as the transferor (can’t receive housing payments if transferor is on active duty) • Period of eligibility is the same as the veteran; 15 years from latest release from active duty • Transferred MGIB entitlement cannot be treated as marital property, is not subject to division in divorce or civil proceeding Children • Child must have completed high school (or the equivalent) or reached 18 years of age. Child always receive benefits like as a veteran. • Entitlement not subject to the veteran’s 15 year delimiting date, but may not be used after reaching age 26.
John D. Fry Scholarship Eligibility for children of an active duty member killed in the line of duty on or after September 11, 2001. Will receive tuition & fees payments, monthly housing allowance and the books & supplies stipend at the 100% rate. (No Yellow Ribbon) All dependents receive 36 months of entitlement (not divided up from veteran’s entitlement like TOE) Also eligible for Ch35 benefits, must elect one of the two Dependents must file VA Form 22-5490 to receive benefits.
Yellow Ribbon Program IHLs may voluntarily enter into an agreement with VA to allow the two parties to provide matching funds to cover a portion of the established charges above the annual cap for private schools or to cover the out-of-state portion of tuition. Only veterans and their dependents entitled to the 100 percent benefit rate (based on service requirements) may receive this funding. VA will match each additional dollar that an institution contributes toward an eligible student’s established charges, not to exceed 50% of unmet allowable charges. Effective this year, Yellow Ribbon contracts are open ended and remain in effect until school wishes to modify or terminate. Check website (www.gibill.va.gov) for information.
Post-9/11 GI Bill Benefit Payments Net Tuition and Fees Charged Monthly Housing Allowance (MHA) Books and Supplies Stipend Kickers (also known as College Fund) Licensing and Certifications Test, National Exams Work Study Tutorial Assistance Refund of $1,200 MGIB Contribution (All payments are subject to Eligibility Level Percentages.)
Established Tuition Charges- The actual tuition charge that similarly circumstanced non-veterans enrolled the program of education are required to pay. Fees- Any mandatory charges (other than tuition, room, & board) applied for pursuit of an approved program * Study Abroad Fees are not payable under Ch33 unless the courses are required for the degree program. Travel costs are never payable. Charges Defined
Tuition & Fees Changes Effective Aug. 1, 2011 for Veterans & Their Transferees: Simplified tuition and fees rates for those attending public schools; creates a national annual maximum rate for those enrolled in private schools * • Pays all public school net in-state tuition and fees; • Private school reimbursable costs are capped annually (Aug. 1st to July 31st); Training at less than half-time not counted toward cap • Yellow Ribbon Program remains for out-of-state charges and costs that exceed the private school cap. * Payments made based on Net Charges & subject to proration based on Eligibility Tier (i.e. 40% - 100%)
Tuition & Fees Changes ‘Net Charges’: VA was previously considered ‘First Payer’ for tuition and fees reporting purposes. Effective August 1, 2011, schools must report the net costof tuition and fees after deducting: • Any waiver of, or reduction in Tuition and Fees; and • Any scholarship, or other Federal, State, institutional, or employer based aid that is provided directly to the school towards tuition and fees • Title IV Funds (Pell Grants and Federal Loans) are excluded from net charge assessments. * Effective July 2009, no VA education benefits can be considered when calculating EFC or as an outside resouce for Financial Aid purposes
2011-2012 Tuition & Fees Cap Eligibility Tier Max T&F Payable/Year 100% $17,500 90% $15,750 80% $14,000 70% $12,250 60% $10,500 50% $ 8,750 40% $ 7,000 In general, VA will pay the lesser of the net T&Fs or the individual’s annual cap rate for all Ch33 students
2012-2013 Tuition & Fees Cap Eligibility Tier Max T&F Payable/Year 100% $18,077.50 90% $16,269.75 80% $14,462.00 70% $12,654.25 60% $10,846.50 50% $ 9,038.75 40% $ 7,231.00 In general, VA will pay the lesser of the net T&Fs or the individual’s annual cap rate for all Ch33 students
Changes to the Post-9/11 GI Bill Reporting Tuition and Fees • For each enrollment period, report actual net cost for tuition and fees to VA: • Tuiton and Fees = $5,000.00 School Veteran Tuition Waiver = ($500.00) Private Tuition Scholarship = ($500.00) NYS VTA = Waiver* NYS TAP = Waiver* Net Tuition and Fees = $4,000.00 Report report $4,000.00 to VA as the T&Fs for this term. If the student received any Title IV funds or assistance not specifically designated for the payment of tuition and fees – No need to deduct from the amount reported to VA.
Restoring GI Bill Fairness Act “Grandfather”
The new legislation authorizes VA to pay more than $17,500 (or the appropriately reduced amount based on the student’s eligibility percentage) in tuition and fees under the Post-9/11 GI Bill for certain students attending private collegesand universities To qualify for the increased payment (also referred to as the “grandfathered” tuition and fee amount), students must have been enrolled in the same college or university since January 4, 2011, and have been enrolled in a program for which the combined amount of tuition and fees for full-time attendance during the 2010-2011 academic year (Aug. 1, 2010 to July 31, 2011) exceeded $17,500. Restoring GI Bill Fairness Act “Grandfathering” Eligibility
Eligible students will receive the “grandfathered” rate for tuition and fees for all terms that begin before August 1, 2014, as long as they are continuously enrolled at the same institution. If they transfer to a different institution, even if it’s located in the same state, they will no longer qualify for the “grandfathered” rate. School certifying officials will need to submit an enrollment certification or amended enrollment certification to VA with remarks stating “Student eligible for restored rates”to verify that the student was enrolled in that school since January 4, 2011 and that the tuition and fees for full-time attendance in that program exceeded $17,500 during the 2010-2011 academic year. Restoring GI Bill Fairness Act “Grandfathering” Eligibility
Restoring GI Bill Fairness Act of 2011 Tuition & Fees Rates State Max Tuition Max Fees • New Hampshire $1003.75/credit $ 5,197.00 • New York $1010.00/credit $12,293.00 • Pennsylvania $ 934.00/credit $ 6,110.00
Monthly Housing Allowance (MHA) Books & Supplies Stipend
Monthly Housing Allowance (MHA) Rate is equivalent to Basic Allowance for Housing (BAH) for an E-5 with dependents Locality rate determined by zip code of the facility code of the IHL where the student is enrolled (www.gibill.va.gov). Payment is prorated based on the student’s Eligibility Tier. (i.e. 40% to 100%) Effective 8/1/11, MHA will be prorated based on ROP, rounded to the nearest 10th.
Books & Supplies Stipend Maximum payment of $1,000 per year $41.67 per credit hour (at the 100% rate) Up to 24 credits in a single academic year Lump sum payment (each quarter, semester or term attended) based on the number of credits originally certified for. Prorated based on the Eligibility Percentage Level. Active duty members (and TOE spouses of active duty members) are eligible effective 10/1/11) Note: Benefit payments are paid directly to the student.
Miscellaneous Payments VA Work-Study Eligible individuals pursuing training at ROP of at least 75% may receive work-study allowance. (3/4 TT) Must perform veteran related work Hourly wage is higher of state or federal minimum wage. (Non-taxable income.) Tutorial Assistance Must be training at ROP of at least 50% Amount payable can’t exceed $100/month. $1,200 lifetime maximum, no entitlement charge.
Rate of Pursuit (ROP) & Equivalent Credit Hours (ECH)
Rate of Pursuit (ROP) The measure of training time obtained by dividing the number of credit hours (or clock hour equivalent) a student is enrolled in by the number of credit hours (or clock hour equivalent) considered to be full-time at the school (or what is considered Graduate Full-Time). The resulting percentage (rounded to the nearest hundredth) will be the individual’s Rate of Pursuit. Rate of Pursuit will determine the entitlement charged for an award period and will determine if the Monthly Housing Allowance will be paid (must be training at Rate of Pursuit greater than 50%). Greater than 50% ROP would normally be 7 or more credits taken during a standard semester (15-19 weeks) or standard quarter (10-13 weeks). Example: Student is taking 7 credits for a standard semester ROP = 7 / 12 = .58 or 58% For Non-Standard term (or summer session), VA will calculate Equivalent Credit Hours (ECH) and use that to determine Rate of Pursuit.
ECH Calculation To determine the Equivalent Credit Hours of a non-standard term: # semester credits taken multiplied by 18 divided by number of weeks # quarter credits taken multiplied by 12 divided by number of weeks (round up partial weeks if 4 days or more) Example: Non-standard term dates: June 1, 2010 to July 27, 2010 @ 3 credits Calculate term length – 57 days / 7 = 8 weeks and 1 day = 8 weeks Calculate ECH (sem school) - (3 cr x 18) / 8 = 6.75 ECH Calculate ROP – 6.75 ECH / 12 (normal FT measurement) = .56 or 56% MONTHLY HOUSING IS PAID at the 60% level ____________________________________________________________________ Non-standard term dates: June 1, 2010 to July 27, 2010 @ 3 credits Calculate term length – 57 days / 7 = 8 weeks and 1 day = 8 weeks Calculate ECH (qtr school) - (3 cr x 12) / 8 = 4.5 ECH Calculate ROP – 4.5 ECH / 12 (normal FT measurement) = .38 or 38% NO MONTHLY HOUSING IS PAID
Reporting to VA: Enrollment, Changes, Probation & Graduation
If net tuition and fees are unknown, schools may report the term dates, actual credit hours, and enter $0.00 for these charges This permits the students to receive timely housing and books & supplies stipend payments Also allows for financial aid to be resolved prior to submitting cert MUST submit amended cert, effective FDOT to ensure accurate payment when net T&Fs are reported “Zero Tuition”
Mini or Summer Terms Summer Session A: 05/15/2012 to 06/16/2012 @ 3 cr. Summer Session B: 06/18/2012 to 07/20/2012 @ 3 cr. Summer Session C: 06/18/2012 to 08/15/2012 @ 3 cr. Tuition & Fees are billed for the entire summer session. Tuition for the summer term is $5400. ($600 per hour) Fees are $500. -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- BeginEndCrs.Tuition Fees 05/15/2012 06/16/2012 3 $1800.00 $166.67 06/18/2012 07/20/2012 3 $1800.00 $166.67 06/18/2012 08/15/2012 3 $1800.00 $166.66 By certifying as above, VA will issue payments that accurately reflect the cost of each term. (Critical for changes of status.)
Reporting Reductions and Terminations The Certifying Official must notify the VA within 30 days of discovery if one of the following occurs: • If the net charges change. • If the trainee withdraws from training. • If the trainee does not progress satisfactorily according to approved standards and practices of your facility. • When the trainee changes credit or clock hours of training, even during drop/add. • If the trainee receives non-punitive grades. • When the trainee graduates.
Debts & Enrollment Change If a student attends a portion of the term, but doesn’t complete it as certified, schools should follow their established refund policy For reductions, refunds should be given directly to the student. The fact the school refunded money has no bearing on the VA payment. VA will pay for the time attended. (Even during Drop/Add) Refunds for partial attendance should be returned to VA in accordance with VA policy. (*handout available) The student is responsible for any debts incurred to VA as the result of a change in enrollment within a term.
Financial Aid Concerns
Veterans less familiar with Financial Aid process. If military path is chosen in high school, they likely don’t participate in traditional college preparation 1 day of active duty (Title 10) satisfies the definition of veteran. If veteran status is not confirmed by VA data match, ask student to provide copy of DD214, then do a dependency override. Eligibility criteria for Ch33 different from VTA FAFSA & Veterans
Effective July 2009, VA education benefits can’t be considered when calculating EFC or COA for Federal Financial Aid purposes. This includes T&Fs payments, monthly housing payments, etc. Ch33 payments to schools are not tuition specific funds and can be refunded to the student when appropriate. If qualifying tuition specific funds are received after net T&Fs have been reported to VA, you must inform the School Certifying Official (SCO) at your school. The SCO must then report an amended certification to VA. The amount in question will become school debt if VA payment has been made. Financial Aid Issues