Veterans Benefit Backlog Creates Financial Problems for Students

in Ayesha Aleem, Fall 2009 Newswire, Massachusetts
November 5th, 2009

GIBILL
New Bedford Standard-Times
Ayesha Aleem
Boston University Washington News Service
Nov. 5, 2009

WASHINGTON – After five years of Army service, including tours in Iraq, Richard Messier thought he would not have to worry about paying for college under the Post 9/11 GI Bill. But the heavy backlog of claims with the Department of Veterans Affairs has created financial problems for this 23-year-old unemployed, full-time undergrad at Bristol Community College.

The new law, which came into effect on Aug. 1 of this year, provides financial support toward education to individuals with at least 90 days of active service on or after Sept. 11, 2001. The benefits include stipends for tuition, housing, books and supplies to undergraduate and graduate students enrolled in an institution of higher learning.

Messier said he filed an application in September but has not received any payment from Veterans Affairs.

“I don’t receive a dime from unemployment. I don’t receive a dime from VA,” he said. “I’ve had to be frugal with whatever money I have. If it weren’t for the greatness of my family, I’d be on the streets right now.”

In September Eric Shinseki, secretary of Veterans Affairs, announced that “emergency checks” of $3,000 would be issued to address the problem created by the backlog. These payments became available to eligible students through VA regional offices on Oct. 2.

Messier said he had received the emergency payment from the VA office in Providence, R.I. “But that’s running out, too,” he said. The college has allowed him to buy books on credit, for which he owes approximately $250 when his regular payment comes through, Messier said.

Of 110 veterans enrolled at Bristol Community College, 28 students are eligible for VA benefits, said enrollment counselor Beth Vezina. She said six students had problems because of the backlog but there could be more.

The college sent out target e-mails informing students of the backlog and placed holds on classes so that students who have not paid their bills don’t get dropped from classes, Vezina said. An emergency bookstore fund has also been set up, she said, that allows students to buy books and to pay for them when they receive their VA payment.

The University of Massachusetts Dartmouth has 35 students eligible for VA benefits, said Kristina Leonardo, staff associate for veterans affairs. “We are not penalizing the students for late payments,” said Bruce Palmer, director of financial aid.

Brendon Puntin, 26, a graduate student in the computer engineering program at UMass Dartmouth, is among the students affected by the backlog. Puntin, who served four years on active duty in the Marine Corps and one year in the Reserves, has not received any benefits since filing his application in July, he said.

At the time of this interview, Puntin said he was on his way to Providence to pick up the emergency check. “I’ve had to change a closing date on a house I was planning to purchase,” he said about the delay in receiving payment.

And although Puntin’s cash flow was down, his cost of living was manageable, he said. The university has been crediting the amount for his tuition although it has not received payment from the VA, he said.

20-year-old Benny Smith of North Carolina, majoring in finance at UMass Dartmouth, receives Veterans Affairs benefits as a dependent whose father was in the service for 25 years, he said. The backlog has made it difficult to pay bills, rent and a car payment, Smith said.

“I’m having to work more hours during the week,” said Smith, who works part-time as a pharmacy technician at CVS. “It’s been stressful to pick up extra shifts.”

As a dependent, Smith is not eligible for the emergency checks, he said. “I’m down to the basic necessities. I think they [the VA] are a little unprepared for the amount of requests for aid they receive. But it’s a great program that will benefit many people.”

The average time to process an application is 30 days, said Phil Budahn, spokesman for the Department of Veterans Affairs. “This is very new legislation. It’s very complex,” he said about the new bill. “The previous bill was rather straightforward. The payment went directly to the veteran. With the new bill, there are multiple computations. Payments go to schools, stipends go to veterans for housing” and other expenses.

“That being said, this is unacceptable,” he said about the delay. “This is not how we want to provide educational benefits.” Since Aug 1, approximately $165 million in benefits have been released to 56,000 veterans, Budahn said.

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