Colleges May Be Required to Refund Student Loans for Military Members Called Into Service

Student Loan Girl — Wed, 02 Jul 2008 00:20:00 GMT

At the same time the recently passed GI Bill was being pushed through Congress, legislators have been considering a veterans education “bill of rights” that would protect service members who are called to duty in the middle of their higher education studies, according to an article in The Chronicle of Higher Education (“Congress May Require Colleges to Repay Loans for Students Called to Military Service,” June 27, 2008).

Both the House and Senate are looking at legislation, which has become unpopular among colleges, that would require institutions to refund student loans and other out-of-pocket expenses to students who are called to active military duty mid-semester.

Under the proposed legislation, students would be able to sue colleges that fail to make the refunds and would require colleges to re-enroll veterans at the same academic status they held when they departed for military service.

Opponents say the requirements would be difficult to implement and that the potential changes would conflict with existing rules. They counter that Congress should require the loans to be discharged instead of having colleges repay them.

David Baime, vice president of the American Association of Community Colleges, claims that students should be responsible for the loans they take out, not the institutions they attend.

“It’s kind of outrageous to expect institutions to repay loans” that students take out, he said.

Supporter of the bill Patrick Campbell, legislative director for the Iraq and Afghanistan Veterans of America, says that the new requirements are only fair, pointing to the many horror stories of vets who have attempted to get refunds or re-enroll at their schools after returning from active duty.

Campbell said, “When veterans come home and their schools make them jump through hoops, some students will not go back.”

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Veterans See Education Benefits Double as New GI Bill Becomes Law

Student Loan Girl — Mon, 30 Jun 2008 21:00:00 GMT

The new GI Bill, signed by President Bush on June 30, more than doubles veterans’ education funds from the current $40,000 to $90,000, and is seen as a return to the same generous benefits extended to veterans of World War II, according to an Associated Press article (“Bush Signs $162 Billion War Bill,” June 30, 2008).

The new legislation will allow veterans who served in the wars in Iraq or Afghanistan for at least three years to attend the most expensive public institution in their state, all expenses paid. Soldiers will also receive a small monthly stipend for housing and may transfer their benefits to their spouse or children.

For those veterans who opt to attend more expensive private schools, the new GI Bill will match any aid that their institutions provide above the cost of the most expensive public college in their state.

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Colleges May Be Required to Refund Student Loans for Military Members Called Into Service

Veterans See Education Benefits Double as New GI Bill Becomes Law