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B-140300 1 (1974-11-15)

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             by the office of CWU

                   UNITED STATES GENERAL ACCOUNTING OFFICE
                          WASHINGTON, D.C. 20548

MANPOWER AND WELFARE        RELEASED
     DIVISION

     B-140300                                  NOV 15 1974

     The Honorable William M. Ketchum
     House of Representatives

     Dear Congressman Ketchum:

           Your April 5, 1974, letter expressed concern about
     the protracted delays veterans attending college from
     your district were experiencing in receiving their GI
     Bill educational assistance checks from the Veterans
     Administration (VA) and the personal hardships caused by
     such delays.

           As discussed with you in our April 30, 1974, meeting,
     we plan to initiate a review of the effectiveness of VA's
     efforts to improve the timeliness of educational assistance
     checks. Summarized below is the information currently
     available to us on the causes of check delays and VA's
     corrective action.

     REASONS FOR DELAYS

           It appears that most of the problems regarding delays
     occurred after Public Law 92-540 was enacted on October 24,
     1972, which authorized advance payments under VA educa-
     tional programs. The amount of the advance payment covers
     the first 2 months of training. This provision was effec-
     tive August 1973 with the beginning of the fall enrollment
     period.

          Application for advance payment could be made directly
      to VA or through the schools. VA did not have information
      on the number of students who applied for advance payments
      last year. It did know, however, that as of November 16,
      1973, checks totaling about $148.5 million had been issued
      to 418,794 advance payment applicants. VA has stated that
      less than 3 percent of the more than 400,000 students who
      had received advance payments and subsequently enrolled
      in training had experienced a 2-week delay or more in
      receiving their regular monthly checks.

           VA reviewed students' applications for advance pay-
     ments, and if the students were deemed eliqible the Treasury
     Department was authorized to prepare and mail the advance
     payment checks to the schools of proposed enrollment. The

        9069A11[09t30/103

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