Semantics Lead to Zero California Tuition Cap

By Terry Howell

The Department of Veterans Affairs recently reset the Post-9/11 GI Bill tuition rate for California to zero. This is because state operated colleges and universities in California do not charge tuition for resident undergraduate studies - California residents are required to pay "fees" only. This all comes down to a matter of semantics. As written, the New Post-9/11 GI Bill requires the VA to pay each veteran's tuition based on the highest in-state undergraduate tuition rate at a state operated school in the for the state of enrollment.

This "matter of sematics" will force veterans using the Post-9/11 GI Bill benefits to attend private colleges in California to find another source to help cover the tuition portion of their college bill.

According to a report by Inside Higher Ed, this tuition rate will likely mean that private colleges in California will be less likely to enter into the Yellow Ribbon Program, a federal matching program to cover the balance between the standard veterans' benefit payment rate and actual private college's tuition rates. This could result in veterans incurring thousands of dollars in out-of-pocket expenses or student debt each semester.

The following table demonstrates what this means to veterans attending school on campuses located in California:

Post-9/11 GI Bill Benefits	Attending California State Run School*	Attending a Private University
Tuition Coverage	100%	0%  **
Fees	Up to $6,587 per term	Up to $6,587 per term
Housing Allowance	$1,716 per Month	$1,716 per Month
Book Stipend	Up to $1,000	Up to $1,000

* Example Cal State Sacramento
**Veterans will be responsible to find alternative means for covering the tuition costs - student loans, grants, "yellow Ribbon, out-of-pocket.

Note: This is another example of why it is critical thet veterans choose the school and GI Bill package that best suits their needs. Call 1-888-GIBILL-1 to speak to a VA representative.

Comments

[Erik]

California’s generous in-state vcollege tuition policies have state lawmakers scrambling to make a last-minute change in the Post-9/11 GI Bill to get more money for veterans in their state.

The Veterans’ Educational Equity Act, introduced Tuesday, is the result of a California policy under which the state covers all tuition costs for in-state resident students at public colleges and universities.

But under the Post-9/11 GI Bill, maximum benefits for students attending private schools are based on the most expensive tuition and fees in each state for undergraduates paying in-state tuition.

The bill asks that California be assigned an annual GI Bill cap of $6,586.51, which is the amount of taxes and fees at four-year public colleges, said Lindsey Mask, spokeswoman for the bill’s chief sponsor, Rep. Howard “Buck” McKeon, R-Calif.

Mask said that because of how the new GI Bill will work, public colleges and universities will be paid the $6,586.51 in taxes and fees for veterans, but private institutions will receive only a reduced fee, about $1,000.

Those using the GI Bill would still be eligible, if they meet other requirements, to receive the monthly living stipend, a book allowance and other benefits of the new program.

Enrollment has started for the new education benefits plan, which takes effect Aug. 1.

The bill had 20 original cosponsors and more people are signing on, she said.

But legislation to change the formula may not be needed if lawmakers can get the Veterans Affairs Department to make an administrative change in GI Bill procedures.

Rep. Bob Filner, D-Calif., House Veterans’ Affairs Committee chairman, who was not among the original sponsors, has been working with VA to get the benefit formula changed for his state.

VA officials are aware of the California issue but are making no commitments about changes. Senior VA officials have been trying to discourage lawmakers from making any changes in the new GI Bill program for fear it will complicate or delay its start date and the payment of the first benefits, which could begin as early as Aug. 3.

In a statement, McKeon said some veterans actually will suffer from California’s generous education program if the benefits formula does not change.

“California’s prohibition on tuition was meant to hold college costs down, not unfairly drive them up for our state’s veterans,” he said.

His bill would ensure California veterans “can benefit from the full amount to which they are entitled under the post-9/11 GI Bill,” he said.

[Jeb]

Sadie,

Good point, you did your homework. The PL 110-252 says that VA will pay established charges. I must point out that the law does clarify what "established charges" means (which are tuition and fees), so that schools wouldn't charge the VA for things like campus dining hall meal plans, late registration fees, parking tickets, etc.--only tuition and mandatory fees. It's just that VA used that clarification to erroneously justify their separation of tuition and fee formula.

We all should be writing our congressman and veterans advocacy groups because, as far as I'm concerned, they don't spend time browsing these blogs.

[Sadie]

I have contacted VA, Congress, and our Fearless Leader (because VA is part of the Executive branch.) I went and looked at the actual law. It does NOT, in fact, say "tuition". What it actually SAYS is "established charges" for a resident at an in-state school.

I have asked all the above to either A--issue a clarification to VA (who apparently finds "established charges" confusing,) or B--pass an amendment to spell it out, in detail, by state.

It's Public Law 110-252 (Section 3313,)if you want to look it up.

[Terry Howell]

Jeb - Thanks for the thoughtful response. Very good points.

I'll be in contact.

[Jeb]

Terry--I don't mean to downplay your expertise. In fact, aside from the information on the GI Bill website, I find your articles to be the most accurate among all the other non-VA sources that have written on this topic. I commend your efforts to get us all the facts. I'd like to add some other info to my previous comments.
1. Do a search on a Chronicle of Higher Ed article, 13 MAY 09, titled "California Officials Continue to Fight For Changes in New GI Bill Payment Model". Read the CA official's comment about the tuition and fee formula. She made an interesting comment that the formula is not in the legislation. Where I work, it's my job to track this legislation also. The formula that the VA pulled on us came out of nowhere. If you tracked this, you'll find that it was not even mentioned in the draft rules. It was first introduced on the website (which changes constantly) AFTER the comment period for the draft regulations, and AFTER their rock-n-roll tour around the country, and then it was slipped into the final rules. So, they basically blindsided us all. Believe me, I would have recruited an army of veterans and servicemembers to fight that formula, because--you're right--the knowledgable people who should have been involved weren't.
2. I agree with you that the law as written is screwed up. I also believe that VA missed the intent of the law, as seen in the final rules. I happen to know some of the folks in TX, and the $1300 rate you see on the website is accurate. It seems pretty pretty high, but you know what? That's what VA asked for. But isn't that what a veteran enrolled in that program should be awarded and not worry about paying a single dime?

I've written a short paper on my analysis of this tuition formula issue that I'd like to send you. Perhaps that will help you see my logic. My email is jebber37@gmail.com if you want to read it.

[Terry Howell]

Jeb - You are only partially correct. Congress is aware, but they are not doing anything because the process needs to run its course.

BTW - two areas where you are dead wrong -
1. Give the VA a break! VA had lots of oversight. Beleive me I track this everyday. They even went around the country (LA, Chicago, D.C.) getting input and feedback on the final rule.
2. The law as written is screwed up. The language tied VA hands. The VA has gone out of their way to make this as generous as possible. Look at the payment rates for Texas - $1,300 per credit hour.
The main point is that the law was poorly written, the people who understand the education system were not in the room for the most part. In fact even Sen. Webb didn't recognize the final version of this law.

It is up to us to press congress to fix it. VA has no ability to add or change the law.

[Jeb]

Hey, Matt Nix. The VA is trying to shift blame onto Congress. The GI Bill that Congress passed, found in PL 110-252, actually provides a pretty good benefit. However, the only bad thing that Congress did was leave it up to VA to interpret the language. Senator Webb is already aware of the issue and he's not too happy. But no one is D.C. has gone public about this issue yet. I suspect that no one wants to admit there wasn't any oversight or fact-checking in the development of the final rules. I also suspect that after 1 AUG, if this thing really blows up in our faces, then someone in D.C. who's already well aware will come out and play "Savior". Like most things, this is political chess, and unfortunately, us veterans are the pawns.

[sfuern]

Here is an interesting blog post from Mike Offerman of Capella University on this topic:

http://tinyurl.com/rbkzaq

[sfuern]

An interesting blog post by Mike Offerman of Capella University on this topic:

[Matt Nix]

This is absolutely unbelievable! I encourage everyone to write their congressman. This is what the VA informed me to do, and I did it yesterday. Ultimately the VA is only implementing the GI Bill that congress developed. We need to be writing congress if we want a change!

[Jaime]

It is a sad attempt. Being denied access to education is nonjustice.

[Sandra]

I looked at going to the Art Institute in San Diego. They offer regionally accredited Assosiate and Bachelor degrees. They are not vocational.

[DSL Gordon, USA, USAR]

This is why it is very important to voice your concerns. Call the VA (1-888-442-4551), the SAA (state approving agencies), the ELR (education liaison rep), ESOs (education service officers), and everyone else that tells you how to use the benefit that you earned and paid for. As a certifying official of a school and a veteran, I had to fight to get programs approved that veterans wanted to take. As long as the entire information on a program and school is given, the GI Bill should pay! You have made the decision to serve and defend this great country of ours, and now it is their turn to honor you! If you are not sure of what college you will attend, (in my opinion) it is best to pay the $1200 and take the GI Bill payments. Basic chapter 30 over 4 months pays 4x$1321/full-time attendance. That's a lot more than $0 towards programs no-longer covered by chapter 33, and after one payment of full GI Bill your investment base is regained! Be sure to do the math for your program....the book stipend and living expense is not included in this, but you must know what type (certificate, exam, degree, classroom, distance education, correspondence) of training you WILL do and make the correct decision. All the best.

[sgt1371]

What a bunch of crap

[Winston]

Ernesto

You should double check whether or not Art Institute of California is considered a vocational school. If it is, then it is not covered by the new GI Bill.

[Eric]

California is over the deficit and it owes money big time. The "symantics" is about diverting money to state-run schools only. We,the vets, are practically being herded to public institutions to re-circulate the money. Thats just my hunch with what symantics mean.

[Ernesto Perez]

i am currently .. and just started attending The Art institute of California san diego. would i be affected by this ? its IN CA but there is others like it in other cities around the country. hmm.. i wonder.

[VICTOR ANTONIO OSUNA COTA]

Im not Citicen , not residente. Only Work in service extern in Federal Gov`t , Depatament of State in Mexico .

[Terry Howell]

Great Point Alex!

[Alex]

California doesn't charge "tuition" for in-state residence but they do charge in the form of huge "registration fees." It is a shame that this semantic will burn the many veterans that wanted to attend a private university in California. The registration fees are considered by most Californians as the equal to another state's tuition fees, they just don't call it that. For out of state students they charge an additional out of state tuition. Here's another example of the VA following the letter of the law, but missing the point. A private school will charge less fees but much higher tuition while CA public schools put the majority of their cost of attendance in the "registration fees."