# Presentation: 775121

## Collaborating with the Veterans Administration to Help Students

**Collaborating with the Veterans Administration to Help Students**

## Session Overview

- Veterans Education Programs that VA Does and Does Not Administer
- General Payment Rules and Processing Claims for VA Programs
- Statutory and Regulatory Definitions for Title IV Purposes
- Treatment of Veterans Education Benefits for Title IV Purposes

## Veterans Education Benefits 			

- Veterans Education Programs that VA administers
- Montgomery GI Bill—Active Duty
- Montgomery GI Bill—Selected Reserve
- Dependents Educational Assistance
- Reserve Educational Assistance Program

## Veterans Education Benefits

- Veterans Education Programs that VA administers (continued)
- Post Vietnam Era Educational Assistance Program
- Vocational Rehabilitation and Employment
- Restored Entitlement Program for Survivors

## Veterans Education Benefits

- Veterans Education Programs VA Doesn’t Administer
- Reserve Officer Training Corps Scholarship
- Reserve Officer Training Corps Program

## Veterans Education Benefits	

- General Payment Rules for VA Programs
- Payments generally are made to the student
- Payments are generally made monthly
- Payments are affected by-
- The program
- The student’s “training time”

## Montgomery GI Bill—Active Duty (Ch. 30)

- For Individuals Who Entered Active Duty Pre-1977 or Post-mid-1985
- Three Basic Full-time Monthly Rates
- $816
- $1,004
- $1,192

## Montgomery GI Bill—Active Duty (Ch. 30)

- Factors that Affect the Amount of MGIB—Active Duty Payments
- Number of Dependents
- “Kickers”
- “Buy Up”
- Active Duty Status

## Montgomery GI Bill—Selected Reserve (Ch. 1606)

- For Individuals Who Entered the Selected Reserve (Including the Guard) from Mid-1985 to Present
- Current basic rate is $288 per month.
- Factors that Affect the Amount of MGIB—Selected Reserve Payments
- Continued eligibility
- “Kickers”

## Reserve Educational Assistance Program (REAP or Ch. 1607)

- For Reservists Called to Active Duty After Sept. 10, 2001
- Factors that Affect REAP Payments
- Continued eligibility
- Length of time spent on active duty
- Basic full-time monthly rates are $401, $602, and $803
- MGIB—SR “kickers”
- Active Duty Status

## Reservists Educational Assistance Program (REAP or Ch. 1607)

- Timeline for Making the First Payments
- Goal is to Begin Payments by Oct. 1, 2005.
- VA must build a payment system.
- DoD  and the Coast Guard must establish procedures for determining who is eligible.
- Initial Payments Will Include Many Lump-Sum Payments for Training Completed Before Oct. 1.

## Post-Vietnam Era Veterans’ Educational Assistance Program (VEAP or Ch. 32) 

- For Individuals Who Entered Active Duty 1977-mid-1985
- Educational Assistance Pilot Program
- Factors that Affect the Amount of Payments
- Amount contributed
- “Kickers”

## Vocational Rehabilitation and Employment (Ch. 31)

**Served on or after September 16, 1940 **_*AND*_
**Service-connected disabilities are rated at least 20% VA (or 10% if there is a **_**serious**_** employment handicap) **_*AND*_

## Vocational Rehabilitation and Employment (Ch. 31)

**Vocational rehabilitation is required to overcome an employment handicap **_*AND*_
**Less than 12 years since VA notified of the eligibility (longer if certain conditions prevented training).**

## Vocational Rehabilitation and Employment (Ch. 31)

- A veteran eligible for this benefit has his/her tuition and fees paid by VA to the educational institution.
- VA also pays for necessary books and supplies.
- Veteran receives a monthly subsistence allowance.
- Current basic full-time rate is $474.27 per month.

## Dependents’ Educational Assistance  (Ch. 35)

- For Children, Spouses and Surviving Spouses of Individuals—
- Who died while on active duty; or
- Whose death was caused by a service-connected disability; or
- Who died while permanently and totally disabled as a result of a service-connected disability; or
- Who have a permanent and total service-connected disability.

## Dependents’ Educational Assistance  (Ch. 35)

- Current basic full-time rate is $803 per month.
- Choice of beginning date of eligibility affects payments.

## Restored Entitlement Program for Survivors 

- Restores to the survivors of some military personnel the Social Security benefits lost in 1981
- Survivors include children in college between age 18-22.
- Monthly payments range from $800 to $1,700

## Education Beneficiaries Trained

## Processing Claims for Veterans Educational Benefits

- Vocational Rehabilitation claims are processed at each of VA’s 58 regional offices.
- REPS claims are processed in St. Louis, MO.
- Other claims for educational benefits are processed at four regional processing offices.
- Buffalo, NY; Atlanta, GA; St. Louis, MO and Muskogee, OK

## Processing Claims for Veterans Educational Benefits

- Original Vocational Rehabilitation and Dependents’ Educational Assistance Claims Take the Longest Time.
- Re-enrollments Take the Shortest Time.

## Claims Processing—VR&E

- Veteran applies for VR&E (completes 28-1900).
- VR&E Division in the regional office determines eligibility.
- VR&E counselor determines entitlement.
- Veteran and counselor explore vocational goal based upon comprehensive assessment of skills, aptitudes and interests.
- VR&E counselor and veteran develop rehabilitation plan.
- VR&E provides case management services until veteran is rehabilitated.

## Claims Processing--REPS

- Claims may be submitted at any VA office, but will be processed in St. Louis.
- If eligibility has never been established, it takes 4 to 6 months for the claim to be processed.
- After eligibility is established it takes 30-45 days to process a supplemental claim.

## Claims Processing—Other Programs

- Claimant files a 22-1990 or 22-5490.
- Educational institution certifies claimant’s enrollment.
- VA, DoD or Coast Guard determines eligibility.
- Payment is authorized.

## Web Sites

- Education Service Home PageThe Address is:  _[http://www.GIBill.va.gov](http://www.gibill.va.gov/)_
- Has information on basic monthly rates for ch. 30,1606 and 1607.
- Veterans Benefits Administration Home Page at _[http://www.vba.va.gov](http://www.vba.va.gov/)_
- Click on Vocational Rehabilitation and Employment and drill down to ch. 31 rates.

## Statutory Definitions:“Untaxed Income and Benefits”

- “Untaxed Income and Benefits” (HEA section 480(b))
- Includes veterans non-education benefits but not veterans education benefits
- Veterans non-education benefits are collected on FAFSA Worksheet B
- Veterans non-education benefits are used in calculating the student’s EFC

## Statutory Definitions (cont’d):“Other Financial Assistance”

- “Other Financial Assistance” (HEA section 480(j))
- Includes veterans education benefits (HEA section 480(c)) a student will receive during the award year
- Veterans education benefits are reported in questions 46 and 47 of the 2005-2006 FAFSA
- Veterans education benefits are not used in EFC calculation

## Regulatory Definitions: “Resources” and “Estimated Financial Assistance”

- “Resources” is the term used for “Other Financial Assistance” under the campus-based regulations (34 CFR 673.5)
- The same items are referred to as “Estimated Financial Assistance” under the FFEL and Direct Loan regulations (34 CFR 682.200 and 685.102)

## Regulatory Definitions (cont’d):“Estimated Financial Assistance”

- The 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 subsidized FFEL and Direct Loan eligibility
- This exclusion is repeated in the definition of EFA in the FFEL and Direct Loan regulations

## Regulatory Definitions (cont’d):“Resources”

- The HEA did not provide a similar exclusion of these benefits for the campus-based programs
- To allow students to have the full advantage of the statutory exclusion of these benefits for subsidized loans without losing campus-based eligibility, the campus-based regulations added an exclusion to the definition of “resources”

## Regulatory Definitions (cont’d):“Resources”

- When determining a student’s eligibility for campus-based funds, a school may exclude as a “resource” 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

## Packaging Example: Montgomery GI Bill-Active Duty Benefits

- John is a first-year, independent undergraduate student enrolled in a four-year program at Bradford University
- He has an EFC of 1800, a Pell Grant of $2,000, and Montgomery GI Bill-Active Duty benefits of $4,200
- His need is $7,700 ($9,500 COA – 1800 EFC)
- His assistance from the Pell Grant and Montgomery GI Bill-Active Duty benefits equals $6,200 ($2,000 + 4,200)
- The difference between his need and assistance is $1,500 ($7,700 – 6,200)

## Packaging Example (cont’d)

- Because the Montgomery GI Bill-Active Duty benefits do not count as EFA for subsidized loans, John is eligible for a subsidized Stafford loan in an amount that exceeds $1,500
- His COA minus his EFC and Pell Grant would leave an unmet need of $5,700 ($9,500 – 1,800 – 2,000) based on the required exclusion
- The maximum subsidized loan amount for a first-year student is $2,625 and is less than his $5,700 unmet need for subsidized loan purposes, so he is able to receive a subsidized loan up to $2,625

## Packaging Example (cont’d)

- The decision to take out a subsidized loan is the student’s to make and the school must follow the HEA and regulations
- In this example, his assistance totals $8,825 ($2,000 + 4,200 + 2,625) which exceeds his need of $7,700
- This is not considered an overaward or an overpayment under the HEA and regulations

## Packaging Example (cont’d)

- John is also eligible for campus-based aid if the school chooses to exclude his subsidized loan as a resource up to the amount of his Montgomery GI Bill-Active Duty benefits
- His need is $7,700 and his total resources minus the subsidized loan would be $6,200 ($8,825 – 2,625)
- The school may award campus-based aid up to $1,500 ($7,700 – 6,200), for example, $1,000 in FWS funds and $500 in FSEOG funds
- The decision to apply the campus-based “resource” exclusion is a school option, it is not required

## Packaging Example (cont’d)

- Under this campus-based exclusion, his assistance would be as follows:
-                   2,000 Pell Grant
-                   4,200 Montgomery GI Bill-Active Duty
-                   2,625 Subsidized Stafford loan
-                   1,000 FWS
-                    _  __500_ FSEOG
-               $10,325 Total aid

## Packaging Example (cont’d)

- His assistance of $10,325 would exceed his need of $7,700 and his COA of $9,500
- Again, this is not considered an overaward or an overpayment

## Treatment of New Chapter 1607 Veterans Education Benefits

- A school must account for Chapter 1607 veterans education benefits as a “resource” and “estimated financial assistance” beginning with the 2005-2006 award year, excluding payments made for previous award years
- Retroactive payments for the 2001-2002, 2002-2003, 2003-2004, and 2004-2005 award years will not have to be considered by a school for purposes of overawards and overpayments

## Contact Information

-    If you have further questions, we can be contacted at:
-    Bill.Susling@vba.va.gov
-    Harold.McCullough@ed.gov