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Rate of Payment

In return for the student's agreement to perform services for VA totaling, for example, 250 hours during an enrollment period, VA will pay an allowance in an amount equal to the prevailing Federal or State minimum wage, whichever is higher, times 250. VA will pay proportionately less to students who agree to perform a lesser number of hours of services.

Advance payment will be limited to the amount that would be paid for the first 50 hours of each work-study contract, or 40% of the amount of the total contract, whichever is the lesser. Thereafter, payments are made in arrears for each increment of 50 hours of service performed.

In the event the student ceases to be at least a three-quarter time student before completing an agreement, the student, with the approval of the VA regional office, may be permitted to complete the portions of an agreement in the same or immediately following term in which the student ceases to be a three-quarter-time student.

If the student terminates all training before completing an agreement, VA may permit him or her to complete the portion of the agreement represented by the money VA has advanced to the student for which he or she has performed no services, but will not permit him or her to complete that portion of an agreement for which no advance payment has been made.

The student must complete the portion of an agreement in the same or immediately following term in which he or she terminates training. If the veteran has received an advance for hours of unperformed service, and VA has evidence that he or she does not intend to perform that service, the advance will be a debt due the government, and will be subject to recovery the same as any other debt due the United States. The amount of indebtedness or each hour of unperformed service will equal the hourly wage that formed the basis of the contract.