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Bill would give stipend to distance learners

People using the Post-9/11 GI Bill for distance learning would be eligible to receive a living stipend under legislation introduced Tuesday by the House Veterans’ Affairs Committee chairman.

The bill sponsored by Rep. Bob Filner, D-Calif., addresses one of the biggest complaints about the new veterans education benefits plan that takes effect Aug. 1.

In addition to covering tuition and fees and providing a $1,000 annual allowance for books and supplies, the new GI Bill provides a monthly living stipend equal to the military basic allowance for housing for an E-5 with dependents for the ZIP code where the school is located.

The law includes two big limits on who can receive the housing allowance. First, it is paid only to people who are attending school as at least half-time students. Second, it is not paid to anyone taking distance learning classes unless they are taking at least one class on campus.

Filner’s bill, HR 950, keeps the first requirement that living stipends go only to those who are at least half-time students, but waives the requirement to take at least one class on campus. With that change, the housing allowance paid to distance learning students would be based on the ZIP code for where the school is located.

The bill makes no change in coverage of tuition and fees for distance learning under the Post-9/11 GI Bill.

Paying a living stipend based on the location of a distance learning school is something the Veterans Affairs Department opposed last year when officials discussed details with Congress.

VA officials were concerned that schools would set up shop in the most expensive locations of the U.S. solely to entice veterans to sign up for classes with the promise of big living stipends. VA officials similarly opposed paying a housing allowance based on the student’s location, arguing they didn’t want to encourage people to try to boost their income by moving to the most expensive area of the U.S. in order to get a bigger monthly check.

Since Congress passed the bill and VA has publicized proposed rules for paying benefits, complaints have arisen from both schools and potential GI Bill users about the unfairness of paying living stipends to some veterans but not to others.

Filner’s committee has scheduled a Feb. 26 hearing about the Post-9/11 GI Bill to look at VA’s preparations to make payments as well as changes that Congress could make in the bill before the new program launches on Aug. 1.

Distance learning is expected to be part of the discussion, aides said.