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