Clock Hour -

The Post-9/11 GIBILL
Clock Hour Schools
Linda McAllister
Chief, Education Liaison Officer
U. S. Department of Veterans Affairs
Atlanta Regional Processing Office
Chapter 33 NCD Payments
 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 Payments
 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 Payments
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 Payments
Tuition 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
Chapter 33 NCD Payments
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 Payments
Books 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
Tuition & Fee Reporting
Schools should report the amount of tuition and
fees charged after deducting any amounts
paid with Federal Funds (excluding title IV
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)
The list above is not all-inclusive. It only lists examples of Federal programs that
offer tuition assistance to certain individuals.
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
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)
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:
Scholarship Aid
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?
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.
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
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).
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
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,
Tuition & Fees Example:
What amounts would the SCO at a private school report to
the VA for this term as the net actual cost?
08/22/12--12/16/12 (Fall 2012)
14 Residence Hours
$ 300
Financial Aid awards:
= Pell grant
= Veteran discount given by school
= Subsidized loans
= Unsubsidized loans
= National Guard Tuition Assistance (TA)
= Kiwanis Club scholarship*
$ 700
$ 200
*Kiwanis Club scholarship is to pay for tuition.
$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.
U.S. Public Schools: Scenario
What amounts would the SCO report to the VA for this
term as the net actual cost?
10 Residence Hours
Tuition: $ 1,000
$ 300
Financial Aid awards:
= Pell grant
$ 500
= Veterans of Foreign Wars (VFW) scholarship $ 200
*The purpose of the VFW Scholarship is to help the student with
general expenses and books.
$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
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
 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:
 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:
[email protected]
Toll free number:
1-612-970-5782 fax
 GI Bill Website (
 GI Bill Hotline: 1-888-GIBILL-1
» 1-888-442-4551

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