At NASFAA's 2005 Conference in New York City, guest speakers
from the Department of Education and the Department of Veterans Affairs (VA) announced
general payment rules for Chapter 1607 Reserve Educational Assistance Program
(REAP) benefits and the treatment of these benefits when administering Title IV
aid.
Chapter 1607 REAP is a new veterans benefit program designed
to provide educational assistance to members of the U.S. Armed Forces Reserve
components called or ordered to active duty in response to a war or national
emergency as declared by the President and supported by federal funds on or
after September 11, 2001. National Guard members are eligible if called or ordered
to active duty in response to a national emergency by the President or
Secretary of Defense and supported by federal funds. Members of the Reserve or
National Guard must serve at least 90 consecutive days or more to be eligible
for payment.
According to the VA's Bill Susling, payment of REAP benefits will also be based on length of time spent on
active duty. Basic full-time monthly rates will be $401, $602, and $803. While
the VA, Department of Defense, and Coast Guard continue to work on the
procedures and payment system necessary to fully implement the program, the
goal is to begin initial payments of Chapter 1607 benefits by October 1, 2005.
In keeping with Title IV guidelines, Harold McCullough from ED mentioned that beginning with the 2005-06 award year, schools must account for Chapter 1607 REAP benefits as estimated financial assistance. However, since many initial payments will include retroactive lump sum payments for past award years dating back to September 11, 2001, schools will not be required to include any retroactive payment amounts as estimated financial assistance for the 2005-06 award year. Furthermore, retroactive payments for 2001-02, 2002-03, 2003-04, and 2004-05 should not be considered by schools as overawards or overpayments for
those past award years.
The handout for this session includes contact information for additional guidance.
By David Futrell
NASFAA Assistant Director of Training and Technical Assistance and
Eunice W. Powell
NASFAA Associate Director of Training and
Technical Assistance
Posted August 16, 2005 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2005. Redistribution to non-NASFAA institutions is prohibited
Please submit Web Site questions or comments to web@nasfaa.org
