ScottRiqui wrote:Here's the wording from the "G.I Bill 2.0" revision (emphasis added):
"The VA will pay the actual net cost for in-State tuition and fees assessed by the institution for the program of education after the application of—
– any waiver of, or reduction in, tuition and fees; and
– any scholarship, or other Federal, State, institutional, or employer-based aid or assistance (other than loans and any funds provided under section 401(b) of the Higher Education Act of 1965 (20 U.S.C. 1070a) [Federal Title IV]) that is provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees;"
So all reductions in tuition and fees are applied first, then the VA pays what's left, subject to your eligibility limits. The last bolded part is why there's been so much discussion here about "re-coding" scholarships. If you can get the school to say that the scholarship is NOT specifically designated for tuition/fees, then it won't reduce the tuition/fees bill that gets sent to the VA for payment.
Right. I just wonder if that eligibility percentage is based on the original amount, without the scholarship. So if there is 10k left after scholarship, the VA pays all of that because they would have paid up to 27k (90% of full tuition.) Hm.
The VA doesn't necessarily even know what the pre-scholarship tuition/fees amount was (although they probably do).
All they really need to know is what the school submits for reimbursement, which is post-scholarships. To use your example, the school is submitting a claim for $10k to the VA. The VA doesn't need to know whether tuition was $30k and you had a $20k scholarship, or tuition was $40k and you had a $30k scholarship, or maybe tuition was only $10k to begin with. All they see is that the school is submitting a claim for $10k, and the VA decides how much of that to pay based on eligibility percentage.
It's kind of a screw job for the student, but the "payer of last resort" setup was probably a necessary cost savings to offset the fact that now the GI Bill pays full in-state tuition at any public school, rather than there being an hourly cap like it used to be.