Federal Benefits for Veterans and Dependents
Contents
Introduction
Who’s Eligible Wartime Service Filing a Claim Keep Important Documents Insurance Introduction in Spanish
Veterans Benefits Timetable
1. Benefit Programs for Veterans
Disability Compensation Other Disability Benefits Specially Adapted Homes Supplemental Financing Housing Insurance Automobiles or Other Conveyances Clothing Allowance Pension Improved Pension Reduction While in Nursing Home/Domiciliary Protected Pension Programs Vocational Training Aid and Attendance or Housebound Education and Training Montgomery GI Bill (Active Duty) Montgomery GI Bill (Selected Reserve) Veterans’ Educational Assistance Program (VEAP) Vocational and Educational Counseling Vocational Rehabilitation Rates for Vocational Rehabilitation Program Special Program for Veterans Rated Unemployable Special Program for Veterans Receiving Pension Home Loan Guaranties Eligibility Entitlement Financing, Interest Rates and Terms Occupancy Certification Release of Liability Repossessed Houses Life Insurance Status of Insurance Programs Servicemen’s Group Life Insurance Veterans’ Group Life Insurance Veterans Mortgage Life Insurance Income Tax Ruling Small and Disadvantaged Business Utilization Homeless Veterans Women Veterans Special Groups with Veterans Benefits
2. Benefits for Survivors
Dependency and Indemnity Compensation (DIC) Death Due to Service-Connected Disability Death Due to Nonservice-Connected Cause Reinstated Entitlement Program for Survivors Death Compensation (Before Jan. 1, 1957) Nonservice-connected Death Pension Montgomery G.I. Bill Death Benefit Survivors’ and Dependents’ Education Home Loan Guaranties
3. Burial Benefits
Burial in National Cemeteries Headstones and Markers Headstones or Markers for Memorial Plots Presidential Memorial Certificates Burial Flags Reimbursement of Burial Expenses
4. Health-Care Benefits
Hospital and Nursing-Home Care Nursing-Home Care Domiciliary Care Outpatient Medical Treatment Outpatient Pharmacy Services Outpatient Dental Treatment Persian Gulf, Agent Orange and Ionizing Radiation Beneficiary Travel Counseling for Persian Gulf Veterans Alcohol and Drug Dependence Treatment Prosthetic Services Blind Aids and Services Readjustment Counseling (Vet Centers) Medical Care for Merchant Seamen Medical Care for Allied Beneficiaries Medical Care for Dependents and Survivors
5. Overseas Benefits
6. Other Federal Benefits
Job-Finding Assistance Occupational Conversion and Training Program Reemployment Rights Unemployment Compensation Affirmative Action Job Training Partnership Act Disabled Veterans Outreach Program Employment in the Federal Government Transition Assistance Program Credit for Farms and Homes (FmHA) FHA Home Mortgage Insurance Naturalization Preference Small Business Administration Social Security Supplemental Security Income Passports To Visit Overseas Cemeteries Military Medals Commissary and Exchange Privileges Review of Discharges Military Records Correction of Military Records Death Gratuity Armed Forces Retirement Homes
7. Appeals
Board of Veterans’ Appeals U.S. Court of Veterans Appeals
8. VA Facilities -- Where To Go for Help
Index
Introduction
The surest way to obtain current information on VA benefits and claims procedures is to call the nearest VA regional office. A call to 1-800-827-1000 from any location in the United States will be automatically muted to the nearest regional office. In addition, local numbers are listed in the back of this book and in local telephone directories. Counselors can answer questions about benefits eligibility and application procedures and make referrals, when necessary, to other VA facilities, such as medical centers and national cemeteries. To assure that accurate information and courteous responses are given to the public, VA supervisory personnel occasionally monitor telephone calls. No record is kept of the callers name, address, claim or telephone number. Local phone numbers of VA regional offices in 50 states, the District of Columbia, Manila and Puerto Rico are listed in the back of this book, along with the commercial phone numbers of all VA facilities. VA facilities also are listed in the federal government section of telephone directories under Department of Veterans Affairs.
Many state governments and some municipalities operate agencies or offices devoted to administering state and local veterans programs and assisting veterans in filing claims for VA and other federal benefits. Many veterans service organizations also provide information and assistance.
VA regional offices process claims for VA benefits and administer those benefits, which include: disability compensation, pension, home loan guaranty, life insurance, education, vocational training for disabled veterans, burial allowance, and survivor’s compensation, pension and education.
VA medical center admissions offices are the immediate source for information regarding medical care eligibility, admissions procedure and scheduling. They can provide information on all types of medical care, including nursing home, dental, drug and alcohol dependency, prosthetics, readjustment counseling, and Agent Orange, radiation exposure or Persian Gulf War examinations.
VA national cemeteries or regional offices can answer questions about eligibility of veterans and dependents for burial benefits. Documentation of military service must be shown to the director of the cemetery when burial is requested. The cemetery will schedule an interment service, and provide burial and an inscribed government marker.
Who’s Eligible
Eligibility for most VA benefits is based on discharge from active military service under other than dishonorable conditions for a minimum period specified by law. Completion of at least six years of honorable service in the Selected Reserves also provides for home loan benefits for those not otherwise eligible. Men and women veterans with similar service are entitled to the same VA benefits.
The Department of Defense issues each veteran a military discharge form, DD 214, identifying the veteran’s condition of discharge--honorable, general, other than honorable, dishonorable or bad conduct.
Honorable and general discharges qualify a veteran for most VA benefits. Educational benefits under the Montgomery GI Bill, however, require an honorable discharge.
Dishonorable and some bad-conduct discharges issued by general courts martial bar VA benefits. Benefits eligibility of veterans with other bad conduct discharges and discharges described by military branches as 'other than honorable' is determined by VA. After reviewing the facts of each specific case, VA decides whether separation from service was under dishonorable or other than dishonorable conditions.
Those who enlisted in the military after Sept. 7, 1980, and officers commissioned or who entered active military service after Oct. 16, 1981, must have completed two years of active duty or the full period of their initial service obligation to be eligible for most VA benefits. Veterans with service-connected disabilities or those discharged for disability or hardship near the end of their service obligation are not held to this provision. The provision does not apply to participation in veterans insurance programs.
Veterans in prison and parolees may still be eligible for certain VA benefits. VA regional offices can clarify their eligibility.
Service in 26 organizations (see p. 35 & 36) during periods that include World Wars I and II has been certified as active military service by the Department of Defense. Members of these groups may be eligible for VA benefits. Individuals must have their service documented to obtain a discharge from Defense under honorable conditions.
Wartime Service
Certain VA benefits and medical care require wartime service. As specified in law, VA recognizes these war periods:
Mexican Border Period -- May 9, 1916, through April 5, 1917, for veterans who served in Mexico, on its borders or in adjacent waters.
World War I -- April 6, 1917, through Nov. 11, 1918; for veterans who served in Russia, April 6, 191 7, through April 1, 1920; extended through July 1, 1921, for veterans who had one day of service between April 6, 1917, and Nov. 11, 1918.
World War II -- Dec. 7, 1941, through Dec. 31, 1946. Korean Conflict -- June 27, 1950, through Jan. 31, 1955. Vietnam Era -- Aug. 5, 1964, through May 7, 1975. Persian Gulf War -- Aug. 2, 1990, through a date to be set by law or Presidential Proclamation.
Filing a Claim
Those filing a claim with VA for the first time must submit a copy of their service discharge form (DD 214), which documents service dates and type of discharge, or give their full name, military service number, branch of service and dates of service. Once a claim is filed, the veteran’s VA file number ('C' number) or Social Security number serves as the veteran’s identifier.
Keep Important Documents
The veteran’s DD 214 form should be kept in a safe, convenient location accessible to the veteran and next of kin or designated representative. The veteran’s preference regarding burial in a national cemetery and use of a headstone provided by the VA should be documented and kept with this information. The following documents, if not included in VA files, will be needed for claims processing related to a veteran’s death:
* marriage certificate for a surviving spouse or children.
* death certificate if the veteran did not die in a VA medical facility.
* children’s birth certificates for children’s benefits.
* veteran’s birth certificate for parents establishing eligibility.
Insurance
If the deceased veteran carried government life insurance at the time of death, the policy’s designated beneficiary is entitled to the proceeds. Assistance is available at VA regional offices or at 1-800-669-8477.
Informacion Para Los Veteranos De Habla Hispana y Sus Dependientes
Si necesita información o ayuda en la solicitud de los beneficios dispuestos por ley para veteranos y/o dependientes, escriba, llame o visite cualquiera de las Oficinas del Departamento de Asuntos de Veteranos que aparecen al final de este folleto, o si desea, puede ponerse en contacto con el representante de una de las organizaciones de veteranos de su localidad. Cualquier solicitud para servicios medicos puede hacerse en uno de los hospitales o clínicas externas del Departamento de Asuntos de Veteranos.
En aquellos estados donde hay una gran concentración de veteranos y dependientes de habla Hispana, las Oficinas del Departamento de Asuntos de Veteranos tienen consejeros bilingÜes que le ayudaran en la solicitud de cualquier beneficio de veterano. Ademas se encuentra disponible en las oficinas regionales del Departamento de Asuntos de Veteranos o en la Oficina Central (27), localizada en 810 Vermont Avenue, NW, Washington, D.C. 20420, un breve folleto titulado 'Sus Beneficios,' el cual puede obtenerse gratis.
Time Benefits Where to apply
90 days REEMPLOYMENT Former employer
Limited UNEMPLOYMENT COMPENSATION: State time The amount of benefit and employment payment period varies among service states. Apply soon after separation.
120 Days SGLI: (Servicemen’s Group Servicemen’s or up to Life Insurance), a five-year Group Life one year nonrenewable term policy, may Insurance, 213 if totally be converted to VGLI (Veterans Washington St. disabled Group Life Insurance). Newark, N.J. 07102-9990
Two years GI INSURANCE: Life insurance Any VA office (from date (up to $10,000) is available for of notice veterans with service-connected of VA disabilities. Veterans who are disability totally disabled may apply for a rating) waiver of premiums on these policies.
One year SUPPLEMENTAL INSURANCE: An Any VA office (from date additional $20,000 policy is of notice of available for those veterans who eligibility are under age 65, eligible for for premium waiver of premiums and have waiver) Service Disabled Veterans Insurance. However, no waiver can be granted on the additional insurance.
10 years EDUCATION: Educational assistance Any VA office from depends upon period of service. release
12 years VOCATIONAL REHABILITATION: For Any VA office (generally disabled vets, VA will pay from date tuition and fees, and the cost of of books, tools and other discharge) program expenses as well as provide a monthly living allowance. Upon completion of the vocational rehabilitation program, VA will assist in finding employment.
No time GI HOME LOANS: VA will guarantee Any VA office limit a loan for the purchase of a home, farm with a residence, manufactured home, or condominium.
Benefit Programs for Veterans
Disability Compensation
Eligibility
Monetary benefits, called disability compensation, are paid to veterans who are disabled by injury or disease incurred or aggravated during active military service in the line of duty. The service of the veterans must have been terminated through separation or discharge under conditions that were other than dishonorable. Monetary benefits are related to the residual effects of the injury or disease. The amounts of the benefits, which are not subject to federal or state income tax, are usually changed annually by Congress.
Disability compensation is paid in monthly payments. Currently these range from $85 for a 10 percent degree of disability to $1,730 for a 100-percent disability rating.
Disability Rate
10 percent $85 20 percent 162 30 percent 247 40 percent 352 50 percent 502 60 percent 632 70 percent 799 80 percent 924 90 percent 1,040 Total disability 1,730
In addition, amounts up to $4,943 per month are paid when the eligible veteran is adjudged to have suffered certain specific, severe disabilities. These are all decided on an individual basis. Federal law prohibits the award of VA disability compensation concurrently with military retirement pay, except to the extent the retirement pay is waived.
Allowances for Dependents
Veterans whose service-connected disabilities are rated at 30 percent or more are entitled to additional allowances for dependents. The additional amount, from $16 to $160 a month, is determined according to the number of dependents and the degree of disability. A disabled veteran evaluated 30 percent or more also is entitled to receive a special allowance for a spouse who is in need of the aid and attendance of another person.
Prisoners of War
Former prisoners of war who were incarcerated for at least 30 days are entitled to a presumption of service connection for disabilities resulting from certain diseases or ailments if manifested to a degree of 10 percent at any time after active service. These presumptions may be rebutted by proof of other intervening causes.
Other Disability Benefits
Specially Adapted Homes
A disabled veteran may be entitled to a grant from VA for a home specially adapted to their needs or for adaptations.
For $38,000 Grant
VA may approve a grant of not more than 50 percent of the cost of building, buying or remodeling adapted homes or paying indebtedness on those homes already acquired, up to a maximum of $38,000. Veterans must be entitled to compensation for permanent and total service-connected disability due to:
(a) loss or loss of use of both lower extremities, such as to preclude locomotion without the aid of braces, crutches, canes, or a wheelchair, or
(b) disability which includes (1) blindness in both eyes, having only light perception, plus (2) loss or loss of use of one lower extremity, or
(c) loss or loss of use of one lower extremity together with (1) residuals of organic disease or injury, or (2) the loss or loss of use of one upper extremity, which so affects the functions of balance or propulsion as to preclude locomotion without using braces, canes, crutches or a wheelchair.
For $6,500 Grant
VA may approve a grant for the actual cost, up to a maximum of $6,500, for adaptations to a veteran’s residence which are determined by VA to be reasonably necessary. The grant also may be used to assist eligible veterans in acquiring a residence which has already been adapted with special features for the veteran’s disability. In the latter situation, the amount of the grant is based on the fair market value of the existing special features, and not their cost. Veterans must be entitled to compensation for permanent and total service-connected disability due to:
(a) Blindness in both eyes with 5/200 visual acuity or less, or
(b) Anatomical loss or loss of use of both hands.
Supplemental Financing
Veterans with available loan guaranty entitlement may also obtain a guaranteed loan or a direct loan from VA to supplement the grant to acquire a specially adapted home.
Housing Insurance
Veterans with a specially adapted housing grant may be eligible for Veterans Mortgage Life Insurance.
Automobiles or Other Conveyances
Veterans and current service personnel qualify for this benefit if they have service-connected loss of one or both hands or feet, or permanent loss of use, or permanent impairment of vision of both eyes. Veterans entitled to compensation for ankylosis (abnormal immobility) of one or both knees, or one or both hips, also qualify for adaptive equipment for an automobile. There is a one-time payment by VA of not more than $5,500 toward the purchase of an automobile or other conveyance. VA will pay for adaptive equipment, and for repair, replacement, or reinstallation required because of disability, and for the safe operation of a vehicle purchased with VA assistance or a previously or subsequently acquired vehicle. To apply, contact a VA regional office or the prosthetic office at a VA medical center.
Clothing Allowance
Any veteran who is entitled to receive compensation for a service-connected disability for which he or she uses prosthetic or orthopedic appliances, including a wheelchair that tends to wear out or tear clothing, may receive an annual clothing allowance of $466. Any veteran whose service-connected skin condition requires prescribed medication that irreparably damages the veteran’s outer garments also may receive the allowance.
Pension
Eligibility
Veterans may be eligible for support if they have limited income when they have 90 days or more of active military service, at least one day of which was during a period of war. Their discharge from active duty must have been under conditions other than dishonorable. They must be permanently and totally disabled for reasons neither traceable to military service nor to willful misconduct. Payments are made to qualified veterans to bring their total income, including other retirement or Social Security income, to an established support level. Countable income may be reduced by unreimbursed medical expenses. Pension is not payable to those who have assets that can be used to provide adequate maintenance.
Improved Pension
Effective Dec. 1, 1992, the Improved Pension program provides for the following annual rates, generally payable monthly. The annual payment is reduced by the amount of the annual countable income of the veteran and the income of any spouse or dependent children.
* Veteran without dependent spouse or child, $7,619.
* Veteran with one dependent (spouse or child), $9,980.
* Veteran in need of regular aid and attendance with no dependents, $12,817.
* Veteran in need of regular aid and attendance with one dependent, $14,548.
* Veteran permanently housebound with no dependents, $9,313.
* Veteran permanently housebound with one dependent, $11,673.
* Two veterans married to one another, $9,980.
* Veterans of World War l and Mexican Border Period, add to the applicable annual rate, $1,724.
* Increase for each additional dependent child, $1,296.
Reduction While in Nursing Home or Domiciliary
When a veteran without a spouse or a child is being furnished nursing-home or domiciliary care by VA, the pension is reduced to an amount not in excess of $90 per month after three full-calendar months of care. The reduction may be delayed if nursing-home care is being continued for the primary purpose of providing the veteran with a prescribed program of rehabilitation services.
Protected Pension Programs
Pensioners entitled to benefits as of Dec. 31, 1978, who do not elect to receive pension under the Improved Pension program, will continue to receive pension benefits at the rate they were entitled to receive on Dec. 31, 1978, as long as they remain permanently and totally disabled, do not lose a dependent, or their incomes do not exceed the adjusted income limitation. The income limitation is increased annually based on changes in the Consumer Price Index.
Vocational Training
Veterans in receipt of pensions between Feb. 1, 1985, and Dec. 31, 1995, may elect to participate in a vocational training program. Under this pilot program a veteran may receive up to 24 months or more of vocational training and related services as well as up to 18 months of placement and post-placement services. Work income will affect the continuing receipt of pension.
Aid and Attendance or Housebound
A veteran who is a patient in a nursing home or otherwise determined by VA to be in need of the regular aid and attendance of another person, or is permanently housebound, may be entitled to higher income limitations or additional benefits, depending on the type of pension received.
Education and Training
VA administers a number of education and training programs for veterans, servicepersons and eligible dependents.
Montgomery GI Bill (Active Duty)
Eligibility
The Montgomery GI Bill (Active Duty), also known as Chapter 30, is a program of education benefits generally for individuals who enter active duty for the first time after June 30, 1985. Active duty for benefit purposes includes full-time National Guard duty performed after Nov. 29, 1989. The participant generally must serve continuously on active duty for three years of a three-year or greater initial enlistment or, for a lesser benefit, two years of an initial active-duty obligation of less than three years. An individual also may qualify for the full benefit by initially serving two continuous years on active duty, followed by four years of Selected Reserve service. In the latter case, the participant must enter the Selected Reserve within one year of release from active duty. The participant must meet the requirements for a high school diploma or an equivalency certificate before the first period of active duty ends. Completing 12 credit-hours toward a college degree meets this requirement. Individuals who initially serve a continuous period of at least three years of active duty, even though they were initially obligated to serve less, will be paid at the higher basic rate.
Participation Requirements
Participation in the Montgomery GI Bill requires that service-persons have their military pay reduced by $100 a month for the first 12 months of active duty. This money is not refundable. If an individual decides not to participate in this program, this decision cannot be changed at a later date. An exception is made under specific conditions for servicepersons who are involuntarily separated from active duty with an honorable discharge after Feb. 2, 1991. In many cases, those who previously decided not to participate in this program and who voluntarily separate from active duty after Dec. 4, 1991, also may now elect to participate. If the serviceperson decides to participate before separation, military pay will be reduced before separation, and education or training may take place following separation.
Vietnam Era GI Bill Conversion
Also eligible for Montgomery GI Bill benefits are those individuals who had remaining entitlement under the Vietnam Era GI Bill on Dec. 31, 1989, and served on active duty sometime during the period Oct. 19, 1984, and June 30, 1985, and continued to serve on active duty to July 1, 1988, or to June 30, 1987, followed by four years in the Selected Reserve after release from active duty. The individual must have entered the Selected Reserve within one year of release from active duty. The individual who converts from the Vietnam Era GI Bill must have met the requirements for a high school diploma or an equivalency certificate before Dec. 31, 1989. Completion of 12 credit hours toward a college degree meets the requirement.
Discharges and Separations
For the Montgomery GI Bill program, the discharge must be honorable. Discharges designated 'under honorable conditions' and 'general' do not establish eligibility for education benefits. A discharge for one of the following reasons could result in a reduction of the required length of active duty:
(a) Convenience of the government.
(b) Disability.
(c) Hardship.
(d) A medical condition existing before service.
(e) Force reductions.
(f) A medical condition which prevents satisfactory performance of duty.
Education and Training Available
The following education and training opportunities are available under the Montgomery GI Bill:
(a) Courses at colleges and universities leading to associate, bachelor or graduate degrees, and accredited independent study. Cooperative training programs are available to individuals not on active duty.
(b) Courses leading to a certificate or diploma from business, technical or vocational schools.
(c) Apprenticeship or on-job training programs for individuals not on active duty.
(d) Correspondence courses.
(e) Flight training from Sept. 30, 1990, to Sept. 30, 1994. Before beginning training, the veteran must have a private pilot license and meet the physical requirements for a commercial license. Benefits also may be received for solo flying hours up to the minimum required by the FAA for the rating or certification being pursued.
The individual also may receive tutorial assistance benefits if enrolled in school half-time or more. Remedial, deficiency and refresher training also may be available.
Payments
Veterans who served on active duty for three years, or two years active duty plus four years in the Selected Reserve or National Guard will receive $350 a month in basic benefits for 36 months. This rises to $400 effective April 1, 1993. Those who enlist for less than three years will receive $275 a month -- $325 after April 1, 1993. VA pays an additional amount, commonly called a 'kicker,' if directed by the Department of Defense. Starting with fiscal year 1994, cost-of-living increases in the basic rates will be required by law.
Work-Study
To be eligible for work-study benefits, a person must train at the three-quarter or full-time rate. Students will be paid for the first 50 hours of each work-study contract, or 40 percent of the amount specified in the work-study agreement, or an amount equal to 50 times the applicable minimum wage, whichever is less. Under this program, they may perform outreach services under the supervision of a VA employee, prepare and process VA paperwork, work at a VA medical facility, or perform other approved activities.
Period of Eligibility
For the most part, benefits under Chapter 30 end 10 years from the date of the veteran’s last discharge or release from active duty. VA can extend this 10-year period if the veteran was prevented from training during this period because of a disability or because he or she was held by a foreign government or power. The 10-year period can also be extended if an individual reenters active duty for 90 days or more after becoming eligible. Veterans serving periods of active duty of less than 90 days can qualify for extensions under certain circumstances. If the veteran’s discharge is upgraded by the military, the 10-year period begins on the date of the upgrade.
If eligibility is based on both the Vietnam Era GI Bill and the Montgomery GI Bill, and discharge from active duty was before Dec. 31, 1989, the veteran will have until Jan. 1, 2000. In most cases, VA will subtract from the 10-year period those periods the veteran was not on active duty between Jan. 1, 1977, and June 30, 1985.
If eligibility is based on two years of active duty and four years in the Selected Reserve, the veteran’s eligibility will end the later of: (a) 10 years from release from active duty; or (b) 10 years from completion of the four-year Selected Reserve obligation. This four-year obligation, however, does not apply to certain individuals discharged because of downsizing the military between Oct. 1, 1991, and Sept. 30, 1995.
Montgomery GI Bill (Selected Reserve)
Eligibility
The Montgomery GI Bill (Selected Reserve) is a program of education benefits for members of the reserve elements of the Army, Navy, Air Force, Marine Corps and Coast Guard, as well as the Army National Guard and the Air National Guard. This program also is referred to as Chapter 106. To be eligible for the program, a reservist must:
(a) have a six-year obligation to serve in the Selected Reserve signed after June 30, 1985, or, if an officer, agree to serve six years in addition to the original obligation;
(b) complete Initial Active Duty for Training (IADT);
(c) meet the requirements for a high school diploma or equivalency certificate before completing IADT; and
(d) remain in good standing in a Selected Reserve unit.
Education and Training Available
A six-year reserve commitment that begins after Sept. 30, 1990, is needed to receive education benefits for pursuit of:
(a) Courses leading to a certificate or diploma from business, technical or vocational schools.
(b) Cooperative training.
(c) Apprenticeship or on-job training.
(d) Correspondence training.
(e) Accredited independent study programs.
(f) Tutorial assistance benefits.
(g) Flight training from Sept. 30, 1990, to Sept, 30, 1994. Benefits also may be received for solo flying hours up to the minimum required by the FAA for the rating or certification being pursued. Before beginning training the reservist must have a private pilot license and meet the physical requirements for a commercial license.
Remedial, deficiency and refresher training may also be available to the reservist.
Payments
The full-time rate is $170 a month for 36 months, rising to $190 effective April 1, 1993. Starting with fiscal year 1994, cost-of-living increases will be required by law.
Work-Study
Reservists training at the three-quarter or full-time rate are eligible for the work-study program. Terms of participation are the same as under the Montgomery GI Bill (Active Duty) program, except that reservists can also work at a military facility if the work is related to the Chapter 106 program.
Period of Eligibility
If a reservist stays in the Selected Reserve, benefits end 10 years from the date the reservist became eligible for the program. VA may extend the 10-year period if the individual could not train due to a disability caused by Selected Reserve service. If a reservist leaves the Selected Reserve because of a disability, the individual may use the full 10 years. In other cases, benefits end on the day the reservist leaves the Selected Reserve, except that certain individuals separated from the Selected Reserve due to downsizing of the military between Oct. 1, 1991, and Sept. 30, 1995, will have the full 10 years to use their benefits. If the 10-year period ends, however, while the participant is attending school, VA will pay benefits until the end of the term. If the training is not on a term basis, payments may continue for 12 weeks.
Veterans’ Educational Assistance Program (VEAP)
Eligibility
Under VEAP, active duty personnel voluntarily participated in a plan for education or training in which their savings are administered and added to by the federal government. Servicepersons were eligible to enroll in VEAP if they entered active duty for the first time after Dec. 31, 1976, and before July 1, 1985. Some contribution to VEAP must have been made prior to April 1, 1987. The maximum participant contribution is $2,700. While on active duty, participants may make a lump-sum contribution to the training fund.
A serviceperson who participated in VEAP is eligible to receive benefits while on active duty if: (a) at least three months of contributions are available, except for high school or elementary school, in which case only one month of contributions is needed; and (b) the first active-duty commitment is completed.
If the individual’s first term is for more than six years, benefits may be available after six years. To attend an elementary or high school program, the individual must be in the last six months of the first enlistment.
A veteran who participated in VEAP is eligible to receive benefits if the discharge was under conditions other than dishonorable and:
(a) the first enlistment was prior to Sept. 8, 1980, or the participant entered active duty as an officer before Oct. 17, 1981, and served for a continuous period of 181 days or more or was discharged for a service-connected disability; or
(b) enlisted for the first time on or after Sept. 8, 1980, or entered active duty as an officer on or after Oct. 17, 1981, and completed 24 continuous months of active duty.
Education eligibility may be established even though the required active duty is not completed if the veteran:
(a) receives VA disability compensation or military disability retirement,
(b) served a previous period of at least 24 continuous months of active duty before Oct. 17, 1981; or
(c) was discharged or released for early out, hardship or service-connected disability.
An individual who contributed or who could have contributed to VEAP before being involuntarily separated from active duty with an honorable discharge after Feb. 2, 1991, may elect before separation to receive Montgomery GI Bill (Active Duty) benefits. Participants in VEAP also may make an irrevocable election to participate in the Montgomery GI Bill (Active Duty). The services will collect $1,200 from the participant’s military pay from those separating from services on or after Oct. 23, 1992. Many VEAP participants who voluntarily separate from active duty after Dec. 4, 1991, also may elect to participate in the Montgomery GI Bill (Active Duty).
Education and Training Available
VEAP participants may pursue associate, bachelor or graduate degrees at colleges or universities. Courses leading to a certificate or diploma from business, technical or vocational schools may also be taken. Other opportunities include apprenticeship or on-job training programs, cooperative courses and correspondence-school courses. Right training may be pursued from April 1, 1991, through Sept. 30, 1994. Benefits also may be received for solo flying-hours up to the minimum required by the FAA for the rating or certification being pursued. Before beginning training, the veteran must have a private pilot license and meet the physical requirements for a commercial license. A participant may also study abroad, but only in programs leading to a college degree. A participant with a deficiency in a subject may receive tutorial assistance benefits if enrolled half-time or more. Remedial, deficiency and refresher training also may be available.
Payments
When the participant elects to use VEAP benefits to pursue an approved course of education or training, the Defense Department will match the participant’s contribution at the rate of $2 for every $1 the individual put into the fund. Defense also may make additional contributions to the fund in exchange for special duties performed by the participant.
A typical VEAP payment: A participant contributes $1,800 over a 36-month period and the government adds $3,600 (2 for 1 match); there is no additional benefit from the Defense Department. This results in a total entitlement amount of $5,400. This amount would be divided by 36 months, yielding a monthly benefit of $150 for full-time schooling for the veteran.
A veteran will receive monthly payments for the number of months contributed, or for 36 months, whichever is less. The amount of the payment is determined by dividing the number of months that contributions were made into the participant’s training-fund total.
Period of Eligibility
A veteran has 10 years from the date of last discharge or release from active duty to use VEAP benefits. This 10-year period can be extended by the amount of time the veteran could not train because of a disability or because of being held by a foreign government or power. The 10-year period may also be extended if the veteran re-enters active duty for 90 continuous days or more after becoming eligible. The extension ends 10 years from the date of discharge or release from the later active duty period. For periods of less than 90 continuous days, the veteran may qualify for extensions under certain circumstances. A veteran with a discharge upgraded by the military will have 10 years from the date of the upgrade.
Work-Study
Work-study benefits are the same as the Montgomery GI Bill (Active Duty) program.
Vocational and Educational Counseling
Servicemembers, veterans and dependents of deceased and totally disabled veterans may receive a wide range of vocational and educational counseling services throughout the period they are eligible for an educational assistance program administered by VA. Counseling services include educational and vocational counseling and guidance, and testing. In addition, the following individuals may receive these services regardless of eligibility for any other VA educational benefits: (a) servicemembers within 180 days of their planned discharges or releases from active duty; and (b) veterans within one year after discharge. VA does not pay for travel expenses for servicemembers or veterans receiving counseling services.
Counseling Required for Individuals Rated Incompetent
A veteran or servicemember rated incompetent by VA must be counseled prior to entering an educational or training program paid by VA. VA will pay the cost of travel for this counseling.
Vocational Rehabilitation
Eligibility
Veterans and servicemembers who served in the Armed Forces on or after Sept. 16, 1940, are eligible for vocational rehabilitation if three conditions are met:
(1) They suffered a service-connected disability or disabilities in active service which entitle them to at least 20 percent compensation or would do so but for receipt of military retirement pay. Veterans may also be eligible if they have a compensable rating of less than 20 percent and first applied for vocational rehabilitation before Nov. 1, 1990. Effective Oct. 1, 1993, veterans with a 10 percent disability also may be found eligible if they have a serious employment handicap.
(2) They were discharged or released under other than dishonorable conditions or are hospitalized awaiting separation for disability.
(3) VA determines that they need vocational rehabilitation to overcome an impairment to their ability to prepare for, obtain or retain employment consistent with their abilities, aptitudes and interests. Their service-connected disabilities must materially contribute to this employment handicap.
Period of Eligibility
Generally, the veteran must complete a rehabilitation program 12 years from the date VA notifies him or her of entitlement to compensation. This period may be deferred or extended if a medical condition prevented the veteran from training for a period or if the veteran has a serious employment handicap.
Length of Rehabilitation Program
Disabled veterans may receive up to four years of rehabilitation services, including full-time training or its equivalent either in part-time training or in a combination of part-time and full-time training. Rehabilitation services may exceed four years in some cases. If a veteran with a serious employment handicap, for example, receives a training evaluation over an extended period, the total of the extended evaluation and the training phases of the rehabilitation program may exceed four years. Following participation in the training portion of a rehabilitation program, a veteran may receive counseling, job search and work adjustment services for up to 18 months. Employment services also may be given if the veteran is eligible for vocational rehabilitation and these services are the only assistance needed to overcome the employment handicap and become suitably employed.
Benefits
A disabled veteran will be given an evaluation to establish eligibility and entitlement and to determine whether the veteran needs extended evaluation, independent living services, educational or vocational training, employment services, or a combination of these benefits.
In the educational or vocational training phase of a rehabilitation program, veterans may: (a) enroll in trade, business or technical schools or in college-level institutions; (b) train on the job or in an apprenticeship program; (c) take on-farm training; (d) enter programs which combine school and on-job training; or (e) train in special rehabilitation facilities or at home when this is necessary because of serious disability. Veterans may also receive services and assistance to improve their ability to live more independently in their communities.
After completion of the training phase, VA will assist the veteran to find and hold a suitable job.
Rehabilitation Program Costs
While in training and for two months after the completion of training, eligible veterans may receive subsistence allowances in addition to their disability compensation or retirement pay. Servicemembers cannot receive subsistence allowances until they leave active duty. VA pays the costs of tuition, fees, books, supplies and equipment. VA may also pay for special supportive services, such as tutorial assistance, prosthetic devices, lip-reading training and signing for the deaf. VA will help the veteran to pay for at least part of the transportation expenses unique to disabled persons during training or employment services. VA also may provide an advance against future benefit payments for veterans who run into financial difficulties during training.
Work-Study
For work-study benefits, a person must train at the three-quarter or full-time rate. Participants will be paid in advance 40 percent of the amount specified in the work-study agreement, or an amount equal to 50 times the applicable minimum wage, whichever is less. They also may perform outreach services under the supervision of a VA employee, prepare and process VA paperwork, work at a VA medical facility or perform other approved activities.
Special Program for Veterans Rated Unemployable
Veterans awarded 100 percent disability compensation based upon unemployability may request an evaluation and, if found eligible, may participate in a program of rehabilitation services and training and receive special assistance in securing employment. VA’s Vocational Rehabilitation Service is responsible for the program. A veteran with an unemployability rating who secures gainful employment under the special program will continue to receive disability compensation without reduction until the veteran has worked continuously for 12 months.
Special Program for Veterans Receiving Pension
Veterans who are awarded VA pension through Dec. 31, 1995, may be eligible for up to 24 months--or more under certain circumstances--of vocational training. Program participants may also receive up to 18 months of employment-counseling, job-search and work-adjustment services.
Any veteran receiving a pension awarded prior to Dec. 31, 1995, may apply for an evaluation and for participation in vocational training. If an evaluation shows the veteran can achieve a vocational goal and the veteran wants vocational training, VA will help develop a plan of training and supportive services. Veterans are not required, however, to take part either in evaluation or training.
A veteran will continue to receive pension while receiving training or employment services. If a veteran in the training program loses entitlement to pension, training may be continued unless the pension is the result of fraud or administrative error.
If a veteran’s pension is terminated for excessive work or training income, the veteran may continue to receive VA health care and retain priority for treatment for three years after the date the pension is terminated.
Participants may work up to 12 months with no change in their evaluation as permanently and totally disabled. The employment must be within the scope of the vocational goal or a related field identified in the participant’s VA rehabilitation plan and must be obtained within one year after eligibility for counseling expires. Earnings during this 12 month period count as income, however, for pension purposes.
Home Loan Guaranties
Eligible veterans and unmarried surviving spouses may obtain VA-guaranteed loans for the purchase and refinancing of homes, condominiums and manufactured homes. The VA guarantees part of the total loan so a veteran may obtain a mortgage on a home or condominium with a competitive interest rate -- without a downpayment if the lender agrees. VA requires a downpayment for the purchase of a manufactured home. VA also requires a downpayment for a home or condominium if the purchase price exceeds the reasonable value of the property or the loan has a graduated payment feature. With a VA guaranty, the lender is protected against complete loss if the borrower fails to repay the loan. A VA loan guaranty can be used to:
(a) Buy a home.
(b) Buy a residential unit in new or proposed, existing or converted condominium projects.
(c) Build a home.
(d) Repair, alter or improve a home.
(e) Refinance an existing home loan.
(f) Buy a manufactured home with or without a lot.
(g) Buy and improve a manufactured home lot on which to place a unit owned and occupied by the veteran.
(h) Improve a home through installation of a solar heating or cooling system or other weatherization improvements.
(i) Purchase and improve simultaneously a home with energy-conserving measures.
(j) Refinance an existing VA loan to reduce the interest rate.
(k) Refinance a manufactured home loan to acquire a lot.
(l) Purchase and improve a home simultaneously.
Eligibility
To be eligible for a loan guaranty, applicants must have a good credit rating and have an income sufficient to support the new mortgage payments. The applicant also must agree to occupy the property as a home. To obtain a VA Certificate of Eligibility, complete a VA Form 261880, 'Request for Determination of Eligibility and Available Loan Guaranty Entitlement,' and submit it along with required supporting documents to the nearest VA regional office.
World War II Eligibility
Eligibility requirements for veterans of World War II are: (a) active duty on or after Sept. 16, 1940, and prior to July 26, 1947; (b) a discharge or separation under other than dishonorable conditions; and (c) at least 90 days total service, unless discharged earlier for service-connected disability.
Post-World War II Eligibility
Eligibility requirements for veterans of this period are: (a) no other active-duty service except that which occurred after July 25, 1947, and prior to June 27, 1950; (b) a discharge or separation under other than dishonorable conditions; and (c) at least 1 81 days continuous active-duty service unless discharged earlier for a service-connected disability.
Korean Conflict Eligibility
Eligibility requirements for veterans of the Korean Conflict period are: (a) active duty at any time on or after June 27, 1950, and prior to Feb. 1, 1955; (b) discharge or separation under other than dishonorable conditions; and (c) at least 90 days total service, unless the veteran was discharged for a service-connected disability.
Post-Korean Conflict Eligibility
Eligibility requirements for post-Korean Conflict veterans are: (a) active duty for 1 81 continuous days or more, any part of which occurred after Jan. 31, 1955, and prior to Aug. 5, 1964; and (b) discharge or release under conditions other than dishonorable; or (c) early discharge or release from active duty after such date for a service-connected disability.
Vietnam Eligibility
Eligibility requirements for Vietnam-Era veterans are: (a) active duty for a total of 90 days or more, any part of which occurred after Aug. 4, 1964, and prior to May 8, 1975; and (b) discharge or release from active duty under conditions other than dishonorable; or (c) earlier release from such active duty for a service-connected disability.
Post-Vietnam Eligibility
Eligibility requirements for Post-Vietnam veterans whose enlisted service began before Sept. 8. 1980, or whose service as an officer began before Oct. 17, 1981, are: (a) active duty for 181 continuous days or more, all of which occurred after May 7, 1975; and (b) discharge or release from active duty under conditions other than dishonorable; or (c) early release from such active duty for service-connected disability. Eligibility requirements for veterans separated from enlisted service between Sept. 8, 1980, and Aug. 1, 1990, or service as an officer between Oct. 17, 1981, and Aug. 1, 1990, are: (a) completion of 24 months of continuous active duty or the full period -- at least 181 days -- for which the person was called or ordered to active duty, and discharge or release from active duty under conditions other than dishonorable; or (b) completion of at least 181 days of active duty with a hardship discharge, certain discharges for the convenience of the government, or for service-connected disability, or (c) early discharge with less than 181 days of service for service-connected disability.
Persian Gulf War Eligibility
Eligibility requirements for Persian Gulf War veterans are: (a) completion of 24 months of continuous active duty or the full period at least 90 days -- for which the person was called to active duty, and discharge or release from active duty under conditions other than dishonorable; or (b) earlier release after at least 90 days, with a hardship discharge, discharge at the convenience of the government, or discharge for a service-connected disability. Reservists and National Guard members are eligible if they were activated on or after Aug. 2, 1990, served at least 90 days active duty, and were discharged honorably. Eligibility for reservists expires Oct. 28, 1999.
Active Duty Personnel Eligibility
Until the Persian Gulf era is ended by law or Presidential Proclamation, persons on active duty are eligible after serving on continuous active duty for 90 days. Six-month enlistees who serve for six months on active duty for training only are not eligible since their service does not constitute 'active duty' as defined by law, although they may be eligible for FHA Home Mortgage Insurance for veterans. (See FHA Home Mortgage Insurance.)
Eligibility for Members of the Selected Reserve
Individuals who have completed at least six years in the Reserves or National Guard are eligible if they: (1) have been discharged under honorable conditions, or (2) have been placed on the retired list, or (3) have been transferred to an element of the Ready Reserve other than the Selected Reserve, or (4) continue to serve in the Selected Reserve.
Eligibility for Others
Others eligible include unremarried spouses of veterans who died on active duty or as a result of service-connected causes; spouses of active duty service members who have been missing in action or a prisoner of war for at least 90 days; U.S. citizens who served in the armed forces of a U.S. ally in World War II; and certain citizens who were part of organizations with recognized contributions to the U.S. World War II effort. Questions about eligibility may be answered at any VA regional office.
Expiration
Loan guaranty eligibility is not subject to an expiration date. Eligibility for reservists expires Oct. 28, 1999.
Entitlement
The amount of the VA guaranty available to an eligible veteran is called the entitlement. The basic entitlement available to an eligible veteran is $36,000. Up to $46,000 of entitlement, however, may be available to veterans purchasing or constructing homes to be financed with a loan of more than $144,000, and to veterans who obtain an Interest Rate Reduction Refinancing Loan of more than $144,000.
The maximum amount of entitlement which may be used depends on the loan purpose and loan amount and will be the lesser of the percentage or dollar limits in the following table:
Loan Amount Guaranty Percent Dollar Amount
Up to $45,000 50% $22,500
$45,001 to $56,250 40% - 50% $22,500
$56,251 to $144,000 40% $36,000
Over $144,000 25% $46,000 (Purchase or construction loan and Interest Rate Reduction Refinancing)
Manufactured home 40% $20,000 and/or lot loan*
* A loan secured by a manufactured home which is permanently affixed to a lot and considered to be real property under the laws of the state where it is located may be eligible for a guaranty to the same extent as a home loan.
The VA does not establish a maximum loan amount. No loan for the acquisition of a home, however, may exceed the reasonable value of the property. A loan for the purpose of refinancing existing mortgage loans or other liens secured of record on a dwelling owned and occupied by the veteran as the veteran’s home is generally limited to 90 percent of the appraised value of the dwelling as determined by VA. A loan for the purchase of a manufactured home and/or lot is limited to 95 percent of the amount that would be subject to finance charges.
The maximum home loan entitlement was raised from $4,000 to $7,500 in 1950, to $12,500 in 1968, to $17,500 in 1974, to $25,000 in 1978, to $27,500 in 1980, to $36,000 in 1988, and up to $46,000 in 1989. A veteran who previously obtained a VA loan can use the remaining entitlement for any eligible purpose. Veterans who used their entitlement to purchase a manufactured home must first dispose of the manufactured home before purchasing a second manufactured home with a VA guaranteed loan. The amount of remaining entitlement is the difference between $36,000 -- or $46,000 for special loans -- and the amount of entitlement used on prior loans. Veterans refinancing an existing VA loan with a new VA loan at a lower interest rate need not have any entitlement available for use.
Restoration and Substitution of Entitlement
Veterans may have guaranty entitlement restored under the following conditions: (1) the veteran sells the home which was obtained with the VA loan, and (2) the VA is relieved of liability on the VA loan-normally accomplished by paying off the loan -- or the loan is assumed by an eligible veteran who is able and willing to substitute entitlement for that used by the original veteran buyer.
Financing, Interest Rates and Terms
Veterans obtain VA-guaranteed loans through the usual lending institutions, such as banks, savings and loan associations, building and loan associations and mortgage loan companies. Real estate brokers usually assist the borrower in finding a lender.
Veterans may obtain a loan with a fixed or a variable interest rate and the rate may be negotiated with the lender. If the lender charges discount points on the loan, the veteran may negotiate with the seller as to who will pay points or if they will be split between buyer and seller. Points paid by the veteran may not be included in the loan. If the veteran elects a variable rate mortgage, the interest rate may not be raised more than 1 percent annually and may not increase more than a total of 5 percent over the life of the loan. The term of the loan also is subject to negotiation with the lender and may be for as long as 30 years and 32 days.
VA normally does not require that a downpayment be made. VA does require a downpayment for a manufactured home or lot loan, for a loan with graduated payment features, and to prevent the amount of a loan from exceeding VA’s determination of the properly’s reasonable value. if the sales price exceeds the reasonable value, the veteran must certify that the difference is being paid in cash without any supplementary borrowing.
The maximum maturity for manufactured home or lot loans varies. A VA office can provide specific information. A cash downpayment of 5 percent of the purchase price is required for such loans. The downpayment also must include an amount equal to the difference, if any, between the maximum loan allowable for the transaction and the cost to the veteran.
Closing Costs
Payment in cash is required on all home loan closing costs, including title search and recording, hazard insurance premiums, prepaid taxes, and the 1 percent origination fee which may be required by lenders in lieu of certain other costs. In the case of refinancing loans, all such costs may be included in the loan, as long as the total loan does not exceed 90 percent of the reasonable value established by VA for the property. Loans, including refinancing loans, are charged a funding fee by the VA, with the exception of loans made to certain disabled veterans and unremarried surviving spouses of veterans who died as a result of service or service-connected disabilities. The VA funding fee is based on the loan amount and, at the lender’s discretion, may be included in the loan. This fee varies according to the loan:
Funding Fee
Loan category Veterans Reservists % of loan % of loan
Purchase or construction 1.25 2.0 loans with downpayments of less than 5 percent; Refinancing loans; Home improvement/repair loans.
Purchase or construction 0.75 1.5 loans with downpayments of at least 5 percent but less than 10 percent
Purchase or construction: 0.50 1.25 loans with downpayments of 10 percent or more:
Manufactured home loans 1.0 1.0
Interest rate reduction loans 0.5 0.5
Safeguards for Veterans
VA protects veteran borrowers in the following ways:
(a) Homes completed less than a year before acquisition with VA financing and inspected during construction by either VA or HUD must meet or exceed VA minimum requirements for planning, construction and general acceptability.
(b) VA may suspend from participation in the loan program those who take unfair advantage of veteran borrowers or decline to sell a new home or make a loan to an eligible veteran of good credit because of race, color, religion, sex, disability, familial status or national origin. All credit transactions involving VA financing also must meet the requirements of the Equal Credit Opportunity Act and the Federal Reserve Board’s Regulation B.
(c) The builder of a new home is required to give the purchasing veteran a one-year warranty that the home has been constructed in substantial conformity with VA-approved plans and specifications. A similar warranty is required to be given to the veteran in respect to new manufactured homes.
(d) In cases of new construction completed under VA or HUD inspection, VA may pay or otherwise compensate the veteran borrower for correction of structural defects seriously affecting livability if assistance is requested within four years of the time a home loan is guaranteed or made.
(e) The borrower obtaining a GI loan may only be charged the fees and other charges prescribed by VA as allowable.
(f) The borrower has the right to prepay at any time, without premium or penalty, the entire indebtedness or any part thereof not less than the amount of one installment or $100, whichever is less.
(g) It is the policy of VA to encourage holders to extend all reasonable forbearance and indulgence in the event a borrower becomes temporarily unable to meet the terms of the loan.
Occupancy Certification
Veterans must certify that they intend to live