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Restricted Aid
For the purposes of the 85/15 rule, if the terms for awarding institutional aid, either written OR in application, serve to exclude all VA beneficiaries from receiving that aid, then the aid is considered to be restricted. If students receiving GI Bill® benefits can access the aid, without having to relinquish their GI Bill benefits, then the aid is considered unrestricted and other students receiving that aid can be counted non-supported students.
Institutional Loans, Scholarships, and Payment Plans
Restricted aid examples
Scenario 1:
The school offers an institutionally funded loan that is awarded to any student. The loan is needs-based, and may be paid-in-full after graduation. Due to funding limitations, the school has opted to restrict eligibility of the loan to only non-VA beneficiaries.
All students receiving this institutionally funded loan must be counted as supported students.
Scenario 2:
Children of faculty members at ABC University receive a scholarship for full tuition reimbursement. If the child is eligible for aid from any other source (such as by being a GI Bill beneficiary), the student is only allowed to utilize one source of aid.
All students receiving the restricted aid must be counted as supported students.
Scenario 3:
The school obligates that a student decline all institutional aid (such as merit or athletic scholarships) in order to be certified for Yellow Ribbon benefits.
All students receiving institutional aid which a student receiving Yellow Ribbon may not receive without forfeiting their benefits must be counted as supported students.
Scenario 4:
The school offers an institutionally-funded payment plan that is open to all enrolled students. If all charges are not paid in full by the end of the enrollment period, the funds rollover into the next enrollment period. If a balance remains when the student either withdraws from the school or graduates from the program, the school holds transcripts and/or the degree until such time as the student is either paid in full or has converted the remaining amount to a loan through a third party lender.
All students where the full amount of tuition, fees, and other mandatory charges has not been paid to the school prior to the reporting date (i.e., no later than 30 days from the start of a term or 30 days after the end of quarter), must be counted as supported students.
Unrestricted aid examples
Scenario 1:
The school offers an institutionally funded loan that is awarded to any student. The loan is needs-based, may be paid off after graduation, and VA students who are not at the 100% tier for education benefits from VA are eligible to receive the loan.
All students receiving this unrestricted aid, who do not possess another criteria which requires the student to be counted as a supported student, may be counted as non-supported students.
Scenario 2:
The school awards a merit-based scholarship. VA beneficiaries can receive the scholarship without having to forfeit their benefits (i.e., Yellow Ribbon).
All students receiving the unrestricted aid, who do not possess another criteria which requires the student to be counted as a supported student, must be counted as non-supported students.
Scenario 3:
Children of faculty members at ABC University receive a scholarship for full tuition reimbursement. This applies to all children of faculty members, including children using VA benefits.
All students receiving the unrestricted aid, who do not possess another criteria which requires the student to be counted as a supported student, must be counted as non-supported students.
Scenario 4:
The school offers an institutionally-funded payment plan. The availability and requirements of the payment plan are published in both the school's State Approving Agency-approved catalog and on the school's website. The payment plan is available to all enrolled students, and any outstanding balance of the payment plan must be paid in full by the last day of the semester. If a balance remains after the last day of the semester, the policy prevents the student from continuing the next semester beginning on or after the expiration of the payment plan.
All students using the institutionally-funded payment plan, who do not possess another criteria which requires the student to be counted as a supported student, must be counted as non-supported students.
Other types of aid
A student receiving Federal or State funded assistance alone would be considered non-supported. If the student is receiving multiple types of aid and any of it is supported, the student must be counted as a supported student.
State grants, such as those available under the Hazelwood Act, Illinois Veterans Grant, the California College Promise Grant, are considered 3rd Party Aid. Students receiving 3rd Party Aid and no other aid that would require they be counted as supported students, are considered non-supported so long as all other conditions are met.
Graduate Students
Graduate students in receipt of institutional aid are considered non-supported for purposes of 85/15 calculations. Graduate students who meet other supported student criteria (i.e., are using GI Bill benefits) must still be counted as supported students.
