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35 Percent Exemption
The 35 percent exemption grants relief from 85/15 routine reporting requirements to any school when fewer than 35 percent of its total enrollment of students are receiving VA benefits under Title 10 or Title 38. In addition to the exemption to routinely report, programs at accredited educational institutions and vocational flight schools approved under 38 CFR 3672 with the 35 percent exemption are exempt from the 85/15 rule for enrollment periods beginning on or after August 26, 2022, or the date of their 35 percent exemption, whichever date is later.
35 Percent Exemption vs. 85/15 Calculations
Calculations used to determine eligibility for the 35 percent exemption are based on the overall percentage of the total enrollment of students who are Veterans, eligible persons, and reservists receiving assistance under 38 U.S.C. chapters 30, 31, 32, 33, 35 and 36, and under 10 U.S.C. chapter 1606. These students combined are counted as "VA beneficiaries."
Unlike 85/15 calculations, the 35 percent exemption calculations are based on the actual number of students enrolled.
Example:
100 students are enrolled at an educational institution. Of these, 25 students are VA beneficiaries. By dividing the number of VA beneficiaries by the total student enrollment (25 ÷ 100 = .25), the calculation for this school is 25%.
More information on how to perform this calculation are provided on the exemption request form.
35 Percent Exemption Expiration
For all types of educational and training institutions, the 35 percent exemption expires 24 months from the date of issue. The school should submit applications for renewal in accordance with current guidance:
- If the school is organized on a term, quarter, or semester basis, it must submit the 35 percent exemption request no later than 30 days after the beginning of the term for which the school wants the exemption to apply.
- If the school is not organized on a term, quarter or semester basis, it must submit the 35 percent exemption request no later than 30 days after the beginning of the calendar quarter for which the school wishes the exemption to apply.
For information on reporting periods, visit our page on reporting requirements.
Submit a Request
The school interested in applying for the 35 percent exemption will do so by submitting the request to VA using the following form.
35% Exemption Request From 85/15 Reporting Requirement, VA Form 22-10216
Non-accredited schools must include the following documents with the 35 percent exemption request (linked above):
- Statement of Assurance of Compliance with 85 Percent Enrollment Ratios, VA Form 22-10215, and when appropriate,
The request for the 35 percent exemption, and, when required, any additional forms, must coincide with the corresponding routine reporting period. For schools organized on a non-term basis, the exemption request calculation date is tied to the last enrollment period beginning during the quarter for which the report is being submitted. For more information on routine reporting periods, visit our page on reporting requirements.
Requirement for non-accredited schools to maintain 85/15 calculations with a 35 percent exemption
Non-accredited schools are required to monitor enrollment ratios and maintain compliance with 85/15. Reports may be requested at any time and will be reviewed on compliance. All 85/15 calculations must be retained and provided when requested by VA, State Approving Agency (SAA), and authorized Government representatives.
Vocational Flight Schools
There is no exclusion prohibiting a vocational flight school from applying for the 35 percent exemption. Effective for enrollment periods beginning on and after August 26, 2022, vocational flight schools approved under 38 CFR 3672 are no longer required to submit the Statement of Assurance of Compliance with 85 Percent Enrollment Ratios with the 35 percent exemption request. Part 142 Training Centers should adhere to reporting and monitoring instructions as outlined for any other school approved under 38 CFR 3676.
Vocational flight schools not eligible for the 35 percent exemption, please note that the Statement of Assurance of Compliance with 85 Percent Enrollment Ratios for Flight is currently under review. VA will accept 85/15 reports from vocational flight schools in any format currently in use until such time as the VA format for vocational flight program data collection is approved.
