PREFACE

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REVISIONS

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Additional responsibilities required of a Yellow Ribbon school:

• Certify in accordance with the school’s Yellow Ribbon agreement
• Maintain these additional records
• Track the number of students enrolled under Yellow Ribbon
• Track the annual amount of tuition and fees
• Develop and document a process for the first come-first served enrollment of students into the Yellow Ribbon Program 

These are additional activities that schools are encouraged to carry out, but are not required by VA:

• Assist students in applying for education benefits
• Maintain copies of appropriate application forms
• When requested, help Veterans and dependents fill out and send in applications
• If the student cannot resolve payment problems, assist through VA channels designated for school officials
• Disseminate and/or post information on VA education benefits, programs, and contact points
• Ensure that VA students are fully aware of their responsibilities to the school 

Apprise supervisors of any internal problems that may affect service to VA students, such as:

• Failure of records office to provide information on a student’ s grades, grade changes, or academic problems
• Failure of instructors to provide information on attendance/attendance problems
• Failure of other offices to provide information on new programs, or changes in current programs
• Failure of mail distribution center to forward appropriate mail

Priority Enrollment

Section 303 of the Harry W. Colmery Veterans Educational Assistance Act of 2017 required VA to publicly report if a school offers priority enrollment to student Veterans/Service members. Priority enrollment is defined as, “a student being able to register for classes earlier than other students”. However, this does not mean a student Veteran or Service member can register for classes before ALL other groups of students. 

Example: All seniors can register for classes, then all student Veterans and/or Service members, then all juniors, then all sophomores, then all freshmen. Because student Veterans and/or Service members can apply before other groups, they are eligible for priority enrollment. 

Schools are encouraged to extend priority enrollment to all VA beneficiaries, but the law references Veterans and Service Members only. To be reflected in the Comparison Tool as a school offering ‘Priority Enrollment’, it must be available to at least Veterans and Service Members.

Schools with priority enrollment policies for Veterans and/or Service members must provide Approvals, Compliance and Liaison (AC&L) a printout of their course catalog or catalog addenda detailing their school’s priority enrollment process to establish the ‘Priority Enrollment’ indicator on the GI Bill Comparison Tool.

NOTE: Priority enrollment is NOT a condition of approval, and failure to report the existence of a priority enrollment policy is NOT grounds for suspension or withdrawal of program approval.                              

However, schools are encouraged to provide this information to ensure Veterans and Service members can make informed decisions regarding how to use their GI Bill benefits. 

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Veterans Benefits and Transition Act of 2018, Section 103 of Public Law 115-407

Effective August 1, 2019, section 103 of P. L. 115-407, requires the State Approving Agency (SAA), or the Department of Veterans Affairs (VA), when acting as the SAA, to disapprove programs of education that do not permit individuals using benefits under either chapter 31, or 33, title 38, United States Code, to attend or participate in courses while awaiting payment from the VA. 

Educational institutions must have a policy in place that will allow an individual to attend or participate in a program of education if the individual provides the school with a “Certificate of Eligibility (COE).”  VA interprets “certificate of eligibility” to be any documentation provided by VA that serves as verification of an individual’s eligibility to benefits under chapter 31 or chapter 33. 

SAAs are not required to immediately disapprove non-compliant schools on August 1, 2019. Instead, if an SAA determines that a school is not in compliance, it will take appropriate corrective action, including suspension where warranted under 38 CFR 21.4259. This will give the school 60 days to come into compliance or receive a waiver. If the school does not come into compliance or receive a waiver within 60 days, the SAA should withdraw approval under 38 U.S.C. 3679. At the time an SAA determines a school in not in compliance due to reasons outside of the school’s direct control (for example, if action is required by the state legislature), the SAA may also recommend that the school request a waiver from the VA through the SAA. 

Waiver Process: If a school is unable to comply with the requirements of 38 U.S.C.§ 3679(e) for reasons outside of the school’s direct control (for example, if action is required by the state legislature) the school may submit a waiver request through the SAA of jurisdiction. Waiver requests must contain the following:

• Reasons the school has not been able to come into compliance
  • Steps school has taken to come into compliance
  • What steps are still required
  • What has prevented the school from completing these steps thus far
  • What will prevent the school from completing these steps within the 60 days afforded under 38 CFR § 21.4259
• Target date for the schools to come into compliance
  • Detailed plan (including timeline)

Click here for questions and answers on how to implement the Transition Act of 2018. 

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Enrollment Manager (EM)

Enrollment Manager (EM) is VA’s Web-based system for certifying the enrollment and changes in enrollment of students. Enrollment  Manager is the preferred method of enrollment submission to VA. Access is accomplished through the Internet and is available to all schools approved for Veterans’ training. EM functions with any internet browser.

Important Points:

•Enrollment (EM) usage is mandatory for all enrollments and changes.

•In order to access Enrollment (EM) an account with id.me or Login.gov is required.

•To expedite claims processing, please minimize the use of free-text remarks when certifying student enrollments and changes in Enrollment Manager (EM).

•VA objective and course codes were required in VA-Once, but are no longer needed in Enrollment Manager (EM) in order to certify enrollments.   

VA has made available to education institutions, information about the amount of educational assistance (Entitlement) to which a Veteran or beneficiary is entitled under chapters 30, 33, 35 and 1606. 

However, Veterans or beneficiaries may elect to Opt-Out of providing entitlement information to educational institutions. If a Veteran or beneficiary has decided to “Opt-Out”, VA would not provide personally identifiable information or information about the individual’s education benefits with any education institution. 

Viewing a student’s entitlement information will only be available through Enrollment Manager (EM) under the “Benfits" tab on the student's profile. If a Veteran or beneficiary has opted not to share entitlement information with a school, the following message will be displayed: “Student has opted out”, and no data will be displayed. To access entitlement information, a SCO must do the following: 

1. Log into Enrollment Manager (EM)
2. View and Explore the Student’s Profile in Enrollment Manager (EM)
3. Select the  Benefit tab at the top of the Enrollment Manager (EM) page for viewing entitlement information. 

NOTE: Schools that do not use Enrollment Manager (EM) will not have access to a student’s entitlement information. 

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Enrolling in Direct Deposit

Institutions that wish to receive Post-9/11 GI Bill payments and/or annual reporting fees are required to provide direct deposit information. Initial direct deposit requests and requests to update current direct deposit information on file with VA must be submitted on school letterhead.

To process the request, the institution must provide the following information on school letterhead:

• Name of Institution
• Address of Institution (Street Number, City, State, Zip)
• Tax ID #
• Facility Code(s)
• Address of Financial Institution
• Nine Digit Routing Number
• Account Number
• Type of Account (Checking or Savings) 

The letter should be dated and signed by an official legally authorized to add or amend the account for which Post-9/11 GI payments will be issued.  The title and telephone number of the signing official must be provided.  No changes will be processed without a valid signature. 

VA no longer accepts change requests submitted on VA Form 22-8794a (Electronic Funds Transfer (EFT) Information).   

Federal regulation, found in 31 C.F.R. § 208.3 provides that, subject to section 208.4, “all Federal payments made by an agency shall be made by electronic funds transfer” (EFT). None of the exceptions contained in section 208.4 apply to the Department of Veterans Affairs (VA) education payments paid to vendors on behalf of a Veteran.

Chapter 33 payments made to schools on behalf of students are considered vendor payments and therefore are required to be made via EFT.  Schools currently receiving payment by paper check are out of compliance with 31 C.F.R. § 208.3.  To correct this matter, a school must enroll in direct deposit by following the instructions stated above.  

Reporting Fees to Institutions

At the beginning of each calendar year, a listing of students who were receiving assistance during the previous calendar year is printed by VA for each institution. Schools are provided a reporting fee based on the number of students who were certified to VA at least once during the year and who received VA educational benefits. SCOs should compare the student list and report any students not included to the ELR of jurisdiction. In the event of errors, you should provide a list of students and the enrollment dates to the ELR. 

Yearly rates may fluctuate based on legislation. Please contact your ELR for exact rates per year. 

Public Law 111-377 (Section 204) clarified that effective October 1, 2011, “any reporting fee paid to an educational institution or joint apprenticeship training committee after the date of the enactment of the Post-9/11 Veterans Educational Assistance Improvements Act of 2011, shall be utilized by such institution or committee solely for the making of certifications required under this chapter or chapter 31, 34, or 35 of this title or for otherwise supporting programs for Veterans”. When using your reporting fees, ensure that they are being used for the purposes identified in Public Law 111-377. 

Some examples of acceptable uses for Annual Reporting Fees include:

• Fees to join your state’s School Certifying Official association and attend conferences they host
• Setting up and/or supplying a Veteran’s lounge or Vet Center on campus
• Purchasing expendable supplies or needed equipment for the VA Certifying Official's office
• Hosting a Veteran’s Day luncheon for VA students where refreshments are provided
• Purchasing cords for VA students’ caps and gowns at graduation
• Contributing to the school’s Yellow Ribbon program fund

Note: Any usage that does not support certification or solely for the benefit of VA beneficiaries, even if VA beneficiaries are included, would not acceptable. For example, paying for a speaker or event that all students can attend, including VA beneficiaries.

The Harry W. Colmery Veterans Educational Assistance Act of 2017, Public Law 115-48 (Section 304), as amended by the Department of Veterans Affairs Expiring Authorities Act of 2017 (Public Law 115-62, §411), provided the following change, effective August 1, 2018, to Reporting Fees: 

• If a school receives reporting fees for 100 or more eligible students, then the reporting fees paid to the school cannot be used for, or merged with, the school’s general fund. 
• How your school uses its reporting fees will be reviewed during Compliance Surveys conducted at your school.

85/15 Rule

THE 85/15 PERCENT RATIO REQUIREMENT

On August 26, 2022, the President signed into law PL 117-174, "Ensuring the Best Schools for Veterans Act of 2022" modifying the law known as 85/15 Rule. Subsequently, approved Rule 56 brings key changes to 85/15 requirements for enrollment periods beginning on and after January 16, 2025.

For current comprehensive guidance on the 85/15 rule please see 85/15 FAQs page  85/15 Frequently Asked Questions - Education and Training (va.gov) ] 

What is the 85/15 Ratio Requirement?

The 85/15 Ratio Requirement prohibits paying Department of Veterans Affairs (VA) benefits to students enrolling in a program when more than 85% of the students enrolled in that program are having any portion of their tuition, fees, or other charges paid for them by the school or VA.

If the ratio of Supported Students to Non-Supported Students exceeds 85% at the time a new VA beneficiary student enters or reenters (such as after a break in enrollment), the student cannot be certified to receive benefits in the program. Note: See the Specific Situations to take into consideration section below for exceptions.

Does This Apply to All Facilities?

The provisions of the 85/15 Ratio Requirement do not apply to:

1. A farm cooperative training course (38 USC 3680A [d] [2] [B] and 38 CFR 21.4201 [c] [1] [i]). 
2. Flying clubs (also known as "aero clubs") operating under regulations of the Armed Forces as "non-appropriated sundry fund activities” (38 CFR 21.4201 [c] [1] [ii]).
3. Facilities which do not charge tuition, fees, or other charges (routinely this means that sites approved for On-The-Job [OJT] or Apprenticeship [APP] training) (38 USC 3680A [d] [1]).

NOTE: Any other type of school or training facility that does not assess tuition, fees, or other charges are not monitored for 85/15 purposes and are not required to calculate or report 85 percent enrollment ratios.

35% Exemption from Routine 85/15 Ratio Reporting

What is a 35% Exemption?

A school may request an exemption from routine 85/15 reporting if the total number of VA beneficiaries enrolled at the school is less than or equal to 35% of the total student enrollment.

Important: The 35% Exemption is based on total student enrollment at the school versus enrollment of students receiving VA funding and is calculated without regard to full-time equivalency. Each student enrolled is counted as one (01) student. This is different than the 85/15 ratio calculation, which is based on supported students versus non-supported students, and which is calculated based on full-time equivalency (FTE). See additional information below for definitions of supported and non-supported students and FTE.

Example: 100 total students are enrolled at a school. Of these 100 students, 25 are receiving VA funding. Divide the number of VA students by the total students enrolled (25 ÷ 100 = .25) and the calculation for this school is 25%. This school qualifies for a 35% exemption request, as less than 35% of the students enrolled are receiving VA funding.

How does My School Request a 35% Exemption?

Each approved branch campus that has both administrative capability and a VA Facility Code must submit their own 35% exemption request separate of the main campus.

Calculations for branch campuses without administrative capability and Extension Campuses (facility code identified by an “X” in the 3^rd position) should be included in the calculation for the Main or Branch campus from which it receives administrative support.

To request a 35% exemption from routine reporting, a school must complete VA Form 22-10216 (35% Exemption Request From 85/15 Reporting Requirement) and upload it to the Education File Upload Portal.

Accredited schools approved under 38 CFR 3672: 

• A completed VA Form 22-10215 (Statement of Assurance of Compliance with 85 Percent Enrollment Ratios) does not have to be completed or uploaded with the 35% exemption request.
• Once approved for a 35% Exemption, an accredited school is not required to calculate, maintain, or periodically report 85/15 calculations to the VA.

Note: Accredited schools selected for a compliance survey will still need to furnish 85/15 reports for any enrollment periods beginning before August 26, 2022, or before the date of their 35 percent exemption, whichever date is later.

Nonaccredited schools:

• A completed VA Form 22-10215 (Statement of Assurance of Compliance with 85 Percent Enrollment Ratios) must be uploaded with the 35% exemption request.

• Nonaccredited schools approved for a 35% Exemption must still comply with the 85/15 Ratio Requirement. A nonaccredited school with a 35% Exemption must still:

1. Continue to monitor enrollment data and submit routine reports on any programs excluded from the 35 percent exemption.
2. Report to the ELR of jurisdiction when the overall population of VA beneficiaries exceeds 35% of the total enrollment.
3. Monitor each approved program for compliance with the 85% Ratio Requirement.
4. Provide 85/15 calculations at the request of a VA official or an SAA official.

If during routine monitoring, a nonaccredited school with a 35% Exemption identifies a program exceeding 85% enrollment of supported students, school officials must submit an 85/15 report to VA via the Education File Upload Portal. That non-compliant program is excluded from the 35 percent exemption, and routine reporting is required until such time as it is again compliant with the 85/15 rule.

When do Approved 35% Exemptions Expire?

All 35% exemptions expire 24 months after date of issue. Schools must submit a new VA Form 22-10216 (35% Exemption Request From 85/15 Reporting Requirement):

• No later than 30 days after the beginning of the first term for which the school wants the exemption to apply if the school is organized on a standard-length term basis: or

• No later than 30 days after the beginning of the first non-standard-length term for which the school wishes the exemption to apply if the school is organized on a non-standard-term basis.

Nonaccredited schools must include a completed VA Form 10215 (Statement of Assurance of Compliance with 85 Percent Enrollment Ratios) with their updated 35% exemption request.

 Supported and Non-Supported Students

If a student is receiving multiple types of aid and any of it is 'Supported', the student must be counted as a Supported Student.

Supported Students are:

• Any student receiving any amount of VA Education benefits under Title 38 or Title 10 (chapters 30, 31, 33, 35, 1606)
• Any student where the full amount of tuition, fees, and other mandatory charges has not been paid to the school prior to the reporting date (i.e., no later than 30 days from the start of a term or other enrollment period), unless the student is participating in a compliant institutionally funded payment plan and all the following apply:
  • The availability and requirements of the payment plan policy is published both on the school‘s website and in a dated hard copy file at every campus of the school.
  • The payment plan is available to any enrolled student interested in participating in such plans (although every student may not be guaranteed acceptance into such an installment plan).
  • The payment plan explicitly requires the student to pay the outstanding balance no later than 180 days after the end of the applicable term, quarter, semester, or other enrollment period.
  • The school's policy requires that the balance must be paid in full before students can begin training for the next term or other enrollment period beginning on or after the expiration of the payment plan.

• Any student who is granted any waiver or forgiveness of tuition, fees, or other charges.
• Any student who receives an institutionally funded scholarship or grant.

Non-Supported Students are:

• Students not using GI Bill benefits under Title 10 or Title 38 (chapters 30, 31, 33, 35, 1606); AND
• Students not using institutional aid (Note: Institutional aid required under Federal, state, or municipal law such as Federal Work Study or out-of-state tuition waivers does not count as support. Voluntary institutional aid such as matching funds for the Workforce Innovation and Opportunity Act (WIOA) grant does); AND
• Student with no outstanding tuition, fees, and other mandatory charges owed to the school as of the reporting date (i.e., no later than 30 days from the start of a term or other enrollment period) UNLESS the balance is covered by a compliant institutionally funded tuition and fee payment plan that meets ALL of the following criteria:
  • The availability and requirements of the payment plan policy is published both on the school’s website and in a dated hard copy file at every campus of the school.
  • The payment plan is available to any enrolled student interested in participating in such plans (although every student may not be guaranteed acceptance into such an installment plan).
  • The payment plan explicitly requires the student to pay the outstanding balance no later than 180 days after the end of the applicable term, quarter, semester, or other enrollment period.
  • The school's policy requires that the balance must be paid in full before students can begin training for the next term or other enrollment period beginning on or after the expiration of the payment plan.

NOTE: The following types of aid are not institutional aid:

• A student receiving Title IV Department of Education aid.
• A student Tuition Assistance through the Department of Defense.

• Any student receiving non-institutional aid (scholarships, grants, or other types of aid offered by a third-party entity not affiliated with the school).

NOTE: If the student is receiving multiple types of aid and any of it is 'Supported', the student must be counted as a Supported Student.

Reporting Requirements for 85/15 to VA

How is the 85/15 Calculation Reported?

Schools WITHOUT an approved 35% exemption are required to report 85/15% calculations to VA for all approved programs for each cohort of students (i.e., semester, term, etc.). Note: Programs with fewer than 10 supported students are exempt from the 85/15 ratio and the only data required to be reported is the total number of students and total number of supported students in the program.

85/15 calculations must be submitted for each enrollment start date using VA Form 22-10215 (Statement of Assurance of Compliance With 85 Percent Enrollment Ratios). Schools may not generate and provide their own version of this form (i.e., excel documents or custom reports). The VA Form 10215 should be uploaded to the Education File Upload Portal. 

Approved branch campuses that have both administrative capability and a Facility Code must complete, and report 85/15 calculations separate of the main campus. Calculations for Extension Campuses (facility code identified by an “X” in the 3^rd position) and branch campuses without administrative capability should be reported under the associated Main or Branch campus which provides administrative support.

To calculate the 85/15% ratio, divide the number of supported students by the total number of students. Convert the result into a percentage. Do not round the result up or down. If the percentage is equal to or less than 85%, the program is compliant with the 85/15 Ratio Requirement. If this percentage is over 85%, then the program has violated the 85/15 Ratio Requirement. Note: Changes in enrollment which happen on or after the first day of term do not require the 85/15 ratio to be recalculated and resubmitted. Changes in enrollment that occurred prior to the start of the term (with an official or unofficial withdrawal) require a new 85/15 ratio calculation to be provided.

Calculating Part-Time Students:

Students are either part-time or full-time based on the total number of credits or clock hours pursued at the school.

The school must compute the full–time equivalency for part–time students based on the total number of credit or clock hours in which the student is enrolled for the term or enrollment period and add it to the number of full–time students, (e.g., take the total number of one-half time students, divide by two, and add the quotient to the number of full–time students.)

A student's overall rate of pursuit or overall training time determines whether they are counted as a full-time or part-time student under each approved concentration or track.

When Do I Report?

If the school is structured on a Standard-length Term, Quarter, or Semester Basis

85/15 calculations must be uploaded to the Education File Upload Portal no later than 30 calendar days after the start of the regular term (excluding summer terms), or before the beginning date of the next term (whichever is earlier).

If the school is structured on a non-standard-length Term Basis

For enrollment periods beginning on and after January 16, 2025, 85/15 calculations must be uploaded to the Education File Upload Portal no later than 30 calendar days after the beginning of each enrollment period.

For example:

                             TABLE 1.01 DUE DATES FOR 85/15 SUBMISSIONS

Reporting Changes in Enrollment

Changes in enrollment which happen on or after the first day of term do not require 85/15 calculations to be amended and resubmitted for that enrollment period start date. These changes must be factored in for any subsequent overlapping enrollment start dates, however. If the 85/15 ratio report for a subsequent overlapping start is affected, it must be recalculated and resubmitted.  

Changes in enrollment where a student preregistered but never attended (with an official or unofficial withdrawal) do require 85/15 calculations to be amended and resubmitted to VA for that enrollment period start date. The 85/15 ratio report for any affected subsequent overlapping start dates must also be recalculated and resubmitted.

Specific Situations to Take into Consideration

Chapter 31 and Chapter 35 students

Students receiving Veteran Readiness and Employment (chapter 31), or Survivors’ and Dependents’ Educational Assistance (chapter 35) benefits must be counted as Supported Students for determining a program’s compliance with the 85/15 Ratio Requirement, but students receiving these specific benefits can be certified for benefits, even if the program is in violation of the 85/15 Ratio Requirement.

Students who have not declared a major

The school must count students who have not declared a major, together in a separate category. Students must declare a major at the time specified by the school, but in no event may the student be certified beyond his or her sophomore year unless a major is declared. 

Students in remedial and deficiency courses

The school must count students in a remedial or deficiency course with the other students in their declared majors or certificate courses. If they have not declared a major or selected a certificate course, the school must count them with other students who have not declared a major or selected a certificate course. 

Calculating Double Majors, Multiple Concentrations or Dual Degrees

Students enrolled in double majors, multiple concentrations, dual degrees, or dual objective programs must be counted for each major, concentration, degree, or program in which they are enrolled (this is true for both Supported and Non-Supported Students) at their applicable full or part-time equivalency during the term. Students enrolled in Dual Degrees or dual objective programs approved by the State Approving Agency (SAA) as one combined program will be counted only under that one approved program.

Example 1: A full-time student is receiving Post 9/11 GI Bill (chapter 33) benefits and is majoring in both Biology and Chemistry. For 85/15 Ratio Requirement, this student would count as a full-time Supported Student for both the Biology and Chemistry programs.

Example 2: A student is completely self-paying for their schooling and is majoring in French, Latin, and Spanish. For 85/15 Ratio Requirements, this student would be reported as a Non-Supported Student for all three majors in which they are enrolled at their applicable full or part-time equivalency during the term. This requirement is similarly true for concentrations/tracks.

Example 3: A student is receiving Post 9/11 GI Bill (chapter 33) benefits and is majoring in Aviation Management (which has a flight component). The school would list on the VA Form 10215 (Statement of Assurance of Compliance with 85 Percent Enrollment Ratios):

Aviation Management – Flight Track

Aviation Management – Non-Flight Track

This student as a Supported Student in the Aviation Management – Flight Track.

Non-Compliance with 85/15 Ratio Requirement

If the 85/15 Ratio Requirement is exceeded in a program:

1. The ELR will inform the school by letter that all certifications for new VA beneficiary students enrolling in the program suspended for 85/15 violation, are suspended, and inform the school to not submit enrollment certifications for VA beneficiary students enrolling or reenrolling on or after the effective date of the suspension. A copy of this letter will also be submitted to the SAA of jurisdiction for informational purposes.

Note: Reenrolling is defined as a student with a gap in his or her training. Summer terms are not considered a break in enrollment.

1. Effective the date the ratio exceeded 85% of Supported Students, the Regional Processing Office (RPO) payment of enrollments and reenrollments for VA beneficiary students are suspended for the out of compliance program of Supported Students.
2. The school should continue to submit certifications for students who:
   • Are already enrolled in and are pursuing the program and
   • Have been previously paid for the program and
   • Have been continuously enrolled in the program, or
   • Are new or continuing and using chapter 35 or ch31 benefits

The school must continue to submit all changes in enrollments (reductions, terminations, etc.) for enrolled students.

How Does 85/15 Suspension Affect VA Students?

The Regional Processing Office (RPO) of jurisdiction will not authorize payment for benefits for VA students enrolling or reenrolling on or after the date the program exceeded 85% Supported Students, unless a student has been continuously enrolled in the same program without a break.

The exception to this rule is students receiving benefits under chapter 31 or chapter 35. VA students that enroll or reenroll and are using one of these benefits may continue to be certified and paid.

Lifting an 85/15 Suspension

Once a non-compliant program falls to at or below 85 percent supported student enrollment, a school may submit an interim report to have the 85/15 payment suspension lifted.

The school submits the interim reports to VA, who will lift the payment suspension to new enrollees effective the date the program became compliant.

Once the ratio is reestablished, the school must individually compute every enrollment of a VA beneficiary to ensure the 85 percent limitation is not again immediately exceeded until:

• The end of the term during which the payment suspension is lifted; or
• The end of the calendar quarter during which the ratio is reestablished, when the program is not operated on a term-basis.

Failure to Provide 85/15 Ratio Requirement Calculations

If a school is unwilling or unable to provide 85/15 Ratio Requirement calculations at the required reporting period or when requested by a VA official or SAA official:

• The SAA of jurisdiction will be informed that the school is in violation of 38 CFR 21.4209 (5).

Exemptions and Waiver of the 85/15 Ratio Requirement

Some schools might qualify for an exemption or waiver. Here is the list of exemptions and waivers that VA will consider:

1. 35% Exemption. The total number of students receiving VA benefits must be less than or equal to 35% of the total student enrollment.

An accredited school with a 35% Exemption is not required to calculate, maintain, or periodically report 85/15 calculations to the VA. See the 35% Exemption from Routine 85/15 Ratio Reporting section of this Handbook for more information.

A nonaccredited school, with a 35% Exemption is not exempt from complying with the 85/15 Ratio Requirement. A nonaccredited school with a 35% Exemption must still:

• Report to the ELR of jurisdiction when the overall population of VA beneficiaries exceeds 35% of the total enrollment.
• Monitor and maintain calculations for each approved program for compliance with the 85% Ratio Requirement.
• Provide 85/15 calculations at the request of a VA official or an SAA official

If during routine monitoring, a nonaccredited school with a 35% Exemption identifies a program exceeding 85% enrollment of supported students, school officials must submit the 85/15 report to VA via the Education File Upload Portal. That non-compliant program is excluded from the 35 percent exemption, and routine reporting is required, until such time as it is again compliant with the 85/15 rule.

2. Department of Defense Exemption. A school is exempt from all provisions of the 85/15 Ratio Requirement if it has a Department of Defense Exemption.

3. Education Service Waiver.  A program may be exempt from all provisions of the 85/15 Ratio Requirement if the school has requested and been granted an Education Service Waiver.

*Please see 85/15 FAQs page  85/15 Frequently Asked Questions - Education and Training (va.gov)  for more details on any of these Exemptions and Waiver for which you believe your institution may qualify.

Department of Education (ED) implemented changes to the 90/10 rule included in the American Recovery Plan Act which was signed into law in 2021.  These changes now require covered schools (for-profit institutions of higher education participating in Federal financial student aid (FSA)) to include funds provided for the purpose of paying tuition from all Federal educational assistance programs, including VA educational assistance, into their calculation of amounts received from federal funding sources.

Under ED rules effective January 1, 2023, covered schools must include the amount of VA educational assistance funds paid directly to the school (tuition payments under the Post-9/11 GI Bill (Chapter 33), as well as, monthly stipends paid directly to students under the Montgomery GI Bill (Chapter 30), Montgomery GI Bill – Selected Reserve (Chapter 1606), the Survivors’ and Dependents’ Educational Assistance (Chapter 35), and Veteran Readiness and Employment (Chapter 31).  Covered schools do not need to include chapter 33 monthly housing allowances (MHA) paid directly to students because those funds are not for the purpose of paying tuition.

VA Assistance to Schools

Historically, VA has provided to each approved facility a Vet Rep Listing which is issued weekly when payments are made during the pervious week to schools for Chapter 33 students.  Each Vet Rep Listing reflects the student’s name, the term dates, the amount and whether payment was for tuition, fees or yellow ribbon.

In addition, VA has provided to each approved facility a Pay List which is issued monthly when payments are made during the previous month to students for chapter 30, 35, and 1606 payments.  Each pay list reflects the student’s name, period covered, and the monthly rate awarded to the individual VA student.

VA will continue to issue the Vet Rep Listing and Pay list to all IHL and NCD facilities. 

School requests

For questions regarding the 90/10 rule and its requirements, please contact the U.S. Department of Education.  

If you are not receiving either the Vet Rep Listing or Pay List, please contact your State Approving Agency to ensure that we have your correct mailing address.

If information is needed regarding the 90/10 Rule for Veteran Readiness and Employment students, (Chapter 31), contact your Veterans Readiness and Employment (VR&E) point of contact.

Schedule of Expenditures of Federal Awards (SEFA)

The Schedule of Expenditures of Federal Awards (SEFA) is a financial statement that lists an organization's federal assistance expenditures for a fiscal year. It's a required supplemental schedule for organizations that are subject to the Single Audit Act, which applies to states, local governments, and Indian tribes. 

Although the Post /11 GI Bill is listed in the Assistance Listings found in SAM.gov, as are other GI Bill programs such as MGIB, each listed with different numbers, we cannot answer questions regarding how schools conduct their financial audits.  VA does not require these audits.  Please contact the State or Federal agency requiring these audits to obtain guidance on how or whether to report Post 9/11 GI Bill.

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Applications for Benefits

VA students can submit applications online at https://www.va.gov/education/how-to-apply/ If students don’t have access to apply online, they can call 1-888-442-4551 and ask that an application be mailed to them.

All VA students must file an application when they first start school before they can receive benefits. Students who have never received VA benefits must file an original application. There are multiple applications from which to choose.

Initial application to VA for Education benefits:

• Veterans or Service members applying for chapters 30, 32, 33, and 1606 use VA Form 22-1990;
• Dependents applying for chapter 35 or chapter 33 (Fry Scholarship) use VA Form 22-5490;
• Dependents requesting Transferred Post-9/11 GI Bill (chapter 33) use VA-Form 22-1990e;

Application to VA for Education benefits at a new school or training facility:

• Veterans or Service members who have received VA benefits previously, file a “Request for Change of Program or Place of Training” VA Form 22-1995
• Dependents using Transferred Post-9/11 GI Bill (chapter 33) who have received VA benefits previously, file a “Request for Change of Program or Place of Training” VA Form 22-1995
• Dependents using chapter 35 or chapter 33 (Fry Scholarship) who have received VA benefits previously, file a “Request for Change of Program or Place of Training” VA Form 22-5495

Address and direct deposit information must be kept current. Chapter 30 and 1606 students can use the WAVE system to update address and financial institution information. Links are on the “Main Menu” available after they log onto WAVE. 

In order for a student to either start or change direct deposit information, the student should have his or her account information handy. The following information is needed to set up direct deposit and can be found on checks and bank statements:

• Account number
• 9-digit bank routing number
• Type of account (checking or savings) 

If a student has chosen direct deposit, the student still needs to keep his or her address current because all other correspondence including award letters are mailed to the student's address. 

Students who cannot add their account information through WAVE should contact call 1-877-838-2778 to begin and change direct deposit.

eBenefits

Students are strongly encouraged to register and utilize eBenefits to assist them in the following:

• Obtaining up to date information on their educational entitlement
• Updating their Direct Deposit and personal contact information
• Downloading VA letters and personal documents
• Viewing the current status of their payments (both education and disability) 

Students can register for either a Basic or Premium account but must be enrolled in the Defense Enrollment Eligibility Reporting System (DEERS) to obtain either account type. 

Student Verification of Enrollment

Chapter 33 students must verify their enrollment status each month for enrollment periods which begin on or after August 1, 2021, to continue to receive their monthly housing allowance (MHA) and/or kicker payments. If a beneficiary fails to verify for two consecutive months, VA will withhold any additional MHA payments until verified by the student. The requirement for the student to verify their enrollment status means VA cannot accept statements from the school to verify the enrollment, as the current process for monthly certification for other education benefits allows.

This law will be implemented in phases. The first phase is for students enrolled at Non-College Degree (NCD) facilities who are in terms or programs beginning August 1, 2021, or later. Additional phases will include those enrolled in training at an Institutions of Higher Learning (IHL).

Non-chapter 33 verification of enrollment

The preferred verification method is WAVE, which includes features not in IVR. When students are awarded benefits, the award letter they receive describes WAVE and IVR. The earliest date students can verify their enrollment is the last calendar day of each month. 

WAVE allows students to verify their enrollment on the Internet. WAVE is on the Education Service website at W.A.V.E. Web Automated Verification of Enrollment . 

Students must be currently enrolled in an approved educational program and must have a current benefit award to use WAVE. The WAVE system permits students to perform a multitude of functions. For instance, students may:

• Verify that enrollment has not changed
• Report a change in enrollment
• Change mailing address
• Initiate or change direct deposit information
• View the enrollment period and monthly benefit amount
• View the remaining entitlement
• Sign up for a monthly e-mail reminder 

IVR allows students to “phone in” (1-877-823-2378) their monthly verification if there are no changes to the enrollment during the previous month. If there were changes in the enrollment the student must contact the VA Certifying Official to submit a change in status and the payment may be delayed until the reduction is processed.

Licensing and Certification Tests - chapters 30, 32, 33, 35, 1606 (38 CFR 21.4268) 

VA can reimburse the cost of approved licensing and certification tests. Students are reimbursed the cost of the test, not to exceed the approved cost of the test or $2,000. Benefits can be paid for tests that are not passed, for tests retaken if not passed, and for tests required to be recertified or to renew a license.

Students must be eligible for benefits to receive test reimbursement. They must have remaining entitlement and their delimiting date must not have passed. 

Information about test fee reimbursement can be found on our website at http://www.benefits.va.gov/gibill/licensing_certification.asp. The page includes a Search for Tests link where you can find all approved licensing and certification tests. 

VA students can apply for test fee reimbursement by completing and submitting a VA Form 22- 0803, “Application for Reimbursement of Licensing or Certification Test Fees”. 

The student must attach a copy of the test results to the application. If test results are not available, a copy of the license or certification and a payment receipt must be attached. Fee reimbursement can be paid for each test for which reimbursement is claimed and the required documents are submitted.

Preparatory Courses for Licensure and Certification Tests (Public Law 116-154, section 5).  Effective August 1, 2021, a student entitled to reimbursement under chapter 33 or chapter 35 for a licensing or certification test will also be entitled to payment for a corresponding covered preparatory course. This preparatory course must be approved by the SAA. Students can apply for preparatory course reimbursement by submitting VA Form 22-10272.  Verification of Enrollment from the Prep Course provider and a copy of the payment receipt must be included.

National Tests - chapters 30, 33, 35, 1606

VA students can be reimbursed for all required (mandatory) fees charged for national admission tests and national tests for college credit.

Complete information for applying for reimbursement is available at http://www.benefits.va.gov/gibill/national_testing.asp. 

A list of all approved national tests and approved charges can be found through the following link: http://inquiry.vba.va.gov/weamspub/buildSearchNE.do. 

EDUCATION BENEFIT PROGRAMS 

General and detailed descriptions for each program are online at http://www.benefits.va.gov/GIBILL/comparison_chart.asp. This website also provides a comprehensive comparison among VA approved education training facilities. 

NOTE: Students who may be eligible for education benefits should submit an application. Students should not delay submission while waiting on additional information or supporting documentation (DD214, NOBE, etc.). Even if someone appears ineligible, VA will review his or her application and officially deny or grant benefits..  

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CHAPTERS 30, 33, 1606, and 35

The most current education pay rates for each benefit can be found on the GI Bill® Website. http://www.benefits.va.gov/GIBILL/resources/benefits_resources/rate_tables.asp

PL 115-48, The Harry W. Colmery Veterans Educational Assistance Act of 2017, amends Title 38, United States Code, to make improvements in the laws administered by VA. Among those improvements, Section 107 and 501 significantly alters the administration of payment of a monthly housing stipend under the Post-9/11 GI Bill. 

PL 115-62, Section 501, provided technical corrections to the Harry W. Colmery Veterans Educational Assistance Act of 2017. 

For training beginning on or after August 1, 2018, the Monthly Housing Allowance (MHA) payment amounts are based on the Department of Defense’s Basic Allowance for Housing (BAH) rates for an “E-5 with dependents” for the zip code of the campus or training location where student has a majority of classes. 

NOTE: For training beginning prior to August 1, 2018, the MHA payment amounts are based on the Department of Defense’s Basic Allowance for Housing (BAH) rates for an “E-5 with dependents” for the zip code of the school. 

BAH rates can be found at the following website: https://www.defensetravel.dod.mil/site/bah.cfm 

MHA amounts are prorated based on a student’s benefit level and may be further reduced based on the rate of pursuit (RoP) rounded to nearest multiple of 10. Benefits are only payable when the RoP is more than 50%, and the student is not on active duty.  

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 For additional information about Chapter 33, visit the GI BILL website: 

http://www.benefits.va.gov/gibill/post911_gibill.asp 

Eligible Individuals (38 CFR 21.9520)

Generally, an individual who served a minimum of 90 days on active duty after September 10, 2001, will be eligible for educational assistance under the Post-9/11 GI Bill. Active duty served as a member of the Armed Forces or as a result of a call or order to active duty from a reserve component under section 688, 12301(a), 12301(d), 12303(g), 12302, or 12304 of Title 10 is qualifying active duty service. 

Effective October 1, 2011, VA began paying benefits to members of the Army National Guard and Air National Guard for qualifying service under title 32. The following service may qualify:

• Full time service in the National Guard for the purpose of organizing, administering, recruiting, instructing or training
• Activations in support of a national emergency under section 502(f) of Title 32 

Benefits are payable retroactively to August 1, 2009, the effective date of the Post-9/11 GI Bill® program with qualifying section 502(f) of Title 32 service. 

Effective December 31, 2011, VA began paying benefits to members of the United States Coast Guard Reserve for service under section 712 of Title 14.  Any service performed on or after December 31, 2011, shall be creditable. 

Effective August 1, 2018, VA began paying benefits to members of the Armed Forces called or ordered to active duty from a reserve component under Section 12301(h), 12304A, and 12304B of Title 10. Benefits CANNOT be paid retroactively with this service. 

Effective August 1, 2018, VA began paying benefits at the 100% benefit level to individuals awarded the Purple Heart for service after September 10, 2001. Benefits CANNOT be paid retroactively with this service. 

The following periods of active duty service are excluded:

• ROTC under 10 U.S.C. 2107(b)
• Service academy contract period
• Service terminated due to defective enlistment/agreement
• Service used for loan repayment 

Period of Eligibility (38 CFR 21.9530)

Generally, if release from active duty was before January 1, 2013, individual’s eligibility to use chapter 33 benefits expires 15 years from the date of the last discharge or release from active duty of at least 90 consecutive days. The Harry W. Colmery Veterans Assistance Act of 2017 eliminates the 15 year limitation to use the Post-9/11 GI Bill benefit in the case of Veterans who meet the following requirements: 

• Last discharge or release from active duty of at least 90 consecutive days was on or after January 1, 2013
• Honorably discharged from the Armed Forces
• Released from the Armed Forces with service characterized as honorable and placed on the retired list, temporary disability retired list, or transferred to the Fleet Reserve or the Fleet Marine Corps Reserve
• Released from the Armed Forces with a service characterized as honorable for further service in a reserve component 

Children of deceased Service members who become entitled to the Post-9/11 GI Bill on or after January 1, 2013 and all spouses using the Fry Scholarship no longer have a time limitation to use their benefits. 

Chapter 33 Entitlement (38 CFR 21.9550)

Individuals eligible under chapter 33 who have only one qualifying period of active duty are generally entitled to 36 months of educational assistance. Individuals are generally limited to a maximum of 48 months of entitlement when using benefits under two or more programs. 

Individuals eligible for benefits under the National Call to Service program and chapter 30, 31,  32, 33, 34, 35, or 36 of title 38; or Chapter 1607, 1606, or section 903 of title 10; or the hostage relief act of 1980; or the omnibus diplomatic security and antiterrorism act of 1986 may not receive assistance under two or more such programs concurrently. 

Elections

Historically, students eligible for chapter 30 or 1606, had to relinquish a benefit to receive chapter 33. Students eligible for more than one benefit only had to relinquish one benefit to receive chapter 33. 

Veterans who have two or more qualifying periods of active duty, may now receive up to 48 months of entitlement if eligible for Post-9/11 GI Bill and either Montgomery GI Bill Active Duty (MGIB-AD) or Montgomery GI Bill Selected Reserve (MGIB-SR). Veterans who have two or more qualifying periods of active duty no longer have relinquish a benefit and their chapter 33 benefits will not be restricted to only the months of entitlement remaining under chapter 30 if they switch to chapter 33.

Please note the following: 

• Reenlistments are considered separate periods of service, but enlistment extensions are not
• Two benefit chapters cannot be used at the same time
• Benefit chapters can be used in any order and the student can switch back and forth for each enrollment period
• Benefits cannot exceed 36 months under any one benefit chapter or exceed a total of 48 months if more than one chapter is used

What if students have questions?

VA is working to update beneficiary records to reflect remaining entitlement without any beneficiary action required. VA will provide beneficiaries with instructions if they need to take any action. Beneficiaries should not take action unless notified by VA.

VA is committed to providing impacted Veterans and our other stakeholders with regular updates about VA’s effort to implement these new changes through email and our Post-9/11 GI Bill Facebook page.

Length of Service Percentage (38 CFR 21.9640)

Eligible students receive a percentage of the chapter 33 benefit for tuition and fees, monthly housing allowance, and book stipend based on their length of service. The percentage is determined by the student’s aggregate active duty service after September 10, 2001. All creditable active duty and qualifying call-up service are combined to determine the aggregate service. 

Length of service percentages are described in the following table: Effective 8/1/2020 the last two tiers changed. 40% was eliminated.

(1) Includes entry level and skill training.

(2) Excludes entry level and skill training.

(3) If the service requirements are met at both the 80 and 70 percentage level, the maximum percentage of 70 must be applied too amounts payable. 

Education and Training Available Under chapter 33

Effective August 1, 2009. All programs had to be offered by a degree-granting institution of higher learning (IHL) and approved for chapter 30. Approved programs included undergraduate degrees, graduate degrees, professional degrees, and non-degree programs approved at the IHL. Additionally, tutorial assistance and reimbursement for one licensing or certification test were available under chapter 33. 

Students who elected chapter 33 and relinquished chapter 30, or 1606 received benefits for approved programs not offered by an IHL (non-degree programs, flight training, correspondence courses, apprenticeship/on-the-job training, preparatory courses, and national tests). These students were paid for these programs as if they were still receiving benefits under the relinquished benefit, but their entitlement was charged under chapter 33. 

Effective October 1, 2011. VA began paying Post-9/11 GI Bill® benefits to individuals pursuing the following approved non-IHL non-degree programs.

• Non-College Degree (NCD) schools
• On-the Job Training (OJT) and Apprenticeship programs
• Flight Programs
• Correspondence courses 

Individuals pursuing an approved program at an NCD school received the lesser of the following:

• The actual net cost for in-state tuition and fees after the application of any waiver, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965], or $17,500 for the academic year beginning on August 1, 2011.
• The amount of the yearly cap has been adjusted each year based upon a Cost of Living Adjustment (COLA)and is subject to proration based upon benefit level. 

(Chapter 33 Benefit Payments38 CFR 21.9640)

Tuition and Fees

Tuition and fees are paid directly to the school on behalf of the student when the school’s enrollment certification is processed. Tuition and fees are prorated by the student’s benefit level. 

Effective August 1, 2009, this was limited to the highest per credit hour tuition and the maximum fees charged by a public institution for undergraduate training in the state where the student was enrolled. State caps for tuition and fees are located at: http://www.benefits.va.gov/GIBILL/resources/benefits_resources/rate_tables.asp.

Students on active duty received the total amount of tuition and fees, not limited to the state maximum, or the amount of charges that exceeded the amount paid by the military’s federal tuition assistance. 

Effective August 1, 2011, the amount of tuition and fees payable for programs offered by IHLs changed. The in-state, undergraduate state maximum amounts for tuition and fees no longer apply.

• U.S. Public Schools: The actual net cost for in-state tuition and fees after the application of any waiver, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965], provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees
• Private and Foreign Schools: The lesser of the actual net cost for tuition and fees after the application of any waiver, scholarship, aid, or assistance [other than loans and funds provided under section 401(b) of the Higher Education Act of 1965], provided directly to the institution and specifically designated for the sole purpose of defraying tuition and fees, or up to the academic year cap. 

The amount of the yearly cap will be adjusted each year based upon a Cost of Living Allowance (COLA) and is subject to proration based upon benefit level. Fees That Are Permissible to be Certified as part of “Tuition and Fees.”

Only fees that are both mandatory and assessed before a student can attend a program are certifiable by schools. The only exceptions are tuition, or room and board fees which are never certifiable. See 38 CFR § 21.9505. .

Permissible mandatory charges are those assessed by a school (other than tuition, or room and board) that are necessary for the pursuit of an approved program of education and are the same amount for all students (GI Bill and non-GI Bill alike).  Mandatory fees may be for items, such as books, that could possibly be obtained from a source other than the school, as long as the fee is assessed to all students without exception. Fees that are optional, or that can be waived, are not mandatory and cannot be certified to VA.

Examples of mandatory fees can include, but are not limited to, health premiums, freshman fees, graduation fees, and lab fees, kit charges, supplies, equipment, or certain study materials.

Important: Health insurance premiums are specifically mentioned in the regulations governing the Post 9/11 GI Bill and are therefore treated differently than other fees that can be waived. If health insurance is mandatory for all students at an institution and the fee can only be waived if a student has their own health insurance, the fee may be certified for those students who do not have health insurance. However, please note the following:

• If a student has their own health insurance but fails to provide proper documentation or misses the deadline to have the fee waived, the institution cannot certify the fee to VA.
• If a student opts out and the fee is waived after certification, the certification must be amended to remove the fee.
• If a student has spouse or family coverage, or selects a premium plan for themselves under the insurance plan through the institution, only the portion of the basic fee covering the student can be certified. 

Travel costs can be included as part of mandatory tuition and fees reported to VA only if the travel fee is directly billed on the student’s ledger. The fee must be mandatory and the same amount for all students, regardless of their proximity to the location of the school.

Any travel costs paid on the student’s behalf by the school or an affiliated associate of the school outside of the parameters referenced above would be considered a scholarship that would impact the net tuition and fees reported to VA, in which case such costs must be deducted from the tuition and fees amount reported to VA. 

NOTE: Generally, fees may not include expenses to satisfy enrollment or admission pre-requisites (costs associated with program enrollment requirements that a student must complete prior to admission or enrollment; out-of-pocket expenses paid by the student to qualify for admission, e.g., permits to operate training equipment, drug screening, background checks, etc.).  However, such expenses may be certified as fees if a school does not require students to complete all admission requirements prior to enrolling and starting training, but only if the fees are charged equally to all students regardless of whether some students may, or may not, have already completed those requirements prior to admission (i.e., the fee must be mandatory for all students without exception).  

Important to note: If a student cannot continue a program due to not completing an admission requirement after starting training, all tuition and fees paid by VA will be considered school debts. The SCO must take the following two actions (if enrollment certification has already been submitted to VA when it’s determined the student failed to meet admission requirements):

1. Submit an amended certification with zero tuition and fees. Amended tuition and fees are applied to the entire enrollment period. The full tuition and fees payment will become school debt. 
2. Terminate the certification effective the student’s last date of attendance. The student will be entitled to a prorated housing allowance and books & supplies payments through the last date of attendance. 

Example One:  A nurse training program requires all students to have a state background check, but the school allows students to enroll in the course with the condition that the background check be completed before working with patients. In this case, the school may include the background check cost as a mandatory fee. However, if a student fails to obtain the background check and, as a result, is unable to continue the program, the school will be responsible for reimbursing VA for any tuition and fees paid while the student was enrolled. Additionally, the fee must be applied uniformly to all students regardless of whether some students already had the background check prior to admission and enrollment. Otherwise, the fee would not be mandatory for all students, and the school would not be permitted to include it as a mandatory fee.

Example Two: A commercial driver’s license (CDL) training program requires that all students have a Department of Transportation (DOT) issued permit to operate commercial trucks to complete the mandatory driving portion of the training. The school allows students to enroll in the program without having first obtained this necessary permit to operate commercial trucks. In this case, the school may include the DOT permit cost as a mandatory fee. However, if a student fails to obtain the permit and, as a result, is unable to continue the program, the school is responsible for reimbursing VA for any tuition and fees paid while the student was enrolled. Additionally, to be a certifiable fee, this permit fee must be applied uniformly to all students whether or not some students had their permit prior to admission and enrollment.  

If you are not sure if a specific fee meets the needed criteria to be considered mandatory, you should contact your Education Liaison Representative for guidance prior to certifying the fee.

Monthly Housing Allowance

Effective August 1, 2018. A MHA is paid directly to the student at the beginning of each month for the previous month. MHA will only be paid while the student is not on active duty (e.g. MHA payments will stop immediately on the day a member enters on active duty or will begin the day after when a member is released from duty when enrolled and otherwise eligible). The housing allowance is prorated by the student’s length of service percentage (e.g. length of service determines benefit level) and the student’s rate of pursuit (RoP). The MHA paid is based upon the Department of Defense’s Basic Allowance for Housing (BAH) for an “E-5 with dependents” and the zip code of the campus or training location where the student physically attends the majority of their courses. More information on monthly housing allowance benefits can be found on the GI Bill® website. 

For students affected by Colmery section 501 of PL 115-48 (First used chapter 33 on or after January 1, 2018) will receive the capped Department of Defense (DoD) rate based on the physical campus location where he or she is taking the majority of their credit hours.  

Students not affected by section 501 will continue to receive the uncapped VA MHA rates. 

Housing Rate Decrease, Rate Protection

Section 403(b)(6) of title 37 requires the DoD to “grandfather”, otherwise known as rate protection, the basic allowance for housing (BAH) for members who retain uninterrupted eligibility for the BAH (even if the housing rates decrease). Similar to DoD’s grandfathering rule, VA will protect the MHA for individuals who are continuously enrolled. If housing rates decrease, a student will be paid the same monthly housing allowance rate for as long as he or she remains continuously enrolled at the same school (same facility code).  Continuously enrolled means no more than a 6-month break in training in enrollment. 

RATE PROTECTION: Effective for training beginning on or after August 1, 2018, VA will protect the MHA rate for certain individuals.  Rate protection will be applied for monthly housing allowance payments until one of the following scenarios breaks that protection. 

• A change to the physical location where the student is taking the majority of their classes
• A gap in housing payments six months or greater for a reason other than active duty service
• Active duty service may extend rate protection 

NOTE: Certain students may have been paid higher MHA rates than authorized during the delayed systems implementation of Colmery sections 107 and 501, however, overpayments to students will not be recouped by VA.  All students will be notified individually if they were overpaid as a result of sections 107 or 501. 

Rate of Pursuit and the Monthly Housing Allowance

Rate of pursuit (RoP) applies specifically to chapter 33. It differs from training time, which is used for all other chapters. Schools certify actual credit. VA calculates RoP by dividing the number of credit (or credit hour equivalents) being pursued by the number of credits considered to be full-time by the school. The resulting percentage is the student’s RoP. 

Examples: If full-time is12 credits, then RoP:

• 6 credits (or credit equivalents) is 50% (6 ¸ 12 = 50%)
• 7 credits (or credit equivalents) is 58% (7 ¸ 12 = 58%) 

The MHA is paid if the student’s RoP is more than 50%. Rate of pursuit determines whether a student receives or doesn’t receive the housing allowance. If pursuit is more than 50% the student receives the housing allowance. If the RoP is 50% or less, then the student doesn’t receive the housing allowance.  (Active duty personnel receiving chapter 33 benefits or spouses of active duty personnel receiving Transfer of Entitlement (ToE) benefits are not eligible for the housing allowance). 

Effective August 1, 2011. The amount payable for the MHA changed as follows:

U.S. In-Residence: The applicable Basic Allowance for Housing (BAH) rate is multiplied by the RoP rounded to the nearest multiple of 10. 

Foreign In-Residence: The national average of all Basic Allowance for Housing (BAH) rates will be multiplied by the RoP rounded to the nearest multiple of 10. 

Example 1: An individual at a RoP of .54 will receive 50% of the applicable MHA rate (subject to the eligibility tier level) 

Example 2: An individual at a RoP of .85 will receive 90% (subject to the eligibility tier level) 

NOTE: Basic eligibility requirements for MHA benefits (e.g. Veterans with a RoP >.50) remain unchanged.

The amount payable for the MHA for any academic year (beginning on August 1) will be based upon the BAH rates effective on January 1 of that year. This means that MHA rates for chapter 33 awards will change effective August 1 of each year, and not on January 1. 

NOTE: Individuals paid housing benefits prior to January 1, 2018, will be paid the VA rate which is higher than individuals affected by Section 501 of the Colmery Act (See Education Rate Tables). 

Effective August 1, 2011. Interval pay is eliminated except for periods where a school is closed due to an Executive Order of the President or due to an emergency situation. 

• These payments are limited to 4 weeks in any 12-month period

This applies to all VA education benefit programs

Monthly Verification of Enrollment (PL 116-315, section 1010)

Effective August 1, 2021, students enrolled in an Non-College Degree (NCD) facility will be required to monthly verify their enrollment status through text messaging or a call to the 1-888-442-4551 (GI-BILL1) toll free line.

Section 1010 has required all recipients of chapter 33 monthly housing allowances to verify their enrollment status each month.  VA has determined the first phase of this verification will affect students enrolled at a NCD facility. Other chapter 33 students will be required to participate in this process by December 2021.

Verifications must be received through a text messaging solution known as Twilio. Students enrolled in a program which begins on or after August 1, 2021 will either receive an option to opt into the text messaging process to verify their attendance monthly OR they will be required to contact the 1-888-442-4551 toll free number monthly to verify.

Greater details regarding this monthly verification process is available on the gibill.gov website

Schools cannot verify for students. The student must verify they continue to be enrolled by stating “yes” or if not enrolled as stated, should respond as “no” and the VCEs will contact the schools to determine where and when the change occurred.

This monthly verification process is ONLY for chapter 33 students. This differs from the monthly certification process non-chapter 33 students are required to provide to release their monthly stipend.

Chapter 33 students must respond monthly to verify their enrollment. However, their MHA payments will continue to be released until two consecutive months have elapsed without any verification from the student. Additional guidance regarding when a student has failed to validate for two consecutive months will be released prior to September 30, 2021.

Distance Learning and Housing Allowance (38 CFR 21.9505 and 38 CFR 21.4267)

Effective August 1, 2009. Students whose enrollment was exclusively distance learning training were not eligible for the MHA. If a student’s enrollment was both distance learning and resident training (standard classroom instruction) and pursuit was more than 50%, then the MHA could be paid for the period of residence training.

Effective October 1, 2011. Individuals only enrolled in distance learning courses were eligible for an MHA equal to 50% of the national average of all BAH rates. Rates are multiplied by the rate of pursuit (RoP) rounded to the nearest multiple of 10.

NOTE: Basic eligibility requirements for MHA benefits (e.g., students with a RoP greater than 50%) remain unchanged.

Information about certifying courses which combine residential and distance learning (hybrid) can be found in the When to Certify Courses As “In-Residence” on VA Enrollment Certifications section.

Books and Supplies Stipend

Effective August 1, 2009. The books and supplies stipend is a lump sum payment (each quarter, semester or term attended) paid directly to the student when the school’s enrollment certification is processed. The stipend is prorated by the student’s length of service percentage. The books and supplies stipend pays $41.67 per credit certified, up to 24 credits for the academic year (08/01/YY-07/31/YY). The start date of an enrollment period determines the academic year to which the enrollment period belongs. The maximum stipend is $1,000 per academic year. Active duty students are not eligible.

Effective October 1, 2011. Individuals enrolled in a degree program while on active duty are now eligible for the Books and Supplies stipend of up to $1,000.00 per academic year. The rules for calculating Books and Supplies payments are the same as those for Veterans.

Effective August 1, 2011.  Books and Supplies stipend for NCD Schools, Apprenticeship, and OJT programs in an amount equal to $83 for each month (prorated for partial months and benefit level) became available.

Yellow Ribbon Program (38 CFR 21.9700)

The Yellow Ribbon Program payment is paid directly to the school on behalf of the student when the school’s enrollment certification is processed.

The following are eligible for the Yellow Ribbon Program:

• Only individuals entitled at the 100% benefit level (and their eligible dependents) may receive Yellow Ribbon funding
  • Individuals who served at least 36 months or more on active duty
  • Individuals who served at least 30 continuous days on active duty, and were discharged due to service-connected disability
• Veterans or active-duty service members who received the Purple Heart for service after September 10, 2001, are eligible effective August 1, 2018
• FRY Scholarship recipients are eligible effective August 1, 2018
• Foreign schools can participate effective August 1, 2021
• Active-duty service members (and their eligible spouses using transferred entitlement) are eligible effective August 1, 2022

The following are not eligible for the Yellow Ribbon Program:

• Individuals entitled to Chapter 33 at less than the 100% benefit level
• Fry Scholarship recipients who attended terms that began prior to August 1, 2018
• Active Duty service members who attended terms that began prior to August 1, 2022
• Spouses of Active Duty servicemembers using Transferred Entitlement who attended terms that began prior to August 1, 2022

Effective August 1, 2018. Fry Scholarship recipients and Veterans or Active Duty service members with eligibility based upon being awarded the Purple Heart for service after September 10, 2001, are eligible for the Yellow Ribbon Program. 

Effective August 1, 2021. Foreign schools may be considered as participants for the Yellow Ribbon Program.

Effective August 1, 2022. Active Duty service members (and their spouses using transferred entitlement) who attended terms that began prior to August 1, 2022  

The Yellow Ribbon Program allows schools to enter into an agreement with VA to fund the tuition and fees cost that exceeds the basic tuition and fees amount payable by VA. The Yellow Ribbon Program can provide additional funding to students whose tuition and fees exceeds the in-state, undergraduate cap (before August 1, 2011); or charges for out-of-state tuition, or charges in excess of the yearly cap for students enrolled in private institutions (after August 1, 2011). 

If a school participates in the Yellow Ribbon Program, VA will match each dollar the school contributes up to 50% of the difference between the basic tuition and fees amount payable by VA and the tuition and fee amount charged to the student. The combined school and VA contribution can’t exceed the tuition and fee amount charged the student.

The process begins with completing VA Form 22-0839. A comprehensive explanation can be found on the Yellow Ribbon Program website. 

Kickers and Additional Contributions

Effective August 1, 2009. Students eligible for a kicker under chapter 30 or 1606 may receive the kicker under chapter 33. The kicker will be prorated by the student’s rate of pursuit percentage and paid as a lump sum payment to the student when the school’s enrollment certification is processed.

Chapter 30 additional contributions ($600 Buy-up) are not payable under chapter 33. 

Effective October 1, 2011. Eligible individuals receive payments for chapter 30 and 1606 kicker payments on a monthly, rather than a lump sum, basis. 

Kickers will be paid regardless of rate of pursuit or eligibility for the MHA. The applicable full-time kicker rate will be multiplied by the rate of pursuit rounded to the nearest multiple of 10. 

(Licensing and Certification Tests or National Tests38 CFR 21.9665)

Effective August 1, 2009. chapter 33 students may be reimbursed for one licensing or certification test. The reimbursement cannot exceed $2,000. The test must be approved for VA benefits. 

Effective October 1, 2011. Individuals may be reimbursed for multiple licensing and certification exams or for multiple national tests (e.g. SAT, GRE, LSAT, etc.). The maximum payable per licensing or certification exam is $2,000. There is no maximum for national exams.  Entitlement shall be pro-rated based on the amount of the fee charged for the test relative to the rate for one month payable set each academic year (See Education Rate Tables ). The test must be approved for VA benefits. 

The amount equivalent to one month of entitlement is adjusted each year based upon a COLA. 

Effective August 1, 2018. Entitlement charged for all tests taken under Chapter 33 will be prorated based on the actual amount of the fee charged for the test relative to the rate of one month. Prior to August 1, 2018, a claimant was charged one month of entitlement for all Licensing and Certification and National Tests, regardless of the amount of reimbursement. 

Under the other benefit programs (Chapter 30, 35 and 1606) entitlement is and has always been charged by dividing the amount paid by the full-time monthly institutional rate payable during the fiscal year in which the test was taken.

Effective August 1, 2021. An individual entitled to educational assistance for licensing, certification or national tests under chapter 33 or chapter 35 will also be entitled to payment for a corresponding covered preparatory course program. This preparatory course must be approved for VA education benefits.