November 26, 2012

Scholarships, Financial Aid, and your GI Bill

Many veterans, servicemembers, and military family members don't apply for college financial aid, because they feel that they don't need it, or won't qualify for it.  However, most colleges strongly suggest it, and here's a few reasons why:
  • Financial aid can be used to secure your enrollment while you're waiting for VA funding, so you don't have to pay "up front" and wait for VA reimbursement
  • Financial aid is a good "backup" plan in case of delays in VA processing
  • Most forms of financial aid can also be used for books, technology or lab equipment, school supplies, room & board, transportation, childcare, or any other expense related to your education
  • You might want to save your VA educational benefits for a future term, in which case you can use financial aid to cover your current-term expenses
  • You might want to transfer some of your VA benefits to a family member (if you're eligible), and use financial aid to cover your own expenses instead
  • You'll eventually exhaust your benefits; careful management of your benefit entitlement and financial aid awards will help you maximize your benefits and achieve your educational goals
  • VA benefits are usually not counted as income on financial aid applications, which means you may qualify for more money than you think!
There are basically four forms of financial aid available to college students:
  • Federal (Title IV) Financial Aid, which includes the Pell grant, work study awards, subsidized and unsubsidized loans, and parent supplemental loans.  To apply, go to www.fafsa.gov.  You will need to apply every year, and can apply as early as January 1, but you'll need the previous year's tax information to complete your FAFSA.  Check with your school's financial aid office to find out when the priority application deadline is, usually early spring.  After the priority deadline, you can still apply for financial aid, but funds are usually awarded first-come, first-served until all awards are gone.  The Pell grant does not need to be repaid, but the loans do.  It's usually a good idea to fill out the FAFSA to have a financial aid record on file, even if you don't need it and decline any offer of student loans.  If your situation changes and you find that you need that loan after all, you can usually get it fairly quickly (in a few days), once you've been approved.
  • State awards vary by state; check with your school's financial aid office for more information.
  • Campus awards may include scholarships, grants, tuition waivers, teaching assistant-ships, research awards, fellowships, stipends, loans, a campus job, or any combination.  Again, check with your school's financial aid office for more information.  Most schools will automatically consider you for applicable state and campus awards once you complete the FAFSA, but some awards may need additional information or an application.
  • Private funding comes from any source not affiliated with your college or state, and may include scholarships, grants, tuition subsidies, or fellowships from civic organizations, religions organizations, clubs, fraternal orders, banks, local businesses, employers, philanthropic organizations, charitable foundations, unions, private foundations, etc.  There are many websites that list scholarship opportunities; avoid references that charge a fee for information.  For veterans and military families, a good resource is the National Resource Directory, http://www.nrd.gov/.   Eligiblity criteria, application procedures, funding amounts, and deadlines vary by award, so take the time to research them carefully.  Here's a tip: smaller scholarships are not as competitive, so you may have a better chance to nab several small awards rather than one big one!
If you're using the Post-9/11 GI Bill, there's one big catch that you need to keep in mind: the Net Payer Rule.  This rule went into effect on August 1, 2011, and may significantly impact your net financial award package.  Take the time to read the information below, and compare it against the financial aid awards you have or are considering applying for.  You may not want to spend the time on an application if the funds will be subject to the net-payer rule.

Net Payer Rule:  Under Public Law 111-377, any funding you receive that is paid directly to the University, and specifically for the sole purpose of defraying tuition and fees, must be applied before your Post-9/11 GI Bill and subtracted from the total tuition and fees reported on your enrollment certification.

What this means for you: if you receive a waiver, scholarship, or grant that pays your tuition and fees, you don’t get a refund of excess VA money. Plus, if you are retroactively awarded a waiver, scholarship, or grant that pays your fees, your school must return your excess VA money back to the VA.

Your responsibilities: You must ensure you are certified only for courses that satisfy graduation requirements, and that any restricted funding is subtracted from your reported tuition and fees. Ultimately, it’s YOUR responsibility to make sure your certification is correct.  You also have a responsibility to complete the classes you are certified for. If you don’t get credit for a class, you may have to pay back the VA.

114 comments:

  1. This comment has been removed by a blog administrator.

    ReplyDelete
  2. So if I am granted an assistantship because I'm doing research for my master's degree, I am not allowed to use my GI Bill benefits/ I have to pay it back? Will they not allow me to have the BAH for the Post 9/11 GI Bill because I'm smart and am working for the college while I'm in my program?

    ReplyDelete
    Replies
    1. Wow, I just realized I completely screwed up. I never should have taken the GI Bill; I should have done tuition repayment. I will never get to use my GI Bill because every program I am applying to has a tuition waiver because I will be a research/teaching assistant. And I can't transfer it. Fantastic.

      Delete
    2. Jenn, you didn't waste your GI Bill if it is still paying you a housing allowance. Remember, the GI Bill is intended to help you pay for college, and if you are using it in conjunction with fellowships and grants (common for graduate students), then it is still being used for its intended purpose. Please discuss this with your school certifying official.

      If you decide to stop using your GI Bill and rely solely on your financial aid package at your school, that's fine too. You have 15 years from your ETS date to use your remaining GI Bill entitlement, and you may decide to go back to school in the future for an additional credential, and you might use your GI bill then.

      Delete
    3. this is entirely incorrect. i take out loans and then the VA money is given directly to me.

      Delete
  3. Question is how can the school keep TITLE IV money's AND and all his post 911 bill tuition . Post 911 tuition covers the entire cost of his school

    ReplyDelete
    Replies
    1. If you have other charges on your student account, such as housing, books, parking, orientation, ID card, late fees, library fines, etc., then your Title IV financial aid may be applied to those charges. Otherwise, you'll receive a refund of excess financial aid to use for other (education-related) expenses.

      Every school has a different process for handling financial aid disbursements, though. Some schools apply it as a temporary credit to your account for future charges; some schools issue refunds by direct deposit, while others issue checks or apply it to a debit card. Some schools issue refunds immediately, while some schools have a waiting period for refunds (especially at the start of a term) in case you have other changes on your account.

      Please contact your financial aid counselor with questions about your Title IV aid and the refund/disbursement process.

      Delete
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  76. I FEEL LIKE CRYING AS I SHARE THIS TESIMONMY OF MINE Call me frank ...People of God i was recently laid off from a great job that was giving me food and shelter due to our bad economy . I registered on several job hunting sites and got busy fiinding another job. I came across several jobs but they didn't ...i then resolute to getting a loan online to pursue my long business dreams since i was having about $10,000 left from my savings and the entire cost for my business to kick off was billed at $50,000 which means that i needed $40,000 more to start this and i thought that going online would be better since most of them pose to grant loans at cheapest rate of %1 percent or less but i never realized that i was only digging my financial grave , low and behold i got brainwashed , deceived and even spell bound to sending all my left $10,000 to them for several fees , Omg , that was so heavy for me then because my family could barely feed trice delay after that incidence as we all grew lean and sickly . but i didn't give up as i knew that the worse thing that can happen to someone is to allow their dreams shattered due to a past failure , i told my lawyer and he advice specifically that there is a United State online based loan agency in the name of AMEIR MILLER LOAN AGENCY as they are currently offering loans now without any fear or problems simply because about 2 clients that he knows got loan from that firm as it is owned by a pastor , after hearing all this i prayed to God for his leading and also followed my lawyer's advice in which i applied but God actually showed his face as this God sent online loan agency granted me this loan funds within 48 hours without any form of problems or stories after i meant with their terms and conditions.indeed at an interest rate of %2 percent , ya all can go talk to them using these ameirmillerfinancialinstitute@gmail.com or ameirmillerclassicloaninstitute@yahoo.com , ameirmillerapprovedloans@usa.com God bless yall for taking out time to reading my message to the world .

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