The 85/15 Rule Demystified: A Visual Guide with Real Examples
Understand, calculate, and monitor the 85/15 rule to keep your programs compliant and your students enrolled
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.
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
Real-World Calculation Examples
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
- Diversify Recruitment: Actively recruit non-VA students through targeted marketing, partnerships with employers, and community outreach
- Pause VA Enrollments: Temporarily stop accepting new VA students in the affected program until ratio improves
- Offer Scholarships: Create institutional scholarships to offset costs for potential students who might otherwise use VA benefits
- Communicate Early: Contact your State Approving Agency before violations occur to discuss options and demonstrate proactive management
Common Pitfalls to Avoid
Key Takeaways
- The 85/15 rule prevents programs from being too dependent on VA funding
- Monthly monitoring is essential, don't wait for annual reviews
- Proactive recruitment of non-VA students prevents compliance issues
- Documentation of your monitoring efforts is critical during audits