VA Finally Catches Up on 15-Year-Old Education Benefit Laws
Published Date: 1/16/2025
Rule
Summary
Starting March 17, 2025, the VA is updating how it pays education benefits for Post-9/11 vets, Fry Scholarship kids, and others using GI Bill programs. These changes make it easier to get money for more types of schooling and fix how overpayments are handled. If you’re a veteran, a surviving child, or a student using these benefits, expect smoother payments and new rules that help you get the most out of your education funds.
Analyzed Economic Effects
8 provisions identified: 4 benefits, 3 costs, 1 mixed.
Expanded Post‑9/11 GI Bill Access
VA is implementing Post-9/11 GI Bill improvements that expand the types of programs students may pursue and refine how payments are administered to make benefit delivery easier and more efficient. These changes implement the Post-9/11 Veterans Educational Assistance Improvements Act of 2010 and related statutes and take effect March 17, 2025.
Temporary School‑Closing Payments
VA may authorize payment for a temporary school closing that occurs during a certified period of enrollment if the closing is due to an emergency or an Executive Order-based policy. An individual may not receive more than 4 weeks of payment for temporary school closings in any 12-month period, and a school may request administrative review within one year of VA's notification letter.
Housing Allowance: Online vs On‑site
VA clarifies that an individual pursuing a program solely via distance learning at a rate of pursuit greater than 50% receives a monthly housing allowance equal to 50 percent of the national average. If an individual takes even one on-site class (i.e., is not pursuing solely via distance learning), the individual may receive the full monthly housing allowance based on the campus locality.
Yellow Ribbon Access for Fry Scholars
The Yellow Ribbon Program Agreement collection is revised to include individuals who establish eligibility for the Fry Scholarship, allowing Fry Scholarship recipients to receive Yellow Ribbon Program benefits if an institution opts into the program. VA estimates 5,600 institutions may respond to indicate participation and caps.
Fry Scholarship Application Rule
Certain children must submit an application to establish eligibility for the Fry Scholarship, and some individuals must elect between the Fry Scholarship or Dependency and Indemnity Compensation (DIC) or Survivors' and Dependents' Educational Assistance (DEA) to establish eligibility. VA estimates 83,972 respondents for these application requirements, with an average burden of 45 minutes per response.
School Liability for No‑Show Overpayments
Revised Sec. 21.9695(b)(3) makes an educational institution liable for an overpayment of VA educational assistance when a student never attends classes for which the school certified enrollment, or when the student completely withdraws on or before the first day of the certified enrollment period. This change aims to prevent institutions from receiving payment for education not provided.
Annual Reporting Fee Rules for Institutions
VA will pay an annual reporting fee to educational institutions that furnish VA education benefits, but when computing the fee VA will not count an individual whose only receipt of educational assistance in a calendar year was Top-Up, a rural relocation payment, or reimbursement for a national test or licensing/certification test. Institutions must certify reasonable diligence and that reporting fees received after January 4, 2011 will be used for VA certifications or veteran support programs.
New Forms, Certifications, and Reimbursement Claims
The rule adds or revises multiple collections of information requiring students and applicants to submit forms or certifications to receive payments or reimbursements. Examples: Fry Scholarship eligibility forms (estimated 83,972 respondents at 45 minutes each), reimbursement claims for national admission tests (310 respondents), licensing/certification test reimbursement (4,210 respondents; 12,630 responses), monthly flight-training certifications (3,900 respondents; 23,400 responses), correspondence lesson certifications (154 respondents; 616 responses), and VA enrollment certification using VA Form 22-1999 (estimated 1,266,616 respondents; 3,799,847 responses). VA estimates associated burden hours and respondent costs for each collection.
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