Section 702 (Choice Act) and Section 301

Section 702 of the Veterans Access, Choice and Accountability Act of 2014 (“Choice Act”)

                    Section 301, Public Law 115-251

                    U.S.C. 3679(c)

Section 301 of Public Law 115-251 further amended 38 U.S.C. 3679(c) to require that individuals using educational assistance under chapter 31, Vocational Rehabilitation and Employment (VR&E), also be charged the resident rate. 

Effective for courses, semesters, or terms beginning after March 1, 2019, a public institution of higher learning must charge the resident rate to Chapter 31 participants, as well as the other categories of individuals described above.  When an institution charges these individuals more than the rate for resident students, VA is required to disapprove programs of education sponsored by VA.

Section 702 of the Veterans Access, Choice and Accountability Act of 2014 (“Choice Act”), requires VA to disapprove programs of education for payment of benefits under the Post-9/11 GI Bill and Montgomery GI Bill-Active Duty at public institutions of higher learning if the schools charge qualifying Veterans and dependents tuition and fees in excess of the rate for resident students for terms beginning after July 1, 2015.

These new requirements will ensure that our Nation’s recently discharged Veterans, and their eligible family members, will not have to bear the cost of out-of-state charges while using their well-deserved education benefits.

To remain approved for VA’s GI Bill programs, schools must charge in-state tuition and fee amounts to “covered individuals.” A “covered individual” is defined in the Choice Act as:

•  A Veteran who lives in the state in which the institution of higher learning is located (regardless of his/her formal state of residence) and enrolls in the school within three years of discharge from a period of active duty service of 90 days or more.

• A spouse or child using transferred benefits who lives in the state in which the institution of higher learning is located (regardless of his/her formal state of residence) and enrolls in the school within 3 years of the transferor’s discharge from a period of active duty service of 90 days or more.

• A spouse or child using benefits under the Marine Gunnery Sergeant John David Fry Scholarship who lives in the state in which the institution of higher learning is located (regardless of his/her formal state of residence) and enrolls in the school within three years of the service member’s death in the line of duty following a period of active duty service of 90 days or more.

The law requires VA to disapprove programs of education for everyone training under the Post-9/11 GI Bill and the Montgomery GI Bill –Active Duty (MGIB-AD) if in-state tuition and fees are not offered to all “covered individuals.”

The State of Indiana Department of Veteran Affairs will ensure all public institutions of higher learning offering VA-approved programs charge in-state tuition and fees to “covered individuals” as described, to include same-sex spouses and children (biological, adopted, pre-adoptive, and stepchildren of same-sex spouses) after July 1, 2015.

Public institutions must offer in-state tuition and fees to all “covered individuals” for Veterans and family members to be eligible to receive GI Bill benefits for training beginning after July 1, 2015. VA will not issue payments for any students eligible for the Post-9/11 GI Bill or the MGIB-AD until the school becomes fully compliant. VA is in the process of developing waiver criteria for States that are actively pursuing changes to comply with these provisions. More information regarding the waiver criteria will be included in a regulation published in the Federal Register.

VA will not issue payments under the Post-9/11 GI Bill and MGIB-AD for all students in terms beginning after July 1, 2015, if the requirements of Section 702 are not met, unless a waiver is granted. If the in-state tuition and fee policies are brought into compliance with the requirements after July 1, 2015, and no waiver was previously granted, VA will begin making payments for terms, quarters, or semesters that begin on or after the date that the compliant policies take effect.

CURRENT UNIVERSITY POLICY:

In 2015, the University of Southern Indiana implemented the policy that all Chapter 33 and 30 students would receive in-state tuition.

USI is still listed as a Yellow Ribbon institution, but the conditions no longer apply because of this policy. Our Yellow Ribbon agreement with the Department of Veteran Affairs states that when a Chapter 33 student has an out-of-state tuition rate, the VA pays an in-state rate at the percentage the student is approved for. Any overage is divided by the VA and USI up to $2,000.00. Any overage beyond that is paid by the student.  This policy superseded the Yellow Ribbon and Section 702 guidelines.

ADDITION OF SECTON 301 - 2019:

Beginning Summer 2019, the University of Southern Indiana renews the current policy for Department of Veterans Affairs education benefits under Section 702 of the Choice Act (Chapters 33 and 30) and include in-state tuition to the students meeting the aforementioned criteria under Section 301 of Public Law 115-251 (Chapter 31 Vocational Rehabilitation).