In This Section

This section contains the following topics:

Introduction

This topic contains general information on the effective dates of payment of awards based on school attendance, including

• effective date of payment if
  • a child was
    • attending school on their 18^th birthday, and
    • not attending school on their 18^th birthday, and
  • VA receives a claim 1 year or more after a child turns 18
• exception to the policy expressed in M21-1, Part VII, Subpart ii, 1.B.1.c
• effective date of payment of Dependency and Indemnity Compensation (DIC) to a school child, and
• discontinuing benefits that are based on school attendance.

Change Date

March 2, 2022

VII.ii.1.B.1.a. Effective Date of Payment if a Child Was Attending School on Their 18^th Birthday

Entitlement to compensation or pension based on a child’s school attendance is effective on the date of the child’s 18^th birthday if

• the Department of Veterans Affairs (VA) receives a claim for benefits based on school attendance within one year of the child’s 18^th birthday, and
• the child was attending school on their 18^th birthday, or
  • turned 18 during a school break
  • attended school during the term that immediately preceded the break, and
  • resumed school attendance at the end of the break.

If addition of a school child to a compensation or pension award results in an increased rate of payment, 38 CFR 3.31 prohibits payment of the higher rate prior to the first of the month following the child’s 18^th birthday. 

Under these circumstances,

• continue the prior rate of payment through the end of the month in which the child’s 18^th birthday falls, and
• pay the increased rate effective the first day of the following month.

Note:  Continue to include payments of compensation or pension based on school attendance in the award to the Veteran or surviving spouse having actual or constructive custody of the child, even though the child has reached the age of majority, unless direct payment of benefits to the child is warranted under M21-1, Part VII, Subpart ii, 1.B.7.

References:  For more information on

• benefit entitlement during school breaks, see ;M21-1, Part VII, Subpart ii, 1.A.3
• constructive custody, see M21-1, Part VII, Subpart i, 3.B.6.c
• effective dates of payment for Dependency and Indemnity Compensation (DIC) awards to a school child, see M21-1, Part VII, Subpart ii, 1.B.1.e, and
• benefit payments based on school attendance, see 38 CFR 3.667.

VII.ii.1.B.1.b. Effective Date of Payment if a Child Was Not Attending School on Their 18th Birthday

If VA receives a claim for additional benefits based on school attendance within one year of a child’s 18^th birthday, but the child was not attending school on their birthday, pay the additional benefits effective the first day of the month following the month in which school attendance began.

Exceptions:  Follow the instructions in

• M21-1, Part VII, Subpart ii, 1.B.1.a if the child
  • turned 18 during a school break
  • attended school during the term that immediately preceded the break, and
  • resumed school attendance at the end of the break, or
• M21-1, Part VII, Subpart ii, 1.B.1.f if the child turned 18 and graduated/ended school within the same month.

Note:  The instructions in this block are based on an assumption that 38 CFR 3.31 prohibits the payment of benefits effective the date of entitlement.

Reference:  For more information on the payment of benefits based on school attendance, see 38 CFR 3.667.

VII.ii.1.B.1.c. Effective Date of Payment if VA Receives a Claim One Year or More After a Child Turns 18

If VA receives a claim for additional benefits based on school attendance one year or more after a child turns 18, pay the additional benefits effective the first day of the month following the month school attendance began, as long as

• VA receives the claim within one year of the date school attendance began, and
• the child did not turn 23 before school attendance began. 

Example:

Scenario:  A Veteran first files a claim for benefits based on school attendance when his daughter is 20 years old.  The Veteran files the claim on October 12, 2011, and concurrently submits VA Form 21-674, Request for Approval of School Attendance, showing school attendance during the following periods:

• September 6, 2010, through December 22, 2010, and
• January 3, 2011, through April 29, 2011.

Analysis: 

• Because the Veteran did not file a claim within one year of the date school attendance began in September 2010, the earliest effective date for the payment of benefits based on school attendance is February 1, 2011 (first of the month following the month school attendance began in January 2011).
• The date on which the latter of the two school sessions began dictates the date the Veteran is entitled to additional benefits for his school child.  Had the Veteran simply indicated on VA Form 21-674 that school attendance began September 6, 2010, and ended April 29, 2011, it would have been necessary to undertake development to determine the date on which the latter school session began. 

Notes:

• If school attendance begins at a future date, follow the instructions in M21-1, Part VII, Subpart ii, 1.B.5.b.
• The instructions in this block are based on an assumption that payment of benefits effective the date of entitlement is prohibited by 38 CFR 3.31.

Exception:  M21-1, Part VII, Subpart ii, 1.B.1.d, describes an exception to the policy discussed in this block.

Reference:  For more information on the payment of benefits based on school attendance, see 38 CFR 3.667.

VII.ii.1.B.1.d.  Exception to the Policy Expressed in M21-1, Part VII, Subpart ii, 1.B.1.c

It is acceptable to pay additional benefits for a school child effective the first day of the month following the month school attendance began – even though VA received the claim for additional benefits one year or more after school attendance began – under the following circumstance:

• VA makes a decision that results in the assignment of a single or combined disability rating of at least 30 percent (even if the Veteran’s disability rating was already 30 percent or higher, as explained under the Important sublabel in M21-1, Part VII, Subpart i, 1.C.1.c)
• within one year of the date VA notifies the Veteran of the corresponding decision, they file a claim for additional benefits for a school child, and
• the school child attended school at any time after the effective date of the disability rating. 

Example:  The effective date of an award of additional benefits for a school child would be October 1, 2013, in the scenario described below:

• On August 11, 2016, VA assigned a combined disability rating of 50 percent to a Veteran whose previous combined disability rating was 20 percent.
• The effective date of the new disability rating is April 5, 2012.
• VA notified the Veteran of the rating decision on August 12, 2016.
• On October 2, 2016, the Veteran submitted a claim for additional benefits for an 18-year-old child who began attending school on September 1, 2013.

Important:  If the school child referenced in this block was attending school as of the effective date of the new disability rating, the Veteran would be entitled to additional benefits for the school child effective the date of the new disability rating.

Example:  The effective date of an award of additional benefits for a school child would be May 1, 2012, in the scenario described below:

• On August 11, 2016, VA assigned a combined disability rating of 50 percent to a Veteran whose previous combined disability rating was 20 percent.
• The effective date of the new disability rating is April 5, 2012.
• VA notified the Veteran of the rating decision on August 12, 2016.
• On October 2, 2016, the Veteran submitted a claim for additional benefits for an 18-year-old child who began attending school on January 5, 2012.

Reference:  For an explanation of the difference between the effective date of entitlement and the effective date of an award (payment) of benefits, see M21-1, Part VI, Subpart i, 1.A.2.b.

VII.ii.1.B.1.e. Effective Date of Payment of DIC to a School Child

A child is independently entitled to DIC if

• between the ages of 18 and 23
• attending a VA-accredited school, and
• not receiving
  • Dependents’ Educational Assistance (DEA), or
  • education benefits under 38 U.S.C. 3311 (Marine Gunnery Sergeant David Fry Scholarship).

Important:  M21-1, Part VII, Subpart ii, 1.B.2 describes exceptions to the general prohibition of concurrent payment of DIC and DEA or education benefits under the Fry Scholarship.

Use the table below to determine the proper effective date for payment of DIC to a child who turns age 18 while attending school.

References:  For more information on

• school attendance policies, see M21-1, Part VII, Subpart ii, 1.A.1
• DEA, see M21-1, Part XIII, Subpart i, 1.B
• initial awards of DIC to a child, see 38 CFR 3.667(a)(3) and (4), and
• continuing awards of DIC after a child’s 18^th birthday, see 38 CFR 3.667(a)(5).

VII.ii.1.B.1.f. Discontinuing Benefits That Are Based on School Attendance

Any award of benefits based on school attendance will have an end date that corresponds with the date the school child stopped or plans to stop attending school.  Accordingly, discontinue benefits that are based on school attendance effective the earlier of the following dates:

• first day of the month following the month in which school attendance ended or will end, or
• the child’s 23^rd birthday.

Important:  When a minor child who is attending school turns 18 and ceases school attendance within the same month, there is no eligibility to benefits based on school attendance for that month.  Therefore, terminate benefits effective the child’s 18th birthday.

References:  For more information on

• the effective date for discontinuing benefits that are based on
  • school attendance, see 38 CFR 3.667(c), and
  • a child, see
    • 38 CFR 3.31
    • 38 CFR 3.503, and
    • 38 U.S.C 5112(a), and
• handling cases involving
  • a child who stops attending school on a date that is earlier than reported, see M21-1, Part VII, Subpart ii, 1.B.4.c, and
  • a child-apportionee who stops attending school, see M21-1, Part VII, Subpart iii, 1.B.7.b.

Introduction

This topic contains information about concurrent payment of VA education benefits and disability or survivors benefits, including

• prohibition of concurrent payment of DEA and disability or survivors benefits
• history of education benefits for dependents under 38 U.S.C. Chapter 33
• concurrent payment of disability or survivors benefits and education benefits under 38 U.S.C. Chapter 33
• benefit adjustments before and after a child turns 18
• other situations under which concurrent payment is allowed, and
• means for obtaining information about VA’s payment of education benefits.

Change Date

September 28, 2020

VII.ii.1.B.2.a. Prohibition of Concurrent Payment of DEA and Disability or Survivors Benefits

VA may not pay DEA to a child while concurrently paying

• disability benefits (compensation or pension) for or to (as an apportionment) the same child, or
• survivors benefits (death compensation, Survivors Pension, or DIC) for or to (including an apportionment) the same child.

Exception:  The policy described in the previous paragraph does not apply if the child is

• under age 18, or
• age 18 or older and permanently incapable of self-support.

Notes: 

• See M21-1, Part VII, Subpart i, 3.D.1, if the child has two Veteran-parents.
• VA may pay DEA to a
  • spouse while concurrently paying disability benefits for or to (as an apportionment) the spouse, or
  • surviving spouse while concurrently paying survivors benefits to the spouse.

References:  For more information on

• determining whether a child is permanently incapable of self-support, see M21-1, Part X, Subpart ii, 6.B
• DEA, see 38 U.S.C. Chapter 35
• DEA benefits for a child who is permanently incapable of self-support, see M21-1, Part XIII, Subpart i, 1.B.2.b, and
• concurrent payment of DEA and other VA benefits, see 38 CFR 21.3023(b).

VII.ii.1.B.2.b.  History of Education Benefits for Dependents Under 38 U.S.C. Chapter 33

Public Law (PL) 110-252 provided a transferability option under the Post-9/11 GI Bill (38 U.S.C. 3319) that allows service members to transfer all or some of their unused education benefits to their spouse or child(ren).  PL 111-377 extended that same option to members of the Commissioned Corps of the Public Health Service and National Oceanic and Atmospheric Administration.

The Department of Defense (DoD) determines whether or not benefits may be transferred.  Once DoD approves a transfer, dependents must apply for the benefit through VA.

PL 111-32 amended the Post-9/11 GI Bill to allow education benefits (under 38 U.S.C. 3311) for the children of service members who die in the line of duty after September 10, 2001, under the Fry Scholarship.

Spouses became eligible for education benefits under the Fry Scholarship (38 U.S.C. 3311) beginning January 1, 2015.

VII.ii.1.B.2.c.  Concurrent Payment of Disability or Survivors Benefits and Education Benefits Under 38 U.S.C. Chapter 33

Use the information in the table below to determine whether the concurrent payment of disability or survivors benefits and education benefits under 38 U.S.C. Chapter 33 is allowed or prohibited.

VII.ii.1.B.2.d.  Benefit Adjustments Before and After a Child Turns 18

Do not adjust an award of disability or survivors benefits because of concurrent receipt of DEA or education benefits under the Fry Scholarship (38 U.S.C. 3311)

• for any period prior to a child’s 18^th birthday
• for any period between a child’s 18^th birthday and the date of receipt of DEA or education benefits under the Fry Scholarship, provided the child was attending school or was on a routine school break during that same period of time, or
• while a child is permanently incapable of self-support.

VII.ii.1.B.2.e. Other Situations Under Which Concurrent Payment Is Allowed

A parent may receive additional compensation, pension, or DIC for a child that is concurrently receiving education or vocational rehabilitation benefits based on the child’s status as a Veteran.

Payment of Social Security benefits based on school attendance is not a bar to concurrent payment of disability or survivors benefits based on the same school attendance.

VII.ii.1.B.2.f.  Means for Obtaining Information About VA’s Payment of Education Benefits

The table below describes the various means claims processors may use to obtain information about VA’s payment of education benefits to a Veteran’s child(ren).

Important:  Claims processors must

• document their use of any of the means described in the table above by uploading into the Veteran’s electronic claims folder (eFolder)
  • a copy of the response they receive from an RPO, if applicable, and/or
  • a screen shot of the referenced PAYMENT HISTORY INQUIRY and/or M21 screens, and
• ensure only the information specifically related to the child under review is uploaded into the eFolder.

Reference:  For more information on using BIRLS and Share, see the Share User Guide.

Introduction

This topic contains information about the adjustment of disability and survivors benefits based on a child’s receipt of VA education benefits, including

• processing notice of an initial award of DEA to a child for or to whom VA is or was paying
  • disability compensation, and
  • disability pension or survivors benefits
• processing notice of an initial award of education benefits to a child under the Fry Scholarship
• determining whether to issue a notice of proposed adverse action
• effective date for adjusting disability or survivors benefits, and
• overpayments created when an award is adjusted to reflect a child’s election of VA education benefits.

Change Date

March 2, 2022

VII.ii.1.B.3.a.  Processing Notice of an Initial Award of DEA to a Child for or to Whom VA Is or Was Paying Disability Compensation

An RPO’s initial award of DEA to a child for or to whom VA is paying disability compensation (including an apportionment) triggers the creation of work item 820, CH35 Duplicate Entitlement.  Use the table below to process the work item.

Reference:  For information on processing 800 series work items, see M21-4, Appendix B, 4.

VII.ii.1.B.3.b.  Processing Notice of an Initial Award of DEA to a Child for or to Whom VA Is or Was Paying Disability Pension or Survivors Benefits

When an RPO processes an initial award of DEA to a child to or for whom VA is paying disability pension or survivors benefits, it routes notice of the award to pension management centers through Centralized Mail.  Use the table in M21-1, Part VII, Subpart ii, 1.B.3.c, to process the notice.

Reference:  For a copy of the notice RPOs send, see the attachment Removal of Dependent Template.pdf, at the bottom of the article for M22-4, Part 7, 4.

VII.ii.1.B.3.c.  Processing Notice of an Initial Award of Education Benefits to a Child Under the Fry Scholarship

When an RPO processes an initial award of education benefits to a child under the Fry Scholarship (38 U.S.C. 3311), it routes notice of the award to regional offices (ROs) through Centralized Mail.  Use the table below to process the notice.

Reference:  For a copy of the notice RPOs send, see the attachment Removal of Dependent Template.pdf, at the bottom of the article for  M22-4, Part 7, 4.

VII.ii.1.B.3.d.  Determining Whether to Issue a Notice of Proposed Adverse Action

If concurrent payment of education benefits (DEA or education benefits under the Fry Scholarship) and disability or survivors benefits is prohibited under M21-1, Part VII, Subpart ii, 1.B.2, determine whether the disability or survivors benefit may be adjusted without issuing a notice of proposed adverse action.

If the child is

• receiving survivors benefits in their own right or an apportionment of disability or survivors benefits, 
  • stop paying benefits (including an apportionment) to the child without issuing a notice of proposed adverse action, and
  • send the child contemporaneous notice of the action taken, or
• included as a dependent on a compensation, pension, or DIC award, follow the instructions in the table below.

Reference:  For more information on award adjustments when VA is paying disability or survivors benefits for a child under a consolidated award before an election to receive education benefits is made, see

• M21-1, Part XIII, Subpart i, 1.B.3.c
• 38 CFR 3.651
• 38 CFR 3.703(c), and
• 38 CFR 3.704(a).

VII.ii.1.B.3.e. Effective Date for Adjusting Disability or Survivors Benefits

According to 38 CFR 3.503(a)(8), the effective date for reducing or discontinuing disability or survivors benefits, including an apportionment, based on a child’s receipt of education benefits (DEA or education benefits under the Fry Scholarship), is the “[d]ay preceding beginning date of educational assistance allowance.”  VA’s claims-processing systems pay benefits through that day, making the next day (the effective date of the initial grant of entitlement to education benefits) the

• first day of non-payment of disability or survivors benefits, and
• date claims processors must ensure appears in the
  • AWARD EFF. DT. field on the RECORD DECISIONS – DEPENDENCY screen, and
  • AWARD EFFECTIVE DATE field on the RECORD DECISIONS – ALLOTMENTS screen (if also discontinuing an apportionment to the child).

Important:  If an initial award of VA education benefits (DEA or education benefits under the Fry Scholarship) to a child commences at the end of a routine break between school sessions (such as a summer break), disability or survivors benefits may be payable to or for the child during the break, according to the policy expressed in

• M21-1, Part VII, Subpart ii, 1.A.3.d, and
• M21-1, Part XIII, Subpart i, 1.B.2.b.

VII.ii.1.B.3.f. Overpayments Created When an Award Is Adjusted to Reflect a Child’s Election of VA Education Benefits

Any overlap in the payment of education benefits (DEA or education benefits under the Fry Scholarship) and disability or survivors benefits

• requires adjustment of the disability or survivors benefit, and
• will result in the creation of an overpayment.

If, during the overlap in payments, VA paid disability or survivors benefits

• to the child, including an apportionment,
  • claims processors must notify the RPO of jurisdiction (by e-mail) of the overpayment
  • the RPO will notify its finance activity, and
  • the finance activity will recoup the overpayment from the initial payment of education benefits to the child, or
• for the child, to a Veteran or surviving spouse, VA will create an overpayment in the Veteran’s or surviving spouse’s account.

Note:  The RPO of jurisdiction is displayed in the CURRENT LOCATION (of the EDU folder) field on the BIRLS BENEFICIARY INFORMATION screen.

References:  For more information on

• determining the RPO of jurisdiction, see M22-4, Part 3, 1.02
• RPO e-mail addresses, see M21-1, Part XIII, Subpart i, 1.B.3.b, and
• handling an overpayment resulting from the concurrent payment of DEA and disability or survivors benefits, see VBA Letter 20-01-13, DEA (Dependents’ Educational Assistance) Claims – Chapter 35.

Introduction

This topic contains information on miscellaneous award actions involving school attendance, including

• transfers to a different school reported by a beneficiary
• third-party notice of a change in school status
• early termination of school attendance
• death or marriage of a school child
• school children that VA determines are permanently incapable of self-support, and
• DIC awards based on school attendance or permanent incapacity for self-support.

Change Date

March 2, 2022

VII.ii.1.B.4.a. Transfers to a Different School Reported by a Beneficiary

A transfer to a different school is relevant for the purposes of payment of benefits for school children only when the transfer results in any one of the following changes in status:

• a break in continuous enrollment
• a difference in accreditation status, or
• a change to or from a wholly federally-funded institution or program.

When VA Form 21-674 or equivalent information shows a transfer to another school that

• does not result in one or more of the changes described above, no benefit adjustment is required, or
• results in one of the status changes described above,
  • treat the status change as an early termination of school attendance (for the purposes of this block), and
  • follow the instructions in M21-1, Part VII, Subpart ii, 1.B.4.c.

Note:  There is no requirement to report attendance at different educational institutions on separate copies of VA Form 21-674.  The form or equivalent information need only indicate whether continuous enrollment at an accredited education institution has been maintained and whether the attendance is wholly funded by the Federal government as described in 38 CFR 3.667(f).

Reference:  For more information on handling substantially complete forms that are missing information, see M21-1, Part VII, Subpart i, 1.A.4.e.

VII.ii.1.B.4.b.  Third-Party Notice of a Change in School Status

Additional development to a beneficiary is required when information is received from a third party that reports any of the following status changes:

• a break in continuous enrollment
• a difference in accreditation status, or
• a change to or from a wholly federally funded institution or program.

When information showing one of the status changes above has been received from a third party, follow the steps in the table below.

VII.ii.1.B.4.c. Early Termination of School Attendance

If a child stops attending school from a date earlier than the beneficiary originally reported, discontinue or reduce the award effective the first day of the month following the month in which school attendance ended.

Exception:  If an award is running that pays additional compensation for a school child during a regularly scheduled vacation period (based on an expectation the child will return to school at the end of that period), but the child does not return to school, discontinue or reduce the award effective the earlier of the following dates:

• the date in the LAST PAID DATE field on the AWARD INFORMATION tab in Share, or
• first day of the month school was scheduled to resume.

Notes:

• Provide a notice of proposed adverse action prior to discontinuing or reducing an award if information is received from someone other than the payee.
• Beneficiaries should use VA Form 21-674b, School Attendance Report, to report early termination of school attendance.  However, they may also notify VA by telephone or e-mail.
• Handle information received by telephone as shown in M21-1, Part III, Subpart i, 2.D.1.f.

References:  For more information on the

• policies expressed in this block, see 38 CFR 3.667, and
• specific requirements for notices of proposed adverse action, see M21-1, Part X, Subpart ii, 3.A.

VII.ii.1.B.4.d. Death or Marriage of a School Child

If a school child on a Veteran’s or surviving spouse’s award dies or marries, follow the instructions in M21-1, Part VII, Subpart i, 1.C.4.h.

VII.ii.1.B.4.e. School Children That VA Determines Are Permanently Incapable of Self-Support

When VA’s rating activity determines a school child is permanently incapable of self-support, the effective date of the change in status is the earlier of the following dates:

• child’s 23^rd birthday, or
• first of the month following the month school attendance ends.

Reference:  For more information on determining whether a child is permanently incapable of self-support, see M21-1, Part X, Subpart ii, 6.B.

VII.ii.1.B.4.f.    DIC Awards Based on School Attendance or Permanent Incapacity for Self-Support

Make payments of DIC under a separate award for a child who is over age 18 and

• attending school, and/or
• permanently incapable of self-support.

Notes: 

• Make the payment under a separate award, even though
  • the child may be in the custody of a surviving spouse in receipt of DIC, and
  • VA is paying the separate award to the surviving spouse as the child’s custodian under 38 U.S.C. 5502.
• If VA was paying DIC for the child to a surviving spouse prior to the child’s 18^th birthday, the child does not have to submit their own application for DIC.

References:  For more information on

• the payment of DIC directly to a school child who has reached the age of majority, see M21-1, Part VII, Subpart ii, 1.B.7.a, and
• VA’s authority to pay DIC to a
  • school child who has reached age 18, see 38 CFR 3.667(a), or
  • child who is permanently incapable of self-support, see 38 CFR 13.30.

Introduction

This topic contains information about the process for handling notice of a child’s intent to begin or continue school attendance at a future date, including

• payment of benefits based on school attendance in the future or when a child turns 18, and
• confirming a child began or continued attending school.

Change Date

February 2, 2022

VII.ii.1.B.5.a. Payment of Benefits Based on School Attendance in the Future or When a Child Turns 18

In order to avoid an interruption of benefits, a beneficiary may submit VA Form 21-674 showing that a child intends to continue attending school

• upon turning 18, or
• following a routine school break, as defined in M21-1, Part VII, Subpart ii, 1.A.3.b.

Upon receipt of VA Form 21-674 showing an intent to begin or continue school attendance at a future date,

• take award action to continue the payment of benefits based on school attendance, and
• follow the instructions in M21-1, Part VII, Subpart ii, 1.B.5.b.

Exception:  Do not take the award action described in this block earlier than three months before a school child’s 18^th birthday.  Follow the instructions in the table below if the date of receipt of a VA Form 21-674 precedes the date of a school child’s 18th birthday by more than three months.

Note:  RO and call center employees may complete and sign VA Form 21-674 on a claimant’s behalf, per M21-1, Part VII, Subpart i, 1.A.4.j.

VII.ii.1.B.5.b. Confirming a Child Began or Continued Attending School

After taking award action to continue the payment of benefits for a child who intends to begin or continue attending school at a future date, follow the steps in the table below.

Introduction

This topic contains information about verifying a child’s school attendance, including

• certifying school attendance with VA Form 21-8960-1, Certification of School Attendance or Termination
• schedule for mailing VA Form 21-8960-1
• action to take when the Hines Information Technology Center (ITC) is unable to issue VA Form 21-8960-1
• processing VA Form 21-8960-1
• failure to certify school attendance, and
• avoiding concurrent payment of VA education benefits and disability or survivors benefits.

Change Date

VII.ii.1.B.6.a. Certifying School Attendance With VA Form 21-8960-1

At least once each year, VA requires each beneficiary who receives additional benefits for a school child to certify the child is attending school and intends to continue doing so through the date school attendance is scheduled to end.  VA does this by requiring the beneficiary to

• complete and return VA Form 21-8960-1, Certification of School Attendance or Termination, or
• provide the information the form requests to one of VA’s NCCs.

Important:  If VA does not receive certification of school attendance, it may discontinue benefits payable to or for the child.

References:  For more information on

• processing VA Form 21-8960-1, see M21-1, Part VII, Subpart ii, 1.B.6.d, and
• VA’s schedule for mailing VA Form 21-8960-1, see M21-1, Part VII, Subpart ii, 1.B.6.b.

VII.ii.1.B.6.b. Schedule for Mailing VA Form 21-8960-1

VA automatically generates and mails VA Form 21-8960-1 to beneficiaries who are receiving benefits based on school attendance

• each March, and/or
• two months before the date school attendance is scheduled to end, unless the end date is in June.

Concurrent with this action, a diary under diary code 22 is automatically established in the corporate record to control for return of the form within 60 days.

Reference:  For more information about diary controls, see the

• Share User Guide
• VETSNET Awards User Guide, and
• VBMS Awards User Guide.

VII.ii.1.B.6.c.  Action to Take When the Hines ITC Is Unable to Issue VA Form 21-8960-1

When the Hines Information Technology Center (ITC) cannot issue VA Form 21-8960-1, VA’s claims-processing system generates work item 882H, School Child Verification Letter Not Sent.  When the work item appears in an RO’s inventory, the RO must send the beneficiary a VA Form 21-8960-1.

To control for return of the form,

• establish a future diary under diary code 30, Local Regional Office Special Use, in Share that expires the month after a 60-day period that begins the later of the following dates:
  • the date the work item was generated, or
  • the date the RO sent the form to the beneficiary, and
• enter the comment School Child Verification Development in the COMMENT text box.

Reference:  For more information on 800 series work items, see M21-4, Appendix B.

VII.ii.1.B.6.d. Processing VA Form 21-8960-1

Follow the instructions in the table below following receipt of a completed VA Form 21-8960-1.

VII.ii.1.B.6.e. Failure to Certify School Attendance

If a beneficiary fails to return VA Form 21-8960-1 within 60 days, the diary referenced in M21-1, Part VII, Subpart ii, 1.B.6.b expires (because it was never cleared).  When this occurs, VA’s claims-processing system generates an EP 130 – Dependency 674 or PMC Dependency 674.

Follow the steps in the table below in response to an EP 130 indicating a beneficiary failed to return VA Form 21-8960-1 within 60 days.

VII.ii.1.B.6.f. Avoiding Concurrent Payment of VA Education Benefits and Disability or Survivors Benefits

Claims processors must follow the steps in the table below each time they process VA Form 21-8960-1, 21-674, or 21-674b.

Introduction

This topic contains information about the direct payment of benefits to certain school children, including

• payment of benefits to a school child after the age of majority
• information required to pay benefits directly to a child, and
• authority to sign VA Form 21-674.

Change Date

VII.ii.1.B.7.a. Payment of Benefits to a School Child After the Age of Majority

If VA is paying benefits to a child through a fiduciary (to include a parent who is acting as the child’s custodian under 38 U.S.C. 5502) solely because the child is a minor, 38 CFR 13.30 requires VA to start paying benefits directly to the child if they

• have reached the age of majority, and
• are attending school.

Important:  This policy also applies to a school child who is receiving DIC based on school attendance under the provisions of M21-1, Part VII, Subpart ii, 1.B.4.f.

Note:  The age of majority

• is the age at which an individual is legally considered an adult, and
• varies by State.

Reference:  For more information on the age of majority in each State and territory, see M21-1, Part X, Subpart ii, 6.E.3.c.

VII.ii.1.B.7.b. Information Required to Pay Benefits Directly to a Child

As stated in M21-1, Part X, Subpart ii, 6.E.3.b, when an RO initially awards benefits to a minor child through a fiduciary (custodian/guardian), it concurrently establishes a diary that will expire before the child reaches the age of majority.

Upon expiration of the diary, follow the steps in the table below to determine whether the child is entitled to the direct payment of benefits based on school attendance.

VII.ii.1.B.7.c.  Authority to Sign VA Form 21-674

Use the table below to determine who has authority to sign VA Form 21-674.

Note:  A claimant’s representative (power of attorney or employee of a Veterans service organization), if recognized by VA, may sign and submit VA Form 21-674 to VA on a claimant’s behalf.

References:  For more information on the

• age of majority, see M21-1, Part VII, Subpart ii, 1.B.7.a, and
• acceptability of forms signed by VA-recognized representatives, see M21-1, Part VII, Subpart i, 1.A.4.j.

Introduction

This topic contains information about claims for disability or survivors benefits from or for a child who is eligible for VA education benefits, including

• finality of an election of DEA or education benefits under the Fry Scholarship, and
• determining whether VA has paid education benefits and the effective date of the award.

Change Date

VII.ii.1.B.8.a. Finality of an Election of DEA or Education Benefits Under the Fry Scholarship  

An election to receive DEA or education benefits under the Fry Scholarship is final.  Once VA pays either of the education benefits to a child, VA may not pay disability or survivors benefits to or for the same child for any period subsequent to the effective date of the first payment of education benefits.

Exception:  A child who is under the age of 18 or permanently incapable of self-support may be able to reelect disability or survivors benefits after electing education benefits if

• the child has two Veteran-parents in the same parental line, and
• both parents died prior to June 9, 1960.

References:  For more information on the

• finality of an election of DEA, see 38 CFR 21.3023(c), and
• exception cited in this block, see
  • 38 CFR 21.3023(b), and
  • M21-1, Part VII, Subpart i, 3.D.1.

VII.ii.1.B.8.b.  Determining Whether VA Has Paid Education Benefits and the Effective Date of the Award

Follow the steps in the table below following receipt of a claim for disability or survivors benefits from or for a child who is

• over the age of 18
• attending school, and
• eligible for DEA or education benefits under the Fry Scholarship.

References:  For more information on a child’s eligibility for

• DEA, see M21-1, Part XIII, Subpart i, 1.B.1.a, and
• education benefits under the Fry Scholarship, see M21-1, Part VII, Subpart ii, 1.B.2.b.