New Benefits of the Post-9/11 GI Bill

The Post-9/11 GI Bill expands the number of people who qualify for education support from the VA.  For the first time in history, service members enrolled in the program will be able to transfer unused educational benefits to their spouses or children starting Aug. 1, 2009.

Children of service members:

• May start to use the benefit only after the individual making the transfer has completed at least 10 years of service in the Armed Forces.
• May use the benefit while the eligible individual remains in the Armed Forces or after separation from active duty.
• May not use the benefit until he/she has attained a secondary school diploma (or equivalency certificate), or reached 18 years of age.
• Are entitled to the monthly stipend and books and supplies stipend even though the eligible individual is on active duty.
• Are not subject to the 15-year delimiting date, but may not use the benefit after reaching 26 years of age.

Approved training under the Post-9/11 GI Bill includes graduate and undergraduate degrees, and vocational/technical training. All training programs must be offered by an institution of higher learning (IHL) and approved for GI Bill benefits. Additionally, tutorial assistance, and licensing and certification test reimbursement are approved under the Post- 9/11 GI Bill.

For more information, visit the US Department of Veterans Affairs’ web site.

Stafford Loan Rates are Falling

Good news for students who anticipate using federal Stafford loans this fall as part of their financial aid package. On July 1, the interest rate for new subsidized Stafford loans for undergraduate students will drop to 5.6% from the current rate of 6%. This rate, which applies to loans issued between July 1 and June 30, 2010, will remain in effect for the life of the loan. Subsidized Stafford loans are available for borrowers who demonstrate financial need.

Rates for new unsubsidized Stafford loans, which are available for all students, will remain at 6.8%. However, all Stafford borrowers will get a break on upfront borrower fees beginning on July 1, when the maximum fee that lenders will be permitted to charge on Stafford loans will drop to 1.5% from 2%.

Stafford loans are fixed-rate federal student loans for undergraduate and graduate students attending college at least half-time. For more information on Stafford loans or repayment options, visit studentaid.ed.gov.

Unemployed? The Trade Act Could Help You Go Back to School

Unemployment is unfortunately rising across the nation, and many affected wage earners are considering going back to college to increase their skills or otherwise redirect their careers. The federal Trade Act is available to help, though it is restricted in its use. By law, the Trade Act extends benefits to students whose qualified educational program falls below a $10,000 cap. For details, please visit: http://www.doleta.gov/tradeact/.

Displaced workers in the Commonwealth can also seek assistance from Virginia Workforce Centers. A list of centers can be found at: http://www.vwn.virginia.gov/onestop/onestop.pdf.

Please be aware that most need-based financial aid is based upon the family’s prior year financial status. If the family is now suffering a loss of income due to job layoffs, the college has the authority to review the student’s current financial status and make adjustments to the FAFSA. This process is called Professional Judgment and may result in increased eligibility for need-based aid, including the federal Pell grant. Students should contact the Financial Aid office at their institution for further information.