Putting Aside Money Through the Veterans Educational Assistance Program

Similarly to how some private corporations match the dollars that their employees put into their 401Ks, the U.S. government has a program that matches dollars that military personnel elect to have deducted from their military pay toward education. The Veterans Educational Assistance Program (VEAP) allows servicemen and women to save for their college educations with a big return.

How it Works

For every $1 that an active military personnel elects to be deducted from their military pay under VEAP, the U.S. government will match $2. You may use the money towards a degree, certificate, on-the-job training/apprenticeship or correspondence program, as well as a vocational flight training program. The program must be approved by the Veterans Administration. The benefits are payable for up to 36 months and you have up to 10 years after being released from active duty to use it. If the benefit is not used in 10 years, the portion that you have contributed into the fund will be refunded to you.

To be eligible for payout under VEAP, you must have entered service for the first time between January 1, 1977 and June 30, 1985, opened a contribution account before April 1, 1987, contributed between $25 and $2,700 to it and not be dishonorably released or discharged from active duty. Active personnel who want VEAP benefits must have at least 3 months' contributions available.

The eligibility requirements mean that while the VEAP will pay benefits for those enrolled in it already, it is not a program that new military personnel can join. VEAP is currently applicable for long-serving military personnel, those who joined in June 30, 1985 at the latest, who are going to school within 10 years of being released from active duty or who are still on active duty and want to take part in some form of educational or training program concurrently. 

If you are eligible, simply fill out the VA Form 22-1990, Application for Education Benefits and send it to the Veterans Administration office with jurisdiction over the state in which your program takes place. Inactive personnel will need to send copy 4 of their DD Form 214, Certificate of Release or Discharge From Active Duty while active duty members will need to have their enrollment approved by their base Education Services Officer and their service verified by their Commanding Officer.

Inactive personnel who have already started training will need to take their VA Form 22-1990, Application for Education Benefits and their copy 4 of their DD Form 214, Certificate of Release or Discharge From Active Duty to the program, have them fill out the VA Form 22-1999, Enrollment Certification and send all of the forms to VA office with jurisdiction.

Sources:

Veterans Educational Assistance Program (VEAP). (2010) U.S. Department of Veterans Affairs.

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