Bill Overview
Title: To amend title 38, United States Code, to ensure that the Secretary of Veterans Affairs repays members of the Armed Forces for certain contributions made by such members towards Post-9/11 Educational Assistance, and for other purposes.
Description: This bill modifies Department of Veterans Affairs (VA) education and home loan programs. The bill modifies the process for repaying service members and veterans who paid to keep benefits under the Montgomery GI Bill, but later chose to utilize Post-9/11 GI Bill benefits. Specifically, the bill removes the requirement for the VA to issue the repayments with the last monthly housing stipend under the Post-9/11 GI Bill. This requirement has limited the repayments to individuals who are receiving stipends. Under the bill, the VA must make such a repayment before the exhaustion of the individual's entitlement to education assistance. Additionally, the bill extends from January 14, 2031, to January 28, 2031, higher rates for certain loan fees under the VA home loan program.
Sponsors: Rep. Banks, Jim [R-IN-3]
Target Audience
Population: Members of the Armed Forces and Veterans using Post-9/11 GI Bill or VA Home Loan Benefits
Estimated Size: 1400000
- The bill impacts members of the Armed Forces and veterans who have paid into the Montgomery GI Bill but are using Post-9/11 GI Bill benefits.
- Specifically, those who were previously limited by the condition that repayments from the Montgomery GI Bill contributions occur with the last monthly housing stipend under the Post-9/11 GI Bill would be impacted.
- The bill affects a subset of veterans using, or intending to use, their VA home loan benefits due to the extended higher loan fee rates.
Reasoning
- The policy primarily targets veterans and service members who are currently or have historically engaged in educational benefits under the GI Bill, specifically impacting those who paid into the Montgomery GI Bill and switched to the Post-9/11 GI Bill.
- This group is estimated in the range of 1.4 million individuals, considering those who have used or are eligible for VA loans could intersect with around 150,000-200,000 individuals experiencing a more direct upcoming impact based on repayment changes.
- The policy's financial impact immediate effects are limited due to its budget constraint, so large scale individual changes are not feasible, but small adjustments might allow more flexible financial planning for the few affected individuals.
- From the qualitative perspective, many veterans already plan financial and educational pursuits long-term, so impacts over 20 years are relevant, with the most immediate being resolved monetary confusion around educational reimbursements.
Simulated Interviews
Currently serving Navy member (San Diego, CA)
Age: 26 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I find the GI Bill helpful for my education, but the repayment timelines and processes were unclear.
- I plan to buy a house soon, but the news on extended loan fees added some concerns.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 6 | 5 |
Veteran, Works in IT (Austin, TX)
Age: 32 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 12/20
Statement of Opinion:
- It's good they clarified the repayment issue; I lost out because of the timing.
- Extra home loan fees are annoying but manageable with planning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Warehouse manager, retired Army (Omaha, NE)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 18/20
Statement of Opinion:
- This bill doesn't impact me too much since I didn't switch GI Bill benefits.
- Happy that others can benefit but VA improvements always seem incremental.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Nurse, Army Reserve (Chicago, IL)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 14/20
Statement of Opinion:
- It eases a bit of 'admin stress;' clarity in repayments helps plan better.
- Worried about higher loan fees this late, might need to delay purchase.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Consultant, retired Marine (New York, NY)
Age: 53 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- This is a step forward in helping those embroiled in inefficient processes.
- It assists a narrow slice of veterans but sets good precedents for clarity.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Student, pursuing advanced degree (Denver, CO)
Age: 29 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 8.0 years
Commonness: 9/20
Statement of Opinion:
- Simplifying and speeding up the repayment process makes life much easier.
- Higher interest rates in loans did add pressure to finalize decisions soon.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 7 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Real estate agent, veteran (Miami, FL)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 13/20
Statement of Opinion:
- VA loans are essential, although fee extension isn’t pleasant; not a direct effect on me this time.
- Glad they sorted the educational benefits repayments. It enhances predictability for planning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
School teacher, National Guard (Philadelphia, PA)
Age: 23 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- Fairly recent to the process, this change minimizes concerns about budgeting my education costs.
- No direct influence on housing plans yet, but still appreciating the clarity this change brings.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
HR specialist, Air Force veteran (Las Vegas, NV)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 7.0 years
Commonness: 11/20
Statement of Opinion:
- Realigning repayment schedules is a major win for how veterans manage their educational funds.
- Interested in seeing lower fees in home benefits though; they still assist the process.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Engineering manager, veteran (Seattle, WA)
Age: 47 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 6.0 years
Commonness: 14/20
Statement of Opinion:
- Administrative improvements are always welcome; this one concerning educational benefits aids many directly.
- I definitely see more work to do in home loans, might impact next buying decisions for some.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $5000000 (Low: $3000000, High: $7000000)
Year 2: $5000000 (Low: $3000000, High: $7000000)
Year 3: $5000000 (Low: $3000000, High: $7000000)
Year 5: $5000000 (Low: $3000000, High: $7000000)
Year 10: $5000000 (Low: $3000000, High: $7000000)
Year 100: $5000000 (Low: $3000000, High: $7000000)
Key Considerations
- The cost estimates are sensitive to the number of individuals eligible and claiming repayments under the revised rules.
- Uncertainty exists around how many veterans may take advantage of extended higher loan fees, influencing the savings estimate.
- The focus is on a specific subset of Armed Forces members and veterans, limiting the broad economic impact.