Latest news with #GIBill
Time Magazine
4 days ago
- Business
- Time Magazine
Why Growing the Economy from the Bottom Up is America's Best Bet
America stands at a crossroads. We can try to cut our way out of a looming fiscal crisis—slashing services, tightening belts, and watching as the walls close in on the American Dream. Or we can choose a different path: one of expansion, inclusion, and opportunity. I call this approach 'Raising the Third,' a national strategy to economically empower the bottom one-third of Americans across all races and backgrounds, urban and rural—turning them into stakeholders, owners, and new capitalists in the promise of this country. For decades, America has grown by building from the middle out and the top down. But the middle is shrinking, and the top has become too narrow a base to support the weight of our shared aspirations. Meanwhile, roughly 70% of our population lives paycheck to paycheck or worse, and if you can believe it, approximately 50% of those making $100,000 a year, and even a third of those making as much as $250,000 a year do as well. And for those at the very bottom it is largely, I have found, not because they are lazy, or lack talent or drive, but because they lack access to capital, opportunity and belief. Imagine what happens if we reverse that. If we take the 100 million Americans who are too often counted out and empower them to build businesses, own homes, increase their credit scores, invest in education, and take part in the market as producers, not just consumers. Don't shutter the U.S. Department of Education—give it a radical new mission of training America's bottom third for the AI, technology, skills-based and information-age jobs of the future. And this new economic growth could help grow GDP from the bottom up by 2% to 3% a year, chip away at the fiscal crisis, bring down the deficit, and grow America too. After World War II, America didn't retreat, it expanded. The GI Bill sent millions to college and into the middle class. Infrastructure projects like the interstate highway system connected communities and commerce. Even the moonshot poured billions into high-tech research and development that gave rise to entire industries. We grew our way into leadership. We didn't fear the investment, we embraced it. But that prosperity wasn't shared. Black and brown Americans were largely excluded from many of those opportunities, and white Americans in poor rural areas were left behind by globalization. As a result, we built an economy on an incomplete foundation. If the bottom one-third of Americans were included in the economic mainstream—with a credit score of 700 or higher, with access to prime capital, and with a shot at owning something—we would unlock trillions of dollars in untapped GDP. That's not a redistribution plan. That's an inclusion plan. At Operation HOPE, we've seen what happens when you invest in people's financial well-being. We've helped raise credit scores, start businesses, and launch careers. When people believe that the system works for them, they step up, not step back. They buy homes. They create jobs. They build wealth for the next generation. They stop surviving and start thriving. Step by step, the lights begin to come on again in struggling towns and cities clear across America. Some policymakers argue that America's debt is too high to invest in bold economic strategies. But debt is only dangerous if it doesn't lead to growth. As I have argued before, there is a big difference between good debt and bad debt. Between dumb debt that finances depreciating anything, and smart investments that raise the roof, and have the potential for appreciation. When you invest in people—in their education, in their small businesses, in their financial literacy—you get a return. The right kind of debt is a bridge to prosperity. And let's talk about demographics. America is getting younger at the bottom and more diverse overall. If we don't invest in the bottom third, we risk a future where too many feel left out—and opt out. That's not just bad economics. That's bad democracy. We can grow the pie, not just fight over slices. It's about making financial literacy the civil rights issue of this generation. We can make capitalism work for everyone—not by changing its fundamentals, but by expanding its reach.
Yahoo
5 days ago
- Business
- Yahoo
Advocates push Senate to drop changes in 90/10 rule for vets benefits
A coalition of 31 veterans groups is urging Senate leaders to strip a provision from the Republican budget reconciliation package which they say will allow for-profit schools to once again take advantage of student veterans. In a letter sent Wednesday evening to Senate Majority Leader John Thune, R-S.D., and Minority Leader Chuck Schumer, D-N.Y., the groups noted that the provision concerning a repeal of the 90/10 rule could also cost the federal government as much as $1.6 billion, making the move concerning on a fiscal level as well as a ethical one. 'Our organizations spent a decade with bipartisan lawmakers to solve this problem,' the letter stated. 'That progress shouldn't be undone.' GOP bill repeals rule on how for-profit schools count vets benefits Veterans groups in recent weeks unsuccessfully lobbied House leaders to drop the provision before passing the reconciliation bill. The new effort includes a broader array of groups including Disabled American Veterans, Paralyzed Veterans of America, Iraq and Afghanistan Veterans of America and Veterans Education Success. At issue is the 90/10 rule, which covers how colleges must account for how much federal financial aid funding they take in. By law, colleges and universities must have at least 10% of their revenues derived from non-federal sources in order to qualify for federal benefits. The idea behind the regulation is to ensure that for-profit institutions aren't funded solely by federal monies, but instead also include significant investment by students interested in furthering their education. But for years, GI Bill benefits and Defense Department Tuition Assistance programs were not counted as federal dollars for the 90/10 calculation, despite being taxpayer-funded benefits. As a result, schools could target veterans or troops receiving federal education payouts to boost their government funding well beyond the 90% cap. Four years ago, as part of an emergency funding bill during the Covid-19 pandemic, lawmakers closed that loophole, reclassifying the GI Bill money and other military education programs as federal funding in the 90/10 calculations. But the Republican-backed reconciliation bill — which includes changes to tax rates, Medicaid spending and a host of other federal program reforms — would revert to the pre-2021 rules on college accounting for federal aid. GOP committee members argued the change was needed to reduce regulations and promote more affordable options for student veterans. Officials from the Congressional Budget Office estimated the 90/10 reversal could cost as much as $1.6 billion over the next decade. 'Congress designed the [rule] to be a market viability test to protect taxpayers from artificially propping up a failing college of such low quality that no employer or private-paying student is willing to pay for it,' the letter stated. 'We urge you to vote 'no' on repealing the common-sense rule.' Democratic lawmakers have been pointing to the rule change as one of many flaws in the Republican backed bill, which passed only party lines in the House. Senate lawmakers are expected to take up work on the massive budget measure when they return from recess next week. Chamber leaders have said they hope for a floor vote on the bill before the congressional July 4 recess.
Yahoo
5 days ago
- Business
- Yahoo
Parren Mitchell, the first Black member of Congress from Maryland, honored with memorial
The Parren J. Mitchell memorial outside the Pip Moyer Recreation Center in Annapolis. (Photo courtesy of the City of Annapolis) Keiffer Mitchell Jr. remembers that his uncle, the late Rep. Parren J. Mitchell, would always arrive a bit late for November and Christmas dinners. 'We would say, 'Uncle Parren, where you were? How come you were late?'' the younger Mitchell said in an interview Wednesday. 'He sat and had dinner with the men and women in the penitentiary. He represented his people.' It was just one of the memories shared Wednesday at the dedication of a memorial honoring Parren Mitchell, the first African American member of Congress from Maryland as well as a pioneer in other areas. A few hundred friends, family members and dignitaries braved the rain to honor Mitchell during the dedication of the black stone memorial at the Pip Moyer Recreation Center in Annapolis, featuring images and words from the late congressman's life. Wednesday was the anniversary of Mitchell's death in 2007 at age 85, He made history as the first Black member of Congress from Maryland, but Mitchell was making a name for himself well before his election to the House in 1970. Born and raised in Baltimore, he joined the Army in 1942 and was assigned to the all-Black 92nd Infantry Division. He served in Italy, earning a Purple Heart, and on his return used his GI Bill money to earn a bachelor's degree from what was then Morgan State College. He then successfully sued for the right to attend the University of Maryland, College Park, becoming the first Black graduate student on the campus and earning a master's in sociology. SUPPORT: YOU MAKE OUR WORK POSSIBLE He was elected to Congress in 1970 from Maryland's 7th District and served eight terms before stepping down in 1987. He was a founding member of the Congressional Black Caucus and a fierce advocate for policies protecting small- and minority-owned businesses. When then-President Jimmy Carter signed the Small Business Act and Small Business Investment Act in 1978, the legislation included amendments from Mitchell to fund and support minority businesses. When Sen. Nick Charles (D-Prince George's) and Del. H. Scott Phillips (D-Baltimore County) sponsored proposals in the 2024 legislature requiring state agencies to set aside 10% of contracts for minority- and veteran-owned businesses, they named it for Mitchell. Their bill ultimately passed and was signed into law. 'Congressman Parren Mitchell did so much that, even in his death, that his legacy still lives on,' said Del. Jheanelle Wilkins (D-Montgomery), chair of the Legislative Black Caucus. 'Our Maryland Black Caucus will continue to make sure that his legacy and his work and his leadership lives in all of the work that we do.' Gov. Wes Moore (D) credited Mitchell's trailblazing with making it possible for him to be governor today. 'I want to be very, very clear: I am not the 63rd governor of the state of Maryland had it not been for Congressman Parren Mitchell,' Moore said at Wednesday[s event. Moore also read a citation which he gave to the Mitchell family. 'What you see here is you see an entire mosaic of our state in celebration. Today is not just a great day for Anne Arundel County. Today is a great day for the state of Maryland and a great day for the United States of America,' Moore said to a warm applause. Moore, who attended the 90-minute ceremony with his wife, received a standing ovation when he walked to the microphone to speak on the importance of Mitchell's legacy. Not everyone was as welcoming of Moore, who this month vetoed a bill that would have created a Maryland Reparations Commission. 'We need that reparations bill. We need it,' Greg Thrasher shouted toward Moore. Thrasher, who recently moved to Anne Arundel County from Michigan, said he is not part of a local Black Lives Matter group, but after elected officials and others were acknowledged, he yelled, 'Black Lives Matters is here, too.' But most of the afternoon's proceedings were celebratory. The Caucus of African American Leaders and the Dr. Martin Luther King Jr. Committee led efforts that helped raise $100,000 for the memorial in just four months. Although Mitchell was a Baltimore City native, the memorial in Annapolis has a Mitchell connection: His nephew, former state Sen. Michael Mitchell, was arrested during a sit-in at a segregated restaurant in Annapolis and called Moyer, a former mayor, to post his bail, according to an article in Eye on Annapolis. Parren Mitchell's niece, Lisa Mitchell Sennaar, thanked everyone and mentioned her uncle didn't have any children. 'I see the legacy of Karen Mitchell in this room. We are His children. We are his legacy,' said Mitchell Sennaar, a small business reserve compliance manager in the Governor's Office of Small, Minority and Women Business Affairs.
Forbes
5 days ago
- Business
- Forbes
From Service To Success: Making Veterans Feel Welcome On Campus
Combined Forces Color Guard stands atop the Vietnam Veterans War Memorial during Veterans Day ... More ceremony. Washington DC. November 11, 1990 (Photo by Mark Reinstein/Corbis via Getty Images) During the recent Memorial Day weekend, in addition to enjoying holiday barbecues, many Americans remember the sacrifices of our veterans in fighting for freedom and democracy. To honor those who have served the country, the US has provided generous benefits for higher education for Veterans. The original Servicemen's Readjustment Act of 1944, popularly known as the 'GI Bill,' was intended to remedy the problems of returning veterans by providing tuition and fees for college, stipends, loans for homes and businesses and counseling. By 1947, veterans comprised nearly 50% of college enrollments, and from 1944 to 1956, nearly half of the 16 million World War II veterans participated in education and training programs, with over 2 million attending colleges and universities. The GI bill was updated in 1984 and again in 2008 to increase support for veterans to include not only full tuition for public colleges but additional funds for housing and books. By 2020, 54% of eligible veterans had taken advantage of these benefits personally, with thousands more transferring their benefits to a spouse or child. Despite generous funding levels for the GI bill, amounting to $108 billion between 2009 and 2020, many gaps exist in fully supporting veterans as they navigate through the complicated federal documentation requirements. In recent years the number of beneficiaries has been dropping, decreasing by 22% between 2016 and 2021. In addition, the utilization of the benefits varies by military branches, with some branches such as the Air Force seeing less than half of the veterans using their GI Bill benefits. Another problem many veterans have is choosing among a vast array of higher education providers, which include many for-profit institutions that target veterans with aggressive marketing tactics. Some of these institutions have been shown to have questionable business practices such as raising costs on veterans once they are enrolled and misleading veterans into large amounts of student debt. In 2017, seven of the 10 colleges receiving the most GI funds spent less than one-third of the tuition they charged the VA for educating the veterans, and for those schools, only 28% of veterans completed a degree. Some of the more ruthless institutions faced legal action and prosecution, slowing but not stopping these practices. By 2021, the for-profit institutions still served 18% of GI bill beneficiaries, with lower completion rates, lagging by 15% compared to non-profit public colleges, even after controlling for the student's characteristics. To reduce the incentive among for-profit providers to target veterans, the US federal government in 2021 revised the cap that for-profit institutions could receive from federal funding to include veterans' benefits, reducing some of the ruthless practices among some of these institutions. And while these reforms have reduced some of the fraudulent practices, the government has created a vast and complicated regulatory system to certify eligibility to receive benefits. Many military veterans struggle with opaque and burdensome rules for documenting and certifying their status and eligibility, and often face delays in benefits, with inadequate lines of communication between institutions and the federal government making it extremely difficult to get help. The result is that many veterans are caught in the middle between large and slow bureaucracies on university campuses and at the federal government. To help solve this problem, a new company known as MilVet Navigator is working to streamline the processes for both veteran and military-connected students and staff within the higher education institutions. MilVet's goal is to improve student experience and outcome, and institution efficiency, bandwidth, and compliance. MilVet's mission was founded to empower the higher education military community. Dr. Mahdi Omar and Paul DeCecco, founded the company in 2023. Dr. Omar spent more than 20 years in higher education and technology fields and Mr. DeCecco is a 29-year Army veteran followed by 8 years working in higher education. After witnessing the ordeal that many military-affiliated students suffered in using their benefits, Dr. Omar and his team created a new scalable, cost-effective, and highly secure Software-as-a-Service solution that lessens the burdens on both the veteran and military-connected students, and higher education institutions. In an interview, Omar noted that Student Information Systems were not built with the VA and DoD benefits in mind. Such systems have modules to meet the business needs of multiple administrative offices such as admissions, financial aid, enrollment, advising, and others, but offer nearly nothing in the way of VA/DoD benefit management or functionality, failing to address the unique challenges faced by this population. Thus, institutions are forced to rely on spreadsheets, disconnected databases, and manual workarounds leading to fragmented and labor-intensive processes that introduce errors, slow down approvals, and create compliance risks. The problem is both a lack of staffing and a lack of modern systems, according to Omar. For a university to manage a veteran and their benefits, the veteran and military-connected student has to work with a 'certifying official' who is a specialist in getting the students to provide the complicated paperwork for getting their benefits and then managing the communication with the federal government to release the funds for the student. Omar notes that 'the VA recommends that for every 125 students, you need at least a single school certifying official.' Omar added, 'we have done a survey, and the average ratio is 570 and some schools have 700 to one.' The thicket of federal regulations is just one of 'two baskets' of problems facing a veteran student, according to DeCecco, who says 'the first basket is their regular support in terms of their transition from military life to civilian life and their needs in the process,' while 'the second basket is their benefits and the processing of their benefits.' Instead of having a modern system for managing benefits, most universities 'do everything in a spreadsheet and sticky notes' according to Omar. MilVet Navigator system, by contrast, offers a system that automatically tracks a student as they enroll in courses and help complete certifications, calculates tuition and fees, and communicates proactively with students by email and even SMS messages to help them effortlessly update their status with the university and the federal government. The result is that the documentation workload of the certifying officials has reduced substantially, making it possible for them to better support the students with the other problems they might face. Mr. DeCecco, understands the problems of veterans deeply, having completed his graduate degree and with deep roots in the military. DeCecco says that 'the GI Bill is utterly amazing as a tool for veterans to be able to use - but it was not designed for people to be able to both live and pay for college.' DeCecco describes how a veteran will 'get out, maybe try and get a job, with all the stresses of family life, and then they're sitting in classrooms with 18, 19, 20-year-olds.' As DeCecco describes it, the student is asking 'how do I do this in the civilian world? I've spent 4,8, 20 years in the military community, military culture away from normal civilian life. And now I'm being asked to completely reintegrate into that.' The good news is that with these new systems like MilVet Navigator, colleges and universities can focus on helping our veterans and military-connected students do this reintegration. MilVet team is currently working on additional features and functionalities to facilitate student communities and student connections and mentorships. These new tools will help foster social and support communities among students, veteran staff, advisors and others noted DeCecco. Staff can also use these tools to facilitate events, such as barbecues for veteran and military-connected students. These efforts, when made possible by streamlined information systems, allows for a university to 'build that sense of community to have an event like a barbecue be the catalyst so that people feel welcome.' DeCecco adds, 'I can't understate the importance of that feeling and building that sense of community in working with military veterans and their family members.'
Time Business News
5 days ago
- Business
- Time Business News
Why VA Loans in Texas Are Gaining Momentum in a Shifting Real Estate Market
As the U.S. housing market recalibrates in response to inflation, tightening credit, and economic uncertainty, one mortgage product is rising in visibility and impact: the VA home loan. Long considered a niche offering, VA loans are now central to homeownership conversations—especially in military-rich states like Texas. This rise in relevance isn't just anecdotal; it's a reflection of deep demographic trends, evolving lending practices, and a renewed focus on financial resilience. For lenders like Herring Bank—who are leaning into the needs of veterans and active-duty service members—this presents both a mission and a market opportunity. Texas is home to more than 1.5 million veterans and boasts some of the fastest-growing metro areas in the country. Cities like Dallas, Houston, San Antonio, and Corpus Christi are popular destinations not just for job seekers and business owners, but for veterans seeking quality of life, affordable housing, and economic opportunity. With its low property tax rates, business-friendly policies, and military installations like Fort Cavazos and Lackland Air Force Base, Texas is uniquely positioned to meet veteran homebuyer demand. But the question becomes: can lenders adapt fast enough to serve this audience well? The core features of VA loans haven't changed much since the program's inception under the GI Bill in 1944. But in today's market, these features are more valuable than ever: 0% Down Payment : In an environment where many buyers struggle to save 10–20% for a down payment, VA loans offer the only mainstream mortgage that requires no upfront equity. : In an environment where many buyers struggle to save 10–20% for a down payment, VA loans offer the only mainstream mortgage that requires no upfront equity. No PMI (Private Mortgage Insurance) : For conventional buyers putting less than 20% down, PMI can add hundreds to a monthly payment. VA loans eliminate this burden entirely. : For conventional buyers putting less than 20% down, PMI can add hundreds to a monthly payment. VA loans eliminate this burden entirely. Competitive Interest Rates : Because they're backed by the federal government, VA loans often come with lower interest rates than comparable conventional products. : Because they're backed by the federal government, VA loans often come with lower interest rates than comparable conventional products. Flexible Credit Requirements: VA loans are often more forgiving of short credit histories or moderate FICO scores, as long as borrowers have steady income. These advantages are compounded in high-cost housing markets, making them especially impactful in major Texas metros. Unlike national mortgage platforms that treat VA loans as just another checkbox, Herring Bank has taken a regional and relationship-based approach. By focusing on Texas communities and providing in-house underwriting, the bank offers a level of speed and personalization that's hard to find in today's highly automated lending environment. The VA home loan team at Herring Bank specializes in walking veterans through every step of the process—from obtaining the Certificate of Eligibility (COE) to navigating appraisals and closing. This hands-on guidance is especially valuable for first-time homebuyers and recently separated service members. From a macroeconomic perspective, VA loans help close the wealth gap between civilian and veteran populations. While many federal programs focus on education and employment, homeownership remains one of the most reliable generators of generational wealth. Veterans using VA loans tend to: Buy earlier in life in life Retain their homes longer Refinance at better rates Avoid delinquency and foreclosure at lower rates than their civilian counterparts This isn't just good for the veterans—it's good for the economy. Stable, long-term homeownership supports stronger communities, increases local tax revenue, and fuels small business growth. According to data from the Department of Veterans Affairs, VA loan usage is at an all-time high. Yet a surprising number of eligible borrowers remain unaware of their options. Common misconceptions include: 'I already used my VA loan once; I can't use it again.' 'It's only for first-time buyers.' 'It's a slow process that's harder to get approved for.' These myths persist despite widespread eligibility and flexible reuse provisions. Lenders and real estate professionals have a role to play in correcting these misunderstandings—and so do financial media outlets and business influencers. National lenders often miss the nuance of local Texas housing markets. Factors like: Rural property eligibility Texas homestead exemptions County-level property tax structures Flood zone insurance overlays …can all affect a veteran's loan process and closing timeline. Herring Bank, by focusing on metro-level support—like in Corpus Christi or San Antonio—ensures that every borrower gets the guidance they need, in the context of their local housing and employment environment. As digital lending tools become more mainstream, expect a wave of innovation in how VA loans are processed and approved. Pre-approval apps, e-closings, and automated COE verification are already speeding up turnaround times for veterans. The next frontier? Hybrid mortgage models that combine VA benefits with renewable energy financing, modular home construction, or co-investment down payment assistance. These are early-stage concepts—but forward-thinking institutions like Herring Bank are well positioned to lead the charge. The Texas housing market is not without its challenges. Affordability, inventory constraints, and rate volatility all continue to pressure buyers. But for veterans, VA loans remain a rare win—both in terms of financial value and legal protection. Banks that understand the unique needs of the veteran community—like Herring Bank—are proving that smart lending can also be service-oriented. And in an era where trust is currency, that's a competitive edge worth watching. Interested in learning more about how VA loans can help you buy a home in Texas? Explore Herring Bank's city-specific programs: Dallas VA Loans Houston VA Loans Corpus Christi VA Loans TIME BUSINESS NEWS
