# Presentation: 068118

## Working with Veterans Affairs to Help Students

**Working with Veterans Affairs to Help Students**

- Bill Susling
- U.S. Department of Veterans AffairsJeff Baker
- U.S. Department of Education, FSA

## 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 Programs 

**Bill Susling**
**U.S. Department of Veterans Affairs**

## 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**

**Notes:**
I’m limiting myself today to the veterans education benefits programs VA administers.  VA doesn’t administer every program identified as a veterans education benefits program in the Higher Education Act.  The first three slides should be self-explanatory.

## Veterans Education Benefits

**National Call To Service**
**Post Vietnam Era Educational Assistance Program**
**Vocational Rehabilitation and Employment**
**Restored Entitlement Program for Survivors**

**Notes:**
I’m limiting myself today to the veterans education benefits programs VA administers.  VA doesn’t administer every program identified as a veterans education benefits program in the Higher Education Act.  The first three slides should be self-explanatory.

## Veterans Education Benefits

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

**Notes:**
Don’t ask me questions about these two programs.

## 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”**

**Notes:**
Here are some general rules about VA payments.  Where there are exceptions I’ll mention them later on.

Every program has at least some eligibility rules that are different from the others.  So there are different items that affect payment.  I’ll explain as we go along.

For most purposes students are either full time or part time but not for VA purposes.

EXPLAIN VA TRAINING TIME AND EFFECT ON PAYMENTS  

## 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**
**$840**
**$1,034**
**$1,222**

**Notes:**
Doesn’t necessarily include activated reservists.  Servicemembers must have pay reduced by $100 per month for 12 months.  Those that decline during boot camp to do this aren’t eligible for this benefit.  Veteran must have an honorable discharge from at least one period of service.  VA determines eligibility.
Veterans have 10 years to use benefit.  They get 36 months of benefits or the equivalent in part-time benefits.    
Monthly Rates—Formerly eligible for Vietnam Era GI Bill--$1,192,  two years service--$816 and three years service--$1,004
Rates are adjusted annually on Oct. 1 based on the annual rise in the CPI

## 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**

**Notes:**
Dependent number affects only Vietnam Era veterans
EXPLAIN KICKERS.  Only affects post-mid-1985 veterans.  Don’t forget kickers from other chapters.  DoD kicker problems may result in the final amount being decided late.
EXPLAIN Buy Up.  Monthly rate increase by $5 for each $20 contributed.  Up to $150 for a $600 contribution.
EXPLAIN payments to active duty members.
Has ten years to use benefits.

Dependent number affects only Vietnam Era veterans
EXPLAIN KICKERS.  Only affects post-mid-1985 veterans.  Don’t forget kickers from other chapters.  DoD kicker problems may result in the final amount being decided late.
EXPLAIN Buy Up.  Monthly rate increase by $5 for each $20 contributed.  Up to $150 for a $600 contribution.
EXPLAIN payments to active duty members.
Has ten years to use benefits.

## 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 $297 per month**
**Factors that Affect the Amount of MGIB—Selected Reserve Payments**
**Continued eligibility**
**“****Kickers”**

**Notes:**
Reservist must make a six-year commitment.  Those that do receive a Notice of Basic Eligibility from their military service.  The DoD determines who is eligible, not VA.
If the reservist leaves the Selected Reserve he/she loses the benefit.  They have 14 years from making the commitment to use benefits.  The current basic benefit is $288/month.  The reservists get 36 months of benefits or the part-time equivalent.  
EXPLAIN kickers--$100, $200, and $350 level.  

## 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 $413.60, $620.40, and $827.20**
**MGIB—SR “kickers”**
**Active Duty Status**

**Notes:**
A new program for us to administer that was signed into law on Oct. 28, 2004.
Reservists may use this benefit as long as they remain in the reserves.  They get 36 months of benefits or the equivalent in part-time benefits.
EXPLAIN need to remain in the Selected Reserves or the IRR.  Tell about the difference between the two.
Reservist gets 40% of the full-time MGIB rate for 90 days consecutive active duty service.  60% for 1 year of consecutive active duty service. 80% for two-years consecutive active duty service.  EXPLAIN these two years vs. two years for MGIB.
There are no kickers for this program per se, but reservists can bring over any kickers to which they are entitled under MGIB—SR.
Payments to active duty eligibles mirrors MGIB—Active Duty payments.
Like MGIB—SR DoD determines who is eligible.  Each eligible person is supposed to get a notification from DoD while still on active duty of the fact of the eligibility.  However, DoD isn’t ready to start doing that.   

## National Call to Service

**For enlisted individuals **
**Service must include at least 15 months of active duty, and may include**
**Additional active duty**
**Service in the Selected Reserve**
**Service in Americorps **

**Notes:**
This program was enacted on Dec. 2, 2002.  DoD is required to enlist people under it through Dec. 31, 2007, and may if that department so chooses continue this program after that date.
Once the initial active duty is completed the enlistee may serve an additional term of active duty or 24 months in the Selected Reserve.
Once that phase is complete the enlistee may serve the remainder of his or her military obligation in more active duty; more Selected Reserve service; service in the IRR; service in the Americorps; or a combination of this.
Individuals may thus originally qualify for the National Call to Service and then through additional service qualify for one of the other educational programs VA administers or for the Americorps education benefit.  

## National Call to Service

**Enlistee may choose ONE of four enlistment incentives**
**$5,000**
**Repayment of up to $18,000 in outstanding student loans**
**12 months of education benefits at the MGIB 3-year rate**
**36 months of education benefits at 1⁄2 the MGIB 2-year rate**

**Notes:**
Here are the four enlistment incentives the enlistee gets to choose from.  On January 6 of this year a law was enacted that assigned to VA the responsibility of paying for the last two incentives.
For some reason we can tell from the applications we have received since then that some people think they are entitled to all four incentives.  Those who have already picked one of the first two incentives will receive a letter from VA disallowing their claims.
We have had to had a memorandum of understanding  with DoD.  Now we are working out the procedures for making payments.  This is not a big program and the majority of those coming in pick one of the first two incentives.  We would expect to pay hundreds of people per year, not tens of thousands or hundreds of thousands as we pay under MGIB.
Our goal is to have instructions out and be ready to pay by Oct. 1, 2006.     

## 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”**

**Notes:**
This program allowed those who chose to participate the opportunity to contribute while on active duty any monthly amount from $25 through $100 in $5 increments until a maximum of $2,700 was reached.  DoD then contributes $2 for every $1 the individual contributed.
	If the servicemember contributed for at least 36 months, he/she has 36 months of benefits.  The monthly amount for full-time students is determined by taking the total contributed adding the DoD amount and dividing by 36.  So for example if someone contributed $75 per month for 36 months, the $2,700 total contribution is added to DoD’s $5,400 for a total of $8,100.  This is divided by 36 for a monthly rate of $225.
	If the servicemember contributes for less than 36 months, the amount contributed is matched $2 for $1 by DoD.  The total is divided by the number of months of contributions.  So, for example, if someone contributed $100 for 27 months, the $2,700 in contributions is added to $5,400 for a total of $8,100.  This is divided by 27 so the individual is eligible for $300 per month in full-time benefits for 27 months.
	So someone can be eligible for a basic benefit for anywhere from $75 for one month to $225 for 36 months.  Generally speaking a veteran who participated in this plan won’t know his or her monthly benefit until VA sends the veteran an award letter.
	People in this program have 10 years from the last discharge from active duty of 90 days or more to use the benefits.
	Complicating all this is that DoD is allowed to add kickers for hard-to-fill military occupational specialties just as the department can in other programs so the amount payable may be much more than $225 per month.
	People who stayed in the military were twice given a chance to switch to the MGIB, once in 1996 and once in 2000, so the number still eligible for this benefit is small. 
	The educational assistance pilot program was just like VEAP except that the servicemember made no contributions.  DoD made them all. 

## 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**

**Notes:**
The purpose of the Vocational Rehabilitation and employment program is to provide all services and assistance necessary to enable veterans with service-connected disabilities to achieve maximum independence in daily living, and to the maximum extent feasible, to become employable and to obtain and maintain suitable employment.
	This slide and the next contain the eligibility requirements for this program.  You can read them as well as I can.    

## 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 tuition and fees paid by VA directly to the educational institution**
**has required books and supplies paid **
**is provided with on-going case management **
**receives a monthly subsistence allowance**
**Current basic full-time rate is $488.50 per month**

**Notes:**
If after working out an individual written rehabilitation plan with the VA counselor, it is decided that a college degree is best for the veteran to obtain employment, he or she will be offered the benefits on this slide.
	The more dependents a veteran has, the higher the monthly subsistence allowance.  In addition, if the veteran is eligible for the MGIB-Active duty, he or she may be paid at the MGIB rate instead. 

## 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**

## Dependents’ Educational Assistance  (Ch. 35)

**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 $827 per month**
**Choice of beginning date of eligibility affects payments **

**Notes:**
This program provides 45 months of benefits.  Surviving spouses get 20 years from the date of death to use benefits if the servicemember died on active duty.  They get 10 years if the servicemember didn’t.  Children generally get to use the benefit between age 18 and 26, but there are many exceptions.
GIVE EXAMPLES.   

## 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  **

**Notes:**
Restored by the Quayle Amendment enacted in December 1982.
Payment rates depend on the amount the veteran paid into Social Security and the number of potential claimants.

## Processing Claims for Veterans Educational Benefits

**Vocational Rehabilitation claims are processed at each of VA’s**** 57**** regional offices**
**REPS claims are processed in St. Louis, MO**

**Notes:**
It isn’t necessary to tell you which states belong to each of the four RPOs.  You can find that on our web site which I’ll get to shortly. 

## Processing Claims for Veterans Educational Benefits

**Other claims for educational benefits are processed at four regional processing offices**
**Buffalo, NY; Atlanta, GA; St. Louis, MO and Muskogee, OK**

**Notes:**
It isn’t necessary to tell you which states belong to each of the four RPOs.  You can find that on our web site which I’ll get to shortly. 

## Processing Claims for Veterans Educational Benefits

**Original Vocational Rehabilitation and Dependents’ Educational Assistance claims take the longest time**
**Re-enrollments take the shortest time**

**Notes:**
It isn’t necessary to tell you which states belong to each of the four RPOs.  You can find that on our web site which I’ll get to shortly. 

## 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**

**Notes:**
This is why a vocational rehabilitation and employment decision can take a long time.  All but the last bullet must take place before the veteran can receive subsistence allowance.  Often, if the veteran is eligible for some other veterans educational benefit, VA pays that benefit while these decisions are being made.   

## Claims Processing—VR&E

**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**

**Notes:**
This is why a vocational rehabilitation and employment decision can take a long time.  All but the last bullet must take place before the veteran can receive subsistence allowance.  Often, if the veteran is eligible for some other veterans educational benefit, VA pays that benefit while these decisions are being made.   

## 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**

**Notes:**
I think this is self explanatory.  Remember there are just a few of these claimants left.  

## 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**

**Notes:**
On original claims determining the claimant’s eligibility can take quite some time.  For example, someone may apply for dependent’s educational assistance when VA has no evidence that the person is (or was) a dependent.
	Once eligibility is determined the claimant no longer has to file anything if he/she stays in the same program of education.  All that is needed is for the educational institution to certify re-enrollment.  That can be done electronically over the Internet and the data can often be processed through to payment without human intervention.  About 20% of re-enrollments are done that way.  These are done in a day.  

## Web Sites

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

**Notes:**
There is a lot of good information about the education programs on the Education Service home page.  Among them are the current basic rates.  Remember, though that the individual may receive more than the basic rate.

## Information Available to Schools

**Information about the types and amounts of benefits received or scheduled to be received by a student is available through –**
** ****On-Line to “VA-ONCE”.  Available to the school’s designated VA certifying official.**
** “****Pay Listing” paper roster.  Sent to the school’s designated VA certifying official.**

**Notes:**
On original claims determining the claimant’s eligibility can take quite some time.  For example, someone may apply for dependent’s educational assistance when VA has no evidence that the person is (or was) a dependent.
	Once eligibility is determined the claimant no longer has to file anything if he/she stays in the same program of education.  All that is needed is for the educational institution to certify re-enrollment.  That can be done electronically over the Internet and the data can often be processed through to payment without human intervention.  About 20% of re-enrollments are done that way.  These are done in a day.  

## Treatment of Veterans Education Benefits for Title IV Purposes 

**Jeff Baker**
**U.S. Department of Education**

## Statutory Definitions:“Untaxed Income and Benefits”

**“****Untaxed Income and Benefits” (HEA section 480(b))**
**Includes veterans non-education benefits. Used in calculating the student’s EFC – (Worksheet B)**

## Statutory Definitions:“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 (months) and 47 (monthly amount) of the 2006-2007 FAFSA**
**Veterans education benefits are not used in EFC calculation**

## Regulatory Definitions: “Estimated Financial Assistance” (EFA)

**The term EFA is used for “Other Financial Assistance” under the FFEL and Direct Loan regulations (CFR 682.200 and 685.102) and is proposed to be used for the campus-based programs (34 CFR 673.5) **
** ****Historically, the campus-based regulations had used the term “Resources”. **

## Regulatory Definition: EFA

**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 eligibility for subsidized FFEL and Direct Loans**

## Regulatory Definition: EFA

**This exclusion of Montgomery GI Bill-Active Duty benefits is repeated in the definition of EFA in the FFEL and Direct Loan regulations**

## Regulatory Definition: EFA

**The HEA did not provide a similar exclusion of these Ch 30 benefits for the campus-based programs**
**To allow students to have the full advantage of the statutory exclusion for subsidized loans without losing campus-based eligibility, the campus-based regulations added an exclusion to the definition of EFA **

## Regulatory Definition: EFA

**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).**

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

**Harold is a first-year, independent undergraduate enrolled in a 4-year program at Bradford University**
**His COA is $14,900 and he has an EFC of 1800, a Pell Grant of $2,000, and Ch 30 Montgomery GI Bill-Active Duty benefits of $9,600**
**His need is $13,100 ($14,900 COA – 1800 EFC)**

## Packaging Example

**His assistance from the Pell Grant and Montgomery GI Bill-Active Duty benefits equals $11,600 ($2,000 + 9,600)**
**The difference between his need and his assistance is $1,500 ($13,100 – 11,600)**

## Packaging Example

**Because the Montgomery GI Bill-Active Duty benefits do not count as EFA for subsidized loans, Harold is eligible for a subsidized Stafford loan in an amount that exceeds $1,500**

## Packaging Example

**His COA minus his EFC and Pell Grant would leave an unmet need of $11,100 ($14,900 – 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 $11,100 unmet need for subsidized loan purposes, so he is able to receive a subsidized loan up to $2,625 not just $1,500**

## Packaging Example

**The decision to take the subsidized loan of the full $2,625 is the student’s to make and the school must follow the HEA and regulations**
**In this example, his assistance totals $14,225 ($2,000 + 9,600 + 2,625) which exceeds his need of $13,100**
**This is not considered an overaward or an overpayment under the HEA and regulations**

## Packaging Example

**When the school considers Harold for campus-based aid it has the **_**option**_** of excluding his subsidized loan as EFA up to the amount of his Montgomery GI Bill-Active Duty benefits**
**His need is $13,100 and his total EFA minus the subsidized loan would be $11,600 ($14,225 – 2,625)**

## Packaging Example

**The school may award campus-based aid up to $1,500 ($13,100 – 11,600), for example, $1,000 in FWS funds and $500 in FSEOG funds**
**The decision to apply the campus-based EFA exclusion is a school option, it is not required**

## Packaging Example

**Under this campus-based exclusion, his assistance would be as follows:**
**2,000 Pell Grant**
**9,600 Montgomery GI Bill-Active Duty**
**2,625 Subsidized Stafford loan**
**1,000 FWS**
_**   **__**500 FSEOG**_
**  ****$15,725 Total aid**

## Packaging Example

**His assistance of $15,725 would exceed his need of $13,100 and his COA of $14,900**
**Again, this is not considered an overaward or an overpayment**

## Institutional Responsibility

**Regardless of the amounts included on a student’s FAFSA/ISIR or even if the student did not complete the FAFSA items, schools are responsible for the proper treatment of all VA benefits that they are aware of or should be aware of.  This means that the FAA must coordinate closely with other offices that may have information about the receipt of VA benefits by students.**

## Treatment of New Chapter 1607 Veterans Education Benefits

**A school must account for Chapter 1607 veterans education benefits as EFA beginning with the 2005-2006 award year, excluding payments made for previous award years**

## Treatment of New Chapter 1607 Veterans Education Benefits

**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**
**   ****Jeff.Baker@ed.gov**