1. THE 85/15 RULE
AVECO June 2018

2. Introduction What is the 85 /15 Rule? Who and How does the rule apply?
Exceptions to the Rule.
Institution Responsibilities.
How to calculate enrollments for the rule.
Waivers.

3. A Little History... Jun 22, 1944
Servicemen’s Readjustment Act (GI Bill)
Provided 4 years of education or training
Tuition, fees, books, supplies, and monthly stipend
Guaranteed home, farm, or business loan
Unemployment compensation
Weekly payment for up to 52 weeks
GI Bill term usually only used today for education programs

4. Why the need for 85/15? A Few Changes were Needed
1950 Federal investigation: -$14 Billion Dollar Bill in For-profit industry enrolled 1.7 million veterans : Ballroom dancing, Bartending, 7 months-to-be-an-Architect, Lion Tamer, Engraving (Student practiced making counterfeit money as vocational training) -2/3 of the 8,900 for-profit schools that received GI Bill funding were established after the passage Bill -Falsified attendance and cost records -Schools ceased operations when veterans ‘ enrollments ended
‘living off the fat of the land’ was quoted by a different NY times article after the 1950 investigation.
(Agish, Barrett, Fahey, McGlinchy, Naughton, & Tsonopoulos, 2015)
(New York Times, 1956)

5. Who, What and When is the 85 /15 Rule? 38 CFR 21.4201
General. Except as otherwise provided in this section the Department of Veterans Affairs shall not approve an enrollment in any course for an eligible veteran, not already enrolled, for any period during which more than 85 percent of the students enrolled in the course are having all or part of their tuition, fees or other charges paid for them by:
the educational institution or
by VA under title 38, U.S.C., or
under title 10, U.S.C.
This restriction may be waived in whole or in part.

6. What type of Facility does this apply to?
The requirements of applies to all courses not otherwise exempt or waived offered by all educational institutions, regardless of whether the institution is degree-granting, proprietary profit, proprietary nonprofit, eleemosynary, public and/or tax-supported. What is eleemosynary? 1. of or pertaining to alms, charity, or charitable donations; charitable 2. derived from or provided by charity 3. dependent on or supported by charity: an eleemosynary educational institution

7. 85/15 rule does not apply to:
Exceptions
85/15 rule does not apply to:
Farm cooperative courses
Aero Clubs
OJT/APP

8. AKA: A Program of Education
Any Course?
(1) A combination of subjects or unit courses pursued at a school which is generally acceptable to meet requirements for a predetermined educational, professional or vocational objective; or
(2) Such subjects or courses which are generally acceptable to meet requirements for more than one objective if all objectives pursued are generally recognized as being related to a single career field; or
(3) Any unit course or subject, or combination of courses or subjects, pursued by an eligible veteran at any educational institution required by the Administrator of the Small Business Administration as a condition to obtaining financial assistance under the provisions of section (7)(i)(1) of the Small Business Act.
AKA: A Program of Education

9. Institution Responsibilities
Schools are required to track the percentage of veterans and dependents enrollments in each of their approved programs and emphases and confirm the enrollment restriction is not violated before enrolling new VA students.
Schools are required to report their enrollment calculations to VA each time a new semester, quarter, or term starts.
Schools are required to report separate calculations for main campus and branches.
The school must compute the full–time equivalency for part–time students

10. Institution Responsibilities (cont.)
Time Limits for Submitting Calculations:
Term Basis – Calculations must be submitted no later than 30 days after the start of the term or before the beginning of the following term whichever occurs first.
Not on a Term Basis – Calculations must be submitted no later than 30 days after the beginning of each calendar quarter.

11. Calculating Tip: Excel

12. Head Scratchers- Non-VA students counted as VA
School allows children of faculty to attend free through age 24.
Professor of Psychology’s 22 yr old child just got out of the Army with 100% Post 9/11, and is charged tuition and fees.
If veterans under 24 who are also children of faculty have to pay tuition and fees, then ALL children of faculty members under 24 who do not pay tuition and fees must be counted on the VA side of the ratio.
You may have many institutional financial aid programs.
If ONE of those programs excludes VA students because they receive or are entitled to receive VA benefits, then the non-VA students in that ONE program must be counted on the VA side of the ratio.
The non-VA students of the programs that do NOT exclude VA students must be counted on the non-VA side of the ratio.
M22- part 9 liaison & approval activities. Chapter 9- Miscellaneous THE PERCENT RATIO REQUIREMENT

13. Example: ABC University
100 students enrolled in their BA English-Literary Studies degree program. •80 are utilizing various VA education benefits •10 are receiving scholarships which exclude anyone using VA benefits •10 are using a general institutional scholarship offered to everyone Is this school in Compliance of 85/15?

14. Example (cont.) Answer: No
This school is out of compliance with the 85/15 percent rule because 90 percent of the students in the program are either utilizing VA benefits or are using a scholarship that are not offered to eligible persons using VA education benefits.

15. Example: General Education/Liberal Arts –AA or AS Terminal 2-year programs (AAS, Diploma or Certificate) Title 38 CFR (e)(1):
“Pursuit of a course or curriculum that varies in any way from a similar course, although it may have the same designation as the other similar course or curriculum, will require a separate percent computation. A course or curriculum will be considered to vary from another if there are different attendance requirements, required unit subjects are different, required completion length is different, etc”

16. Part-time Students
Schools must compute the full-time equivalency (FTE) for part-time students and add it to the number of full-time students.
•How many hours constitute full-time?
•How many hours is the student enrolled?
•What benefit chapter does the student receive?

17. Part-time Students (cont.) Pg 56 SCO Handbook
Chapter 33
Rate of Pursuit (ROP)
Actual hours / Full time hours shown as a percentage
Enrolled in 7 hours / 12 hours = full-time
7 / 12 = 58% rate of pursuit
Non Chapter 33
Training Time (TT)
Based on a standard term
when 12 credits = full-time
9 – 11 hours = ¾ time
6 – 8 hours = ½ time

18. Part-time Students (cont.) Page 122 SCO Handbook
The FTE should be computed by multiplying the number of part-time students by their individual training time (non-Chapter 33) or rate of pursuit (Chapter 33) and then add that number to the full- time number. Example 1: # Students X TT/RoP = FTE 20 x .25 = 5 15 x .5 = x .75 = These 45 part-time students equate to a total of 20 FTE and should be added to the total full-time students.

19. Part-time students Example 2:
50 students training at ¾ time or 75 percent rate of pursuit = 37.5 FTE
50 students training at ½ time or 50 percent rate of pursuit = 25 FTE
50 students training at ¼ time or 25 percent rate of pursuit = 12.5 FTE
These 150 part-time students would be reported as 75 FTE students for the calculation.

20. Computing the 85/15 Ratio
EXAMPLE: 20 students enrolled in a HVAC Certificate 17 students receive VA education benefits 3 students do not receive any support 17/20 = .85 OR 85 percent are VA supported students Is this program in compliance? Can they enroll and certify anymore students?

21. Computing HVAC Example:
The program is NOT in compliance. Can they enroll and certify any new or re-enrolling students? MAYBE The percent ratio requirement does not apply to chapters 31 or 35. [The] school, ELR, or ECSS (Education Compliance Survey Specialist) must count students receiving chapter 31 or 35 benefits as VA students when computing the ratio.
Count the Ch 31 and 35 students as VA students to get the ratio. If your program exceeds the 85%, these students may still be authorized their benefits.

22. What if a Program is Over 85%
If the program is over 85%-
The ELR suspends enrollments and reenrollments effective the date the ratio exceeds 85%
The ELR notifies the school of suspension
The ELR provides a copy of the suspension letter to the SAA
The ELR notifies the CELO/RPO and updates WEAMS
What happens to the student if the program is suspended?
Benefits for students with running awards and who remain continuously enrolled will NOT be affected (You can still certify)
Benefits stop after any break in enrollment, unless the break was beyond student’s control (Do not certify until you talk to ELR)

23. Break in enrollments:
When a computation establishes the 85/15 percent ratio is not satisfied, no benefits can be paid to a VA student whose enrollment:
begins on or after the date of the computation.
Benefits of students already enrolled in a program will not be terminated solely because the 85/15 percentage requirement is not met, provided the student remains continuously enrolled.
A student taking the summer semesters off is still considered continuously enrolled.

24. WEAMS
ELR input:
WEAMS report:

25. How do I have a Suspension Removed?
School provides the ELR with roster of all students showing compliant with ratio
The ELR sends a copy of letter to the SAA
The ELR notifies CELO/RPO
The ELR updates facility approval

26. WAIVERS Three Kinds: Department of Defense Waiver
Developing School Waiver
35% Waiver

27. Department of Defense Waiver- April 2018 Clarification- C & L Advisory 223-18-01
Offered under contract; and
Immediately adjacent* to a military base; and
Enrollment restricted to military & dependents, civilian employees of base, selected reserve
April 20, 2018 Advisory: Defining ‘Immediately Adjacent’:
1. Public access road or educational-institution-privately owned, or military facility-owned access road separates properties (with additional conditions)
2. Educational facility and military facility divided by natural or manmade waterway or natural formation (i.e. gorge or canyon)
3. No other private property separates the base from school property
4. *Does NOT refer to an educational facility located on property, which, at its closest point, is more than .25 miles away from the military facility.
a. Said road is no more than four lanes wide (total of all lanes regardless of travel direction; may also include a median strip; a bridge, tunnel or any other means of physical connection to the military facility is irrelevant and does not negate or modify this maximum width limitation) and is not characterized as a highway (includes all manner of “highway”: State, Federal, interstate, etc.) AND
b. But for this dividing road, the properties would abut (e.g., touch) the military facility.
If any changes occur after the approval of an ‘adjacent’ facility, maintaining approval status will be on a case-by-case basis. (for example, if a highway is put in)

28. Education Service Waiver for Developing Schools
Schools may apply for a waiver to continue new enrollments when a course exceeds 85% by submitting a request to the Director, Education Services.
Sufficient evidence should be provided to judge the merits of the request and should address the following:
Availability of similar courses in the vicinity of the school requesting a waiver.
Status of the school requesting a waiver as a developing institution primarily serving a disadvantaged population
Previous compliance history of the school
General effectiveness of the school's program in providing educational and employment opportunities to veterans they serve

29. 35% Waiver
If a school has a total enrollment that consists of less than 35 percent veterans or dependents using VA benefits, they can request a waiver of the reporting requirements. Schools will have to demonstrate that there are less than 35 percent veterans enrolled in each program. VA can grant a full or partial waiver of this reporting requirement. A 35% waiver does not mean the school doesn’t have to calculate this percentage, just that the school has a waiver of the reporting requirement to VA. This also will still be requested and reviewed on compliance.

30. 35% Waiver Request
Submit to your ELR: 1. A Statement of Assurance 2. A Request for the 35% waiver. *Approval folders missing supporting evidence for waiver.

31. Reporting-Statement of Assurance SCO Handbook Pg 123
List each program approved for VA education benefits with currently enrolled VA Students. All concentrations (may also be identified by school as emphasis; specializations; etc.) must be listed and computed separately. If “Undeclared” is listed, those students counted within that program may have only taken general education coursework. Any undeclared student who has taken courses associated with a specific major’s curriculum must be calculated within that program, even if student has not officially declared that major.

32. Reporting-Request for 35% Waiver (Request from your ELR)
When 35 percent or less of a school’s total enrollment receive VA benefits, the school and each branch with separate administrative capability may certify to that effect and receive a waiver of periodic reporting of the percentage of VA students enrolled in each program. The school must count all students receiving VA benefits on the VA side of the ratio. The certification is required only once. The waiver will remain in effect unless the school’s percentage of VA students rises above 35 percent.

33. Reporting-Request for 35% Waiver Accepted
This is to inform you that we have accepted your waiver request of the reporting requirements under CFR due to having 35% or less of your total students receiving VA education benefits. This waiver will remain in continuous effect. You will still need to calculate your 85/15 enrollment numbers each term; however you are not required to report to them to the VA unless a program/course exceeds 85% or your total student enrollment exceeds 35%. This waiver was based on your calculations that were submitted on: _______________.

34. Waiver in WEAMS

35. Questions

36. References Works Cited
Agish, M., Barrett, S., Fahey, M., McGlinchy, A., Naughton, J., & Tsonopoulos, O. (2015). Counterfeit Ed. Retrieved May 1, 2018, from NYCitynewsservice:
New York Times. (1956, July 22). GI School Law Ends Wednesday. Retrieved May 1, 2018, from Veterans Education Success:

37. Thank you
Sharon Seidl
MN ELR