In addition to covering traditional two-year and four-year college studies, a new Department of Veterans Affairs (VA) program taking effect next fall is aimed at high technology courses. It will allow veterans to use a lump sum from their benefit for certain expensive courses such as those leading to certification of computer network professionals.

The increase in tuition reimbursement as well as the VA's support for high-tech courses reflect department efforts to boost use of the current education program, which began in 1985. Veterans generally have 10 years after release from active duty to use the funds, but only about 60 percent have used some of their benefit.

In addition, about 90 percent of all eligible veterans have not exhausted their account. VA hopes new strategies such as accelerated payment for high-tech courses will enable more veterans to take advantage of their remaining benefits.

Few servicemembers opt out of coverage. Participants' pay is reduced by $100 per month for their first 12 months on active duty to cover a total veteran contribution of $1,200. The full-time rate of $800 a month is paid for up to 36 months of study, which covers the academic months of a traditional 4-year college education for a return value of $28,800 at today's top rate.

The new law, the Veterans Education and Benefits Expansion Act of 2001 (Public Law 107-103), also improves educational assistance for eligible spouses and children of certain veterans, including veterans who died or are permanently and totally disabled as a result of a service-connected disability.

For more information about veterans educational programs, call VA at 888-442-4551. 

Increased rates for Montgomery GI Bill (chapter 30) benefits: Increases rates for approved full-time studies from $672 to $800 effective January 1, 2002; $900 effective October 1, 2002; and $985 effective October 1, 2003. When MGIB eligibility is based on an obligated period of active duty of two years, the amount of MGIB education benefits increases from the current full-time monthly rate of $546 to $650 effective January 1, 2002; $732 effective October 1, 2002; and $800 effective October 1, 2003. 

Increased rates for Survivors' and Dependents' Educational Assistance (chapter 35): Increases payment rates from $608 to $670 for full-time; from $456 to $503 for three-quarter-time, and from $304 to $335 for half-time studies. Special Restorative Training that is pursued full-time increases from $608 per month to $670 per month. The effective date of the rate increase is January 1, 2002. 

Restoration of Entitlement: Restores educational assistance entitlement under the MGIB-Active Duty, the Veterans' Educational Assistance program (VEAP), the Survivors' and Dependents' Educational Assistance program (DEA), and the chapter 31 program for any servicemembers, reservists, or DEA recipients called to active duty during Operation Enduring Freedom and at any time in the future. The effective date is September 11, 2001. 

Accelerated Payments for education leading to employment in high technology: Makes eligible those persons charged tuition and fees such that, when divided by the number of months in the enrollment period, the monthly amount exceeds an amount equal to 200 percent of the monthly rate otherwise payable. The total amount of payment will be the lesser of: 60 percent of program costs, or the total amount of education assistance to which the person has entitlement at the time of payment. This lump sum would be deducted from the veteran's remaining MGIB-Active Duty entitlement. This is effective October 1, 2002.

MGIB Eligibility: Enables Vietnam-era veterans to convert their Vietnam-era GI Bill benefits to Montgomery GI Bill-Active Duty benefits if the veteran had eligibility for the Vietnam-era GI Bill benefits as of December 31, 1989, was not on active duty on October 19, 1984, and served three continuous years on active duty on or after July 1, 1985, or two years on active duty followed by four years in the Selected Reserve on or after July 1, 1985. This provision overturns the General Counsel Opinion which held that service had to begin on July 1, 1985. 

ROTC Increase: Increases from $2,000 to $3,400 per year the amount a student under the Senior Reserve Officers' Training Corps (SROTC) may receive in scholarship assistance and still retain eligibility for the MGIB - Active Duty (chapter 30). This applies to chapter 30 benefits paid for months beginning after December 27, 2001. 

Expansion of Work-Study Opportunities: Provides that qualifying work-study activity includes any of the following: the Veterans Outreach Services Program for work performed under the supervision of a VA employee, or, during the 5-year period beginning on the Act's date of enactment, outreach services to servicemembers and veterans furnished by State approving agency employees; preparation and processing of papers and other documents at educational institutions or regional offices or facilities of VA; provision of hospital and domiciliary care and nursing home and hospital care to veterans (under 38 USC chapter 17), including, during the same 5-year period mentioned above, care to veterans in state veterans' homes; any other activity of VA that the Secretary determines appropriate; for individuals training under chapter 1606, activities relating to the administration of that chapter at Department of Defense, Coast Guard, or National Guard facilities; during the same 5-year period mentioned above, activities relating to the administration of a national cemetery or a State veterans' cemetery. This applies to agreements entered into on or after December 27, 2001. 

Chapter 35 Eligibility of Spouses and Surviving Spouses: Invalidates Ozer and reinstates a 10-year delimiting period in which spouses may, upon first becoming eligible, use DEA benefits. Under Ozer v. Principi, February 6, 2001, the U.S. Court of Appeals for Veterans Claims decided that chapter 35 spouses have no delimiting date. In addition, if a spouse becomes a surviving spouse due to the death of the veteran, the surviving spouse would receive a new 10-year delimiting date, but in no case would his or her aggregate entitlement exceed 45 months.

Expansion of Special Restorative Training: Expands the special restorative training benefit provided under the chapter 35 program to include certain disabled spouses or surviving spouses. This is effective December 27, 2001.

Definition of Educational Institution: Changes the definition of Educational Institution to include any private entity that offers, either directly or under an agreement with another entity, a course or courses to fulfill requirements for attainment of a license or certificate generally recognized as necessary to obtain, maintain, or advance employment in a vocation or profession in a technological occupation, as determined by VA. This applies to enrollments in courses beginning on or after December 27, 2001.

Distance Education: Permits payment for independent study programs if they lead to a certificate that reflects educational attainment offered by an institution of higher learning. This applies to enrollments in independent study courses beginning on or after December 27, 2001.

Fugitive Felons and Benefits: Prohibits veterans and eligible dependents from receiving veterans benefits while a "fugitive," which is defined as a person fleeing to avoid prosecution, or custody or confinement after conviction, for an offense, or an attempt to commit an offense, which is a felony under the laws of the place from which the veteran flees. Among the benefits affected are those under chapters 30, 31, 32, 34 and 35 of title 38, United States Code.

Improved Outreach Services for Separating Servicemembers and Veterans: Requires that State Approving Agencies (SAAs), in addition to VA, actively promote the development of VA programs of training on the job (including programs of apprenticeship). Also requires SAAs, in conjunction with outreach services furnished by VA for education and training benefits under chapter 77 of title 38 USC, to conduct outreach programs and provide outreach services to eligible persons and veterans about education and training benefits available under applicable Federal and State law.

Improvement of Veterans Outreach Programs: Requires VA, whenever a veteran or dependent first applies for any benefit (including a request for burial or related benefits or an application for life insurance proceeds), to provide information concerning all benefits and health care services under programs administered by VA, within three months of the veteran or dependent making an initial contact with VA.