Post-9/11 GI Bill Overview

1. On January 4, 2011, President Obama signed the Post-9/11 Veterans Educational Improvements Act of 2010 into law (PL 111-377). The legislation amends the provisions of chapter 33 of title 38 U.S.C., modifying the rules by which VA will make eligibility, award, and entitlement calculations. The provisions vary in their effective dates, with some effective on the date of enactment (January 4, 2011), and the last provisions effective on October 1, 2011. NOTE: This is an overview of the legislation. Regulations are currently being drafted for implementation of the changes. Procedures will be issued to deal with specific issues and scenarios as we get closer to the effective dates of the various provisions. Post-9/11 GI Bill Overview

2. Post-9/11 GI BillEligibility

3. Post-9/11 GI Bill Eligibility An individual who serves on active duty after 09/10/01 may be eligible for the Post-9/11 GI Bill if the individual— • Serves for an aggregate period of at least 90 days. • Title 10 • Title 32 (payable 10/01/2011) Exception: An individual discharged due to a service-connected disability after serving at least 30 continuous days on active duty after 9/10/01, may also be eligible. 3

4. Post-9/11 GI Bill Eligibility *Excludes time in Basic Military Training and/or Skill Training 4

5. Post-9/11 GI Bill Eligibility Qualifying active duty does not include the following: • Service Academy Contract Period; or • ROTC contract period under 10 U.S.C. 2107(b); or • Army One Station Unit Training; or • Coast Guard Skill Training; or • Coast Guard Academy Contract Period; or • Service terminated due to an erroneous or defective enlistment; or • Service used for loan repayment; or • Selected Reserve Service used to establish eligibility under chapter 30, 1606, or 1607. 5

6. Post-9/11 GI Bill Eligibility In order to retain eligibility after meeting the service requirements, an individual must— • Continue on active duty; or • Be honorably discharged from Armed Forces; or • Be honorably discharged for further service in a reserve component; or 6

7. Post-9/11 GI Bill Eligibility • Be honorably discharged and placed on the retired list, temporary disability retired list, transferred to Fleet Reserve, or to Fleet Marine Corps Reserve; or • Be honorably discharged and released for: • Injury Existing Prior to Service (EPTS), • Hardship (HDSP), or • Condition Interfered with Service (CIWD). 7

8. Post-9/11 GI Bill Eligibility Generally, individuals will remain eligible for benefits for 15 years from: • Date of last discharge from active duty service of at least 90 continuous days. If an individual establishes eligibility for the Post-9/11 GI Bill by aggregating multiple periods of active duty service of less than 90 days each, the individual will have 15 years from the last period of service used to meet the minimum service requirements for eligibility. 8

9. Post-9/11 GI BillEntitlement

10. Post-9/11 GI Bill Entitlement Generally, entitlement provisions under the Post-9/11 GI Bill are similar to those under other education benefit programs: • Individuals may receive up to 36 months of benefits; • If an individual’s entitlement exhausts during a quarter or semester, benefits may be extended until the end of the term (except for dependents using TOE); • Individuals eligible for more than one program administered by VA are limited to 48 months of benefits using a combination of programs. 10

11. Post-9/11 GI Bill Entitlement EXCEPTION: Individuals transferring to the Post-9/11 GI Bill from the Montgomery GI Bill (chapter 30) will be limited to the amount of their remaining chapter 30 entitlement. This provision applies when an individual: • Is eligible for the Post-9/11 GI Bill on the date of the election; and • Elects to receive Post-9/11 GI Bill benefits in lieu of MGIB-AD benefits. NOTE: This provision does not prevent an individual who is eligible for more than one benefit program from receiving a maximum of 48 months of combined benefits. 11

12. Transfer of EntitlementDepartment of Defense BenefitAdministered by VA

13. Transfer of Entitlement • To be approved to transfer member must— • Be in Armed Forces on 8/1/09, and • Have completed 6 years in the Armed Forces, and • Agree to serve 4 more years • Only the following entities may authorize transfer of benefits— • Secretary of Defense (when the Coast Guard is operating as a service of the Navy) • Secretaries of Army, Navy, or Air Force • Secretary of Homeland Security (for Coast Guard) • Secretary of the Public Health Service (PHS) • Secretary of the National Oceanic and Atmospheric Administration (NOAA)

14. Transfer of Entitlement • An individual approved to transfer may— • Transfer up to 36 months of benefits (unless DoD/DHS restricts number of months an individual may transfer). • Transfer to spouse, child, or children in any amount up to amount transferor has available or amount approved by DoD/DHS. • Revoke or modify a transfer request for any unused benefits unless the transferor’s 15-year eligibility period is ended. • Not transfer benefits to a new dependent once the transferor is no longer a member of Armed Forces.

15. Transfer of Entitlement Spouses— • May use after transferor completes 6 years in Armed Forces • Paid at transferor’s rate - Cannot be paid housing allowance or books and supplies stipend if the transferor is on active duty when the spouse is receiving benefits • Can, unless the transferor revokes transfer, continue to use benefits if divorced after the transfer • Can use benefits up to transferor’s 15-year eligibility period expires unless transferor specifies an earlier ending date • Under law, benefits are not marital property and are not subject to division in a divorce or other civil proceedings

16. Transfer of Entitlement Children— • Must be transferred to an unmarried child who has not reached the age of 18 or, if in school, before child is 23 years of age • May use after transferor completes 10 years in Armed Forces • To commence training, child must have– • attained age 18; or • completed requirements of secondary school diploma (or equivalency certificate) • Receives veteran rate, including housing allowance & book stipend, even if transferor is on active duty • May use until age 26 – even if transferor’s 15-year eligibility period ended • May continue to use benefits after marriage (unless transferor revokes) • Students with multiple TOE sources may not receive benefits from multiple sources concurrently.

17. Marine Gunnery Sergeant John David Fry ScholarshipPublic Law 111-32

18. MGS John David Fry Scholarship • Amends Post-9/11 GI Bill to include the children of service members who die in the line of duty after 09/10/2001. • Effective 08/01/2009 • Tuition and Fees (maximum in-state rates), monthly housing allowance and books and supplies stipend.

19. MGS John David Fry Scholarship Eligible children • Entitled to 36 months of benefits at the 100% level • 15 years to use the benefit beginning on their 18th birthday • May use the benefit until their 33rd birthday • Cannot use the benefits before age 18 • Are not eligible for the yellow ribbon program Children must decide between using chapter 35 or chapter 33, using VA Form 22-5490. Irrevocable decision. Cannot receive Chapter 33 TOE and Fry concurrently.

20. Post-9/11 GI BillBenefits

21. Post-9/11 GI Bill Benefits Effective Date August 1, 2009 Chapter 33 benefits can be paid for training pursued on or after August 1, 2009. No payments may be made for training pursued before that date. If the effective date or exhaustion date is in the middle of a course, the benefits payable will be prorated. 21

22. Post-9/11 GI Bill Benefits Approved Programs • All programs approved under chapter 30 and offered at an institution of higher learning (IHL). IHLs are degree granting institutions. Effective 10/01/2011, programs at NCDs, OJT/Apprenticeship, flight, and correspondence are approved. • Until 09/30/2011, individuals who were previously eligible for chapter 30, 1606, or 1607 may continue to receive benefits for approved programs not offered by IHLs (flight*, correspondence, apprenticeship/on-the-job training, preparatory courses, and national tests) • Individuals will be paid AS IF they are still receiving benefits under chapter 30, 1606, or 1607 • No books and supplies stipend or housing allowance. 22

23. Post-9/11 GI Bill Benefits • Tuition and Fees • Monthly Housing Allowance • Books and Supplies Stipend • Kickers/College Fund/”Buy-Up” • Yellow Ribbon Program • Miscellaneous Payments 23

24. Tuition and Fees • Established chargesmeans the actual charge for tuition and fees that similarly circumstanced nonveterans enrolled in the program of education are required to pay for academic purposes. (VA considers In-state tuition only) • Fees means any mandatory charges (other than tuition, room, and board) that are applied by the institution of higher learning for pursuit of an approved program of education. The “Fee” must be: mandatory for required class/program/graduation (not optional) mandatory to purchase from school (not third party, not optional) Listed, item specific, on student account ledger/bill, and the published in catalog, handbook and/or tuition and fee schedule.

25. Tuition and Fees Fees that are not reportable: Application fee Housing Fee Beverage Fee Late Registration fee Deferred Payment Plan fee Returned Check Fee Transcript fee Withdrawal fee Study abroad or International fee(unless required of the program to graduate, semester of occurrence) This list is not all-inclusive, when in doubt ask ELR 25

26. Tuition and FeesSchools Report What? • Prior to 08/01/2011, Schools must report charged tuition and fees for courses in an approved program, and deduct any federal monies, excluding Title IV. • For sessions that start on or after 08/01/2011, schools must report actual net cost for tuition and fees. (Public - both Out-of-State and In-state to be reported separately). The actual net cost is tuition and fees after the application of any waiver, reduction, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965] for the sole purpose of defraying tuition and fees.

27. Post-9/11 GI Bill Benefits Tuition and Fees (VA Pays What?) U.S. IHL Public Schools: The actual net cost for in-state tuition and fees after the application of any waiver, reduction, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965] for the sole purpose of defraying tuition and fees for the academic year beginning on August 1, 2011. U.S. IHL Private and Foreign Schools: The lesser of the actual net cost for tuition and fees after the application of any waiver, reduction, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965] for the sole purpose of defraying tuition and fees or $17,500 for the academic year beginning on August 1, 2011 through July 31, 2012. $18,077.50 beginning August 1, 2012. The amount of the yearly cap will be adjusted each year based upon a Cost Of Living Allowance (COLA) and is subject to proration based upon benefit level.

28. Post-9/11 GI Bill Benefits Tuition and Fees U.S. NCD Schools:The actual net cost for in-state tuition and fees after the application of any waiver, reduction, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965] for the sole purpose of defraying tuition and fees or Private: $17,500 beginning on October 1, 2011 through July 31, 2012. $18,077.50 for the academic year beginning on August 1, 2012. U.S. Flight Schools:The actual net cost for in-state tuition and fees after the application of any waiver, reduction, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965] for the sole purpose of defraying tuition and fees, or Private: $10,000 beginning on October 1, 2011 through July 31, 2012. $10,330.00 for the academic year beginning on August 1, 2012. Flight payments issued after course completion. The amount of the yearly cap will be adjusted each year based upon a Cost Of Living Allowance (COLA) and is subject to proration based upon benefit level.

29. Tuition and Fees Post-9/11 GI Bill Benefits • Individuals on active duty are eligible for the lesser of: • The actual net cost for tuition and fees after the application of any waiver, reduction, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965] for the sole purpose of defraying tuition and fees. T/F payment will be prorated based on VA service tier % level. Note:Tuition and Fees payments are paid directly to the school. 29

30. Monthly Housing Allowance Post-9/11 GI Bill Benefits • Equivalent to the Basic Allowance for Housing (BAH) for an E-5 with dependents. • Amount determined by ZIP code of the School where the student is enrolled (Student does not have to live in same ZIP code) • http://perdiem.hqda.pentagon.mil/perdiem/bah.html • Distance learning only: 50% of national average • Prorated based on the percentage of the individual’s payment tier (i.e.: 40% to 100%). • Prorated based on rate of pursuit rounded to the nearest 10th. • Active duty members or anyone training at ½ time or less are not eligible for the monthly housing allowance. Note: Housing allowance payments are paid directly to the eligible person on a monthly basis. MHA rates adjust each August 1st. 30

31. Monthly Housing Allowance Post-9/11 GI Bill Benefits • Individual does not have be paying rent, room and board, or mortgage to qualify • If a husband and wife are each eligible for chapter 33 and attending school more than ½ time, then each of them may be paid a separate monthly housing allowance • Three children living at home using transferred benefits could also each receive a monthly housing allowance

32. Monthly Housing Allowance Athens = $951.00 Chattanooga = $1125.00 Covington = $1233.00Crossville = $1002.00 Crump = $918.00 Dickson = $1185.00Elizabethton = $930.00 Harriman = $951.00Hartsville = $1185.00 Hohenwald = $900.00Jacksboro = $918.00 Jackson = $960.00Johnson City = $930.00 Knoxville = $1092.00 Livingston = $885.00 McKenzie = $900.00 McMinnville = $933.00 Memphis = $1233.00 Morristown = $984.00 Murfreesboro = $1428.00 Nashville = $1428.00 Newbern = $951.00 Oneida/Huntsville = $951.00Paris = $885.00 Pulaski = $885.00 Ripley = $885.00 Shelbyville = $933.00 Whiteville = $951.00 Post-9/11 GI Bill Benefits 2011 MHA Rates 32 MHA rates adjust each August 1st.

33. Interval (Break) Payments As of August 1, 2011, eligibility to interval (break) pay is restricted to periods where a school is closed due to an Executive order of the President or due to an emergency situation. These payments are limited to 4 weeks in any 12 month period. This applies to all VA education benefit programs. Post-9/11 GI Bill Benefits 33

34. Books and Supplies Stipend Post-9/11 GI Bill Benefits Students enrolled at IHL: • Up to $1,000 per academic year • $41.67 per credit hour • Up to 24 credit hours in a single academic year • Lump sum payment (each quarter, semester or term attended) paid directly to the individual • Prorated based on the percentage of the maximum benefit payable • Active duty members are eligible for BSS if enrolled in a degree program. (effective 10/01/2011) Students enrolled at NCD: Up to $83 for each month (prorated for partial months and benefit level). (effective 10/01/2011) Note: BSS payments are paid to student for each enrollment period 34

35. Kickers/College Fund/”Buy-up” Post-9/11 GI Bill Benefits • MGIB (ch30) or MGIB-SR (ch1606) kickers • Paid monthly to student each enrollment period based on rate of pursuit (effective 08/01/2011) • Prorated based on rate of pursuit rounded to the nearest tenth. • Paid to spouses/children if they are using transferred benefits • New chapter 33 kicker • Not available yet • Will be paid with the monthly housing allowance • $600 buy-up does not transfer to chapter 33

36. Yellow Ribbon Program (IHL’s only) Post-9/11 GI Bill Benefits • Only individuals entitled to the 100% benefit rate (based on service requirements) may receive this funding • Spouses and children using transferred benefits from a service member are also eligible for the Yellow Ribbon Program (except Fry recipient dependents) • IHLs may voluntarily enter into an agreement with VA to fund the actual net cost for tuition and fees after the application of any waiver, reduction, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965] for the sole purpose of defraying tuition and fees. 36

37. Yellow Ribbon Program (IHL’s only) Post-9/11 GI Bill Benefits • VA will match each additional dollar that an IHL contributes, up to 50% of the difference between the student’s actual net cost for tuition and fees. • The combined amounts may not exceed the full cost of the the student’s actual net cost for tuition and fees. • Yellow Ribbon payments will be issued to the school on behalf of each student via EFT (or paper check if EFT information is not available). • SCO’s will place actual net cost in Tuition and fees Block and then place total out-of-state actual net cost for tuition and fees in the remarks section.

38. Yellow Ribbon Program (IHL’s only) Post-9/11 GI Bill Benefits IHL must agree to: • Select eligible students on a first-come-first-served basis; • Provide contributions during current academic year and all subsequent years if student maintains satisfactory progress; • State maximum number of students for academic year; • State how contributions will be made (grant, scholarship, or other); • State yearly maximum dollar amount per student by specifying a dollar amount for each: • Student; or • Undergraduate, graduate, and/or doctoral student; or • Student enrolled in a specified college or professional school; • Provide maximum amount payable to student each term (not to exceed yearly maximum dollar amount for student).

39. Parent/Supplemental Schools Post-9/11 GI Bill Benefits • Parent/Supplemental School – Individuals will be paid based on enrollment at each school, even if in different states: • Tuition and fees paid to each school that submits enrollment certification • Monthly housing allowance paid based on primary school or based on where resident courses are being pursued Must follow guidance in the SCO handbook, pages 58-60

40. Miscellaneous Payments Post-9/11 GI Bill Benefits • Licensing and Certification Tests • Eligible individuals may be reimbursed for multiple licensing or certification tests • Test must be approved for VA benefits • Test must be taken on or after August 1, 2009 • Entitlement charged will be charged for each $1,460 paid (rounded to the nearest whole month and amount adjusted each year) NOTE: Payment issued directly to the student in a lump sum 40

41. Miscellaneous Payments National Tests Eligible individuals may be reimbursed for multiple national tests (e.g. SAT, GRE, LSAT, etc) Test must be approved for VA benefits Test must be taken on or after August 1, 20011 Entitlement charged will be charged for each $1,460 paid (rounded to the nearest whole month and amount adjusted each year) NOTE: Payment issued directly to the student in a lump sum Post-9/11 GI Bill Benefits 41 41

42. Miscellaneous Payments Rural Relocation Benefit One-time payment of $500 for individuals who reside in a county with six or less persons per square mile, if individual Physically relocates at least 500 miles, or Travels by air to attend school if no other transportation exist NOTE: Payments issued directly to the student in a lump sum Post-9/11 GI Bill Benefits 42

43. Miscellaneous Payments Interval Payments: No longer effective 08/01/2011 Extending payment to end of term: If individual exhausts entitlement during the quarter or semester, we can pay to end of the term, unless the individual exhausted 48 months of benefits. Spouses and children using transferred entitlement are limited to 36 months of entitlement; entitlement may not be extended to end of term. Post-9/11 GI Bill Benefits 43

44. Miscellaneous Payments Work-Study: Individuals training at a rate of pursuit of at least 75% may apply for work-study Tutorial Assistance: Individual’s training at a rate of pursuit of at least 50% may receive tutorial assistance Amount payable cannot exceed $100 per month Total amount payable cannot exceed $1,200 Post-9/11 GI Bill Benefits 44

45. Post-9/11 GI BillOverpayment of Benefits

46. Overpayment of Benefits • VA will determine the amount of an overpayment for an individual in receipt of chapter 33 benefits • An individual who does not complete one or more courses in the certified period of enrollment, and who does not substantiate mitigating circumstances for not completing such course(s), will be charged an overpayment equal to the amount of ALL educational assistance paid for such course(s) for that period of enrollment (except for the books and supplies stipend).

47. Overpayment of Benefits In the event a student does not complete a course, schools should follow their established student refund policy. Important: Tuition and Fees payments are paid to the school on behalf of the student; overpayments for Tuition and Fees because the student doesn’t complete a course will be charged to the student. Students with existing overpayments on their record may attend school; however, their benefit payments (including Tuition and Fees) may be applied to the overpayment until it is repaid.

48. Overpayment of Benefits ONLY REASONS TO RETURN TO VA • Schools may return funds to VA—only in these seven instances: - the student died during the term and would have been due a refund; - the student never attended; - the institution received a payment for an individual that is not a student, or - the institution received a duplicate payment for a student; or - the student completely withdraws on or before the first day of the term; or - the school submitted an amended enrollment certification and reported reduced tuition and fee charges, reduced Yellow Ribbon amount, or reduced both; or - VA issued payment above the amount certified on the enrollment certification that was used to process the payment (VA data entry error). • Returned payments must include: - Name of the Student (Full Legal Name) - Social Security Number (Entire SSN Number) - Date of the term to which you are retiring the funds (With Month, Day, and Year; beginning and end date)

49. Overpayment of Benefits Electronically Institutions may return tuition and fee paymentsor Yellow Ribbon payments to VA by: • Returning the electronically received Automated Clearinghouse (ACH) payment using ACH return code R31. Please note: Schools may only return a full payment (exactly what received) to VA using the R31 ACH return code.  --Continued

50. Overpayment of Benefits Institutions may return tuition and fee payments or Yellow Ribbon payments to VA by: Returning the paper check to the: U.S. Department of the Treasury Financial Management Service P.O. Box 51318 Philadelphia, PA 19115-6316 Note:  Institutions should only return government issued paper checks received for a student to the Department of Treasury. --Continued Returning Government Check 50