Last week, the President signed into law the Higher Education Act Technical Corrections Bill (H.R.1777). Among the provisions included in the bill is an updated definition of the term "veterans' education benefits", all of which are to be excluded from estimated financial assistance (EFA) as of July 1, 2009 (beginning with the 2009-2010 award year and thereafter).

Montgomery GI Benefits (Ch. 30) were already excluded from EFA for subsidized Stafford loans (as are national and community service program benefits). Now, all VA education benefits as defined in Part F of the HEA are excluded from the definition of EFA for purposes of campus-based programs and all FFEL and DL loans.

Although the expansion of excluded VA education benefits was accomplished by the Higher Education Opportunity Act of 2008, the effective date had been set as July 1, 2010. The Technical Corrections move that date up to July 1, 2009. The new definition of VA education benefits - as well as the old definition - are listed below.

New Definition of Veteran’s Education Benefits

• Chapter 103 of title 10, United States Code (Senior Reserve Officers’ Training Corps)
• Chapter 106A of title 10, United States Code (Educational Assistance for Persons Enlisting for Active Duty)
• Chapter 1606 of title 10, United States Code (Selected Reserve Educational Assistance Program)
• Chapter 1607 of title 10, United States Code (Educational Assistance Program for Reserve Component Members Supporting Contingency Operations and Certain Other Operations)
• Chapter 30 of title 38, United States Code (All-Volunteer Force Educational Assistance Program, also known as the Montgomery GI Bill- active duty)
• Chapter 31 of title 38, United States Code (Training and Rehabilitation for Veterans with Service-Connected Disabilities)
• Chapter 32 of title 38, United States Code (Post-Vietnam Era Veterans’ Educational Assistance Program)
• Chapter 33 of title 38, United States Code (Post-9/11 Educational Assistance) - including benefits provided through the Yellow Ribbon program
• Chapter 35 of title 38, United States Code (Survivors’ and Dependents’ Educational Assistance Program)
• Section 903 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141 note) (Educational Assistance Pilot Program)
• Section 156(b) of the ‘Joint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes’ (42 U.S.C. 402 note) (Restored Entitlement Program for Survivors, also known as Quayle benefits)
• The provisions of chapter 3 of title 37, United States Code, related to subsistence allowances for members of the Reserve Officers Training Corps

Previous Definition of Veterans’ Education Benefits

• United States Code, title 10, chapter 2: Reserve Officer Training Corps scholarship
• United States Code, title 10, chapter 106: Selective Reserve
• United States Code, title 10, chapter 107: Selective Reserve Educational Assistance Program
• United States Code, title 37, chapter 2: Reserve Officer Training Corps Program
• United States Code, title 38, chapter 30: Montgomery GI Bill-active duty
• United States Code, title 38, chapter 31: Vocational Rehabilitation
• United States Code, title 38, chapter 32: Post-Vietnam Era Veterans’ Educational Assistance Program
• United States Code, title 38, chapter 35: Dependents Educational Assistance Program
• Public Law 97- 376, section 156: Restored Entitlement Program for Survivors (Quayle benefits)
• Public Law 96-342, section 903: Educational Assistance Pilot Program

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