IVG and Post-9/11 GI Bill

As an entitlement program, the Illinois Veteran Grant (IVG) is available to eligible veterans, regardless of state funding levels. To determine eligibility, veterans must submit an application to ISAC. Once veterans are determined eligible, they are entitled to have their tuition and mandatory fees paid at Illinois public universities and community colleges via payment requests submitted to ISAC. When state appropriations are insufficient to cover all claims, schools must cover the shortfall.

The Chapter 33 Post-9/11 GI Bill program is also an entitlement program that allows schools to be reimbursed for tuition and fee charges for eligible veteran students at public universities, community colleges and private institutions. With the introduction of the Post-9/11 GI Bill, this is the first time that schools will receive direct payments from the U.S. Department of Veterans Affairs (VA).  Post-9/11 GI Bill benefits for housing and book stipends are sent directly to the student, as are benefits from other federal veteran education programs.

In order for schools to receive payment from the VA for tuition and fees covered by the Post-9/11 GI Bill program, schools will need to explicitly bill the student for tuition and fees charges.
Students who are not charged tuition and fees cannot receive that portion of their Post-9/11 GI Bill benefits. 

Because VA benefits are considered an entitlement, they are not reduced based on other financial aid for which a student may be eligible. VA payments of tuition and fees and Yellow Ribbon benefits should be considered as if the student paid them to the institution.

For purposes of the Post-9/11 GI Bill, tuition is considered the actual established charges for tuition that similarly circumstanced non-veterans enrolled in the program of education are required to pay. Fees are defined as 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, and include, but are not limited to, health premiums, freshman fees, graduation fees and lab fees.

For 2009-10, the maximum tuition amount being paid in Illinois is $575.08 per credit hour and the maximum total fees per term is $12,832. A listing of the 2009-10 in state tuition and fee maximums for all states can be found on the VA’s Web site. 

Impact on Schools

The impact of the new program will vary by school. Schools that are near military bases with a high base allowance for housing (BAH) will likely see a higher number of Post-9/11 program users. However, some schools are near bases where the BAH is as much as $500 below the monthly Montgomery GI Bill (MGIB) benefit. In these situations, schools will probably have more students stay with a MGIB/IVG combination.
 
Another consideration is that more veteran students may now opt for private schools. Many private schools are located in areas with a high BAH.  Private schools can also participate in the Yellow Ribbon program, where the government matches discounts provided by the school. The initial high level of coverage, coupled with the Yellow Ribbon program, and MAP and Pell if the veteran qualifies, can significantly reduce the cost of attendance at a private institution.

Payment Processing for Post-9/11 GI Bill Tuition and Fees

Payment processing for the Post-9/11 began on August 1, 2009. In order to receive Post-9/11 payments for tuition and fees, schools will need to explicitly charge tuition and fees to the veterans. If there are no charges to bill to the student, then schools will be unable to receive the federal reimbursement.
 
Institutions must report tuition and fees separately on VA Form 22-1999, Enrollment Certification. Amounts reported to VA should be actual charges prior to any reductions or financial aid.

Payment processing steps are outlined in a presentation given by the VA at the NASFAA 2009 Annual Conference. A copy of the presentation, which includes several screen prints of VA Once, can be found on NASFAA’s Web site in the Conference section.

Choosing the Best Veteran Education Program

For many eligible veterans, the Post-9/11 GI Bill provides more attractive benefits than other veteran education benefit programs, however, veterans should carefully review all their options before applying for Post-9/11 GI Bill benefits.

The document entitled Choosing the Veteran Education Programs that are Best for You provides a variety of scenarios and comparisons for students to review, including both state and federal programs. Students should pay careful attention to the differences that occur when changing from full-time to half-time, as well as to the amount of the housing allowance the student would be eligible to receive based on the location of the school he or she would be attending.

Coordinating Post-9/11 GI Bill Benefits With Other Programs

In situations where a student is not eligible for 100% of the Post-9/11 GI Bill tuition and fee benefits, a student may be able to use other state and federal programs such as the Illinois Veteran Grant (IVG), Monetary Award Program (MAP), Illinois National Guard (ING) Grant or Federal Pell Grant to cover remaining costs. 

Using IVG Benefits

If a student is using Post 9/11 GI Bill, but is not eligible for 100% of the federal benefits, he or she can use IVG to cover remaining tuition and fees. Schools would bill the VA for the initial amount of tuition and fees being charged to the student and the VA will pay the appropriate percentage based on the student’s benefit level. The school would then request payment from ISAC for the remaining tuition and fee charges not covered by the Post-9/11 GI Bill. It is important to note that students should be charged full IVG eligibility units based on their level of enrollment. The number of units is not prorated according to the adjusted amount of tuition and fees paid by IVG.  

If a student is eligible to receive 100% tuition and fee benefits from the Post 9/11 GI Bill and chooses to utilize that program, the student would not need to use IVG benefits, however, it is the student’s choice as to which benefit to use. 

If a student has already applied to the VA and been determined eligible for Post-9/11 GI Bill benefits, then it would probably be a better choice to use Post-9/11 GI Bill benefits since the student could also receive a housing allowance and a book stipend in addition to tuition and fees.

If, however, the student believes he is eligible for the Post-9/11 GI Bill, but has not yet applied to the VA, he should look carefully at how his benefits may be affected by making the irrevocable decision to apply for Post-9/11 and give up other benefits such as Chapter 30 Montgomery GI Bill (MGIB).  It is through the application process for Post-9/11 GI Bill that the student elects to receive this benefit in lieu of other federal veteran education benefits.

Students who are eligible for MGIB benefits may continue to utilize those benefits in combination with IVG rather than opt to use the Post-9/11 GI Bill. In this case, the monthly MGIB stipend is used to cover living expenses and IVG is used for tuition and fees. For some students, it is in their best interest to use MGIB and IVG rather than the Post-9/11 GI Bill, as the MGIB stipend can be higher than the housing allowances paid under the Post-9/11 GI Bill.

If the student were using MGIB benefits along with the Illinois Veteran Grant, then the school would submit a claim to ISAC for IVG payment. 

Using MAP

If a student is receiving Post-9/11 GI Bill benefits at a reduced rate, and the student is eligible for both MAP and IVG, the student could only use IVG benefits to pay remaining tuition and fees not covered by the Post-9/11 GI Bill. The student cannot opt to use MAP first. And, since MAP and IVG both cover tuition and mandatory fees, the two programs would never be used together.  

If a student is eligible for MAP but not IVG, then the student could use MAP to pay remaining tuition and mandatory fee charges if receiving Post-9/11 GI Bill benefits at less than 100%.  If the student is eligible for IVG and MAP, but is attending a private institution where IVG cannot be used, then the student could use MAP to cover remaining tuition and fee charges not covered by the Post-9/11 GI Bill.

In situations where the student is also receiving a Yellow Ribbon benefit, MAP could be used to cover remaining tuition and mandatory fee expenses not covered by the federal veteran education benefits.

In all cases, federal veteran programs should be used first. VA benefits, including the Yellow Ribbon Program, are considered an entitlement and are not reduced based on other financial aid for which a student may be eligible.

If a student uses MAP to cover remaining tuition and mandatory fee charges, the student would be charged usage based on their enrollment level; MAP Paid Credit Hours are not prorated because the award amount is reduced. 

Using ING

It is also possible for students to use ING Grant benefits with the Post-9/11 GI Bill. The ING  Grant pays tuition and certain fees and could be used to covering remaining costs for students receiving Post-9/11 GI Bill benefits at less than 100%.   For students who may be eligible for ING, IVG and Post-9/11, they should keep in mind that the ING Grant can only be used while in the National Guard and Post-9/11 benefits must be used within 15 years of the date of their last discharge. There is no timeframe within which IVG has to be used.

Using Pell

Veteran students may also qualify for the federal need-based Pell Grant. The amount the student is eligible for will depend on the student’s Expected Family Contribution (EFC), cost of attendance at the school and enrollment status. The maximum Pell Grant for FY2010 is $5,350. Pell Grant money can be used for all school related expenses, not just tuition and fees.  

Refunds and Overpayments

If a student has a change in enrollment or attends a portion of the certified enrollment period but does not complete the term, schools should follow their established refund policy in regard to Post-9/11 GI Bill benefits. If a refund is due, it should be issued to the student.  Refunds for partial attendance should not be returned to the VA. The student is responsible for any overpayment of VA benefits incurred as a result of a change in enrollment or non-completion. VA will calculate the amount of overpayment of benefits and notify the student. The student will then be responsible for making repayment arrangements with the VA.

The only time that a school should return a tuition and fee payment to the VA is if:

• the student enrolled but never attended
• the payment was sent to the wrong school
• the student dies during the term and a refund is due.

Other Veteran Information

Effective July 1, 2009, all federal veterans education benefits are to be excluded from Estimated Financial Assistance (EFA) when packaging a veteran student’s financial aid. Montgomery GI Benefits (Chapter 30) had already been excluded from EFA for subsidized Stafford loans.  Now, all federal veterans education benefits, including Chapter 33 Post-9/11 GI Bill, as defined by the Higher Education Act (HEA) are excluded from the definition of EFA for the purposes of campus-based programs and all Federal Family Education Loan (FFEL) and Direct Loan (DL) programs.

The exclusion had originally been specified as part of the Higher Education Opportunity Act of 2008 with an effective date of July 1, 2010, but was changed as the result of the Higher Education Act Technical Corrections Bill (HR 1777) that was signed into law on July 1, 2009.

On Friday, August 7, 2009, Governor Pat Quinn signed Senate Bill 1624 into law.  Know as the Higher Education Veterans Service Act (Public Act 096-0133), this legislation provides greater educational and informational resources for veterans attending Illinois public colleges and universities. While many public and private institutions have already developed resources to serve veteran populations, the intent of this legislation is to further encourage best practices and ensure that student veterans are served consistently and effectively throughout the entire state.

The Higher Education Veterans Service Act will require schools to create, publish and distribute a comprehensive guide of services available specifically to veterans at their institutions. The bill also requires schools with 1,000 or more full-time students to appoint a coordinator to act as a liaison between administrators and student veterans. Within 60 days of the law’s effective date, schools must produce a comprehensive guide to services and post the information online.

Within six months, schools with 1,000 or more full-time students must appoint a Coordinator of Veterans and Military Personnel Student Services. The Coordinator will serve as an ombudsman to assist student veterans, military personnel and their families, and also act as a liaison and advocate with the college or university for the needs of student veterans.

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