VA Loan Updates

I have been assisting in the demobilization of reserve units that have been serving in Iraq and with every group, I get the same question about education benefits. Active-duty service members who established eligibility for education benefits under the Montgomery GI Bill have 10 years from discharge to use those benefits.Reservists who established eligibility from active-duty service and have been activated for federal service for at least 90 consecutive days have a new 10-year eligibility to use those benefits. There are no new benefits, only whatever remains from the 36 full-time months that were earned.

Q. I am retired from the military and I was just awarded 40 percent disability from the VA. Part of my rating (30 percent) was from combat. How do I apply for Combat Related Special Compensation and how will that be paid?

A. This office can assist you in filing for CRSC. Bring a copy of your retirement DD214 and your VA award letter. If you received a Purple Heart, the orders for that award will help.

The VA will pay you for the 40 percent disability.

Currently, 40 percent compensation for a veteran with one dependent is $539 per month, tax-free. That amount will be subtracted from your retired pay. Your CRSC would be paid by the service and currently be $377 per month, also tax-free.

The bottom line is that you will be getting $916 per month tax-free and pay taxes only on your remaining retired pay.

Q. My service-connected disability became more severe, and the VA increased my compensation. I applied for VA Disability Insurance and was denied. Can you explain?

A. When a veteran receives a disability rating, there is a two-year window to apply for disability insurance. The description of the program is in the VA award letter that establishes compensation.

An increase of a previously rated condition does not establish a new two-year window for application. Also, the veteran must be in otherwise good health except for service-connected disabilities.

You would have to have a compensable rating for a new condition to be able to receive disability insurance.

Found here.

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