M21-1 Manual / Part VII, Subpart ii, Chapter 1, Section B
Awards and Adjustments Based Upon School Attendance
M21-1, Part VII, Subpart ii, Chapter 1, Section B
Overview
In This Section | This section contains the following topics:
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1. Effective Dates of Payment
Introduction | This topic contains general information on the effective dates of payment of awards based on school attendance, including
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Change Date | March 2, 2022 |
VII.ii.1.B.1.a. Effective Date of Payment if a Child Was Attending School on Their 18th Birthday | Entitlement to compensation or pension based on a child’s school attendance is effective on the date of the child’s 18th birthday if
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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 18th 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
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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
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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:
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VII.ii.1.B.1.e. Effective Date of Payment of DIC to a School Child | A child is independently entitled to DIC if
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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:
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2. Concurrent Payment of VA Education Benefits and Disability or Survivors Benefits
Introduction | This topic contains information about concurrent payment of VA education benefits and disability or survivors benefits, including
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Change Date | February 27, 2026 |
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
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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 War (DOW) determines whether or not benefits may be transferred. Once DOW 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.
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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)
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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).
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3. Adjustment of Disability and Survivors Benefits Based on a Child’s Receipt of VA Education Benefits
Introduction | This topic contains information about the adjustment of disability and survivors benefits based on a child’s receipt of VA education benefits, including
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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.
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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.
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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
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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
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 |
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
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4. Miscellaneous Award Actions Involving School Attendance
Introduction | This topic contains information on miscellaneous award actions involving school attendance, including
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Change Date | February 27, 2026 |
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:
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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:
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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.g. |
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:
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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
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5. Handling Notice of a Child’s Intent to Begin or Continue School Attendance at a Future Date
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
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Change Date | February 27, 2026 |
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.
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6. Verifying a Child’s School Attendance
Introduction | This topic contains information about verifying a child’s school attendance, including
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Change Date | March 2, 2022 |
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
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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
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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,
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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.
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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.
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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, or21-674b.
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7. Direct Payment of Benefits to Certain School Children
Introduction | This topic contains information about the direct payment of benefits to certain school children, including
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Change Date | February 27, 2026 |
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 any such child who subsequently reaches the age of majority while 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
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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.
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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.
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8. Claims for Disability or Survivors Benefits From or for a Child Who is Eligible for VA Education Benefits
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
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Change Date | September 28, 2020 |
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
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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
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Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part VII, Subpart ii, Chapter 1, Section B (U.S. government work, reproduced for reference). Browse all sections →