Anticipating a tidal wave of GI Bill claims next summer when a new full-tuition benefits plan takes effect, the Veterans Affairs Department plans to hire 400 people at its regional offices by March 1.

The Post-9/11 GI Bill, which takes effect Aug. 1, is so popular and generous in comparison to existing benefits that VA officials are preparing to have 526,000 benefits claims next year, said Keith Wilson, director of the VA's education service.

Wilson, testifying before a House subcommittee that is concerned about whether VA is going to be ready, said initial plans to use a completely automated claims process have not worked out. Most claims will be manually processed, he said, with help from a computer program to make sure all needed information is available.

Wilson described manual claims processing as a "throw away" solution that would be abandoned as soon as an automated system is ready. He expects that to take up to two years longer.

Wilson did not say what would happen to the 400 new hires after the automated system is available but members of the House Veterans' Affairs Committee, who have been monitoring startup problems, said they expect the claims workers would be transferred to other duties because VA has a large backlog of disability benefits claims that also need to be tackled.

Implementing the Post-9/11 GI Bill is more complicated than processing claims for current veterans' educational benefits programs because there are significant differences in the payments, including who gets paid. The new program will send tuition checks directly to the school while the student will receive a living stipend and book allowance, with the living stipend based on housing costs in the ZIP code where the school is located.

Benefits will cover the full cost of tuition and fees for a four-year public college or university, with a maximum rate set for each state.

Trying to assure lawmakers and veterans that VA will be ready, Wilson said there will be two significant signs of progress in December. He expects regulations spelling out the details of benefits and eligibility to be published by Dec. 1. Also, VA plans to begin contacting private schools to reach agreement on another benefit of the new GI Bill in which the government and school will cover some tuition costs that exceed the basic benefit. VA's schedule calls for agreements with private schools to be completed by Feb. 15 so that a full list is available by April 1. "We would like veterans to have that information by spring, when they start to make decisions about where they will go to school," Wilson said.

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