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					                                          Board of Governors
                                    California Community Colleges
                                           November 3, 2008


   FEDERAL GOVERNMENT REPORT                                             3.5
   INFORMATION AND REPORTS
   Presentation:    Anne McKinney, Assistant Vice Chancellor
                    Federal Government Relations




Issue

This item will provide the Board with an update on federal activities.



Staff:   Anne McKinney, Assistance Vice Chancellor
         Federal Government Relations
                                       October Federal Report
                                                2008
Congress

2009 Budget Bill

The last week of September saw record spending in Congress as leadership in both chambers, in a move
to avoid an election-year clash with the President that could have swung in his favor, negotiated a
continuing resolution (CR), H.R. 2638, the "Consolidated Security, Disaster Assistance, and Continuing
Appropriations Act," for FY2009, to fund the federal government through March 6. Such a measure was
also needed because Congress, preoccupied by the presidential campaign and economic crisis, had not
approved the 12 appropriations bills pending on Capitol Hill. On September 26 by a 370-58 vote, the
U.S. House of Representatives overwhelmingly approved the resolution, and later that week, the Senate
forwarded the $634 billion spending measure to President Bush on a 78-12 vote, anticipating that the
frontrunner in the presidential campaign would next year approve increases for scores of programs
receiving flat funding or downsized by Bush in past budgets. The resolution funds most of the
government at fiscal 2008 levels, and passage was essential to adjourning Congress for the fall campaign
and potentially avoiding a lame-duck session after the November 4 election. The President signed the
measure just hours before the new fiscal year began on October 1.

Pell Grants: Congress included an additional $2.5 billion for the Pell Grant program to cover an
expected shortfall. The measure also includes specific language forbidding the Federal Department of
Education from addressing an expected increase in aid applications (and the accompanying Pell funding)
by decreasing any Pell award during the course of the continuing resolution.

The Pell Grant program is facing an almost $6 billion shortfall by the end of FY 2009. The shortfall
occurred because of increases in the maximum award, as well as increased eligibility in this program for
low-income students. The Department advises the $6 billion will be needed to erase a shortfall in
FY2007-08 and FY2008-09 and meet the FY2010 demand.

The maximum Pell award, currently at $4,371, is expected to hold. In fact, both presidential candidates
have commented favorably on increasing the maximum grant, so even in a worst case scenario, the
maximum would most likely be held flat as the Pell Grant program enjoys wide support, and Congress
fully recognizes that families with college-going children have already been pounded by diminishing
equity and/or credit crunch. Under recent congressional budget rules, the appropriators are bound to deal
with shortfalls in Pell upon their return, as shortfall amounts count against their budget allocations in
succeeding years.

                                                        Page 1
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
Hope, Lifetime Learning tax credits and tuition deduction: The tuition deduction has expired, and it,
along with Hope and the Lifetime Learning tax credits, is expected to be consolidated into a single,
partially refundable credit, in keeping with prior House Labor and Education Committee discussions
with student-aid experts this past May. The Government Accountability Office testified that one in five
tax filers who are eligible for the benefits fail to claim them, and more than one-quarter fail to file for the
maximum amount.

TRIO; Gear Up; LEAP (Leveraging Education Assistance Programs); Perkins Loans and
Supplemental Educational Opportunity Grants (SEOG) are restored with flat funding.

Title VII-B of the Higher Education Act is provided $15 million for colleges and universities located
within areas impacted by presidential-declared natural disasters.

Student Financial Aid: Student-aid programs will continue to operate at current spending levels
through March in the resolution, and all the major players’ radar continues to be focused on student
financial aid.

On October 2, U.S. Rep. George Miller, (D-CA), Chair of the Committee on Education and Labor
announced that Dr. Helen Benjamin of Vallejo, the Chancellor of the Contra Costa Community College
District, was appointed to the Advisory Committee on Student Financial Assistance, which provides
guidance to Congress on federal student aid policies. Dr. Benjamin will serve as the committee’s sole
representative from a community college.

The prior chair, Howard ―Buck‖ McKeon, (R-CA), and now Ranking Member, recently introduced H.R.
7072 to improve the Ensuring Continued Access to Student Loans Act (ECASLA), requiring that any
loans sold to the Department stay with the servicer of record after the sale. Currently FFEL loans sold to
the Department are then transferred to the Direct Loan servicer. The bill also allows loans that have been
rehabilitated through guarantor rehabilitation programs to be sold to the Department under the ECASLA
liquidity programs (these loans are not currently eligible).

Also, President Bush signed H.R. 6889, in the first week of October, extending ECASLA and in which
Congress provided the Department of Education, in coordination with the Treasury Department and the
Office of Management and Budget, renewed temporary powers to use federal funds to ensure students
and families continue to have access to student loans. This extension allows the Federal Secretary of
Education to purchase loans from Federal Family Education Loan Program (FFEL) lenders until
September 30, 2010 and allows guarantors to provide LLR loans on a school-wide basis until that date.
It is not yet clear if the recent economic rescue plan measure gives Secretary of the Treasury Paulson the
authority to buy ―distressed‖ assets other than mortgage securities – in other words, whether or not


                                                         Page 2
                                                 _____________________
                                                  STATE OF CALIFORNIA
                             CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                    1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
Secretary Paulson will exercise this authority to purchase student loan assets or will rely fully on
ECASLA.

The federal financing program has supported a little over 40 percent of the FFELP loans that have been
disbursed this year. Over 800 lenders have enrolled in the loan purchase program. Almost $51 billion of
federally guaranteed loans have been originated for the current school year, up from approximately $45
billion for the same period last year.

On a related note, Secretary of Education Margaret Spellings announced on October 6 that Lawrence A.
Warder, acting chief operating officer of Federal Student Aid (FSA) and chief financial office, will leave
by the end of the month and be replaced by his deputy, James Manning, who will move into the position
of acting chief operating officer. Thomas Skelly, director of budget service, will be designated the
authority for the position of CFO, which he previously held from 1999-2001. Danny Harris, an
employee at the U.S. Department of Education for over 20 years, will move from his current position as
deputy chief financial officer—a position he has held since 2004—to chief information officer. The
Department’s Federal Student Aid (FSA) conferences are in Dallas on October 28-31 and Las Vegas on
December 2-5. Go to: http://fsaconferences.ed.gov/.

Meanwhile, the Rethinking Student Aid study group coordinated by the College Board has produced a
report, two years in the making -- ―Fulfilling the Commitment: Recommendations for Reforming
Federal Student Aid‖ – and focusing on simplification of the financial-aid system and direction of
funding toward the neediest students. Most prominently, it recommends: elimination of the Free
Application for Federal Student Aid (FAFSA) and instead basing eligibility on income-tax returns;
reliance on adjusted gross income and family size for the amount of Pell grants; streamlining numerous
federal programs to one grant to colleges based on their retention rates for Pell-eligible students and
expanding LEAP; elimination of federal subsidies covering interest on the loans of some borrowers
while in college and instead, introducing subsidies during the repayment period on a graduated basis;
utilization of federal funds to create college savings accounts for lower-income families and creation of
one tax credit covering both tuition and a fixed amount of college-related living expenses, while
eliminating the tax deduction (see prior section under HOPE).

Higher Education Act/H.R. 4137

On August 14, the President signed the Higher Education Opportunity Act (Public Law 110-315)
reauthorizing the Higher Education Act of 1965, as amended. The Act — a 1,158 page tome, which
survived three separate Congresses through a total of 13 short-term extensions — was passed a decade
after its last renewal, though it is supposed to be extended every five years. Most succinctly, the
measure authorizing 95 new programs is generally viewed as intrusive and unnecessarily burdening on
local agencies by an untold amount of new regulations. It is a certainty that a trailer bill for ―technical‖


                                                        Page 3
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
cleanup will be contemplated in 2009 as the elements of the legislation roll out to the field over time
through a number of avenues, providing a variety of venues for response to this landmark legislation.

Next Steps: Some parts of the law will be implemented through new or revised regulations. Many
areas will be regulated either through the usual Federal Department of Education notice and comment
process — or where regulations will merely reflect the changes to the HEA and not expand upon those
changes — as technical changes.

Provisions of the HEAO are effective upon enactment, unless otherwise noted in the law. The
Department will be publishing a Dear Colleague Letter with a summary of each provision of the Act, but
notes that affected parties are responsible for taking the steps necessary to comply by the effective dates
established in the measure.

Negotiated rulemaking: The negotiated rulemaking process will be used for some regulations. This
process is required for the development of all regulations implementing statutory changes to Title IV of
the HEA. In addition, section 201 requires a negotiated rulemaking process for any regulations the
Secretary develops under amended section 207(b)(2) of the HEA. That section concerns a teacher
preparation program that has had its eligibility terminated by the State from accepting or enrolling any
student who receives Title IV aid. The Department conducted national meetings through October 15 in
which interested parties made comments and suggested changes related to the HEOA that should be
considered for action by the negotiating committees and in trailer legislation, if necessary. Written
comments were to have been submitted by October 8. The Department expects to establish most of the
negotiated rulemaking committees by the end of 2008, with negotiations beginning in February 2009.
For subject areas where implementation must occur more quickly, the schedule will be expedited. For
more information on negotiated rulemaking, see The Negotiated Rulemaking Process for Title IV
Regulations, Frequently Asked Questions at: ed.gov.

California Negotiated Rulemaking Hearing: On October 2 at Pepperdine University in Malibu,
members from the Department held a hearing on Title IV, Part B of the HEOA. Testimony was provided
by the California Community Colleges Student Financial Aid Adminstrators Association(CCCSFAAA),
along with other segments and interest groups from California. Issues specific to the CCCSFAAA
included:

 o loan eligibility clarification for students whose parents do not complete a FASFA form;

 o continuation of prior negotiated agreement that eligibility related to drug offenses be left up to
   direct communication between the student and the Department;

 o support of the reinstatement of the Department’s authority to develop a set of courses that can
   serve as an alternative to ―rigorous high school curriculum‖ for the ACG/SMART Grant;

                                                        Page 4
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
 o request for a Dear Colleague letter from the Department clarifying that both ―entrance and exit‖
   counseling by lenders and guarantors is permitted;

 o concern over the 50% reduction of questions on FAFSA, who designs the remaining 50% and
   retention of FAFSA’s ability to screen students for basic Title IV eligibility;

 o concern over loopholes that a simplified form, EZ FAFSA, may create in more complex financial
   circumstances;

 o admonition for the Department to approach FAFSA revisions cautiously and with sufficient testing
   to avoid inadvertent insertion of unfairness into an already less than perfect system; and,

 o along with support from other groups present, a request for an ―upfront‖ exemption from Cohort
   Default Rate reporting in anticipation that the increase in the number of years over which the loan
   cohort default rate is calculated will prompt an increase in the average default rates. HEOA
   includes important changes to both sanction-level cohort default rates and the participation rate
   index appeal. Beginning in 2011, cohort default rates of 30 percent for three consecutive years
   may trigger sanctions, and the participation rate index will be increased from 0.0375 to 0.0625.
   This will allow institutions with slightly more than 20 percent of eligible students borrowing to
   appeal sanctions using the participation rate index. Thus, the law already recognizes that the
   default rate is NOT a measurement of institutional integrity in these cases, however, it requires
   submission of a detailed appeal AFTER the default rates are published, and the CCC effort is to
   help protect colleges from unwarranted negative attention caused by misinterpretations of the data
   among the media and other venues.

On September 16, Secretary Spellings announced that the Fiscal Year 2006 national student loan cohort
default rate was 5.2% -- up slightly from FY 2004 (5.1%) and FY 2005 (4.6%). As a historical
comparison, in FY 1989, nearly one in four borrowers defaulted on their federal loans, when default
rates set an all-time high (22.4%). The rate dropped to a record low of 4.5% in FY 2003. More
critically, all but one of the nation's colleges and universities had default rates low enough -- under 40%
for one year and 25% for three consecutive years -- to remain eligible for federal aid programs. Go to:
http://www.ed.gov/offices/OSFAP/defaultmanagement/cdr.html.

Snapshot: Ongoing California Community Colleges Concerns

Graduation rates: One of the provisions that the California Community Colleges (CCC) argued against
was the required increase in reporting of graduation rates from one single rate to 48 separate rates,
disaggregated by gender, racial/ethnic background, whether the student received a Pell Grant, a
subsidized loan but no Pell Grant, or no federal student aid, among others. At one point in the final

                                                        Page 5
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
hours of conference, it was thought community colleges had escaped the snare of this requirement;
however, the final version states this section will apply to community colleges, but not until 2011–2012.

Section 488 of this reauthorization further requires the Secretary of Education to convene, within 90
days of enactment, a group of interested parties to determine ways to help community colleges comply
with the new disaggregated graduation rate requirement and disseminate recommendations on these
reporting requirements, including suggested alternatives, no later than 18 months after the group is
convened. At that time, the Secretary may stipulate a different method for community colleges to report
graduation rates. This represents a significant opportunity for community colleges nationally to modify
the existing success rate measures currently in place under the Student Right-To-Know Act. The current
rates have long been seen as flawed and not representative of the multitude of outcomes and missions of
community colleges nationally. CCCCO Vice Chancellor Patrick Perry has recently been selected by the
Department of Education to sit on a Federal Advisory Committee that will meet and propose alternate
methodologies.

Limit on Pell Grants: HEOA caps the amount of time a student can receive a Pell Grant to 18 semesters,
prorated for attendance status. (For example, a student attending half-time would be eligible to receive a
Pell Grant for up to 36 semesters.) One potential problem with this cap is that basic skills, remedial or
developmental, and English language classes are not exempted from it, which could reduce eligibility for
underprepared students as such courses can add significantly to their completion time. This cap applies
to all students who receive their first Pell Grant after July 1, 2008 (Section 401(c)).

Foster Care Youth: Though HEOA corrects the independent student definition change enacted in the
College Cost Reduction and Access Act of 2007 (CCRAA) to clarify that the definition, as of July 1,
2010, covers youth who age out of foster care and youth who are adopted or move into the legal care of a
guardian from foster care after reaching age 13 and included a provision to allow students who are
orphans, in foster care, or wards of the court; or who were orphans, in foster care, or wards of the court
any time after the age of 13 to be considered independent students, it should have also included in the
independent student definition individuals who were orphans, in foster care, or wards of the court when
they were 13 years of age or older, but who are no longer orphans in foster care or wards of the court
when applying for college. (Section 473(c)).

Students with Intellectual Disabilities: There is question as to what would constitute ―a comprehensive
transition and postsecondary program for students with intellectual disabilities‖ (Section 484(s)).
Further, the vagueness of the language that authorizes the Secretary to waive any statutory provision and
make regulations applicable to the grant and work study programs to ensure students with intellectual
disabilities receive the financial assistance is a concern.




                                                        Page 6
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
Regulations: Miles to go before we sleep!

California Community Colleges Success with HEOA

Accreditation: After much lobbying at the DC Summit in February, the System along with the
University of California and the California State University and other national allies were successful in
barring the Secretary of Education from issuing regulations concerning the ten mandatory accrediting
standards included in the HEA, as well as any criteria that specifies, defines, or prescribes standards used
to assess an institution’s success with respect to achievement. A new 18 person advisory committee
(National Advisory Committee on Institutional Quality and Integrity) is established to provide input to
the Secretary on his or her recognition of accrediting agencies, and for other purposes relating to the
participation of colleges in the federal student aid programs. Rather than the Secretary, new language
stipulates that two-thirds of the members shall be appointed by Congress (one-third from each chamber,
half of those by each party).

Federal Application for Student Financial Aid: FASFA was simplified – the devil will be in the details!

Campus Safety: The CCC lobbied successfully to remove the provision in the House bill requiring
universities and colleges to issue warnings to their campus communities of emergencies within 30
minutes. Though well intended, numerous issues arose from this proposal. For instance, a number of
colleges have multiple sites spread out over a large geographical area, and if an emergency occurred at
one site, there was question as to whether other sites be notified as well? Further, should the ―presence‖
of an individual with a knife or a bomb threat at one location be of concern to students attending class
across town? The 30-minute provision was particularly irksome, as some colleges/universities have a
police force, while others have a security guard or just a skeleton crew todeal with emergency situations,
raising the issue of limited staff for some colleges.

Textbooks: California’s community college campuses vigorously negotiated language for colleges and
possibly have more work ahead. The bill now mandates that textbook publishers expand the information
they provide to faculty members about pricing and changes from past editions, and that colleges put
information about required books in their course schedules to help students shop for books more cost
effectively, among other provisions aimed at easing textbook prices and now allows colleges to insert ―to
be determined‖ where information is not available.

Pell Grants: Maximum Pell -- increased to $6,000 for academic year 2009-10. HEOA provides for
annual increases of $400 ending at $8,000 for academic year 2014-15. Students will only receive these
increases, however, if Congress appropriates funding for them. The current authorized Pell Grant
maximum is $5,800 but the actual maximum grant funded by Congress is just $4,731. Year-round --
Pell grants were extended year-round for students who complete more than one year’s academic work in
a single award year and grants. Specifically, students attending at least half-time and enrolled in a

                                                        Page 7
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
certificate, Associate, or Baccalaureate degree program will be able to receive two Pell Grants during a
single year to allow them to accelerate their studies. This is intended to help students attend summer
school in addition to fall and spring semesters. Currently a student may only receive one Pell Grant in
an academic year. Effective July 1, 2009 (Section 401(b)). Grants – Pell grants now available to part-
time and certificate students. Pell Grant Minimum -- the minimum is set to 10 percent of the
maximum Pell Grant level awarded for that year, rather than the current $400. At the current maximum
grant level of $4,713, for example, the new policy would result in a minimum grant of $471. In
addition, students will automatically receive the minimum Pell Grant if they would otherwise qualify for
a grant equal to at least half of the minimum grant. Effective July 1, 2009 (Section 401(b)).

Academic Competitiveness Grants: Summit attendees lobbied successfully to make grants for low-
income students available to part-time students and those seeking certificates as well as degrees, as well
as aiding in removing the Secretary from the decision as to whether high school programs are of
sufficient academic rigor to qualify students for the grants, leaving it instead up to state officials.

TRIO: HEOA increases the minimum grants amounts for each TRIO program, including Student
Support Services, to $200,000, and the authorization levels. In addition, ―individualized counseling for
personal, career, and academic matters provided by assigned counselors,‖ is added as a permissible
activity to Student Support Services (Section 403(a) and (d)). It requires grantees identify services
specifically for youth in foster care and add housing services for students who are (or were) homeless
and students who are in, or aging out of, foster care (Section 403(a)).

Child Care Access Means Parents in School (CCAMPIS): HEOA expands funding for CCAMPIS to
increase availability of on-campus child care for students who are parents. The bill increases grants from
$10,000 to $30,000 if appropriations for the program equal or exceed $20 million in the fiscal year. In
addition, the threshold for institutional eligibility can be lowered if the same appropriations criteria are
met; decreasing from $350,000 to $250,000 the total amount of Pell Grants awarded at the institution in
order to qualify for the program (Section 410).

Business Workforce Partnerships for Job Skill Training in High Growth Occupations or Industries: In
collaboration with the Center for Law and Social Policy, the Chancellor’s Office promoted these grant
program partnerships of colleges, employers, and, where applicable, labor representatives to expand or
create credit-bearing college programs responsive to business workforce needs, adapt college offerings
to workers’ schedules, expand worksite learning opportunities, and purchase equipment related to such
academic or job training programs. The grants are targeted toward programs serving nontraditional
students, such as working adults, and can be used to create for-credit career pathways (Section 803).

Bridges from Jobs to Careers: In collaboration with the Center for Law and Social Policy, the
Chancellor’s Office supported grants to colleges to increase access to and completion of occupational
certificates and degree programs for lower-skilled workers through ―bridge‖ programs, potentially

                                                        Page 8
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
modeled on the Lewis Center for Educational Research in Apple Valley, California, and other
innovations in remedial education that customize basic skills and English language curricula to specific
occupational programs, an approach that can increase persistence and completion. The grants will also
enable colleges to innovate in other ways, such as by accelerating basic skills coursework, by blending
basic skills with college-level curricula and instruction, by providing intensive counseling and advising,
and by improving the quality of teaching in these types of courses. The pilot will prioritize applications
from institutions with at least 50 percent of students needing remedial or developmental coursework in
reading, writing, or math (Section 851).

GI Bill Reauthorization: The Post-9/11 Veterans Educational Assistance Act of 2008

On June 20, 2008, the President signed into law the Supplemental Appropriations Act (P.L. 110-25) for
Iraq and Afghanistan. The bill also incorporates the Post-9/11 Veterans Educational Assistance Act of
2008 (by Senator Webb/D, VA), with new benefits for GIs who have served in the military since the
9/11 terrorist acts. The enhanced educational benefits, which the new law compares to those provided to
World War II veterans, are payable for a total of 36 months — the equivalent of four years of college,
and remain available for up to 15 years after a veteran’s last discharge or release from active duty (the
Montgomery is usable for 10 years). This program is operative in 2009-10, with payments becoming
available on August 1, 2009.

All three segments of higher education in California agree there are many complexities in how the
provisions may be applied and are awaiting the development of guidelines and clarification from the
Department of Veterans Affairs (VA) for this complex piece of legislation (hopefully by August 2009),
further complicated by the fact the current Montgomery GI Bill is still in effect, and in fact has been
enhanced with benefits boosted this year by 20 percent. Contrary to general belief, the Post-9/11 Webb
GI Bill did not replace other education programs for the military but simply added another program layer
of considerable magnitude. The challenge is administering -- making sure all potential program users
understand their options – by a federal agency not known for its stellar performance!

Under the Montgomery GI Bill’s new payment rates, active duty veterans receive $1,320 each month
(although some veterans qualify for extra funding and can receive as much as $1,800 per month). Under
the Webb GI Bill, veterans will get their full tuition and fees paid for — up to the cost of the priciest
undergraduate tuition at a public university in a veteran’s state — as well as a monthly housing
allowance (it ranges from $730 to $2,650, with the average amount nationwide set at $1,250) and an
annual $1,000 book stipend. Currently, veterans receive benefits under the Montgomery GI Bill of 1985,
being provided a monthly living allowance but no allowance for books or tuition. The living allowance
is tied to the Consumer Price Index for inflation. In 1985 the stipend was $300 per month and over 23
years the stipend has increased to its current level of $1,101.



                                                        Page 9
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
There are limitations to the Webb bill. Veterans who study half-time or less, or who enroll in a distance
education program, are eligible for only the tuition benefit, and not the substantial housing subsidy.
Apprenticeship programs, on-the-job-training, and flight training programs, which are covered under the
Montgomery program, are not included. The Webb benefit applies only to students enrolled in
education or training programs offered by ―institutions of higher learning‖ — degree-granting
institutions. According to the VA, the program of study itself doesn’t have to be a degree program, but
the institution the veteran attends must be degree-granting. A student could use the Post-9/11 bill to pay
for truck driving training at a community college, for instance, but not at a non-degree granting
postsecondary institution; under Montgomery, the student could attend either.

According to the Iraq and Afghanistan Veterans Association (IAVA), a non-profit, nonpartisan advocacy
organization, California will benefit from an additional $4.3 million in education assistance from the
new GI Bill in 2009-10. The California Postsecondary Education Commission has projected a possible
enrollment increase of 34,000 veterans in private and public colleges and universities, with the greatest
increase at community colleges. Patrick Campbell, chief legislative counsel for the IAVA, states: ―The
thing is, under very few circumstances will the Montgomery benefit be worth more than the Post-9/11
benefit.‖ (IAVA has posted a calculator on its web site for veterans to compare their benefits under the
two programs @: IAVA.org) Campbell continued: ―However, in those circumstances, it is useful for our
veterans, explaining that the 20 percent boost in Montgomery benefits was intended to complement the
new GI Bill, to ―make sure that no veteran, post-9/11 service or not, will get less benefits. Everybody
who doesn’t get the full benefit under Post-9/11 is still going to get a 20 percent increase.‖

A further complication arises in that the Webb Post-9/11 GI Bill does not require veterans to pay into the
system in advance, but to be eligible for the Montgomery program, which could prove to provide better
benefits for certain veterans who enroll in online learning programs, for example, service members must
buy into the benefits up to $1,200 their first year in the military.

So the Webb bill proves to be a boon for veterans going into higher education but not always those who
want to go to on-the-job training. Currently, veterans can still do on-the-job-training, or flight training,
or truck driving training at a non-degree institution, or everything they could do under Montgomery —
as long as they’re eligible for the Montgomery program. The VA is gathering a list of variables veterans
should consider in choosing between the two programs — including whether they’re enrolling in online
learning, are attending college full- or part-time, or if they want to pursue a degree- or non-degree
program, and currently recommends that anyone going into active duty sign up for the Montgomery Bill
because veterans can opt later to switch to Post-9/11 -- but not vice versa! Service members who pay
into the Montgomery Bill and later switch to the Post-9/11 GI Bill can get their $1,200 enrollment fee
back, but with an important caveat — only after they use all 36 months of their entitlement. According to
the VA, approximately 7 percent of veterans exhaust their benefit.



                                                       Page 10
                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU
The Post 9/11 Webb GI Bill will:

   Provide California’s veterans with up to $21,747 per academic year to cover the cost of in-state
    undergraduate tuition, fees and living expenses, an increase of $12,000 per year from the current
    Montgomery GI Bill funding. The Department of Veterans Affairs predicts that benefits overall will
    amount to $796 million per year for a total of $62.8 billion over 11 years.

   Provide benefits to service members or veterans who served after September 11, 2001, who served
    an aggregate of at least 36 months on active duty and remains on active duty or is discharged or
    released as designated in the law. Those who serve 90 days to 36 months receive prorated benefits.
    Benefits are equivalent to four academic years and are available for 15 years post-separation.

   Provide benefits to cover the cost of full-time undergraduate tuition and fees, up to the state’s most
    expensive public institution. Recipients will also receive a monthly payment based on the cost of
    living at their university. For independent colleges, where costs may exceed that allowed under the
    law, the college can enter into an agreement with the federal government where the government
    matches the funds to cover a portion of the fees in excess. This program is referred to as the ―Yellow
    Ribbon GI Education Enhancement Program.‖ Other benefits include a yearly payment of $1,000 for
    books and supplies, up to $1,200 per year for tutorial assistance, and payment for one eligible
    licensing or certification test.

   Offer active duty personnel who have served for six years and agree to serve at least four more to
    transfer their educational benefits to their spouse or children.

CCC Troops to College/Road Home: The task of the CCC will be to highlight for veterans which
options best suit their situation. The community college organizers for the Road Home events (focusing
on awareness of veterans’ issues) held at Sierra College in 2007 and American River College in 2008 are
currently formalizing a follow-up Road Home program of training and development for counselors,
certifying officers, faculty members and other veterans’ issues-related community college staff to be held
in the spring and summer of 2009 in Northern and Southern California. Focus will be on best-practices
and protocols for working with this student population, navigation of the VA regulations, information on
readjustment issues, as well clarification of and preparation for advising veterans regarding their options
with the Post 9/11 GI bill.




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                                                _____________________
                                                 STATE OF CALIFORNIA
                            CALIFORNIA COMMUNITY COLLEGES CHANCELLOR’S OFFICE
                   1102 Q STREET | SACRAMENTO, CA | 95814-6511 | (916) 445-8752 | HTTP://WWW .CCCCO.EDU

				
DOCUMENT INFO
Description: Federal 2009 Budget Bill document sample