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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Pending 21st Century GI Bill: New Benefits for a New Era

Student Loan Girl — Thu, 26 Jun 2008 22:39:00 GMT

Many educators are excited about the potential impact of the proposed GI Bill, legislation that has gotten the nod by President Bush in its current form, according to an article in Inside Higher Ed (“Gauging the New GI Bill,” June 20, 2008).

“I think that expanding the GI bill, making it more generous, can be one component of really expanding access to higher education for people who come from disadvantaged backgrounds,” said Suzanne Mettler, Cornell University professor.

Current GI Bill benefits, worth only $1,101 monthly, have not kept pace with the escalating cost of a college education. Many experts believe that the current level of veterans’ benefits — used primarily by those from low socioeconomic backgrounds — are not enough to help veterans attain a decent college education.

But in the next couple of weeks, the Senate will vote on a revised version of the GI Bill that would:

Increase education benefits to cover up to the cost of in- state tuition at the most expensive public college in a veteran’s state
Offer a monthly housing allowance
Provide $1,000 a year for books
Open up the option of allowing transferable educational benefits for a veteran’s spouse and/or children

Benefits Unlikely to Affect Vets’ Choice of School

Educators at some two-year schools, where about 40 percent of GI Bill recipients pursue their degrees — are concerned that their enrollment numbers will dwindle significantly once these soldier- students are able to attend more expensive institutions.

However Keith Wilson, director of the Department of Veterans Affairs, says that may not necessarily be the case. He says the new bill isn’t expected to radically alter how and where veterans will attend college.

“In my experience, I’m not sure that’s necessarily true. I think convenience is still going to be paramount,” Wilson concluded.

Regardless of how the results of the bill shakes out, James Wright, president of Dartmouth College, says veterans should be able to choose the college that is the best fit for them and believes the new Bill will allow them to do so.

“Those who are coming out of the military should be able to think about going to the best schools in the country,” Wright said. “They should be thinking about going to the colleges that most meet their needs.”

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Student Loan Blog : vets

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

Pending 21st Century GI Bill: New Benefits for a New Era