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News from Rep. Stephanie Herseth Sandlin
For Immediate Release
Contact: Betsy Hart, 202-226-8555

HERSETH SANDLIN INTRODUCES VETERANS EDUCATION IMPROVEMENT ACT

Legislation Provides Common-Sense Improvements and Updates to Montgomery GI Bill

April 3rd, 2008, Washington, DC-This week, U.S. Rep. Stephanie Herseth Sandlin introduced The Veterans Education Improvement Act, a bill to provide veterans with educational benefits that meet their needs once they return home and reflects the sacrifice of today’s American heroes.

Herseth Sandlin said, “The World War II Montgomery GI Bill was one of the most important pieces of legislation in our nation’s history. For every dollar the program invested in veterans, seven dollars were generated in economic benefit for the country. The Veterans Education Improvement Act will update and improve the Montgomery GI Bill to better reflect today’s world, and ensure that today’s soldiers have the resources they need to continue or begin their education when they return from service.”

Herseth Sandlin introduced the bipartisan Veterans Education Improvement Act as part of her role as the Chairwoman of the Economic Opportunity Subcommittee. The bill is the product of numerous hearings held by her Subcommittee since the beginning of the 110th Congress, which allowed for close evaluation of the Montgomery GI bill and input from veteran service organizations, education leaders, government agencies, and other policy experts. The bill is cosponsored by Subcommittee Ranking Member John Boozman (R-AR).

The Congressional Research Service (CRS) reports that the current education benefit under the Montgomery GI Bill covers just 73% of the cost of a four year public university. This deficit in coverage has led to a significant number of servicemembers who qualify for education benefits but don't use them. Herseth Sandlin’s bill would help address this shortfall, along with other important improvements, including:

• Substantially increases the amount of basic education assistance for veterans equal to the average cost of the tuition at a four-year public college or university
• Provides veterans with a monthly cost of living stipend
• Allows the overall assistance to be used for both business courses and licensing and certification exams, and to repay federal student loans
• Dramatically expands the opportunity for servicemembers to enroll for the benefits, even if they are beyond the initial opportunity for automatic enrollment
• Modifies upward the rate of reimbursement for State Approving Agencies, an important partner in administering the benefits with the VA
• Extends the time limitation for use of education benefits from 10 years to 15 years, more fully accommodating the transition from military to civilian life.

“Those serving in our armed forces deserve to be protected as best we know how – not just with weaponry, armor and other equipment, but also health care, education, and support for the families who await their return,” Herseth Sandlin said. “The legislation I introduced provides specific improvements and adjustments meant to make it easier, not harder for veterans to access the education benefits they’ve earned following their service and contributes to the overall national economy. I am optimistic that there is growing support for a bill that addresses necessary changes to veterans’ education benefits, and I’ll keep working toward that goal this year.”

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Congresswoman Stephanie Herseth Sandlin serves South Dakota in the U.S. House of Representatives. She is a member of the Blue Dog Coalition, a group of moderate Democrats committed to fiscal discipline and strong national security, and is co-chair of the Rural Working Group, which is dedicated to raising the profile of issues important to rural America. She also serves on three committees vital to South Dakota’s interests: Agriculture, Veterans’ Affairs and Natural Resources. In the 110th Congress, Rep. Herseth Sandlin was one of only 15 members appointed to serve on the Select Committee on Energy Independence and Global Warming.

SECTION BY SECTION SUMMARY OF H.R. 5684

Section 1: Title: The Veterans Education Improvement Act of 2008.

Section 2: Increase Amount of Basic Education Assistance.

• Increase the amount of basic educational assistance for individuals whose obligated period of active duty is three years from $800 to $1,450.
• Increase the amount of basic educational assistance for individuals whose obligated period of active duty is two years on a full-time basis $650 to $1,250.

Section 3: Extension of time limitation for use of eligibility and entitlement to educational assistance.

• Extension of time limitation: entitlement expires at the end of the 15-year period beginning on the date of the individual last discharge or release from active duty

Section 4: Monthly Stipend for recipients of educational assistance allowance.

• Above half-time basis will receive a monthly stipend of $500.
  Less than a half-time basis will receive a monthly stipend of $250.

Section 5: Extension of period for collection of $1,200 fee for basic educational assistance.

• Basic pay for an individual who is member of an active duty component shall be $50 for each of the first 24 months.
• Basic pay for an individual who is member of the Selected Reserve shall be $50 for each of the first 24 months.

Section 6: Use of educational assistance for business courses and seminars.

• Basic educational assistance will also include business courses, seminars and continuing education courses.
• Survivors’ and dependents’ educational assistance: basic educational assistance will also include business courses, seminars and continuing education courses.

Section 7: Use of educational assistance for courses taken to prepare for licensing or certification tests.

• Basic educational assistance will also include preparatory courses for licensing or certification test.
• Survivors’ and dependents’ educational assistance: basic educational assistance will also include preparatory courses for licensing or certification test.

Section 8: Use of education assistance to repay federal student loans.

• § 3020B. Use of educational assistance benefits for the repayment of Federal student loans for certain courses of education.
• Use of benefits: Individuals entitled to educational assistance may apply educational assistance to repay any Federal student loan balance for a course of education.
• Limitation on payments: the amount of an individual’s entitlement to educational assistance applied to the repayment of a student loan may not exceed $6,000 in any 12-mionth period.

Section 9: Opportunity to withdraw election not to enroll in educational assistance program.

• Opportunity to enroll may be made at any time while the individual is on active duty.
• Reduction in basic pay withdrawing election shall be reduced by $1,200; or individual pays $1,200 to the Secretary not later than 90 days after they are discharge r release form active duty.

Section 10: Montgomery GI Bill benefits not to reduce financial aid.

• Veterans’ education benefits shall not be considered as income when applying for federal financial aid.

Section 11: Extension of increase in benefit for certain individuals pursuing apprenticeships or on-job training.

• Survivors and dependents extension increase to January 1, 2014.
• Members of the Selected Reserve, Veterans Earn and Learn Act of 2004 extension increase to January 1, 2014.
• Certain other individuals, Veterans Earn and Learn Act of 2004 extension increase to January 1, 2014.

Section 12: Modification of rate of reimbursement of State and local agencies administering veterans education benefits.

• State Approving Agencies will be permanently funded at $19 million a year.

Section 13: Provision of educational assistance benefits for veterans discharged from active duty with general discharge.

• Active duty service: Educational assistance benefits for veterans shall apply to an individual who is discharged from active duty with a general discharge under honorable conditions.
• Members of the Selected Reserve: Educational assistance benefits for veterans shall apply to an individual who is discharged from active duty with a general discharge under honorable conditions.

Section 14: Increase in amount of reporting fee payable to educational institutions that enroll veterans receiving educational assistance.

• Reporting fee shall increase from $7 to $21.
• Reporting fee shall increase from $11 to $21 for eligible veterans and eligible persons whose educational assistance checks are directed in care of each institution for temporary custody and delivery and are delivered at the time of registration.

Section 15: Provision of additional areas of work-study for veterans.

• Allows for a placement of work-study programs for full time and half-time students.

Section 16: 5-year pilot program for on-campus work-study positions.

• The Secretary of Veterans Affairs will conduct a 5-year pilot program to expand the scope of qualifying work-study activities including positions on site at educational institutions.
• Type of work-study positions include: positions in academic departments or in student services.
• The Secretary shall set up the regulation for proper implementation of pilot program.
• Authorization of appropriations: $10,000,000 for each fiscal year, 2009 through 2012, to carry out the pilot program.

Section 17: Increase in employees for education service.

• The VA Education Service shall increase the number of full time employees by 150.

Section 18: Upgrade of certain information technology.

• The General Information office with advice from the Director of Education shall provide to this committee an action plan on how the Education IT system will upgraded.
• Each year the committee will be updated on the progress completed by the General Information Officer (GIO) and the Director of Education.
• VA Education IT system will be appropriated $8 million for FY 2009 and $3 million for 2010, 2011, 2012.

Section 19: Modification of advance payment of initial education assistance or subsistence allowance.

"Advance pay" shall be charged against the final months of the entitlement.
The amount advanced is reduced from the overall benefits.