5-1-09: Stanford: New GI Bill raises issues with aid

Quirks in California regulations are posing obstacles in the effort to assist returning veterans with the costs of attending college, and Stanford is attempting to navigate the issues and decide an aid policy in time for crucial deadlines.

“Right now that makes it looks like vets attending private institutions [in California] won’t be receiving any government base aid from the VA,” said Director of Financial Aid Karen Cooper.

Veterans who have served on active duty since September 11, 2001 are the subject of the Post 9-11 Veterans Educational Assistance Act of 2008–more commonly known as the Post 9-11 GI Bill or “New GI Bill.”

The New GI Bill provides payment commensurate with the highest public in–state undergraduate tuition rate on a term–by–term basis, and provides additional allowances for books, fees, and living expenses.

The Yellow Ribbon GI Education Enhancement Program, a provision of the new bill, provides financial support for veterans who wish to apply their higher education funds to a private institution. The program aims to give additional aid when the cost of enrollment in the private university exceeds that of the most expensive public tuition rate in a given state.

Private universities may opt to enter into an agreement with the VA to cover up to 50 percent of the excess cost of tuition for their veteran applicants. The VA has agreed to match whatever the universities offer.

Supplemental aid, however, is contingent upon the base tuition rate established by the state’s most expensive public school. In California, the billing system employed by public colleges and universities presents a unique legal quagmire—the costs of education for state residents are not classified as “tuition,” but rather as “registration fees.”

Because all of California’s public colleges and universities have tuition rates listed as $0 for 2008-2009, under a strict legal interpretation, veterans in the state would be required to pay out-of-pocket for the full cost of tuition not covered by the Yellow Ribbon Program. Cooper noted that, up until a week ago, California’s maximum charge per credit hour was listed as $254.

Cooper referred to the discrepancy as a “semantic difference.” However, she acknowledged that a minor technicality had the potential to present major obstacles for prospective veteran applicants seeking aid from the Yellow Ribbon program in California.

The confusion created by these last-minute revisions have been compounded by the fact that state tuition rates for 2009-2010 will not be available until August 1, well after the June 15 deadline for colleges to offer their consent for participation.

Asked if Stanford had yet made the decision to participate, Cooper answered in the affirmative, but could not confirm details of funding and distribution. “We need to estimate how much it’s [going to] cost us before we can say at what level we can participate and that’s proving to be very difficult because things keep shifting…the fact that there won’t be a base benefit to start with just means that we’ll have to grant more if we want [veterans] to have a larger award,” said Cooper.

In spite of the tangled bureaucratic complications that obstruct the program’s implementation, Cooper remained confident that Stanford would participate in the Yellow Ribbon Program at some level.

“Would this have been easier to do a year or two ago when the endowment was making money hand–over–fist? Sure. That doesn’t mean we won’t do it well and aren’t committed to [veterans financial aid],” she said.

Stanford’s admissions process is also problematic for the Yellow Ribbon Program’s requirement to administer aid on a first-come, first-serve basis, said Cooper.

“Look at the way our students are admitted—freshmen first, then transfer students. [The latter group] is where we are more likely to see vets who qualify, but then freshmen might use [the available funds] up first.”

There is the additional challenge of coordinating between schools.

“It’s a little more complex at the graduate level where each school manages its own aid,” said Cooper.

While the professional schools of Business, Law, and Medicine have centralized financial aid offices with a need-based approach to aid, in all other schools at the graduate level, where aid is more commonly found in the form of fellowships and teaching assistantships, funds are more limited.

Though the university’s final policy has not been decided on yet, Cooper was confident that it was forthcoming.

“We’ve been having ongoing discussion for the last six weeks or so, and anticipate making our final decision definitely before May 15.”

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