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Education and Training

85/15 and Approved Rule 56

Approved Rule 56 brought key changes to the 85/15 rule that are effective for enrollment periods beginning on and after January 16, 2025. Visit our website for more information on the 85/15 rule. 

Impact of Public Law 117-174

Public Law 117-174 exempts programs offered by accredited schools with an approved 35 percent exemption from the 85/15 rule, significantly reducing the number of schools affected by the upcoming rule changes.

Contact your Education Liaison Representative with questions regarding your school's 35 percent exemption status or 85/15 monitoring or reporting requirement.

Elimination of Exceptions

Before Approved Rule 56, the law identified specific categories of students receiving institutional aid as “non-supported,” which diluted the market validation tool of the 85/15 rule. These categories included:

  • Graduate students receiving institutional aid.
  • Students receiving any Federal aid other than VA benefits.
  • Undergraduate and non-college degree students receiving institutional aid under policies that apply equally to Veterans and non-Veterans.

Effective for enrollment periods beginning on or after January 16, 2025, Approved Rule 56 removes these exceptions. All students receiving any institutional aid will be considered “supported” students.

Note that institutional aid required under Federal, state, or municipal law (e.g., Federal Work Study or out-of-state tuition waivers) does not count as support. However, voluntary institutional aid (e.g., matching funds for the Workforce Innovation and Opportunity Act, or WIOA, grant) does.

This change closes loopholes and ensures genuine market validation for the 85/15 rule.

Visit our website for more information on supported and non-supported students.

Clarification of Definitions

Any aid provided by the institution counts as support. This change aligns with the original law (38 USC 3680A). Effective January 16, 2025, institutional aid only excludes Federal, state, municipal grants, and matching funds required by law.

For example, WIOA doesn't require matching funds from the school for a school to participate in the program, so any matching funds provided by schools for WIOA grants are considered institutional support.

This update clarifies and ensures consistent application across institutions.

Education Service Waiver Criteria Adjustments

Effective January 16, 2025, VA streamlined the Education Service Waiver criteria. Under the updated rules there are three criteria:

  1. Availability of comparable educational programs.
  2. General effectiveness of the institution’s program in providing educational and employment opportunities to veterans.
  3. The school’s aid program appears to be consistent with the 85/15 rule's tuition and fee costs market validation mechanism.

Visit our website for information on the Education Service Waiver application process.

Reporting Timeline Amendments

Schools with programs organized and offered on a non-standard term basis will submit their 85/15 calculations within 30 days of the beginning of each term. Previously, these schools would submit their reports on a quarterly basis.

This change improves the timeliness and accuracy of compliance reporting.

Comparison of Changes

Previous Rule
Revised Rule
Certain categories of students receiving institutional aid were considered "non-supported." All students receiving institutional aid are now considered "supported."
Education Service Waivers required review of four specific criteria. Education Service Waivers now consider fewer, more relevant criteria.
Institutions offering programs organized on a non-standard basis reported 85/15 calculations for those programs quarterly. Institutions offering programs organized on a non-standard basis must report calculations for programs not otherwise exempt from 85/15 within 30 days of the term start date.

 

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