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Education and Training

85-15 for Nonaccredited Schools and Schools Without the 35 Percent Exemption

Questions and Answers from Updates to the 85/15 Rule and Renewing the 35 Percent Exemption

Supported Students
Exemptions and Waivers
Renewing the 35 Percent Exemption
Miscellaneous Questions


Select this link to access the video recording of the 85/15 for Nonaccredited Schools and Schools Without the 35 Percent Exemption. (Will launch in YouTube.)

Supported Students

The following are questions and answers from the portion of the webinar on the definition of a supported student with enrollment periods beginning on and after January 16, 2026.

Question 1:

You mentioned that WIOA will be considered Supported after 01/16/25. Why isn’t WIOA/CareerSource not considered Third Party Aid since they are a third-party vendor? Here in Florida, every CareerSource region has a cap on how much they will pay for each training program. That cap is not determined by the school, but by the State of FL for the specific region.

Answer:

WIOA funds themselves do not constitute support. If the school provides matching funds – or in any way contributes by providing financial support – participating students are counted as supported for the purposes of 85/15.

Question 2:

Our school president will occasionally have a pop quiz type promotion on campus to encourage participation, to where students who participate can benefit from a drawing for a small discount on their tuition. Would this type of situation be considered supported?

Answer:

Effective with enrollment periods beginning on and after January 16, 2025, that would constitute support for purposes of 85/15.

Question 3:

When calculating 85/15, should students who are only retaking certain modules (not the full program) be counted?

Answer:

If the student is still enrolled in the program – meaning they must retake those modules to successfully complete (“graduate”) the program – then they would be counted as enrolled in the program. If students are enrolling in modules – not the program – then they would not be counted. Any VA beneficiaries enrolling in just the modules could not be certified.

Question 4:

If a student has proof of an outside scholarship but the scholarship does not pay until the halfway point of the program, would this student have to be counted as supported since they would have a balance on their account past 30 days? If they are considered a supported student, once that scholarship is received and the student balance is zero, do they then become a non-supported student? Assuming they paid out of pocket for all remaining charges and this one outside scholarship is the only additional aid received.

Answer:

When a third-party award covers the tuition, fees, and other charges in full, then the award letter alone would stand as proof of funds; however, if the award does not cover the full amount of tuition, fees and other mandatory charges, the student would be supported any time there is a balance due on the reporting date. Bottom line, the student needs to have their share paid for by the reporting date or the student needs to be on a compliant institutionally funded payment plan for that amount.

Question 5:

When reviewing a student's supported and non-supported status, are all fees included, or are only VA-approved tuition and fees for the program considered?

Answer:

All mandatory tuition and fees are included.

Question 6:

If a student receives a grant from the state that pays partial or full tuition, are they supported?

Answer:

No, only VA and institutional aid constitute support for the purposes of 85/15.

Question 7:

If a student starts on a cash payment plan but does not pay the balance before the prescribed period of time (within 180 days) and goes into default, is this student considered supported?

Answer:

Yes. However, remember that if a balance remains after the last day of the payment plan, the school’s institutionally funded must prevent the student from continuing the next enrollment period beginning on or after the expiration of the payment plan.

Question 8:

Would a non-VA beneficiary student be supported if we extend a discount to a student's tuition?

Answer:

Yes, beginning with enrollment periods starting on and after January 16, 2025.

Question 9:

Grants would only be considered as nonsupported?

Answer:

State grants, such as those available under the Hazelwood Act, Illinois Veterans Grant, the California College Promise Grant, are considered third party aid. Students receiving third party aid and no other aid that would require they be counted as supported students (VA or institutional aid), are considered non-supported so long as all other conditions are met. Grants from the institution are counted as support for the purposes of 85/15.

Question 10:

Students using Federal financial aid (FAFSA) are consider non-supported, right?

Answer:

Yes, third party aid like Title IV, employer tuition assistance, MyCAA are not funded by the school or by VA, so students using that type of aid (and no aid from the school or VA) are non-supported for the purposes of 85/15.

Question 11:

The aid provided by the institution is primarily restricted, how is unrestricted aid non supported if it still going towards tuition and fees?

Answer:

The change in the regulation eliminates the caveat of restricted or non-restricted aid effective with enrollment periods beginning on and after January 16, 2025. Any aid provided from the school (not mandated by Federal, State, or municipal law) counts as support for the purposes of 85/15.

Question 12:

If a non-VA student takes out a personal loan, not supported or through the school, is this considered not supported.

Answer:

That’s correct. Only aid from VA or from the school is counted as “support” for the purposes of 85/15.

Question 13:

I'm struggling on how to count our dual-credit high school students - are they required to be counted? They pay a different tuition schedule, so if counted they get a separate degree track? Are they supported if the tuition scale for them is published in our catalog or addendum?

Answer:

When a program varies in attendance, cost, equipment, length, or objective 85/15 must be calculated separately, and non-degree seeking students are not counted. Contact your ELR, who is better aware of your specific programs and policies, for assistance with how to calculate 85/15 for those students.

Question 14:

We do have students that receive funding from Rural Education funds would they be considered supported?

Answer:

Only VA and institutional aid constitute support for the purposes of 85/15. If the Rural Education funds are federal, state, or municipal funds, that program would not support for the purposes of 85/15. If the student receives any amount of aid from VA or voluntary aid (meaning not mandated under Federal, State, or municipal law) from the school, then the student is supported.

Question 15:

Just to confirm: A self-pay student who gets approved for a workforce/WIOA grant to cover a portion of the program; it is NOT considered supported unless the school matches with internal aid?

Answer:

Yes, that’s right. WIOA funds alone do not constitute support for the purposes of 85/15. Only VA and institutional aid constitute support for the purposes of 85/15.

Question 16:

My problem is that I have more supported students than non-supported students. What would be a good option for the 85/15 for our school?

Answer:

That’s extremely challenging. As long as the program exceeds 85% supported students, VA cannot pay benefits to any newly enrolling VA beneficiary (except for Chapter 31 and 35 students who may be certified and receive benefits even when a program exceeds 85% supported students.) Once your program is again within compliance, you can look at adding a VA beneficiary to your program. You may always look at applying for the Education Service Waiver, but historically, those are quite rare.



Exemptions and Waivers

The following are questions and answers from the portions of the webinar on program exemptions from the 85/15 rule and on the Education Service Waiver for programs exceeding 85 percent supported students.

Question 1:

Can you expand your explanation of the end size part of the rule? Our understanding is that it is 10.

Answer:

Programs with fewer than 10 (a maximum of 9) supported students enrolled are exempt from 85/15.

Question 2:

Any exemptions for programs with less than 10 students enrolled?

Answer:

Yes, if your program has fewer than 10 supported students enrolled, it is exempt from 85/15.

Question 3:

I'm confused as to how a school must already be non-compliant to 85/15 before applying for an education service waiver. It seems a bit "ask forgiveness instead of permission."

The Education Service Waiver is a compliance waiver of 85/15, so if the program is compliant, there is nothing to waive. With that, you may apply once the program equals or exceeds the 85 percent supported student threshold.

 


Renewing the 35 Percent Exemption

The following are questions and answers from the portion of the webinar on how to renew the 35 percent exemption.

Question 1:

I have a 35% waiver expiring on 11/27/24. How far in advance does the 'renewal' request have to be submitted?

Answer:

Submit the exemption request to VA via the Education File Upload Portal not later than 30 days after the start of the next regular enrollment period beginning after November 27, 2024. You must perform the calculation within 30 days of the enrollment period start date – reflecting enrollment counts for that enrollment period.

Question 2:

If my 35% Exemption expires at the end of this month (two-years), how soon do I need to submit the next one?

Answer:

Submit the exemption request to VA via the Education File Upload Portal not later than 30 days after the start of the next regular enrollment period. You must perform the calculation within 30 days of the enrollment period (or “term”) start date – reflecting enrollment counts for that enrollment period.

Question 3:

How do we determine when our 35% exemption expires? Is it 24 months from the date on the Approval letter?

Answer:

For all types of schools, the 35 percent exemption expires 24 months from the effective date of approval. Expiration dates are on the initial exemption approval letter, so you should be able to find it on the letter you received from VA approving your 35 percent exemption. If you don’t have access to that information, contact your ELR via their mailbox or via Ask VA (AVA).

Question 4:

When applying for the 35 percent exemption now (pre-January 16, 2025) when calculating supported students, would we use definitions of "supported" or just actual VA supported students?

Answer:

The calculation for the 35 percent exemption does not change nor is it affected by this change, because it does not take into account "supported" or "nonsupported." It simply measures the percentage of non-VA beneficiary students enrolled at an institutions. Please visit our webpage for information on 35 percent exemption vs. 85/15 calculations.


Miscellaneous Questions

The following are miscellaneous questions and answers from the webinar.

Question 1:

Are the 85/15 and the 35 % calculations done the same?

Answer:

No. You find the 85/15 calculation by comparing the number of full-time equivalent supported students to the number of full-time equivalent non-supported students enrolled in a program. You find the 35 percent calculation by comparing the number of VA-beneficiaries to the total number of students enrolled at a school. You can find more information on how to perform these calculations on our website. Start here: The 85/15 Rule.

Question 2:

If I have 4 programs Barber, Cosmetology, Esthetics and nails. Is the 85/15 for each program or all programs together?

Answer:

When programs vary by cost, attendance, equipment, length, or objective, a separate calculation is required. These programs are all different objectives (and programs), so each is calculated separately.

Question 3:

Who did you say to contact if you have 85/15 or 35% exemption questions?

Answer:

If after you review the information available on our website, you have a question about the 85/15 rule or the 35 percent exemption as it applies to your school, contact your ELR or via Ask VA (AVA).

85/15 Resources

38 U.S. Code §3680A
38 Code of Federal Regulations (CFR) §21.4201
38 Code of Federal Regulations (CFR) §21.4209
38 Code of Federal Regulations (CFR) §21.4253
38 Code of Federal Regulations (CFR) §21.4254
Public Law 117-174
Approved Rule 56
School Certifying Official (SCO) Handbook
The 85/15 Rule

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