Understanding Veterans Benefits
The Departments of Defense, Transportation, and Veterans Affairs issued a joint Final Rule in the Federal Register of May 14, 1999, raising the level of support members of the military Selected Reserve will receive under the Montgomery GI Bill Selected Reserve (MGIB-SR).
Full-time members of the Selected Reserve who are eligible for MGIB-SR benefits will receive $251 per month in educational benefits for the period of September 30, 1998, through September 30, 1999. Selected Reservists enrolled less than full-time will receive a prorated amount. A copy of the Federal Register can be found at the Government Printing Office site at www.access.gpo.gov/su_docs/aces/aces140.html.
Under Title IV Student Financial Assistance rules, veterans benefits are generally considered Estimated Financial Assistance (EFA) for need analysis purposes. The MGIB-SR benefits would fall in this category.
However, benefits under the MGIB - Active Duty (as opposed to the MGIB-SR) program are not counted as EFA for subsidized Federal Stafford loans.
MGIB benefits for veterans of active duty service were excluded from EFA for subsidized Stafford loans with the passage of the Higher Education Amendments of 1998. National service education awards and post-service benefits under the National and Community Service Act were also excluded from EFA for subsidized Stafford loans, yet such awards and benefits are considered EFA for other federal student aid programs, including unsubsidized Stafford loans.
(There are discussions in negotiated rulemaking, currently underway in Washington, to offset a student's EFA for campus-based programs by reducing the amount of the student's MGIB - Active Duty and Community Service Act benefits by the amount of his or her subsidized Stafford loan.)
Effective October 1, 1998, schools are no longer required to submit the amount of the student's Estimated Financial Assistance to the lender or guarantor when certifying a Stafford loan. However, schools should retain documentation of the EFA in the student's file, especially when the EFA differs among Title IV programs as it may for students with MGIB - Active Duty benefits or National and Community Service Act benefits.
For questions concerning veterans benefits and EFA, contact TG Customer Support at (800) 252-9743, ext. 4444, or send an message to email@example.com.
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