Veterans Face Financial Aid Delays


September 4, 2009
by Scholarships.com Staff
The new Post-9/11 GI Bill went into effect on August 1, bringing expanded educational benefits for students who have served in the military since 2001. These benefits are supposed to be available to students for the fall semester, but a mounting backlog of applications has the Department of Veterans Affairs saying recipients should expect processing delays of up to 8 weeks.

The new Post-9/11 GI Bill went into effect on August 1, bringing expanded educational benefits for students who have served in the military since 2001. These benefits are supposed to be available to students for the fall semester, but a mounting backlog of applications has the Department of Veterans Affairs saying recipients should expect processing delays of up to 8 weeks.

This means that many veterans attending college may not receive their first payments from the VA until potentially October or even November, despite classes starting in August and September. So not only will their tuition and fees go unpaid, but they also will have to find other sources of funding for housing, books, and living expenses, which many veterans expected to rely on VA stipends to pay. While most colleges are working with their veteran students to arrange stopgap financial aid, the delayed payments still represent a huge problem for students going back to school after military service.

The application process for VA benefits under the GI Bill is somewhat complex and involves multiple steps between a student's initial decision to enroll in college and his or her ultimate receipt of a check from the VA. Students, schools, and the VA all need to complete paperwork to set up benefits, and May 7 was the earliest students could begin applying. In addition, current VA employees and new hires needed to be trained to process applications under the new program, so processing is taking longer than normal.

Add in the popularity of the expanded GI Bill benefits, the recession bringing students back to college in droves (with fewer financial resources available to them), and colleges across the country dealing with massive budget crises and increased demand for emergency aid, and you get the potential for disaster. More students are applying for benefits, the VA is less able to process these applications in a timely manner, and schools have more students in difficult situations to assist. All parties have fewer resources at their disposal to deal with the situation, making it still more challenging.

Still, vets who have found their benefits delayed should talk to the financial aid and veteran's affairs contacts at their school if they need additional financial aid to cover their expenses in the short term. While money is scarce, it is still available in most cases.

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