Excluding Veteran Education Benefits

The Higher Education Technical Amendments changed the date (from July 2010 to July 2009) for financial aid offices to begin excluding veteran education benefits when determining eligibility for student loans and campus-based aid.

Even though veterans educational benefits are not being counted when determining eligibility for federal or state financial aid programs, you will still see your benefits on CampusConnection as financial aid awards and anticipated aid for the term.

Please note that the following educational assistance programs are still counted as a resource when determining financial aid eligibility:

• North Dakota National Guard Tuition Assistance
• North Dakota Century Code Tuition Waivers:
  • Dependents of resident veterans who were killed in action, died of service-related causes, were prisoners of war or declared missing in action
  • Survivors of firefighters, emergency medical services personnel or peace officers who died as a direct result of injuries received in the performance of official duties
• Active Duty and Reserves Tuition Assistance

Grant Eligibility

The Higher Education Opportunity Act (HEOA) provides maximum Federal Pell Grant eligibility for a student whose parent or guardian was a member of the Armed Forces and died as a result of performing military service in Iraq or Afghanistan after 9/11/2001, provided that the child was under 24 years old or was enrolled in college at the time of the parent or guardian's death.

These students will be considered to be eligible for the maximum Federal Pell Grant award for the period during which the student is otherwise eligible to receive a Federal Pell Grant. ED will work with the Departments of Defense and Veterans Affairs to identify affected students.

The Higher Education Technical Amendments provides a comparable grant of the same size as the maximum Pell award to survivors whose incomes do not make them eligible for Pell Grants. As a result, these children will be eligible for more than $20,000 in grants for college over four years.

Servicemembers Civil Relief Act 

The Servicemembers Civil Relief Act (50 U.S.C. 527) (the SCRA) limits the interest rate on a borrower's loans (including FFEL and Direct Loans) to six percent during periods in which the borrower is on active duty military service. Previously, FFEL and Direct Loan program loans were not subject to the interest rate limitation of the SCRA.

To receive the benefit of the SCRA's interest rate limitation, a borrower must contact the holder of the borrower's loans in writing to request the interest rate adjustment, and must provide the holder with a copy of the borrower's military orders.

Borrowers who meet the criteria may not receive a refund of interest paid above the six percent rate prior to August 14, 2008.  This provision does not apply to an endorser of a PLUS loan (Parent PLUS or GradPLUS) unless the endorser also meets the criteria.