Student Veteran Issues

JANUARY 28, 2010

Student Veteran Issues

Today’s Agenda

Laws and PoliciesVeteran Programs

Post-9/11 GI Bill

VA NewsCreating Veteran Friendly Campuses

Suggestions from Veterans Suggestions for Campuses

Resources

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Recent Legislative Changes

Higher Education Technical Corrections (PL 111-39, 7-1-09)

Higher Education Opportunity Act (PL 110-135, 8-14-08)

College Cost Reduction and Access Act (PL 110-84, 9-27-07)

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Searchable Web Site

ED, DOD, VA must create one (searchable) Web site with information applicable to members of the Armed Forces (including National Guard and Reserves), veterans and their dependents about: All applicable federal and state financial assistance Readmission requirements Other student services

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Treatment of Veterans’ Educational Benefits

Not counted in calculation of EFCNot counted as Estimated Financial

Assistance (EFA)Applies to veterans, spouses and dependents

Effective Date: July 1, 2009 HEA Sec. 480(a)(2)

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VA Educational Benefits Changes

Electronic Announcements Change of effective date for exclusion of Federal VA

education benefits posted on July 2, 2009 Must review those students already packaged to

determine of changes are necessary Guidance on Federal Veterans’ Education Benefits for

Purposes Title IV Aid posted on August 13, 2009 Includes Q and A’s List of updated applicable programs included

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In-State Tuition for Active Duty Military

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States may not charge more than the in-state tuition rate at public institutions of higher education to service members , their spouses or dependent children. Servicemember qualifies if:

on active for more than 30 days domicile or permanent duty station is in the state, or was when

attendance began

In-state rates continue to apply if the service member is re-assigned to a permanent duty station outside the state.

Effective for periods of enrollment that begin after July 1, 2009

HEA, Title I, Part C, Sec. 135(a)-(c)

Pell for Service Members’ Survivors

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HEOA A student who lost a parent or guardian as a result of

military service in Iraq or Afghanistan after 9/11/01 and who was less than 24 years of age, or was enrolled as full-time or part-time student when the parent or guardian died, will be deemed to have an EFC of zero and will be eligible for the maximum Pell grant award provided they meet other eligibility requirements. Effective July 1, 2009 HEA, Title IV, Part A, Sec. 401(f)(4)

Technical Corrections, effective July 1, 2009 Removed Sec. 401 (f)(4) from HEA and added

Sec. 473(b) to Part F – Needs Analysis Provides that students meeting requirements shown above will be

determined to have a zero EFC that will generally apply to all Title IV HEA programs

Sec. 420R, to Title IV, Part A Establishes Iraq and Afghanistan Service Grants (IASG) Program

• Effective for 2010-11 award year

IASG Program

Non-need-based programAvailable starting with 2010-11 Award YearTo qualify:

Student must have a parent or guardian who died as a result of military service in Iraq or Afghanistan after Sept. 11, 2001

Must be, at the time of the parent or guardian’s death, less than 24 years of age or enrolled at an institution of higher education

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IASG Program

Intended for students who are not eligible for a Pell Grant

Student will receive an IASG that is the same amount as a maximum Pell Grant

Grants made under IASG may not exceed cost of attendance and payments are adjusted like Pell Grants if the student is enrolled less than full-time.

Unlike Pell, IASG Program grants are not considered estimated financial assistance.

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IASG Program

Under this program, the student’s EFC will not be changed Calculated EFC used for other Title IV aid

Regulations are necessary to implement these programs, however, HEA provisions waive the requirement for negotiated rulemaking.

ED will initiate the regulatory process without negotiated rulemaking and adopt regulations that will be effective July 1, 2010 for the 2010-11 award year

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In 2009-10 If Pell-eligible, student may receive –

Maximum Pell Grant of $5,350 Zero EFC for all other federal student aid

In 2010-11 If Pell-eligible, student may receive –

Maximum Pell Grant of $5550 Zero EFC for all other federal student aid

If Pell-ineligible, student may receive – Iraq/Afghanistan Service Grant (IASG) in an amount equal to maximum

Pell Grant CPS-calculated EFC

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Veterans Affairs and Department of Defense (DOD) to provide ED with with information necessary to determine which students meet the requirements

Database match with DOD is expected to start in early 2010 2009-10, prior to DOD match –

Until computer matching agreement is in place, students need to self-identify to school

Aid administrator calls ED to confirm that student is eligible Marya Dennis, (202) 377-3385

2009-10, after DOD match is in place, ED will – Conduct manual match against CPS records once a month Send personalized letter to student Notify schools of any affected students

Phone call and E-mail with encrypted, password-protected file with student identifiers

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Cost of Attendance

Cost of Attendance will include an allowance to cover basic expenses incurred for board (NOT ROOM) For students living in housing provided on a military

base, or For which a basic living allowance is provided Effective July 1, 2010 Section 472(3) of HEA

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Changes in Definitions

Section 480 of HEA Total income

No portion of VA educational benefits are to be considered income

Untaxed income Value of on-base military housing or off-base housing

allowance is excluded from untaxed income

Excludable income modified to include special combat pay (Section 480(e))

EFA modified to exclude special combat pay (Section 480(j))

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Veterans - Total and Permanent Disability

Borrowers who have been certified as totally and permanently disabled by Veterans Affairs automatically eligible for discharge

Perkins – eff. 7-1-2008 FFEL & DL – eff. 7-1-2010

Must be certified as unemployable due to service-connected condition

No further documentation to support discharge required

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Perkins Loan Forbearance

For military personnel and veterans Request no longer need to be in writing

wider applicability but especially helpful for military personnel

School must confirm agreement by giving notice to the borrower

School must record specific terms in borrower’s file

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No Interest Accrual – Military Borrowers

No interest (0%) for borrowers serving on active duty during war or other military operation or national emergency.

Direct loans only disbursed on or after 10-10-08

Limited to 60 monthsFFELP borrowers eligible for through

consolidation (HEA 428 (a)(3)(B)(i)(V) & 455 (o); DCL pgs.

135& 138) Sec. 451 and Sec 422 adds clarification

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Returning Servicemembers

Entitlement to readmission of military service members returning from more than 30 days of active duty. HEA IV – 484C Effective: 8-14-08

May not deny readmission to a servicememberSupersedes state law/any other matter that

reduces any right or benefit of these rulesMust promptly readmit servicemember with

the same academic status

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Uniformed Service: Service, whether voluntary or involuntary, in the Armed Forces, including service by a member of the National Guard or Reserve, on active duty, active duty for training, or full-time National Guard duty under Federal authority, for a period of more than 30 consecutive days under a call or order to active duty of more than 30 consecutive days

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“Promptly readmit” means in next class or classes in program

Exceptions

“Same academic status” means to admit the student: To the same program At the same enrollment status With the same # of completed credit/clock hours With the same SAP/academic standing

Exceptions to these requirements

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Tuition and fees (for first year) If readmitted to same program:

Same tuition and fee charges would have assessed for academic year in which student left

Same as other students for that year, if VA or other benefits will cover beyond what student would have been assessed

For another program, assessed no more than other students

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Academic preparation Institution must make reasonable efforts to help

them prepare to resume or complete a program Must be at no extra cost to student

Exceptions made after reasonable efforts “Reasonable efforts” means no undue hardship to the

institution

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Readmission Procedures Student entitled to readmission if:

Gives advance oral or written notice of the service Cumulative length of absence and all previous absences

for service ≤5 years Gives oral or written notice of intent to return

Institution must designate office(s) Notices may not have a required format Notice of intent to return must be

Not later than 3 years after completion of period of service; OR

Not later than 2 years after end of period necessary for recovery from service-related illness or injury

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Documentation Student must provide documentation to establish

that: Student has not exceeded limitation on the cumulative

length of absence Student’s eligibility for readmission has not been

terminated Example:

Certificate of Release or Discharge from Active Duty

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Federal Veteran Programs

Montgomery GI Bill (Chapter 30)

New rates went into effect Oct. 1, 2009

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Post-9/11 GI Bill (Chapter 33)

The Post-9/11 GI Bill consists of three components: Tuition & fee payment

Paid directly to the institution. In Illinois, pays up to $578.08 per credit hour for tuition & $12,836 per term for fees

Additional expenses may be covered at participating Yellow Ribbon institutions Housing stipend

Paid directly to the student based on the zip code of the institution Equivalent to the Basic Allowance for Housing (BAH) rate for an E-5

w/dependents Must be training at greater than ½ time and have at least one course on-campus

to qualify for the housing stipend Books & supplies

Paid directly to the student Prorated to about $42/credit up to $1,000/year

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Updated BAH Rates

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BAH Rate Protection

From the Federal Joint Travel Regulations, Volume 1, Chapter 10, Uniformed Service Members: U10004 BAH RATE PROTECTION

The monthly BAH amount actually paid a member (i.e., BAH Rate Protection) must not be reduced as a result of changes in housing costs in the MHA, changes in the national monthly housing cost, or a member’s promotion. If the member is demoted, or loses authorization for BAH, then the member’s BAH rate protection at the current amount ceases on the date the member’s eligibility to BAH for a given MHA terminates. The current BAH rate at the current duty location becomes the member’s new protected BAH rate.

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Post-9/11 GI Bill Lessons Learned

With a semester of the Post-9/11 GI Bill behind us, we (the VA) are providing a list of “lessons learned” in hopes of working together for a smoother spring enrollment period

Early submission of enrollment certifications is essential to timely payment.

A Certificate of Eligibility is not required for submission of the enrollment certification. If a student has provided any documentation to show that he or she is a veteran or dependent that is likely entitled to benefits, an enrollment certification should be submitted as soon as the student enrolls in classes.

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Post-9/11 GI Bill Lessons Learned

“Lessons Learned,” continued: The Post-9/11 GI Bill brought a new dimension to

VA education benefits that now involves schools’ business offices. Many payment issues can be addressed by the school’s certifying official.

It is critical to VA’s processing that students are correctly identified as Chapter 33 participants to prevent misrouting of claims.

Correct direct deposit information is essential for accurate payment routing. If the school’s deposit account information changes the school VA certifying official should notify their Education Liaison Representative immediately.

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Marine Gunnery Sergeant John David Fry Scholarship

Public Law 111-32 Amends the Post-9/11 GI Bill to include the children

of service members who die in the line of duty after Sept. 10, 2001.

Benefit is effective as of August 1, 2009 Eligible children may receive up to the highest

public, in-state undergraduate tuition and fees, plus a monthly living stipend and book allowance

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Who is eligible? Children of an active duty member of the Armed Forces

who has died in the line of duty on or after September 11, 2001, are eligible for this benefit.

A child may be married or over 23 and still be eligible.Eligible children:

are entitled to 36 months of benefits at the 100% level have 15 years to use the benefit beginning on his/her 18th

birthday may use the benefit until his or her 33rd birthday cannot use benefit before age 18, even if he or she has

completed high school are not eligible for the Yellow Ribbon Program

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Rules for eligible dependents serving or who have served in the Armed Forces If the child is eligible under the Montgomery GI Bill

Active Duty, Montgomery GI Bill Selected Reserve, and/or the Reserve Educational Assistance Program (REAP), then he or she must relinquish eligibility under one of those programs to receive benefits under Post-9/11 GI Bill

A child’s character of discharge from his or her own service does not impact eligibility resulting from the line of duty death of a parent

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Rules for eligible dependents serving or who have served in the Armed Forces A child on active duty will receive benefits at the

active duty benefit rate (eligible for unlimited tuition and fees but not eligible for monthly housing allowance or books and supplies stipend)

A child who meets the service requirements to transfer entitlement under Post-9/11 GI Bill may be eligible to transfer up to 36 months of entitlement to his or her dependents.

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When will benefits be paid? VA must begin issuing payments under this benefit

no later than August 1, 2010. This includes retroactive payments for eligible children enrolled during the period of August 1, 2009, through July 31, 2010.

VA will begin accepting applications for this benefit May 1, 2010, and will begin issuing payments to eligible children by 8/1/10. Children enrolled from 8/1/09 through 7/31/10 may receive retroactive payments for that time.

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Children currently enrolled in school may apply for benefits under VA’s Dependents’ Educational Assistance Program. The program offers up to 45 months of education

benefits. The application for this benefit is available online, and

there is a link on the GI Bill website, www.gibill.va.gov. The link takes the user to VONAPP, the online application.

Select VA Form 22-5490, Application for Dependents' Educational Assistance, to apply.

If the son or daughter is under legal age, a parent or guardian must sign the application.

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VA News

Beginning the week of Jan. 23, the VA to Begin Recovery of Post-9/11 GI Bill Advance Payments Notification letters will be sent out explaining the

repayment process.

The Department of Veterans Affairs Education Call Center is currently closed on Thursdays and Fridays so that staff can focus on processing education benefit claims. They will be open for telephone calls Monday through

Wednesday during normal business hours from 7:00am to 5:00pm Central Standard Time.

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Are VA Benefits Taxable?

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Instructions for 1098-T

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Instructions for 1098-T

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Sample 1098-T

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Student Instructions for 1098-T

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Educational Credits

From Instructions for Form 8863, http://www.irs.gov/instructions/i8863/index.html Tax-Free Educational Assistance and Refunds of Qualified

Education Expenses Tax-free educational assistance includes a tax-free scholarship or Pell

grant or tax-free employer-provided educational assistance. See chapter 1 of Pub. 970 for specific information.

For all credits, you must reduce the total of your qualified education expenses by any tax-free educational assistance and by any refunds of your expenses. If the refund or tax-free assistance is received in the same year in which the expenses were paid or in the following year before you file your tax return, simply reduce your qualified education expenses by the amount received and figure your education credits using the reduced amount of qualified expenses. If the refund or tax-free assistance is received after you file your return for the year in which the expenses were paid, you must recapture (repay) the excess credit. You do this by figuring the amount by which your education credits would have been reduced if the refund or tax-free assistance had been received in the year for which you claimed the education credits. Include that amount as an additional tax for the year the refund or tax-free assistance was received. 1/28/2010

Illinois Veteran Grant (IVG)

Application volume for veterans is down 6% compared to the same time last year.

As of the January 15 deadline for the submission of fall term payment requests, claims totaled more than $16 million.

The claims for fall term will not be paid to schools through ISAC since no monetary allocation was allowed for fall term 2009.

An appropriation was authorized to ICCB for payment of claims to community colleges.

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Photo by CLC and BSU Student Jason Sather

Building a Veterans Friendly Campus

Supporting Veterans Reintegration

Veterans’ Perspectives

The next few slides are from a presentation given at MASFAA’s 2009

Conference titled Changes in Veterans Programs and

Benefits bySteven Frantz, Christopher Halling, Office of the Chancellor, MN State

Colleges and Universities and Donald Pfeffer, Higher Education

Veterans Program, MN Department of Veterans Affairs

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Do not feel welcomeWant to be with others who speak “their

language”Lack of personal support Too much “Confusion”“Unfriendly” policies and proceduresLack of Funds; Benefits slow to arriveCredit Transfer

Why Veterans struggle in College?

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Suggestions from Veterans

Each of us is an individual. We may have seen heavy combat or sat in an office all of the time.

DO NOT assume that you know my politics or beliefs because I was in the military.

Listen to me. I may or may not be ready to talk about experiences yet, but I have a story to tell when I’m ready.

Being friendly and listening goes a long way toward gaining trust. I might have a hard time with trust.

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Suggestions from Veterans

We are accustomed to being successful and may be too proud to ask for help

DO NOT be afraid of me. Getting to know me and being able to identify issues might help and may make me feel welcome.

Let us know when you see us struggling and offer assistance

Hold us to the same standard as other students. The military held us to a high standard. We know pressure. We expect to be challenged. We will succeed and even excel.

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Create welcoming & “safe” environmentCreate campus veterans centerProvide accurate and timely information Campus leadership for veterans servicesCreate A network of support on campusDevelop Tuition PoliciesTransfer creditBecome Servicemember Opportunity College Campus veterans leadership opportunities

What campuses can do

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Resources

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American Council on Education Military Programs

Provides tools and resources to help colleges award soldiers and veterans credit for learning experiences while in the military

www.militaryguides.acenet.edu Sailor Marine Ace Registry Transcript (SMART)

https://www.navycollege.navy.mil https://smart.navy.mil

Army/American Council on Education Registry Transcript System (AARTS) http://aarts.army.mil

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Legislative Resources

Federal Legislation/Issues www.veterans.house.gov www.veterans.senate.gov

State Legislation/Issues www.ilga.gov House : Veterans’ Affairs Committee

http://www.ilga.gov/house/committees/members.asp?CommitteeID=606&GA=96

Senate: State Government & Veterans Affairs Committee http://www.ilga.gov/senate/committees/members.asp?C

ommitteeID=615

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iltroops.org

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www.leavenoveteranbehind.org

503(c) non-profit service run by veterans to help relief educational debt of veterans who may not be covered by other veteran education benefits

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ILASFAA Annual Conference

March 24-26, 2010 in SpringfieldThree veteran-related sessions:

Veteran Programs and Benefits Processing Post-9/11 GI Bill Benefits on Your

Campus Birds of a Feather Discussion -- Post-9/11 GI Bill

Watch ILASFAA mini-conference site for detailed agenda http://www.ilasfaa.org/docs/conferences/2010/

index.html

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Questions/Comments?

THANK YOU FOR PARTICIPATING TODAY!

Documents

Student Veteran Issues