DEPARTMENT OF VETERANS AFFAIRS
Regional Office
400 South 18th Street
St. Louis, MO 63103-2271
Re: VA Payment of Tuition and Fees for Chapter 31 Veterans who Receive
Financial Aid from Other Sources
Dear VA Certifying Official and /or Finance Dept:
This letter is intended to clarify the Department of Veteran Affairs (VA)
policy and procedures for the payment of tuition and fees for Veterans
attending your school under the VA Vocational Rehabilitation and
Employment (VR&E) program (Chapter 31) who may receive financial
assistance from another source, such as from a Federal or non-Federal
agency.
The VA has a firm commitment to ensure that each service-disabled
Veteran receives the services and assistance necessary to achieve the
goals of his or her Chapter 31 vocational rehabilitation program. Therefore,
the VA will maintain primary responsibility for ensuring that tuition and fees
are paid so that the Veteran may begin training. The VA should not be
billed until the school’s Drop/Add Period has concluded. This policy
ensures that the Veteran will be able to begin or continue his or her
rehabilitation program without delay or distraction.
VA policy regarding tuition and fees is controlled by VA Acquisition
Regulation (VAAR) 48 CFR 831.7001-1. A copy of the applicable
provisions of this regulation is attached for your review and future
reference. The following guidelines are derived from VA policy and
regulations:
1. In accordance with the instructions on page 2 of VA Form 28-1905, VA
pays in arrears directly to the institution all vouchers for the Veteran’s
tuition, fees, books and supplies. Therefore, VA should not be billed for
a particular term or semester until after any Drop/Add period for that
term closes. The Veteran under Chapter 31 or child under Chapter 18
should not have their registration cancelled for non-payment of these
expenses, since VA has obligated payment for that term. A copy of VA
Form 28-1905 is attached.
2. VA should be billed only for the actual net cost for tuition and fees
assessed by the institution for the program of education after the
application of:
 any waiver of, or reduction in, tuition and fees; and
 any scholarship, or other Federal, State, institutional, or employer-based
aid or assistance that is provided directly to the institution and specifically
designated for the sole purpose of defraying tuition and fees, with the
following exception: Loans and any funds provided under section 401(b)
of the Higher Education Act of 1965 (20 U.S.C. 1070a), such as Pell
grants, should not be used to reduce the amount billed to VA.
3. If the Veteran receives assistance that is not specifically designated for
tuition and fees (funds that may be disbursed directly to the Veteran)
from a Federal, State or private contribution, the VA will not deny or
reduce a Chapter 31 payment on behalf of the Veteran unless the
Veteran actually applies such funds to tuition and fee charges. If the
Veteran chooses to apply such assistance to tuition and fees, the
school should then reduce its bill to the VA by an equal amount.
4. Reimbursement of duplicate funding or errors in accounting: All errors
in accounting or disbursing funds should be corrected by the school and
any funds that are unused by, or recouped from, the Veteran or another
source should be returned to the appropriate funding source, including
VA. It is the responsibility of the school to contact the agency that
created the duplication and arrange the return of any unused funds.
Please contact (Insert Name of Case Manager) at (Insert Telephone
Number and/or email) if you have questions about this letter or need
additional information.
Your collaboration in ensuring the success of Veterans participating in
vocational rehabilitation programs is greatly appreciated.
Sincerely,
/s/
Corliss Strathearn
Vocational Rehabilitation and Employment Officer
Attachment B
Applicable Provisions of 48 CFR 831.7001-1 and Public Law 111-377
48 CFR 831.7001-1
* * * * *
(c) When Federal funds pay the total cost of instruction, or grants from the
Federal Government pay a portion of the cost (e.g., Smith-Hughes or other
laws, excluding Federal Land Grant Funds), that subsidy will be taken into
consideration in determining the charge to VA. The term “Federal Land
Grant Funds” refers to those funds received under the Morrill-Nelson Act
(Morrill Acts of 1862 and 1890 and the Nelson amendment of 1907) and
section 22 of the Bankhead-Jones Act of 1935.
(d) A veteran who is participating in a Chapter 31 program and receives an
award of a fellowship, scholarship, grant-in-aid, assistantship, or similar
award will have that award treated according to the following requirements:
(1) If the award limits its use to payment of tuition, fees, or any charge that
VA normally pays as part of a Chapter 31 program, VA will pay the portion
of the charges remaining after applying the award.
(2) In all other cases, VA will pay the full amount of the tuition, fees, or
other charges.
(e) If a State or other Government authority waives a veteran’s tuition and fees,
VA will reduce its payment of those charges by the amount of the waiver.
(f) VA will pay enrollment fees for registration if both of the following conditions
exist:
(1) The institution or training establishment usually makes this charge.
(2) The charge is not more than other students or trainees pay.
Excerpt from Public Law 111-377, Section 103
``(i) in the case of a program of education pursued at a public
institution of higher learning, the actual net cost for in-State
tuition and fees assessed by the institution for the program of
education after the application of-`` (I) any waiver of, or reduction in, tuition and fees; and
``(II) any scholarship, or other Federal, State,
institutional, or employer-based aid or assistance (other than loans
and any funds provided under section 401(b) of the Higher Education
Act of 1965 (20 U.S.C. 1070a)) that is provided directly to the
institution and specifically designated for the sole purpose of
defraying tuition and fees;