Important GI Bill Update: 48-Month Rule
Important GI Bill Update: 48-Month Rule
On October 28, 2020, the Department of Veterans Affairs (VA) sent emails to those of us who have used, are using, or are eligible to use the GI Bill, notifying us of big changes to the “48-Month Rule” that has applied to some veteran students and beneficiaries.
Carr vs. Wilkie
On June 11, 2020, the Federal Circuit Court overturned VA rules regarding end-of-term benefit extensions previously set out in the case Carr v. Wilkie.
As a result of the court’s decision, the VA began paying more benefits by extending the end-of-term benefits beyond 48 months. This ruling applies only to cases that were on appeal with the Board of Veterans Appeals or were still appealable to the VA.
Why is this important?
Before the Carr decision in June, the VA viewed the 48-month rule as a “hard stop” and would never extend end-of-term benefits beyond 48 months. The court ruled that VA’s interpretation of the rule was incorrect and that the VA should “apply the 48-month rule to limit the initial award, which will determine when benefits are exhausted.” Once that point of exhaustion arrives, then the VA should apply an end-of-term extension.
For example, suppose a student has used 26 months of benefits under Chapter 1606 of the MGIB Selected Reserve. Then the student applies for benefits under the Post-9/11 GI Bill (Chapter 33). The entitlement to Chapter 33 is generally limited to 36 months. However, application of the 48-month rule limited the award to 22 months of Chapter 33 benefits:
- 26 months Ch. 1606 benefits used
- 36 months of Ch. 33 benefits entitled
- 48 (month rule) – 26 (months used) = 22 months of Ch. 33 available
In this case, if the student then uses 21 (of 22) months of Chapter 33 benefit, leaving one month of entitlement remaining, and then starts a 4-month standard semester program, the VA revised policy to pay benefits for the entire 4-month semester. This results in an extension of benefits by three months beyond the actual entitlements awarded.
This is important because many students were facing the challenges of having their benefits only covering part of a college semester. I’ve been there, and it’s a troubling time. The revised policy meant that the VA may consider extending benefits to the end of the term for quarter or semester-based programs.
If a student has at least one day of benefits to start the academic term but does not have enough days of benefits to pay for the entire term, the VA may pay for the entire term, depending on circumstances.
Contact the VA
If you have questions, please contact the Education Call Center at 1-888-442-4551, Monday – Friday from 7:00am to 6:00pm Central Time. For more information on VA education benefits, you may visit the VA site.
(Image courtesy of the U.S. Army)
RELATED:
- Post-9/11 GI Bill: The Ultimate Overview
- GI Bill Payment Dates and Rates
- GI Bill Extensions Available Due to COVID-19
- BAH Rate Calculator and GI Bill MHA (updated)
About the author
Lori Waddell serves as Co-director of an emergency response COAD in Montana, a freelance writer, and an Air Force Key Spouse. She is passionate about empowering communities and individuals through knowledge and resources. She currently lives in Montana with her husband and two children.
