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VETERANS' EDUCATIONAL BENEFITS QUICK GUIDE

(Note: The MDHE cannot guarantee that data concerning veterans' educational benefits is all-inclusive. Specific questions about veterans' educational benefits should be directed to the Veterans' Administration (VA).)

Definition of a Veteran: A veteran is any individual who has engaged in active duty in the United States Army, Navy, Air Force, Marines, or Coast Guard and was released under a condition other than dishonorable.
Veterans' Benefits and Estimated Financial Assistance (EFA):

For Federal Student Aid (FSA) purposes, veterans' educational benefits are considered to be resources, or EFA, and are not reported on the FAFSA as income. Veterans' educational benefits MUST be included as resources when calculating a student's eligibility for campus-based programs. However, you may exclude as a resource a portion of any subsidized Stafford Loan that is less than or equal to the amount of the student's Chapter 30 Montgomery GI Bill benefits.

When determining the amount of a subsidized Stafford Loan, EFA does NOT include veterans' educational benefits paid under Chapter 30 of Title 38 of the United States Code (Montgomery GI Bill-Active Duty). This is the ONLY exclusion of veterans' benefits from the EFA for subsidized Stafford Loans.

When determining the amount of an unsubsidized Stafford Loan, EFA includes all veterans' educational benefits.

Veterans' Educational Benefits that are Used as Resources and EFA for Determining Title IV Aid Eligibility:

Montgomery GI Bill - Active Duty (Chapter 30)

Eligibility Requirements
There are four eligibility categories for Chapter 30 benefits:

  • Category I includes veterans who began active duty for the first time after June 30, 1985.
  • Category II includes military retirees who entered the service or agreed to delayed entry before January 1, 1977, and who were eligible to receive Chapter 34 (VEAP) benefits on December 31, 1989.
  • Category III includes those who were voluntarily or involuntarily separated from the service because of a reduction in personnel.
  • Category IV includes those who were able to convert their education benefits from Chapter 32 (VEAP) to Chapter 30.

Application
Students should complete VA Form 22-1990, Application for Education Benefits.

Vocational Rehabilitation (Chapter 31)

Eligibility Requirements
A veteran or serviceperson pending separation from military service for medical causes may be eligible if:

  • a service-connected disability was incurred or aggravated on or after September 16, 1940, which entitles the applicant to VA disability compensation, and
  • applicant's disability causes an employment handicap which has not been overcome by education or training.

Application
Students should complete VA Form 28-1900, Disabled Veterans Application for Vocational Rehabilitation.

Post-Vietnam Era Veterans' Educational Assistance Program - (VEAP) (Chapter 32)

Eligibility Requirements
Eligible veterans must have:

  • initially entered active duty from January 1, 1977 to June 30, 1985, and
  • must have enrolled and contributed to VEAP before April 1, 1987.

Note: Many VEAP era veterans who separated from active duty after February 2, 1991, had the opportunity to convert from Chapter 32 to Chapter 30.

Application
Students should complete VA Form 22-1990, Application for Education Benefits.

Dependents Educational Assistance Program - (DEA) (Chapter 35)

Eligibility Requirements
Eligible dependents of veterans include:

  • A child (ages 18-26) of a veteran:
    • who is totally and permanently disabled due to a service-related condition
    • who died in service
    • who died of a service-connected disability
    • who died while evaluated as having total and permanent service-connected disability
    • who is listed as a POW or MIA
  • The surviving spouse of a veteran:
    • who died of a service-connected disability
    • who died in service
    • who died while evaluated as having total and permanent disability resulting from a service-connected disability
  • Surviving spouses whose benefits stopped when they remarried can receive DEA benefits again if:
    • their remarriage ends by death or divorce
    • they cease to live with the person to whom they presented themselves in public as married to
  • A spouse of a veteran or serviceperson:
    • who has a total and permanent disability resulting from a service-connected disability
    • who is listed as a POW or MIA

Application
Students should complete VA Form 22-5490, Application for Survivors' and Dependents' Educational Assistance.

Montgomery GI Bill-Selected Reserve (Chapter 1606)

Eligibility Requirements
Basic eligibility requires a six year obligation to serve in the Selected Reserve and satisfactory participation in required Selected Reserve training. Selected Reserve components include:

  • Army Reserve
  • Naval Reserve
  • Air Force Reserve
  • Marine Corps Reserve
  • Coast Guard Reserve
  • Army National Guard
  • Air National Guard

Application
Students should complete Form 22-1990, Application for Education Benefits.

*Note: Section 480(c) of the HEA lists additional military educational benefits that must be considered as a resource or, as applicable, EFA when determining eligibility for Title IV Aid:

  • Reserve Officer Training Corps Scholarship (Title 10, Chapter 2)
  • Selective Reserve Educational Assistance Program (Title 10, Chapter 107)
  • Reserve Officer Training Corps Program (Title 37, Chapter 2)
  • Restored Entitlement Program for Survivors, or Quayle Benefits (Public Law 97-376, section 156)

However, because the VA does not provide these benefits, further information about these programs is unavailable.

Veterans' Educational Benefits that are NOT Considered a Resource for FSA Purposes, but should be Reported on the FAFSA as Untaxed Income:

Veterans Affairs Student Work-Study Allowance Program

Eligibility Requirements
Eligible students include those students pursuing three-quarter or full-time programs of education and training under:

  • Chapter 30
  • Chapter 31
  • Chapter 32
  • Chapter 35
  • Chapter 1606

The VA will select students for the work-study program based on different factors:

  • Disability of the student
  • Ability of the student to complete the work-study contract before the end of his or her eligibility for education benefits
  • Job availability within normal commuting distance to the student
  • VA will give the highest priority to a veteran who has a service-connected disability rated by VA at 30 percent or more

Application
Students should complete VA Form 20-8691, Veterans Application For Work-Study Allowance, and submit it to the nearest regional VA office.


     

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