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
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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)
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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
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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
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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
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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
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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
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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
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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)
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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
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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
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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)
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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17
APPENDIX A
YET MN~ ADMINI STR~TION - DOCUMENTAT ION
PAGENO="0032"
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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"
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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.
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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
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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
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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
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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
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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).
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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
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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
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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)"
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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?"
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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.
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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."
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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."
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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:
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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
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®®~®®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