The Veterans Eligible to Transfer School (VETS) Credit Act addresses the issue of transferring less than 12 credits to another school when the school a GI Bill student was attending closes or one of the school’s programs is disapproved by the Department of Veterans Affairs (VA).
Impact of School Closings on GI Bill
School closings have been an ongoing issue for a few years now. Just in the past year, the Center for Excellence in Higher Education, Stratford University, Quest College, and Cazenovia College have closed, leaving student veterans wondering how much GI Bill entitlement they have left and how much will be restored.
Under the old program, the VA would only accept requests for GI Bill restoration for entitlement charged for degree program classes they were taking at the time of closure, if they enrolled in a new school first. Specifically, it stated “If your school closed or program was disapproved after August 1, 2021, to receive restoration of entitlement for your entire program, you must first enroll at a new school or training institution and have them evaluate how much credit they will accept. Once the evaluation is complete, VA can determine how much entitlement may be restored.”
But many student veterans were hesitant about enrolling in a new school without knowing how much (or if) GI Bill entitlement would be restored. In the end, many just gave up their post-secondary dream and never went back to school.
New Legislation Improves the Process for Students
Now under this legislation, students are not required to first enroll in a new school before requesting GI Bill entitlement restoration. They simply must certify in writing they are requesting restoration for fewer than 12 credits. The VA must accept this certification and fully restore the entitlement used for these credits. And … the VA must notify students who are eligible to make a certification and issue them a new Certificate of Eligibility (COE) upon entitlement restoration.
The VETS Credit Act also removes the transfer of benefits end date requirement for a service member requesting a transfer of Post 9/11 GI Bill entitlement. It will automatically default to the maximum amount allowed under GI Bill laws anyway, so the date has no useful purpose.
This legislation was introduced in February by Congressman Vern Buchanan (R-FL) as H.R. 6604 . The bill was passed by the House of Representatives in May 2022, recently passed by the Senate and signed into law by President Biden on December 27, 2022.
