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 informaci¢n 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 cl¡nicas externas del Departamento de Asuntos de Veteranos.

En aquellos estados donde hay una gran concentraci¢n de veteranos y dependientes de habla Hispana, las Oficinas del Departamento de Asuntos de Veteranos tienen consejeros bilingšes 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 in the home they are buying or building with a VA guaranty. Also, when a veteran wishes to refinance or improve a home with a VA guaranty, the veteran must certify to being in occupancy at the time of application. In refinancing outstanding VA-guaranteed loans solely to reduce the interest rate, veterans need only certify to prior occupancy. Veterans purchasing homes with GI loans also are required to certify they will not discriminate in the resale of their homes.

Release of Liability

Upon request, when a veteran sells residential property financed through a VA guaranty, the veteran may be released from liability to the federal government, provided the loan is current and the purchaser has been obligated by contract to purchase the property and assume all of the veteran's liabilities and VA is satisfied that the purchaser is a good risk. A release of liability does not mean that a veteran could have the VA guaranty entitlement restored. VA usually restores entitlement only when it is no longer liable to the lender on the guaranty and the veteran is otherwise eligible for restoration. The release of a veteran from liability to the government does not change the fact that VA continues to remain liable on the guaranty. If a veteran-buyer, however, agrees to substitute entitlement for that of the original veteran-borrower and if all other requirements for substitution of entitlement are met, the veteran-seller may qualify for restoration.

For loans made on or after March 1, 1988, a release from liability determination must be made in every case involving the assumption of a VA-guaranteed loan. This will involve a determination of the good credit of the buyer assuming the loan by the holder of the loan or VA. A VA loan for which a commitment was made on or after March 1, 1988, is not assumable without approval of VA or its authorized agent. The person who assumes a VA loan for which a commitment was made on or after March 1, 1988, must pay a fee to VA equal to 1/2 of 1 percent of the balance of the loan being assumed. If a person disposes of the property securing a VA loan for which a commitment was made on or after March 1, 1988, without first notifying the holder of the loan, the holder may demand immediate and full payment of the amount owing on the loan.

Repossessed Houses

In many areas, VA has homes for sale that have been acquired after foreclosure of a VA-guaranteed loan. These homes are available for resale to both veterans and non-veterans. For information, contact local real estate agents for available listings.

Life Insurance

For information about government life insurance, veterans may call the VA Insurance Center toll-free, 1-800-669-8477. Specialists are available between the hours of 8 a.m. and 6:30 p.m., ET, to discuss premium payments, insurance dividends, changes of address, policy loans, naming beneficiaries and reporting the death of the insured or a beneficiary. After hours a caller may leave a recorded message, which will be answered on the next workday. If the policy number is unknown, send the veteran's VA file number, Social Security number, military serial number or military service branch and dates of service with date of birth to one of two VA insurance centers. For states east of the Mississippi River, or for any policy which is being paid by a deduction from VA benefits, military retired pay or a checking account, send to: Department of Veterans Affairs Regional Office and Insurance Center P.O. Box 8079 Philadelphia, PA 19101

For states west of the Mississippi River, and the states of Minnesota, Wisconsin, Illinois, Indiana and Mississippi, send to:

Department of Veterans Affairs
Regional Office and Insurance Center
Bishop Henry Whipple Bldg.
Fort Snelling
St. Paul, MN 55111

Status of Life Insurance Programs

Ending       Policy
Beginning        Date for      Letter
Program                     Date          New Issues     Prefix

U.S. Government (USGLI)   May 1919        April 24, 1951  K

National Service (NSLI) Oct. 8, 1940 April 24, 1951 V,H Veterans Special (VSLI) April 25, 1951 Dec. 31, 1956 RS,W

Service Disabled (SDVI)   April 25, 1951  Still Open      RH
Veterans Reopened (VRI)   May 1, 1965     May 2, 1966     J,JR,

JS
Servicemen's Group (SGLI) Sept. 29, 1965 Still Open Veterans Mortgage (VMLI) Aug. 11, 1971 Still Open Veterans' Group (VGLI) Aug. 1, 1974 Still Open

Dividends Can Increase Total Insurance

Since July 1, 1972, the maximum amount of government life insurance, exclusive of SGLI, VGLI and VMLI, can be increased from a ceiling of $10,000. Policyholders with WWII National Service Life Insurance (V) can use their dividends to purchase additional paid-up coverage, permitting insureds to have more than $10,000 coverage. Policyholders with Veterans Special Life Insurance (RS, W) and Veterans Reopened Insurance (J, JR, JS) also can purchase additions to coverage.

Service-Disabled Veterans Insurance

Veterans who are granted a service-connected disability but are otherwise in good health may apply to VA for up to $10,000 life insurance coverage at standard insurance rates within two years from the date VA notifies the veteran that the disability has been rated as service connected. This insurance is limited to veterans who left service after April 24, 1951. Veterans who are totally disabled may apply for a waiver of premiums. For those veterans who are eligible for this waiver, an additional policy of up to $20,000 is available. Premiums, however, cannot be waived on the additional insurance.

Reinstatement of Lapsed Insurance

Lapsed term policies may be reinstated within five years from the date of lapse. However, NSLI on the Limited Convertible Term Plan (Policy prefix W) may not be reinstated if the term insurance expired after the policyholder's 50th birthday. Lapsed permanent plan policies may be reinstated at any time except that "J" and "JR" policies must be reinstated within five years from date of lapse, and an endowment plan must be reinstated within the endowment period.

Automatic Renewal

A five-year term policy which is not lapsed at the end of the term period is automatically renewed for an additional five-year period. The exception is the NSLI Limited Convertible Term Plan (policy prefix W) which may be converted to a permanent plan, but cannot be renewed after the insured's 50th birthday. The premium rate for each renewal is based on the attained age of the insured, except "V" and "RS" prefixed policies renewed beyond age 70. The rate on these policies is based on the age 70 renewal rate, with no further increases occurring over the remaining life of the contract.

Convertibility

Any term policy which is in force may be convened to a permanent plan if requirements are met. NSLI policyholders, however, are not eligible to convert to an endowment plan while totally disabled. Upon reaching renewal at age 70 or older, NSLI "V" and "RS" term policies on total disability premium waiver are automatically converted to a permanent plan of insurance which provides cash and loan value as well as higher annual dividends.

Modified Life

A "modified life at age 65" plan of insurance is available to NSLI policyholders. The comparatively low premium rates for this plan remain the same throughout the premium-paying period, while the face value reduces by 50 percent at age 65. The reduced amount may be replaced with a "special ordinary life" plan, for an additional premium. In 1972, a "modified life at age 70" plan became available, which is like the modified life at age 65 plan except that face value reduction does not occur until age 70. The premium rate is only slightly higher than for the modified life at age 65 plan.

Dividends

Dividends are paid to holders of "K," "V," "RS," "W," "J," "JR," and "JS" insurance on the policy anniversary date. Dividends are not paid to holders of "H" or "RH" policies, or to those insured under SGLI, VMLI and VGLI. The Internal Revenue Service has announced that interest on insurance dividends left on deposit with the VA is not taxable. For details on this ruling contact the IRS.

Guaranteed Permanent Plan Policy Values

When a permanent plan policy has had premiums paid or waived for at least one year, and it is not lapsed, the guaranteed values include cash surrender, loan and reduced paid-up provisions. If a permanent plan policy lapses after being in force for at least three months, it will automatically be extended as term insurance. The period of this protection is determined by the net cash value of the policy. The amount of extended coverage is the face value less any indebtedness.

Policy Loans

Policyholders may borrow up to 94 percent of the cash surrender value of their permanent plan on insurance and continue the insurance in force by payment of premiums. All NSLI policy loans applied for on and after Nov. 2, 1987, are charged interest at an adjustable rate which is adjusted each Oct. 1. Changes to the adjustable loan interest rate are tied to the 10-year U.S. Treasury securities index. The annual interest charged on adjustable-rate loans will not go higher than 12 percent or lower than 5 percent. The interest rates on United States Government Life Insurance (USGLI) policy loans and existing fixed rate NSLI policy loans will remain unchanged. Interest on policy loans is compounded annually. The current interest rate may be obtained at any VA office, or by calling the toll-free number, 1-800-669-8477.

Total or Permanent Disability

NSLI policyholders who become totally disabled before their 65th birthday and are likely to remain so for six or more months should consult VA about their entitlement to premium waiver. USGLI policyholders who become totally and permanently disabled should consult VA about receiving the proceeds of their policies in monthly payments.

Total Disability Income Provision (TDIP)

Full information about adding the TDIP rider to a policy is available from the VA Regional Office and Insurance Center which maintains the veteran's insurance records, or the nearest VA office. The provision currently provides that an NSLI policyholder will be paid $10 per month, per $1,000 insurance, after being totally disabled for six consecutive months. A few older riders pay $5 per month. In either instance, disability must have commenced before the insured reached the 60th or 65th birthday, depending upon the insurance. USGLI policies also carry a TDIP provision. The amount of the monthly payment, however, differs from that paid to NSLI policyholders. TDIP payments do not reduce the face value of the policy. TDIP is not available for policies with the prefix "RH," "JR," or "JS."

Servicemen's Group Life Insurance (SGLI)

All members of the uniformed services, including cadets and midshipmen of the four service academies, are automatically insured under Servicemen's Group Life Insurance (SGLI) for $100,000, unless they elect in writing to be covered for a lesser amount, or not to be covered at all. They also may purchase up to an additional $100,000 for a total of $200,000. Full-time coverage is also provided, under certain conditions, for (1) persons who volunteer for assignment to the Ready Reserve of a uniformed service, and (2) persons assigned to--or who, upon application, would be eligible for assignment to--the Retired Reserve of a uniformed service and have completed at least 20 years of satisfactory service creditable for retirement purposes.

Part-time coverage is provided, under certain conditions, to members of the reserves who do not qualify for full-time coverage.

Premiums are deducted automatically from a member's pay, or otherwise collected from members on active duty or in the Ready Reserve by their uniformed service. Members of the Retired Reserve currently must submit premiums directly to the Office of Servicemen's Group Life Insurance (OSGLI).

Members performing full-time duty under calls or orders not limited to 30 days or less, and members of the Ready Reserve who qualify for full-time coverage, are covered for 120 days following separation from service with no additional premium during that period. Those members who are totally disabled at separation retain SGLI coverage up to one year or until the disability ceases to be total in degree, whichever occurs first, with no additional premium cost during this period.

Members of the reserve who qualify for full-time coverage and who are eligible for assignment to or are assigned to the Retired Reserve may convert their coverage to an individual commercial policy with any of the participating companies. As an alternative, they may continue their SGLI coverage after separation or release from their reserve obligation, provided the initial premium with identifying information is submitted within 120 days of release to the Office of Servicemen's Group Life Insurance, 213 Washington St., Newark, N.J. 07102. If the initial premium is not submitted within the 120 days, coverage may be granted, provided an application -- SGLV 871 3, Evidence of Insurability -- and the initial premium are submitted to OSGLI within one year after the member's SGLI coverage is terminated.

Veterans' Group Life Insurance (VGLI)

SGLI may be convened to renewable five-year term coverage known as VGLI (Veterans' Group Life Insurance). This program is administered by OSGLI (Office of Servicemen's Group Life Insurance), 213 Washington St., Newark, N.J., 07102, and is supervised by the Department of Veterans Affairs. Coverage may be obtained in increments of $10,000 up to a maximum of $200,000, but not more than the amount of SGLI that the member had in force at the time of separation from military service.

VGLI is available to:

(a) Individuals being released from active duty after Aug. 1, 1974.

(b) Reservists who, while performing active duty or inactive duty for training for a period of less than 31 days, suffer a disability which renders them uninsurable at standard premium rates.

(c) Members of the Individual Ready Reserve (IRR) and Inactive National Guard (ING).

Members on active duty entitled to SGLI coverage can convert to VGLI by submitting the premium within 120 days of separating from active duty. The insurance is effective on the 121 st day. After 121 days, the veteran still may be granted VGLI provided initial premium and evidence of insurability are submitted within one year after the veteran's SGLI coverage is terminated. Insurance will be effective the day the premium is received in the office of SGLI. Members with fulltime SGLI coverage who are totally disabled at the time of separation and whose service makes them eligible for VGLI may purchase the insurance while remaining totally disabled up to one year following separation. The effective date of VGLI will be at the end of the one-year period following separation or the date the disability ends, whichever is earlier, but not prior to 120 days after separation. Members insured under part-time SGLI coverage who incur a disability or aggravate a pre-existing disability during a reserve active or inactive period can, within the 120-day period following the period during which the disability was incurred or aggravated, apply for VGLI.

Totally disabled members must submit proof of disability with an application and the first premium. As persons separate from active duty, re-enlist and effect other changes in duty status, they may be eligible for both SGLI and VGLI. Any former member insured under VGLI who may again become eligible for SGLI is automatically insured under the SGLI program. Both plans can be participated in if it is advantageous to the individual, as long as the combined amount of SGLI and VGLI does not exceed $200,000.

A VGLI policy holder has the right to convert to an individual commercial policy at standard premium rates, regardless of health, with any of the participating companies licensed to do business in the veteran's state. The individual policy will be effective the date after the insured's VGLI terminates at the end of any five-year period. The OSGLI will advise the insured of the impending date of termination and give information regarding the conversion of VGLI to an individual policy.

Individuals who remain in the IRR or ING throughout their period of VGLI coverage can renew their VGLI for additional five-year periods instead of converting to an individual policy. They can still convert at the end of subsequent periods of coverage. Veterans wanting further information may contact their nearest VA office, or write to or call the Office of Servicemen's Group Life Insurance at (201) 802-7676.

Veterans Mortgage Life Insurance (VMLI)

The maximum amount of mortgage life insurance available for those who have been granted or will be granted a specially adapted housing grant is $90,000. Protection is automatic unless eligible veterans decline in writing or fail to respond to a final request for information on which their premium can be based. Premiums are automatically deducted from VA benefit payments or paid direct, if the veteran does not draw compensation, and will continue until the mortgage, up to the maximum amount of insurance, has been liquidated, or the home is sold, or until the coverage terminates when the veteran reaches age 70, or dies. If a mortgage is disposed of through liquidation or sale of the property, VMLI may be obtained on the mortgage of a second or subsequent home.

Income Tax Ruling

The Internal Revenue Service has announced that interest on insurance dividends left on deposit with the VA is not taxable. For details on this ruling contact the IRS.

VA Office of Small and Disadvantaged Business Utilization

VA has an Office of Small and Disadvantaged Business Utilization (OSDBU) to assist small businesses to contract with and sell to the department. OSDBU provides information to large and small firms interested in doing business with VA. Like other federal purchasers, VA is required to place a fair portion of its contracts and purchases with small and disadvantaged businesses. VA also promotes business with veterans by requiring VA contracting offices to include veteran-owned contractors in mailings to solicit bids. These businesses are identified from the Procurement Automated Source System (PASS) maintained by the SBA. For more information, write to OSDBU (005SB) at the Department of Veterans Affairs, 810 Vermont Ave., N.W., Washington, D.C. 20420.

Homeless Veterans

A number of VA benefits assist eligible homeless veterans, including disability compensation, pension, education, and burial benefits, which aid in efforts to resolve the economic problems of homeless veterans. Homeless veterans also are provided special assistance through many program initiatives which include:

• Directing benefit payments for homeless veterans to VA facilities in the absence of a permanent mailing address;

• Selling foreclosed properties to non-profit organizations and government agencies to shelter homeless veterans.

VA also continues to expand its health and rehabilitation programs for homeless veterans, which currently include the following initiatives:

• 45 Homeless Chronically Mentally III program sites that provide comprehensive medical, psychological and rehabilitation treatment programs through case management and community-based residential care;

• 27 Domiciliary Care for Homeless Veterans program sites that provide active residential rehabilitation services;

• A growing number of Compensated Work Therapy/Therapeutic Residence group homes; special day-time, drop-in centers; and Comprehensive Homeless Centers.

VA also has joined with the Department of Housing and Urban Development, the Social Security Administration, veterans service organizations, and community non-profit homeless service providers in special partnerships that help VA provide comprehensive care for homeless veterans. For information contact the nearest VA regional office or medical center.

Women Veterans

Women veterans are eligible for the same VA benefits as male veterans. In addition, VA is required to provide appropriate and timely medical care to any eligible woman veteran for gender-specific disabilities. Women veteran coordinators have been designated at each VA medical center and regional office to counsel women veterans seeking treatment and benefits. VA medical centers have made structural changes or renovated areas to ensure privacy for women veteran patients. In addition to routine medical care, each VA medical facility will provide to eligible women veterans: a complete physical exam that includes breast and pelvic examinations; adequate inpatient gynecology services; outpatient gynecology services; and referral procedures for necessary services that may not be available at that facility.

Special Groups with Veterans Benefits

A number of groups who have provided military-related service to the United States have been granted VA benefits. For the service to qualify, the Defense Secretary must certify that the group has provided active military service. Individual members must be issued a discharge by the Defense Secretary to qualify for VA benefits. Service in the following groups has been certified as active military service for benefits purposes:

1. Women's Air Forces Service Pilots (WASPs).

2. Signal Corps Female Telephone Operators Unit of World War I.

3. Engineer Field Clerks.

4. Women's Army Auxiliary Corps (WAAC).

5. Quartermaster Corps female clerical employees serving with the AEF (American Expeditionary Forces) in World War I.

6. Civilian Employees of Pacific Naval Air Bases who actively participated in defense of Wake Island during World War II.

7. Reconstruction aides and dietitians in World War I.

8. Male civilian ferry pilots.

9. Wake Island defenders from Guam.

10. Civilian personnel assigned to the Secret Intelligence Element of the OSS.

11. Guam Combat Patrol

12. Quartermaster Corps Keswick crew on Corregidor (WWII).

13. U.S. civilian volunteers who actively participated in the defense of Bataan.

14. U.S. merchant seamen who served on blockships in support of Operation Mulberry.

15. American merchant marines in oceangoing service during the period of armed conflict, Dec. 7, 1941, to Aug. 15, 1945.

16. Civilian Navy IFF technicians who served in the combat areas of the Pacific during World War II, Dec. 7, 1941, to Aug. 15, 1945.

17. U.S. civilians of the American Field Service who served overseas in World War I between Aug. 31, 191 7, and Jan. 1, 1918.

18. U.S. civilians of the American Field Service who served overseas under U.S. armies and U.S. army groups in World War II between Dec. 7, 1941, and May 8, 1945.

19. U.S. civilian employees of American Airlines who served overseas in a contract with the Air Transport Command between Dec. 14, 1941, and Aug. 14, 1945.

20. Civilian crewmen of U.S. Coast and Geodetic Survey vessels who served in areas of immediate military hazard while conducting cooperative operations with and for the U.S. Armed Forces between Dec. 7, 1941, and Aug. 15, 1945.

21. Honorably discharged members of the American Volunteer Group (Flying Tigers) who served between Dec. 7, 1941, and July 18, 1942.

22. U.S. civilian flight crew and aviation ground support employees of United Air Lines who served overseas in a contract with Air Transport Command between Dec. 14, 1941, and Aug. 14, 1945.

23. U.S. civilian flight crew and aviation ground support employees of Transcontinental and Western Air Inc. (TWA), who served overseas in a contract with the Air Transport Command between Dec. 14, 1941, and Aug. 14, 1945.

24. U.S. civilian flight crew and aviation ground support employees of Consolidated Vultee Aircraft Corp. (Consairway Division) who served overseas in a contract with Air Transport Command between Dec. 14, 1941, and Aug. 14, 1945.

25. U.S. civilian flight crew and aviation ground support employees of Pan American World Airways and its subsidiaries and affiliates, who served overseas in a contract with the Air Transport Command and Naval Air Transport Service between Dec. 14, 1941, and Aug. 14, 1945.

26. Honorably discharged members of the American Volunteer Guard, Eritrea Service Command, between June 21, 1942, and March 31, 1943.

Benefits for Survivors

Dependency and Indemnity Compensation Death Due to Service-Connected Disability

Dependency and Indemnity Compensation (DIC) payments are authorized for surviving spouses, unmarried children under 18 (as well as certain helpless children and those between 18 and 23 if attending a VA-approved school), and certain parents of service personnel or veterans who died from: (a) a disease or injury incurred or aggravated in line of duty while on active duty or active duty for training; or (b) an injury incurred or aggravated in line of duty while on inactive duty training; or (c) a disability compensable by VA. Death cannot be the result of willful misconduct.

Death Due to a Nonservice-Connected Cause

DIC payments also are authorized for surviving spouses, unmarried children under 18 (as well as certain helpless children and those between 18 and 23 if attending a VA-approved school), of certain veterans who were totally service-connected disabled at time of death but whose deaths were not the result of their service-connected disability, if: (1) the veteran was continuously rated totally disabled for a period of 10 or more years or (2) if the veteran was rated for less than 10 years, was so rated for a period of not less than five years from the date of discharge from military service. Payments under this provision are subject to offset by the amount received from judicial proceedings brought on account of the veteran's death.

If death occurred after service, the veteran's discharge must have been under conditions other than dishonorable.

Definition of Surviving Spouse

Date of Marriage--To qualify, a surviving spouse generally must have been married to the veteran one year or more, or for any period of time if a child was born of the union.

Residence with Veteran--The surviving spouse must have lived continuously with the veteran from the time of marriage until the veteran's death, except where there was a separation not due to the fault of the surviving spouse.

Surviving Spouse Remarriage--Remarriage makes a surviving spouse ineligible based on the death of that veteran unless the remarriage is made void or is annulled by a court. A surviving spouse may also be ineligible if, after the death of the veteran, the spouse has lived with another man or woman and held herself or himself out openly to the public to be the spouse.

Deemed-Valid Marriage--If she or he meets the other qualifications, a spouse who married a veteran without knowing that a legal impediment to the marriage existed may be eligible for compensation.

DIC Payments to Surviving Spouse

Effective Jan. 1, 1993, all surviving spouses of veterans who died on or after that date will receive $750 a month. An additional $165 a month will supplement the basic rate if the deceased veteran had been entitled to receive 100 percent service-connected compensation for at least eight years immediately preceding death. For a surviving spouse entitled to DIC based on the veterans's death prior to Jan. 1, 1993, the amount paid will be the greater of the rates listed or the amount based on the veteran's pay grade as given in the following table.

DIC Rate

Pay grade             Monthly rate
E-1                   $ 634
E-2                     654
E-3                     672
E-4                     714
W-1                     803
W-2                     835
W-3                     860
W-4                     911
0-6                   1,168
0-7                   1,262
0-8                   1,383
0-9                   1,483
0-10*                 1,627

• There may be special rates for individuals in these pay grades

There are additional payments for children. The monthly DIC rates for parents depend upon the income of the parents and whether there is only one parent, two parents not living together or two parents together or remarried. The income limit for two parents together or remarried and with spouse is $11,653; the limit for one parent or two parents not together is $8,667.

Aid and Attendance

Surviving spouses and parents receiving DIC may be granted a special allowance to pay for aid and attendance if they are patients in a nursing home or require the regular assistance of another person. The allowance is $191 monthly, in addition to the DIC rate for a surviving spouse, and $192 monthly additional for a parent receiving DIC.

Housebound

Surviving spouses receiving DIC who are not so disabled as to require the regular aid and attendance of another person but who, due to disability, are permanently housebound may be granted a special allowance of $93 a month in addition to the DIC rate.

Reinstated Entitlement Program for Survivors (REPS)

Certain survivors of veterans who died of service-connected causes incurred or aggravated prior to Aug. 13, 1981, are eligible for benefits. The benefits are similar to the benefits for students and surviving spouses with children between ages 16 and 18 which were eliminated from Social Security benefits. The benefits are payable in addition to any other benefits to which the family may also be entitled. The amount of benefits is based on information obtained from the Social Security Administration.

Death Compensation Relating to Deaths Before Jan. 1, 1957

Death compensation payments are authorized for surviving spouses, helpless children, and dependent parents of servicepersons or veterans who died before Jan. 1, 1957, from a service-connected cause not the result of willful misconduct. Survivors with eligibility for death compensation benefits may elect instead to receive DIC benefits. Generally the DIC benefits will pay greater rates, especially for surviving spouses and children. More specific information about death compensation benefits may be obtained from the nearest VA regional office. If a survivor has eligibility for both death compensation and DIC, the VA office processing the claim will notify the survivor about the dual entitlement.

Nonservice-Connected Death Pension

Surviving spouses and unmarried children under age 18--or until age 23 if attending a VA-approved school--of deceased veterans with wartime service may be eligible for a nonservice-connected pension based on need. Pension is not payable to those with estates large enough to provide maintenance.

The veteran must have had 90 days of wartime service, unless discharged or retired for service-connected disability, and been discharged under conditions other than dishonorable. !f the veteran died in service not in line of duty, benefits may be payable if the veteran had completed at least two years of honorable active service.

Qualified children who became permanently incapable of self-support because of a mental or physical defect before reaching age 18 may receive a pension as long as the condition exists or until they marry.

A surviving spouse who is a patient in a nursing home or is 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 upon the type of pension received.

Definition of Surviving Spouse

Date of Marriage--The spouse must have married the veteran at least one year prior to the veteran's death. unless a child resulted from the union.

Residence with Veteran--The spouse must have lived continuously with the veteran from the time of marriage until the veteran's death, unless there was a separation not due to the fault of the surviving spouse.

Remarriage--Remarriage following the death of the veteran makes the surviving spouse ineligible for pension unless the remarriage is made void or is annulled by a court. A surviving spouse also may be ineligible if after the death of the veteran the spouse lived with another and was held out openly to the public to be the spouse.

Deemed-Valid Marriages--A spouse may be eligible for pension if married to the veteran without knowing that a legal impediment to the marriage existed.

Benefits

The Improved Pension program provides a monthly payment to bring an eligible person's income to a support level that has been established by law. This support level is reduced by the annual income from other sources such as Social Security that may be payable to the surviving spouse or dependent children. Countable income may be reduced by certain unreimbursed medical expenses. Pension is not payable to those who have assets that can be used to provide adequate maintenance.

Improved Pension Annual Income

Surviving spouse with no dependent children        $5,106
Surviving spouse with one dependent child          $6,689
Surviving spouse in need of regular aid and
attendance with no dependent child               $8,167
Surviving spouse in need of regular aid and
attendance with one dependent child              $9,746
Surviving spouse permanently housebound
with no dependent child                          $6,243
Surviving spouse permanently housebound
with one dependent child                         $7,822
Increase for each additional dependent child       $1,296

Pension rates for surviving children: for each child

Montgomery G.I. Bill (Active Duty) Death Benefit

VA will pay a death benefit to a designated survivor if the serviceperson's death is in service or within one year after discharge or release, and is service connected, if the serviceperson was participating in the Montgomery G.I. Bill at time of death.

The death benefit also will be paid if the serviceperson would have been eligible to participate but for the high school diploma requirement and the length-of-service requirement. The amount paid will be equal to the participant's actual military pay reduction less any education benefits paid or any accrued benefits.

Survivors' and Dependents' Education

Eligibility

Educational assistance benefits are available to spouses and children of:

(a) Veterans who died, or are permanently and totally disabled, as the result of a disability arising from active service in the Armed Forces.

(b) Veterans who died from any cause while rated permanently and totally disabled from service-connected disability.

(c) Servicepersons currently missing in action or captured in line of duty by a hostile force.

(d) Servicepersons presently detained or interned in line of duty by a foreign government or power.

Education and Training Available

Benefits may be awarded for pursuit of associate, bachelor or graduate degrees at colleges and universities--including independent study, cooperative training and study abroad programs. Courses leading to a certificate or diploma from business, technical or vocational schools also may be taken. Benefits also may be awarded for apprenticeships, on-job training programs and farm cooperative courses. Benefits for correspondence courses are available to spouses only. Secondary-school programs may be pursued if the individual is not a high-school graduate. An individual with a deficiency in a subject also may receive tutorial assistance benefits if enrolled half-time or more. Remedial, deficiency and refresher training also may be available.

Special Benefits

An eligible child with a physical or mental disability that impairs pursuit of an educational program, a special vocational or another appropriate program may receive special restorative training to lessen or overcome that impairment. This training may include speech and voice correction, language retraining, lip reading, auditory training, Braille reading and writing, and similar programs. Specialized vocational training also is available to an eligible spouse or child over age 14 who is handicapped by a physical or mental disability that prevents pursuit of an educational program.

Counseling Services

VA will provide counseling services, including testing, to help an eligible dependent select an educational or vocational objective, develop a plan to achieve it, and overcome any problems interfering with successful achievement.

Payments

Payments are made monthly. The full-time rate is $404 a month for full-time school attendance, with lesser amounts for part-time training. A person may receive educational assistance for up to 45 months, or the equivalent in part-time training.

Period of Eligibility

Benefits to a spouse end 10 years from the date VA first finds the individual eligible. VA may grant an extension of this period if a physical or mental disability prevented the individual from using some portion of the education benefits. The disability must occur during the individual's 10-year period of eligibility. Children generally must be between the ages of 18 and 26 to receive benefits. Extensions may be granted, including those for time the child spends on active duty. No extension can go beyond the individual's 31st birthday.

Work-Study

To receive work-study benefits, participants must train at the three-quarter or full-time rate. Participants will be paid in advance 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. Work-study may include outreach services under the supervision of a VA employee, preparing and processing VA paperwork, working at a VA medical facility, or performing other approved activities.

Educational Loans

Loans are available to dependents who qualify for Survivors' and Dependents' Educational Assistance benefits. Survivors and dependents who have passed their 10-year period of eligibility and who have remaining entitlement may be eligible for an educational loan. During the first two years after the end of their eligibility period they may borrow up to $2,500 per academic year to continue a full-time course leading to a college degree or to a professional or vocational objective which requires at least six months to complete. VA may waive the six-month requirement. The loan program is based on financial need.

Home Loan Guaranties

A GI loan guaranty to acquire a home may be available to an unremarried spouse of a veteran or serviceperson who served after Sept. 16, 1940, and who died as a result of service-connected disabilities, or to a spouse of a serviceperson who has been officially listed as missing in action or as a prisoner of war for more than 90 days. Spouses of those listed as POW or MIA are limited to one loan.

Burial Benefits

Burial in National Cemeteries Benefit

Burial benefits in a VA national cemetery include the gravesite, opening and closing of the grave, and perpetual care. Many national cemeteries have columbaria for the inurement of cremated remains or special gravesites for the burial of cremated remains. Headstones and markers and their placement are provided at the government's expense. For a list of available cemeteries, see the "VA Facilities" section in the back of this book.

Eligibility

Veterans discharged or separated from active duty under conditions other than dishonorable who have completed the required period of service, and armed forces members who die on active duty are eligible for burial in one of VA's 114 national cemeteries. Service by a U.S. citizen in the armed forces of a government allied with the U.S. in a war also can earn eligibility. Spouses and dependent, minor children of eligible veterans and of armed forces members also may be buried in a national cemetery.

The surviving spouse of an eligible veteran who remarried a non-veteran prior to Oct. 31, 1990, and whose remarriage was terminated by death or divorce prior to or on that date is eligible for burial in a national cemetery. A surviving spouse of an eligible veteran who remarried a non-veteran prior to Oct. 31, 1990, and whose remarriage was still intact on or after that date, however, is not eligible for burial in a national cemetery. A surviving spouse who remarries a non-veteran after Oct. 31, 1990, is not eligible for burial in a national cemetery.

Gravesites in national cemeteries cannot be reserved. Funeral directors or others making burial arrangements must apply at the time of death. Reservations made under previous programs are honored. The National Cemetery System does not normally conduct burials on weekends. A weekend caller, however, will be directed to one of three strategically located VA cemetery offices that remain open during weekends to schedule burials at the cemetery of the caller's choice during the upcoming week.

Arlington National Cemetery

Arlington National Cemetery, which is under the jurisdiction of the Army, has a more limited eligibility than other national cemeteries. Eligibility for inurement of cremated remains in Arlington's columbarium is the same as eligibility for burial in VA national cemeteries. For information on Arlington burials, write to Superintendent, Arlington National Cemetery, Arlington, VA 22211, or telephone 703-695-3250.

Interior Department, State Veteran Cemeteries

Eligibility criteria similar to VA National Cemetery eligibility apply to the two active national cemeteries administered by the Department of the Interior -- Andersonville National Cemetery in Georgia and Andrew Johnson National Cemetery in Tennessee. Cemeteries for veterans are operated by many states. For burials, contact the Interior Department or the respective state.

Headstones and Markers Benefit

VA provides headstones and markers for the graves of veterans anywhere in the world and for eligible dependents of veterans buried in national, state veteran or federal cemeteries. Flat bronze, flat granite, flat marble and upright marble types are available to mark the grave of a veteran or dependent in the style consistent with existing monuments at the place of burial. Niche markers also are available to mark columbaria used for the inurement of cremated remains.

Headstones and markers are inscribed with the name of the deceased, the years of birth and death, and branch of service. Optional items that also may be inscribed at VA expense are: military grade, rank or rate; war service (such as "World War II"); months and days of birth and death; an emblem reflecting one's beliefs; valor awards received; and the Purple Head. Additional items may be inscribed at private expense.

When burial is in a national cemetery, military post or state veterans cemetery, the headstone or marker is ordered through the cemetery, which will place it on the grave. Information regarding style, inscription, shipping and placement can be obtained from the cemetery.

When burial occurs in a cemetery other than a national cemetery or a state veterans cemetery, the headstone or marker must be applied for from VA. It is shipped at government expense to the consignee designated on the application. VA, however, does not pay the cost of placing the headstone or marker on the grave. To apply, complete VA Form 40-1330 and forward it to Director, Office of Memorial Programs (403A), National Cemetery System, Department of Veterans Affairs, Washington, DC 20420. Forms and assistance are available at VA regional offices. For information regarding the status of an application, write to the Director, Office of Memorial Programs (403B3), or call (202) 2751494 or (202) 275-1495.

Eligibility

Eligibility for a VA headstone or marker is the same as for burial in a national cemetery. VA, however, cannot issue a headstone or marker for a spouse or dependent buried in a private cemetery. In addition, 20-year reservists without active-duty service are eligible for a headstone or grave marker, if they are entitled to military retired pay at the time of death. If the reservist would have been entitled to retired pay but for being under 60 years of age, they also are eligible for a headstone or grave marker.

Headstones or Markers for Memorial Plots Benefit

To memorialize an eligible veteran whose remains are not available for burial, VA will provide a plot and headstone or marker in a national cemetery. The headstone or marker is the same as that used to identify a grave except that the mandatory phrase "In Memory of" precedes the authorized inscription. The plot and headstone or marker are available to memorialize eligible veterans or deceased active-duty members whose remains were not recovered or identified, were buried at sea, donated to science, or cremated and scattered. The memorial marker may be provided for placement in a cemetery at other than a national cemetery. In such a case, VA supplies the marker and pays the cost of shipping the marker to the consignee designated on the application, but does not pay for the cost of the plot or the placement of the marker.

Eligibility

Eligibility for memorial plots and headstones or markers is the same as eligibility for burial in a national cemetery. Only a close relative recognized as the next of kin may apply for the benefit. For more information, contact the director of a national cemetery or a VA regional office.

Presidential Memorial Certificates Benefit

The Presidential Memorial Certificate is a parchment certificate with a calligraphic inscription expressing the nation's grateful recognition of the veteran's service. The veteran's name is inscribed and the certificate bears the signature of the President.

Eligibility

Certificates are issued in the name of honorably discharged, deceased veterans. Eligible recipients include next of kin, other relatives and friends. The award of a certificate to one eligible recipient does not preclude certificates to other eligible recipients. The veteran may have died at any time in the past. The local VA regional office generally originates the application for a Presidential Memorial Certificate if a veteran's death is brought to official attention. The next of kin may request a certificate when a servicemember dies on active duty, or if the veteran was not receiving a VA benefit. Requests should be accompanied by a copy of a document such as a discharge to establish honorable service. VA regional offices can assist in applying for certificates. Requests for certificates recognizing service prior to July 16, 1903, should be sent to the VA Regional Office, 941 N. Capitol St., N.E., Washington, DC 20421.

Burial Flags

VA provides an American flag to drape the casket of a veteran who was discharged under conditions other than dishonorable and to a person entitled to retired military pay, including reservists. After the funeral service, the flag may be given to the next of kin or a close associate of the deceased. VA also will issue a flag on behalf of a servicemember who was missing in action and later presumed dead. Rags are issued at any VA regional office, VA national cemetery and most local post offices.

Reimbursement of Burial Expenses

VA will pay a $300 burial and funeral expense allowance for veterans who, at time of death, were entitled to receive pension or compensation or would have been entitled to compensation but for receipt of military retirement pay. Eligibility also is established when death occurs in a VA facility or a nursing home with which VA contracted. Additional costs of transportation of the remains may be reimbursed in those cases. Concerning service-connected deaths, there is no time limit for filing reimbursement claims. In other deaths, claims must be filed within two years after permanent burial or cremation.

VA will pay a $150 plot or interment allowance when the veteran is not buried in a cemetery that is under U.S. government jurisdiction if the veteran is discharged from active duty because of disability incurred or aggravated in line of duty, or if the veteran was in receipt of compensation or pension or would have been in receipt of compensation but for receipt of military retired pay, or if the veteran died while hospitalized by VA. As of Nov. 1, 1990, the plot allowance is no longer payable based solely on wartime service. If the veteran is buried without charge for the cost of a plot or interment in a state-owned cemetery reserved solely for veteran burials, the $150 plot allowance may be paid to the state. If burial expenses were paid by the deceased's employer or a state agency, the burial allowance will not be reimbursed to those making interment arrangements.

VA will pay a burial allowance up to $1,500 instead of the $300 basic allowance and the $150 plot allowance, if the veteran's death is service-connected. VA also will pay the cost of transporting the remains of a service-disabled veteran to the national cemetery nearest the home of the deceased that has available gravesites. In such cases, the person who bore the veteran's burial expenses may claim reimbursement from VA.

Health Care Benefits

Hospital and Nursing-Home Care

Eligibility for VA hospital care and nursing-home care is divided into two categories: "mandatory" and "discretionary." Eligibility for outpatient medical care is listed separately under "Outpatient Medical Care." An income assessment is made to determine whether a nonservice-connected veteran is eligible for cost-free VA medical care. These income levels are adjusted on Jan. 1 of each year, based on the percentage of increase provided to VA improved pension benefits.

VA must provide hospital care and may provide nursing-home care to veterans in the mandatory category. VA may provide hospital and nursing-home care to veterans in the discretionary category if space and resources are available in VA facilities.

The law requires that VA must provide hospital care to veterans in the mandatory category at the nearest VA facility capable of furnishing the care in a timely fashion. If no VA facility is available, care must be furnished in a Defense Department facility or another facility with which VA has a sharing or contractual relationship. If space and resources at VA hospitals and nursing homes are available after caring for service-connected veterans, then VA may furnish care to those in the nonservice-connected category. Veterans in the discretionary category must agree to pay VA for their care.

MANDATORY CARE: Veterans who must be provided hospital care and may be provided nursing-home care and who are not subject to an income eligibility assessment are: veterans rated with service-connected disabilities, veterans who were exposed to herbicides while serving in Vietnam, veterans exposed to ionizing radiation during atmospheric testing or in the occupation of Hiroshima and Nagasaki, veterans for a condition related to service in the Persian Gulf, former prisoners of war, veterans on VA pension, veterans of the Mexican Border period or World War I, and veterans eligible for Medicaid.

The following income eligibility assessment applies to all other nonservice-connected veterans:

MANDATORY: Hospital care is mandatory if the patient is a nonservice-connected veteran with income of $19,408 or less if single with no dependents, or $23,290 or less if married or single with one dependent. The income maximum is raised $1,296 for each additional dependent. Hospital care in VA facilities must be provided to veterans in the mandatory category. Nursing-home care may be provided in VA facilities, if space and resources are available.

DISCRETIONARY: Hospital care is considered discretionary if the patient is a nonservice-connected veteran and income is above $19,408 if single with no dependents, or $23,290 if married or single with one dependent, plus $1,296 for each additional dependent. For VA care, the patient must agree to pay an amount equal to what would have been paid under Medicare. The Medicare deductible currently is $676 and is adjusted annually. VA may provide hospital, outpatient and nursing-home care in VA facilities to veterans in the discretionary category, if space and resources are available.

If the patient's medical care is considered discretionary, the VA holds the patient responsible for the cost of care or $676 for the first 90 days of care during any 365-day period. For each additional 90 days of hospital care, the patient is charged half the Medicare deductible. For each 90 days of nursing-home care, an amount equal to the Medicare deductible is charged. In addition to these charges, the patient will be charged $10 per day for hospital care and $5 a day for nursing-home

How Income Is Assessed

The patient's total income under the eligibility assessment includes: Social Security, U.S. Civil Service retirement, U.S. Railroad Retirement, military retirement, unemployment insurance, any other retirement income, total wages from all employers, interest and dividends, workers' compensation, black lung benefits, and any other gross income for the calendar year prior to application for care. The income of spouse and dependents as well as the market value of stocks, bonds, notes, individual retirement accounts, bank deposits, savings accounts and cash also are used. Debts are subtracted from the patient's assets to determine net worth. The patient's primary residence and personal property are excluded. The patient must fill out VA Form 10-10f, Financial Worksheet, at the time care is requested. VA has the authority to compare information provided by the veteran with information obtained from the Department of Health and Human Services and the Internal Revenue Service.

Billing Insurance Companies

All veterans applying for medical care at a VA facility will be asked if they have medical insurance. VA is authorized by law to bill insurance companies for the cost of medical care furnished to veterans, including service-connected veterans, for nonservice-connected conditions covered by health insurance policies. A veteran may be covered by such a policy or be covered as an eligible dependent on a spouse's policy. Veterans are not responsible and will not be charged by VA for any charge required by their health-insurance policies. Veterans will not be responsible for uncovered charges from the insurance company, except for copayments required by federal law.

Nursing-Home Care

Benefit

Skilled nursing care and related medical care in VA or private nursing homes is provided for convalescents or persons who are not acutely ill and not in need of hospital care.

Eligibility

Admission or transfer to VA nursing-home care is the same as for hospitalization. Veterans who have a service-connected disability are given first priority. Direct admission to private nursing homes at VA expense is limited to: (1) a veteran who requires nursing care for a service-connected disability after medical determination by VA, (2) any person in an Armed Forces hospital who requires a protracted period of nursing care and who will become a veteran upon discharge from the Armed Forces, or (3) a veteran who had been discharged from a VA medical center and is receiving home health services from a VA medical center. VA may transfer veterans who need nursing-home care to private nursing homes at VA expense from VA medical centers, nursing homes, or domiciliaries. VA-authorized care normally may not be provided in excess of six months except for veterans whose need for nursing-home care is for a service-connected disability or for veterans who were hospitalized primarily for treatment of a service-connected disability. Nursing-home care for nonservice-connected veterans whose income exceeds the income limit for hospital care may be authorized only if the veteran agrees to pay the applicable copayment.

Domiciliary Care

Domiciliary care provides rehabilitative and long-term, health-maintenance care for veterans who require minimal medical care but who do not need the skilled nursing services provided in nursing homes. VA provides domiciliary care to veterans whose annual income does not exceed the maximum annual rate of VA pension, and to veterans the Secretary of Veterans Affairs determines have no adequate means of support.

Outpatient Medical Treatment Benefit

Outpatient medical treatment includes medical examinations and related medical services, drugs and medicines, rehabilitation services, and mental health services. As part of outpatient medical treatment, veterans may be eligible for home health services for the treatment of disabilities. Veterans may be eligible for such Home Improvements and Structural Alterations (HISA) determined necessary for treatment or to provide access to the home or to essential sanitary facilities.

Eligibility

1. VA must furnish outpatient care without limitation:

   • To veterans for service-connected disabilities.

   • To veterans with a 50 percent or more service-connected disability, for any disability.

   • To veterans who have suffered an injury as a result of VA hospitalization, for that condition only.

2. VA must furnish outpatient care for any condition to prevent the need for hospitalization, to prepare for hospitalization or to complete treatment after hospital care, nursing-home care or domiciliary care to:

   • Any 30-40 percent service-connected disabled veteran.

   • Any veteran whose annual income is not greater than the maximum annual pension rate of a veteran in need of regular aid and attendance.

3. VA may furnish outpatient care without limitation to:

   • Veterans in a VA-approved vocational rehabilitation program.

   • Former prisoners of war.

   • World War I or Mexican Border Period veterans.

   • Veterans who receive increased pension or compensation based on the need for regular aid and attendance of another person, or who are permanently housebound.

4. VA may furnish outpatient care to prevent the need for hospitalization, to prepare for hospitalization, or for a condition for which the veteran was hospitalized to:

   • Any 0-20 percent service-connected disabled veteran.

   • Veterans exposed to a toxic substance during service in Vietnam, or exposed to ionizing radiation following the detonation of a nuclear device.

   • Any mandatory category veteran whose income is more than the pension rate of a veteran in need of regular aid and attendance.

   • Discretionary category veterans, subject to a copayment of $33 per outpatient visit.

   • Allied beneficiaries, beneficiaries of other federal agencies and certain other nonveterans.

Outpatient Pharmacy Services

Veterans receiving medication for treatment of service-connected conditions and veterans rated with 50 percent or more service-connected disability are not charged for pharmacy services. Veterans whose annual income does not exceed the maximum VA pension are not charged. Veterans receiving medication on an outpatient basis from VA facilities for the treatment of nonservice-connected disabilities or ailments are charged $2 for each 30-day supply or less.

Outpatient Dental Treatment

Outpatient dental treatment may include examinations and the full spectrum of diagnostic, surgical, restorative and preventive techniques. The following are eligible for dental treatment:

(a) Dental conditions or disabilities that are service connected and compensable in degree will be treated.

(b) Service-connected dental conditions or disabilities that are not compensable in degree may receive one-time treatment if the conditions can be shown to have existed at discharge or within 180 days of release from active service. Veterans must apply to VA for care for the service-connected dental condition within 90 days following separation. Veterans will not be considered eligible if their separation document indicates that necessary treatment was completed by military dentists during the 90 days prior to separation. Veterans who served on active duty for 90 days or more during the Persian Gulf War are included in this category.

(c) Service-connected, noncompensable, dental conditions resulting from combat wounds or service injuries, and service-connected, noncompensable, dental conditions of former prisoners of war who were incarcerated less than 90 days may be treated.

(d) Veterans who were prisoners of war for more than 90 days will receive complete dental care.

(e) Veterans will receive complete dental care if they are receiving disability compensation at the 100-percent rate for service-connected conditions or are eligible to receive it by reason of unemployability.

(f) Nonservice-connected, dental conditions that are determined by VA to be associated with and aggravated by service-connected, medical problems will be treated.

(g) Disabled veterans participating in a vocational rehabilitation program will be treated.

(h) Veterans will be treated for nonservice-connected, dental conditions or disabilities when treatment was begun while in a VA medical center, when it is professionally determined to be reasonably necessary to complete such dental treatment on an outpatient basis.

(i) Veterans scheduled for admission to inpatient services or who are receiving medical services will be provided outpatient dental care if the dental condition is professionally determined to be complicating a medical condition currently under treatment by VA.

Nonservice-connected veterans who are authorized outpatient dental care may be billed the applicable copayment if their income exceeds the maximum threshold.

Persian Gulf, Agent Orange and Ionizing Radiation

Registry Examination Programs

Under the auspices of VA's Persian Gulf, Agent Orange and Ionizing Radiation Registries, veterans who served in the Persian Gulf War or who claim exposure to Agent Orange or atomic radiation are provided with free, comprehensive medical examinations, including base-line laboratory tests and other tests determined necessary by an examining physician to determine current health status. Results of the examinations, which include completion of a questionnaire about the veteran's military service and exposure history, are entered into special, computerized programs maintained by VA. These databases assist VA in analyzing the types of health conditions being reported by veterans. Registry participants are advised of the results of their examinations by personal consultation. Each registry serves as an outreach mechanism which assists VA in providing participants with significant information of concer