House Committee on Veterans' Affairs

Washington, D.C. - On Thursday, October 15, 2009, Economic Opportunity Subcommittee Chairwoman Stephanie Herseth Sandlin (D-SD) conducted a hearing to review the implementation of the Post-9/11 Veterans Educational Assistance Act of 2008 (Post-9/11 G.I. Bill). 

A number of issues have been raised by veterans, veteran service organizations, and media entities concerning problems with veterans receiving their education benefit in a timely manner.  In response, Department of Veterans Affairs Secretary Shinseki authorized issuance of advance payments to veterans enrolled in school who have not received their benefits.  On October 2, 2009, VA began issuing advance education payments to veterans, in amounts up to $3,000, at the 57 Regional Offices and through an on-line portal on the VA’s website.  In the first week, VA made advance payments to more than 41,000 veterans totaling approximately $120 million.  Payments made under this special provision will be recouped from Veterans’ future benefits. 

“This Subcommittee is seeking assurances that the Department of Veterans Affairs has sufficient resources to meet the goals and demands placed upon it by the new education benefits offered under Public Law 110-252,” said Chairwoman Herseth Sandlin. “Unfortunately, the past few weeks have shed some light on the shortcomings facing the VA and how it must improve the way it processes education claims.  I applaud the actions taken by the VA to address the current backlogs in distribution of education benefits.  While this is commendable, more forethought should have been given to the emergency check solution to address any potential problems.”

Director of the Office of Education Services Keith Wilson offered an accounting of the process used to provide payments to students and universities, and provided an update on the current rates of the Post-9/11 G.I. Bill and the Montgomery G.I. Bill.  Wilson said:

“Since May 1, 2009, we have received over 937,000 claims for education benefits under all education programs and have processed approximately 794,000 claims.  Enrollment certifications for approximately 30,000 students are currently pending under the Post-9/11 GI Bill.  Processing actions under our education programs increased by 180,000 over the same period last year, due in significant part to the large number of requests for certificates of eligibility for the Post-9/11 GI Bill.  The net increase in enrolled students is approximately 70,000.

“In fiscal year 2008, the average time to process all education claims was at a five-year low; we averaged 19 days for original claims and 10 days for enrollment certifications.  This fiscal year, our average processing time has risen to 26 days for original applications and 13 days for enrollment certifications.  Under the Post-9/11 GI Bill, however, original applications are taking an average of 35 days to process.” 

Herseth Sandlin offered a number of recommendations to help the program run more smoothly in the future and to respond to specific problems involving inability for VA to prioritize claims processing and properly informing veterans on the details of the new program.  “Based on the feedback that we have received from veterans, the VA should consider the following:

• Informing veterans of the importance of submitting an application of eligibility early allowing the VA enough time to process a claim before the semester begins;
   
• Asking veterans if they plan on using their education benefits in the upcoming term during the application process to allow VA officials to prioritize the processing of certifications of eligibility;

• Informing veterans to expect to receive their first housing and book stipend in arrears.  Many of us have heard from several misinformed veterans that thought they would receive this benefit prior to the start of school; and,
   
• Informing veterans of the benefits to applying for additional federal education programs that could enhance their VA education benefits.  The Federal Pell Grant Program and the Federal Work-Study Program may provide a source of funds to veterans waiting for VA housing and book stipend to be received.”

“The VA was given the task of implementing a new Post-9/11 G.I. Bill under a very compressed time schedule of one year,” said Bob Filner, Chairman of the House Committee on Veterans’ Affairs.  “I am disappointed that too many veterans had a difficult time with what could be their first encounter with the VA.  There needs to be significant improvement in how VA reaches out to our returning veterans – not just with G.I. Bill benefits, but health care, mental health care, and disability payments.” 

Witness

• Keith M. Wilson, Director, Office of Education Service, Veterans Benefits Administration, U.S. Department of Veterans Affairs

Prepared testimony and a link to a recording of the hearing are available on the internet at this link:  http://veterans.house.gov/hearings/hearing.aspx?newsid=485.    

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