VA says it's on schedule to process new education claims on time

When Congress passed a bill expanding veterans benefits to include generous tuition and cost-of-living payments, veterans groups and critics worried the Veterans Affairs Department didn't have time to build a computer system to process the applications. But VA is processing claims faster than it receives them thanks to new information technology systems that partially automate the work, top department officials told a congressional panel on Thursday.

VA has received 84,000 applications for new GI bill benefits since May 1 and has processed 47,000 claims, Keith Wilson, director of the office of education service at the Veterans Benefits Administration, told a hearing of the House Veterans Affairs Economic Opportunity Subcommittee.

Rep. John Boozman, R-Ark., said the number seemed low and expressed concern that VA could receive a much larger number of applications between now and Aug. 1, when the department needs to start sending veterans their benefit payments.

Wilson said the highest volume of benefit claims under the new GI bill VA expected this year was slightly more than 450,000 and estimated it could receive 200,000 applications by the end of the summer.

Applications for benefits could be lower than anticipated because some veterans already enrolled in college believe they have a better financial deal under the old GI bill, called the Montgomery GI Bill, he noted.

Stephen Warren, principal deputy assistant secretary of the office of information and technology at VA, said the department can process all the new GI claims it receives with existing systems unless Congress adds new provisions to the law.

Key members of California's congressional delegation introduced the Veterans Educational Equity Act, designed to correct what they view as inequities in the new GI bill. State-funded universities and colleges charge a relatively inexpensive tuition but levy much higher fees. The bill would provide $6,586.51 in annual payments to veterans attending any public or private university in the state to pay for the fees.

The new GI bill's formula gives veterans attending private colleges payments based on tuition for public schools, shortchanging California veterans compared with those who attend schools in states with higher tuitions in publicly funded schools, according to Rep. Howard McKeon, R-Calif.

VA has been able to stay ahead of the curve in processing of GI bill payments because it hired 530 processors and installed new software that helps calculate payments, Wilson said. It also deployed an application to manage payments and exchange data with the Treasury Department, which will send checks to veterans starting Aug. 1.

VA has tested the application that manages payments, and Wilson said it works and will be ready on Aug. 1. Boozman said he was confident that VA will meet its deadline to make payments on that date.

Paul Sullivan, executive director of Veterans for Common Sense, said he appreciates "the fact VA is re-doubling its efforts to make sure the new GI bill payment process works" and added that veterans and Congress need to be reassured that the agency is prepared to pay Iraq and Afghanistan war veterans their correct education benefit in a timely manner.

"Accuracy and timeliness are critical issues because of VA's chronic mistakes and unreasonable delays in processing VA disability claims," he said. "The GI bill presents VA with a great opportunity to shine. We hope VA stands and delivers.