Linda McAllisterChief, Education Liaison OfficerU. S. Department of Veterans AffairsAtlanta Regional Processing Office

The Post-9/11 GIBILL

Clock Hour Schools

Chapter 33 NCD PaymentsIntroduction

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

NCD programs cannot overlap with another Chapter 33 training type, but they may overlap with another NCD program

  

Chapter 33 NCD PaymentsPayments

On October 1, 2011, NCD program may receive the following payments:

Tuition and Fees Monthly Housing Allowance Chapter 30/1606 Kickers Chapter 33 Kicker/Supplemental Books and Supplies Stipend

  

Chapter 33 NCD PaymentsPayments

Individuals pursuing an approved program at an NCD school will receive the lesser of the following:

  

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), or $17,500 for the academic year beginning on August 1, 2011

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

Chapter 33 NCD PaymentsTuition and Fee Payments

Tuition and Fees are based on the actual net cost for tuition and fees, up to a maximum annual cap of $17,500 for the academic year that began August 1, 2011. The cap is pro-rated based on the claimant’s Benefit Level.

  

Benefit Level Academic Cap

100% $17,500.00

90% $15,750.00

80% $14,000.00

70% $12,250.00

60% $10,500.00

50% $8,750.00

40% $7,000.00

Chapter 33 NCD PaymentsPayments

Individuals pursuing an approved program at an NCD school will receive the lesser of 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

Chapter 33 NCD PaymentsBooks and Supplies 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, 2011 and ends November 14, 2013 (720 days).

720 ÷ 30 X $83 X 100% = $1,992.00 A Books & Supplies payment in the amount of $1,992.00 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

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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.

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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)

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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.

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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

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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).

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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

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Net Tuition and Fee Charges 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 yearExample: For the Academic Year 2012 – 2013, the inclusive dates are from August 1, 2012 – July 31, 2013.

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Tuition & Fees Example: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 HoursTuition: $8,000Fees: $ 300Financial 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.

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Answer: 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.

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U.S. Public Schools: Scenario 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--12/16/12Hours: 10 Residence HoursTuition: $ 1,000Fees: $ 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.

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Answer: 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

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 madeAll 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 TreasuryFinancial Management ServiceP O Box 51318Philadelphia, PA 19115-6316

Mail a school check to: US Department of Veterans Affairs

Debt Management CenterPO Box 11930St. 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

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References

GI Bill Website (www.gibill.va.gov)

GI Bill Hotline: 1-888-GIBILL-1» 1-888-442-4551

Questions?