The 85/15 Rule Demystified: A Visual Guide

The 85/15 rule is one of the most misunderstood—and most critical—compliance requirements for VA-approved programs. Violating this rule can result in program disapproval, putting your veteran students' benefits at risk and creating significant operational challenges for your institution.

This guide breaks down the 85/15 rule with visual examples, real-world scenarios, and practical monitoring strategies to help you maintain compliance with confidence.

⚠️ Critical Compliance Rule

The 85/15 rule requires that no more than 85% of students enrolled in a course are having all or part of their tuition paid by VA educational assistance. If violated, programs can lose VA approval.

Understanding the 85/15 Rule

What Programs Does It Apply To?

The 85/15 rule applies primarily to:

• Proprietary (for-profit) schools
• Non-college degree programs at public and private institutions
• Flight training programs
• Apprenticeship and on-the-job training programs

Important: Traditional college degree programs at public and nonprofit institutions are generally exempt from this requirement.

The Basic Formula

(VA Students ÷ Total Students) × 100 ≤ 85%

If this percentage exceeds 85%, the program is out of compliance

Real-World Calculation Examples

✓ Example 1: Compliant Program

Aviation Maintenance Program

• Total Students Enrolled: 50

• Students Using VA Benefits: 38

• Students Paying Out-of-Pocket/Other Aid: 12

Calculation: (38 ÷ 50) × 100 = 76%

Result: COMPLIANT ✓ (76% is below the 85% threshold)

❌ Example 2: Non-Compliant Program

Welding Certificate Program

• Total Students Enrolled: 30

• Students Using VA Benefits: 27

• Students Paying Out-of-Pocket/Other Aid: 3

Calculation: (27 ÷ 30) × 100 = 90%

Result: NON-COMPLIANT ❌ (90% exceeds the 85% threshold)

⚠️ Example 3: Borderline Compliance

Commercial Driver's License Program

• Total Students Enrolled: 40

• Students Using VA Benefits: 34

• Students Paying Out-of-Pocket/Other Aid: 6

Calculation: (34 ÷ 40) × 100 = 85%

Result: TECHNICALLY COMPLIANT ⚠️ (Exactly at threshold - one more VA student would cause violation)

Monthly Monitoring Strategies

Recommended Monitoring Schedule

📅

Weekly: Quick Checks

Monitor new enrollments and withdrawals that could affect ratios

📊

Monthly: Full Calculation

Calculate exact ratios for all subject programs and document results

📈

Quarterly: Trend Analysis

Review trends and adjust recruitment strategies if approaching limits

Tracking Template Essentials

Your monitoring spreadsheet should include:

✓ Program name and code
✓ Total enrollment count by program
✓ VA-funded student count
✓ Non-VA student count
✓ Calculated percentage
✓ Compliance status indicator
✓ Date of calculation
✓ Notes on enrollment changes

Corrective Action Plans

If You're Approaching the 85% Limit

1. Diversify Recruitment

Actively recruit non-VA students through targeted marketing, partnerships with employers, and community outreach

2. Pause VA Enrollments

Temporarily stop accepting new VA students in the affected program until ratio improves

3. Offer Scholarships

Create institutional scholarships to offset costs for potential students who might otherwise use VA benefits

4. Communicate Early

Contact your State Approving Agency before violations occur to discuss options and demonstrate proactive management

Common Pitfalls to Avoid

❌ Don't Do This

• Wait until after violations to check ratios
• Assume the rule doesn't apply to your programs
• Count students who dropped in your calculations
• Ignore borderline compliance situations
• Fail to document your monitoring efforts

✓ Do This Instead

• Monitor ratios monthly or more frequently
• Verify applicability for each program
• Use current enrollment snapshots
• Take action when reaching 80% threshold
• Maintain detailed compliance records

The 85/15 Rule Demystified: A Visual Guide with Real Examples