VETERANS BENEFITS ADMINISTRATION POST – 9/11 GI BILL® SPECIFIC TOPICS – NCD SCHOOLS MARCH 26, 2015

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Payments - Introduction On October 1, 2011, VA began paying Chapter 33 benefits to individuals pursuing the following non-IHL non-degree programs: – Non-College Degree (NCD) Schools – On-the-Job Training (OJT) and Apprenticeship Programs – Flight Training Programs – Correspondence Courses Where the enrollment in an NCD program overlaps with the enrollment in a different type of program (such as an IHL), VA will pay for only one of the two programs, but not both at the same time 1

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Payments On October 1, 2011, NCD programs may receive the following payments: – Tuition and Fees – Monthly Housing Allowance – Chapter 30 / 1606 Kickers – Chapter 33 Kicker / Supplemental – Books and Supplies Stipend 2 Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Payments Individuals pursuing an approved program at a standalone public or private NCD school will be entitled to the following benefits: The actual net cost for in-state tuition and fees after the application of any waiver, scholarship, aid, or assistance (other than loans and Federal funds provided under Title IV), up to $20, for the academic year beginning on August 1, The amount of the yearly cap will be adjusted each year based upon a Cost of Living Allowance and is subject to proration based upon benefit level. 3 Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Payments Tuition and Fees are based on the actual net cost for tuition and fees, up to a maximum annual cap of $20, for the academic year that began August 1, The cap is pro- rated based on the claimant’s Benefit Level. 4 Tuition and Fee Payments Benefit LevelAcademic Cap 100%$20, %$18, %$16, %$14, %$12, %$10, %$8,094.08

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Payments Individuals pursuing an approved program at an NCD school will receive the following: A Monthly Housing Allowance based upon the appropriate in-residence or distance learning training hours (prorated by training time and Benefit Level) – based on the zip code for the education institution A lump-sum Books & Supplies Stipend in an amount equal to $83 for each month (prorated for partial months of attendance and Benefit Level) - up to an annual maximum of $996 each year 5 Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Payments The Books and Supplies Stipend is calculated as follows: Number of Days in Enrollment ÷ 30 X $83 X Benefit Level Example: A claimant is enrolled in a NCD program that begins November 15, 2013 and ends November 14, 2015 (720 days as all fiscal transaction are based on 30 day months) 720 ÷ 30 X $83 X 100% = $1, A Books & Supplies payment in the amount of $1, will be sent to the claimant for the NCD program. (FYI: Books and Supplies are paid for the ENTIRE program. A change in the END DATE may generate additional debts and/or payments) 6 Books and Supplies Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 OJT or Apprenticeship programs are available to: - Veterans - Transfer of Entitlement (ToE) recipients (except for the spouse of an active duty member) - Frye recipients OJT or Apprenticeship cannot overlap with an active duty service period OJT or Apprenticeship enrollments cannot overlap with another Chapter 33 training type OR another OJT/Apprenticeship program: 7 OJT/Apprenticeship Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 Individuals pursuing an approved OJT or Apprenticeship may receive the following benefit payments: - Monthly Housing Allowance - Chapter 30 / Chapter 1606 Kickers - Chapter 33 / Supplemental - Books and Supplies Stipend 8 OJT/Apprenticeship Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 Individuals pursuing an approved OJT or Apprenticeship will receive the following payment rates: - First 6 months: A monthly amount equal to the BAH rate for an E-5 with dependents where the employer is located (prorated for benefit level and/or less than 120 hours per month) - Second 6 months: A monthly amount equal to 80% of the BAH rate for an E-5 with dependents where the employer is located (prorated for benefit level and/or less than 120 hours per month) - Third 6 months: A monthly amount equal to 60% of the BAH rate for an E-5 with dependents where the employer is located (prorated for benefit level and/or less than 120 hours per month) 9 OJT/Apprenticeship Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 Individuals pursuing an approved OJT or Apprenticeship will receive the following payment rates: - Fourth 6 months: A monthly amount equal to 40% of the BAH rate for an E-5 with dependents where the employer is located (prorated for benefit level and/or less than 120 hours per month) - Over 24 months: A monthly amount equal to 20% of the BAH rate for an E-5 with dependents where the employer is located (prorated for benefit level and/or less than 120 hours per month) - A Lump-sum Books and Supplies Stipend: in an amount equal to $83 for each month (prorated for benefit level and/or less than 120 hours per month) 10 OJT/Apprenticeship Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 Individuals may receive a Monthly Housing Allowance based on the zip code for the educational institution after entry of a certification(i.e. retroactively): The MHA payment is adjusted by a Step Level and claimant’s Benefit Level (%): 11 OJT/Apprenticeship Payments Step%PeriodMM-DD – MM-DD 1100%1 st 6 months00-01 – %2 nd 6 months06-01 – %3 rd 6 months12-01 – %4 th 6 months18-01 – %Over 24 months> 24-01

VETERANS BENEFITS ADMINISTRATION Chapter 33 The Monthly Housing Allowance (MHA) payment is adjusted by a Fifteenth Value when a claimant works less than 120 hours in a month 12 OJT/Apprenticeship Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 The Monthly Housing Allowance (MHA) payment is adjusted by a Fifteenth value when a claimant works less than 120 hours in a month o Hours certified to VA only include hours of actual work during normal duty hours. They do not include overtime, paid vacation, sick leave, etc. The MHA is calculated as follows: Example: A claimant is enrolled in and OJT program and is currently at Step 2. The MHA rate for the educational institution is $1, per month and a monthly certification is received for 120 hours. $1, X 80% (Step 2) X 100% X = $1, This will generate a $1, MHA payment for the period of the certification. 13 OJT/Apprenticeship Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 Chapter 30/1606 Kicker Payments - Payment after entry of a monthly certification - Adjusted by the claimant’s Step Level - Adjusted by the Fifteenth value when a claimant works less than 120 hours in a month - Chapter 30/1606 Kicker Calculation: Kicker Rate X Step % X Fifteenth Value Example: A claimant is enrolled in an OJT program and is currently at Step 2 and has a Ch30 Kicker in the amount of $ per month. A monthly certification is received for 120 hours $ X 80% (Step 2) X = $ OJT/Apprenticeship Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 Books and Supplies Stipend: - May receive a stipend in the amount of $83.00 per month (up to an annual* of $996.00) - Paid as a lump sum for the current academic year when the enrollment is processed - Adjusted by the claimant’s Benefit Level and pro-rated for partial months of attendance - Books and Supplies stipend calculation: Number of Days in Enrollment ÷ 30 X $83.00 X Benefit Level Example: A claimant is enrolled in an OJT program that begins November 15, 2014 and ends November 14, 2015 (256 days , 104 days ). 256 ÷ 30 X $83.00 X 100% = $ ÷ 30 X $83.00 X 100% = $ Payment for this academic year is $ and additional Books and Supplies Stipend will be sent when a subsequent academic year certification is entered into the system. Note: Academic year ends OJT/Apprenticeship Payments

VETERANS BENEFITS ADMINISTRATION Chapter 33 Individuals pursuing an approved vocational flight program (regardless of the institution providing the program) are entitled to: The actual net cost of instruction (paid to the school) after the application of any waiver, scholarship, aid, or assistance (other than loans and Federal funds provided under Title IV), up to $11, for the academic year beginning on August 1, 2014 The amount of the yearly cap will be adjusted each year based upon a Cost of Living Allowance and is subject to proration based upon benefit level 16 Flight Programs

VETERANS BENEFITS ADMINISTRATION Chapter 33 Kickers: Individuals may receive a Chapter 30/1606 kicker payment after entry of a certification As with flight training under other VA programs, benefit payments will be issued after certification of charges are submitted. 17 Flight Programs

VETERANS BENEFITS ADMINISTRATION Chapter 33 Rates as of the academic year beginning August 1, Flight Programs Benefit LevelAcademic CapDaily Rate 100%$11,562.86$ %$10,406.57$ %$9,250.29$ %$8,094.00$ %$6,937.72$ %$5,781.43$ %$4,625.14$11.476

VETERANS BENEFITS ADMINISTRATION Chapter 33 Effective October 1, 2011 Correspondence Course benefits are available to: - Veterans - Active duty service member - Transferor of Entitlement (ToE) recipients - Fry recipients Correspondence enrollments cannot overlap with another Chapter 33 training type or another Correspondence program May be eligible for the following payments: - Tuition - Chapter 30/1606 Kickers 19 Correspondence Courses

VETERANS BENEFITS ADMINISTRATION Chapter 33 Individuals pursuing an approved program of education exclusively by correspondence will be eligible for the following payments: The actual net cost for tuition and fees after the application of any waiver, scholarship, aid, or assistance (other than loans and Federal funds provided under Title IV), or $9, for the academic year beginning on August 1, 2014 The amount of yearly cap will be adjusted each year based upon a Cost of Living Allowance and is subject to proration based upon benefit level As with correspondence training under other VA programs, benefit payments will be issued quarterly for courses completed 20 Correspondence Courses

VETERANS BENEFITS ADMINISTRATION Chapter 33 Tuition and Fees: Tuition payments are calculated as: Reimbursable Lessons X Submitted Rate X Benefit Level August 1, 2014 Academic Year: 21 Correspondence Courses Benefit LevelAcademic CapDaily Rate 100%$9,828.43$ %$8,845.59$ %$7,862.74$ %$6,879.90$ %$5,897.06$ %$4,914.22$ %$3,931.37$

VETERANS BENEFITS ADMINISTRATION Chapter 33 Tuition and Fees: Example: The educational institution reported on VA Form b- 1 that the total number of lessons to date is 5 and the Submitted Rate for each lesson is $ The claimant is eligible at 100% Benefit Level. Reimbursable Lessons X Submitted Rate X Benefit Level 5 X $ X 100% = $ A will be sent to the educational institution for Tuition in the amount of $ Correspondence Courses

VETERANS BENEFITS ADMINISTRATION Chapter 33 Entitlement Charge: *Note: all official entitlement charges should be determined by VA Step 1: Determine claimant’s Daily Rate Academic Year Cap X Benefit Level ÷ 360 Days Example: $9, X 100% ÷ 360 = $ / Day Step 2: Determine Entitlement Charge Tuition ÷ Daily Rate Example: $ ÷ $ = Days Claimant will be charged days of Ch33 Entitlement Used. 23 Correspondence Courses

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Payments Summary Veterans, Dependents of Veterans, & Fry Scholar not on duty effective 10/01/11: 24 NCD OnlyOJT/ApprenticeshipFlightCorrespondence Tuition & Fees$20,235.02Not Paid$11,562.86$9, Books & Supplies$83 a month Not Paid MHAIf ROP >.5Paid, step & 15 th Not Paid KickersPaid* Payment Limits should be multiplied by Benefit Level if Less than 100% (see Matrix) Kickers not subject to benefit level

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Payments Summary Service Member, Spouse of active duty member, & Fry Scholar on duty effective 10/01/11: 25 NCD OnlyOJT/ApprenticeshipFlightCorrespondence Tuition & Fees$20,235.02Not Paid$11,562.86$9, Books & Supplies$83 a monthNot Paid MHANot Paid KickersPaidNot PaidPaid Payment Limits should be multiplied by Benefit Level if Less than 100% (see Matrix) Kickers not subject to benefit level

VETERANS BENEFITS ADMINISTRATION Chapter 33 NCD Entitlement Charges Entitlement Applies to Non-College Degree (NCD) Schools ONLY effective 10/01/11 26 RoP Means Rate of Pursuit **Charge one day of entitlement per this amount paid. EC = (B&S paid / **amount from table)

VETERANS BENEFITS ADMINISTRATION Certifying Modular Programs 27 Scenario #1 – A student is pursuing a certificate program which costs $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 #1: 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 calculation on each term certified (or whatever formula they use)?

VETERANS BENEFITS ADMINISTRATION Certifying Modular Programs 28 Answer #1: The School should not report $20,000 on the first term for the entire program. The school should break-up the tuition and fees and apply them to each modular term.

VETERANS BENEFITS ADMINISTRATION Extended Term Dates 29 Scenario #2 – A student is pursuing a 33 week long certificate program which includes an externship. The student does not complete the required externship required contact hours by the end of the 33 week period due to his/her inability to commit full time. Question #2: Should the school extend the end date for the term certified to the VA to compensate for the extra time needed to complete the externship?

VETERANS BENEFITS ADMINISTRATION Extended Term Dates 30 Answer #2: The School should report a change in end date for the term, but only far enough to allow the student to be able to sit in the classroom for the approved hours in the program. We will pay a student to be in the classroom for the approved program hours and no more. The 10% rule is no longer in effect.

VETERANS BENEFITS ADMINISTRATION Reportable Fees 31 Scenario #3 – ABC College requires that all students purchase a supplies kit for their certificate program. This kit includes two textbooks that ABC College writes and can only be purchased at the school. Question #3: Can the SCO certify the supply kit as fees even though it contains textbooks?

VETERANS BENEFITS ADMINISTRATION Reportable Fees 32 Answer #3: Yes the SCO can certify that supply kit as fees if ALL students are required to purchase that kit and the textbooks can not be purchased ANYWHERE else. In addition, the supply kit fee must be specifically labeled as a fee in the catalog, enrollment agreement, and student payment ledger

VETERANS BENEFITS ADMINISTRATION Questions? 33