The Post-9/11 GIBILL Credit Hour Schools Linda McAllister Chief, Education Liaison Officer U. S. Department of Veterans Affairs Atlanta Regional Processing Office

Chapter 33 IHL Payments Tuition and Fees Effective August 1, 2011: U.S.Public Schools: VA pays the actual net cost for in-state tuition and fees directly to the institution Private and Foreign Schools: VA pays the lesser of the actual net costs for the certified tuition and fees OR $17,500 for the academic cap rate (based on eligibility rate of student)

Chapter 33 IHL Payments Payment Facts Tuition and Fee & Yellow Ribbon Program payments are sent directly to the school Books and Supply Stipends, Kickers, Monthly Housing Allowance payments are sent to the student

Tuition & Fee Reporting Schools should report the amount of tuition and fees charged after deducting any amounts paid with Federal Funds (excluding title IV funds) Examples of programs that provide educational assistance with non-Title IV Federal Funds include: Reserve Officers Training Corps (ROTC) Military Spouse Career Advancement Accounts (MyCAA) Health Professionals Scholarship Program (HPSP) Government Employees’ Training Act (GETA) NOTE: The list above is not all-inclusive. It only lists examples of Federal programs that offer tuition assistance to certain individuals. 4

Tuition & Fee Reporting The term “Title IV Funds” refers to the Federal Financial Aid Programs authorized under the Higher Education Act of 1965 (as amended) and includes the following programs: Federal Pell Grants Federal Supplemental Education Opportunity Grant (FSEOG) Direct Stafford Loans (Subsidized and Unsubsidized) Federal Perkins Loans Parent (PLUS) Loans (for TOE child recipients) Grad (PLUS) Loans (typically for TOE spouse recipients) 5

Tuition & Fee Reporting Net Actual Cost of Tuition and Fees: Amount that is left over after any of the below examples are deducted from the original tuition and fees: Waiver Scholarship Aid Assistance Scholarships: You must know the purpose of the scholarship Is it a scholarship that will apply toward tuition & fees only? Is it a scholarship to help with any costs outside tuition and fees? NOTE: If the purpose of the scholarship is to pay toward tuition and/or fees, then this amount must be subtracted from the original tuition and/or fees amount. 6

Examples of Payments to be Deducted Tuition assistance from the National Guard or Reserves (person is not on active duty) Employer payments to the school specifically for tuition and fees Private scholarships paid to the school specifically for tuition and fees Florida Purple Heart Waiver Waiver for Survivors and Dependents of Florida Disabled or Deceased Veterans 7

Examples of Payments Not to be Deducted Employer scholarship (where the payments are not designated specifically for tuition and fees) Private scholarship where the payments to the school are for general educational costs and not specifically for the student’s tuition and fees. Florida Bright Futures Scholarship Florida Pre-Paid Tuition (Payments are made to the school solely for tuition and fees; however, these are pass through payments from the student’s family which are not deducted). 8

Tuition & Fee Reporting DISCLAIMER – The lists of waivers, scholarships, aid and assistance on the previous slides are not all inclusive. Each state, employer, scholarship organization has aid programs that must be evaluated. If a payment meets the following criteria, then it must be deducted from the net charges for tuition and fees reported to VA: The payment is made directly to the school and The payment is designated specifically and solely for a student’s tuition and fees 9

Net Tuition and Fee Charges Private and Foreign Schools Would Report: Actual net cost = Original tuition and fees charged MINUS waivers, scholarships, assistance VA will pay: $17,500 for the academic year OR actual net cost for tuition and fees, if it does not exceed $17,500 VA’s academic year: August 1 through July 31 of every year Example: For the Academic Year 2012 – 2013, the inclusive dates are from August 1, 2012 – July 31, 2013. 10

Tuition & Fees Example: What amounts would the SCO at a private school report to the VA for this term as the net actual cost? Term: 08/22/12--12/16/12 (Fall 2012) Hours: 14 Residence Hours Tuition: $8,000 Fees: $ 300 Financial Aid awards: = Pell grant $1,800 = Veteran discount given by school $4,000 = Subsidized loans $1,700 = Unsubsidized loans $3,500 = National Guard Tuition Assistance (TA) $ 700 = Kiwanis Club scholarship* $ 200 *Kiwanis Club scholarship is to pay for tuition. 11

($4,000) veteran discount awarded by school Answer: $8,300 Tuition and Fees ($4,000) veteran discount awarded by school ($ 700) 3rd party direct bill (employer TA) ($ 200) Kiwanis Club Scholarship $3,400 net actual cost After the Fall 2012 term, the veteran has used $3,400 of the $17,500 cap tuition and fees for the Academic Year 2012-2013. Subsidized loans, Unsubsidized loans, and Pell grant will not be subtracted from the tuition and fees cost because these are Title IV funds. Pell grant is under section 401(b) of the Higher Education Act of 1965. 12

U.S. Public Schools: Scenario What amounts would the SCO report to the VA for this term as the net actual cost? Term: 08/22/12--12/16/12 Hours: 10 Residence Hours Tuition: $ 1,000 Fees: $ 300 Financial Aid awards: = Pell grant $ 500 = MyCAA $1,000 = Veterans of Foreign Wars (VFW) scholarship $ 200 *The purpose of the VFW Scholarship is to help the student with general expenses and books. 13

Pell grant will not be subtracted because it is Title IV funds. Answer: $1,300 Tuition and Fees ($1,000) MyCAA $ 300 Net actual cost Pell grant will not be subtracted because it is Title IV funds. MyCAA is subtracted from the original tuition and fees amount because although these are federal funds, they are not Title IV funds. The purpose of the VFW Scholarship is for general expenses, so it will not be subtracted. The SCO will report $300 tuition and fees 14

Yellow Ribbon Program Effective August 1, 2009: Chapter 33 paid the highest public in-state undergraduate rate. If the student’s amount exceeded this rate (i.e. private school rates, graduate school, or out-of-state costs), additional funding could be given towards the un-met charges Effective August 1, 2011(Public Schools): Chapter 33 pays the actual net cost for in-state tuition and fees (after the application of any waiver, scholarship, aid, or assistance) directly to the institution. Yellow Ribbon Program payments can cover the un-met charges (i.e. graduate or out-of-state charges). This must be annotated in the REMARKS field of the VA 22-1999. Effective August 1, 2011 (Private Schools): Chapter 33 pays the lesser of the actual net cost for tuition and fees ((after the application of any waiver, scholarship, aid, or assistance) or the $17,500 cap-rate for the academic year (enrollments beginning on or after the date of August 1, 2011). Yellow Ribbon Program payments can cover the un-met charges (i.e. private school, graduate, or out-of-state charges).

Yellow Ribbon Program Example #1 Example of payments after August 1, 2011: A student, 100% benefit level, is attending a private school for 12 credit hours (Full Time) for the Spring 2012 term. The institution charged the student $30,000 for tuition and $2,000 for fees. This is the claimant’s first enrollment period at the institution for this academic year. The institution certifies on the VA Form 22-1999: $32,000 for Tuition and Fees VA Payments $32,000 Certified for Tuition and Fees from School $17,500 payment for Tuition and Fees from the VA $14,500 remains in un-met charges

Yellow Ribbon Program Example #1 Continued Example of payments after August 1, 2011: VA Payments $32,000 Certified for Tuition and Fees from School $17,500 payment for Tuition and Fees from the VA $14,500 remains in un-met charges Can the student receive Yellow Ribbon and how much? $14,500 divided by 2 = $7,250.00 Answer: Yes, VA will pay up to $7,250 (matching the amount certified by the school, up to half of the remaining un-met charges)

Yellow Ribbon Program Example #2 Example of payments after August 1, 2011: A student, 100% benefit level, is attending a public school for 18 hours (Full Time) for the Spring 2012 term. The institution certifies on the VA Form 22-1999: $4,025.78 for Tuition and Fees $4,500.00 Out of State Charges listed in Remarks $8,525.78 certified for total cost of term $8,525.78 (total cost of term for in-state + out-of-state charges) - $4,025.78 Paid by VA towards Tuition and Fees $4,500.00 remaining in un-met charges If the school approved and certified $2,500.00 in Yellow Ribbon contributions, can VA match that amount?

Yellow Ribbon Program Example #2 Continued Example of payments after August 1, 2011: $4,500.00 remaining in un-met charges If the school approved and certified $2,500.00 in Yellow Ribbon contributions, can VA match that amount? Answer: No, the VA cannot match $2,500.00. Reason: Half of the Un-met charges =$4,500 divided by 2 = $2,250.00 Thus, the VA can pay UP TO $2,250.00 In this case: the VA will pay $2,250.00 for the Yellow Ribbon payment (The institution should only pay $2,250.00 for Yellow Ribbon as well)

Certifying Modular Programs Question #1 – Should you report tuition and fees per the students’ billing cycle or can schools report tuition and fees to maximize tuition payout? Answer: Schools should report tuition and fees based on the submission of each term or modular program.

Certifying Modular Programs Scenerio: A student is pursuing a certificate program which cost $20,000 and the program is broken into 5-week terms. The school is actually billing the student $20,000 on the first term. Question #2: Should the school report $20,000 on the first term or, divide the total cost of the program by the total number of terms and report the amount from the calculation on each term certified (or whatever formula they use)?  

Certifying Modular Programs Answer #2: The school should not report $20,000 on just the first term for the entire program. The school should break-up the tuition and fees and apply them to each modular term.  

What Action Creates Debts? Terminations Student stopped attending or never attended Reductions/Adjustments Student reduces course load Amendments Tuition and/or fees changed Received other tuition and fees based (waivers/scholarships) Incorrect Amount Certified to VA VA Processing Errors Paid for Wrong Student Paid more $$$ than certified

Whose Debts Are They? Student Debts Student withdrew after the first day of the term Student reduced hours whether the reduction occurred before or during the term Student changed enrollment (1999b) and school reported a reduction in tuition, fees, and/or Yellow Ribbon due to student action

Whose Debts Are They? School Debts Student never attended classes for which he/she was certified regardless of the reason for non-attendance Student completely withdraws On or BEFORE 1st day of term School amends tuition and fees (not based on student action) School received duplicate payment or payment for student not attending your school VA issued incorrect payment amount Student died during or before the term

Money Should Be Returned To VA If the Following Exists Student never attended any classes Student completely withdrew ON or BEFORE 1st day of term School received payment for wrong student School received duplicate payment School reported reduced tuition and/or fees Student died during term VA paid more than certified or obvious erroneous payment was made All other overages in student’s account – follow established school refund policy!

How To Repay VA Return entire ACH by using return Code R31 PayVA at: https://www.pay.va.gov/ Return a paper check from VA to: US Department of the Treasury Financial Management Service P O Box 51318 Philadelphia, PA 19115-6316 Mail a school check to: US Department of Veterans Affairs Debt Management Center PO Box 11930 St. Paul, MN 55111

Contact DMC directly E-mail inquiries may be directed to: dmcedu.vbaspl@va.gov Toll free number: 1-800-827-0648 1-612-970-5782 fax

References GI Bill Website (www.gibill.va.gov) GI Bill Hotline: 1-888-GIBILL-1 1-888-442-4551 29 29

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