PAGENO="0001" (\t~ `~f 98th Congress 2d Session SENATE COMMITTEE PRINT NO. 30 IMPLEMENTATION OP THE POST-VIETNAM ERA VETERANS' EDUCATIONAL ASSISTANCE ACT OF 1977 AN ANNUAL JOINT REPORT PREPARED BY THE VETERANS' ADMINISTRATION AND TIlE DEPARTMENT OF DEFENSE (Pursuant to Section 1642 of Title 38, TJnited States Code) SUBMITTED TO THE COMMITTEE ON VETERANS' AFFAIRS UNITED STATES SENATE :OOL L~P~B~ ~L 08102 - Printed for the use of the Committee on Veterans' Affairs 66-396 0 (~f, p/~ (//~t ~ i~r /~--~cçm U.S. GOVERNMENT PRINTING OFFICE WASHINGTON : 1980 SEP 231980 Im ~: AUGUST 1, 1980 PAGENO="0002" COMMITTEE ON VETERANS' AFFAIRS `ALAN CRANSTON, California, Chairman HERMAN B. TALMADGE, Georgia ALAN K. SIMPSON, Wyoming JENNINGS RANDOLPH, West Virginia STROM THURMOND, South Carolina RICHARD (DICK) STONE, Florida ROBERT T. STAFFORD, Vermont JOHN A. DURKIN, New Hampshire GORDON J. HUMPHREY, New Hampshire SPARK M. MATSUNAGA, Hawaii (II) PAGENO="0003" Third Annual Report to Congress on the Post-Vietnam Era Veterans' Educati ii Assistance Program - Contents - Page Section 1642 of Title 38, United States Code ix Letter of Transmittal (Veterans~ Administration) xi Introduction xijj 1. Administration of the Program - Veterans Administration 1-1 1.1 Regulations 1-1 A. Status B. Interim Procedures 1.2 Maintenance of the Fund 1-4 A. Banking System B. Payment Processing Unit 1.3 Administration of Benefits 1-7 A. Changes in VA Forms and Publication of Information Pamphlet B. Areas of Concern 1.4 Progress to Date Regarding~ Participants! Contributors 1-11 1.5 Evaluation of the Program 1-15 111 PAGENO="0004" APPENDIX Page A. VETERANS ADMINISTRATION: Documentation A-i 1. Joint Veterans Administration and Department of Defense Regulations A-i 2. DVB Circular 20-77-25, Appendix D A-l0 3. DVB Circular 20-77-25, Appendix E A-il 4. DVB Circular 20-77-25, Appendix B, Change 4 A-15 5. DVB Circular 20-77-25, Appendix C, Revised, Change 5 A16 6. DVB Circular 20-77-25, Appendix A, Revised A-17 7. DVB Circular 20-77-25, Appendix F A-26 8. "VEAP package" A30 A. VA Form Letter 22-905 B. VA Form 22-8821, Application for Educational Assistance (For Post-Vietnam Era Veterans- Under Chapter 32, title 38, U.S.C.) C. VA Form 4-5281, Application for Refund of Educational Contributions (VEAP, Chapter 32, title 38, U.S.C.) D. VA Pamphlet 22-79-1, Summary of Educational Benefits Under the Post-Vietnam Era Veterans Educational Assistance Program-VEAP 9. VA Form 22-882lp, Application For Predischarge Education Program (PREP) (Under Chapter 32, title 38, U.S.C.) A-49 iv PAGENO="0005" LETFER OF TRANSMITTAL (DEPARThIENT OF DEFENSE) . - 2-i PREFACE 2-ui LIST OF TABLES AND FIGURES . . V1 INTRODUCTION AND SUMMARY . . 1 Chapter 1. THE STATUS OF VEAP DURING 1979: SUMMARY OF SERVICE COMMENTS 1-1 1.1 Outreach Activities 1-1 1.2 Reported Problems 1-3 1.3 Other Service Comments 1-4 Chapter 2. STUDY OF VEAP PARTICIPATION 2-1 2.1 Data Sources and Definitions 2-1 2.2 VEAP Participation Through 1979 2-2 2.3 VEAP Suspensions and Disenrollments . . . 2-14 2.4 Summary and Conclusions 2-18 Chapter 3. THE VEAP INCENTIVE ("KICKER") TEST RESULTS 3-1 3.1 Test Description, 3-1 3.2 Test Results 3-3 3.3 1980 Follow-Up .~ 3-6 Chapter 4. PRELIMINARY RESULTS FROM THE DoD VEAP SURVEYS 4-1 4.1 Description and Methodology 4-1 4.2 Preliminary Analysis of Survey Results . . 4-2 4.3 Preliminary Conclusions 4-20 Chapter 5. CONCLUSIONS AND RECOMMENDATIONS 5-1 APPENDIX: DOD VEAP SURVEY FORMS A-l V PAGENO="0006" LIST OF-TABLES AND FIGURES Page Tables 1 Enlisted Personnel Eligible to Enroll in VEAP by Year of Entry into Military Service and Military Service 2-2 2 Year of First VEAP Contribution (VEAP Starts) by~Year of Entry into Military Service for All Enlisted VEAP Participants Through 1979: All Services Combined 2-3 3 Year of First VEAP.Contribution (VEAP Starts) by Year of Entry into Military Service for All Enlisted VEAP Participants Through 1979: 2-4 4 Year of First VEAP Contribution (VEAP Starts) by Year of Entry into Military Service for All Enlisted VEAP Participants Through 1979: Na~ 2-4 5 Year of First VEAP Contribution (VEAP Starts) by Year of Entry into Military Service for All Enlisted VEAP Participants Through 1979: Marine Corps 2-5 6 Year of First VEAP Contribution (VEAP Starts) by Year of Entry into Military Service for All Enlisted VEAP Participants Through 1979: Air Force 2-5 7 Cumulative VEAP Participation Rates for Enlisted Personnel by Military Service and Total DOD 2-7 8 Distribution of Enlisted VEAP Participants by Amount of First Monthly Contribution and Military Service 2-8 9 Enlisted VEAP Participation Rates by Sex and Military Service for 1979 Accessions and Total Eligible Accessions (1977 Through 1979) 2-9 10 Enlisted VEAP Participation Rates by Racial/Ethnic Group and Military Service for 1979 Accessions and Total Eligible Accessions (1977 Through 1979) 2-10 vi PAGENO="0007" List of Tables and Figures (Continued) 11 Enlisted VEAP Participation Rates by Education and Military Service for 1979 Accessions and Total Eligible Accessions (1977 Through 1979) 2-11 12 Enlisted VEAP Participation Rates by Mental Category and Military Service for 1979 accessions and Total Eligible Accessions (1977 Through 1979) 2-13 13 Enlisted VEAP Participation Rates by Marital Status and Military Service for 1979 Accessions and Total Eligible Accessions (1977 Through 1979) 2-13 14 Enlisted VEAP Discontinuances and Continuation Rates for Original VEAP Enrollees by Period of Original Enrollment (As of December 1979) 2-15 15 Enlisted VEAP Continuances and Continuation Rates for Original VEAP Enrollees by Service (As of December 1979) 2-16 16 Chronology and Description of Potential Educational Benefits Under VEAP and the VEAP Incentive Test in the Army 3-2 17 VEAP Incentive Test Design in the Army 3-4 18 Number of High-Quality Male Enlistments in the Army by Test Area Group 3-5 19 Main Reasons Given by Inactive/Former Participants for Dropping Out of VEAP or Stopping Their Contribution 4-5 20 Persons Who Most Influenced the Participant's Decision to Enroll in VEAP by Survey Group 4-9 21 Place or Manner in Which Participant First Learned About VEAP~by Survey Group 4-10 22 Influence of VEAP on the Participant's Decision to Enlist by Survey Group 4-11 ~1ii PAGENO="0008" List of Tables arid Figures (Continued) 23 Ratings of VEAP by Survey Group 4-14 24 Possible Changes in VEAP Which Participants Consider `Desirable" by Survey Group 4-16 25 The One Change in VEAP Which Participants Would Most Like to See by Survey Group 4-17 26 Present Understanding of the Program by Survey Group 4-18 FIGURES 1 VEAP Participation Rates of Eligible Enlisted Accessions by Year of Entry Into Military Service and Military Service 2-6 2 VEAP Voluntary Continuation Rates by Length of Participation in Months 2-17 3 VEAP Voluntary Continuation Rates (1977-1978) for Enlisted Personnel by Number of Dependents 4-7 4 VEAP Participation Rates (1977-1978) for Enlisted Personnel by Number of Dependents 47 5 VEAP Voluntary Continuation Rates (1977-1978) for Enlisted Personnel by Estimated Cost of Planned Educational Program 4-8 viii PAGENO="0009" TITLE 38-UNITED STATES CODE * * * * * * * PART Ill-READJUSTMENT AND RELATED BENEFITS * * * *~ * * * CHAPTER ~32-POST-VIETNAM ERA VETERANS' EDUCATIONAL ASSISTANCE * * * * * * * Subchapter IV-Administration * * * ** * * * ~ 1642. Reporting requirements The Administrator and the Secretary shall, within 90 days after the date of enactment of this chapter, submit to the Committees on Vet- erans' Affairs of the Senate and House of Representatives a joint re- port containing their respective plans for implementation of the program provided for in this chapter. The Administrator and the Sec- retary shall submit to such committees a report each year detailing the operations of the program during the preceding year. The first such annual report shall be submitted 15 months after the date of enactment of this section. * * * * * * * (ix) PAGENO="0010" PAGENO="0011" Veterans Administration MA~ 2~198O LEVFER OF TRANSMI11~AL Office of the Administrator of Veterans Affairs Washington, D.C. 20420 Honorable Alan Cranston Chairman Committee on Veterans' Affairs United States Senate Washington, D.C. 20510 Dear Mr. Chairman: We are pleased to furnish you with Section one of the third annual report describing the administration of the Post Vietnam Era Veterans' Educational Assistance Program by the Veterans Administration. This report is required by section 1642 of title 38, United States Code, which asks that the Administrator of Veterans' Affairs and the Secretary of Defense submit to your committee each year a report detailing the operations of the program. This third annual report, Section one of which is enclosed, describes the administration of the chapter 32 program by the Veterans Administration. Section two will be submitted separately by the Department of Defense and will deal with the operation of the program within the Department of Defense and its components. Sincerely, MAX CLELAND Administrator Enclosure xi PAGENO="0012" PAGENO="0013" INTRODUCTION The Post-Vietnam Era Veterans' Educational Assistance Act of 1977 enacted under Title IV of Public Law 94-502, estab- lished a contributory educational assistance program under chapter 32 of Title 38, United States Code. The purpose of chapter 32 is to provide educational assistance to those per- sons who initially enter the armed forces after December 31, 1976 and are not covered by the provisions of chapter 34, (Veterans' Educational Assistance) to assist them in obtain- ing an education they might otherwise be unable to afford and to attract qualified persons to serve in the armed forces. Eligibility for participation in the chapter 32 program is extended to active duty personnel in the U.S. Coast Guard, the U.S. Public Health Service, the National Oceanic and Atmospheric Administration and military personnel in the Department of Defense. This report is in response to requirements specified in Title 38, United States Code, Section 1642, that a report be sub- mitted annually to the Committees on Veterans' Affairs of the Senate and House of Representatives. Section one of this third annual report describes the administration of the chapter 32 program by the Veterans Administration. Section two discusses the operation within the Department of Defense and its components. xiii PAGENO="0014" PAGENO="0015" SECTION I - ADMINISTRATION OF THE PROGRAM - VETERANS ADMINISTRATION Since the first and second reports covering calendar years 1977 and 1978, additional policies and procedures consistent with the provisions of Public Law 94-502, incorporated into Title 38, United States Code, have been developed for administration of the Post-Vietnam Era Veterans' Educational Assistance Program (VEAP). The Veterans Administration has continued efforts to plan for and accommodate those applicants who have requested benefits or who are expected to apply for benefits in the future. This section of the report includes a comment on the status of regulations to guide imple- mentation of the program, a description of the banking system which maintains a record of funds contributed, a summary of the procedures approved for administration of benefits and a discussion of the progress made and difficulties encountered in the program. 1.1 JOINT VETERANS ADMINISTRATION/DEPARTMENT OF DEFENSE REGULATIONS AND INTERIM PROCEDURES A. Status. Chapter 32 of Title 38, United States Code, Sections 1621(b), (c) and (e) and 1623(b) require that regulations, terms and conditions of the program shall be issued jointly by the Administrator of Veterans Affairs and the Secretary of Defense. In response to these requirements, regulations have been drafted, have received the concurrence of both, have been printed in The Federal Register (45 FR 30-39), a copy of which is contained in Appendix A, and are being printed for distribution. 1-1 (1) PAGENO="0016" 2 B. INTERIM PROCEDURES. The Veterans Administration has con- tinued to operate under the guidelines established in DVB Circular 20-77-25, issued in coordination with the Department of Defense, in the absence of regulations. The following changes and appendices to the circular issued to the field offices during 1979 are provided in Appendix A of this report: February 6 - Appendix D - Chapter 32 Death Procedures Nay 17 - Appendix E - Predischarge Education Program (PREP - 38 U.S.C., Chapter 32) June 19 - Appendix B,- Chapter 32 Processing - Overview Change 4 August 15 - Appendix C,- Chapter 32 Adjudication Procedures Change 5 August 15 - Appendix A - Revised - Chapter 32 Processing Finance Procedures October 23 - Appendix F - Chapter 32 VADS Program DVB Circular 20-77-25, Appendix A, Revised, dated August 15, 1979 provides VA regional offices with procedures for processing finance actions relating to chapter 32. Included in this appendix are instructions on the "Statement of/Account" microfiche which is an extract listing of all current accounts of contri- butions. The- "Statement of Account" was developed to provide ready access to the most useful segments of a participanth account for regional office use prior to the availability of Target inquiry capability. The microfiche is provided to the regional offices at the end of each month after the completion of all monthly processing. 1-2 PAGENO="0017" 3~ The VA has published instructions for handling requests for refund of contributions when a participant dies. Appendices A and D of DVB Circular 20-77-25 include the procedures for paying to * the proper beneficiary(ies) the remaining contributions of a deceased participant. Although most identification and processing of these cases are now handled manually, computerized processing is being designed into the new Target system. Although enrollment in the Predischarge Education Program (PREP) is prohibited for persons eligible under chapter 34, it may be provided to persons eligible under chapter 32. Since a serviceperson must be serving in the last six months of his or her first enlist- ment period to be eligible for PREP and since the first partici- pants in the chapter 32 program enlisted for 3 or 4-year terms, no individuals could become eligible before July 1979. DVB Circular 20-77-25, Appendix E, dated May 17, 1979, provides instructions on PREP including eligibility requirements for servicepersons and approval criteria for PREP courses. The Department of Defense (DoD) revised DD Form 214, Certificate of Release or Discharge From Active Duty and began using the new form on October 1, 1979. The revised form includes an item to show whether or not the member participated in the program. Upon receipt of a DD Form 214 from DoD showing that an individual contributed to the program, the VA mails a "VEAP package" to 1-3 66-396 0 - 80 - 2 PAGENO="0018" 4 the veteran. This package (See Appendix A) which is sent to all veterans who have contributed, whether or not they are eligible for benefits, contains the following: 1. VA Form Letter 22-905 2. VA Form 22-8821, Application for Educational Assistance (For Post-Vietham Era Veterans - Under Chapter 32, Title 38, U.S.C.) 3. VA Form 4-5281, Application for Refund of Educational Contributions (VEAP, Chapter 32, Title 38, U.S.C.) 4. VA Pamphlet 22-79-1, Summary of Educational Benefits Under the Post-Vietnam Era Veterans Educational Assistance Program VEAP A special mailing of the "VEAP package" was made in October to all participants who had been discharged from active duty, and had not yet applied for benefits or a refund. A total of 12,379 "VEAP packages" were sent ~ut during this special mailing. 1.2 MAINTENANCE OF FUND A. BANKING SYSTEM. The Chapter 32 Banking System was transferred from Austin, Texas, to Hines, Illinois, during 1979. These records of contributions from participants and the Department of Defense will eventually be incorporated into the new target system data base. 1-4 PAGENO="0019" 5 The data shown below was obtained from the Chapter 32 Banking System to determine the participation rate and amounts of contributions dur- ing calendar years 1977, 1978 and 1979. * Public Health Service ** National Oceanic and Atmospheric Administration NOTE: The data presented here are taken from Veterans Administration computer systems and differ from figures shown in Part II of the report since the information represents all actual processing accomplished during the cited period. CHAPTER 32 PARTIcIPATI0N/DI5ENR0LLMENT REFUND DATA (calendar years 1977, 1978 and 1979) 1977 1978 1979 26,091 39,523 48,374 13,571 19,168 19,892 2,438 4,184 12,536 507 4,347 8,443 256 479 1,389 69 155 277 2 11 11 42,934 67,867 90,922 PARTICIPANTS ARMY NAVY MARINE CORPS AIR FORCE COAST GUARD PHS* NOAA** TOTALS TOTAL CONTRIBUTIONS ARMY NAVY MARINE CORPS AIR FORCE COAST GUARD PHS* NOAA** TOTALS AMOUNTS AND TOTALS ARMY NAVY MARINE CORPS AIR FORCE COAST GUARD PHS* NOAA** TOTAL PERSONS PAID REFUNDS TOTAL AMOUNT 1979 42,820,110 22,316,270 7,709,200 6,244,065 1,038,620 252,780 13,195 80,394,240 1977 $ 7,202,465 3,704,140 676,030 103,810 67,035 20,670 475 $ 11,774,625 OF PERSONS PAID 1977 $ 84,250 27,425 24,095 750 TOTALS 113,988 52,631 19,158 13,297 2,124 501 24 201,723 TOTALS $ 73,821,550 38,009,015 10,715,770 7,987,985 1,453,040 366,945 17,935 $ 132,372,240 TOTALS $ 14,091,130 6,473,848 784,341 567,120 76,660 37,340 25,173 (13%) $ 22,030,439 1978 $ 23,798,975 $ 11,988,605 2,330,540 1,640,110 347,385 93,495 4,265 $ 40,203,375 $ REFUNDS 1978 $ 3,376,970 $ 1,143,875 106,135 49,980 9,880 2,625 859 (2%) 8,790 (13%) 15,524 (17%) $ 136,520 $ 4,689,465 $ 17,204,454 1979 10,629,910 5,302,548 654,111 516,390 66,780 34,715 1-5 PAGENO="0020" 6 B. PAYMENT PROCESSING UNIT. The Payment Processing Unit is located at the VA Data Processing Center, Hines, Illinois. The unit receives authorization forms for payment processing from all field stations. A small minicomputer/word processor was installed within the unit during 1979. The minicomputer is a Four phase Company system which was leased because of the increasing number of payments being processed. The system was programmed to accomplish simple calculations, to retain current records for each payee (including statistical data, school enrollment information, payment history and certification data), to generate letters and reports, and to maintain a diary indicating the next required action. The Four phase Company system is an interim measure until the Target system is installed. The Target System development for chapter 32 has concentrated on inquiry capability and on institutional award processing. The goal of the development effort has been to implement the inquiry function and institutional award processing by January 1981. This would allow handling of the majority of chapter 32 claims on Target. Development of other facets of the chapter 32 program, such as disallowance processing and correspondence/flight awards, will be addressed after implementation of the first phase. 1-6 PAGENO="0021" 7~ For the Banking Inquiry function, functional specification and project assignments have been completed. The Banking Inquiry function was implemented in December 1979, and the screens have been installed at the Hines Data Processing Center. Meeting the January 1981 date for institutional award processing will be difficult. Many of the program specification packages have been completed, but some of these still remain to be com- pleted. The majority of the necessary programming and virtually all testing still must be done before the various screens needed for award processing can be used in regional offices. Upon full inplementation of Target, it will no longer be neces- sary to utilize the Payment Processing Unit. 1.3 ADMINISTRATION OF BENEFITS The Veterans Administration has the sole responsibility for the administration of educational assistance benefits under Chapter 32, Title 38, United States Code. The VA continues to dedicate con- siderable amount of staff time toward the development of systems and procedures for processing applications as they are received. 1-7 PAGENO="0022" 8 Applications for benefits are processed by the VA regional office having jurisdiction over the area where training is given, except for correspondence training, in which case it may be processed by the regional office having jurisdiction over the area where the veteran is living. After determining eligibility, the Adjudication Division at the regional office completes the appropriate authorization forms and forwards them to the Payment Processing Unit at the VA data Processing Center, Hines, Illinois. This unit is located in the Finance Division and performs all payment processing functions manually with the assistance of a small minicomputer/worfl processor. A. CHANGES IN PROGRAM FORMS AND PUBLICATION OF INFORMATIONAL PAMPHLET. VA Form 22-882lp, Application for Predischarge Education Program (PREP) (Under Chapter 32, Title 38, United States Code), has been published and distributed. A copy is provided in Appendix A. VA Form 4-5281, Application for Refund of Educational Contribu- tions (VEAP, Chapter 32, Title 38, U.S.C.), has been revised. A copy is provided in Appendix A. 1-8 PAGENO="0023" 9 VA Pamphlet 22-79-1, Summary of Educational Benefits Under the Post-Vietnam Era Veterans Educational Assistance Program - VEAP, is an informational pamphlet which has been published and distri- buted. This pamphlet pi~ovides information for servicepersons and veterans regarding eligibility to benefits, amounts of benefit payments and other program features and limitations. Over 250,000. copies of this pamphlet have been distributed to organizations arid individuals since January 1979. A copy is provided in Appendix A. VA Form Letter 22-905 is mailed to participants when they are discharged from active duty and provides information on benefits and refunds. This letter also asks the veteran to keep the VA informed of his or her current address and provides a notice which can be completed and mailed to alert VA of such changes. A copy is provided in Appendix A. If appropriate, all VA forms are being modified, when they are scheduled for routine replenishment, to include chapter 32. B. AREAS OF CONCERN. In addition to those areas which were discussed in the second annual report and which are still relevant, additional areas are also of concern. As indicated above, more than 12,000 participants who were dis- charged during the first 3 years of the program have taken no 1-9 PAGENO="0024" 10 steps to contact the VA regarding their contributions (i.e., to apply for benefits or for a refund). Although most of the discharged participants have been contacted, the VA has been unable to reach all of them. Many of these veterans who have not been reached `nay be unaware of their contributions because they may have been in service only a short time and consequently may have made only one or two contributions. Another area of concern deals with payment of unused contri- butions under 38 U.S.C. 1624, when a participant dies. In a high number of these death cases, no beneficiary has been designated under a Serviceman's Group Life Insurance (SGLI) policy. Many servicepersons insured under SGLI do not designate a beneficiary and, of course, most veterans are not insured under SGLI. We anticipate a considerable increase in these "nondesignated" cases. In these cases, payment is to be made to the participant's estate. In most of these instances, no formal estate adminis- tration exists,thereby necessitating elaborate procedures to make a payment of from $50 to $2700. It should be noted however, that H.R. 6166, 96th Congress, is pending and, if enacted, would correct the problem. The order of distribution would be made to conform to existing distributions of SGLI funds under title 38, United States Code. A similar provision is also included in an omnibus education bill sent by the VA to the Congress on ~~pri1 3, l980~ 1-10 PAGENO="0025" 11 A final area of concern is the complex nature of benefit pay- ments. Because the amount of the monthly payment varies from participant to participant, and even from month to month for some participants, difficulties are anticipated regard- ing the understanding of rates of payment. The following factors contribute to the complexity of the payment amounts: Cl) fluctuating rates of contributions; (2) variance in the number of months contributed (up to 54) and the number of months of entitlement (up to 36); (3): the need for matching funds at the rate of 2 - for - 1; and (4) variability of con- tributions made for some veterans by the Department of Defense. We believe that Congress should review and study the chapter 32 payment program with the goal of simplifying this com- plex accounting system. 1.4 PROGRESS TO DATE REGARDING PARTICIPANTS/CONTRIBUTORS A participant may enter training in an approved institution after the initial tour of obligated service, or after six years in the active armed forces. The Veterans Administration administers the payment of the educational benefits (contri- bution plus government contribution). The initial tour of 1-11 PAGENO="0026" 12 duty for most participants entering the military service after December 31, 1976, was a three-year enlistment. This means that the Veterans Administration is only now beginning to experience the first "wave" of trainees requesting bene- fits under the provisions of chapter 32. As of December 31, 1979, there were a total of 426 persons currently in training that month. - Only 470 persons have ever received benefits for any type of training/educational program under chapter 32. This represents approximately .2 percent of the total ever participating. From this very limited sample, we have summarized in the following tables the types of training being pursued for calendar years 1978 and 1979 by VEAl' recipients and the associated costs. 1-12 PAGENO="0027" 79 GRADUATE (78) 79 UNDERGRADUATE (78) 79 JUNIOR COLLEGE (78) 79 VOCATIONAL! TECHNICAL (78) 79 111(2-I SCHOOL (78) 79 ELEMENTARY (78) 79 FLIGHT (78) 79 COLLEGE CORRESPONDENCE (78) 79 NON-COLLEGE CORRESPONDENCE (78) 13 SUMMARY OF CHAPTER 32 VETERANS IN TRAINING BY MONTH AND TYPE OF TRAINING DURING CALENDAR YEARS 1978 and 1979 TRAINING JAN FEB MAR - APR MAY JUN JUL AUG SEP OCT NOV DEC 3 4 4 6 8 4 4 9 7 10 17 16 (4) (4) (4) 35 38 44 58 58 26 19 22 49 91 129 193 - - - - (1) (2) (1) (3) (7) (18) (24) (26) 50 56 68 74 81 56 31 34 53 85 127 162 - - (4) (4) (5) (4) (1) (2) (10) (32) (34) (36) 5 6 3~1 22 24 23 22 23 30 25 30 48 - - - - (1) (1) (1) (2) (3) (6) (6) (5) 3 6 4 3 ~3 3 2 4 3 5 5 3 - - (1) (1) - (1) (1) (2) (2) (2) (1) (1) 1 - - - - - 1 1 1 2 2 3 4 4 4 4 79. 96 110 132 164 175 114 80 95 147 220 312 426 (78) - - (5)~ (5) (7) (8) (4) (9) (22) (62) (69) (72) 1-13 PAGENO="0028" 14 CUMULATIVE SUMMARY OF CHAPTER 32 BENEFITS PAID BY TYPE OF TRAINING FOR CALENDAR YEARS 1978 - 197 9* INDIVIDUALS' VA MATCH- TOTAL BENE- TYPE OF TRAINING CONTRIBUTIONS ING FUNDS FITS PAID 79 $10,566.60 $21,133.20 $ 31,699.80 GRADUATE (78) 1,405.00 2,810.00 4,215.00 79 68,144.24 136,288.48 204,432.72 UNDERGRADUATE (78) 7,022.43 14,044.86 21,067.29 79 64,882.58 130,765.16 195,647.74 JUNIOR COLLEGE (78) 10,886.38 21,772.76 32,659.14 79 18,982.71 37,965.42 56,948.13 VOCATIONAL! TECHNICAL (78) 1,634.50 3,269.00 4,903.50 79 2,331,71 4,663.42 6,995.13 HIGH SCHOOL (78) 316.36 632.72 949.08 79 135.00 270.00 405.00 ELEMENTARY (78) - - ~- 79 - FLIGHT (78) - 79 - - COLLEGE CORRESPONDENCE (78) - - 79 210.96 421.92 632.88 NON COLLEGE CORRESPONDENCE (78) - - - TOTAL 79 165,253.80 331,507.60 496,761.40 (78) 21,264.67 42,529.34 63,794.01 *Derjved from amounts paid out of the VA Banking system, Hines Illinois for actual training pursued under chapter 32 38 U.S.C. This rejresents ji dol- lars the numbers itemized on the precediicg tble. 1-14 PAGENO="0029" 15 1.5 EVALUATION OF THE PROGRAM A total of 201,723 persons had participated in VEAP since inception of the program through December 31, 1979. Of this total, 34,822 or 17% disenrolled and were paid refunds. Only 470 persons or .2 percent have received benefits for training under VEAP. Figures obtained from the Department of Defense indicate that only 15.2% of eligible enlistees participated in VEAP during 1977. The participation rates for 1978 and 1979 averaged 24.8% and 25.1% respectively. Although the majority of claimants for chapter 32 benefits will not be eligible to receive such benefits until completion of their 3 year enlistments (the earliest beginning date for such 3 year enlistments would be January 1980), the Veterans Administration believes that early indicators lead to a less than optimistic view as to the program's viability. 1-15 PAGENO="0030" PAGENO="0031" 17 APPENDIX A YET MN~ ADMINI STR~TION - DOCUMENTAT ION PAGENO="0032" PAGENO="0033" 19 Fadcral Rcgi&cr I Vol. 45, No, I I W~dnesdaj. January 2. 1000 1 Rules and Regulations - 31 PART 21-VOCAT1O!AL REHABILITATION A~D EDUCATION In Port 21. a new Subpart Gin added to read as follows: Subpart C-Post-Vietnam Era Veterans' Educational AcsiSt3nCO Under 35 U.S.C. Ch. 32 Admtntctrotivc Sun. 21.5001 Administration of benefits program; chapter 32. General 21.5025 Past-Vietnam era veterans' 21.5022 Itauiniticon. 21.5022 Eligibility under more than one P111h'rIOl. 21.5023 Nonduplication; Fadcral programs. Claima ~od Appticatitns 21.5030 Applicotinno. claims, informal claims, and time timita. Etigibibty 21.5010 ltnsie eligibility. 21.5041 Pitiods of entitlement. Participattos 21.5050 Apptieatios requirements for p.irticipatiuls. 21.5532 Contribution requirements. 21.5054 I)at~5 of partir.ip.stios. 21.5050 Resumption of participation. 21.51510 l).rorotttncnt. 21.50112 I)atr of disenrtttnteol. 21.51104 Retund oputs discnrollmcnt. 21.51001 Suspension of participation. 21.5007 Death of participant. Eotttts'mrat 21.5070 Potittoenrot. 21.51171 itisottsa of rntitt.'menl. 21.5072 Esststbrnsosst charge. 21.5071 Eocessivr obseneis. 21.5070 Entitknsrnt charge; overpayment 21.5078 Interruption to conserve entitlement. Counseling 21.5100 Casisorling. 21.5101 Atsprssnisl of program diongra and 21.5103 Travel expenses. A-i 66-396 0 - so - 3 PAGENO="0034" 20 32 Federal Register I Vol. 45. No. I / Wednesday, January 2, 1980 / Rules and Regulations Payroento; Educational Assistance Allowance 21.5130 Payments; educational assistance 21.5131 Educational assistance allowance. 21.5132 Criteria used in determining benefit payments. 21.5134 Restrictions on paying benefits to 21.5136 Benefit payments; predischarge education preorum. 21.5139 Computation of benefit payments and monthly rates. State Approving Agencies 21.5150 Stale approving agencies. Schools 21.5200 Schools. Programs of Education 21.5230 Programs of education. 21.5231 Cnmbinalion. 21.5232 Change olprogrum. 21.5233 Predischarge education program (PREP); chapter 32. Courses 21.0250 Courses. Assessment and Pursuit of Coarse 21.5270 Assessment and pursuit of course. Nondiscrimination Is Vocational Rehabilitation and Educational Programs- Tilts VI, Civil Rights Ant 011664 21.5300 Civil rights. Education Loans 21.5500 Education loans. Authority: 36 USC. 2t0[c). Administrative § 21.5001 Administration of benefits program; chapter 32, In administering benefits payable under chapter 32, title 38, United Stales Code, the Veterans Administration wilt apply the folloiving sections in the same manner as they crc applied for the adminislralion of chapters 34 and 36: (a) Section 21,4001-DelegationS of authority. (b) Section 21.4002-Finality of decisions. (C) Section 21.4003-Revision of decisions. (d) Section 21.4005-Conflicting interests. (e) Section 21.4006-False or misleading statements. (f) Section 21.4007-Forfeitare. (g) Section 21.4008-PreVefltioo of overpayments. (h) Section 21.40t19-Overpuyrnents; waiver or recovery. (36 U.S.C. 1641) General § 21.5520 Poot.Vietoam era veterans' educational assistance. 38 U.S.C. chapter 32, effective Junoary 1,1977, provides for a participatory program far educational assistance benefits to eligible veterans and servicepernons. The intent of Congtess is that this program sholl- (a) Provide educatiortol assistance to men and women who enter the Armed Forces afier December 31. 1978: (b) Assist these men and women to obtain us education they might not otherwise be able to afford; and (c) Promote and assIst the alt volunteer military program of the United Slates by attracting qualified persons to the Armed Forces. (38 U.S.C. 1601) 21.5021 DefInitions. For the purpose of Subpart C and payment of chepler 32 benefits the following definitions apply; (a) "Veteran-means anyone svhose service meets the requirements of § 21.5040. (38 U.S.C. 1602(11) (b) "Active duly-means full-time duty in the Armed Forces or as a commissioned officer of the regular or Reserve Corps of the Public Health Service or of the Notional Oceanic and Atmospheric Administration. It does not include any period during which ott individual: (1) Was assigned full.lime by the Armed Forces to a civilian institution for a course of edaculion which was substantially the same as established courses offered to civilians, (2) Served as a cadet or midshipman at one of the service academies, (3) Served under the provisions of section 511(d) of title 10, United Slates Code, pursuant to an enlistment in the military reserve or national guard, (4) Served in an excess leave without pay status, or (5) Served in a status specified in § 3.15 of this chapter. (38 U.S.C. 1602) (c) "Slate-means each of the several Slates. territories and possessions of the United States, the District of Cslunsbia. the Commonwealth of Puerto Rico and the Canal Zone. (38 U.S.C. 101) (d) "SchooL" "educational institution," "inutitulisn"-meuns the same us defined far chapter 34 benefits in § 21.4200(a)(1). (38 U.S.C. 1602; 1652) (e) "Parlicipant"-meuns a person who is participuting in the educational benefits program established under chapter 32. This includes; (1) A person who has enrolled in and is making contributions by monthly payroll deduction to the "fund". (2) Those individuals who have contributed to the "fund" and have not disenrolled (i.e.. usero or potential users of benefits). (38 U.S.C. 1002) (I) "Fund-means that trust fund occooot established to maintain dollar contributions of the participant (and contributions, if any, from the Department of Defense). (38 U.S.C. 1622) (g) "Suspends-means a participant slops contributing to the "fund" (temporarily or permanentiy). (38 U.S.C. 1621) (h) "Disenrolls"-means a participant terminates participation and forfeits any entitlement to benefits except for a refund of his or her contributions previously made. (38 U.S.C. 1621) (i) "Hardship" or "other good reasons-means c'srcuonstancea considered to be such by the Department of Defense and the Veterans Adminislration when referring to suspension or disenrotlments, such as illness of the participant or a member of his or her immediate family, unexpected personut expense. etc. (38 U.S.C 1621(b)) (j) "Benefit period" means- (1) For a course leading to a standard college degree- (i) The entire enrollment period certified by the school; or (ii) That period of time from the beginning of an enrollment period until the end of the individual's delimiting period; or (iii) That period of time from the beginning of an enrollment period to the date on which the individual's contributions in the fund are exhausted, whichever is the shortest. (2) For a residence course not leading to a standard college degree or for a correspondence course that period of time from the beginning of the enrollment period as certified by the school or the date the school last certified on the quarterly certification of attendance, whichever is later, to'- (i) The end of the enrollment period, (ii) The end of the quarter to be certified; (iii) The last dale of the individual's delimiting period; or (iv) The date on which the individual's contributions to the fund are exhausted, whichever occurs first, (3) For flight training courses that period of time from the beginning of the enrollment period or the date the flight school lust certified on the monthly certification of flight training Ia- (i) The end of the month to be certified, (ii) The last date of the individual's delimiting period; or (iii) The date on which the individual's contributions to the fund are exhausted, whichever occurs first. (38 U.S.C. 1631) (k) "Benefit payment"-meuno oil educational assistance allowance paid to a veteran for pursuit of a program of education during a benefit period. (38 U.S.C. 1631) A-2 PAGENO="0035" 21 Federal Register / Vol. 45.No. I / Wednesday. January 2, 1980 / Rules and Regulations. 33 121.5022 Eliglbtltty under more than one (1) Must have tnitially entered the Participation p og military service after December 31, 1978; An IndivIdual eligible to receive and 21.5050 Appllca5on requirements for educational assistance under 38 U.S.C. (2) Must have served on active duty participation. chapter 32. and provisions of Subpart G for 181 or more continuous days after (a) An individual, who is otherwise Ii not eligible to receive educational December 31, 1976, or If tess than 181 eligible to become a participant. muut assIstance allowance under 38 U.S.C. days were nerved on active duty. the appiy to the Service Department under chapter 34. If otherwise eligible, an individual must have been discharged or which he or abe serves spun forms Individual may receive vocational released from active duty for a service~ prescribed by the Service Department rehabilitation training under 38 U.S.C. connected disability; and/or Secretary of Defense. chapter 31. and/or educational (3) Must have received an (b) No application to participate may assistance under 38 U.S.C. chapter 35, unconditional discharge or release be made before entry upon active duty. but not concurrently with benefits under under conditions other than (c) Each application mutt be chapter 32. The 48.month limitation on dishohorabte from the initial period of submitted in time to permit the Service benefits under more than one program military service and from any other Department to make the required does not apply to benefits under chapter period of service upon which eligibility deduction from the individual's military 32. (38 U.S.C. 1621) I5 based. A discharge or release will be pay for at least I month before the considered to be unconditional if the applicant's discharge or release from *21.5023 Nondupllcatlsn Federal individual `iias eligible for complete active duty. (38 U.S.C. 1621) separation from active duty on the date An Individual may not receive the discharge was issued. The 21.5052 ContrIbution requirements. educational assistance allowance under provisions of § 3.12 of this chapter as to (a) Minimum period of participation. 38 USC. chapter 32. if the individual character of dischargeand § 3.13 of this Each individual who agrees to chapter as to conditional discharges are participate must do so for a minimum (a) On active duty and is pursuing 5 applicable. (38 U.S.C. 1602) period of 12 consective months, unless course of education which is being paid (b) Individuals on active duty. To the participant- for. in whole or in part, by the Armed establish basic eligibility under 38 (1) Ia allowed to diseru'oll for hardship Forces (or by the Deportment of Health, U.S.C. chapter 32 for educational reasons; Educations, and Welfare in the case of assistance an individual on active (2) Is permitted to suspend the Public Health Service). or duty- participation for hardship reasons: (b)Atiending a course of education or (1) Must have initially entered into (3) Is discharged or released from training paid for. in whole or in part, military service afier December 31, 1978, active duty; or under the Government Employees' (2) Must have served on active duty (4) Otherwise ceases to be legally Training Act and whose full salary is furs period sf181 or more continuouo eligible to participate. (38 U.S.C. 1821) being paid to him or her while so days after December 31, 1978, and (b) Amount of monthly contribzszfon., - training. (38 U.S.C. 1641,1781) (3) If not enrolled in a Predischarge The individual shalt specify the amount Clot d A u u * Education Program. must have of his or her contribution to the fund. ~ °~ completed the lesser of the following (1) The contribution shall be at least 8 21.SOiO Appiicasons, claims, Informal two periods of active duty: $50 per month but not more than $75 per claims, and time limits. (i) The individual's first obligated month. (a) To become a participant an period of active duty which began after (2) The contribution shall be evenly Individual must appty to his or her December 31, 1976, or divisible by five. (38 U.S.C. 1622) Service Department on forms prescribed (ii) The individual's period of active , (c).4mount of total contribution. An by the Service Department and/or the duty which began after December 31. individual may contribute for the Secretary of Defense. 1976. and which is 6 years In length, number of months required to reach a (b) Rules and regulations of the (4) If enrolled in a Predischavge total contribution of $2,700. (38 U.S.C. applicable Service Department and/or Education Program, the individual- 1622) the Department of Defense shall (i) Must be an enlisted member of the (d) Changing the monthly determine if the application is timely. Armed Forces, contribution. An individual may (c) The provisions of the following (ii) Must be a participant, and increase or decrease the amount of the sections shall apply to claims for (iii) Must be training during the last 6 msnihly contribution, but may not do so educational assistance allowances or months of his or her first period of active more than once a month. (38 U.S.C. 1622) loans usder 38 U.S C. chapter 32 in the duty which began after December 31, (e) Prohibition against contributing. same manser an the Veterans 1976. (38 U.S.C. 1631(b)) See 1 21.5233. An individual may not make Admin itralion:ppl §21 5041 p tind of t)tiemesst. of hi b ~ dt ~i f df~ SthC.ed~ ~. ~ 21 103 (a) No educational assistance shall be (2) S I' 211031 1 fI afforded an eligible individual under 21.5054 Dates of participation. (3)S t 21 1032T met m~s mn I Pt 32 b yo d the d I f 10 ~ A d d I m y p I p 1 ft fag U SC 1641 1671 ` after his or her last discharge or release December 31. 1976. but may not enroll to from active duty. (38 U.S.C. 1632) participate after December 31. 1981, Eligibility (b) The individual- unless the program is extended as 21.8040 Basi lb (1) May use his or her entitlement at provided in section 408. Pub. L 94-502 ~ ty. , any time during the 10-year period after (90 Slat. 2398). An individual may not (a) Individuals not on active duty. To the last discharge or releaoe from active receive benefits before July 1. 1977 establish basic eligibility under 38 duly; unless discharged afterJanuary 1.1977, U.S.C. chapter 32 for educational (2) Is not required to use his or her furs service.connected condition. The assIstance, an Individual not on active entitlement in consecutive months. (38 first date on which an individual duty- U.S.C. 1032) enrolled in a Predischarge Education A-3 PAGENO="0036" 22 34 Federal Register I Vol. 45, No. I I Wednesday. January 2, 1980 I Rules and Regulations Program may receive benefits is subject utilized to receive benefits as of.the date § 21.5066 Suspension of participation. - to the eligibility requirements of of disenrollmi.'st. tess any outstanding An individual may suspend 21.5045(bj(4). (38 U.S.C. 1631 (a). (b)) debts resulting from overpayments of participation in the program without § 21.5056 Recumptton of partietpatton. educational assistance allowance. (38 disenrolling. If the individual suspends U.S.C. 1623) participation, he or she may resume (a)An eligible individual, who (b) Effective dote of refund. The date participation at any time thereafter remains otherwise eligible. may resume upon which the refund of contributions, while on active duty. active contribution to the fund, if he or if sny. will be mode shall be determined (a) An individual may suspend - . as follows: participation any time after 12 months of (1) Voluntarily elected to suspend (1) If an individual voluntarily participation. following completion of minimum disenrolts from the program before (b) An individual who has participation; or discharge or release from active duty, participated for less than 12 consecutive (2) Suspended at any time for reasons the individual's contributions remaining months may not suspend unless the o ar 5 P. . in the fund will be refunded on- Secretary of Defense determines that the (b) A person who has disenrslled may (i) The date of tie participant's reason for the suspension is due to a reenroll. but will have to qualify again discharge or release from active duty; or personal hardship. (38 U.S.C. 1621) in § 21 50521 V y f1~ ~ §21 5067 D th I p rt p t. (c) Ifs person does reenroll. he or she f th `d ` d h If an individual dies. the Veterans may not `repurchase' entitlement by disenrollrnent `or g ° Administration shall pay the amount of n ~i~ns whict~'he or she received (iii) Any ea;lier date in instances of ~tis ~r her unused contributions to the upon disenrotlment. (38 U.S.C. 1621) hardship or for other good reasons. (a) To the beneficiary or beneficiaries 521.5080 Disenrottmest. disenrotts from the program aft~r designated by the individual under the (a) Voluntary disenrollment. An discharge or release from active duty, individual a ~rvtcemen s Group Life individual may elect to disenroll at any under other than dishonorable p , time within the initial 12 months of conditions, the individual's (b) To the individual a estate if no participation for reasons of personal contributions shall be refunded within beneficiary has been designated under hardship. An individual may dineriroll at 60 days of receipt by the Veterans the tndividua1ls Servicemon s Group Life any time after the initial 12 months of Administration of an application for ~ Insurance p0 icy or s I e in vi ua as participation. (38 U.S.C. 1621) refund from the individual, no sac pa icy. 38 . . .1624 (b) Nonvolunlary disenroilment. The (3) If an individual is disenrolted Entitlement Veterans Administration shall disenroll because he or she is discharged or automatically any individual- released from active duty under § 21.5070 Enttttement. (1) Who is discharged or released dishonorable conditions: the individual's A participant is entitled to a monthly from active duty under dishonorable contributions remaining in the fund shall benefit for periods of time during which conditions. or be refunded; the individual is enrolled in. and (21 Who has not utilized all of his or (i) On the date of the individual's satisfactorily pursuing. an approved her entitlement to benefits within the 10- discharge or release from active duty; or program of education. The amount of the year delimiting period stated in (ii) Within 60 days of receipt of notice benefit will vary from individual to § 21.5041. (38 USC. 1625. 1632) by the Veterans Administration of the individual and, in some instances, from d d I' d h I month to month as provided in § 21.5138. §21.5062 Date of disenrotiment. whichever is :~e la~r or re ease, (38 U.S.C. 1631) An individual will be disenrolled . . effective- (4) If an individual is disenrolled § 21.5071 Months of entitlement attowed. (a) The date the Veterans because he or she has not utilized ~ The Veterans Administration will Administration or the Service his or her entitlement to benefits within credit an individual with I month of Department determines he or she has !le 10-year delimiting period. the , entitlement for each month he or she ceased lobe legally entitled to individuals contributions remaining itt contributes to the fund up to a maximum participate; or a us n a I be re unded. of 36 months or its equivalent in part- 1b) Thedate the individual's request (i) The Veterans Administration shall time training. 138 U.S.C. 1631) for voluntary disenrollment is received noti y I e tndivi uat that the delimiting by the Veterans Administration, period has expired and shall state the § 21.5072 Enttttement charge. whichever is earlier. (38 U.S.C. 1621(d)) amount of unused contributions. The Veterans Administration shall (ii) The Veterans Administration shall determine the entitlement charge for 821.5064 Refund upon dlsenrottment. make the refund only if the individual each payment in the same manner for all (a) General. A disenrolled individual requests iL individuals regardless or whether they will be refunded all contributions made (iii) If no request is received by the are on active duty. by him or harts the fund. He or she will Veterans Administration within 1 year (a) Residence training. (1) A charge be ineligible to receive benefits under from the date that the individual is against the period of entitlement furs §l 21.5130 and 21.5138, unless the notified of his or her entitlement to a program other than a Predischarge Individual reenrolls as a participant and refund, it will be presumed that the Education Program or one consisting agrees to participate lit a new period of individual's whereabouts is unknown. exclusively of flight training will be 12 consecutive months as provided in The funds on deposit for that individual made as follows: 21.5058. The amount of the will be transferred in accordance with (i) The Veterans Administration will contributions refunded upon the provisions of section 725s, title 31, charge an individual who is a full-time disenrollment shall be limited to the United States Code. (38 U.S.C. 1623, student I month's entitlement for each amount of his or her contributions not 1632) monthly benefit paid to him or her, A-4 PAGENO="0037" 23 Federal RegIster I Vol. 45, No. I I Wednesday, January' 2, 1980 / Rules and Regulations 35 (ii) The Veterans Adintntatratton wtll entitlement fares overpayment of successful pursuit of a program. (38 charge an individual who ts other than a educational aauiatance aliowance.only U.S.C. 18411 full.tjme student I month's entitlement if- (b) Required counseling. (1) far each sum of money patd equivalent (1) The overpayment is discharged in Counseling is required- to what the individual would have been bankruptcy; er (i) For any change of program if the paid had he or abe been a full-time (2) The Veterans Admintatration program wee interrupted or student for I month. waives the overpayment and does not discontinued because of the individual's (2) When the computation reoulto in a recover ii. (38 U.S.C. 1631) own misconduct, neglect or lack of period of time other than a full month. (b) The entitlement charge will beat application, or the entitlement charge will be prorated. the appropriate rate for! the elapsed (ii) For reentrance into training (38 U.S.C. 1831) period covered by the overpayment. (38 whether ii in into the same ur a different (b) PredisrhorgeEducotion Program. U.S.C. 1631) program. if training was dioconlinued No entitlement charge will be made. (38 because of unsatisfactory conduct or U.S.C. 1641.1698) 821.5078 Interruption to 0055 ~5 progress under 8 21 4277. or (c) Flight and correspondence training entitlement ! (iii) When neceusary to determine if a courses. (1) A charge against the period (a) Interruption to conserve second or subsequent change of program of entitlement for a program consisting entitlement generally prohibited. No one may be approved. exclusively of flight training or may interrupt a certified period of (2) When counseling in required and correspondence training will be made on enrollment for the purpose of conserving an individual fails to report or fails to the basis of 1 month for each sum of entitlement. A school may not certify a cooperate in the counseling proceso. meney paid equivalent to the dollar period of enrollment for a fractional part furiher action on the application will not value of a month of entitlement as of the normal term, quarter or semester be taken. (38 U.S.C. 1641. 1791) determined under I 21.5138(a)(2)(viii), If the individual actually is enrolled and (c) Limits on counseling. Counseling which is paid to the individual as an Is pursuing his or her program of may not be given- educational assistance allowance for education for the entire term, quarter or (I) For an initial course selected; or this training. When computation results semester. (38 U.S.C. 1641,1780) (2) For a first change from that course in a period of lime other than a full (b) Exceptions. The Veterans when conduct end progress is month, the charge will be proreted. . Administration will charge entitlement satisfactory. (38 U.S.C. 1641, 1791) (2) If the individual is contributing to for the entire period of enrollment the fund at the same time that benefits certified if the individdal otherwise Ia ~2l.810l Approval of program etsangas are being uaed or aubaequently eligible for benefits, except when and reentrances. centributea a sum or auma, the benefitu are intermpted under any of the - (a) Cenerol. An individual may not entitlement chargea will not be following condiliono; receive educational auoiotunce for recomputed. Thus, if the monthly rate (1) Enrollment actually Ia terminated, training following a second or arrived at by applying the formula ia (2) Enrollment Is canceled and the subsequent change in program or-~~° determined lobe $150 at the time that a Individual baa not negotiated an following discontinuance for benefit payment for flight or educational benefits check for any part unoalinfactory conduct or progress correapoodenca training is computed, of the certified peried of enrollment. unlesu ouch a change or reentrance into the Individual will be charged I month (3) The individual- training has been approved by a of entitlement for each $150 paid. If a (i) Interrapta hia or her enrollment at Veterans Administration ceunaeling different monthly rate is computed at the scheduled end of any term, quarter, psychologist. the time of a auboequent payment for aemealer or school year within the (b) Conditions for approval. A each training, no adjustment will be certified period of enrollment; and counoeling psychologist will recommend made in the entitlement charged for the (ii) Has not negotiated any check for approval of auboequenl change of previoaa paymenl(o) even though the educational benefits for the succeeding program or reentrance into the same value of each month's entitlement may term. quarter, semester er scheel year. program If he or she findo that- vary from payment to payment. (38 (4) The Individual requesta (1) The program is suitable so the U.S.C. 1631(c)) Interruption or cancellation for any Individual's aptitudes. interests. and break when a school wea cloaed during abililiea; and I 21.5074 Eaeeaalva absences. a certified period of enrollment and (2) If there wan unsatisfactory The maximum number of absences payments were continued under an progress or conduct, the cause for that allowed an individual enrolled in a eniablished policy based upon an unsatisfactory progress or conduct has ceurae or coOraea not leading to a Executive order of the Preaident or due been removed, and there exists a standard cotlegedegree shall be as to an emergency situation. Thia reasonable likelihood that there will not stated in I 21.4205)b). Aa ataled in exception applies whether or net the be a recurrence of such an intermption * 21.4136)e), no payment will be mede Individual has negotiated a check for or failure to progress. For third and for abaences which exceed the educational benefila for the certified subsequent changes the requiremenle of maximum. The Veterans Administration period. (38 U.S.C. 1641,1750) 81 21.4234 and 21.5232. must also be shall make no charge against the met. (38 U.S.C. 1641. 17911 entitlement of an individual for the Counseling I 21.5103 Travet aapenaea. combined portion of a month for which 821.8100 Coanaells5g, ! (a) 7'rorel fortndsrtduols. The the Veterans Administration makea absence deductions. (38 USC. 1641, (a)Puipose. The purpose of Veterans Adminiotralion shall 1780) counaeling ia- determine and pay the neceosary cost of (1) To aoeiut in selecting an objective; travel to and from the place of *21.5075 Entitlemenl ctisrgc (2) To develop a suitable program of counseling for individuals who are overpayment cans, education or traininw and required Is recieve counseling if- (a) The Veterans Administration will (3) To resolve any personal problema (I) The Veterans Administration make a charge agatnot an individual's which are likely to interfere with the detarmines that the individual is unable A-'5 PAGENO="0038" 24 36 Federal Register I Vol. 45, No. 1 I Wednesday. January 2. 1980/Rules and_Regulations to defray the cost based upon his or her annual declaration and certification; or (2] The tndividual has a service- connected disability. (b] Trove! for otlendonls. The Veterans Adnstnistration wilt authorize payment of travel expenses loran attendant while the individual is traveling when- (1)The individual, because of a severe d.iaability. requires the aerviceu of an attendant while traveling and (2]The Veterans Administration to paying the necessary coot of the Individual's travel on the bacis of the crtterta stated in paragraph (a] of this section. (38 U.S.C. 111] Coon Refeeeaae: Aathasiaatien far travel of atteedaeta. See 521.274. Payments; Educattooal Assistance Allowance 5213130 Peymenta.; educational asatstaeee attowanee. In administering benefits payable under chapter 32. title 38. United States Code, the Veterans Administration will apply the following sections in the same manner as they are applied in the administration of chapters 34 and 38. (a] Section 21.4131 (except paragraphs (c](3] and (e] of this section)- Commencing dates. (h] Section 21.4132-Waiver of time llmtta. (c]Sectisn 21.4134-Withholding and discontinuance. (dl Section 21.4135 (except paragraphs (b] (c] (dl. (n) and (v] of this sectian)- Discontinuance dates. (a] Section 21.4138-CertificationS and release of payments. (I) Section 21.4135-(except paragraph (b] of this sectinn)-Payee. (g) Section 21.4146-Assignments of benefits prohibited. (38 U.S.C. 16411 521.5131 Edaeauanat as.atntanca allowance. The Veterans Administration will pay educational asststance allowance el the rate specified-in 5~ 21.5136 and 21.5138 while the individual is pursuing a courue of education. The Veterans Administration may withhold final payment until It receives proof of the individual's continued enrollment and adjueto the individual's account. (38 U.S.C. 1841) (a] Commencing dole. The commencing date will be the date of the - - lndivldual'a entrance or reentrance under 521.4131 (38 U.S.C. 1641) (b]Ending dole. The ending date will be the earliest of the fellnwing dalee; (1) The ending date of the tndivtduel'a course orpertod of enrollment as certifiedby the school; (2) The ending date of the Individusl'e eligibility as determined under § 21.5941; (3) The ending dale specified in § 21.4135. (38 U.S.C. 1841) §21.5132 CriterIa aced Sn datermtntag bandit payments. (a) Troining lime. The amount of benefit payment to en individual in all types of training except flight and correspondence training depends on whether the Veterans Administration determines that the individual is a full- time student. three.quarter time otudent, half.time student or une-quarirr time student. (b] Conlribulionu. The amount of benefit payment to en individual (except one in the Predinchurge Educatiun Program] also depends on- (1) The amount the individual has contributed tn the fund. (2) The amount the Veterans Administration has contributed to the fund fur the individual. This is twice the individual's contribution. (3] The amount, if any, the Secretary of Defense has contributed to the fund for the individual. (38 U.S.C. 1831] g 213134 Restrtatiena on paying benefits to aervinepersans. The Veterans Admtntntratinn may not pay benefits to a serviceperson (other than one in the Predinchurge Education Program] unlens he nr the- (a) Has completed 3 months of contributions to the fund; and (b)Io serving on active duty in en enlistment period subsequent to the initial period of active duty defined in § 21.5040(b](3]. (38 U.S.C. 1621.1831) § 21.513e eenetlt psyments; predlnatsarge adacaton program. (e]Restriclionu onpoyment.u. The Veterans Administratinn may authorize up toe months of benefits to qualified individuals fur Predischarge Education Program training without charge en entitlement. Payments maybe made only if- (1) The individual has contributed tn the fund for at least I month, and (2] The training is received while the individual iu serving the last 6 months of his or her first enlistment after December 31, 1676. (38 U.S.C. 1831) (b)Month!y role. The amount of payment to an individual pursuing a Prediuchurge Educatiun Program shall be the lesser of these rateu; (1) The cost of the course; or (2] the following mnnthty rates; (i) $311 per month fur full'time training. (ti] $233 per month fur the three- quarter time training. (iti) $158 per month fur half'time treining. (lv) $75 per month for one.quarter traIning. (38 U.S.C. 1641, 1688] (c) Melbod of poymenl. Payment shall be made in a lump sum far the term, quarter or semester at the beginning of the month in which training begins. (38 U.S.C. 1641, 1688) (d) Poymenlforuimikr lroining. An individual may take uimilur training in subsequent enlistments, but it will not be considered Predincharge Education Program training. Benefits for this similar training will be paid on the same basis as any other type of chapter 32 training with a charge to entitlement. (38 U.S.C. 1631) 21.5138 Cemputstlon ot benefit payments and monthly rates. The Veterans Administration will compute all monthly rates and benefit payments. (a) Compulolion of enliliemenlforlor. in computing monthly rates and benefit payments the Veterans Adminiutratiun in all canes except for individuals in the Prediocharge Education Program. willS compute an entitlement factor. (1) For residence training the entitlement factor will be computed as follovia; n Erie no be at a- aunts a e'e .pe~. aanubevatunuuO III- 55) Ste no Sante at hO days St .naniateenattmatbl 5aua see shym. siren. nanUat_-tn___ rva Taidlbuiiettfl)~_~.~~------m----- 54blstetektaabvlwslT.bttte.udaetcbv .75 Pa $ en qtctwane$ua.nc hyStes Pun-ate eaaant ma- .m Par an-q*atlao inc e~iO.n. E~u.'no ,nat (d)~ (Thai no eanieteni i.aw3 (2] Fur flight training and correspondence training the entitlement factor will be computed as fotlowu; neneteteaxattatea ,etnaiat~ See 584..- lb)...._.... ta) Enteeektdxdaofs reaeaatg w nato. Sit$ thy Stun. CalcIte qttnb.vt__m-..--- (PalEtte e-a ares Pate arcane Ste 5~~~..li)- 5n)Eineno annant at no aevttt~ate. Patty. etvitsr~ St no and et-onno neanetatyst lou Site no acre peruong taal nato. W. din at. a. site no qa57l.~._._ (ad) Tataiyetess.eaatoal m- 5b)ertenoamts.mtOttx.me4atttth$taai nenttaonynoeatost_ Si) Ostoe Pete Sin Ste 0. Erie no nantietn__tIn~_~. (IT-aS no muuateuinaliae sac. ana.~ (b] Compulolion of benefilpoymenf. The Veterans Administration will compute benefit payments for all training except the Prediucharga Education Program as follows; it) eneno carve-aura t.ntnt__. 51)..__......._ m eaten. onxoast die oeaaaiaaq Saeebeet______Iu)-. A-6 PAGENO="0039" 03 Malyay kalbyh...a contra btUnn ea~,sn5set fli Dna. sa S by hr's I Eva is. qacsea......... its's. P.. ..J.posac.) it1 Eu.. 1s5 bn~s i5~ os is In. 11.....___. flh. Pa Vns.sns Minweolans pao,an.3 (liEn.. e..ncanalts. Pa Sea anus e'. 5.n.an~ot Otfldane. 5: isa.. P.. .o.naar.,.naaca t(tis'tis ~alOy M's t cuss tee qeclwt........ 313)......,_.., (sea P.. D.e.flsnns alnefaress paeans) (It) Tea 3505 Was 11.1205013)...... (14)............... (Ill The benefit payment is either- (i) The amount shown on line 14 nr liil The total amount of the remaining contrtbatiano is the fund made by the individual and the Veterans Administration and Secretary of Defense on behalf of the individual, whichever is less. 138 U.S.C. 1831) (C) Moasthly roles. The Veterans Administration will campute the manthly rales of payment far individuals in residence training by repeating the calculations in paragraph (bIll) through 1101 of this ueclinn except that instead of entering the entitlement factor on line f, paragraph lb)(1) of this section the Veteruna Administration will enter I for a full-lime student, .78 far a three- quarter time atudent, .5 far a half-time - atadent, or .25 for a one-quarter time student. 138 U.S.C. 1031) S(atdApprnving Agencies {21,515O State appeasing agencies. In adnsisialering chapter 32. tutu 38, Untied States Code. the Veterans Administration will apply the provisions of the fntlawing oeclinns in the same manner as they are applied for the admininteatias of chapters 34 and 35: (a( Section 21.4150 (except paragraph Id of this arctianl-Dcsignation. (hI Sectinn 21.4151-Canperatian. Id Section 21.4152-Control by agencies of the United Slates. (dl Srctiun 21.4153-Reimbursement of expenses. (38 U.S.C. 1041, 1770. 1771. 1772, 1773. 1774) - Schools p1.8200 Schools. In the administration of benefits payable under the provisions of chapter 32, title 38. United Slates Code, the Veterans Administeatian seilt apply the following sections in the came manner as they are applied for the administration of chapters 34 and 30: (al Sectian 21.4200 (except paragraph Ic) of this ncctinn)-Defin.ilionu. (38 U.S.C. 1641( (b) Section 21.4201-Restrictiona on .nesrnllmenh percentage of students receiving financial support. (38 U.S.C. 1641, 1873(d() (c) Seclinn 21.4202-Overcharges: restrictions no enrollments. (38 U.S.C. 1041, 1780) (d) Section 21.4203 (except paragraph (fl(3) of this sectinn)-Peparto by achciats: requirements.! (38 U.S.C. 1641. 1784) (e) Section 21.4204 (except paragraph (e) of this nrctianl-Periodic certifications. (38 U.S.C. 1641. 1704) If) Section 21.4205-Absences. (38 U.S.C. 1611, 1784) (g) Section 21.4208-Reporting fee. (38 U.S.C. 1041, 1784) (h) Section 21.4207-Failure nf schno( to meet requirementa. (38 U.S.C. 1641, 1780) (i) Section 21.4208-Central Office Education and Training Review Panel. (30 U.S.C. 1041. 1700)! ((I Section 21.4200 (except on much of paragraph Ic) of this section an relates to apprentice and other on-job training)- Examination of records. (38 U.S.C. 1641, 1700) Programs of Education (21.8230 Programs of adacatlon. In the administration tsf benefits payable under chapter 32, title 38. United Staten Code, the Veterans Adminiutralion will apply § 21,4230- Requirements (except paragraphs (c)(2), (d) and (e) of this section) in the same manner as it is applied in the administration of chapters 34 and 36. (38 U.S.C. 1641) 821.5231 Combtnatlon. In the admiunistratian of benefits payable under chapter 32. title 38, United States Code, the Vulerant Administration will apply 8 21.4233(b). Ic), and (a) in the same manner us it is applied for the administration of chtptera 34 and 36. (30 U.S.C. 1641) §21,0232 Change of program. In the administration of benefits payable cnder chapter 32. title 38. United States Code, the Veterans Administration wilt apply § 21.4234. except paragraphs Ic) and (dl. in the santa manner as it is applied in the adasinisiration of chapters 34 and 38. (38 U.S.C. 1641) §215233 Peedlncharge educa6an program IPRcP): chapter 32. (a) General. A Prediachurge Education Program in designed to encourage and ecsist oervicepcrsnns in preparing for their future education, training or vocation by providing them with an opportunity to enroll in and pursue a program of education or training prior to 37 their discharge or release from active duty. (38 U.S.C. 1631, 1641, 1685(a)) (hI Enrollment. The Veterans Administration may approve the enrollment of an tndividual in a Predischsrge Edacattnn Program. regurdleos of the individuals previous educational experience, when tha following conditions exist: (1) The individual- (i) Must be on active duty: (ii) Mast be a participant in the chapter 32 program: (iii) Must meet the requirements for eligibility stated in § 21.51140: and (iv) Muol be an enlisted member of the Armed Forces- (2) The individual is enrolled in- (i) A coarse or courses (other than cnrrcnpondence couraes( which are required to receive a secondary school diploma: or (ii) A course or courses (including individual unit subjects within a Cenerul Education Development (G.E.D.) examination program) which are required for or preparatory to. the pursuit of an approved, appropriate couroe or training program in an edacalianul institution or training establishment. A program deoigned sslrly to prepare an individual for a C.E.D. exuminalian does not meet these requirements. (38 U.S.C. 1831, 1641, 1896) (c) Measurement Courses w~jl be - measured as provided in § 21.4270 et seq. (38 U.S.C. 1531. 1041. 1696) Id) Payment and eesiol/emenl charge. Denafit payments are hosed on the coat of the individuals caurse. The payments may not exceed 5311 per month far full- time training. No charge will be made against the entitlement of the individsal under chapter 32 tin t.asefit payments under the Predsacitorce Education Program. (38 U.S C. 1531, 1641, 1695) (a) Cast determonartan. (lIThe Veterans Administration will compute the cast of the individuals caurae, which will farm the basis toe benefit payments- (i) At the rate of the established charges far titution and fees which the school requires other s:milarly circumstanced students enrolled in the name or a nimilor pragrnm to pay: and lii) The cost of the honks and nuppliea far the course which the achoal requires other students in the name or a nisnilu.r program to have. 12) When the achnoi offers no same or similar program, the Veterans Administration will eatablish the rates far tuitian and fees on the basis of a report from the State approving agency showing the estimated cost for operation of the program and the anticipated enrollment. The costs which the Stale approving agency may or may not 25 Federal Register / Vol 45. Na. I I Wadncnday, )snu~ry 2, 19110 / Rules and Regulations. A-7 PAGENO="0040" 26 38 Federal Register I Vol. 45, No. I I Wedne'sdity. jarulary 2. 1980 / Rules and Regulations Include In the estimate are listed in expenses only the erasonable cost of (n) Costs: travel. (1) The State paragraphs (I) through (o) of this section. space used for instruction. (38 U.S.C. approving agency may include in Its (38 U.S.C. 1631. 1641.1696) 1631. 1641, lavI) coats estimate reasonable costs of (1) Costs: administrative expenses. (1) (k) Costs: loses and insurance. (1) The travel. These include- The State approving agency may include Stat( approving ig-scy may include in (i) Required travel expenses for reasonable administrative expenses In the cost estimate rvastssabte costs for supervisors: its cast estimate, taxes and lnaueaacc. Reasonable casts (ii) Travel expenses for itinerant (2) The following administrative include-, instructors who commute from the expenses are unreasonable and may not (i) The coot of social security for principal campus at which they are be included in the cast estimate: teachers and related peraonnel: and regularly employed: (i) Administrative expenses at the (ii) Health insurance casts for (iii) Travel expenses for bringing home campus when clerical functions teachers sad related personnel. Instructors and administrative personnel are performed at the branch facility (i.e. (2)The following coats are to nat more than one in-service training at the actual location of the unreasonable. They may not be included session each semester or term. Predischarge Education Program): in the cast estimate: (2) The fotlowing travel expenses are (ii) Honorariums; and (i) Income taxeS and not reasonable and may not be included (iii) Expenses due to a subcsntractual ~ ~ if 38 USC in the cost estimate: arrangement not ccsiemplated in the ~ 1641 (i) A daily commuting expense paid to course approval. (38 U.S.C. 1631. ~ (1) ~ost~- tm-urhing and related bring full-time instructor~ from their 1699) ~ i 1 th s t place of residence to their place of (g) Costs: consumable supplies. The ~l d th ~t ate employment; State approving agency may include ~ bt ~ - t t d (ii) Bus transportation for field trips to re bt if mbt lid Rid Ic hmecmp a d supplies in its estimate. All consumable ~ -~ d P . ` (iii) Any travel expenses for supplies included in the cost estimate . . . . instructors not set forth in paragraph must be described and supported in the ~* g I. C n (n)(1) of this section. (38 U.S.C. 1631. State approving agescys report, records-keeping and instructional ~ 1696) (Is) Costs: depreciation. (1) The State m art - . (a) Contingency fund. A contingency approving agency may include (ii) Peruosne assisting teac ers in t fund for profit and nonprofit schools not reasonable costs for depreciation in its a oratory; to exceedS percent of the other cost estimate. (iii) Supply room personnel: acceptable costs may be included as an (2) The following costs for (iv) Library personnel; acceptable cost, if the surplus has been depreciation are unreasonable and may (v) Csunsetng personnel; and offset on the rate established. If the not be included in the cost estimate: (vi) Persons supervising teachers and Prcdiacharge Education Program is (i) Depreciation far equipment other related personnel, terminated or if approval fot~c" purchased from Predischarge Education (2) The following costs are - Predischarge Education Program course Prcigratn tuition prior to establishing unreasonobte and shall not be included is withdrawn the following provisions rates by cost determination; in ste cost estimate: apply- (ii) Depreciation which has been (i) The cost of the formal training of (1) The amount of money remaining ir determined in a manner inconsistent instructors hired as fully qualified to the fund to which the school is not with Inleroal Revenue Service principles teach; entitled shall be paid to the Veterans for computing depreciation: (ii) The full-time salary of a teacher Administration. (iii) Depreciation for the exhaustion, teaching less than 25 hours of classes (2) Within a months following the dat. wear, tear and obsolescence of properly, per week, untess the school clearly of termination or withdrawal of which, at the esd of the useful life of the substantiates by documentation that approval, the school shall verify that thc depreciable property when taken other schools in the general area pay full money has been paid by auditing the together with the salvage value of the salary to similarly qualified instructors financial records of the program. A cops property, exceeds the cost or other baois for teaching the same number of hours of the audit shall be famished to the of the property, per week; Veterans Administration field station a! (iv) Depreciatian which permits the (iii) Any salary in excess of the jurisdiction. school to recoup. within the first year, prevailing rate is the area for similarly (3) The records necessary to support all or m,ost of the costs of establishing qualified instructors; the audit will be kept intact and in gooti the coursejncluding the necessary (iv) Costs of excess clerical personnel condition at the school for at least 3 equipment and program costs when no to assist teachers in records-keeping. years following the day the audit is same course is offered. [38 U.S.C. 163i, Unless the school submits strong completed. Longer retention will not be 1641. 1696). justification for a lesser ratio, no more required unless a written request is (i) Costs: operation andmaintenance. than one clerk's salary will be included received from the General Accounting The State approving agency may include fares average of 150 students per day; Office or the Veterans Administration in its cost estimate reasonable carts for and not later than 30 days before the end of operation and maintenance of the (v) Costs of nonrrlated personnel. (38 the 3-year period. (38 U.S.C. 1631, 1641, physical ptant in which the Predischarge U.S.C. 1631. 1641. laaa( 1696) Education Program is offered. It may not (m) Costs: textbooks. The State (p) Referrals. (1) If the State approvic include capital outlayo for equipment approving agency may include only the agency and the school are unable to and renovating buildings it has already costs of the following books in Its cost agree on the estimated cost of a determined to be adequate. (38 U.S.C. estimate: Predischarge Education Program where 1631, 1641, 1698) (1) All textbooks used in the course: there is no same program, the State wit (j) Costs: rent or/ease expenses. The (2) All workbooks if they are the only report the full facto to the Veteranu State approving agency may include in books used is the course. (38 U.S.C. Administration regional office. if the Its cost estimate as rent srlease 1631,1641. 1896) regional office is unable to resolve the PAGENO="0041" question. the matter will be referred to the DlreUor. Education and Rehabilitation Service to determine cost. (2) In making cost determinations the Veterans AdminisLation- (i) Will use only cost data that has been certified by a Certified Public Accountant or by the Service Department operating the base on which the Predischurge Education Program is being offered; and (ii) Will make an analysis to determine whether the customary teaching practices and the customary organizational practices of the Institution on campus do reflect reasonable and necessary expenses of conducting the program. (38 U.S.C. 1611. 16110) (q) Ref:znr! policy. An individual who diocontinues a course or courses in a Predischarge Education Program count be given a pro rata refund if the rates of the program are based on cost data. (38 U.S.C. 1041, 1898) Courses 21.5250 Courses. In administering benefita payable under chapter 32. title 38. United States Code, the Veterans Administration and. where appropriate, the State approving agencies shall apply the following sections is the same manner as they are applied for the administration of chapters 34 and 30. (a) Srctisn 21.4250 (except paragraph (ella) and (0) of this section)-Approval of courses. (38 U.S.C. 1041. 1772) (b) Section 21.4251-Period of operation of course. (38 U.S.C. 1041. 17891 (c) Section 21.4252 (except paragraph (1) of this section)-Courses precluded. (38 U.S.C. 1641. 1673) (d) Section 21.4253-Accredited courses. (38 U.S.C. 1641,1775) (c) Section 21.4254-Nonaccredited courses. (38 U.S.C. 1041.1776) (1) Section 21.4255-Refund policy: nonaccredited coarsen. (38 U.S.C. 1641, 1778) . (81 Section 21.4250-Correspondence courses. (38 U.S.C. 1641.1709) (h) Section 21.4258 (except paragraph (c) of this section)-Notice of approvaL (38 U.S.C. 1041.1778) (i) Section 21.425)-Suspension or disapproval. (39 U.S.C. 1041.3770) (j) Section 21.4200-Courses in foreign countries. (38 U.S.C. 1041.1676) (hI Section 21.4203-Ftight training; 38 U.S.C. chapter 34. (30 U.S.C. 1(141. 1677) (I) Section 214165 (except paragraph (g) of this uection)-Practical training approved as institutional training. (38 U.S.C. 1041.1772) (m) Section 21.4260-Courses offered at subsidiary brunches or extensions. (38 U.S.C. 1641, 1772. 1709(c)) Asseosment and Pursuit of Course §21.5270 Assessment and pareuit of course. In the administration of benefits payable under chaptei 32, title 38. United States Coda, the Veterans Administration shall apply the following sections in the same manner as they are applied fcr the administration of chapters 34 and 38. (a) Section 21.4270 (except those portions of the section and footnotes dealing with cooperative, farm cooperative, apprentice and other on.job training)-Measurernenl of courses. For the purpose of benefits payable under chapter 32 that trainirig identified in § 21.4270 as less than one-half and store than one.quarter time will be treated as one.quarler time training. (38 U.S.C. 1641, 1788) (b) Section 21.4171-Trade or Technical; high schools. (38 U.S.C. 1641, 1768) (c) Section 21.4272 (except paragraph (fl(2) of this section)-Collegiate undergraduate; credit.houra basin. (38 U.S.C. 1641, 1788) (d) Section 21.4273-Collegiate graduate. (38 U.S.C. 1641, 1788) (e) Section 21.4274-Law courses. (38 U.S.C. 1041. 1703) (f) Section 21.4275-Practical training courses; measurement. (38 U.S.C. 1641, 1788) (g) Section 21..1277-Discontinuance; unsatisfactory progress and conduct. (38 U.S.C. 1611. 1674) (h) Section 21.4278-Reentrance after discontinuance. (33 U.S.C. 1641. 1074) (i) Section 21.4275-Combination correspondence; residence program. (38 U.S.C. 1041. 1708) U) Section 21.4260-ladependent study leading to a standard college degree. (30 U.S.C. 1641. 1673) Nondiscrimination is Vocational Rehabilitation and Educational Programs-Title VI, Civil Rights Act of 1064 § 21.5300 Ctvtt rtghts. Is adnrinistering tsenefils payable under chapter 32. title 39, United States Code, the Veterans Administration shall apply the following sections in the same manner as they are applied for the administration of chapters 34 and 38: (a) Section 21.43110-Civil rights assurances; Title VI, Pablic Law 88-352. (b) Section 21.4301-Institutions of higher learning; elementary and aecondary schools; medical institutions. 39 )c) Section 21.4302-Proprietary vocational schools and training establishments. (dl Section 21.4303-SLate approving agencies. (ci Section 21.4304-Assurance of compliance received-instilutiona of hi6her earing: elementary and secondary schools; medical facilities. (f) Section 21.4315-Noncompliance; complaints; initial action. )g) Section 21.4308-Payments after final agency action. (h) Section 21.4307-PostlerminatiOn compliance. (38 U.S.C. 11141) Education Loans § 21.5500 Education toans. Its administering benefits payable under chapter 32. title 38. United States Code. the Veterans Administration shall apply the following sections in the uume manner as they are applied for the administration of chaplers 34 and 30; (a) Section 21.4500-DefinitiOns. (38 U.S.C. 1631. 17951 (ti) Section 21.4601-Eligibility (the individual must. in lieu of the requirements for eligibility stated in paragraph )b))2l of this section. be a participant in receipt of educational assistance benefits under chapter 32). (38 U.S.C. 1631. 1798) Ic) Section 21.4502-Applicaligns,.(38 U.S.C. 1631. 17981 Id) Section 21.4503-DeterminatiOn of loan amount lexcept thai. notwithstanding paragraph (h)(2) of this section. the maximum to be loaned will be obtained by multiplying the number of months of chapter 32 entitlement rensaining times the monthly rate determined in accordance with I 21.5138. or S2.500 per year whichever is the lesser). (30 U.S.C. 1631, 1798) 27 Federal Regiotor / Vol. 45. No. I I Wednesday. January 2. 1950 I Rules and Regulations A-9 PAGENO="0042" 28 Department of Veterans Benefits DVB Circular 20-77-25 Veterans Administration Appendix D Washington, D. C. 20420 (Confirming Teletype Trans.) February 6, 1979 CHAPTER 32 DEATH PROCEDURES 1. Purpose. This appendix provides interim procedures for handling requests for refund of chapter 32 contributions in death cases. More complete instructions will be issued at a later time. 2. General. Section 1624 of Title 38 U.S.C. provides that unused contributions will be refunded to the beneficiary or beneficiaries designated under the participant's SGLI (Servicemen's Group Life Insurance) policy, or to the parti- cipant's estate if no beneficiary has been designated under such policy or if the participant is not insured under SGLI. Pending publication of detailed instructions, contact Central Office (224B) on FTS number 389-2771, for assistance in processing claims for refund in death cases. 3. Review for Eligibility for Refund. When a notice of death is initially reviewed in Adjudication, it will be neces- sary to check for possible unused chapter 32 contributions. If the initial period of service began on or after January 1, 1977, call Central Office at the above listed number to verify contributions and for further instructions. Note that all personnel processing compensation and pension claims should be alerted to recognize cases that should be referred to Central Office. DOROTH~( L. STARBUCK Chief Benefits Director Distribution: CO: RPC 2900 FD FLD: RPC 2223, plus 10 additional copies for Finance in ROA; VBC and VROC, 1 each EX: HNSO and AR, 1 each NOTE: DISTRIBUTION TO DVBE LISTED ON APPENDIX C ~N ERROR. A-10 PAGENO="0043" 29 Department of Veterans Benefits DVB Circular ~0-77-25 Veterans Administration Appendix E Washington, D. C. 20420 May 17, 1979 PREDISCHARGE EDUCATION PROGRAM (PREP - 38 U.S.C., Chapter 32) 1. Purpose. PREP training authorized by title 38, United States Code, sections 1696 and 1698, nay be provided to persons eligible under chapter 32, 38 U.S.C., who are contributors to the chapter 32 fund. PREP training is intended to assist eli- gible persons serving on active duty to prepare for future education or training. 2. General. Public Law 94-502 prohibited enrollment after October 31, 1976 in PREP for persons eligible to receive bene- f its under chapter 34, 38 U.S.C. All schools which were of fer- ing PREP to chapter 34 beneficiaries were formally notified in late 1976 that no enrollments or reenrollments would be permitted after October 31, 1976. PL 94-502 authorized PREP training under chapter 32, 38 U.S.C., but provided that the training will be offered at a time immediately preceding discharge or release from active duty. 3. E1igibili~y. All the following criteria apply: a. A serviceperson must have initially entered active duty on or after January 1, 1977, and have served on active duty for a period of 181 or more continuous days after December 31, 1976. b. The individual must be serving in the last 6 months of his or her first enlistment which began after December 31, 1976. c. An eligible serviceperson must be a participant in the chapter 32 fund, having on deposit a minimum of 1 month's contribution. d. A serviceperson who meets the eligibility requirements for PREP is not eligible for the Veterans Administration coun- seling described in 38 U.S.C. 1697. 4. Objectives. The course or courses must: a. Be required to receive a secondary school diploma. (High school correspondence courses are specifically excluded by law.) A-ll PAGENO="0044" 30 DVB Circular 20-77-25 May 17, 1979 Appendix E The objective must be stated as "high school diploma." PREP courses must lead to the objective, but "PREP" cannot bean p~jective or b. Be required for, or preparatory to, the pursuit of an approved educational or vocational training program. This pro- vision permits enrollment in any approved elementary, secondary, remedial or deficiency course, including individual unit sub- jects within a G.E.D. (General Education Development) examination prog~an. The objective in this case is the completion of the approved postsecondary program (e.g., voca- tional certificate in electrical repair, carpenter apprentice program, A.A.S. engineering technology, B.A., etc.). A G.E.D. certificate is not an approvable objective. (1) An applicant's need for deficiency or remedial training in basic English or mathematics skills may be certified by either the applicant's Education Services Officer or by the vocational/educational guidance counselor of (a) the school offering the PREP course, or (b) the school where the applicant plans to pursue his/her chosen objective. (2) When an applicant requests PREP training for a course(s) other than basic English or mathematics, the PREP application must include a statement from the school where the applicant will pursue his/her objective, stating that the PREP course(s) are satisfactory preparation for, or prerequisite to, meeting the school's entrance requirements. The statement must be furnished on the school's official stationery, specifically identify the title of the PREP course being requested, and bear the signature of the school's Admission Officer, Principal, etc., or his or her designee. 5. Approval of PREP Courses. PREP course approvals previ- ously granted to schools for enrollment of persons eligible under chapter 34 are not applicable to enrollment of persons eligible under chapter 32. New requirements for chapter 32 PREP courses make it necessary for any school wishing to begin or resume PREP to request approval under the new approval criteria. a. With the exception of provisions which relate to on-the-job, apprenticeship and farm cooperative training, VA Regulations 14200 through 14209 apply to schools which offer PREP courses. 2 A-l2 PAGENO="0045" 31 May 17, 1979 DVB Circulai~ 20-77-25 Appendix E b. Courses may be accredited or nonaccredited, and will be measured in accordance with VAR~S 14270 and l4271.However, for both payment and for measui~aent purposes, the category "less than one-half but more than one-quarter time" does not apply to PREP courses. Less than one-half time is considered one- quarter time (or less). c. Jurisdiction of all chapter 32 PREP approvals will be assigned to VACO (VA Central Office). Approval information will be submitted by SAA's (State approving agencies) to their regional offices where the approval package will be reviewed for completeness prior to transmittal to Director, Education and Rehabilitation Service (223B). d. Allowable charges for tuition, fees, books and supplies (peculiar to and required for the PREP course) where the PREP course is the same course offered on a school's campus to civilian students, will be determii~id by the costs charged to the similarly circumstanced civilian students. e. The VA will determine the allowable rates for PREP tuition and fees when the program is not a "same course" (see subpar.d above). The determination will be made by dividing the number of anticipated enrollees into the cost of operating the program. Allowable costs are defined in VAR 15233 (pro- posed 38 CFR 21.5233), which received initial publication in the Federal Register of January 4, 1979. Regional offices will be advised of the date when final regulations are published. (1) The cost of administering a PREP course will be determined by VACO based on a report from the SAA having jurisdiction over the school. The SAA's report must include the estimated annual cost for operating the course and the anticipated annual enrollment. The SAA is not required to challenge the cost data furnished by a school, except when figures show obvious deviation from reasonable expectations. (2) Based on audits conducted by the Office of the Inspector General, the VA has determined that some schools accumulated surplus funds while offering PREP training to chapter 34 students. Any surpluses from chapter 34 PREP courCes, which were retained by a school, must be considered as revenue for the purpose of determining the cost of offering chapter 32 PREP. The VA's cost accounting for chapter 32 PREP will require initial reduction of allowable charges by the school to permit prior surpluses to be absorbed into the current cost of operating the program. To ensure equitable application of this provision, any school which offered chapter 32 PREP courses will be required to perform a self-audit of prior revenue from PREP, A-l3 PAGENO="0046" 32 DVB Circular 20-77-25 May 17, 1979 Appendix E and of expenses directly related to the operation of the PREP courses. A copy of the audit results must be submitted to the SAA when requesting approval of chapter 32 PREP courses. f. No course can be approved as part of a PREP curriculum if other students enrolled in that or an equivalent unit course (another section) are awarded academic credit at the postsecond- ary level. g. In addition to the approval provisions listed above, the following conditions apply to PREP courses which are offered at locations not located in a State: (1) No PREP course offered outside of a State, including courses offered on board a U.S. ship, can be considered a "same course.' (2) Courses must be provided at an institution operated by or under contract to the Department of Defense. 6. Miscellaneous a. An application form for PREP trainees has been designed (VA Form 22-8821p), and is expected to be distributed to regional offices prior to June 1979. b. Additional instructions will be given for Payment and award procedures for PREP. - - c. Liaison representatives should furnish copies of this circular to the SAA. DOROTHY L. STARBUCK Chief Benefits Director Distribution: CO: RPC 2900 FD FLD: RPC 2223, plus VBC and VROC, 1 each; 5 additional copies to Liaison Representatives in ROA EX: ASO and AR, 1 each NOTE: Distribution of this appendix limited to those activities directly affected. A-l4 PAGENO="0047" 33 Department of Veterans Benefits DVB Circular 20-77-25 Veterans Administration Change 4 Washington, D. C. 20420 June 19, 1979 CHAPTER 32 PROCESSING - OVERVIEW 1. The Chapter 32 Banking System has been transferred fron the DPC (Data Processing Center) in Austin, Texas, to the DPC in Hines, Illinois, where it will become part of the Target System. The records will eventually be incorporated into the Target data base as the "contribution account" segment. 2. DVB Circular 20-77-25, appendix B, is changed as follows: Page 1 Paragraph 2, lines 3 - 4: Delete "Austin, Texas." and insert "Hines, Illinois.". Paragraph 2a, line 3: Delete "Austin" and insert "Hines". Page 2 Paragraph 3a(3), line 2: Delete "Austin" and insert "Hines". Paragraph 3b(5) Line 2: Delete "to DPC Austin". Line 4: Delete "a legend" and insert "an indicator". Page3 Paragraph 3c (3), lines 1 - 2: Delete "and transmit" and "to DPC Austin". Paragraph 3c(4), line 1: Delete "Austin" and insert "Hines". Page 4, second block from left: Delete "Austin" and insert "Hines". DOROTHY L. STARBUCK Chief Benefits Director Distribution: CO: RPC 2900 FD FLD: RPC 2223,plus 10 additional copies for Finance in ROA; VBC and VROC, `1 each; DVBE, 1 each EX: ASO and AR, 1 each A-l 5 PAGENO="0048" 34 Department of Veterans Benefits DVB Circular 20-77-25 Veterans Administration Cliange 5 Washington, D. C. 20420 (Confirming Teletype Trans.) August 15, 1979 CHAPTER 32 ADJUDICATION PROCEDURES 1. Information on the number of months and the amount of money contributed to chapter 32 or verification that an indi- vidual has not contributed is now obtainable through the Finance activity at each regional office. Inquiries formerly addressed to Central Office will now be directed to the Finance activity where the information is available on microfiche. This change also includes reference to the new application form for PREP. 2. DVB Circular 20-77-25, appendix C, is changed as follows: Page 1, paragraph 3: Delete subparagraph b and insert "VA Form 22-882lp, Application for Predischarge Education Program (PREP), is to be used for PREP." Page 5~, paragraph 5a(4), lines 8 - 9: Delete "Central Office (224B) by telephone (FTS No. 389-2771)" and insert "the Finance activity". Page 11, paragraph lic NOTE, lines 3 - 4: Delete "through the Finance...387-6650)." and insert `to the Finance activity." DOROTHY L. STAR13UCK Chief Benefits. Director Distribution: CO: RPC 2900 FD FLD: RPC 2223, plus 10 additional copies for Finance in ROA; VBC and VROC, 1 each EX: ASO and AR, 1 each A-l6 PAGENO="0049" 35 Department of Veterans Benefits DVB Circular 20-77-25 Veterans Administration Appendix A, Revised Washington, D.C. 20420 August 15, 1979 CHAPTER 32 PROCESSING FINANCE PROCEDURES 1. Purpose. This appendix provides VA regional office Finance activities with current procedures for processing all finance actions relating to the Chapter 32 educational program. 2. Chapter 32 Banking System (Background) a. Chapter 32 Contributions. Active members of the various service departments eligible for Chapter 32 benefits initiate enrollment into the program by the establishment of an allotment representing monthly contributions to the Chapter 32 Banking System. The service departments' are responsible for main- tenance and transfer of these funds and related statistical data to the VA to serve as a record of contributions for use in the computation of educational benefits. b. Operation of the Banking System. The Banking System was established as a means for recording and maintaix~ing participants' monthly contributions to the Chapter 32 program. Each participant's monthly contribution is recorded in an established master record containing all of the information relating to the exchange of funds between the member's service department and the VA. This record serves as the basis for the computation of educational benefits or disenrollment refund. Each service department forwards to the Hines VADPC a monthly tape of statistical and financial data for the updating of each participant's master record. A series of transactions were developed as a means to systematically exchange this data. After Updating the applicable master records, the DPC returns a monthly error and action listing to each service department for any necessary corrective action to be included with the subsequent month's submission. c. DPC Activity. The Hines DPC is responsible for receiving and processing the service departments' monthly input tapes and associated checks. Each service department's financial transactions are internally balanced within the Banking System with the monthly, service department check. Any out-of-balance condition is automatically reported and processing halted until the situation is corrected. An additional reconciliation is completed after each service department's monthly financial data has updated the respective master records to insure the total monthly amount received has been applied to the applicable master records. A-l7 66-396 0 - 80 - 14 PAGENO="0050" 36 DVB Circular 20-77-25 August 15, 1979 Appendi~c A, Revised 3. PPU (Payment Processing Unit) a. Responsibilities. The Payment Processing Unit was established to manually process Chapter 32 educational benefit payments and disenrollment refunds. Disenrollment refund requests are forwarded to the PPU from VA regional offices and service department refund coordinating activities for review and input to the Banking System. In addition, the PPU has the direct responsibility for insuring the timely receipt and validity of each ser~iice department's monthly financial data and associated check. b. Interaction With Regional Offices. The PPU is required to interact with the regional office Finance activities to resolve inquiries concerning refunds and benefit payments. Until additional information is provided the regional off ic~ via refund and benefit payment listings, the PPU will be required to provide information relating to processing dates, check data, returned check data, status of accounts, etc., in order for regional offices to promptly reply to inquiries. 4. Benefit Payment Procedures a. Chapter 32 education awards are prepared in the Adjudication Division as described in appendix C. These hard- copy documents are forwarded to the PPU for manual processing and release of scheduled payments. The PPU transfers the award data to a benefit payment award card. Additional data is recorded on the card periodically to show payments released and other pertinent action taken to correctly update the account. b. Periodic Education Certifications. The PPU manually prepares certification cards for distribution separately from benefit checks; the cards are annotated `Chapter 32" for easy recognition by RO personnel. Upon receipt, the RO Finance activity will audit and complete the cards under Chapter 34/35 procedures. The completed cards will be routed to the Adjudication Division for mailing to the PPU. (Ref. App. C, par. l8n) c. Overpayments (1) Establishment of Benefit Overpayments. Chapter 32 benefit overpayrnents will be manually controlled by the PPU. Overpayment letters will be released under the appropriate station's name and address directing payments to be sent to the RO. A copy of the letter will be forwarded to the RO for inclusion in the claims folder. The RO Finance activity will be responsible for replying to overpayment inquiries. 2 A-18 PAGENO="0051" 37 August 15, 1979 DVB Circular .20-77-25 Appendix A, Revised Information required from the PPU to complete the response may be obtained through telephone contact with the PPU. (2) Repayments. Upon receipt of a cash remittance, the RO Finance activity will deposit the funds to the station suspense account (36F3875). At the same time, a VA Form 3230 will be directed to the PPU as a notice of the available collection. The deposited funds will be retained in the station suspense account for 10 days pending the possible receipt of GFO Form 5504, Debit Voucher, for return of a check due to insufficient funds. After this period, the funds will be transferred to the Hines DPC PPU via SF 1081, Voucher and Schedule of Withdrawals and Credits, for application to the receivable. d. Expedited Payments (1) NO special payment procedures (either local or regular) are currently applicable under the Chapter 32 program. However, payments may be expedited through established procedures. (Ref. app. C, par. 18j) (2) Upon receipt of VA Form 3230 with the legend "Chapter 32-Expedited Payment and Award," the Finance activity will transmit by facsimile transmission a copy of the award to the PPU for immediate processing. The VA Form 3230 will be annotated "Transmitted to the PPU (Date)," and forwarded with the original award for routine mailing as described in appendix C, paragraph l8n. 5. Refund Procedures a. Participants on Active Duty (1) Active duty personnel wishing to disenroll from the Chapter 32 program will initiate their requests for disenroll- ment and refund of contributions through their commanding officer by completion of VA Form 4-5281. (2) Servicepersons who have contributed for less than 12 consecutive months will be disenrolled only upon approval by the commanding officer or other approving official designated by the service department. Such a request for disenrollment and refund can be approved only, for hardship. NOTE: A serviceperson who is experiencing financial hardship may also suspend contributions without losing entitlement or obtaining a refund. 3 ~-19 PAGENO="0052" 3.8 DVB Circular 20-77-25 August 15, 1979 Appendix A, Revised (3) The completed VA Form 4-5281 will then be forwarded to the serviceperson's installation Finance Officer for completion. The "allotment termination date" segment will be completed to insure processing of the refund after the last allotment has been received by the Hines DPC. All service departments have been notified of these instructions and have issued directions to their appropriate activities. b. Participants Not on Active ~p~y Personnel in the Finance activity and Veterans Services Division should be acquainted with the following procedures to advise applicants not on active duty of the actions necessary for their completion of VA Form 4-5281 for disenrollment and refund. (1) VA Form 4-5281 will be provided in triplicate to applicants requesting refund of contributions to the program. The applicant should be advised to complete the VA Form 4-5281, and, after notarization, to return it in triplicate to the regional office with a copy of his or her DD Form 214, Report of Separation From Active Duty. (2) Those applicants appearing in person at the regional office may have the VA Form 4-5281 completed and, in lieu of notarization, certified by selected personnel from the Veterans Services Division who have been delegated this authority by the Veterans Services Officer. (3) All applications will be routed to the Finance activity with the DD Form 214 attached. The application will be reviewed to insure that it is properly completed and that the applicant's address is legible. The Finance Officer will verify the contents of the application by completing items 17, 18, and 20. Item 20 should include the three-digit VA station number. (4) The Finance activity will establish a log and file containing a copy of the VA Form 4-5281 and DD Form 214. VA Form 7051 series should be used for this purpose. The log will contain the name, SSN, branch of service, date application received, and date forwarded to DPC Hines. This information will be retained in order to respond to possible inquiries. (5) The third copy will be returned to the applicant with a brief statement that the request for refund has been approved for payment. 4 A-20 PAGENO="0053" 39 August 15, 1979 DVB Circular 20-77-25 Appendix A, Revised (6) The original application and attached DD Form 214 will be mailed to: Veterans Administration (20l/35B) Data Processing Center. P. 0. Box 66303 AMP O'Hare, Illinois 60666 c. Death Claims Payment Procedures (1) Approval of payment to the proper beneficiary(ies) of remaining funds deposited to the program by a deceased participant will be the responsibility of the Adjudication Division. (2) Upon receipt of a memorandum from the Adjudication Division authorizing payment of death-claim funds, the Finance activity will complete VA Form 4-5281 in duplicate. The memorandum should be reviewed to insure that the proper name and address of the beneficiary are included or, if there are two or more entitled beneficiaries, that the names of the entitled parties, addresses, and share of payment are clearly evident. (3) VA Form 4-5281, Part I, will be completed as follows: Item 1. Name of deceased veteran Item 2. Deceased veteran's SS# Item 3. Branch of service Item 5. Name and address of beneficiary NOTE: If more than one beneficiary, Item 4 should contain the name and address of the station Agent Cashier. The check will be mailed to the Agent Cashier for deposit to the station suspense account. Upon receipt, the Finance activity will prepare SF 1166 or SF 1166 (OCR), Voucher and Schedule of Payments, as appropriate, for the mailing of separate payments to the applicable beneficiaries. (4) Part III - Section B, Items 17, 18, and 20: Finance Officer's signature, date and VARO address. (5) The VA Form 4-5281 will be annotated in bold red letters on the face of the form "Death Case." A copy of the memorandum from the Adjudication Division will be attached to the form. 5 A-21 PAGENO="0054" 40 DVB Circular 20-77-25 August 15, .1979 Appendix A, Revised (6) Upon completion of the VA Form 4-5281, the Finance activity will retain the duplicate copy and forward the original and attached memorandum to the Hines DPC. The retained copy will be logged and filed in the claims folder. d. Questions concerning the receipt and processing of Chapter 32 refund applications should be directed to the Hines DPC Payment Processing Unit on FTS number 387-6651. 6. Inquiries a. RO Finance Activity Responsibility (1) The Finance activity will be responsible for the review of and response to written inquiries concerning nonreceipt, lost or stolen checks, or questioned amounts of Chapter 32 payments. These payments include out-of-service refunds and all Chapter 32 benefit payments. (2) Inquiries which question the authenticity of an approved beneficia~y, disallowance of claim, etc., should be referred to the Adjudication Division. (3) The Finance activity may be required to contact the PPU for additional data to resolve the inquiry. However, these contacts should be limited to Finance personnel to minimize the number of calls directed to the PPU. b. Service Department Inquiries (1) Inquiries received from the various service departments concerning refund payments should be referred to the PPU for response. (2) Inquiries received from inservice participants concern- ing refunds or status of current contributions should be directed to the serviceperson's installation Finance Officer. Procedures have been established within the various service departments for contacting the PPU to resolve these matters. 7. "Statement of Account" Microfiche a. Description (Ref. Exhibit A) (1) The "Statement of Account" is a microfiche listing of accounts consisting of extracted segments of all current Chapter 32 Banking master records. 6 A-22 PAGENO="0055" DVB Circular 20-77-25 Appendix A, Revised (2) This listing was developed to provide ready access to the cost use- ful segments of a participant's master record for regional office use prior to the availability of an online systco for access to the actual banking records. (3) The microfiche will be provided at the end of each conth after the ou~letion of all rronthly processing. (4) The following definitions of column headings are provided for your information and use in reading listed accounts. Each account consists of 2 lines of data under 14 columns. DOS E2~~ ORIGIN7\I4/RBM~IN No. of Nonths of Original EntitLerent/ No. of Nonths of Rssrkaining Entitlecent OREGINAL CX)NI'RIB PART/DOD Original Contributions of Participant/ Original Contributions of DOD RNMPJN CONTUIB PARr/DOD Remaining Contributions of Participant! ReTaining Contributions of DOD DISENROL REFUNDS PPRr/DOD Arrount Refunded to Participant/ Arrount Refunded to DOD PROCEEDS (UNDISrR) AMT/DATES... Arrount of Proceeds (Undistributed)/ Date Established 1/ TypeofMR A - Active (Contributions being received uonthly) I - Inactive (Contributions discontinued) S - Statistical (Only statistical data received) T - Terminated (Contributions refunded) U - Unapplied (Contributions received via an erroneous transaction) 2/ Allotment Discontinuance Reason Code MR - Manber's Request RE - Retired DS - Discharge NM - No ?bney Received AL - (TI - Other DO - Deceased 7 41 August 15, 1979 BR RD NO FILE NUMBER STUB NPNE E4/R ¶IYP DOD OBLIG SERV CtEIP L~ST AIIOIMrTr - MD RFAS MDRENS CORIRIB (TOTAL) Branch of Service Station Number Social Security Nunber First Letter of First and Middle Names and First Five Letters of Last Name Type of Master Record (Banking Systea) 1/ Entered on Active Duty Date Obligated Service Carpletion Date Effective Date of Last Alloinnent and Discontinuance Reason Code 2/ No. of Mnnths Contributed (Cumulative) A-23 PAGENO="0056" 42 DVB Circular 20-77-25 August 15, .1979 Appendix A, Revised b. Finance Activity Responsibility (1) The Finance activity will be responsible for receipt and maintenance of the monthly microfiche listing. Inquiries received from the Adjudication and Veterans Services Divisions concerning the status of an account will require an immediate response from information contained on the microfiche. (2) Inquiries regarding information listed on the microfiche which may be questionable will be resolved by verification from the PPU, including the possible use of a requested RPO ~record printout) of the account. 8. RESCISSION: Appendix A, Revised, dated February 28, 1978 to DVB Circular 20-77-25. DOROTHY L. STARBUCK Chief Benefits Director Distribution: CO: RPC 2900 FD FLD: RPC 2223, plus 10 additional copies for Finance in ROA; VBC and VROC, 1 each; DVBE,1 each EX: ASO and AR, 1 each 8 A-24 PAGENO="0057" STATEMENT OF ACCOUNT FOR APR 04/30/79 CHAPTER 32 (36X8133) VETERANS EDUCATIONAL ASSISTANCE PROGRAM U.S VETERANS ADMINISTRATION STUB M/R EOD OBLIG LAST MONTHS MOS ENT NA~~E TYP SERV ALLOTMNT CONTRIB ORIGIMAL NAME COMP MO REAS (TOTAL) /REMAIN J000E T 77/07/12 80/07/12 78/02 OS DOE,JOHN D. BTHORN I 77/10/04 80/10/04 78/12 DS 12.00000 12.00000 600,00 600,00 HORN,BUDDY T. 12.00000 RTSMITH A 77/11/10 80/11/10 79/04 14.00000 14.00000 900,00 goo.oo SMITH,ROBERT T. 14.00000 JGJONES A -77/09/09 80/09/09 79/04 8.00000 8,00000 400.00 ~oo.oo JONES,JOHN 6. 8,00000 `/OLl VIM I 78/01/14 81/01/14 79/01 OS 12.00000 12.00000 900,00 BENEFITS LIVINGSTON,VELMA D. !~E'!~FITS 1/ Participant John D. Doe, allotment stopped February 1978 due to his discharge. Member disenrolled and contributions of $525 refunded. No remaining entitlement. 2/ Participant Buddy T. Horn, allotment stopped December 1978 due to his discharge. Undistributed proceeds of $100 from April 1978 transaction pending corrective action by service department. ARMY BR 80 FILE NO NUMBER ~/ A 00 123456789 ~/ A 00 246802489 A 00 356894189 )±/ A 00 387452289 A 00 394P-63289 .~ Cl) Ui ~0 w ARMY 123456789 ORIGINAL REMAIN DISENROL PROCEEDS CONTRIB CONTRIB REFUNDS (UNDISTR) PART/DOD PART/DOD PART/DOD AMT/DATES 525,00 100 .00 780 4/7804 100,00 790317904 C..) Ui 3/ Participant Robert T. Smith, last allotment received for current month. Undistributed proceeds for March and April 1979 transactions pending corrective action by service department. ~/ Participant John G. Jones, last allotment received for current month, active account. a 0~') MI-' ~iC.1 tTi-. C..) DM0 17< -~1 5/ Participant Velma D. Livingston, discharged and receiving educational benefits. PAGENO="0058" 44 Department of Veterans Benefits DVB Circular 20-77-25 Veterans Administration Appendix F Washington, D. C. 20420 October 23, 1979 CHAPTER 32 VADS PROGRAM 1. Purpose. This appendix provides an overview of the new VADS (Veterans Assistance Discharge System) program for chapter 32 (commonly referred to as VEAP) being used in con- junction with the revised DD Form 214, Certificate of Release or Discharge from Active Duty. 2. General. The Department of Defense has revised DD Form 214 (see exhibit A) which will be used for-military personnel discharged on or after October 1, 1979. The revised form in- cludes an item pertaining to the member's participation in the chapter 32 program. Item 15, "Member Contributed to Post-Vietnam Era Veterans' Educational Assistance Program," has blocks labeled "Yes" arid "No" for appropriate com- pletion. A chapter 32 VADS package, hereinafter referred to as a "VEAP package," will be mailed to any veteran whose DD Form 214 indicates he/she contributed to the chapter 32 program. NOTE: Even though a VEAP package is issued (item 15 checked "yes"), this should not be accepted as verification that the veteran is eligible for benefits or that the veteran in fact contributed to the program. (See par. 6.) 3. Contents of the VEAP Packag~. The VEAP package contains the following: a. FL 22-905 which serves as a cover letter for the package. (See exhibit B.) b. VA Form 22-8821, Application for Educational Assistance (For Post-Vietnam Era Veterans - Under Chapter 32, Title 38, U.S.C.). c. VA Form 4-5281, Application for Refund of Educational Contributions (VEAP, Chapter 32, Title 38, U.S.C.). d. VA Pamphlet 22-79-1, Summary of Educational Benefits Under the Post-Vietnam Era Veterans Educational Assistance Program, VEAP. 4. Special Mailing. There are many veterans who contributed to VEAP who have not applied for educational assistance or for a refund of their contributions. In an effort to contact them, a list of veterans who contributed and who were discharged before September 1, 1979, was generated. In September 1979, VADS processed a special mailing of the VEAl' package to these A-26 PAGENO="0059" 45 DVB CirCular 20-77-25 October 23, 1979 Appendix F veterans. Another special nailing is scheduled for early 1980 to include veterans discharged on or after September 1, 1979, but prior to implementation of the revised DD Forn 214. 5. Purpose of FL 22-905 a. In addition to being a cover letter for the VEAP package, FL 22-905 has been devised to inàlude a "Notice of New or Cor- rected Information - VEAP (Ch. 32)" since later followup cor- respondence with the veteran may, be necessary. If the veteran fails to apply for educational assistance or for a refund of contributions before his or her delimiting date expires, the VA will notify the veteran and will refund his or her contributions upon receipt of an application for such refund. b. A "Notice of New or Corrected Information - VEAP (Ch. 32)" erroneously submitted to a regional office should be forwarded to: VADPC (35B) Lock Box 66303 AMF O'Hare, Illinois 60666 6. Determining Eligibility to Educational Assistance Under `VEAP. A veteran's receipt or nonreceipt of the VEAP ~E)~age should not be accepted as verification of a veteran's eligibility or ineligibility to educational assistance under VEAP. For example, a veteran whose DD Form 214 shows he con- tributed to VEAP and who received the VEAP package may not be eligible to receive education benefits because he failed to complete 181 days active duty. a. Careful adjudication of claims must be exercised to in- sure all eligibility requirements, as stated in appendix C of this circular, are met before benefits are awarded. b. The Adjudication Division should continue to contact the Finance activity for verification that no contributions are available before denying claims for chapter 32 benefits. DOROTHY L. STARBUCK Chief Benefits Director Distribution: CO: RPC 2900 FD FLD: RPC 2223, plus VBC and VROC, 1 each EX: ASO and AR, 1 each 2. A-27 PAGENO="0060" Ocf:ober 23, 1979 46 DD FORM 214 DVB Circular 20-77-25 Appendix F Exhibit A CERTIFICATE OF RELEASE OR DISCHARGE FROM ACTIVE DUTY AWY ALTUATK~WS 15*5W flfl POtS ~)1á tilts Is ePics CIITIPICATE OF RELEASE OR OSCHAROL IIU iuui~ Lii POutirlOssOLtit. FROMACTIVEDUTY (~~aC.MA*) ~ I~~ SIMPSON, ANDREA DENISE .s~w ~ 1 987165 J4321 SGT E-5 158/02/12 FT. 7ACESON, Sc 29207 coc 2ND Bn Trg Bde TEN, IN Ft. Benjamin Harrison, IN *;~S15 :79w 71L30 ~ iu.t,,~ 02 06 Adiltin. Spec. tI...tP*.. s.. is.t. 00 ~Q~Q 71B30 Clk Typ ss.t...~.ss..s. 00 00 00 00 ~-s. 00 00 kas.'ss.*'~G.~. 79 07 L.1551.s.Es. N/A - 06 21... 00 00 00 15 s~cost.,s*U.s*5Gfl CP*1515 Aac*sPAess.o's ~is.WOl5itiO5tiO(A*p~sS.(15) Marksman (Rifle) Army Corrmtendation Medal Good conduct Medal National Defense Service Medal rO.s.. I*s~ ~ l~ ,is 0 I' ~ 32 606 Avondale Drive ?~shevil1e, NC 28801 ~ E~J'~ D~ .fP Ol141.O5*2l3i - MEMBER. I ::::~ I :`::::~ SERVICE - 2 ~-28 PAGENO="0061" 47 DVB Circular 20-77-25 October 23; 1979 Appendix F Exhibit B FL 22-905 - CHAPTER 32 VADS LETTER ~ Veterans Administration Hare you thougirt about thu rduoatlonal ountobutiona you made orhile In arorice? Your erpoat of tim from attire duty Iodiootes you rontabuted to YEA?, the Post-Virtoaro Era Vetaraus Eduoutional Aasirtauoe Program. You may be eligiblu for educatiooal benefits If you aurrud 181 days or more actior duty. Humeoet,lf you neared less, you still may be eligible prot-idud you mute arpar-sted from actioe duty bucaust of a sereior-connuctad ditability. The VA mill make ao ofticial detartoinstiot regarding your eligibility mbeo you apply forbetefttauoder VEAP. You ron op ly fur botreflta by oorsptetiog thu enoloard application for educational asuittance. Send It to the regional oftior nearest you. as shomo ou the eeueesr. Thu eooloued pamphlet giors you detailed Information about benefits under VEAP. If you think you mill not pursue at eduoational progrurn, or If you art out eligible to rroeine educational benefits under VEAP, you mar ret1uest a refund of your oortributionu on thu rnclosrd VA Sorru 4.5281. You mm rot be entitled to educattonal benefits ora urfund If you haur already recriurd a rrfund of your ooothbutions. If your addresu ohaogrs null soy of thu printed Information at the bottom of thisirlter a incocroct, ploaar notify ua by completing thu Isomer portion of thin letter. floor me ore holding your contrIbutiuna, me mould She to be able to her-p in touch mlth you. Mmloiafrstou of Vetararu Affairs or 598 797 A-29 PAGENO="0062" 48 "VEAP PACKT~GE" A. VA Form Letter 22-905 B. VA Form 22-8821, Application for Educational Assistance (For Post-Vietnam Era Veterans - Under Chapter 32, title 38, u.S.c.) C. VA Form 4~-5281, Application for Refund of Educational Contributions (VEAP, Chapter 32: title 38, U.S.C.) D. VA Pamphlet 22-79--i, Summary of Educational Benefits Under the Post-Vietnam Era Veterans Educational Assistance Program-yEA? PAGENO="0063" Veterans Administration 49 Have you thought about the educational contributions you made while in service? Your report of separation from active duty indicates you contributed to VEAP, the Post-Vietnam Era Veterans Educational Assistance Program. You may be eligible for educational benefits if you served 181 days or more active duty. However, if you served less, you still may be eligible provided you were separated from active duty because of a service-connected disability. The VA will make an official determination regarding your eligibility when you apply for benefits under VEAP. You can apply for benefits by completing the enclosed application for educational assistance. Send it to the regional office nearest you, as shown on the reverse. The enclosed pamphlet gives you detailed Information about benefits under VEAP. If you think you will not pursue an educational program, or if you are not eligible to receive educational benefits under VEAP, you may request a refund of your contributions on the enclosed VA Form 4-5281. You may not be entitled to educational benefits or a refund if you have already received a refund of your contributions. If your address changes or if any of the printed information at the bottom of thisletter is incorrect, please notify us by completing the lower portion of this letter. Since we are holding your contributions, we would like to be able to keep in touch with you. Administrator of Veterans Affairs Enclosures ~=:~ ~ SEND TOILS NOTICE TO: If ynsr .ddrnss ~ i~di c.f.y ~nc~ .ddr~ss in ths .p.cas prn~id~d. Bn.sr. tn *i~n .cd dsi. thi, ,ntic. bsfstss,jea its th. VA .dd,... *hsnn th~ right. If ADPC (35B) Look Bus 66303 .11 gf tSr infgt~tgtj~n bglnrt Is trest. ~nd ycttr gddrssg dg.s ret chsngn. yntttt~5d AMF O'Hare Illinois 60666 NOTICE OF NEW OR CORRECTED INFORMATION -VEAP (CH. 32i A-3 0 PAGENO="0064" 50 VETERANS ADMINISTRATION ADDRESSES Al] addresses are those of Regional Offices unless one of the following abbreviations is used: VAO - VA Office; USVAC U.S. Veterans Assistance Center; VAN & ROC - VA Medical & Regional Office Center; VAC . VA Center. ALABAMA IOWA NEW JERSEY Montgomery 36104 Des Moines 50309 Newark 07102 PHILIPPINES 474 South Court st. 210 Walnut St. 20 Washington Mace Manila 96528 1131 Roxas Blvd. KANSAS NEW MEXICO APO Son Francisco Juneau 99802 VAN & ROC Wichita 67218 Albuquerque 87102 P.O. Box 1288 5500 East Kellogg Dennis Chavez PUERTO RICO 709 West Ninth St. KENTUCKY Federal Bldg. VAN & ROC, ARIZONA Louisville 40202 U.S. Courthouse Sun Jusn 00936 Phoenix 85012 600 Federal Mace 500 Gold Ave., SW GPO Box 4867 8225 North Central Ave. LOUISiANA NEW YORK RHODE ISLAND ARKANSAS New Orleans 70113 VAO, Albany 12207 Providence 02903 Uttle Rock 72201 701 Loyola Ave. Leo W. O'Brien 321 South Main St. 1200W. 3rd St. Federal Bldg. VAO Shreveport 71130 Clinton Ave. & SOUTH CAROLINA CALIFORNIA 510 taut Stoner Ave. North Pearl St. Columbia 29201 Los Angeles 90024 1801 Assembly St. Federal Bldg. MAINE Buffalo 14202 11000 Wilshire Blvd. VAN & ROC, Togas 04330 Federal Bldg. SOUTH DAKOTA 111 West Huron St. Sioux Falls 57101 USVAC Compton 90220 VAO. Portland 04111 Courthouse Plaza Bldg. 101 8. *silowbrook Ave. One Maine Savings Plaza New York Ci~ 10001 300 N. Dali t Ave. Main Lobby, Congress St. 252 Seventh USVAC. East Los Angeles 90063 at 24th St. ye. TENNESSEE 929 North Bonnie Beach Place MARYLAND Nashville 37203 Baltimore 21201 VAO,Rochenter 14614 110 Ninth Ave.. South San Diego 92108 Federal Bldg~ Federal Bldg. 2022 Camiso Del Rio North 31 Hopkins laos & Courthouse TEXAS 100 State St. VAO,Dallas 75202 San Francisco 94105 MASSACHUSETI'S U.S. Courthouse & 211 Main Street Boston 02203 VAO Syracuse 13202 Federal Bldg. John F. Kennedy Bldg. U.S. èourthouue & 1100 Commerce St. COLORADO Government Center Federal Bldg. Denver 80225 100 5. Clinton St. Houston 77054 Denver Federal Center VAO Springfield 01103 2515 Murworth Dr. 1200'Maia St. NORTII CAROLINA CONNECTICUT Winston~Salem 27102 VAO Lubbock 79401 Hartford 06103 MICHIGAN Federal Bldg. U.S. ~osrthouse & 450 Main Street Detroit 48226 251 N. Main St. Federal Bldg. Patrick V. McNamara 1205 Texas Ave. DELAWARE Federal Bldg. NORTH DAKOTA VAM & ROC, Wilmington 19605 477 Michigan Ave. VAC, Fargo 58102 VAO 1601 Klrkwood Highway San Antonio 78285 MINNESOTA OHIO DISTRICT OF COLUMBIA VAC, St. Paul 55111 VAO, Cincinnati 45202 307 Dywer Ave. Washlngton~ 20421 Federal Bldg. Federal Bldg. 941 N. Capitol St., NE Fort Snelliag Km. 1024 Waco 76710 550 Main St. 1400 N.Vallçy Mills Dr. FLORIDA MISSISSIPPI VAO JacksonvIlle 32201 VAN & ROC, Jackson 39204 Cleveland 44199 UTAH P.O. box 505 South~ort Office Bldg. Anthony J. Celebrezze Salt Lake City 84138 311 W. Monroe Street 2350 highway 80 West Federal BId . Federal BId 1240 East ~finth St. 125 South b~l.ate St. VAO MIami 33130 MISSOURI Fedesisl Bldg. Sm 100 VAO, Kansas City 64106 VAO, Columbus 43215 51 SouthwedFirst Ave. Federal Office Bldg. Federal Bldg Room 309 VERMONT 601 East 12th St. 200 N. High ~t. VAN & ROC, St. Petersburg 33731 White River Jet. 05001 P.O. Box 1437 St. Louis 63103 OKLAHOMA 144 First Ave., South Federal Bldg. Mssko~ee 74401 1520 Market St. . Federa Bldg. VIRGINIA GEORGIA 125 S. Main St. Roanoke 24011 Atlanta 30308 MONTANA 210 Franklin Rd., SW 730 Peachtree St., NE VAN & ROC, VAO, Oklahoma City 73102 Fort Harrison 59636 Federal Bldg. WASHINGTON HAWAII 200 Northwest Fourth St. Seattle 98174 Honolulu 96860 Federal Bldg. P.O. Box 50188 NEBRASKA OREGON 915 Second Ave. 300 Ala Mains Blvd. Lincoln 68508 Portland 97204 Federal Bldg. Federal Bldg. WEST VIRGINIA IDAHO 100 Centennial Mail North 1220 Southwest Third Ave. Huntington 25701 Boise 83724 502 Ei th St. Federal Bldg. & U.S. Courthouse NEVADA PENNSYLVANIA 590W. Fort St. Seas 89520 VAC Philade~shia 19101 WISCONSIN 1201 Terminal Way P.O. JInx 807 Milwaukee 53202 ILLiNOIS 5000 Wissahickon Ave. 342 North Water St. aslcags 60680 NEW HAMPSHIRE P.O. Box 8136 Manchester 03103 Pittsburgh 15222 WYOMING 5388. Cark St. Norris Cotton 1000 Li erty Ave. VAIl & ROC, Federal Bldg. Cheyenne 82001 INDIANA 275 Chestnut 5t, VAO Wilkes~Barre 18701 2360 E. Pershing Blvd. Iadians~olls 48204 19.2'! N. Main St. 575 N. Pennsylvania St. ~-31 PAGENO="0065" 51 APPLICATION FOR EDUCATIONAL ASSISTANCE (For Post-Vietnam Era Veterans' Under Chapter 32, Title 38, U.S.C.) INFORMATION AND INSTRUCTIONS GENERAL INFORMATION 1. GENERAL: Read thu Information and Instructions sheet and then complete the application fully and accu- rately. Show `N/A" (not applicable) where appropriate. 2. ELIGIBILITY: n. On active duty - You may be eligible to receive benefitr if you: (1) Initially entered active military aervice on or after January 1, 1977;snd, (2) Served for a period of 181 daya or more after that date; and, (3) Have completed (a) your first obligated period of active military service which began on or after January 1, 1977; or (b) aix years of active service which began on or after January 1, 1977. b. Not on actIve duty . You may be eligible to receIve bennflta If you: (1) InItially entered active military service on or after January 1, 1977;and, (2) Served for a period of 181 days or more after that date; and, (3) Were discharged or released from service under conditions other than dishonorable. If you served less than 181 days for service meeting all the other requirements listed above and were discharged for a service-connected disability, you may be eligible for this benefit. NOTE: You are not eligible for benefits under the chapter 32 program if you contracted with the Armed Forces before January 1, 1977, under a delayed entry program such as the Delayed Enlistment Program and entered active service on or before January 1, 1978. However, you may be eligible for benefits under the chapter 34 (G.L Bill) program. 3. ENTITLEMENT: To be entitled to benefits under the Chapter 32 program, your service must meet the eligibility requirements described above and you must have made contributions by allotment as follows. If you are on active duty, you may be entitled to benefits if you contributed for at least 8 montha. Your total entitlement to benefits under this program is limited to the total of your contributions and additional amounts made by the VA and the DOD (Department of Defense) to your account. 4. ENDING DATE OF ENTITLEMENT: No benefits may be paid under Chapter 32 for a program of education or training more than 10 years after your lest discharge or release from active duty. 5. PAYMENT OF BENEFITS: a. You will be entitled to a maximum number of monthly benefit payments for full.time training equal to the number of months you contributed. However, you may not be paid more than 36 benefit payments should you have contributed more than 36 months. The method of comput. lag the monthly benefit will be essentially the same for individuals on active duty and thçse not on active duty. Your total entItlement to benefits will equal the sum of the following: (1) your total contributions, (2) matching funds by the VA equal to twice your contributions, and (3) contributions by the DOD. b. Institutional training . The sum of all contributions shown above will be divided by the number of months you contributed to the program or by 36, whichever is less. The amount of benefits will vary among individuals depending on the amount and number of contributions. If you are in service and change the amount of your contributions, your benefits may vary monthly if you are contributing and receiving benefits at the seine time. Checks will normally be issued at the first of each month for training during the preceding month. (1) You will generally be paid through a break period between terms if the next term begins in the same or following month, unless you request otherwise before receiving payment for the break. (2) Students enrolled In a course not leading to a standard college degree will have their payments reduced for any excessive absencea (La., absences In excess of 80, based on attendance of 5 days per week over a 12~month period). c. Flight training . You may be paid the entire establish- ed charge for your flight course. However, payment of benefits may not exceed the sum of contributions from all sources described above. Benefits will be paid monthly after the VA receives certification from the flight school on the training you have completed during the month. d. Correspondence training. You may be paid the entire established charge for lessons that you complete. However, payment of benefits may not exceed the sum of contribu- tions from all sources described above. Benefits will be paid quarterly after the school certifies to the VA the number of lessons you have completed during the quarter. PROVISIONS AFFECTING BENEFITS 6. SCHOOLS AND TRAINING ESTABLISHMENTS YOU MAY ATFEND: You may attend elementary schools, high schools, vocational or technical schools, business colleges, colleges and universities, correspondence schools, and flight schools which have been approved by the State approving agency. 7. CORRESPONDENCE COURSES; If you axe consider- ing enrolling in a correspondence course or combination correspondence-residence course, be sure the field is suitable to your abilities and interests before you sign a contrast with the school. Information on ecrrespondence courses is available at the nearest U.S. Veterans Assistance Center or VA regional office. You may wish to further consider your decision before signing a contract which may require you to pay for all or the majority of the course even though you complete only a portion of it. NOTE: The law provides that a contract for enrollment in a correspondence course must be affirmed by the student more than 10 days following the date the contract was signed. For example, if the contract is dated on the 1st of a month, the affirmation must be dated on or after the 12th. No poyments of educational assistance allowance will be authorized by the VA for any lessons serviced by the school prior to the date of affirmation of the contract. If you decide not to enroll in a correspondence course after signing INSTRUCTIONSCONTINUED ON REVERSE 66-396 0 - 80 - 5 PAGENO="0066" a contract but before signing the affirmation, you are entitted to receiue a futl refund from the school of any payment made for the course. 8. FLIGHT TRAINING COURSES: If you are consider- ing enrolling in a flight training program, you must have a valid private pilot's license in order to receive VA benefits. In addition, you must have the required medical certificate which must be kept current throughout your course. NOTE: A second-class medical certificate is required for alt courses for which VA benefits are payable with the exception of the Airline Transportation Pitot course which requiret a first-class medical certificate. A second-clans medical certificate expiret on the last day of the 12th month afier the month of the examination date shown on the certificate. A first-class medical certificate expires on the last day of the 6th month after the month of examination. You wilt not be entitled to VA benefits for any flight training pursued when either condition is not met. 9. RESTRICTIONS: a. You may receive benefits only for courses approved for veterans by the State approving agency in your State. b. You may receive benefits only for courses leading to an educational, professional, or vocational objective for which you are not already qualified. c. You may not receive benefits for courses which you have previously taken and successfully completed. d. The law prohibits the approval of a program for a recreational or an avocational purpose such as dancing. e. Courses in burtending or personality development are prohibited by law. f. The law prohibits payment for any course or courses which are paid for in whole or in part by the United States under the Government Employees Training Act during any period that full salary in being paid to you as an employee of the United States government. g. The law prohibits a school from cashing your checks under a power of attorney from you. h. The law prohibits payment for auditing a course or payment for any course for which the grade assigned in not used in computing requirements for graduation. i. The law prohibits payments it you fail to maintain satisfactory progress or conduct. 10. CHANGE OF PROGRAM: You may change your program one time without counseling provided your progress and conduct have been satisfactory. Additional changes may be approved only after VA counseling. You should plan your program carefully so that not more than one change is required. U. CHANGES IN YOUR ENROLLMENT: You must inform your school of any changes in your enrollment and report these changel to the VA. If you reduce your course load or withdraw from all courses, benefits will ordinarily he reduced or discontinued from the beginning of the term unless mitigating circumstances are shown. You will be held responsible for any overpaymenta resulting from changes in your enrollment. 12. CHANGE OF ADDRESS: It is most important that you promptly inform the VA of any change in your address. Be sure to include your ZIP Code. ADDITIONAL VA EDUCATIONAL BENEFITS 13. ELIGIBILITY FOR VOCATIONAL REHABILITA- TION: If you have a service-connected disability of 10% or more, you may be entitled to Vocational Rehabilitation under Chapter 31, Tile 38, U.S.C., which usually provides more favorable benefits. Use VA Form 22-1900 to apply for Chapter 31 benefits. 14. EDUCATION LOANS: You may be eligible for an education loan if your financinl resources, including educa- tional benefits, are not sufficient to meet educational costa. Use VA Form 22-8725 to apply for a loan. 15. PREDISCHARGE EDUCATION PROGRAM (PREP): In the last 6 months of your first enlistment, you may receive educational benefits without charge to your entitlement if you take courses that lead to a higb school diploma, or remedial, refresher, or deficiency courses that are required for, or are preparatory to, pursuit of a program of education or training. Contact your Education Services Officer for further information and applications. HOW TO APPLY FOR BENEFITS 16. ENROLLMENT CERTIFICATION: If you have selected a school or training establishment, have them certify your enrollment on a VA Form 22-1999, Enrollment Certification. The school should then send both the applica- tion and the enrollment certification to the nearest VA regional office for processing. 17. ADVANCE PAYMENT: You may receive an advance payment for the initial month or partinl month of your tralning plus the following month if: a. You enroll in a school course on at least a halftime basis; b. Your school agrees to receive and process the advance pay; c. You request advance pay in writing on the Enroll- ment Certification; d. Your Enrollment Certification is received in the VA at least 30 days in advance of registration. Advance payment checks ace mailed to the school for delivery to you upon registration but no earlier than 30 days before classes begin. To request an advance payment, contact the school you will attend to see if they will process the advance payment. Your request for an advance payment must be entered on VA Form 22-1999, Enrollment Certifi- cation, or on a separate sheet of paper attached to the Enrollment Certification. The school will then send your application and Enrollment Certification to the nearest VA regional office for processing. 18. VERIFICATION OF PRIOR SERVICE: If you are on active duty and you had a prior period of service, furnish a copy of your DD Form 214 for each period of your active military service which ended prior to your current period of active service. If you are not on active duty, furnish a copy of your DD Form 214 for each period of your active military service. Failure to furnish DD Form(s) 214 as requested may delay processing of your application while the VA verifies your prior service. 19. FURTHER ASSISTANCE: If you need assistance to complete this application or if you require further informa- tion on other VA benefits, such as an education loan, contact the nearest VA regional office or the Veterans Representative on Campus. RETAIN THIS INFORMATION AND INSTRUCTIONS SHEET FOR FUTURE REFERENCE. 52 PRIVACY ACT INFORMATION No benefits may be paid unless a completed application form has been received (38 U.S.C. 1671). The information requested on this form l.a necessary to determine your eligibility to the benefits for which you are applying. The responses which are submitted may be disclosed outside the Veterans Administration as permitted by law. A-33 PAGENO="0067" 53 Foro Approrrd 000 No. 76-00730 VETERANSADMINISTRAT1ON Ii. VA FILEIIO.(IfkIroR.r) V APPLICATION FOR EDUCATIONAL ASSISTANCE (For Post `Virtrorr Ero V.trrors-Urtd.r Oroptor 32, Iii). 38 U.S.C.) C - 00 IMPORTANT: P70011-APPLICANT: Before ooooplrtlog titlo Poem, rood the IAIOR00800O sod IootrSoAoOo short. 2. VA OFFI CE CHLOE DECOR OS ARE Type or prlot ooooers to oh. If odditiooot spoor erquloed. ottsoh sepArate shorts sod boy sosoros to Item LOC TED ( kroorr) DAtohero. tf yo~sreort sHier duty, Part II moot be ooroplrtrd try yoor Eduoatioo Serriors OfSorr sod Port III by yoorComoroodorg Ofliorr. 3. SAME OF APPLICANT (FIrst, otedlr, tool) ~ 0. SOCIAl.. SE000ITY too. S. SEX DMALEDFEOULE 6. MAILING 0000ESS(Noorbrrrd.I,e.Ioro,roIro..Ir, oItyorP.O.ordSI.t.) 7. ZIP CODE 0. DATE OF BIRTO 5. FELEP1IOSE SO. (loolodo o A~ *SGSTA5CE(t0Ch~CArd,ooTpI.I.EordFt.rIor) ~ toSASILITY COMPENSATION DC 0055 0 ~ COMPLETE ONLY IF E. SAME OF PAREtIT F. PARENT'S FILE DAMSON BOX"A"lS CHECKED 11. SERVICE INFORMATION NOTE: Cortplete lIrolS ISA through liE fot oil prtiodo of Srtoooe sod ottooh a toepy of yoor DD Forrt 2 yoor DD Forto(S) 214 or other Sepotoliort pAperS, chrob (`.1) `[J 14 for rooh oompietrd peotod. If you do rot boor DATE ENTERED ACTIVE DUTY A. DATE SEPARATED FROM ACTIVE DUTY 8. TYPED? SEPARATION OR DSCHARGE C. BRANCH OF SERVICE 0. GRADE OR RANK E. F. IF ROAR OEGAS AFTER DEC. EMBER 3 DYES Doo PRESENT 2. ARE You 50005 ACTIVE OuTYr D.OAVE VOL ...MPLETEO YOUR FIRST STATUS YES NO ~J~o~,,d~7Irtr DYES 000 tL lASTED PE06000F NOR' E7 I. SENCICE DrANCI 12. CONTRIBUTIONS ERA VETE0055'EOuCATIOSALASSISYASCE ALLOTOEST (Mu,rtt,, p YES SO (10 `Pro." oerpl.tr ZIoro B ord C) Doe) ALLOTMENT (WoolS, poor) 3. MILITARY EDUCATION AND TRAINING ACADEMIES A. SAME OF ACADEMY USMA `DENT POINT USCAA .SED LOS DON DONNA. ASSAPOLIS B. DATES ATTENDED FROM TO U.DEAREERECEIS'E OTHER SERVICE SCHOOLS AND ADDRESS OF S0000LS B. OESCRIPTIOr' OF . ~ F. DATES ATTENDED FROM TO *R ESOOFYRAISISA . CIVILIA SCHOOL ASSIGNED AS PART OF MILITARY 5O.NCMEASOAOORES5 OF SC000L ~ I. DATES ATTENDED FROM TO I, DEGREE DECEIVED 14. CIVILIAN EDUCATION (Do trot report pd002tioR or trodoiog ohooo ir ftrRr 13.1' AGIVEIGo10.IFTOODtDSOTGNADIIATE.OO[.D~TEOFEOUtV.~D.rlA5OEA5O*ODotCS OFOIGO SC000L ORISNTITZYIOS0005YISGEQuI- E. NAME OF COLLEGE OR OTHER SCHOOL. DATES ATTENDED DATES ATTESDE DEGREE OR NAME OR DESCRIPTION CITY, STATE AND ZIP CODE ~_``~" TO SEMESTER QUARTER1 RECEIVED OF COURSE D~Esoav;.o~oooP;otsrteo.Joodr~ 22-8821 A-3 4 PAGENO="0068" 54 15.HON~MILITARY EMS'LOYMENT(Doootooopletefteooo CeodDiloeotioe dot)o.) ~ ORE B. 010.0 ONTOS EMPLOYED 0 C. ~Rc LOoc~OoArTERo.EAv.J -. T~A~ ~ -- - 16. PROGRAM OP EDUCATION AND ENROLLMENT INFORMATION D ~es D~ (ft "y~M," fools MI dsI&fl~ to lieD 07, "Reoooks.") [J YES 5071 "F.M." lo,oI.h loll deAlt. H, 01.01 17, "Reo.AIM.") ARE APPLY 07 fHIjh..t d.go. Do 000op.tloe) S. EOUCAT1OS OR TRAINIRO WILL BE BY: F. DATE YOUR PRO. 0. Nod EASO ADDS ENS OF SCHOOL OS TRAINING ESTABLISOMEST IF YOU ARE APPLYING FOR A VOCATIONAL FLIGHT COURSE. COMPLETE ITEMS H & I BELOW H. AVIATION EXPERIENCE I. FAA CERTiFICATES AND RATINGS I HEREBY CERTIFY th.t oil Sttleoeoto otode booN, Ste tINe sod oooopiete to the bett of oy k0001ledEe sod belief sod I heoeoith opply fot of ed~o.ttoo oodee Chsplee 32, Title 3G. Uoited Stotes Code. IMA. RATE SIOSED IBM. SI OSATANE OF AFPLICAOT (Do Not Foot) SiGN HERE IN INK PENALTY - WillfoIly fAlSe StsteloeoIs to ostetisi foot io olsio Lot ed0000iOIl iS pooishoble offeose Mod OM( BOSNII io the fotfeitote of theSe oeothet beoeflto sod 10 otioitsl peoslties. NOTE: PARTS!! AND III MUST BE COMPLETED (F YOU ARE ON ACTIVE DUTY. PART II - ARMED FORCES EDUCATION SERVICES OFFICER'S CERTIFICATION I ceotify thot this iodieIdAsi boo ooosolted sith oe eegsediog his oe bet edAHsti000i ptogooo. PART III - COMMANDING OFFICER'S CERTIFICATION OF SERVICE I CERTIFY ThAT the oeootds of this iodioidool,~ho isoodet Dy otooosod, ste oot,eot ~od I oeoify the soooosoy sod ooopleteoess of the set~ioe sod type of disohstge 0, sepststioo shoco is fteos hA thooogit 11! sod the eoteies 10 Iteos 13A th,oo~t 133. AND. thst of the setiee AoIy shoot .hooe, the follooiog peelod(s) eetleoL s. FolILAse ssoigoioeot by 5 set~ioe depsttoeot Los oioiliso sohool Lot. oooese of edoo~tioo sobotsotisily the500esseotsbliE.It- `edoootSesfoeoioilisos; b.TtoesetoedoodeotheptooieioosofTitlelOU.S.C SettioeTi1(d)(Pe~eeeo'51et1o,lO.od.otie.dtvf°.Ioeiis3 B.. hsoo~e.oL.oI~ tOGA. (3,00 Loll UoO.oANo of ioAostooi 01 OgOLSOIILtIN totloogit, oodeo slIest oithoot lOolAtttAI, AWOL, deoeffooo, oodetgoiog seoteooe of oooetos,tisl, eGo) FROM (Sooth, doy, ,..o) T0(00001. Asy, ye.o) SeECIFY0010T0EOSCH OOLINA. 0000000.00 TIME LOST (if oooo. MolIB "NONE") *U.5, G.,.eeDo.5 Pe101BSOWSeD IBJB-SBI425/IBSO A-3 5 PAGENO="0069" 55 VETERANZ ADMINISTRATION APPLICATION FOR REFUND OF EDUCATIONAL CONTRIBUTIONS (VEAP, Chapter 32, Title 30. U.S.C.) PRIVACY ACT INFORMATION: The information requested on this forte is solicited under 38 U.S.C. 1623 (PL 94.502). This information is necessary to properly identify and refund the amount currently being held in the Post'Vietnar Era Veterans Education Account.Discln- sore of information requested is voluntary. Howevet, failure to provide this information may delay your refund payment. The information may he disclosed outside the VA as permitted by Iota, oras stated in the "Notices of Systems of VA Records" which have been published in the Federal Register in accordance with the Privacy Act of 1974. IMPORTANT INSTRUCTIONS- Prior to completing this form, you should understand that you may be eligible te receive educational benefits. By completing this form, you will forfeit any enlillemeut you may have earned, If you have any questions concerning your eligibility, contact your nearest VA regional office before submitting this form. If you wish a refund, complete Part I and carefully read the instructions con- tained in Parts II ond Ill. Failure to complete this form properly may result in delay of your refund. PART t-)DENTtPICATION DATA ZIP CODE ~ PART Il-NOTICE OF DISENROLLMENT AND APPLICATION FOR REFUND -- 7. I request that I be disenrolled from the POST-VIETNAM ERA VETERANS EDUCATIONAL ASSISTANCE PROGRAM. I further request that all funds that I have contributed to this program be refunded to me. I realize that by this disenrollmeol Foe. forfeiliny my cntilfevcnr to re- ceive educational benefits under this program. III am on active duty, I may again enroll in this program by establishing a payroll deduction and thereby reestablish entitlement to educational benefits. Houvever. I will not be able to regain the amount of entitlement I have so far ac- crued upon refund of these funds. ADeEnsnsuvrannsn,r. BD~nocu,~nsconevnnoo Cflvovun,os oenu,sen FOR APPLICANTS ON * ACTIVE DUTY *`OTE - Tie full'v't.g nigsolos' block in to be completed only b0 applicant.. cv ocIi. doly. 5,~vatorc of Seeeice tpprvc ivy Official in required only upon dinesecltn,ent prior to cnvplelivn of 0/leant 11 r.ovtlfy eeofvhol,ovu to 1/rn pv,grae.. Carefully read innlracliov.r iv Part ill after lii.'. portiav in campleled. a.s,usurosEoroeev,00sr tenure rr.s.usuronvusur,r0voesenv:ovurenov- , FOR APPLICANTS NOTON ACTIVE DUTY \OTE: Tie folloreir.y niyt.alore blvtd it to be e'onpfeled or/p by oyplicavl.r vol on aclt,e duly. o,,d runt cr1/er be auto- rized by o itotaey Pub/in or rectified by a t',t official upos the aoplinenl'o peenonot op pearance ond prevcn talror. of cohn iderlificolior or ony tA reyiunaf office. Care fort8 trod ir,nfruclio,,.n I,, Port Ill afIre 1/i, portion no eompletenl. : . , Sworn to and subscribed before me this day of , 19_ LSEALJ Notary Public My commission enpires PART Ill-CERTIFICATION iNSTRUCTION cants sot on ac S - Aprlieasls on active duly should have Section .1 eonnpleled bp the Pisusee Officer at lu/k ereurreril inislaflalion. Appli- ive duty should farrcin~d this form Ia the ctoaerl VA Regional Office silt a copy of DO Ports Off, Notice of Discharge. SECTION A - ON ACTIVE V DUTY I cerrify that I have reviewed this document and attachment and that payment or refund is proper. .s. L~se*i.LoTr.rnSr 16. sn usueuSE Or ,r,ST0LLOr tori rnsusnc OFr,005 1. navE ~ . SECTION 8 NOTON ACTIVE DUTY te oumn o~ DnSCrt*RGE is. sn usueuRE or no nEGmOriOL o rerun e,susvn n reruns Sr natE . ~~4-528~ A-36 1 PAGENO="0070" 56 `-C .` C z In VA PAMPHLET 22-79-1 JANUARY1979 `0-' On ~ _______________ :~ ~ r DEPARTMENT OF VETERANS BENEFITS ~ SUMMARY OF EDUCATIONAL BENEFITS UNDER THE POST-VIETNAM ERA VETERANS EDUCATIONAL ASSISTANCE PROGRAM VEAP C -z ~ 00 Veterans Administration _________ Washington, D.C. 20420 A-37 PAGENO="0071" 57 THE VETERANS ADMINISTRATION provides a program of financial assistance for the education and training of eligible participants under VEAP, the Post- Vietnam Era Veterans' Educational Assist- ance Program (Chapter 32, Title 38, United States Code). The program Is designed to encourage self-improvement and offers financial help to such par- ticipants in raising their educational level. Hundreds of schools across the nation have been approved to make available a wide variety of courses and programs to meet the goals and needs of the Individual participant. Information in this pamphlet may be of help to you in making a decision to return to school. We suggest that you read it care- fully to understand fully the range of benefits and assistance available. For more detailed information or assist- ance, get in touch with your nearest USVAC (United States Veterans Assist- ance Center) or other VA office, local serv- ice officer, or veterans organization repre- sentative, Including the American National Red Cross, in your community. ARE YOU ELIGIBLE? VETERAN: As a veteran, you may be eligible for the educational benefits described in this pamphlet if: A-3 8 PAGENO="0072" 58 * You first entered active military serv- ice on or after January 1, 1977. * You contributed money to the pro. gram by allotment from your military pay while on active duty. * You served for a continuous period of 181 days or more after January 1, 1977. * You were discharged or released from service under conditions other than dishonorable. If you had less than 181 days of service, you may be eligible if you were discharged or released from active duty because of a service-connected disability. SERVICEPERSON: While still on ac- tive duty, you may be eligible for the educa- tional benefits described in this pamphlet If: * You first entered active military serv- ice on or after January 1, 1977. * You contributed for at least 3 months to the program by allotment from your military pay or 1 month for PREP (Predischarge Education Program). * You completed your first obligated period of service or 6 years, whichever is less. (NOTE: For more information on partici- pating in the program while on active duty, contact your Education Services Officer.) OTHER CONSIDERATIONS: You are not eligible for benefits under this program If you contracted with the Armed Forces and were enlisted in or assigned to a reserve component before January 1, 1977, under a delayed entry program (such as the A-39 PAGENO="0073" 59 Ddayed Enlistment Program) and began active service on or before January 1, 1978. You may, however, be eligible under the GI bill for the Vietnam era (Chapter 34, Title 38, United States Code). For more information see VA Pamphlet 20-69-3, Revised, "Summary of Educational Assist. ance Benefits for Veterans With Service Since January 31, 1955 and Before January 1, 1977." The required active military service does not include any of the following periods: Time assigned by the Armed Forces to a civilian institution for a course substan. tially the same as a course offered to civilians; time served as a cadet or mid- shipman at a service academy; time served on active duty for training in an enlistment in the Army or Air National Guard or the Reserves. WHAT SCHOOLS MAY YOU ATTEND? Practically all elementary schools, junior high schools, high schools, vocational or technical schools, business colleges, col- leges and universities. Eligible participants may also be paid benefits for corre- spondence courses or vocational flight training. ARE YOU ELIGIBLE FOR PART-TIME SCHOOLING? Yes. If you are unable to follow a full- time course of instruction, you may want to consider the advantages of part-time schooling. Less than full-time schooling will extend your entitlement over a longer period. For example, - if you enroll in a course recognized by the VA as half time and receive benefits for 12 months, your entitlement will be reduced by only 6 A-4 0 PAGENO="0074" 60 months. Educational assistance allowance payments, however, are less than those for full-time instruction. HOW MUCH EDUCATIONAL ALLOWANCE WILL YOU GET? You are entitled to the same number of monthly payments for full-time training as the number of months you contributed. However, if you have contributed for more than 36 months, your benefits will be paid in 36 monthly payments (or the equivalent for part-time training). Your total dollar amount of entitlement to benefits equals the sum of the following: * Your total contributions. * VA matching funds (equal to twice your contributions). * Additional contributions by the Department of Defense. INSTITUTIONAL TRAINING: The monthly rate of benefits will vary among individuals depending upon the amount and number of contributions. The sum of all contributions shown above is divided by the number of months you contributed (or by 36, whichever is less) to determine the monthly rate at which you will be paid for A-4 1 PAGENO="0075" 61 full-time schooling. For example, if you contributed $50 monthly for 36 months, you total entitlement is computed as follows: $1,800 - your contributions 3,600 - VA matching funds (twice your contributions) + 0 - DOD contributions $5,400 TOTAL ENTITLEMENT Your full-time monthly rate is computed as follows: $5,400 - total entitlement + 36 - months contributed =$150 FULL-TIME MONTHLY RATE You will receive 36 payments of $150 for full-time schooling (or the equivalent for part-time schooling) for a total of $5,400 in educational benefits. Your rate for 3/4-time schooling is $112.50, for ½-time schooling is $75.00, and for `/4-time schooling is $37.50. FLIGHT TRAINING AND CORRE- SPONDENCE TRAINING: You can be reimbursed for the entire established charges you are required to pay for a voca- tional flight course or for a correspondence course. However, you cannot be paid more than the sum of the contributions as described above (i.e., your total entitle. ment). ARE YOU ELIGIBLE TO RECEIVE AN ADVANCE PAYMENT? You may receive an advance payment for the initial month or partial month of your training plus the following month if: A-42 PAGENO="0076" 62 * You enroll in a school course on at least a half-time basis. * Your school agrees to receive and process the advance payment. * You request advance payment in writing. * Your enrollment certification is received in the VA at least 30 days in ad- vance of registration. Advance payment checks are mailed to the school for delivery to you upon regist'a- tion, but no earlier than 30 days before classes begin. To request an advance pay- ment, contact the school you will attend to see if they will process it. Your request for an advance payment must be entered on VA Form 22-1999, Enrollment Certifica- tion, or on a separate sheet of paper attached to the enrollment certification. HOW LONG WILL YOU BE ELIGIBLE? Eligibility under this program extends until 10 years from the date of your last discharge or release from active duty. CAN YOU CHANGE PROGRAMS? You are permitted one change of pro- gram. Subsequent changes may be ap- proved by the VA; for example, a second change of program may be approved by the VA if the program is found through VA counseling to be suitable to your interests, aptitudes and abilities. Change from one program to another when the first is a prerequisite to the second is not considered a change of program. A-43 PAGENO="0077" WHAT MUST YOU DO TO QUALIFY? Once you have selected a school offering the instruction needed to reach your voca- tional or educational objective, two impor- tant steps must be taken: Ing. 63 FIRST, make sure that the school you plan to attend has been approved to offer courses to veterans. If you are not clear on this point, the VA will inform either you or the school regarding qualifying require- ments. SECOND, complete an application for benefits (VA Form 22-8821, Application for Educational Assistance) and file it with your nearest USVAC or VA regional office. Attach a copy of your DD Form 214, Report of Separation From Active Duty, if you are no longer in service. If you are already enrolled in school or wish to re- quest an advance payment, take your application to the school and have them send both the application and certification of your enrollment (VA Form 22.1999) to the nearest VA regional office for process. A-4 4 PAGENO="0078" 64 ARE YOU ELIGIBLE FOR AN EDUCATION LOAN? If you are pursuing an institutional course on a half-time or more basis, you may be entitled to an interest-bearing education loan through the VA. This loan may not exceed $2,500 in any one academic year and is repayable beginning 9 months after you cease to be at least a half-time student. The granting of educa. tion loans is based on financial need. PREP (PREDISCHARGE EDUCATION PROGRAM) FOR ACTIVE DUTY PARTICIPANTS In the last 6 months of your first enlist- ment period, you may receive educational benefits without charge to your entitlement If you take courses that lead to a high school diploma, or remedial, refresher, or deficiency courses that are required for, or are preparatory to, pursuit of a program of education. Contact your Education Sew. ices Officer for further Information and applications. ARE YOU ELIGIBLE FOR VOCATIONAL REHABILITA- TION BENEFITS? If you have a service-connected disability of 10 percent or more, you may be entitled to Vocational Rehabilitation under Chapter 31, Title 38, United States Code, which usually provides more favorable benefits. Use VA Form 22-1900, Disabled Veterans Application for Vocational Rehabilitation, to apply. A-4 5 PAGENO="0079" 65 WHERE TO GO FOR HELP The following offices or representatives will gladly furnish information about your benefits: * USVAC's (United States Veterans Assistance Centers) which are located at most VA regional offices and VA offices. * Any VA office. * Local representatives of veterans organizations and the American National Red Cross. Consult your local telephone directory under United States Government, Veterans Administration, for the number to call to reach a VA representative. Toll-free telephone service is available in all 50 States. A-4 6 PAGENO="0080" 66 GENERAL INFORMATION TO APPLICANTS FOR PREP BENEFITS UNDER THE PROVISIONS OF CHAPTER 32, TITLE 38, U.S. CODE (Post-Vietnam Era Veterans Educational Assistance Pro~am . VEAP) IMPORTANT: READ THESE INSTRUCTIONS VERY CAREFULLY, DETACH AND KEEP THIS SHEET FOR FUTURE REFERENCE. PRIVACY ACT INFORMATION . No benefits may be paid unless a completed application form has been received (38 U.S.C. 1671). The information requested on this form is necessary to determine your eligibility to the benefits for which you are applying. The responses which are submitted may be disclosed outside the Veterans Administration only as permitted by law. Use this form if you ace planning to take one of the following types of courses during the last 6 months of your initial period of active duty: A) A course that leads to a high school diploma, or, B) A remedial, refresher or deficiency course that is required for or is preparatory to the pursuit of a program of education or training. DO NOT use this form if you are planning to take courses under other provisions of the Post.Vietnam Era Veterans Educational Assistance Program. VA Form 22-8821 should be used to apply for benefits under these provisions. 1. ELIGIBILITY - You may be eligible to receive PREP certification from the school that you have enrolled in a benefits if you: PREP course at such institution. The payment will be based on the cost of the course (tuition, fees, books and supplies) a. Entered on active duty for the first time on or after not to exceed the monthly rate for a veteran with no Jan. 1, 1977, (NOTE: You would not be entitled to PREP dependents under the Post-Korean-Conflict and Vietnam benefits if you enlisted prior to Jan. 1, 1977, but entered Era G.L Bill (ch. 34, title 38 U.S.C.). You may receive an on active duty prior to Jan. 2, 1978, under a delayed advance payment for the entire quarter, semester or term enlistment program); and 1f b. Served at least 181 consecutive days of active duty; a. Your school agrees to receive and process the and advance payment; c. Contributed to the chapter 32 education fund by b. You request advance payment in Item 19; and military pay allotment; and c. Your application is received by the VA at least 30 d. Are pursuing the PREP program during the last 6 days in advance of registration. months of your initial enlistment period. Advance payment checks are mailed to the school for 2. ENTITLEMENT- Under PREP you may receive educa- delivery to you upon registration, but no earlier than 30 tional benefits without charge against your basic entitle- days before classes begin. ment while pursuing: (1) a course (other than by corcespondence) required to receive a secondary school 4. LIMITATIONS - No educational assistance allowance diploma; or (2) any deficiency, remedial, or refresher may be paid under this law for a course of education or course, or courses at the secondary school level, required training which is being paid for in whole or in part by the for, or preparatory to, the pursuit of an appropriate course Armed Forces; or by the Department of Health, Education or training program in an approved educational institution and Welfare if you are in the Public Health Service. If you or training establishment, are now attending or expect to attend a course paid for as noted, fumtsh full details in Item 20, "Remarks," so that 3. PAYMENTS - Full payment for the entire quarter, we can inform you of your rights to educational assistance semester or term will be released to you after receipt of a from the VA. INSTRUCTIONS FOR COMPLETING APPLICATION 1. PART I - APPLIC4~.NT - ANSWER ALL QUESTIONS 2. PART II - THE EDUCATION SERVICES OFFICER- COMPLETELY, otherwise make an entry, such as "NA" to You are required by law to consult with your education show that the question is not applicable in your case. If services officer concerning your program BEFORE SUB- additional space is required, attach a separate sheet and key MIT'FING THIS APPLICATION. The certification by the answers to item numbers. education services officer under PART II MUST be com- pleted to indicate you have complied with this requirement. a. OBJECTIVE - In Item 17 show the educational, professional, or vocational goal or objective for which you 3. PART Ill - THE COMMANDING OFFICER OR DE- expect to qualify. This means the objective you expect to SIGNEE - Your commanding officer or designee MUST pursue upon completion of your PREP program. For complete and sign the Certification of Service in Part III. example, a bachelor's degree, auto mechanics, accountant. Action on your application may not be completed without b. PROGRAM - In Item 15 check (sf) the type of program you desire to pursue. In the event you plan to 4. PART IV - CERTIFICATION OF REQUIRED DEFICI- pursue courses (Items 15B, 15C, or 15D) under this PREP ENCY, REMEDIAL OR REFRESHER COURSES - If you program which do NOT lead to a high school diploma, you are required to pursue DEFICIENCY and/or REMEDIAL must list the specific subjects you plan to take in Item 16. courses in Basic English or Basic Mathematic skills, Part IV ~ 22-8821 ~ . (CONTINUEDON REVERSE) A-47 PAGENO="0081" must be completed by either your edscstios services officer, a certifying official of the institution administering the cosmes, or the certifying official of the institution in which you plan to pumue your chosen objective. If you are required to pumue REFRESHER, DEFICI- ENCY or REMEDIAL coumes, other than basic English or basic Mathematim, Part IV may be completed ONLY by the certifying official of the institution in which you plan to pumue your choses objective. 5. PART V . SCHOOL OFFICIAL . The school official MUST complete and sign this section of the form titled 67 Enrollment Certification to certify your enrollment. The certification may be completed before the date classes actually begin only if an advance payment is requested. 6. INFORMATION AND ASSISTANCE . Contact your unit or base education officer. He or she can provide you with specific information about the coumes available at or near your station. Additional information and assistance may be obtained from any VA office or U.S. Veterans Assistance Center (USVAC). Local representatives of the various veterans organizations and the American Red Cross also have informati on and forms available. A-4 8 66-396 0 - 80 - 6 PAGENO="0082" 68 - Foooo Appoo.od 080 VOTE WOOS ADO.00010TRAT000 I. 510 PILE 60. (11Ooo.'.o~) PAYEE APPLICATION FOR PREDISCHARGE EDUCATION PROGRAM(PREP) I NO. (Uodooo COo,opoo 32, Tit1~ 38, UoiO2d Soo(~.o Cod7) ~` 00 I ISA 00000 SS(F,.ooisO ~ oo:II1to~ 061.o,.) 5. 160.67005000. (1ooolod~ 6. 510 066100 00660 OECOB 05060 boO Codo) LOCATED (1106006) 000LE DFENOLE 0 0.0 O~sANDDESE0O 500 0 0.05551.01000 B. DIS*01LlT~ CO 6050- D~. ~ 0.000EV COMPLETE ONLY IF ¶00.600606806067 BOX 9A IS CHECKED 0 TES 0 CO (11 "Yoo" ornit boot 1217 od Pool, 11.81 o.dIO') PARTI-TO BE COMPLETED BY APPLICANT NOTE Eotto tho follooiog i600l7100ioR foo yOoo 861i5007110 p7oild. If hI dotI s06oo ~Ot 108171 12A os poooo to JOCCOOY 1, 1977, oo of thIs to yooo boot 800011' 71200 pDtiOd, yoU tot o,ttotitIDd to PREP 06oof,to. B. 5600106 50. (IooIodtpoB(i. ,odo.011t) ~C. 800500 O7S600ICE 0.5050 0 D D YES D~0 BY 00.0.070057 (M~CI1. 001) 7100 B1~ ALLOY0200T (Mooth. yo.oI 0 YES 0 60(06 `YB," 0071(1210138 tool I3CI PROGRAMOF EDUCATION 0 C. 05050' 000. 0000SE LEA 01551000150 SC000L 010L000 0 o. 00000100.. tOEF S006R000616 0.60600 O07LOBC. BAT 0 06000100.. 006RESOER. OX 0660066506 00 sE:s I, 10) 0 0. ~ 0180.000. BUT DEFIC160C'1 SUBJECTS 0 YES 0 t,o (11 °Y.,." 8,7110.0 8,71 doltilt .o OB 20, "Roo.oRB") ¶9. IF YOU WANT TO REQUEST AN ADVANCE PAYMENT. WRITE `YES IN THE BOX. PAYMENT WILL THEN BE SENT TO YOUR SCHOOL FOR DELIVERY TO YOU IF YOU QUALIFY. (Soo 1,l01101000CCO. p272)709! 3. "PAYMENTS") I CERTIFY lIMO oIl 50,0608005 710d7 2.91007 2.07 tXI .71) 600pittI 10 tht hoot of oy k000oIIdg7 otod IMf,tf tCd I opply foto poogotUl of td,o,t,oo ,oodto Chtpttt 32. 11012 38. I.hoit8d Stotlo COdI. 2tB.SIGSS1OBE OPA#7LICANT (Doootpoiot) SIGN HERE X~B'~N~ 22-882lp A'-4 9 PAGENO="0083" 69 PART Il-ARMED FORCES EDUCATION SERVICES OFFICER'S CERTIFICATION I ceetify that this lodinidasl has cn,tsalted with me negandinE his oe hen educational pmgesm. 22A. DATE SIGNED 228. SIGNATURE AND TITLE OF EDUCATION smnvtcms OFFICER (OS g,.d.oe eoek sod Dnan~h of PART III-~OMMANDING OFFICER'S CERTIFICATION OF SERVICE I CERTIFY THAT the seconds of this individual, who Is uodee 8~ cneottsnd, see connect sod I veeify the accuescy sod contpletetens of the Netvice itfoema- tion shown in Items 12A thenngh 12G. AND, that of the active duty showo in Item 12, the following peeiod(s) neflent: s. Fulltime assignment hy a seevice depaetment to a civilian school foe a cosnse of education suhstantially the saw eases tublished nnunses foe civilians; h. Tone seeved undee the pmvisinns of Title 10 U.S.C., Section 511(d) (Reseeve on National Guand active duty foe training.) c. Non-ceeditahle tine. (Time lost ~cause of industelal on ageicoltunal fuelough, unden sneent without acquittal, AWOL. detention, undeegoing sentence of couet,naoiai, etc.) FROM (Month, day, yese) TO (Month, day, yeae) SPECIFY WHETHER SCHOOLING, RESERVE on TIME LOST (((none, ante "NONE.") PART IV-INSTITUTION'S CERTIFICATION AS TO REQUIRED DEFICIENCY. REMEDIAL OR REFRESHER SUBJECTS NOTE: Applicant's need foe deficiency and/on een,ediulcounses in hasicEnglish skills and/on husic vathennotic skills cay be cedified hy: (1) Education Snnn'ices Officen, on (2) Centufying Official of lostitunion sdnisistneing courses, on (3) Centifying Official of Institution in ohich he on she ciii he odvitted to punsue his ne hen chosen objective. Applicant's need foe nefenshen counses and deficiency on nemedial counnes in othen than husic English on basic vathematic skills, nay be cetlilied only hy the centifying officiol of institution in which he on she u!ll he admitted to punsue his on hen objective. I CERTIFY THAT this individual has been advised that the specific deficiency, necedial, on nnfnnshen suhjects he nn she listed in Itec 06, usc equined hefone punsuing his on hen chosen objective stated in Item 17. PART V. ENROLLMENT CERTIFICATION IMPORTANT.Schonls vill use this pant to cennify the individual's ennoilmect in the pnognam of education applied foe subject to ippnocut by the VA. TYPE OR PRINT IN INK. If additional space is sequined attach Sheets and key ansoens to Itec numbens. 25. CREDITALL0DEOF0RpREVIou5 * 27. PERIOD OF ENROLLMENT 22. ATTENDANCE (Cunnptene a.hjche,re io opplicnblv) 29. CHARGES FOR INSTRUCTION A. BEGINNING 0. ENDING MO. DAY YR. MO. DAY YR. A, HOURS 0. UNITS C. HOURS TU~)ON FEES IT IS HERERY CERTIFIED THAT: (1) The iodividual enroSed as. indicated above or boo been accepted and has notified this institution tkut he or abc intends to enroll as indicated; (21 Focts stated ohove are true ocd correct; (3) Enrollment of this ntudeot doen not exceed any limit establs.hed by the State Approving Ageocy for enrollment in thin course; (4) Thin institution agrees to report promptly to 0kv Vctvrans Admmistrat~on any enrollment changes made in the stodent'a institutional recordn which will affect hio or her educational assistance allonvacce and any change doe to unsatisfuctory progress and/or conduct; (5) For opplicanta requesting odvance payment, it is agreed Shot Ike jnjtjal check for thin enrollmeot period wdl he mailed to the school for temporary care and delivery to the stodnnt upon regintratioo, but cot earlier than 30 days before the commencement of training. It is onderatood (bat completion of a certificate of delivery card will normally he required upon delivery of the sdvance payment. ma. OATC5:osEO 305. NI GNATOnE AN 0 TITLE OF CERTIFcls 0 OFFICIAL nan. N5OE An DADORESS OF 5c000L on A-5 0 PAGENO="0084" PAGENO="0085" 71 LETFER OF TRANSMITFAL - ASSISTANT SECRETARY OF DEFENSE WASHINGTON. D. C. 20301 MANPOWER RESERVE AFFAIRS JUL 3 1980 AND LOGISTICS Honorable Alan Cranston Chairman Committee on Veterans' Affairs United States Senate Washington, D.C. 20510 Dear Mr. Chairman: Title 38, United States Code, Sectipn 1642 requires that the Department of Defense and the Veterans Administration submit to your committee annually a report on the status of imple- mentation of the Post-Vietnam Era Veterans' Educational Assist- ance Act of 1976. The requested report entitled, "Third Annual Report to the Congress on the Post-Vietnam Era Veterans' Educational Assistance Program," is enclosed. It discusses program imple- mentation and operation within the Department of Defense. The Veterans Administration has previously submitted a report to you which describes their management of the program. The two submissions are compatible and may be combined to form a joint report. I hope that the Committee finds the report useful in its consideration of this important program. Sincere ly , Robert Pine, Jr. Assistant Secretary of Defense (MRA&L,) Enclosure As Stated 2-i PAGENO="0086" PAGENO="0087" 73 PREFACE On October 15, 1976, the Post-Vietnam Era Veterans' Educational Assistance Act of 1977 was enacted under Title IV of Public Law 94-502. The Act terminated eligibility for the GI Bill (Chapter 34 of Title 38, United States Code) for individuals entering active duty after December 31, 1976, and established the Post-Vietnam Era Veterans' Educational Assistance Program (VEAL') under Chapter 32 of Title 38, United States Code. Servicemembers who are eligible for benefits under VEAP may voluntarily contribute from $50 to $75 per month toward their post- service education fund. After completion of the initial tour of obligated service or six years in the active forces (whichever is less), the Veterans Administration matches the servicemember's contribution on a two-for-one basis if the individual enrolls in an approved educational program. The maximum contribution by servicemembers is $2,700 which, matched with $5,400 of Veterans Administration funds, provides a total of $8,100 for the veteran's educational expenses. The Secretary of Defense is authorized to provide additional VEAP benefits as a recruiting or retention incentive. During 1979 the Department of Defense tested enhanced VEAP incentives ("kickers') in the Army and the Navy. Under this test, servicemembers who met specific enlistment requirements established by the Department of Defense could receive up to $6,000 in additional VEAP funds. A revised and expanded test of the VEAL' "kicker'S was implemented in 1980 and is scheduled to continue through the year. The Veterans Administration and the Department of Defense share responsibility for the management of VEAP. Eligibility for participation in VEAP is extended to active duty personnel in the U.S. Coast Guard, the U.S. Public Health Service, the National Oceanic and Atmospheric Administration and military personnel in the Department of Defense. This report responds to the requirements specified in Title 38, United States Code, Section 1642, that a report be submitted annually to the Committees on Veterans' Affairs of the Senate and the House of Representatives. Section one of this third annual report describes the administration of the Chapter 32 program by the Veterans Administration and was previously submitted by that agency. Section two of the report (contained herein) addresses the operation of VEAP within the Department of Defense and its components. 2-ui PAGENO="0088" PAGENO="0089" 75 INT1~ODUCTION AND SUMMARY Section. 1601 of Title 38, United States Code lists three `purposes" of the Post-Vietnam Era~Veterans' Educational Assistance Program (VEAP): (1) to provide educational assistance to those men and women who enter the Armed Forces after December 31, 1976, (2) to assist young men and women in obtaining an education they might not otherwise be able to afford, and (3) to promote and assist the all-volunteer mil- itary program of the United States by attract- ing qualified men and women to serve in the Armed Forces. VEAP was thus established to continue the long tradition of providing service veterans with readjustment assistance in their transition from military to civilian life. At the same time, VEAP was designed to serve as a recruiting tool or an "educational incentive" which would enhance the ability of the Armed Forces to recruit highly qualified and well-motivated personnel. The role of an "educational incentive" extends beyond the initial recruiting process. Educational incentives should contribute not only to the attractiveness of the Armed Forces as an employer, but also to the general appeal of military ser- vice as an alternative activity for a wide cross section of American youth. Further, these benefits should ensure that qual- ified servicemembers are not compelled to leave the military in order to pursue their educational goals. This means that the "educational incentive" must be more than just a lure or recruit- ing "carrot." The benefit must fulfill the aspirations of mili- tary personnel by providing adequate opportunities for educational advancement and a means for personal and professional growth. In so doing, the benefit must achieve sufficient credibility over time to attract a continuing supply of American youth to military service. Thus, from the perspective of the Department of Defense, there are two equally important aspects to VEAP: (1) its role as an enlistment incentive for military-age youth (as measured by its effects on recruiting results), and (2) its role as an educational assistance program for servicemembers (as measured by its overall value to individuals and its relationship to organizational effectiveness). The Department of Defense study plan, submitted to Congress in the Joint Implementation Report of the Veterans Administration and the Department of Defense (April 1977), established a con- tinuing evaluation of VEAP both from the standpoint of its 1 PAGENO="0090" 76 effect on recruiting and its performance as an educational assistance program. The comprehensive study of yEA? was under- taken by the Department of Defense in order to develop a basis for evaluating the final results of the five-year VEAP "experi- ment." (New enrollments in VEAP will no longer be authorized after December 31, 1981 unless the President recommends to Congress before June 1, 1981, and Congress approves, that the program be continued. In the event that VEAP is continued be- yond 1981, program funding responsibility is scheduled to shift from the Veterans Administration to the Department of Defense.) The present report sets the stage for further discussions con- cerning the future of VEAP by bringing together the sum of in- formation on VEAP gathered to date by the Department of Defense. Summ~~y Chapter 1 reports on the status of VEAP during 1979 and summarizes comments on the third year of program operation sub- mitted by the various Services. * All Services continued to highlight VEAP in their recruiting literature (in varying degrees) and to provide in-service information and counseling pro- grams for personnel who are eligible to participate in yEA?. * The Army discovered some problems in its accounting system, and the Air Force received numerous inquiries concerning eligibility for GI Bill (Chapter 34) benefits. Both of these Services reported that the administrative problems had been resolved. * All Services found the need for some modification in the structure of the program. Recommendations to enhance the attractiveness of VEAl' centered on two potential changes in the program: (1) an increase in the monetary value of the benefit and (2) elimination of restrictions on participa- tion and use of the benefit. Chapter 2 presents the results of the third annual study of VEAP participation conducted by the Department of Defense. Data on the numbers of VEAP participants, patterns of participation over time, suspensions and disenrollments, and the demographic characteristics of enlisted personnel who enroll in yEA? are analyzed and discussed. The results show the following: * Participation in VEAP by enlisted personnel has in- creased each year since 1977. * Overall, 201,734 enlistees (about one out of every four eligible enlistees) and 2,099 officers enrolled in yEA? between 1977 and 1979. The cumulative VEAP 2 PAGENO="0091" 77 participation rates for enlisted personnel through 1979 are as follows: Cum. Participation Rate Service (Percent) Army 30.2 Navy 27.7 Marine Corps 18.5 Air Force 7.3 TOTAL DOD 23.3 * A substantial number of servicemembers waited until their second or third year of service before they enrolled in VEAP. * As in previous years, the $50 per month minimum contribution was the most popular option in 1979, with more than half of all enlisted VEAP participants electing to contribute at this level. About one out of three new pairticipants in 1979 contributed at the maximum level of $75 per month. * Although there were differences by Service, males and females were proportionately represented among VEAP participants in total DoD. * The participation rates among the white/non- Spanish group were disproportionately low in all Services except the Air Force. All cate- gories of racial/ethnic minorities in all Services (with the exception of blacks in the Air Force) participated at rates above those of their white/non-Spanish counterparts during the period 1977-1979. * Enlisted personnel with a high school diploma or GED certificate participated in VEAl' at rates slightly above those of their counter- parts who did not graduate from high school. Individuals with some college education (but no degree) had the highest relative partici- pation rates. * Individuals in Category I had the highest participation rates of those in all mental categories. Accessions in Category II also participated at rates slightly above the total participation rate. * There was considerable evidence this year that some servicemembers did not participate 3. PAGENO="0092" 78 in VEAP because of personal financial constraints. For example, married enlisted personnel participated at rates well below the total participation rate in all Services. Moreover, a demographic analysis of of VEAP discontinuances revealed that racial/ethnic minorities, married personnel with dependents, and persons who chose the $50 per month option were overrepresented among those who "voluntarily" sus- pended their contributions or disenrolled from the program. * Of all enlistees who enrolled in VEAP since 1977, approximately two out of three were still in the program as of the end of December 1979. * There was a sharp decrease in voluntary continu- ation by individuals at the thirteen-month mark (especially in the Army where accounting system problems were responsible for a large proportion of discontinuances). Also, it was found that the likelihood of voluntary continuation in VEAP de- creased as the duration of an individual's active participation increased. Chapter 3 briefly describes the VEAP incentive ("kicker") test and summarizes the results of the test in the Army (through November 1979). Analysis of initial results from the VEAl' "kicker" test show the following: * All test areas with experimental recruiting options had slightly more high-quality male enlistments than the control test area (in which no experimental recruiting options were offered). * The two-year enlistment option produced a slight increase in the overall supply of high-quality male recruits. * European assignment restrictions provided a disincentive for enlistment in the Army. * Thus far, the VEAl' "kicker" (at levels between $2,000 and $6,000) has demonstrated only modest drawing power. Chapter 4 summarizes the preliminary results of the Depart- ment of Defense VEAP surveys (including separate surveys of active and inactive/former VEAl' participants). The results of initial analyses of these surveys reveal the following: * There has been considerable movement by eligible enlisted personnel into, out of and, sometimes, back into the program. PAGENO="0093" 79 Chapter 1 THE STATUS OF VEAP DURING 1979: SUMMARY OF SERVICE COMMENTS As in previous years, there was considerable variation among the Services in both the emphasis placed upon VEAP as an enlistment incentive and the interest shown by eligible accessions. Because of these differences, each Service was again asked to prepare a statement for this report. The Services were requested to include the following information: (1) a review of outreach activities during 1979, especially new activities, including advertising and efforts to provide information to servicemembers; (2) a discussion of any problems encountered during~ 1979 and actions taken to resolve these problems (for major unsolved problems, a discussion of the implications for the future operation of VEAP); (3) a de- scription and summary of any in-house and/or Service-sponsored research and analysis relating to VEAP; and (4) recommendations, if any, for program improvements. This chapter provides a summary of Service comments on these topics. 1.1 OUTREACH ACTIVITIES The Services have continued the series of outreach activities described in the first and second annual reports to Congreps on VEAP. Prospective military entrants are first introduced to VEAP through a range of recruiting programs. Further, each of the four Services has an information program to ensure that all eli- gible recruits are made fully aware of their educational benefits and have ample opportunity to enroll in VEAl'. Recruiting Programs Armed Forces recruiting and advertising materials incorporate frequent references to the educational opportunities available through military service, and the Services continue to highlight VEAl' in their recruiting literature. Because of the differing recruiting needs of the separate Services, however, there is some variation in the manner and extent to which VEAP is presented in advertising and promotional campaigns. In 1979, the Army incorporated VEAl' and VEAP "kicker" offers (see Chapter 3) with major recruiting programs such as the Delayed Entry Program (DEP) and the two-year enlistment option test. These advertising efforts used a variety of public media. (During the Second Quarter of FY 1980, a major advertising effort was under- taken to promote the VEAP-with-"kicker" enlistment option.) The Navy also included information on VEAP in a number of recruiting publications during 1979. For example, the Navy featured VEAl' in "A Guide To Navy Educational Opportunities" (a publication for distribution by recruiters), `Navy Career Guide-- 1979-1980" (provided to civilian educators and counselors as well as Navy commands), "The Navy Adventure" (a guide to Navy 1-1 PAGENO="0094" 80 opportunities), and `Navy Campus" (a recruiting/advertising handout). In addition, a recently published manual, "Navy Recruiters' Back- ground Guide to the Navy Campus," is used by recruiters to brief prospective enlistees about VEAP and other educational benefits associated with service in the Navy. And, a comprehensive recruit- ing handout, entitled "Could You Use $8,100 to Further Your Educa- tion?," specifically addresses ttie positive aspects of VEAP participation. The Marine Corps reports no advertising activities or recruit- ing programs specifically aimed at publicizing VEAP. The Air Force produced a film in 1979 which focuses on service benefits and entitlements. This film highlighted yEA? as a signif- icant benefit of service in the Air Force. Thirteen hundred copies of the film were distributed to Air Force recruiting offices for use in counseling potential recruits. In addition, VEAP was men- tioned in the following Air Force advertising materials: "Science and Engineering Brochure," "Air Force Advantage Brochure," "NPS Brochure," and the "Delayed Enlistment Fact Folder." In-Service Programs All new recruits are briefed on VEAP at the Armed Forces Examining and Entrance Stations(AFEES) prior to entering active duty. At that time, the recruits are required to read and sign Part I of DD Form 2057, "Contributory Educational Assistance Program -- Statement of Understanding." If the individual is eligible to receive a VEAP "kicker," the amount of the additional entitlement and the qualifying conditions of service are also noted on Part I of DD Form 2057. During reception station processing or at the first duty station, recruits are again briefed on the program and given an opportunity to initiate a YEA? savings account. The re- cruit records his or her decision on Part II of DD Form 2057. All Services continued to provide in-service information and counseling programs for officers and enlisted personnel who were eligible to participate in VEAl'. These programs are described in the first and second annual reports to Congress on VEAP. The Services likewise continued to publicize YEA? through local in- stallation media. To ensure that information presented to new recruits is consistent, accurate, and complete, the Army is currently produc- ing a standardized video tape presentation on YEA? for use by all Services. 1-2 PAGENO="0095" 81 1.2 REPORTED PROBLEMS A potential problem noted in last year's report to Congress on VEAP was the high proportion of Army mmebers who suspended their active participation in theprogram after contributing for the mini- mum required period of twelve months. It now appears that this apparent "trend' in voluntary discàntinuance was partly due to the Army's use of definite term allotments (set at the minimum required term of twelve months). Thus, the:contributions of many Army participants were automatically stopped when they failed to renew their VEAP allotments after twelve months. The Army has now converted VEAP allotments to an indefinite term system. In addition, the Army prints notices on the Leave and Earning Statements (LESs) of VEAP participants two months before their allotment expires in order to allow sufficient time for changes. A remark on the status of the individual's VEAP account also appears on the LES every six months. The Army reports that there may be an administrative problem in the VEAP "kicker" program. Between January 1 and September 30, 1979, approximately 7,000 soldiers eligible to receive VEAP "kickers" entered the Army. Yet, during the same period, only 1,000 soldiers initiated allotments that were coded as being eligible for VEAP "kickers." This suggests that either (a) six out of every seven soldiers eligible for VEAP "kickers" failed to enroll in basic VEAP (a requirement of the "kicker" program), or (b) persons who are eligible for VEAP "kickers" were not being credited with their additional benefit. In January 1980, the Army initiated procedures to ensure that VEAP participants who are eligible for "kickers" receive proper credit on their VEAP accounts. During the early months of 1979, the Air Force reports that it received numerous inquiries (primarily through legislative channels) concerning the eligibility of individuals for GI Bill (Chapter 34) benefits. On July 30, 1979, the Veterans Administra- tion issued to all of its regional offices a policy statement which established the DD Form 4C as documented evidence on which to base entitlement fon the GI Bill. This document is only used in cases of delayed entry into the active force (based on enlistment con- tracts signed prior to January 1, 1977), and it is retained in the individual's personnel records. Since the issuance of the policy statement, all such related questions have been resolved without further difficulty. The Navy and the Marine Corps report that they encountered no specific VEAP problems during 1979. 1-3 PAGENO="0096" 82 1.3 OTHER.SERVICE COMMENTS Related Research and Analysis The Marine Corps and the Air Force report that they have conducted no formal research studies or surveys concerning experiences with VEAP in their respective Services. During 1979; the Department of Defense tested the two-year enlistment option and enhanced VEAP incentives in the Army and the Navy. The year-end results of this test are reported in Chapter 3. Recommendations for Program Improvements In the Department of Defense Educational Incentive Study (February 9, 1980), each of the four Services formally commented on VEAP. The Army recommended, once again, that the limits on VEAP contributions be widened from $50-$75 per month to $25-$l00 per month. The Army also recommended that VEAP be made a "more attractive incentive" through the following changes: (1) increase the government matching rate (on a variable basis, depending on skill requirements, up to 5-to-i), (2) increase the individual's maximum contribution from $2,700 to $4,000, (3) add government educational grants to the accounts of VEAP participants, (4) per- mit the transfer of VEAP benefits to dependents in return for reenlistment in selected skills, and (5) provide interest on the individual's VEAP savings (at Series E Bond rates). The Navy recommended a reduction of the minimum required VEAP contribution to $25 per month. As a retention incentive, the Navy proposed a $2,000 VEAP "kicker," to be offered at each of four, four-year reenlistment points. Further, the Navy suggested that VEAP funds be made available for the education of the dependents of VEAP participants who successfully complete twenty years of service. The Marine Corps and the Air Force concluded that VEAl' was not an effective recruiting tool, and the Air Force recommended consideration of a noncontributory replacement program for VEAl'. In the statements submitted for this report, the Services reiterated their previous recommendations. The Army. added that it supported an extension of VEAl' through FY 1985, and strongly~ endorsed the retention of the VEAl' "kicker" as an educational incentive for the early l980s (in the event that Congress does not establish a noncontributory educational assistance program). The Navy stated that it supported the recommendations made by the Department of Defense in the Educational Incentives Study, ~and added first-term use of VEAP benefits to its list of suggested changes. 1-4 PAGENO="0097" 83 The Marine Corps added its support to the suggested revision of contribution limits ($25-to-$l00 per month), the allowance for first-term use of benefits, and inczeases in the individual's maximum contribution level (above $2,700). The Marine Corps also proposed a provision for prepayment of individual contributions using money paid to individuals for enlistment or reenlistment bonuses, and recommended DoD-wide advertising of VEAP and DoD- wide standardized "kickers." The Air Force reaffirmed its position which advocates the replacement of VEAP with a noncontributory program, but further observed that VEAP's effectiveness as an enlistment incentive could be enhanced through several program modifications. According to the Air Force, these include the creation of new contribution limits ($25-to-$lOO per month), allowance for use of benefits during the first term of enlistment, the provision of 100 percent DOD tuition assistance (the present maximum level of DOD in-service tuition assistance is 75 percent) to servicemembers who are con- tributing to VEAP, and the extended use of VEAP "kickers." If implemented, the Air Force states, these changes would call for a reassessment of the current position on VEAP. In suxrunary, all Services find the need for some change in the structure of the program. Suggestedmodifications.reflect the differing perspectives of the Services, but there are some areas of general agreement. Recommendations to enhance the attract- iveness of vEAP center on two potential changes in the program: (1) an increase in the monetary value of the benefit and (2) elimination of restrictions on participation and use of the benefit. All Services see the need to widen the limits on monthly contributions and to permit greater flexibility in the timing and use of educational assistance. (Draft legislation which would lower the minimum TEA? contribution to $25 per month and increase the maximum contribution to $100 per month has been submitted to Congress. The Department of Defense continues to support this legislation.) Furthermore, all Services have recommended ways to increase the level of assistance and all endorse the continued testing of TEA? "kickers." 1-5 66-396 0 - 80 - 7 PAGENO="0098" PAGENO="0099" 85 Chapter 2 STUDY OF VEAP PARTICIPATION The Department of Defense has compiled detailed statistics on servicemembers who enrolled in VEAP as part of its continuing study of VEAP participation. This year, statistical analysis focused on enrollment and discontinuance patterns over time, the contribution levels of participants, and enlisted VEAP participation rates by selected demographic characteristics. 2.1 DATA SOURCES AND DEFINITIONS Data Sources Information identifying and describing VEAP participants was obtained from the accounting and finance centers of the Services. Demographic data on VEAP participants and eligibles were obtained from the Department of~Defense Master/Loss File and the U.S. Army Recruiting Command, (USAREC) First Examination and Accession File. Definitions Persons entering military service on or after January 1, 1977 have the right to enroll in VEAP at any time during their service on active duty. During calendar year 1977, over 367,000 enlisted service- members (non-prior service) entered active duty. Approximately 93,000 enlisted entrants that year signed an enlistment contract (under the Delayed Entry Program [DEP)) prior to January 1, 1977, and were thus eligible for educational benefits under the "GI Bill" (Chapter 34 of Title 38, United States Code). Another 9,000 enlisted entrants in 1977 were ineligible reservists. The remaining total of approximately 265,000 enlisted servicemembers were defined as "eligible" to enroll in VEAP. During 1978 and 1979, a combined total of approximately 600,000 non-prior service enlisted personnel~ were identified as eligible for VEAP benefits. The precise totals used in the present analysis are presented in Table 1 on the following page. Officers were not included in the demographic analyses because of their relatively small ni,imber. In 1977, a total of 177 officers initiated a VEAP savings account. In 1978, 824 officers enrolled in VEAP. And, during 1979, 1452 officers, or approximately 1.6 percent of all new VEAP participants that year, enrolled in the program. Officers represent only 1.2 percent of all service per- sonnel who ever enrolled in VEAP since 1977. 2-1 PAGENO="0100" 86 Table 1. Enlisted Personnel Eligible to Enroll in VEAP by Year of Entry into Military Service and Military Service (Number) Eligible Enlisted Personnel Year of Entry Into Military Service Military Service -- l977~ 1978 1979 1977-1979 Army 119,889 119,700 142,268 381,857 Navy 64,077 63,965 62,931 190,973 Marine Corps 32,410 37,899 38,182 108,491 Air Force 48,536 66,325 67,829 182,690 TOTAL 264,912 287,889 311,210 864,011 5~cludes ineligible reservists and persons who entered active duty in 1977 under Delayed Entry Program (DEP) enlistment agreements signed before January 1, 1977. For the purpose of this analysis, VEAP participants include all enlisted personnel who ever enrolled in VEAP (unless otherwise noted) during the specified period. Thus, individuals identified as 1977, 1978, or 1979 participants are those persons who enrolled for the first time during the indicated calendar year. (Duplicate records on persons who disenrolled and then re-enrolled are not included.) 2.2 VEAP PARTICIPATION THROUGH 1979 Numbers and Rates of Participation Participation in VEAP by enlisted personnel has increased each year since 1977. In 1978, the number of enlistees initiating a VEAP Savings account (71,419) increased by 78 percent over the previous year (40,312). In 1979, VEAP participation increased again by over 26 percent. Indeed, during 1979, the number of enlistees enrolling in VEAP for the first time (90,003) represented 45 percent of the total number of VEAP participants since 1977 (201,734) A closer look at patterns of VEAP participation over the course of the program reveals that a substantially large number of service- members wait until their second year of service before they start a VEAP savings account. As shown in Table 2, approximately 18 percent of all new VEAP enrollments (VEAP Starts) in 1978 were by individuals who entered military service in 1977. Similarly, 27 percent of all VEAP starts in 1979 were by enlisted accessions from the previous two years. This emerging pattern of delayed participation in VEAP is under- standable in light of the following considerations: (1) some service- members cannot afford to set aside the minimum monthly contribution of $50 on entry-level enlisted pay, while others simply choose to 2-2 PAGENO="0101" 87 Table 2. Year of First VEAP Contribution (VEAP Starts) by Year of Entry into Military Service for all Enlisted VEAP Participants Through 1979 All Services Corsbined Year of Enlisted VEAP Participants Entry into Year of First VEAP Contribution (VEAP Starts) Military 1977 1978 1979 1977-1979 Service Number Percent Number Percent Number Percent Number Percent 1977 40,312 100.0 12,915 18.1 6,208 6.9 59,435 29.5 1978 -- -- 55,887 78.2 18,005 20.0 73,892 36.6 1979 -- -- -- -- 62,283 69.2 62,283 30.9 Unknown -- -- 2,617 3.7 3,507 3.9 6,124 3.0 TOTAL 40,312 100.0 71,419 100.0 90,003 100.0 201,734 100.0 wait until they are earning more; (2) some servicemembers voluntarily decide to limit their participation or later decide to take advantage of their entitlement to educational assistance; (3) many first-term enlisted personnel have four-year active- duty obligations and the maximum VEAP benefit can be earned ifl a minimum of three years (while VEAP benefits cannot be used during the servicemember's initial term of active duty). It can be seen in Tables 3 through 6 that there are certain differences in the extent of delayed participation within the different Services. In the Army, for example, where the vast majority of first-term enlistees are under three-year obligations, there is a lower incidence of delayed participation than in the other Services. On the other hand, over three-quarters of all Air Force enlisted personnel who signed up for VEAP during 1979 were accessions from the previous two years. And, similarly, al- most 40 percent of all 1979 VEAP starts in the Marine Corps were by persons who entered military service in 1977 or 1978. The actual participation rates for each group of annual accessions (as of December 31, j~79)~ displayed by year of VEAP start, can be seen in Figure 1.- The Army and the Navy continue 1/ Due to missing data and errors on the accession file, between 3 and 4 percent of those servicemembers who signed up for VEAP in 1978 or 1979 could not be identified according to their date of entry into active military duty (see Tables 2-6). To account for this discrepancy in the computation of participation rates, un- identified cases were distributed on a proportional basis among the three accession groups. Note also that the "participation rates" used here are the percentages of all eligible enlisted personnel in each category who ever enrolled in VEAP. These participation rates do not include data on personnel attrition or status changes in program participation (i.e., individual disenrollments or suspensions of contributions). 2-3 PAGENO="0102" 88 Table 3. Year of First VEAP Contribution (YEA? Starts) by Year of Entry into Military Service for all Enlisted VEAP Participants Through 1979 Service: Army Enlisted VEAP Participants Year of First VEAP Contribution (VEAl' Starts) 1977 1978 1979 Number Percent Number Percent Number Percent 24,509 100.0 5,417 13.3 2,050 4.1 -- -- 33,849 82.9 6,092 12.1 - - - - 39,984 79.7 Year of Entry into Military ~ervic~' 1977 1978 1979 Unknown TOTAL Year of Entry into Military Service 1977 1978 1979 j-9;j-1979 Number Percent 31,976 27.2 39,976 34.6 39,984 34.6 3,587 100.0 115,488 100.0 Unknown -- *-- 1,553 3.8 2,034 TOTAL 24,509 100.0 40,819 100.0 50,160 Table 4. Year of First VEAP Contribution (VEAP Starts) by Year of Entry into Military Service for All Enlisted VEAl' Participants Through 1979 Service: Navy Year of 1977 Number 12,753 100.0 Enlisted VEAP Participants -- First VEAl' Contribution (VEAl' Starts) 1978 1979 1977-1979 - Number Percent Number Percent Number Percent 3,540 17.1 1,428 7.4 17,721 33.5 -- -- 16,484 79.5 3,608 18.7 20,092 38.0 -- -- -- -- 13,549 70.0 13,549 25.6 3.9 1,464 2.8 100.0 52,826 100.0 12,753 100.0 705 3.4 759 20,729 100.0 19,344 2-4 PAGENO="0103" Table 5. Year of First VEAP Contribution (VEAP Starts) by Year of Entry into Military Service for All Enlisted VEAP Participants Through 1979 Service: Marine Corps Enlisted VEAP Participants Year of First VEAP Contribution (VEAP Starts) 1977 1978 1979 ~77~l979 Number Percent Number Percent Number Percent Number Percent 2,568 100.0 1,068 20.6 1,089 8.8 4,725 23.5 -- -- 3,917 75.7 3,710 30.1 7,627 38.0 -- -- -- -- 7,026 57.0 7,026 35.0 -- -- 192 3.7 503 4.1 695 3.5 2,568 100.0 5,177 100.0 12,328 100.0 20,073 100.0 Table 6. Year of First VEAP Contribution (VEAP Starts) by Year of Entry into Military Service for All Enlisted VEAP Participants Through 1979 Service: Air Force Enlisted VEAP Participants Year of First VEAP Contribution (VEAP Starts) 1977 1978 1979 1977-1979 Number Percent Number Percent Number Percent Number Percent 482 100.0 2,890 61.6 1,641 20.1 5,013 37.6 -- -- 1,637 :34.9 4,595 56.2 6,232 46.7 -- -- -- -- 1,724 21.1 1,724 12.9 -- -- 167 3.5 211 2.6 378 2.8 482 100.0 4,694 100.0 8,171 100.0 13,347 100.0 2-5 89 Year of Entry into Military ~rvic~ 1977 1978 1979 Unknown TOTAL Year of Entry into Military Service 1977 1978 1979 Unknown TOTAL PAGENO="0104" 90 Figure 1. VEAP Participation Rates of Eligible Enlisted Accessions by Year of Entry Into Military Service and Military Service Participation 0 Rate (Percent) ~ 1977 VEAP Starts ______ 1978 VEAP Starts - :~:~:~: 1979 VEAP Starts 2-6 PAGENO="0105" 91 to have the greatest relative rates of participation among enlisted personnel. However, during 1979, the participation rate by first- year accessions remained about the same in the Army and declin~d somewhat in the Navy. On the other hand, as seen in Figure 1, the participation rate by first-year accessions in the Marine Corps increased remarkably from a rate of 10.7 percent in 1978 to 1.9.1 percent in 1979. At the same time, the rate of participation by 1978 Marine Corps accessions almost doubled during 1979. Participation in the Air Force continues to remain relatively low in comparison with the other Services--although it is noteworthy that the Air Force shows the greatest relative increase in VEAP participation by second and third-year accessions. Cumulative VEAP participation rates for enlisted personnel by Military Service are presented in Table 7. Overall, about one in Table 7. Cumulative VEAP Participation Rates for Enlisted Personnel by Military Service and Total DoD (Percent) Enlisted Personnel Cumulative VEAP Participation Rates Military Service 1977 1978 1979 Army 20.4 27.3 30.2 Navy 19.9 26.1 27.7 Marine 79 110 185 Corps Air 1.0 4.5 7.3 Force TOTAL DoD 15.2 20.2 23.3 four eligible enlisted servicemembers has initiated a VEAP savings account since the inception of the program. In the Army, about one out of every three eligible enlistees has signed up for VEAP. It is apparent from these cumulative rates that the great increase in participation during 1978 stablized somewhat in 1979. The notable exception here is the Marine Corps, where the relative rate of increase in 1979 surpassed the comparable rate of increase in 1978. ?mount of Monthly Contribution As in previous years, the distribution of participants according to the amount of first monthly contribution was bimodal, with the peaks being at the minimum ($50) and maximum ($75) contribution levels (Table 8). The $50 minimum contribution continued to be the 2-7 PAGENO="0106" 92 most popular option among VEAP participants in all Services except the Air Force. More than half of all Air Force participants in 1979 elected to contribute at the $75 maximum level. This finding supports the understanding that Air Force personnel, with longer terms of enlistment, are opting to delay participation in vEAP and to contribute generally higher monthly amounts. Since 1977, a greater percentage of VEAP participants have decided each year to contribute at the maximum level. This in- crease in the percentage of individuals at the maximum contribution level coincides with a proportional decrease in participants who elect to contribute at the minimum level. Table 8. Distribution of Enlisted VEAP Participants by Amount of First Monthly Contribution and Military Service (Percent) Enlisted VEAP Participants Amount of First Monthly Contribution Military Service $50 $55 $60 $65 $70 $75 TOTAL 1977 62.0 1.6 3.7 1.6 0.4 30.7 100.0 1978 52.9 2.0 5.7 2.1 0.8 36.5 100.0 1979 52.2 2.2 5.0 2.3 0.8 37.5 100.0 1977 57.0 1.8 12.8 3.2 0.7 24.4 100.0 1978 61.4 2.1 5.7 1.5 0.5 28.8 100.0 1979 59.7 1.3 5.0 1.4 0.5 32.1 100.0 Marine Corps 1977 63.9 0.2 11.3 0.3 0.1 24.3 100.0 1978 61.9 2.9 5.4 2.0 0.6 27.1 100.0 1979 60.1 3.2 5.9 2.0 0.8 28.0 100.0 Air Force 1977 40.0 1.0 5.3 3.0 1.8 48.9 100.0 1978 41.6 1.2 4.6 1.7 : 0.8 50.1 100.0 1979 39.5 1.2 4.6 1.6 1.1 52.0 100.0 TOTAL DOD 1977 60.3 1.6 7.1 2.0 0.5 28.5 100.0 1978 55.3 2.1 5.6 1.9 0.7 34.5 100.0 1979 53.7 2.1 5.1 2.0 0.8 36.3 100.0 2-8 PAGENO="0107" 93 Demographic Characteristics VEAP enlisted participation rates were also computed for the Services and total Department of Defense according to sex, racial! ethnic group, education, nental category, and marital status. Number of dependents, an indicator of an individual's financial needs and the ability or inability to set aside VEAP contributions, was analyzed in the two previous annual reports. Due to com- puterized reporting system changes, accurate statistics on the number of dependents declared by 1979 VEAP participants were unavailable for the present study. Participation rates for the selected demographic characteristics are presented for 1979 accessions and total eligible accessions (1977-1979). The separate participation rates for 1977 and 1978 accessions are not presented in thisreport. Detailed analyses of participation during these specific years can be found in the first and second annual reports to Congress on VEAP. Sex Enlisted VEAP participation rates according to sex are shown for 1979 accessions and the total eligible population in Table 9. In 1977, participation among females lagged behind that of males. In 1978, total participation rates (with differences by Service) among males and females was about the same. The 1979 data for total DOD indicate that males and females were once again equally represented among VEAP participants. In both the Army and the Marine Corps, women were found to participate at higher rates than those of men. This is in contrast to the Navy, where the participa- tion rates among men continue to exceed those of women. Table 9. Enlisted VEAP Participation Rates by Sex and Military Service for 1979 Accessions and Total Eligible Accessions (1977 Through 1979) (Percent) Array Navy Marine Corp! Air Force Total DoD Sex 1977- 1979 1977 1979 1977- 1979 1977-- 1979 1977 19 1979 1979 1979 1979 1979 Male 27.9 29.2 24.1 28.3 18.6 18.3 2.5 7.3 20.7 23.2 Fetnale 35.6 36.9 11.1 19.8 27.3 22.8 3.0 7.3 20.5 23.5 TOTAL 29.0 30.2 22.2 27.7 19.1 18.5 2.6 7.3 20.6 23.3 2-9 PAGENO="0108" 94 Racial/Ethnic Group Enlisted VEAP participation rates by racial/ethnic group are presented in Table 10. As in previous years, the participation rates among the white/non.~Spanish group were below the respective total participation rates in all Services except the Air Force. Minorities, on the other hand, were generally overrepresented among yEA? participants. During the period since the inception of VEAP in 1977, all categories of racial/ethnic minorities in all Services (with the exception of blacks in the Air Force) have participated at rates above those of their white/non~.Spanish counterparts. Table 10. Enlisted VEAP Participation Rates by Racial/Ethnic Group and Military Service for 1979 Accessions and Total Eligible Accessions (1977 Through 1979) (Percent) Racial/ Ethnic Group* 1979 Navy 1979 Marine 1979 Corps ~ Air Force 1979 Total DoD 1979 White/Non Spanish White/ Spanish 26.5 33.3 27.1 40.4 21.0 . 19.7 25.9 34.5 18.2 13.5 17.9 20.6 2.7 1.6 7.5 9.4 18.1 31.3 20.8 31.6 . Black 31.9 32.8 27.0 33.6 22.0 19.3 2.0 5.5 26.4 27.6 Other 47.7 44.0 48.2 40.1 21.8 23.0 4.8 10.8 37.2 34.4 TOTAL 29.0 30.2 22.2 27.7 19.1 18.5 2.6 7.3 20.6 23.3 *Racjal/ethflic group was determined by identifying Spanish surnames and combining surname information with race. 2-10 PAGENO="0109" Table 11 shows enlisted VEAP participation rates by education (i.e., educational attainment at time of enlistment) and Military Service for 1979 accessions and the total population of eligible enlisted personnel. Enlisted accessions with a high school diploma or GED certificate generally participate in yEA? at rates slightly above those of their counterparts who have not graduated from high school. High school graduates also participate at rates slightly higher than those of college graduates. Since 1977 VEAP participants have more or less represented a cross section of the educational distribution of eligible accessions. However, recent statistics show that individuals with some college, although small in number, are clearly overrepresented among VEAP participants in all Services. Table 11. Enlisted VEAP Participation Rates by Education and Military Service for 1979 Accessions and Total Eligible Accessions (1977 - 1979) (Percent) * - Army Navv~ Marine Corps Air Force Tota 1 DoD Education 1979 1979 1979 1979 1979 1979 Less Than High School 22.2 24.4 23.3 25.2 15.2 14.4 1.6 4.4 20.3 22.0 Graduate High School Diploma Graduate 32.8 32.4 22.0 27.6 21.5 ~ 20.1 2.3 7.2 20.9 23.3 or GED Some College 44.6 41.5 26.0 37.1 26.6 28.8 5.1 11.8 27.5 32.3 (No Degree~ College Graduate or Post- 34.9 32.7 18.7 26.6 18.9 ~ 26.2 7.8 9.8 17.1 21.5 Graduate . TOTAL 18.5 2.6 7.3 20.6 23.3 29.0 30.2 22.2 27.7 19.1 2-11 95 Education PAGENO="0110" 96 Mental Category All applicants for enlistment are tested for their mental aptitude. Aptitude is determined from the combined scores of three subtests (word knowledge, arithmetic reasoning, and spatial perception) on the Armed Services Vocational Aptitude Battery (ASVAB). These scores are then used to classify applicants into one of five so-termed categories (Category I through V). Those in Categories I and II are above average in aptitude; those in Category III (subdivided into Categories lila and Ilib) are average; those in Category IV are below average, but still eligible for enlistment; and those in Category V are at the very bottom of the scale and not eligible to join the Services. ASVAB percentile scores for the mental categories are distributed in the following manner: Category Percentile Score I 100-93 II 92-65 lIla 64-50 IlIb 49-31 IV 30-10 V 0-9 As shown in Table 12, individuals in Category I generally have the highest participation rates. This holds true for all Services except the Navy, where the rates for Category IV person- nel exceed those of the other categories. Indeed, among 1979 accessions in total DoD, Category IV personnel are the most overrepresented group in VEAP. Accessions in Category II tend to participate at rates slightly higher than the total participation rate. This is especially evident in the Army. Yet, accessions in Categories lila and IlIb exhibit no similar tendency. It should be noted that the distribution of participants by mental category (as well as by education) for the Army, the Navy (to a lesser degree), and total DoD may be somewhat "biased' as a result of the 1979 VEAP "kicker" test. VEAP "kickers" (described in Chapter 3) were offered exclusively to high school graduates in Categories I through lila (in certain occupational specialties), and the entitlement to VEAP "kickers" is contingent upon enrollment in the basic program. Therefore, the participa-~ tion rates for individuals in Categories I through lila may be inflated by virtue of the added incentive. Marital Status Enlisted VEAP participation rates by marital status are pre- sented in Table 13. These data are consistent with previous findings concerning this variable. Married enlisted personnel continue to participate at rates well below the total participa- tion rate in all Services. 2-12 PAGENO="0111" 97 Table 12. Enlisted VEAP Participation Rates by Mental Category and Military Service for 1979 Accessions and Total Eligible Accessions (1977 Through 19791 (Percent). Army Navy Marine Corps Air Force Total DoD Mental Category 1979 ~ 1979 ~ 1979 1979 ~ 1979 I 43.6 42.6 23.7 28.6 26.5 29.0 5.0 12.8 24.2 28.5 II 35.3 35.2 22.1 28.1 21.4 22.3 3.0 9.0 20.3 24.1 lIla 29.2 29.5 20.5 26.7 18.2 17.8 2.0 6.1 18.1 21.0 IlIb 26.2 27.1 23.7 28.0 18.1 16.0 1.4 4.3 21.7 23.0 IV 28.4 29.4 26.6 29.6 17.3 15.9 0.0 5.1 27.1 27.9 TOTAL 29.0 30.2 22.2 27.7 19.1 18.5 2.6 7.3 20.6 23.3 Table 13. Enlisted VEAP Participation Rates by Marital Status and Military Service for 1979 Accessions and Total Eligible Accessions (1977 Through 1979) (Percent) Army Navy Marine ~ Air Force Total DoD Marital Status 1979 1979 1979 1979 1979 Single 30.2 31.7 22.8 28.6 19.4 18.9 2.8 7.9 21.5 24.4 Married 18.0 16.8 7.8 7.6 9.5 7.6 1.2 3.0 11.5 11.3 TOTAL 29.0 30.2 22.2 27.7 19.1 18.5 2.6 7.3 20.6 23.2 2-13 PAGENO="0112" 98 2.3 VEAP SUSPENSIONS AND DISENROLLMENTS Table 14 presents data on enlisted VEAP discontinuances and continuation rates for original VEAP enrollees. The data are grouped to show the continuation patterns for enlisted personnel who enrolled in VEAP during each three-month period since the beginning of the program. As Table 14 shows, two out of three (65.5 percent) enlistees who initially enrolled in VEAP between 1977 and 1979 were still making contributions as of December 31, 1979. Of the 69,555 enlistees who stopped making VEAP payments, 30,520 (43.8 percent) were no longer in military service, while 39,135 servicemembers (56.2 percent) remained on active duty. Since individuals who separate from military service stop making VEAP contributions by virtue of their release from active duty, they are categorized as `involuntary discontinuances." Persons who stop making VEAP contributions and remain on active duty are categorized as "voluntary discontinuances." It is apparent from the participation statistics presented in Table 14 that "voluntary" continuation by original enrollees decreases as the duration of VEAP participation increases. By the end of 1979, the voluntary continuation rate for enlisted personnel who initially enrolled in VEAP during 1977 was 49.1 percent. About two out of three (68.6 percent) enlistees who signed up in 1978 and over 93 percent of those who signed up in 1979 were still making contributions as of December 31, 1979. As seen in Table 15, there are differences in the voluntary continuation patterns among enlisted personnel in the different Services. The Army and Navy--with cumulative VEAP participation rates of 30 percent and 28 percent, respectively (see Table 7)-- have the two lowest voluntary continuation rates. On the other hand, the Marine Corps and the Air Force, with respective cumu- lative participation rates of 18.5 percent and 7.3 percent, have noticeably higher continuation rates. Voluntary continuation rates by length of VEAP participation for the Services are displayed in Figure 2. It can be seen that a sharp decline in voluntary continuation occurs after the twelve- month mark in the Army, Navy, and Marine Corps. This sudden drop in active participation after twelve months is especially apparent in the Army. Indeed, as observed in Chapter 1, the Army's use of a definite-term allotment system (set at the minimum required term of twelve months) was responsible for many "voluntary" discontinu- ances by Army participants at the thirteen-month point. Survey data (reported in Chapter 4) suggest that over 20 percent of all Army participants who stopped making VEAP payments between 1977 and 1978 had their allotments automatically cut off--without their knowledge or permission--as a direct result of the Army's use of the definite-term allotment system. 2-14 PAGENO="0113" 99 Table 14. ENLISTED VEAP DISCONTINUANCES RATES FOR ORIGINAL VEAP ENROLLEES OF ORIGINAL ENROLLMENT (As of December 1979) AND CONTINUATION BY PERIOD Period of Original Original Enrollees Enrollment (Number) Discontinuances Original Enrollees Still Making Contributions Number Percent Voluntary Continuation RateC (Percent) Separateda Rema4.ned 00b Active Duty . 1977 . Jan-Mar 2,822 1,452 1,041 329 11.7 24.0 Apr-Jun 8,410 3,493 2,912 2,005 23.8 40.8 Jul-Sep 14,332 3,876 5,288 5,168 36.1 49.4 Oct-Dec 14,748 3,259 5,142 6,347 43.0 55.2 TOTAL 1977 40,312 12,080 14,383 13,849 34.4 49.1 i978 Jan-Mar 14,552 3,390 4,722 6,440 44.3 57.7 Apr-Jun 13,814 2,906 4,266 6,642 48.1 60.9 Jul-Sep 22,597 3,463 6,049 13,085 58.0 68.4 Oct-Dec 20,456 2,613 4,195 13,648 66.7 76.5 TOTAL 1973 71,419 13,372 19,232 39,815 55.7 68.6 1979 ` Jan-Mar 18,751 2,154 2,437 14,160 75.5 85.3 Apr-Jun 17,959 1,726 1,594 14,639 81.5 90.2 Jul-Sep 28,897 1,503 1,217 26,177 90.6 95.6 Oct-Dec 24,396 685 272 23,439 96.1 989 TOTAL 1979 90,003 6,068 5,520 78,415 87.1 93.4 TOTAL 201,734 30,520 39,135 132,079 65.5 77.1 (a) Also includes those who were absent without leave and deceased. Individuals who have stopped contributing and are no longer on active duty are termed "involuntary discontinuances." (b) Includes all individuals who ever discontinued active participation (dis- enrollment or suspension of contributjDns) and were still on active duty as of December 1979. These persons are termed "voluntary discontinuances." Note that data on enrollments and discontinuances do not include those who reenroll in VEAP. (c) Voluntary continuation rate is the percentage of original enrollees (still on active duty) who have remained active participants as of December 1979, computed as follows: f~unther of Original Enrollees_Still Making Contributionsi >~ 100 LNumber of Original Enrollees Still in Service J (i.e., Original Enrollees minus Separated Discontinuances) 2-15 66-396 0 - 80 - 8 PAGENO="0114" 100 Table 15. ENLISTED VEAP ~DISCONTINUANCES AND CONTINUATION RATES FOR ORIGINAL VEAP ENROLLEES BY SERVICE (As of December 1979) Original Discontinuances Enrollees Voluntary Still Making Continuation Original Remained 0% Contributions Ratec Service Enrollees Separateda Active Duty Number Percent (Percent) Army 115,488 20,472 25,228 69,788 60.4 73.4 Navy 52,826 6,827 10,356 35,643 67.5 77.5 Marine 20,073 1,974 1,979 16,120 80.3 89.1 ~~ce 13,347 1,247 1,572 10,528 78.9 87.0 TOTAL DOD 201,734 30,520 39,135 132,079 65.5 77.1 (a) Also includes those who were absent without leave and deceased. Individuals who have stopped contributing and are no longer on active duty are termed involuntary discontinuances." (b) Includes all individuals who ever discontinued active participation (dis- enrollment or suspension of contributions) and were still on active duty as of December 1979. These persons are termed "voluntary discontinuances." Note that data on enrollments and discontinuances do not include those who reenroll in ¶TEAP. (C) Voluntary continuation rate is the percentage of original enrollees (still on active duty) who have remained active participants as of December 1979, computed as follows: 1~umber of Original Enrollees Still Making Contributionl ~ 100 Number of Original Enrollees Still in Service L.(i.e., Original Enrollees minus Separated Discontinuances) 2-16 PAGENO="0115" Voluntary Continuation Ratea 101 10 12 14 16 18 20 22 24 26 28 ~0 32 34 36 Length of Participation in Monthsb a Voluntary Continuation Rate rNumber of Original Enrollees Still Making CoT~ribution~ ~ 100 L~~umber of Original Enrollees Still in Servic~ J b For all original enrollees (enlisted personnel) through December 1979. Figure 2. VOLUNTARY CONTINUATION RATES BY LENGTH OF PARTICIPATION IN MONTHS 2-17 Army Navy - Marine Corps Air Force 35. PAGENO="0116" 102 VEAP voluntary discontinuances" and those who remained ac- tive participants through December 1979 were compared according to their demographic characteristics. The comparative analysis of demographic characteristics showed that `voluntary discomtin- uances" were generally similar to those who maintained active VEAP status, with the following notable exceptions: -"Voluntary discontinuances" in the Navy and, especially, in the Marine Corps were relatively more likely to be high school drop-outs at the time of their enlistment. -"Voluntary discontinuances" in all Services were relatively more likely to be: male, married with dependents~/, and a racial/ethnic minority (especially Hispanic). Furthermore, it was found that persons who "voluntarily" discontinued active participation tended to initially contribute at lower monthly levels than those who continued to make contri- butions. For example, close to 60 percent of all "voluntary discontinuances" initially contributed at the minimum required level of $50 per month, compared to 50 percent of those service- members who maintained active VEAP status through December 1979. 2.4 SUMMARY AND CONCLUSIONS Participation in VEAl' by enlisted personnel has increased each year since 1977. During 1979, 90,003 enlisted personnel-- representing 45 percent of all VEAl' participants since 1977 (20l,734)--enrolled in the program for the first time. Program statistics show that those who decide to partici- pate in the program usually initiate a VEAl' savings account during their first year of military service. However, many eligible enlisted personnel choose to postpone their enrollment in the program. In fact, over 18 percent of all new VEAl' enroll- ments through 1979 were by enlisted personnel who had already been on active duty for one or two years. Postponement of par- ticipation is especially apparent in the Air Force and the Marine Corps, where 76.3 percent and 39.9 percent, respectively, of all new VEAl' enrollments during 1979 were by accessions from the previous two years. The Army and the Navy continue to have the greatest cumula- tive participation rates among the Services at 30.2 percent and 27.7 percent, respectively. Overall, about one out of every four eligible enlisted servicemernbers has initiated a VEAl' savings account since the start of the program. ~JThis demographic analysis uses marital status and number of dependents as they appear in the Service accession data files. Since marital status and dependents are subject to change over time, a more current measure of comparison can be fo~ind in the DOD VEAl' survey results (Chapter 4). 2-18 PAGENO="0117" 103 There are suggestions this year, as in previous years, that some servicemembers do not participate in VEAP because of per- sonal financial constraints. For instance, the $50 per month minimum required contribution continued to be the most popular option among VEAP participants. Married enlisted personnel con- tinued to participate at rates well, below the total participation rate in all Services. Moreover, a demographic analysis of VEAP discontinuances revealed that racial/ethnic minorities, married personnel with dependents, and persons who chose the $50 per month option were overrepresented among persons who "voluntarily" suspended their contributions or disenrolled from the program. On the other hand, the program may be reaching at least some of those who are not otherwise able to afford an educa- tion." For example, each year since the start of the program, participation rates among racial/ethnic minorities--many of whom are from the lower socioeconomic strata-- generally have been above those of white/non-Spanish servicernembers. Participation rates this year indicate that participation in VEAP is attractive to the higher quality servicemember. Enlisted personnel with a high school diploma or GED certif i- cate generally participate in VEAP at rates slightly above those who have not graduated from high school. At the same time, individuals with some college education (but no degree) and those who are in Mental Category I are clearly overrepre- sented among VEAP participants. (However, it should also be pointed out that servicemembers in Mental Category IV are like- wise overrepresented among VEAP participants in total DoD). The analysis of VEAP disenroliments/suspensions reveals a sharp decrease in voluntary continuation by individuals at the thirteen-month mark (especially inthe Army). Furthermore, the likelihood o~ voluntary continuation in VEAP decreases as the duration of an individual's active participation increases. In total DoD, about half of all persons who signed up for VEAP in 1977 (and who remained on active duty) were still actively par- ticipating in the program as of the end of December 1979--compared to 68.6 percent of those who signed up in 1978 and 93.4 percent of those who signed up in 1979. 2-19 PAGENO="0118" PAGENO="0119" 105 Chapter 3 THE VEAP INCENTIVE (`KICKER") TEST RESULTS Section 1622(c) of Chapter 32, Title 38, United States Code, authorizes the Secretary of Defense, "to contribute to the fund of any participant such contributions as the Secretary deems necessary or appropriate to encourage persons~ to enter or remain in the Armed Forces." This authorization was not used prior to 1979. In January 1979, at the request of Congress, the Department of Defense implemented a test of the two-year enlistment and expanded VEAP incentives in the Army and the Navy. (The Marine Corps was subsequently included, but only in the two-year enlistment test.) In order to evaluate the cost-effectiveness and relative appeal of expanded VEAP incentives, Department of Defense contributions (or VEAP "kickers") were offered in conjunction with various en- listment options, at variable levels, to high school graduates in Mental Categories I through lila, and only in selected occupa- tional specialties. Between June and December 1979, VEAP "kickers" were increased and offered on a limited scale as part of a "test- within-a-test" of enhanced educational benefits in the Army. (This expanded VEAP incentive is called the "super VEAP kicker.") During 1980, the Army is testing the VEAl' "kickers" on a nationwide basis. Table 16 shows the chronology of the VEAP "kicker" test along with the various experimental options avail- able to qualified recruits in the Army. Since the Navy test began later than the Army's, more detailed analysis of the Navy experi- ment is necessary before reliable estimates of the recruiting re- sponse to the various enlistment options can be reported. This discussion therefore concentrates on the Army experience alone. 3.1 TEST DESCRIPTION The 1979 Army test included three recruiting options: 1. VEAl' "kickers." Since Congress intended that educational assistance benefits for post-Vietnam era veterans be contributory, VEAP "kickers" are earned by the enlistee only through participa- tion in the basic program. VEAl' "kickers" are transferred into the participant's VEAP account (maintained by the Veterans Admin- istration) when the individual applies for the basic VEAP funds. VEAP savings and government assistance are then disbursed to the participant in equal monthly installments, according to the basic program formula for payment. 2. The two-year enlistment option. This option was avail- able only to high quality recruits, i~n selected military occupa- tional specialties (primarily combat arms) in about 70 percent of the country. 3-1 PAGENO="0120" Table 16. CHRONOLOGY AND DESCRIPTION OF POTENTIAL EDUCATIONAL BENEFITS UNDER VEAP AND TUE VF.AP INCENTIVE TEST IN TIlE ARMY Chronoloqv Potential Educational Benefits Maximum VA Enlistment Personal Match~g~ Term* Contribution Awaid $2700 $5400 N/A $8100 VEAl' Plus VEAP Kicker (Test: Phase 1) Jan. Dec. 1979- 1979 2 3 4 years years years + $1800 2700 2700 $3600 5400 5400 $2000 3000 4000 $7400 $11,100 $12,100 VEAl' Plus `Super" VEAP Kicker (Test: Phase Modified) 1, June Dec. 1979- 1979 2 3 4 years years years + $1800 2700 2700 $3600 5400 5400 $4000 5000 6000 $9400 $13,100 $14,100 VEAl' Plus VEAl' Kicker (Test: Phase 2) Dec. Dec. 1979- 1980 2 3 4 years years years + $1800 2700 2700 $3600 5400 5400 $2000 4000 6000 $7400 $12,100 $14,100 *Note: The required period of active duty for basic VEAP eligibility is 180 days. However, an individual must serve at least 3 years (and contribute at the maximum level) to accumulate maximum benefits. Participants in the incentive test programs qualify for VEAP "kickers" on the basis of a contractual ebl.igation to serve a specified term of enlistment. VEAP Proaram VEAP Alone 1977-1981 3 or more years DoD Total VEAP P~~IEle Incentive Accumulation I. PAGENO="0121" 107 3. European assiynments. In some test areas, the two-year option and the VEAP "kicker" were linked to mandatory European assignments. This option was added to the Army test in order to study whether the placing of a constraint on a recruit's location preferences would stimulate European enlistments without seriously affecting the overall enlistment response. (Mandatory European assignments were included only in Phase 1 of the test.) The Army test design is depicted in Table 17. The Army test "Areas" shown in Table 17 are the primary units of analysis in the experiment. These "Areas" include combinations of regions served by the Armed Forces Examining and Entrance Stations (AFEES). The groups of AFEES included in each "Area" were carefully selected to reflect geographical dispersion and balance in terms of pre- experimental recruiting performance characteristics and local re- cruiting environments (e.g., recruiting results, market potential, enlistment propensity, and economic factors related to local labor markets). The recruiting options used in the 1979 Army test were de- signed to attract high-quality recruits into critical skills. In order to measure the changes in recruiting performance across test areas resulting from the experimental incentives and combinations of options, the number of high quality en- listments during the experimental period was compared with the corresponding number of enlistments during 1978. The analysis concentrated on the enlistment response to the options among high-quality males only. 3.2 TEST RESULTS Some preliminary results of the 1979 Army VEAP "kicker" test (through November) are displayed in Table 18. The largest increase in high-quality male enlistments (5.5 percent in Test Area #4) resulted from combining the VEAP "kicker" with an enlistment of three or more years in which the European assignment was optional. The smallest recruiting response (-2.2 percent) occurred in test Area #lA, where European assignments were required, and two-year enlistments and all VEAP "kicker" options were available (including the "super VEAP "kicker"). All test areas with experimental recruiting options had rela- tively more high-quality male enlistments than Control Test Area #6, in which no experimental recruiting options were offered. However, every test area which included mandatory European assign- ments still showed an overall decrease in recruiting results from the previous year. This is in contrast to the test areas which did not include mandatory European assignments, where slight in- creases occurred in the number of high quality male enlistments. These data thus suggest that European restrictions act to reduce or dampen the "attractiveness" of other recruiting options. The combined recruiting response in all VEAP "kicker" test areas was -0.3 percent. While this represents a decrease from 3-3 PAGENO="0122" 108 Table 17. VEAP INCENTIVE TEST DESIGN IN THE ARMY Test Area ~9erimental Recruiting Options Available #1A All options restricted to European assignment: * Two-year enlistments * VEAl' "kickers" of $2,000, $3,000, and $4,000 for two-year, three-year, and four-year enlistments * "Super VEAl' kickers" of $4,000, $5,000, and $6,000 for two-year, three-year, and four- year enlistments beginning June 1979 #lB All options restricted to European assignment: * Two-year enlistments * VEAP "kickers" of $2,000, $3,000, and $4,000 for two-year, three-year, and four-year enlistments #2 No requirement for European assignment: * Two-year enlistments * VEAl' "kickers" of $2,000, $3,000, and $4,000 *for two-year, three-year, and four-year enlistments #3 All options restricted to European assignment: * VEAl' "kickers" of $3,000 and $4,000 for three-year and four-year enlistments #4 No requirement for European assignment: * VEAl' "kickers" of $3,000 and $4,000 for three-year and four-year enlistments #5 All options restricted to European assignment: * Two-year enlistments (no "kicker") * VEAl' "kickers" of $3,000 and $4,000 for three-year and four-year enlistments #6 None 3-4 PAGENO="0123" 109 Table 18. NUMBER OF HIGH-QUALITY MALE ENLISTMENTS IN THE ARMY BY TEST AREA GROUP High-Quality Male Enlistments Percent Standard Test Area Group In The Army (Number)* Increase Error Jan-Nov Jan-Nov Two-Year Test Areas 1978 1979 #1A (Europe required; "kickers' and "super 3580 3500 -2.2 2.4 kickers" available) #1B (Europe required; 6022 5980 -0 7 1 8 "kickers" available) #2 ("kickers" 1959 1985 1.3 3.2 available) #5 (Europe required; 1512 1493 -1 3 3 6 "kickers" available) ______ ______ ______ TOTAL 13073 12958 -0.9 1.2 Other VEAP "Kicker" Test Areas #3 (Europe required) 1388 1383 -0.4 3.8 #4 1371 1447 5.5 3.8 TOTAL 2759 2830 2.6 2.7 All VEAP "Kicker" Test Areas - Europe only #1, #3, #5 12502 12356 -1.2 1.3 - Europe Optional #2, #4 3330 3432 3.1 2.4 TOTAL 15832 15788 -0.3 1.1 Control Test Area #6 1174 1125 -4.2 4.2 * Includes all high-quality male enlistments from the indicated areas (not only those who enlisted under a particular option). 3-5 PAGENO="0124" 110 the comparable enlistment period in 1978, it is actually a 3.9 percent improvement over the -4.2 percent decrease in Control Test Area #6. In summary, then, the data presented here demonstrate the modest drawing power of the VEAP "kicker" (at levels between $2,000 and $6,000). In addition, the test results show that the two-year option creates only a slight increase in the over- all supply of high-quality male recruits, and European restric- tions generally provide a disincentive for enlistment in the Army. 3.3 1980 FOLLOW-UP Based on the 1979 test results~ the Department of Defense has extended the VEAP incentive test for Army combat arms en- listees through 1980. The revised test removes the European assignment restriction and enables nationwide promotion of the three and four-year VEAP "kickers." Further, the revised test design simplifies the two-year offering, enabling the Army to offer two-year enlistments without European constraints and with VEAP "kickers" in 92 percent of the country. (Eight percent of the country is maintained as a control area in which the two- year option is neither available nor advertised.) The revised test sets the two-year, three-year, and four- year VEAP "kickers" at $2,000, $4,000, and $6,000, respectively. In the 1980 four-year VEAP "kicker test, it is thus possible for some eligible recruits to accrue $17,100 in a combination of benefits: $2,700 in personal educational savings, $5,400 in the maximum basic VEAP matching funds, plus a $6,000 VEAP "kicker" for taking the four-year enlistment, and an additional $3,000 cash bonus for choosing to serve in a specified occupa- tional specialty. 3-6 PAGENO="0125" 111 Chapter 4 PRELIMINARY RESULTS FROM THE DOD VEAP SURVEYS Last year's annual report to Congress featured a study of VEAP continuation patterns through 1978. The study revealed an apparently high rate of "voluntary discontinuance," and several possible explanations were suggested. In order to determine the actual reasons for discontinuance of active participation, the Department of Defense stated that it would conduct a survey of persons who suspended their contributions and those who dis- enrolled from the programS In early 1980, the Department conducted two separate surveys as part of its continuing study of VEAP participation. The first survey, "Survey of VEAP Participants," was administered to a sample of enlisted military personnel who were actively participating in VEAP as of December 1978. This survey was designed to discover the experiences, plans, expectations and, in general, the attitudes of active VEAP participants toward the program. The second survey, "Survey of Inactive and Former VEAP Par- ticipants," was administered to a sample of enlisted military personnel who dropped out of VEAP or suspended contributions to their VEAP accounts (also as of December 1978) and who remained on active duty. This survey focused more directly on the existence of any dissatisfaction with the program and the factors behind discontinuance of active participation. This chapter presents a brief description of the surveys, a summary of the results of preliminary analyses, and some initial conclusions. 4.1 DESCRIPTION AND METHODOLOGY Two populations (based on program status as o~ December 1978) were sampled for this study: (1) active VEAP participants and (2) inactive and former VEAP participants. A random sample, stratified by Service, was selected from each population. The target samples were drawn from a special file which included VEAP program data for CY 1977 and 1978, and demographic data from the DOD Master/Loss File and the U.S. Army Recruiting Command (USAREC) First Examination and Accession File. The size of the target samples were 12,000 active participants and 5,000 inactive and former participants. (The two survey forms are reproduced and presented in the Appendix.) The surveys were mailed to the sample populations during the second week of February 1980. As of the cut-off date for accept- ing survey returns (April 4, 1980), 4,028 forms were received from active VEAP participants. Of the forms mailed to the active 4-1 PAGENO="0126" 112 participant sample, 1,476 were returned by the Postal Service as undeliverable. The adjusted response rate for this group was 40.4 percent. The survey of inactive and former VEAP participants yielded 1,167 returns by the established cut-off date, with 686 returned by the Postal Service as undeliverable. The response rate for this group was 32.6 percent. Three data files were created from the results of the two VEAP surveys, one containing the responses of active yEA? participants, a second containing the responses of inactive and former VEAP par- ticipants, and a third file combining selected data from both sur- veys. (Data on this file included the combined results of responses to 32 questions which were common to both surveys.) A preliminary analysis of the "representativeness" of the sur- vey respondents (i.e., as compared to the total sample population) indicates that there was no systematic response bias in terms of military service, age, sex, race, education, mental category, marital status, or dependents. Based on the assumption that the survey respondents are a randomly selected subgroup of the initial sample and that there was no systematic response bias, an error interval of ±1.7 percent at the 95 percent confidence level is computed for the Survey of VEAP Participants. There is an error interval of ±2.9 percent at the 95 percent confidence level in the Survey of Inactive and Former VEAP Participants. (In other words, if the same population were resampled, 95 out of 100 samples would provide responses within the range of the error intervals for the true percentage of 50 percent. Error inter- vals are smaller the further the true percentage moves from 50 per- cent. Error intervals are higher in analyses which divide the sample into the four Service strata.) 4.2 PRELIMINARY ANALYSIS OF SURVEY RESULTS The preliminary analysis of survey results included frequencies of responses to survey questions and crosstabulations of selected items on the questionnaires. In addition, selected correlations and regression analyses were performed to obtain predictors of con- tinuance in VEAP, demographic profiles of inactive/former partici- pants who suggest various program changes, and a summary description of the types of recruits who are most influenced to enlist by VEAP benefits. Further analyses and a more detailed description of the twb surveys will appear in a final report by the Department of Defense contractor, expected for release in July 1980. The following sec- tions briefly describe preliminary findings, and are presented by selected topic areas. 4-2 PAGENO="0127" 113 Program Status Changes During 1979: Population Definitions Many TEA? participants had changed their program status be- tween the time the sample files were developed (December 31, 1978) and the time the survey was administered (February-April 1980). Of the 4,028 active VEAP participants who returned their surveys before April 4, 1980 (the survey cut-off date), 840 were no longer making VEAP contributions. On the other hand, 165 of the 1,167 inactive/former participants who responded were once again making monthly contributions to their VEAP accounts. Thus, within the fourteen to sixteen month period since the data files were built, approximately 21 percent of the active VEAP participants had stopped participating--while 14 percent of the inactive/former group re- sumed active participation. For the purposes of this analysis, persons who stopped con- tributing to VEAP were taken out of the active VEAP participants data file. Active VEAP participants, therefore, are enlisted per- sonnel who were actively contributing to VEAP at the time of the survey. Inactive/former VEAP participants are enlisted personnel who had, for any period of time, stopped making nonthly contributions. The Characteristics of Inactive/Former Participants The data suggest that most individuals who stop making monthly contributions do so in order to get their savings returned. Ap- proximately two out of three (63.6 percent) persons who responded to the inactive/former survey had asked for their money back and thus dropped completely out of the program. These respondents are defined as "former" participants. The remaining individuals (36.4 percent) indicated that they "just stopped contributing" and "still plan to use the money for education." These respondents are de- fined as "inactive" participants or persons who merely suspended active participation. While 14 percent of all inactive/former respondents had already resumed activ? participation by the time of the survey, another 27 percent stated that they definitely would start making contributions again "in the future." These data suggest considerable movement intC, out of, and back into the program. Almost half (47.9 percent) of those who stopped contributing had participated for the minimum required twelve-month period be- fore making a program status change. Of the remaining inactive/ former group, 29.4 percent contributed for less than one year, and 22.6 percent made contributions for between thirteen and twenty- four months before stopping. Sixty percent of the inactive/former participants were making $50 monthly contributions when they first signed up for TEA?, while 27.2 percent were making $75 monthly contributions. Only 2.3 per- cent of the respondents indicated that they had made any change in the amount of their monthly contribution before the time they dropped out or stopped making payments. Remarkably, 3.5 percent of the re- spondents were "not sure" how much they were contributing when they 4-3 PAGENO="0128" 114 first signed up, and 5.4 percent did not know the amount of their monthly contribution when they stopped. Compared to "active" VEAP participants, the data suggest that persons who either drop out or stop making payments are: - more likely (than "active" participants) to be male and in the Army - more likely to be black or Hispanic - more likely to be a non-high school graduate or be in Mental Categories Ilib and below - 2.25 times more likely to be married and have dependents - approximately one year older, and - slightly more inclined toward longer military "careers" In addition, a greater proportion of inactive/former partici- pants (60.1 percent) initially contributed at the minimum required level of $50 per month than did those who remained in the program (47.6 percent). Compared to "inactive" VEAP participants, "former" participants (i.e., persons who asked to have their savings returned) were found more likely to be married and have dependents, black, female, a high school drop-out, in Mental Category Ilib, and stationed within the continental United States. Moreover, "former" participants were more inclined than "inactive" participants to say that they planned to remain in the military for more than one enlistment, and less certain about their future educational plans. "Reasons" for Discontinuance of Active Participation Inactive/former participants wer~ asked to select the statement which best described their main reason for dropping out of VEAP or stopping their contributions. The distribution of responses by per- sons answering this question appears in Table 19. Clearly, the most frequently mentioned single "reason" given for discontinuing VEAP participation waa "financial hardship"-- with one out of three persons (35.1 percent) selecting this re- sponse. Further analysis shows that 42 percent of those who claimed that they stopped because of "financial hardship" were married, and 50 percent had dependents. (It is also interesting to note that another 6 percent of the active VEAP participants said that they would probably stop making payments or ask for their savings back because VEAP "created a serious financial hardship.") The second most popular response, "my allotment expired," was chosen by 174 respondents (15.6 percent). Analysis shows that 171 4-4 PAGENO="0129" 115 Table 19. Main Reasons Given by Inactive/Former Participants for Dropping Out of yEA? or Stopping Their Contributions Inactive/Former Participants Main Reason for Dropping Response Distribution (Percent) Out or Stoppinct* Nlll6 Financial hardship; I could no longer afford the monthly 35.1 contributions My allotment expired--I didn't know I had to 15.6 renew it I'm not satisfied with the 13 6 program I wanted my money back for 11 6 other purposes I changed my plans 9.8 Family emergency 9.7 I saved all I needed for my 3 9 purposes I didn't want to be in the 0 7 program in the first place TOTAL 100.0 *Inactive/Former Survey Question: "Which of the following is closest to your main reason for dropping out of VEAP or stopping your contributions?" 4-5 66-396 0 - 80 - 9 PAGENO="0130" 116 of these 174 persons were in the Army--thus providing some indica- tions of the extent to which the Army's use of definite-term allot- ments affected voluntary discontinuance rates (see Chapter 1). About one out of every seven respondents (13.6 percent), claimed that "dissatisfaction" with the program led to his or her dropping out or stopping. There are only a few demographic indicators of "financial hardship" included in the survey. Nevertheless, it is clear that racial/ethnic minorities and servicemernbers with competing financial responsibilities (i.e., persons who are married and have dependents) are overrepresented among those who discontinue participation. How- ever, it should be noted that there were no significant differences between active participants and inactive/former participants re- garding the location of one's present permanent duty station (another possible indicator of an individual's personal economic situation). A statistical analysis of the combined surveys was performed to find the best predictors of voluntary discontinuance. The two best predictors of discontinuance were found to be "estimated cost of planned educational program"~J and "number of dependents." ("Age" also appeared in the Marine Corps analysis and "marital status" appeared in the Air Force analysis.) Indeed, it can be seen in Figures 3 and 4 that both the propensity to enroll in VEAl' and the likelihood of continuation decrease as the number of de- pendents increases. Thus, it would appear that there are barriers to participation in VEAl' by persons with dependents; and those who do enroll in the program show a strong tendency to discontinue active participation over time. VEAP continuation rates by "estimated cost of planned educa- tional program" (Figure 5) also fit a definite pattern--although the relationship between discontinuance and lower estimated educa- tional costs is less clear. Variations in cost estimates probably reflect different educational aspirations or expectations. Indeed, the continuation rates for those planning to attend four-year colleges and graduate schools are 14 percent higher than the con- tinuation rates of those planning to attend vocational/tedhnical schools or two-year colleges. Educational aspirations may in turn be related to socioeconomic status and, therefore, to an individual's "ability" to make the required monthly contributions. This is an area for further analysis. A comparison of the responses of inactive/former VEAl' par- ticipants and those of active participants on questions pertaining to the source of the individual's first introduction to VEAP and 1"Active and inactive/former VEAP participants were asked the following question concerning their educational plans: "How much do you think the educational program for which you are (were) saving will cost? (If you're not sure, give you best estimate.)" Seven response alternatives were offered. 4-6 PAGENO="0131" VEAP Continuation ~ttQ,l92-192& (Percent) 117 0 Number of or More Dependents Figure 3. VEAP Voluntary Continuation Rates (1977-1978) For Enlisted Personnel by Number of Dependents Figure 4. VEAP Participation Rates (1977-1978) For Enlisted Personnel by Number of Depen~fents 4-7 .6 13.3 16 12 10 8 6 U 2 C Number of Dependents PAGENO="0132" `lEAP Coirtinuation Rates,_ 1977-1978 (Percent) 80 70 60 50 L~0 30 20 10 118 Less Than $1,000 $3,000 $5,000 $7,000 $10,000 $1,000 to $2,999 Figure 5. VEAP Voluntary Continuation Rates (1977-1978) For Enlisted Personnel by Estimated Cost of Planned Educational Program persons who exercised the most influence on an individual's de- cision to enroll yielded some interesting results. As shown in Table 20, inactive/f oriner participants were less likely to say the decision to enroll was entirely their own, and more likely to state that they were "influenced" by a representative of the Armed Forces. Differences in the responses to this question were also found between "inactive" and "former" participants--with only 34.4 percen~of the "former" participants saying the decision to enroll was their own, compared to 53.1 percent of the "inactive' group. At the same time, inactive/former participants were more likely to state that they first learned about VEAP during the post- entry period. It can be seen in Table 21 that more than one out of every three inactive/former participants--as compared to about one out of two active participants--first learned about the program at his or her point of entry or later (i.e., recruit depot or first permanent duty station). Further, another 16.5 percent of those .8 25.~ 0- Cost of Planned Educa tional Program $12,000 or Nore 4-8 PAGENO="0133" 119 Table 20. Persons Who Most Influenced The Participant's Decision to Enroll in VEAP By Survey Group Survey Group Response Distribution (Percent) Person Who Most Active Inactive/Former Influenced Decision Participants Participants to Enroll in VEAP* N=3l6l Nll57 Parents 4.7 2.6 Spouse 0.4 0.3 Friends or Relatives (other than parents 1.0 0.3 or spouse) Teacher or Guidance 0 6 0 7 Counselor Recruiter 7.1 9.7 Counselor at AFEES 5.0 14.0 VEAP Counselor at Recruit 12.9 23 6 Training Center Education Counselor at the 2 1 3 4 First Permanent Duty Station Decided Entirely on 64.4 41.9 My Own Other 1.8 3.5 Total 100.0 100.0 *Survey question: "Who most influenced your decision to enroll in the VEAP program? (Mark one)" 4-9 PAGENO="0134" 120 Table 21. Place or Manner in Which Participant First Learned About VEAP By Survey Group Survey Group Response Distribution (Percent) Place or Manner in Active Inactive/Former Which Participant First Participants Participants Learned About tJEAp* N=3l72 N=ll6O Magazine or Newspapers 4.4 2.2 Television or Radio 2.2 1.8 Word of mouth--from 6 9 4 0 friends or relatives Recruiter and/or publications 32 6 from a recruiter 42.0 Military publications not 5 1 4 1 received from a recruiter AFEES 10.1 16.5 Recruit Depot or 21.6 30.1 Reception Center First Permanent Duty 4 3 5 1 Station Other 3.4 3.6 Total 100.0 100.0 *Survey Question: "Where did you first learn about VEAP? (Mark one)" 4-10 PAGENO="0135" 121 who stopped making VEAP contributions (compared to 10.1 percent of active participants) were introduced to VEAP by a counselor at the AFEES--that is, during pre-enlistment or enlistment processing. In view of the fact that VEAP is an enlistment incentive, it is surprising that such a large proportion of servicemembers-- in both survey groups--first learned about the program while they were processing to enlist or after they had actually entered ac- tive duty. Nevertheless, the combined results of Tables 20 and 21 suggest that the inactive/former participants were more inclined to make sudden decisions to enroll--based, perhaps, on limited infor- mation--and they may not have planned adequately for their extended participation in the program. Effect of VEAP on Enlistment Decision. Both active participants and inactive/former participants were asked to indicate the extent to which VEAP influenced their decision to enlist. The response frequencies to this question appear in Table 22.. Table 22. Influence of VEAP on the Participant's Decision to Enlist by Survey Group - Survey Group Response Distribution (Percent) Active Inactive/Forrier Influence of VEAP on Participants Participants Enlistment Decision* N=3157 N=ll46 No influence 41.9 57.5 Little influence, 28 7 24 3 but not much Important factor 21 9 13 7 in decision Primary reason 7.5 4.5 Total 100.0 100.0 *Survey Question: "Did the availability of educational benefits through the VEAP program have any influence on your decision to enlist?" 4-11 PAGENO="0136" 122 It is apparent from the results presented here that, for most of those surveyed, VEAP played no part or only a marginal role in their decision to enlist. Active participants attributed stronger influence to VEAP than inactive/former participants, but the retro- spective views of the latter group of respondents may have been af- fected by their current program status. Indeed, responses to survey questions of this type--because of the effects of time and complex cognitive processes--are of limited value, and they should be in- terpreted with caution. Nevertheless, a small proportion of both groups considered VEAP a "primary factor" in their decision to enlist. Among active participants, 7.5 percent selected this response, compared~to 4.5 percent of the inactive/former participants. Since the actual VEAP participation rate for all enlisted accessions during 1977-1978 was 20.2 percent, it is projected that between 7.5 and 4.5 percent of 20.2 percent, or 1.5 to 0.9 percent of all eligible accessions, may have been influenced to enlist primarily by the availability of VEAP. (This assumes that those who enlist mainly to obtain VEAP benefits enroll in the program during the early part of their first term.) In view of the amount of the basic VEAP benefit, and recog- nition of other enlistment decision factors and benefits of military service, it is unrealistic to think of VEAP as being a "primary" enlistment incentive. A better measure of influence on enlistment is the combination of responses to "important factor" and "primary reason." Still, though, less than 30 percent of the active VEAP participant sample felt that VEAP had any more than a little in- fluence ("butnotmuch") on their enlistment decision. Since VEAP participants account for 20 percent of eligible accessions--and participation in VEAP is assumed to be evidence of interest in the program--a very crude estimate is that as much as 6 percent of all eligible accessions may have been "influenced" to enlist because of VEAl'. An examination of the responses to this question also showed the following: 1. Persons planning to attend four-year colleges and graduate schools attributed much greater "influence" to VEAP than persons planning to attend other types of schools. 2. Attributed "influence" of VEAP increases in relation to increases in mental category and educational attain- ment at time-of-entry. For example, 25.2 percent of the non-high school graduates claimed that VEAP was an "important" or "primary" influence, as compared to 30.1 percent of the high school graduates and 32.5 per- cent of those with some college education. At the same time, 22.3 percent of those in Category IV said VEAP was "important" or "primary," as compared to 28.7 percent in Category III, 30.8 percent in Category II, and 34.9 per- cent in Category I. 4-12 PAGENO="0137" 123 3. The participant's "unde1~stand~ng'~ of the program at the tine of enrollment varies in relation to the attributed influence of VEAP. That is, only 15 per- cent of those who said they knew "nothing at all" about the program when they firs~t enrolled, stated that VEAP was an "impoitant" or "primary" influence. On the other hand, 43 pe~centof those who said they were "very familiar with the details of the program" claimed that VEAP was "important" or "primary." 4. Persons who said that they expected to be on active duty "for a single enlistment only" were most likely to say that VEAP was an "important" or "primary" enlistment factor. Persons planning full careers were the least likely to say VEAP was an important enlistment incentive. 5. Whites and racial and ethnic minorities attributed about the same importance to VEAP as a factor in their decision to enlist. Further statistical analysis revealed that the be~st predictor of the attributed influence of VEAP on enlistment among active par- ticipants was the estimated cost of the educational program for which the individual was saving. That is, the higher the cost of one's planned educational program, the more likely he or she would be to say that VEAP had an important effect on the decision to enlist. The second strongest predictor was level of education. Among inactive/former participants, level of education was found to be the best predictor of attributed "influence," while "estimated cost of planned educational program" was second. In order to measure the potential interest in a VEAP reenlist- ment incentive, active participants were asked the following ques- tion: "If the service were to add an additional amount of money (say, a bonus contribution) to your VEAP account for reenlisting after your first tour, how would that affect your current plans or feelings about reenlisting?" Over half (56 percent) of all respondents said they would "probably consider reenlisting" to take advantage of it, "if the amount of the bonus contribution were great enough." Approximately 37 percent of those who had earlier indicated that they planned to remain on active duty "for a single enlistment only" said they would consider reenlisting for a VEAP "bonus." And, remarkably, 85 percent of those who were "undecided" about their military plãns (33 percent of the sample) said they would consider reenlisting for additional educational assistance. Attitudes Toward the Program and Suggestions for Changes Both survey groups were asked to give VEAl' a general rating. As Table 23 shows, the program received an average rating between "good" and "fair" among both active participants and inactive/ former participants. Inactive/former participants were generally 4-13 PAGENO="0138" 124 more critical in their assessment of VEAP, with one out of five rating the program poor." - Table 23. Ratings of VEAP By Survey Group Survey Group Response Distribution (Percent) Rating of Active Participants Inactive/Former Participants Program* N3165 Nll53 1. Excellent 12.7 13.5 2. Good 47.4 35.7 3. Fair 30.7 30.3 4. Poor 9.2 20.5 Total 100.0 100.0 Mean Rating 2.36 2.57 *Survey question: "All things considered, how would you rate the VEAP program?" There are some indications that a person's rating of VEAP is affected by his or her familiarity with the GI Bill. among active participants, for example, 89 percent of those who rated VEAP either "fair" or "poor" stated in another question that VEAP was "not as good" as the GI Bill. On the other hand, 46 percent of those who rated the program "excellent" stated elsewhere that they were "not familiar" with the GI Bill program. Overall, 69 percent of the active participants considered VEAP "not as good" as the GI Bill, about 8 percent thought VEAP was "about the same" or "better," and 23 percent said they were "not familiar" with the GI Bill. It is possible that the high frequency of "poor" ratings given by inactive/former participants to VEAP reflects aspects in the administration of the program, and not the program itself. For example, personal difficulties in processing suspension/dis- enrollment or getting VEAP savings returned could affect one's view of the "program." In addition, the data suggest that one's ability to contribute affects his or her opinion of the program. For example, those who claimed that VEAP monthly contributions created "financial hardship" of any degree were about twice as likely as those who "can afford monthly contributions with no strain on my budget" to rate VEAP as either "fair" or "poor." 4-14 PAGENO="0139" 125 Statistical analysis of the responses to this question showed that the best predictor of the VEAP ratings among active partici- pants was, indeed, the statement concerning "financial hardship." The second strongest predictor was "estimated cost of planned ed- ucational program--with VEAP ratings varying from low to high, in direct relation to the participant's estimate of his or her educational expenses. ~mong inactive/former participants, the best predictor of VEAP ratings was mental category, with those in high categories giving VEAP poor ratings. The second best predictor variable was, once again, "estimated cost of planned educational program." Both survey groups were also asked to select from a structured list of possible program changes each change they considered most desirable. As shown in Table 24, only about 4 percent of each sur- vey group indicated that "no change is needed." The most frequently mentioned change among both groups was "do more to inform service- members about the program." Approximately 63 percent of each sample selected this "change." The second most popular response in both surveys was "increase the total amount a person can contribute to the program" (i.e., raise the amount of the benefit). This change was mentioned by 39.2 percent of the inactive/former participants and 59 percent of the active participants. In a follow-up question, the survey groups were asked to in- dicate the one change in the program they would most like to see. The distribution of responses to this question appears in Table 25. Most of the active participants (40.7 percent) selected "increase the total amount of money a person can contribute." The second most popular choice among active participants (26.4 percent) and the first choice among inactive/former participants (31.4 percent) was simply to "do more to inform servicemembers about the program." Providing more information is not really a "change in the pro- gram." And the fact that such a large percentage of respondents selected the option suggests that this is a major problem area in the administration of the program. The extent of the problem is perhaps best illustrated by the responses to the question , "Do you feel you understand how the program works now?" only one out of five (21.6 percent) active participants felt that he or she knew "all that I need to know about the program" (see Table 26). Con- sidering that 63.6 percent of all inactive/former participants have had their money returned and are completely divorced from the pro- gram, it is surprising that so many of this survey group (63.2 per- cent) also claimed the need to know more about VEAP. A follow-up question to "most desired change" appeared on the Survey of Inactive and Former VEAP Participants. "If such a change were made," inactive/former participants were asked, "would you consider getting back into the VEAP program or renewing your VEAP contributions?' Sixty-five percent of those who were not already contributing again replied that they definitely would consider getting back into the program. Those who said they would consider becoming active participants were proportionally represented ac- cording to the response distribution on the previous question, "most desired change." 4-15 PAGENO="0140" 126 Table 24. Possible Changes in VEAP Which Participants Consider "Desirable" by Survey Group Possible Changes Participants Consider "Desirable" * No change is needed Lower the minimum contribution (for example, to $25 per month) Raise the maximum contribution (for example, to $100 or more) Increase the total amount of money a person can contri- bute to the program Make it easier to get out of the program Allow participants to use their funds during their first enlistment Do more to inform servicemeitibers about the program Survey Group Response Frequencies (Percent) Active Inactive/Former Participants Participants N=3l84 N=ll67 4.0 4.3 11.8 47.4 59.0 12.7 * 22.5 62.8 25.7 33.3 39.2 24.4 33.2 62.5 *Survey Question: `Below is a list of possible changes that could be made in the VEAP program. Please mark each change you think would be desirable." 4-16 PAGENO="0141" 127 Table 25. The One Change in VEAP Which Participants Would Most Like to See by Survey Group Survey Group Response Distribution (Percent) One Change Active Inactive/Former Participant Would Participants Participants Most Like to See* N3143 N1l39 No change is needed 4.0 4.9 Lower the minimum contribution (for example, to $25 2.8 10.8 per month) Raise the maximum contribution (for example, to $100 14.0 10.7 or more) Increase the total amount of money a 40.7 19.8 person can contri- bute to the program Make it easier to get out of the program 4.0 8.3 Allow participants to use their funds 8.1 14.1 during their first enlistment Do more to inform servicemembers 26.4 31.4 about the program Total 100.0 100.0 *5u~7ey Question: "The same list of possible changes is repeated below. This time, please indicate the one change you would most like to see. (Mark only one item)" PAGENO="0142" 128 Table 26. Present Understanding of The Program by Survey Group Survey Group Response Distribution (Percent) Active Inactive/Former Present Understanding Participants Participants of the Program* N=3169 N=116& No, I still don't know very nuch about 17.7 22.2 the details of the program I have a better understanding of the program than when I first 60.7 41.0 enrolled, but I still need some more information Yes, I think that I know all that I 21 6 36 8 need to know about the program Total 100.0 100.0 *Survey Question: "Do you feel you understand how the program works now?" Letters From Survey Respondents The cover letters of the two questionnaires instructed survey respondents who wished to make additional comments to write these comments on a separate sheet of paper and to include it with the questionnaire. In view of the fact that letters were not actually requested, one of the more remarkable results of the survey was that 403 individuals, or about one out of every thirteen respondents, submitted letters along with their questionnaires. Because of the relative volume of unsolicited letters, an analysis of their contents was undertaken. The letters, collec- tively and individually, covered many different aspects of the program. However, the comments contained in the letters can be classified according to the following categories: 4-18 PAGENO="0143" 129 1. Appeals for information or statements concerning a personal lack of understanding of the program. Approximately 40 percent of all letters contained a request for information or a statement about the individual's own need to know more about the program. 2. General Criticisms of the Program. Many letters contained critical comments concerning the program. Most criticisms were "constructive," and most were based on personal experiences or observations. Approximately 39 percent of all letters advocated a return to the GI Bill (Chapter 34) or mentioned the "better benefits" of VEAP's predecessor. The vast majority of critical comments (appearing in 23 percent of all letters received) focused on the "small" levels of educational assistance available through VEAP. Several letters referred to the effects of inflation and the erosion of service benefits. The most popular suggestions for program changes included a return to "GI Bill" educational assistance, increases in VEAP assistance, and the provision of interest on VEAP savings to cover the effects of inflation. Ten percent of all letters offered words of praise in behalf of the program. 3. Specific Criticisms. Fourteen percent of all letters mentioned the lack of knowledge about VEAP among base or post personnel. Some letters referred to specific incidents or personal problems which were the direct result of misguidance, misinformation, or ineptitude on the part of service administrative personnel. Several individuals remarked that they did not understand what they were doing when they signed up for yEA?, and several complained that they were not aware of certain specific restrictions on the use of benefits. A number of individuals said that they saw advertisements for new VEAP "bonuses" and, between these new VEAP enlistment incentives and the GI Bill, questioned the "fairness" of their own benefits. 4. Personal Problems. Fifteen percent of all letters referred to a specific problem in getting personal savings returned. Most of these letters mentioned long delays in getting refunds (several months to more than a year). Many were severely critical--pointing out that the once urgent need for theirmoney had long since passed. Some participants included "lettersof withdrawal" and "applica- tions for refund of educational contributions" with their survey questionnaires. 4-19 PAGENO="0144" 130 Four percent of all letters mentioned a problem in "dropping out" of the program, while 3 percent claimed they en- countered problems in entering or re-entering the program and 3 percent complained that their allotment stopped without their approval. 4.3 PRELIMINARY CONCLUSIONS It is clear fromthe results of the DOD VEAP surveys that there is considerable movement by eligible enlisted personnel into, out of and, sometimes, back into the program. Program stat~s changes had occurred or were planned by approximately 35 percent of all persons who were still actively participating as of December 1978. Thirty-seven percent of those who had stopped making payments as of December 1978 either planned to start making payments again or were actively participating at the time of the survey. The data contain numerous indications that the program "favors" those who have greater educational aspirations/expec- tations (for whatever reason), those who are single and without dependents, and, in general, those who have a better "ability" to make the required monthly contributions. For example: - An individual's estimated cost of his or her planned educational program appeared as an important factor in the individual's perceived importance of VEAP as an enlistment incentive, the decision to discontinue active participation, and the individual's positive or negative rating of the program. - Inactive/former participants were more likely than active participants to be from racial or ethnic minority groups. They were also more than twice as likely to be married and have dependents. Further, as the number of dependents increases, servicemembers are found increasingly less likely to enroll in the program and, once in the program, increas- ingly less likely to remain an active participant. - The main "reason" given by enlisted personnel for dis- continuing active participation was "financial hardship." In addition, those who discontinued active participation initially contributed at lower monthly levels and usually (two out of every three cases) asked for their money back. The data suggest that VEAP plays a moderately important role in the enlistment decisions of some participants, and there is evidence that VEAP benefits are most appealing to those with at least a high school diploma and those in the higher mental categories. However, preliminary analyses indicate that VEAP alone is not a "major" enlistment incentive, even for those who decide to participate. 4-20 PAGENO="0145" 131 There is evidence, in the surveys and in letters from ser- vicemembers, of underlying dissatisfaction with both the admin- istration of the program and the program itself. Overall, active participants and inactive/former participants rated the program midway between "fair" and "good"--but only 4 percent of the survey respondents saw no need for "changes" and very few participants thought the program "measured up" to the "GI Bill." One of the most needed `changes," according to survey re- spondents, is simply to "do more to inform servicemembers about the program." Indeed, about four out of every five active par- ticipants claimed that they still did not "know all that I need to know about the program." The "need to know" about VEAP also served as a stimulus for many of those who were surveyed to write formal requests or, in some cases, appeals for more and better information on the program. 4-21 66-396 0 - 80 - 10 PAGENO="0146" PAGENO="0147" 133 Chapter 5 CONCLUSIONS AND RECOMMENDATIONS At the request of Congress, the Office of the Assistant Secretary of Defense (Manpower, Reserve Affairs and Logistics) conducted a study of current and potential educational incen- tives under the All-Volunteer Force (AVF). Conclusions about the utility of VEAP were deferred until the completion of the ongoing five-year "experiment" (including the VEAP "kicker" test). However, the Educational Incentives Study (February 9, 1980) recommended, along with several proposals for the enhance- ment of pre-service and in-service educational benefits, two specific modifications to VEAP: 1. Change the range of contribution from $50-to-$75 per month to $25-to-$l00 per month. (Although the ~ recognized that a reduction of the individual contribution level and retention of the $2-for-$l matching fund policy might reduce the educational benefit too much and thus diminish its "attractive- ness" as an enlistment incentive.) 2. Allow first-term use of VEAP benefits. (Current law prohibits use of benefits by par- ticipants until they have completed their first term of service or served six years, whichever is less. In a related area, the Department of De- fense recommended that 100 percent in-service tuition assistance be made available to first- term military personnel who participate in VEAP.) The results of analyses presented in this report on VEAP underscore the recommendations of the Educational Incentives ~ The DoD VEAP surveys, for example, show that one of the most desired "changes" in VEAP among current participants would be an increase in the maximum monthly contribution limit to $100 or more. Furthermore, a relatively large proportion of those who have stopped making VEAP payments would like to see a reduction in the minimum required monthly contribution. Statistics on enrollments, disenrollments and suspensions, and the responses to the DOD VEAP surveys reveal that VEAP is "inequitable" insofar as it bars or discourages participation by persons with competing financial responsibilities. The re- sults of analyses presented here strongly suggest that the manner of payment by participants or the level of required contributions should be modified somehow so that servicemembers may have more equal access to educational assistance under VEAP. A reduction of the required minimum monthly contribution is one way to lessen the "financial burden" ~f participation and thus make it possible for more servicemembers to take advantage of VEAP benefits. 5-1 PAGENO="0148" 134 Although the results of analyses presented in this report do not particularly support changes to allow for first-term use of VEAP benefits, they do support the need for a careful reas- sessment of the program structure as a whole and possible changes to enhance the program's overall "attractiveness." Data suggest that the program influences the enlistment de- cisions of a small subgroup of quality youth. Even though the real value of educational assistance available through VEAP has fallen considerably since 1977, participation rates increase with each passing year--and there is some evidence that service- members with advanced education and higher mental aptitude scores are attracted to the program. At the same time, (a) many high- quality servicemeinbers demonstrate no interest in the program at all; (b) voluntary continuation rates show that a majority of participants stop making contributions before they qualify for maximum benefits; (c) there is an undercurrent of "dissatisfac- tion" with both the administration of the program and the program itself among those who elect to participate; and (d) there are indications that virtually all VEAP participants see the need for some "change" or improvement in the program. One change in the program which would strengthen its appeal as an enlistment incentive and encourage greater participation is an increase in the level of educational assistance. Benefit in- creases are now being tested on a limited basis through the VEAP `kicker" experiment. The results of this experiment are expected to show whether enhanced VEAP incentives can indeed assist the AVF in attracting high quality youth to military service. An important finding in the DoD VEAP surveys concerns the expressed need by VEAP participants for more and better informa- tion on the program. In addition, the results of the two surveys suggest that a relatively large proportion of new recruits do not "learn" about VEAP before they process for enlistment or arrive at the recruit reception station. The Department of Defense will evaluate current outreach efforts and take further action to ensure that sources of infor- mation on VEAP are complete, accurate, and readily available to both potential recruits and active duty personnel. In the event that VEAP is extended beyond 1981 and the Department of Defense assumes the funding responsibility for the program, several areas in which the current law is silent will need to be clarified. For example, it is not clear whether the Department of Defense will assume the funding responsibility for all those who draw benefits after December 31, 1981 or only those who enroll in the program after that date. In the absence of any change in the current law or specific agreement between the Veterans Administration and the Department of Defense, it appears that all funding responsibility will shift to the De- partment of Defense. In addition, since the current law is silent with respect to any funding responsibilities of the 5-2 PAGENO="0149" 135 Coast Guard, the Public Health Service, or the National Oceanic and Atmospheric Administration (the uniformed members of which share eligibility for VEAP benefits), it appears that the Department of Defense will be required to assume VEAP costs for personnel in these agencies. These and other matters will have to be settled if VEAP is continued. It will thus be necessary to hold negotiations between the agencies concerned, resulting in legislative pro- posals or budget requests to Congress based on the agreed solutions. 5-3 PAGENO="0150" PAGENO="0151" 137 APPENDIX DOD VEAP SURVEY FORMS A-i PAGENO="0152" PAGENO="0153" 139 _-~...... RCS0DD.M(OT 7925 OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE WASHINGTON, D. C. 20301 MANPOWER. RESERVE AFFAIRS AND LOGISTICS SURVEY OF VEAP PARTICIPANTS The Department of Defense is conducting a survey of persons who have enrolled in the Veterans' Educational Assistance Program (VEAP). Many of the important questions to be considered in planning the future direction of VEAP can be answered only by participants in the program. We would like to learn about your experiences and expectations and, in general, what you think of the VEAP program. You were selected at random to receive a survey questionnaire. Participation in the survey is voluntary. However, only a relatively small number of VEAP enrollees were selected to take part in the survey, so every response is important. The questionnaire will only take a few minutes of your time and it will give you an opportunity to express your views on this important educational program. Please fill out the form as soon as possible and mail it in the return envelope provided. No postage is neceosary. If you would like to make more detailed comments, please write them on a separate sheet of paper and include it in the envelope with your questionnaire. Thank you for your help. NOTE The Privacy Act of 1974 (Public Law 93.573) requires that you be given the following information about this survey: AUTHORITY: The authority to solicitthe information requested in this survey isTitle 38. Section 1642 of the United States code. PURPOSE: The information obtained from the survey will be used to evaluate and improve the Post. Vietnam Era Veterans' Educational Assistance Program. USES. The information will be used for research and analysis purposes only. This survey is being conducted by the Human Resources Research Organization for the Office of the Assistant Secretary of Defense for Manpower. Reserve Affairs and Logistics. EFFECTS OF NON.DISCLOSURE: Participation in the survey is voluntary. No penalty will be imposed for failure to respond to any particular question. A-3 A PAGENO="0154" 1. Which branch of the military service are you in? Army Marine Corps Navy Air Force 2. How long do you expect to be on active duty in the Armed Forces? For a single enlistment only For more than one enlistment, but less than a full career Iless than 20 yearsl For a full career 120 years or morel Undecided 3. As of January 1980. how long had you participated in the VEAP program? One year or less More than 2 years 13 months to two years I dropped out of the program. 4. How many years (totall do you plan to contribute to the VEAF program? One year or less Until I reach the maximum amount. Two years DOES NOT AFFLY. I dropped Three years Out of the program. 5. If you plan to contribute less than the maximum total amount, what is your main reason for wanting to limit your VEAP participation? lMark one) DOES NOT APPLY, I plan to contribute the will not need the maximum amount for my purposes. My educational goals have changed. I want to use my money for other purposes. I am not satisfied with the program. I can't afford to contribute the maximum amount. Other 6. What was the amount of your monthly VEAP contribution when you first enrolled in the program? S50 570 S55 $75 S60 Not sure S65 7. What is your current monthly VEAP contribution? S50 S55 S60 565 S70 - S75 Not contributing at this time Not sure 8. Do you think you will raise or lower the amount of your monthly contribution sometime in the future? Yes, I will probably raise it. Yes, I will probably lower it. No, I will probably leave it at the current level. DOES NOT APPLY, I am not contributing now. 9. Would you say that your monthly VEAP allotment creates a financial hardship for you? No, I can afford the monthly contributions with no strain on my budget. Yes, the contributions create some financial hardship, but I can adjust to it. Yes, my VEAP contributions have created a serious financial hardship and I will probably stop making payments (bat remain in the program). Yes, my VEAP contributions have created a serious financial hardship and I will probably get out of the program and ask foe my savings back. 10. Who most influenced your decision to enroll in the VEAP program? IMark one? Parents Spouse Friends or relatives other than parents or spousel Teacher or guidance counselor Recruiter Counselor at the Armed Forces Examining and Entrance Station IAFEESI VEAP counselor at the RecruitTraintng Center Education counselor at the first oerrnanent duty station Decided entirely on my own Other 140 Ill I III~ Use No. 2 Pencil Onfy:~,,J:~~' MARKING DIRECTIONS *Use black lead pencil only (No. 2 or softer). aDo NOT use ink or ballpoint pens. *Make heavy black marks that fill circle completely (s). aErate cleanly any answer you wish to change. *Make no stray marks on the answer sheet. [~~I :5:') Directions for filling in Social Security No. 20.,E566,~? Write the number in the boxes ®®@®.D®®e rovided and blacken in the corret ndin ®0Wir,®®®W circ en e ow. xamp e A-4' -2 PAGENO="0155" 141 *JJ~ ffl~ Use No. 2 Pencil Only 11, Which of the following was the most important reason for your deciding to participate in yEAR? (Mark ooe( I probably coa(d tot afford so achieve my educational goals without it. VEAP provides a convenient way to save for my education after service. VEAP will help me to pay for voluntary education courses while I am still in the service. A military recruiter or education officer recommended that I enroll in the program. My parents, relatives, or friends recommended that I enroll in the program. Other 12. Did the aoailability of educational benefits through the VEAP program hate any influence on your decision to enlist? No, I would have enlisted even if VEAP benefits were nvt available. Yes, VEAP had a little inflveytce on my decision to enlist, but not mvch. Yes, VEAP was an important factor in my deciding to enlist. Yes, `lEAP was the 2~jpapr reason why I enlisted. 13. Where did you first learn about VEAP? (Mark one) Magazines or newspapers Television or radio Wvrd of mouth-from friends or relatives Recruiter and/or publications received from a recruiter Military publications not received from a recruiter Armed Forces Evumining and Entrance Station (AFEESI Recruit depot or reception center First permanent duty station Other 14. At the time you enrolled in yEAR, how well did you understand the program? I didn't really know anything about the program. I knew about the program, but I didn't really understand how it worked. I had a pretty good idea of what the program involved. I was very familiar with the details of the program. 15. Do you feel you understand how the program works now? No, I still don't know very much about the details vf the program. I huve a better understanding of the program than when I first enrolled, but I still need some more information. Yes, I think that I know all that I need to know about the orogram. le. What kind of educational program are you saning for? (Mark onel Not sore at this time Vocational or technical school College-two-year degree program (Associate Degree) College -four-year degree program (Bachelors Degreel Graduate or professional school (advanced degree) Other 17. How much do you think the educational program for which you are saving will cost? (If you `re not sure, give your best estimate.) Less than StOOD Sl,000 to S2,999 S3,000 to S4,999 55,000 to S6,999 18. Do you think that your VEAP funds anill cover most of your educational expenses? Yes Not sure No 19. All things considered, how would you rate the VEAP program? En cellen I Gooo 20. Have you taken or do you plan to take any off-duty voluntary education courses while in the service? (That is, courses not required as purl of your mrliturv lruining.l Yes, I have taken br I am now taking( a voluntary I have not taken a volvetury educative course yet, hut I plan lv tak ecourses. No, I clv not plait to take any voluntary education courses while in the service. 21. If you are currently enrolled in an off-duty voluntary education covrse (or courses), how are you paying the tuition fee? DOES NOT APPLY, I'm not taking any courses now. There is no tuition fee, the course is offered free. I'm receiveg tuition assistance from the service. (They pay 75'.'i of the fee I pay 25'c.i The service is puvien the entire fee for the course. I am paving the entire fee Out of my owe funds. I took out ait educationul loan to pay the tu.tion fee. Other S7,000 Iv S9,999 S10,000 toSll,999 S12,000 or more A-5 _~_ PAGENO="0156" 23. Below is a list of possible changes that could be made in the VEAP program. Please mark each change you think would be desirable. No change is needed. Lower the minimum contribution (for example, to $25 per month( Raise the maximum contribution (for example, to $100 per month or more( Increase the totajf.gjgpp.ptof money a person con contribute to the program. - Make it easier to get out of the program. Allow participants to use their funds during their first enlistment. Do more to inform servicemnmbnrs about the program. 24. The same list of possible changes is repeated below. This time, please indicate the one change you would most like to see. (Mark only one itnm( No change is needed. Lower the minimum contribution (for example, to $25 per month( Raise the maximum contribution (for example, to $100 per month or morel Increase the total amountof money a person can coxtribute to the program. Makv it easier to get out of the program. Allow participants to use their funds danng their lirnl enlistment. Do more to inform sernicemembers about the program. 25. If the scroice were to add an additional amount of money (say, a bonus contributionl to your VEAP amount for reenlisting after your first tour, how would that affect your current plans or feelings about reenlistrng? None, I plan to reenlist anyway. If toe amount of the bonus contribution were great nnough, I would probably consider reenlisting to take adxantage of :t. I would not reenlist even if a substantial sum were added to my VEAP account. To help in our analysis of the responses to this questionnaire, we need to hove a few items of background informotion. Would you please mark the appropriate boxes below to indicate your: 26. ~ l8orunder 21 19 22 20 23 28. Marital Status Single, never mareied Married 29. Number of Dependents None One Two Three 30. Race Whitn-Cavcasian Slack Negmv Otxer 31. Education (Indicate the hix'mesl level compleled.l Did not cvml:lete hcv scivol High school ec~uivmlevcv certificate IGED. for evamplel High school graduate Vocational or techv:cal school after high school Some college, but no degree -Twoyear co!lege degree Associate Degreel Four.year college degree (Bachelors Degreel Advanced degree 32. Present permanent duty station (If on bo~rd ship, indicate the locatiov of your home port.( Urm:led Stares (except Alaska or Hawaiil Asia Alaska or Hawaii Pacific Puerto Rico, other U.S. territories Other Euvope overseas location 33. Social Security Number (Write number in boxes below and, fill in corresponding circles.( 1 j~L IIL[ ~ It THANK YOU FOR YOUR HELP. PLEASE MAILTHIS QUESTIONNAIRE IN THE RETURN ENVELOPE PROVIDED. NO STAMP IS NEEDED. 142 Use No. 2 Pencil 22. Generally speaking, how do you think VEAP conrpares with the other educational assistance programs listed below? (For each program, mark the circle under the statement you agree w:th.l Not Familiar VEAF is About VEAP is with this Program Better the tame er~g as gxxcl A. The old 0.1. 9:11 Program B. The Tuition Assistance Program ISernice pays 75%; you pay 25%l Separated, Divorced or Widowed 24 25 or over 27. Sex Male Female A'-6 PAGENO="0157" 143 RCS#DD-M(Ofl 7925 OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE WASHINGTON, D. C. 20301 MANPOWER, RESERVE AFFAIRS AND LOGISTICS SURVEY OF INACTIVE AND FORMER VEAP PARTICIPANTS The Department of Defense is conducting a survey of persons who have enrolled in the Veterans' Educational Assistance Program (VEAP). Our records show that you enrolled in the VEAP program, but that you either(1 ) stopped (at some time) making payments to your VEAP account or (2) dropped out of the program altogether. We are taking a close look at VEAP now and we would like to learn about your expectations and your experiences with the program. You were selected at random to receive a survey questionnaire. Participation in the survey is voluntary. However, only about one-third of the former or inactive VEAP participants were selected to take part in the survey, so every response is important. We would like you to fill out a questionnaire even if you are actively participating in the program once again. The questionnaire will only take a few minutes of your time and it will give you an opportunity to express your views on this important educational program. Please fill out the form as soon as possible and mail it in the return envelope provided. No postage is necessary. If you would like to make more detailed comments, please write them on a separate sheet of paper and include it in the envelope with your questionnaire. Thank you for your help. NOTE The Privacy Act of 1974 (Public Law 93.573) requires that you be given the following information about this survey: AUTHORITY: The authority to solicitthe information requested in this survey isTitle 38. Section 1642 of the United States code. PURPOSE: The information obtained from the survey will be used to evaluate and improve the Post- Vietnam Era Veterans' Educational Assistance Program. USES: The information will be used for research and analysis purposes only. This survey is being conducted by the Human Resources Research Organization for the Office of the Assistant Secretary of Defense for Manpower. Reserve Affairs and Logistics. EFFECTS OF NON-DISCLOSURE: Participation in thesurvey isvoluntary. No penaltywill be imposed for failure to respond to any particular question. A-7 B 915B/2733-t~t~~-54321 PAGENO="0158" 1. Which branch of the military service are you in? C' Army 0 Marine Corps C) Naey 0 Air Force 2. How tong do you expect to be on active duty in the Armed C) For a single enlistment only C' For more than one enlistment, but less than a full career (less than 20 years) 0 For a full career (20 years or more) C Undecided 3. Are you making monthly contributions to the VEAP program at this time? ONo Cr Yes (Please unswerthe following quentionsfor the period of time you were not making VEAP contributions.( 4. How long did you make contributioev to the VEAP program before dropping out or stopping your monthly payments? Three months or less C Four to six months C Seven to 11 months Iless than a full year) 12 months lone full yearl 13 to 18 months C 19 to 23 months (less than two full yearsl 24 months (two full years) 5. Did you drop out of the program completely or did you just stop making monthly contributions? C'. I dropped out completely and asked to have my money returned. C I just stopped contributing to my account-I still plan to use the money for education. 6. Which of the following is closest to your main reason for dropping out of VEAP or stopping year contributions? Financial hardship, I could no longer afford the monthly contributions. -: i saved all I needed for my purposes. I changed my plans. I'm not satisfied with the program. My allotment expired-I didn't know) had to renew it. I didn't want to be in the program in the first place. I wanted my money back to use for other purposes. 2 Family emergency 7. If you dropped out of the VEAP program (disenrolled), who did you go to in order to get your money back? o DOES NOT APPLY. I only suspended my contributions, so I didn't ask for my money back. o My commanding officer o My unit's training NCO o The base/post education office o The base/post finance office o The Veterans Administration 0 I haven't gone to anyone yet. o I didn't know I could get my money back. o Other 8. What was the amount of your monthly VEAP contribution when you first enrolled in the program? o $50 o o 0665 o ~ o $76 o 9. What was the amount of your monthly VEAP contribution when you dropped out or stopped making payments? Os5o o 0 $60 o o $70 o 0 Not sure 10. Who most influenced your decision,to enroll in the VEAP program? (Mark one) `-0~?arents o Spouse C). Friends or relatives (other than parents or spouse) 0 Teather or guidance counselor C Recruiter 0 Counselor at the Armed Forces Examining and Entrance Station IAFEESI C'; VEAP counselor at the Recruit Training Center C Education counselor at the first permanent duty station Decided entirely on my own i Other 144 lilt 1ilt~ Use No. 2 Pencil Only :~:::::,J~" MARKING DIRECTIONS `Use black lead pencil only (No. 2 or softer). `Do NOT use ink or ballpoint pens. *Make heavy black merks that fill circle completely I *Erase cleanly any answer you wish to change. `Make no stray marks on the answer ~ Directions for filling in Social Security No. 9g,pf,qf,~. Write the number in the boxes ®®cj~sgyvj®®® provided and blacken in the corresponding *®cis®lD~tl®*® circles below )Examplel -2- PAGENO="0159" 145 UiIL~ ~ Use No. 2 Pencil Only ~":3~s. 11. Which of the following was the most important reason for your deciding to participate in VEAP? (Mark onel Cv I probably could not afford to achieve my educational goals without it. o VEAP provides a cotveniett way to save for my education after service. C VEAP will help me to pay for voluntary education courses while I am still in the service. o A military recruiter or education officer recommended that I enroll iv the program. 0 My parents, relatives, or friends recommended that I enroll iv the program. OOther 12. Did the availability of educational benefits through the VEAP program haoe any influence on your decision to enlist? 3 No, I would have enlisted even if VEAP benefits were not available. 0 Yes, VEAP had a little influence on my decision to enlist, but not much. o Yes, VEAP was an important factor in my deciding to enlist. O Yes, VEAP was the pjg~~ reason why I enlisted. 13. Where did you first learn about VEAP? (Mark one( Q Magazines or newspapers 0 Television or radio o Word of mouth-fever, friends or relatives o Recruiter and/or publications received from a recruiter 0 Military publications tot received from a recruiter o Armed Forces Examiningand Entrance Station(AFEES( o Recruit depvt or reception center o First permanent duty station o Other 14. At the time you enrolled in VEAP, how well did you understand the program? C I didn't really know anything about the program. `3 I knew about the program, but I didn't really understand how it worked. o had a pretty good idea of what the program involved. o i was very familiar with the details of the program. 15. Do you feel you understand how the program works now? 3 No, I still don't know very much about the details of the program. 0 (have a better understanding of the program than when (first enrolled, but I still need some more information. 3 Yes, I think that I know all that I need to know about the program. 3 16. What kind of educational program were you saving for? (Mark one( C Not sure at this time 0 Vocational or technical school C College-two.year degree program (Associate Degree( C: College-four.year degree program (Bachelors Degree( () Graduate or professional school (advanced drgree( o Other 17, How much do you think the educational program for which you were saving will cost? (If yvu're~eot sure, give your best estimate.( o Less than $1,000 C) $7,000 to $9,999 ~.. o $1,000 to $2,999 3 $10,000 to $11,999 o $3,000 to $4,999 3 $12,000 or more C $5,000 to $6,999 18. Do you think that your VEAP funds will cover most of your educational expenses? o DOES NOT APPLY, I withdrew the funds I had saved. 0 Yes ONo C Not sure 19. All things considered, how would you rate the VEAP program? `3 Excellent C) Good o Fair o Poor 20. Have you taken or do you plan to take any off'cluty voluntary education courses while in the service? (That is, courses not required as part of your military training.( 3 Yes, I have taken (or I am now takingl a voluntary I have not taken a voluntary education course yet, but I plan to take courses. o No, I do not plan to take any voluntary education courses while in the service. 21. If you are currently enrolled in an off'duty voluntary education course (or coursesl, how are you paying the tuition fee? o DOES NOT APPLY, I'm not taking ~ny courses now. 0. There is rio tuition fee, the course is offered free. - C I'm receiving tuition assistance from the service. (They pay 75% of the fee; I pay 25%.( ~ The service is paying the entire fee for the course. 3 I am paying the entire fee out of my own funds. I,) I took out an educational loan to pay the tuition fee. 3 Other L PAGENO="0160" 23. Belowis alistof possible changes thatcould be made in the VEAP program. Please mark each change you think would be desirable. o No change is needed. o Lower the minimum contribution (for example, to $25 per month( o Raise the maximum contribution (for example, to $100 per month or morel o Increase the total amount of money a person can contribute to the program. o Make it easier to get out of the program. o Allow participants to use their funds during their first enlistment. 0 Do more to inform servicemembers about the program. 24. The same list of possible changes is repeated below. This time, please indicate the one change you think would be best. (Mark only one item( o No change is needed. O Lower the minimum contribution (for example, to $25 per month( 0 Raise the maximum contribution (for example, to $100 per month or more( o Increase the total amount of money a person can contribute to the program. O Make it easier to get out of the program. 0 Allow participants to use their funds during their first enlistment. C) Do more to inform servicemembers about the program. 25. If such a change were made, would you consider getting back into the VEAPprogram orrenewingyour VEAPc0ntributions? O DDES NOT APPLY, I am making VEAPcontributions again. O Yes O No 26. Do you think you will get back into the VEAP program or renew your VEAP contributions in the future? Ci DOES NOT APPLY, I am making VEAP contributions again. 0 No o Yes o I'm not sure whether I will or not. To help in our analysis of the responses to thin questionnaire, we need to have a few items of background inforrnatioes. Would you please mark the appropriata boxes below to indicate your: 27. ~ 18 or under 19 20 29. Marital Status o Single, never married Cl Married 30. Number of Dependents o None o One o Two o Three 0 Four or more 31. Race ~ Whine/Caucasian C) Black/Negro o Other 32. Education (Indicate the highest level completed( o Did not complete high school o High school equivalency certificate (GED, for examplel o High school graduate o Vocational or technical school after high school o Some college, but no degree o Two.year college degree (Associate Degree( O Four.year college degree (Bachelors Degree( o Advanced degree 33. Present permanent duty station (If on board ship, indicate the location of your home port.( o United States (except Alaska &Hawaii( 0 Asia o Alaska or Hawaii 0 Pacific C Puerto Rico, other U.S. territories 0 Other C Europe overseas location 34. Social Security Number lWrite number in boxes below and fill in corresponding circles.l _____________ I I OfficeUwOrsty ®®®l®®°®®0 ®®000 ®®~®®scD®O ®®®®® ®®®I®®a®®O ®®®®® ®®~®®®®®0 ®®®®® ®®i~:4®®a®®o ®®®®® ®®~®®s®®0 ®®®®~ a ~~2'®( ®®®®® ®®~I®c~'®®C ®®®®® $ ®®u ®®®®® a ®®( ~I®~®® THANK YOU FOR YOUR HELP. PLEASE MAIL THIS QUESTIONNAIRE IN THE RETURN ENVELOPE PROVIDED. NO STAMP IS NEEDED. 146 lull ~j~' Use No. 2 Pencil 22. Generally speaking, how do you think VEAP compares with the other educational assistance programs listed below? (For each program, mark the circle under the statement you agree with.l - Nas Familiar VEAP is Abyss VEAP is with this Pragrere Better tha Sanea g~ as 000d A. The old G.I. Bill Program 0 0 0 0 B. The Tuition Assistance Program (Service pays 75%;you pay 25%( 0 0 0 0 0 Separated, Divorced, or Widowed 021 022 023 024 0 25 or over 28. Sex 0 Male 0 Female A-1O ...4... 0