March 2, 1988 M28 1, Part III
CONTENTS
CHAPTER 4. MONETARY ASSISTANCE SERVICES
PARAGRAPH PAGE
4.01 Range of Services 4-1
4.02 Subsistence Allowance 4-1
a. Control of Subsistence Allowance Payments
4-1
b. Assignment to Case Status Allowing Payment
of Subsistence Allowance 4-1
c. Establishing a Control for Entrance or
Reentrance 4-1
d. Maintaining Contact Prior to Entrance or
Reentrance 4-1
e. Maturation of the Control 4-1
f. Entrance or Reentrance Verified 4-2
g. Entrance or Reentrance Not Verified 4-2
h. Changes Following Entrance or Reentrance
Into a Rehabilitation Program 4-2
i. Interruption, Discontinuance, and Employment
Adjustment Allowance 4-2
j. Types of Subsistence Allowance
Changes/Actions 4-3
k. Action Required When Change in Training
Hours Does Not Change Rate of Pursuit 4-3
l. Source Documentation for a Subsistence
Allowance 4-3
m. Proof of Dependency 4-3
4.03 Coordination with VSD (Veterans Services Division)
in Responding to VAIS (Veterans
Assistance Inquiries 4-4
a. Types of VAI’s 4-4
b. When VSD Takes a VAI 4-4
c. When VR&C Takes a VAI Which Requires Action
by Another Division 4-4
4.04 Reimbursement of Costs for Training and
Rehabilitation Services, Supplies and Facilities 4-4
4.05 Election of Payment of an Allowance at the Rate Paid
Under Chapter 30 or 34 (38 CFR 21.264
and 21.334) 4-4
a. Veterans Will Be Informed of Rights and
Obligations 4-4
b. Veteran Elects Payment of Allowance at the
Rate Paid Under Chapter 30 or 34 4-5
c. Chapter 30 or 34 Program Requirements Must
Be Met 4-5
d. Chapter 31 Financial Assistance Forfeited
While the Chapter 30 or 34 Rate Is Being Paid 4-6
e. Chapter 31 Services Available to a Veteran
Who Elects Payment at the Chapter 30 or 34 Rate 4-6
f. Chapter 31 Services Available Upon
Completion of Training 4-6
g. Election Effective Dates 4-6
h. Voucher Payments of Tuition and Fees
Restrict Elections 4-7
i. Reelection of Subsistence Allowance 4-7
j. VR&C Procedures to Process Elections 4-8
k Reelection or Discontinuance Notification
4-9
4.06 Employment Adjustment Allowance 4-10
4.07 Veteran-Student Services (Work-study Program) (38
CFR 21.272) 4-10
4-i
M28 1, Part III March 2, 1988
CONTENTS-Continued
CHAPTER 4. MONETARY ASSISTANCE SERVICES-Con.
PARAGRAPH PAGE
4.08 Advances from the Revolving Fund 4-10
a. Criteria for an Advance 4-10
b. Financial Management 4-10
c. Veteran’s Application 4-10
d. Documentation and Record Review 4-10
e. Processing the Advance 4-11
f. Future Considerations 4-11
g. Appellate Procedures 4-11
4.09 Special Transportation Assistance 4-11
a. Institution Provides Transportation 4-11
b. Contract Agency Provides Transportation 4-11
c. Veteran Secures Transportation 4-11
TABLE
4.01 Subsistence Allowance Actions and 38 CFR References
4-5
4-ii
March 2, 1988 M28 1, Part III
CHAPTER 4. MONETARY ASSISTANCE SERVICES
4.01 RANGE OF SERVICES
Monetary assistance under chapter 31 is provided to
help the veteran pursue his or her rehabilitation program.
While the range of monetary assistance may not be sufficient
in certain cases to cover all of a veteran’s expenses, these
monetary services do provide a financial base, freeing him
or her from having to commit large amounts of time to earn
money for living expenses while in a rehabilitation program.
The case manager must be aware of each veteran’s financial
situation and must be able to utilize appropriate VA and
non-VA financial resources to aid veterans who need
additional assistance. VA monetary assistance services
include
a. Subsistence allowance payments to the
veteran;
b Reimbursement to service providers for costs
of training and rehabilitation services;
c. Payment for books, supplies and other
training equipment;
d. Election of payments at the rate payable
under chapter 30 or 34 in lieu of both subsistence allowance
and reimbursement of the costs of training and
rehabilitation services;
e. Employment adjustment allowance;
f. Veteran-student services (Work-Study
Program);
g. Advances from the Revolving Loan Fund; and
h. Special transportation allowances.
4.02 SUBSISTENCE ALLOWANCE
a. Control of Subsistence Allowance Payments.
The case manager must assure that subsistence allowance
payments are made on a timely basis, that the veteran is
eligible for payment during the period certified, and that
the veteran receives the rate to which he or she is entitled
based upon rate of pursuit.
b. Assignment to Case Status Allowing Payment
of Subsistence Allowance. Following completion of the
rehabilitation plan, the veteran’s case may be assigned to
one of the case statuses under which payment of subsistence
allowance may be authorized. These case statuses are
Rehabilitation to the Point of Employability, Extended
Evaluation, and Independent Living.
c. Establishing a Control for Entrance or
Reentrance. The case manager will establish a future date
control for all entrances or reentrances. The control will
be scheduled to mature on the expected date of entrance or
reentrance.
d. Maintaining Contact Prior to Entrance or
Reentrance. The case manager will maintain contact with the
veteran during the period the control is in effect. During
this period, the case manager will provide any assistance
necessary for the veteran to begin or reenter his or her
rehabilitation program. Upon maturation of the control, the
case manager will act to prevent erroneous payment if the
veteran fails to enter or withdraws from participation in
the rehabilitation program which has been developed.
e. Maturation of the Control. VA Form 28 1905,
Authorization and Certification of Entrance or Reentrance
into Rehabilitation and Certification of Status, should be
signed and returned by the training or rehabilitation
facility within 5 days of maturation of the control. If
this form is not received by this deadline, the case manager
will contact the facility by telephone to verify that the
veteran has begun to receive training or other
rehabilitation services.
4-1
M28 1, Part III March 2, 1988
f. Entrance or Reentrance Verified. When
entrance or reentrance is verified on VA Form 28 1905 and
the rate of pursuit is established, the case manager will
complete the reverse of the VA Form 28 1905. Payment will
begin the month following entrance or reentrance. Since
this payment reflects the first month’s training, most
veterans will receive less than a full month’s subsistence
allowance. If entrance or reentrance is verified, but the
VA Form 28 1905 will not be received from the facility in
time to process for payment by the beginning of the month
following entrance or reentrance, the VRS will prepare
another VA Form 28 1905 for the Adjudication Division to
assure that the veteran will receive his or her subsistence
allowance in as timely a manner as possible. The case
manager will notify the veteran whenever payment may be
delayed beyond the beginning of the month following entrance
or reentrance.
g. Entrance or Reentrance Not Verified. If the
veteran has not entered the rehabilitation program,
processing of the VA Form 28 1905 will cease. If necessary,
the case manager will initiate action to suspend payment of
subsistence allowance to prevent overpayment. Check
intercept procedures will be implemented if necessary. Then
the case manager will create an employee future control on
the 320 screen for 45 days. During this interval, the case
manager will determine if the veteran will pursue the
established program. When this information is known, but no
later than the maturation of the diary, the case manager
will take the following actions:
(1) If failure to begin timely was due to a
temporary delay which should not hinder the veteran’s
pursuit of the program of training or other rehabilitation
services, the case manager will prepare copies 1 and 2 of VA
Form 28 1905 to record the change in the veteran’s beginning
date (see subpar. h(l) below for instructions on preparing
VA Form 28 1905).
(2) If there appears to be a significant problem
which will prevent the veteran from beginning the
rehabilitation program or which will adversely affect the
veteran’s program pursuit, assign the veteran’s case to
Interrupted status to allow further time for resolution of
the problems preventing entrance or reentrance. In these
cases, the case manager will obtain the R&E folder to assure
that the suspension of subsistence allowance and the
reassignment of the case to Interrupted status are properly
completed and noted in the CER folder and in the Target
System.
h. Changes Following Entrance or Reentrance
into a Rehabilitation Program
(1) Preparation of VA Form 28 1905. The case
manager will prepare copies 1 and 2 of VA Form 28 1905 to
record changes in the veteran’s program which affect the
subsistence allowance award or which are required for record
purposes. Copies 3 and 4 are not needed and will be
destroyed in accordance with RCS VB-1, part I, item No.
13-052.100. Examples of these adjustments are reassignment
to another status and changes in rate of pursuit or course
duration. Part I11, chapter 2, paragraph 2.03c describes
the steps to complete the VA Form 28 1905 for entrances. To
authorize a change following initial entrance, the same
instructions generally apply. The basis for each
determination will be set forth on VA Form 28 1905 in item
24, Reason and Authority for Action. The effective dates of
changes are generally determined under the provisions of 38
CFR 21.322 and 21.324. See subparagraph j below for a list
of other regulations which govern effective dates.
(2) Award Verification. Following completion of
VA Form 28 1905 authorizing a subsistence award or a change
in an award, the case manager will review the award action
taken on the VA Form 22 1907a, Authorization of Subsistence
Allowance. If the award has not been properly completed,
the case manager will contact the responsible adjudicator
and request immediate correction of the award action.
i. Interruption, Discontinuance, and Employment
Adjustment Allowance. The same general procedures described
for entrances, and reentrances, and changes will be followed
for interruptions or discontinuances of a rehabilitation
program for which a subsistence allowance is being paid or
for payment of an employment adjustment allowance. This
procedure includes
(1) Assuring that appropriate award action has
been completed on the VA Form 22 1907a;
(2) If there is an error or delay in processing
the award, bringing the matter to the attention of the
responsible adjudicator to assure that necessary action is
taken to complete the change.
4-2
March 2, 1988 M28 1, Part III
j. Types of Subsistence Allowance
Changes/Actions. Table 4.01 indicates potential subsistence
allowance actions which may be authorized by the case
manager during a veteran’s rehabilitation program. The
table cites 38 CFR references which provide guidance
concerning reasons and effective dates for actions. For
example, if an award for subsistence has been processed at
the full-time rate and the veteran subsequently reduces to
the half-time rate, the case manager will use the VA Form 28
1905 to authorize and request from the Authorization
activity a reduction in rate of subsistence allowance. In
38 CFR 21.324i (see table 4.01), it indicates that the
effective date is found to be the last date of the month in
which the reduction occurred (assuming mitigating
circumstances exist). This date would be entered in item
23B, line 1. The entry in item 23C, line I would be “2” to
indicate the new half-time rate of pursuit. Item 23D, line
3, would show the ending date of the award. This procedure
will be used to reflect any changes in rate or effective
dates of active subsistence allowance awards.
k. Action Required When Change in Training
Hours Does Not Change Rate of Pursuit. Case managers do not
need to prepare a subsistence allowance award for a change
in training hours which does not cause a change in rate of
pursuit. For example, a veteran reduces training from 18 to
15 semester hours. Both 18 and 15 semester hours are full
time training. The case manager’s approval of the original
voucher for payment of tuition, fees, books, and supplies
should continue to be valid for the Finance activity unless
one of the following occurs:
(1) The case manager requests that the Finance
activity collect from the veteran previous payments or
portions of payments. Stations may locally standardize this
notification, using office automation equipment or
overprinted memoranda. In completing the standardized
document, the case manager would only need to enter the
veteran’s name and claim number and an itemization of the
funds to be collected.
(2) The case manager forwards a new voucher for
additional payments based on the change in course load.
l. Source Documentation for a Subsistence
Allowance Award. A case manager may prepare a subsistence
allowance award as soon as the training facility provides
the VR&C Division with documentation that meets the basic
criteria to support an award. If the award results in
reduction in rate of pursuit, however, the case manager must
also follow the due process procedures in part II, chapter
10. Although facilities should certify program
participation on VA Form 28-1905, Authorization and
Certification of Entrance or Reentrance Into Rehabilitation
and Certification of Status, or another VA-approved form,
facilities may report this information using their own
formats. Use of VA-designed forms helps to prevent
insufficient reporting, however, which could result in
delays paying benefits to veterans or in incorrect payments.
Therefore, VR&C Divisions should not encourage the regular
submission of non-VA documentation to justify payments or
adjustments of subsistence allowance.
m. Proof of Dependency. Veterans claiming
additional subsistence allowance for dependents must submit
sufficient evidence to meet the standards in M21-1, part IV,
chapters 12 through 14.
(1) Veteran Has Not Previously Proved
Dependents’ Status. The veteran must identify each claimed
dependent by full name, date of a child’s birth or the
marriage to the current spouse, and Social Security Number,
usually on VA Form 21-686c, Declaration of Status of
Dependents. Certified copies of public records proving the
dependency must accompany this statement. VA cannot pay
additional benefits for a dependent until VA receives this
documentation.
(2) Servicemember With Dependents Enters a
Chapter 31 Program. If a servicemember enters a chapter 31
program, the case manager should assist the servicemember to
complete the VA Form 21-686c and to obtain and submit the
certified proofs of dependency. The VR&C Division will file
down the documentation in the claims folder until the
regional office receives the veteran’s DD214. Once the
regional office receives the DD214, the case manager will
obtain from the Adjudication activity a completed VA Form
28-0505, Claims Folder Search and Dependency Verification,
and will add the authorized dependents shown on the VA Form
28-0505.
4-3
M28 1, Part III March 2, 1988
(3) Veteran Claims Dependents Already
Established in Compensation Award. If the veteran is
claiming the same dependents that the current compensation
award shows, the veteran may confirm this dependency by
declaring the dependents by name, dates of birth or
marriage, and Social Security Number. If the case manager
is aware of the need for this statement when the veteran is
in the case manager’s office, the case manager should ask
the veteran to make this statement on VA Form 21-4138,
Statement in Support of Claim. The veteran may also mail
this declaration to the VR&C Division or make an oral
statement. The case manager will document oral statements
on VA Form 119, Report of Contact. In the oral statement,
the veteran must be able to provide and the case manager
must detail on the VA Form 119 the same information about
each claimed dependent as the written statement requires.”
4.03 COORDINATION WITH VSD (VETERANS SERVICES DIVISION)
IN RESPONDING TO VAI’S (VETERANS ASSISTANCE INQUIRIES)
a. Types of VAI’S. The VR&C Division will
cooperate fully with VSD in the resolution of VAI’s taken in
the telephone or personal interview units.
b. When VSD Takes a VAI. If VSD takes the
inquiry directly from the veteran and further action is
required by another division, VSD will:
(1) Complete items I through 18 on VA Form
27-8386, Veterans Assistance Inquiry;
(2) Establish controls;
(3) Conduct research and development;
(4) Forward the inquiry to other operating
elements for assistance; and
(5) Provide prompt, complete, and courteous
responses to VAI’S.
c. When VR&C Takes a VAI Which Requires Action
by Another Division. If the VR&C Division takes the inquiry
directly from the veteran and further action is required by
another division, the VR&C Division will:
(1) Complete items I through 18 on VA Form
27-8386;
(2) Annotate the form in item 13 with as much
information as is available in the VR&C activity to assist
in the resolution of the inquiry; and
(3) Forward the inquiry to VSD for control,
resolution, and response to the veteran.
4.04 REIMBURSEMENT OF COSTS FOR TRAINING AND
REHABILITATION SERVICES,
SUPPLIES AND FACILITIES
Costs of services provided veterans through a
rehabilitation program will be paid by the VA under 38 CFR
21.262(b) and the provisions of applicable VA Acquisition
Regulations referred to in that paragraph. Specific
procedures for reimbursement of costs are discussed later in
this part in chapters 6 (supplies), 7 (review of vouchers)
and 8 (contracts).
4.05 ELECTION OF PAYMENT OF AN ALLOWANCE AT THE RATE
UNDER CHAPTER 30 OR 34
(38 CFR 21.264 AND 21.334)
a. Veteran Will Be Informed of Rights and
Obligations. Each veteran entering a program of
rehabilitation who is eligible for chapter 30 or 34 benefits
will be advised by the case manager of the right to elect
payment at the rates payable for these benefits if the
veteran meets the conditions described in 38 CFR 21.264. The
case manager will assist the veteran in
4-3
March 2, 1988 M28 1, Part III
ISSUE 38 CFR
Advance Payments 21.332c
Chapter 30 or 34 Election/Reelection 21.334
Death of Dependent 21.324c
Death of Veteran 21.324b
Dependency Increase 21.322c
Discontinuance 21.324g
Divorce 21.324d
Entrance into a Program 21.322b
Error 21.3241
Fraud 21.324k
Hospitalization of Veterans at VA Expense 21.324p
IILP, IEEP Completed 21.324f
Incarceration 21.324n
Interruption of Program 21.324f
Leave Payments 21.270a
Payments for Weekends, Holidays, Other Periods 21.270c
Payment Between Periods of Instructions 21.270b
Reduced Work Tolerance 21.312d
Reduction in Rate of Pursuit 21.324i
Reentrance Into a Program 21.322b
Rehabilitation to Point of Employability Completed
21.324f
Retroactive Inductions 21.282c
Severance of Service-connected Disability 21.324j
Special Rehabilitation Facility (Room and board paid)
21.324o
Treasonable/Subversive Acts Convictions 21.324m
Unauthorized, Unexcused Absences 21.350b
Wage Rate Increases for OJT 21.324h
Table 4.01 Subsistence Allowance Actions and 38 CFR
References
March 2, 1988 M28 1, Part III
determining eligibility for payment at the chapter 30 or 34
rate. If eligible, the veteran will be informed of the
ramifications of election and of his or her right to reelect
subsistence allowance at any time during the program.
b. Veteran Elects Payment of Allowance at the
Rate Paid Under Chapter 30 or 34. A veteran electing
payment under chapter 30 or 34 will receive an educational
assistance allowance for this training as if the training
were pursued under chapter 30 or 34. The veteran will also
receive other benefits and services provided under chapter
30 or 34, For example, if tutoring is required, the veteran
may receive this assistance under the provisions of 38 CFR
21.4236 in the same manner and up to the normal dollar
limitations as eligible chapter 34 veterans.
c. Chapter 30 or 34 Program Requirements Must
Be Met. For a veteran to elect or continue to receive
payment of an allowance and other benefits while in a
rehabilitation program, all the program requirements for a
regular chapter 30 or 34 course of training must be met:
(1) The program and courses the veteran is
pursuing must meet all VA and SAA approval criteria for
training under chapter 30 or 34;
(2) The veteran must be within the period of
chapter 30 or 34 eligibility and have remaining chapter 30
or 34 entitlement; and
(3) While training, the veteran must meet all
standards of progress and conduct which are imposed upon
chapter 30 or 34 participants.
NOTE: The requirement that a program must meet chapter 30
or 34 criteria for approval of a program of education
thereby excludes an election for any period of extended
evaluation, evaluation and improvement of rehabilitation
potential, independent living, individual programs for the
homebound, or individual instructor training. While the
veteran is involved in such activities, he or she will be
entitled to chapter 31 subsistence allowance to the extent
he or she is otherwise eligible.
d. Chapter 31 Financial Assistance Forfeited
While the Chapter 30 or 34 Rate Is Being Paid. Certain
benefits normally available to chapter 31 participants are
expressly prohibited to trainees while receiving paying at
the chapter 30 or 34 rate:
(1) Subsistence allowance;
(2) Revolving fund advances;
(3) VA payment of direct education expenses,
which include tuition, fees, books, supplies, licensing
fees, equipment
and other training materials;
(4) Individualized tutorial assistance under
chapter 31; and
(5) Employment adjustment allowance at chapter
34 rates. This benefit may be paid at subsistence allowance
rates, however, as provided in subparagraph f(2) below.
e. Chapter 31 Services Available to a Veteran
Who Elects Payment at the Chapter 30 or 34 Rate. A veteran
electing payment at the chapter 30 or 34 rate may receive
any service available to vocational rehabilitation program
participants except for the financial assistance benefits
barred in subparagraph d above. These veterans are chapter
31 participants except for method of payment of subsistence
and the costs of training. Services are as essential to the
accomplishment of the vocational rehabilitation goals of
these trainees just as they are for participants receiving
regular chapter 31 award benefits. Among these services,
several warrant emphasis:
(1) An IWRP (Individualized Written
Rehabilitation Plan) will be created for each participant
electing to receive payment at the chapter 30 or 34 benefit
rate as part of a vocational rehabilitation program;
(2) A case manager will work closely with the
veteran to develop and carry through with the rehabilitation
program; and 4-5
March 2, 1988 M28 1, Part III
(3) Services not specifically excluded in
subparagraph d above may be paid by voucher.
f. Chapter 31 Services Available Upon
Completion of Training
(1) Trainees who complete their vocational
rehabilitation programs while receiving payment at the
chapter 30 or 34 rate will receive the same employment
assistance provided other chapter 31 participants.
(2) An employment adjustment allowance will be
paid at the full-time subsistence allowance rate appropriate
to the type of training, but only if the veteran reelected
chapter 31 payment of subsistence allowance prior to
completing the period of rehabilitation to the point of
employability (38 CFR 21.268).
g. Election Effective Dates
(1) When the veteran elects payment of an
allowance at the chapter 34 rate, the effective dates for
commencement, reduction and termination are specified in 38
CFR 21.4130 through 21.4135. When a veteran elects payment
of an allowance at the chapter 30 rate, applicable
instructions will be used.
(2) The effective date of each election made
prior to receipt by the veteran of a subsistence allowance
will be the beginning date of the period of training for
which a subsistence allowance would normally otherwise have
been authorized. If a veteran in receipt of a subsistence
allowance elects payment at the chapter 30 or 34 rate during
an interval between training sessions, however, see
subparagraph i(1) below.
(3) An election made during a period of training
for which a veteran has already begun to receive a
subsistence allowance will be effective DLP (date of last
pay) for the subsistence award or the date of the election,
whichever is to the veteran’s financial advantage. See
subparagraph h below for restrictions on this election
right.
h. Voucher Payments of Tuition and Fees
Restrict Elections. A veteran may not elect payment at the
chapter 30 or 34 rate for any period for which the VA has
already paid the veteran’s tuition and fees.
(1) Tuition and Fees on a Term Basis. For a
facility organized on a term, quarter or semester basis,
this will preclude elections during any term, quarter or
semester for which the VA has already paid the tuition and
fees.
(2) Tuition and Fees Paid on a Prorata Basis.
For other institutions whose tuition and fees are paid on a
recurring prorata basis*e.g., monthly*elections may be made
effective the first day of any month for which the VA has
not already paid the tuition and fees.
i. Reelection of Subsistence Allowance
(1) Voluntary Reelections. In general, a
veteran receiving payment at the chapter 30 or 34 rate may
reelect to receive a subsistence allowance at any time
during the program. For training in a school organized on
the basis of regular terms such as semesters, however,
veterans should receive educational assistance for at least
one term before reelection. The effective dates of election
or reelection are contained in 38 CFR 21.334. If a training
facility does not structure its training around regular
terms, the veteran may make the reelection any time, but he
or she should have received payment at the chapter 34 rate
for 6 months by the time of the reelection. The case
manager may waive these training duration guidelines. The
close contact the case manager maintains with trainees
should minimize arbitrary reelections. On the other hand, a
case manager must approve a reelection of subsistence
allowance whenever he or she finds that failure to approve a
reelection of subsistence allowance would work to the
veteran’s financial detriment. When the veteran reelects
subsistence allowance during an interval between periods of
instruction, interval payment will be made at whichever rate
affords the veteran the greater advantage unless the veteran
declines in writing the higher rate of payment.
Documentation of the veteran’s refusal of the higher rate
will be filed on the left flap of the CER folder.
(2) Automatic Discontinuance of Chapter 34
Election. The election of chapter 30 or 34 training will
automatically be terminated the day following the last day
of approved training in one of six instances:
(a) The veteran makes an unauthorized reduction
in training time without VRS approval;
4-6
March 2, 1988 M28 1, Part III
(b) The veteran ceases his or her chapter 30 or
34 training without VRS approval;
(c) The veteran changes his or her program
objective on the IWRP without VA approval;
(d) The veteran exhausts entitlement to chapter
30 or 34 allowance payments;
(e) The veteran reaches his or her chapter 30 or
34 delimiting date; or
(f) The veteran completes his or her training
program while receiving an allowance at the chapter 30 or 34
rate and is declared rehabilitated to the point of
employability.
j. VR&C Division Procedures to Process
Elections
(1) Election Rights Presented to Veterans. VR&C
staff members should inform eligible applicants of their
election rights and the benefit tradeoffs available before
the veterans begin training in a vocational rehabilitation
program.
(2) Review of Requirements for Receipt of
Payment at the Chapter 30 or 34 Rate. The VRS will insure
that the program for which payment at the chapter 30 or 34
rate is requested meets all chapter 30 or 34 requirements.
If a program does not meet these requirements, a veteran may
not receive payment at the chapter 30 or 34 rate for that
program.
(3) Entitlement Usage Requirements. The VRS
will not extend a program beyond 48 months of combined
entitlement used if the veteran has trained under more than
one program subject to the restrictions of 38 CFR 21.4020.
A veteran will be charged chapter 31 entitlement for any
period during which he or she is in a rehabilitation
program, regardless of election of payment at the chapter 30
or 34 rate. If the veteran has received payment only at
chapter 30 or 34 rates, the veteran’s entitlement may not
exceed the 45-month limitation applicable to chapter 34
trainees or the 36-month limitation for chapter 30 trainees
unless he or she qualifies for an extension to complete a
training session. Beyond these limits, a vocational
rehabilitation participant may only receive subsistence
allowance and other standard chapter 31 financial
assistance, and then only if the additional benefits are
necessary to accomplish the rehabilitation goal.
(4) Payment Status Change Documentation and
Entitlement Calculations. For trainees electing payment at
the chapter 30 or 34 rate, the VRS will clearly designate on
VA Form 28 1905 the dates of changes in payment status. The
VRS and the Adjudication Division should cooperate in
entitlement calculations to insure no involuntary alteration
in status which operates to the veteran’s disadvantage
occurs as a result of entitlement usage. Several examples
of entitlement considerations will clarify the issues
involved.
(a) A veteran has used 45 months of chapter 34
entitlement or 36 months of chapter 30 entitlement before
induction into a chapter 31 program. Since only 45 months
of chapter 34 benefits or 36 months of chapter 30 benefits
plus an extension to finish a term already begun can be paid
when only chapter 30 or 34 benefits have been received, this
veteran may not elect payment of the chapter 30 or 34 rate.
(b) A veteran uses 24 months of chapter 34
entitlement, enters a vocational rehabilitation program, and
immediately elects payment of the chapter 34 rate. The
veteran continues to receive this payment for another 20 3/4
months, at which time the veteran would have used 44-3/4
months of chapter 34 entitlement. If the veteran then
begins a new semester, he or she can continue to receive the
chapter 34 rate until completion of the semester or for 12
weeks of training, whichever occurs first. Training time is
not an issue for this last available use of entitlement.
The same extension allowance to complete a term is available
to chapter 30 trainees except that this extension is granted
for a term during which the veteran exceeds 36 months of
entitlement used. At that point the election is
discontinued automatically and the veteran may receive only
subsistence allowance.
(c) The same veteran in subparagraph (b) above
uses exactly 45 months of entitlement at the end of a
semester. He or she may only receive subsistence allowance
for further training. This includes the following interval
between terms.
(d) A veteran receives 24 months of chapter 31
subsistence allowance and discontinues training under the
vocational rehabilitation program. If this veteran reenters
the chapter 31 program, he or she may immediately elect
payment at the chapter 30 or 34 rate up to a maximum of 24
months; that is, until 48 months of combined entitlement
have been used.
4-7
March 2, 1988 M28 1, Part III
(e) A veteran receives a subsistence allowance
for 48 months. He or she may not elect payment at the
chapter 30 or 34 rate.
(5) Preparation of Certification. The VRS will
use VA Form 28 1905 to certify awards for veterans electing
payment at the chapter 30 or 34 rate. The certification
will be prepared in the same manner as for a regular
subsistence allowance with four exceptions:
(a) No award authorization will extend beyond I
year;
(b) Item 24 will be clearly annotated to show
that the award to be prepared will be at the chapter 30 or
34 rate;
(c) An Optional Form 41, Routing and Transmittal
Slip, will be annotated “Chapter 31/30 (or 34) payment
trainee” and backfiled on the right flap on the CER folder
so as to remain the uppermost document; and
(d) The veteran is within 3 months of completing
the training phase of his or her vocational rehabilitation
program employment assistance counseling has not been
previously initiated.
(6) VRS Progress Review. The VRS will review
continuation of payment at the chapter 30 or 34 rate as
necessary, but at least once yearly. This will be done in
the course of review of the veteran’s progress in achieving
the goals of the IWRP. As a result of this review, the VRS
will certify either another year at the chapter 30 or 34
rate or reelection of subsistence allowance depending on the
veteran’s desires. Moreover, the VRS will counsel the
veteran and take the appropriate action whenever any one of
several events occurs:
(a) The veteran requests consideration of
redevelopment of the IWRP;
(b) The veteran indicates a desire to reelect
subsistence allowance;
(c) The veteran makes an unauthorized change in
his or her training program, including changes in training
time, program objective or discontinuance of training.
NOTE: Any such change requires VRS preparation of a VA Form
28 1905 prior to Adjudication Division award adjustment; or
(d) The veteran is within 3 months of completing
the training phase of his or her vocational rehabilitation
program and employment assistance counseling has not been
previously initiated.
(7) VRS Action When Veteran Makes an
Unauthorized Training Program Change
(a) When the VRS is informed of an unauthorized
training program change, the VRS will interrupt the case and
contact the veteran to determine whether the veteran can be
continued in the program. The VRS will promptly notify the
Adjudication Division of the ultimate outcome of the review
so the award can be adjusted.
(b) If the veteran has dropped or added courses
which change pay status; but not the character of the
course, the VRS may retroactively approve the change if the
change can be approved under the provisions of 38 CFR 21.94
and reenter the veteran into the training program.
(c) If the change is to a different program or
radically alters the nature of the course, the VRS may
approve continuation and reenter the veteran into training
if the veteran subsequently agrees to return to the
previously established program and objective. If the
veteran does not agree to reenter the same program, the VRS
will arrange for complete reevaluation of the program by a
CP under 38 CFR 21.94.
(d) If the unauthorized change represents
continuation of a pattern indicating abuse of the program,
the VRS will take the same action as for other chapter 31
trainees under the procedures described in chapter 10, to
include discontinuing all chapter 31 benefits if
appropriate. The veteran may then reenter the chapter 31
program only if the reasons for discontinuance are removed
and the rehabilitation program which the veteran proposes to
pursue (whether the same or revised) is suitable to the
veteran’s abilities, aptitudes and interests (38 CFR
21.364).
4-8
March 2, 1988 M28 1, Part III
k. Reelection or Discontinuance Notification.
The VRS will notify the Adjudication Division of any
reelection of subsistence allowance or discontinuance in the
chapter 31 program altogether so that benefit payments can
be promptly adjusted. Item 24 of the VA Form 28 1905 will
be annotated to the effect: “Terminate award for payment of
allowance at the chapter 30 or 34 rate effective (date).” If
applicable, a regular subsistence allowance award may be
authorized on the same document. The effective and ending
dates of subsistence allowance payments will be clearly
identified in item 24. At this time, the Optional Form 41
folder flash will be destroyed in accordance with RCS VB-1,
part I, item No. 07-620.042.
4.06 EMPLOYMENT ADJUSTMENT ALLOWANCE
An employment adjustment allowance, consisting of 2
months payment at the full-time rate of subsistence
allowance for the veteran’s type of training, will be paid
to each veteran who achieves the goals of his Individualized
Written Rehabilitation Plan. This award will include
payment for the veteran’s dependents in the same manner as
for a normal training period. If a legislative increase or
decrease in the rate payable occurs during the 2 months, it
will also be reflected in the employment adjustment award.
The VRS will use VA Form 28 1905 to authorize payment of the
employment adjustment allowance. The VRS will check
employment adjustment allowance in item 18 and block 7 in
item 22. Additionally, item 24 will state that payment of a
2-month employment adjustment allowance is authorized and
will cite 38 CFR 21.268.
4.07 VETERAN-STUDENT SERVICES (WORK-STUDY PROGRAM) (38
CFR 21.272)
The Veteran-Student Services, or Work-Study, Program
offers part-time assistance to veterans pursuing a
rehabilitation program at the full-time rate. The Veterans
Service Division at the regional office normally administers
this program. Case managers should develop a close working
relationship with the Work-Study coordinator to facilitate
the processing of applications from veterans participating
in a rehabilitation program. Work-Study assignments will be
the preferred method for these veterans to earn additional
income.
4.08 ADVANCES FROM THE REVOLVING FUND
a. Criteria for an Advance. A noninterest
advance based on future subsistence allowance payments may
be made from the Revolving Fund as a part of available
services under the chapter 31 program. This advance is
available to a veteran for whom a rehabilitation plan has
been established but who is not financially able to begin or
continue a rehabilitation program without such assistance.
To receive an advance, the criteria below must be met:
(1) Establishment of Revolving Fund-38 CFR
21.274a
(2) Eligibility-38 CFR 21.274c
(3) Advance conditions-38 CFR 21.274d
(4) Determination of the amount of the
advance-38 CFR 21.247e
(5) Repayment-38 CFR 21.274f
b. Financial Management. One of the areas that
may need to be explored early in the development of the
rehabilitation plan is money management and potential
resources of assistance for financial aid. The veteran’s
financial situation should first be ascertained during the
time the IWRP is being developed and again during the
induction orientation. There may be times, however, when an
advance is a logical resource, as the veteran would be
unable to begin or continue a rehabilitation program without
the advance from the Revolving Fund.
c. Veteran’s Application. The veteran applies
for an advance from the revolving fund loan by completing
the top portion of VA Form 28 1910, Application and Public
Voucher for Advancement From the Vocational Rehabilitation
Revolving Fund.
d. Documentation and Record Review. When it is
determined that the advance from the Revolving Fund is
appropriate, the case manager will document the reason for
the advance request. This documentation will be
4-9
March 2, 1988 M28 1, Part III
filed down on the left flap of the CER folder. The MINQ MOI
master record screen will be reviewed for possible current
outstanding advance, which would prohibit granting a new
advance. If the documentation and interaction with the
veteran provide a sound and reasonable basis for the
advance, the advance will be approved.
e. Processing the Advance. The approved
advance from the Revolving Fund will be processed as
expeditiously as possible including handcarrying if possible
to the Finance activity. It is essential that this service
be provided immediately as the critical nature of the need
has already been documented.
(1) Amount of Advance. The case manager may
approve up to $200 for the advance (in multiples of $ 1 0).
An advance in excess of $200 requires the concurrence of
the VR&C Officer. The VR&C Officer may approve up to twice
the amount of the subsistence allowance for a single veteran
at the institutional rate (see 38 CFR 21.260).
(2) Repayment Schedule. The monthly rate of
repayment may not be less than 10 percent of the amount
advanced unless the monthly benefit against which the
advance is offset is less than that amount. (38 CFR
21.274f).
f. Future Considerations. The VR&C Division
will maintain information on grants and other financial
assistance. The veteran may also be referred to financial
aid officers at the facility he attends to investigate
available grants and loans. The veteran will also be
informed about the Work-Study Program and other temporary
employment opportunities if appropriate. Furthermore, the
case manager will be aware of and explore with the veteran
the possible need for money management counseling.
g. Appellate Procedures. If the veteran is
denied an advance, he or she will be provided a written
reason for the denial and informed of his or her appeal
rights under 38 CFR 21.420 (see also pt. 1, ch. 10).
4.09 SPECIAL TRANSPORTATION ASSISTANCE
Special transportation assistance is a special
rehabilitation service provided seriously disabled veterans
who incur transportation costs resulting from their
disability which would not be incurred by those not so
disabled. The scope and the periods during which special
transportation assistance may be authorized are provided in
38 CFR 21.154. When it is established that these services
are needed by the veteran, they will be included under
Services Provided on the IWRP and may be authorized by one
of the following methods:
a. Institution Provides Transportation. When
these services are included in a statement of fees for an
institution or rehabilitation facility, they may be
authorized as vouchered services using a record purpose VA
Form 28 1905 separate from the one used to justify the award
of subsistence allowance. This VA Form 28 1905 will be
clearly annotated at the top “SPECIAL TRANSPORTATION
ASSISTANCE ONLY” and the original will be routed directly to
the Finance activity. Copy 2 will be filed on the left flap
of the CER folder. Copies 3 and 4 are not needed and will
be destroyed in accordance with RCS VB-1 part I item No.
13-052.100. Once the voucher payment has been made, the
Finance activity will send the VA Form 28 1905 to the files
activity with instructions to drop file the form in the R&E
folder.
b. Contract Agency Provides Transportation.
When these services are not available through an approved
facility or institution, they may be arranged for by
contract using VA Form 28 1903, Contract for Education and
Training, and authorized as in subparagraph a above.
c. Veteran Secures Transportation. When
methods in paragraph a or b are not possible, these services
may be secured by the veteran and may be reimbursed monthly
in arrears. In this case, the anticipated costs will be
established in advance and authorized as a voucher service
on VA Form 28 1905. For each month claimed, the veteran
will present a claim for this special transportation
allowance on Standard Form 1164, Claim for Reimbursement for
Expenditures on Official Business.
4-10
