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VA spends $273 million on glitchy digital system that has slowed veterans claims

The Veterans Affairs Department has spent $273 million trying to go from paper to digital claims, but it’s off to a bumpy start. In fact, veterans claims sent digitally are being processed more slowly than the traditional way.

That’s the finding of a new investigative report by the VA’s inspector general that provides a stark looks at the flaws in a project that was supposed to speed, not slow, veterans’ benefits.

The Veterans Benefits Management System “experienced a number of  performance issues including system failures, slowness and errors in generating notification letters for veterans,” the inspector general said in an investigative report.

The program so far has cost $273 million, and officials said they plan to spend an additional $92 million by October.

The goal of the Veterans Benefits Administration was to become completely paperless and “minimize rating inconsistencies and errors, and mishandling of veterans’ claims information,” the investigators said.  “More importantly, VBA anticipated that its transformation, which included paperless processing, would result in a 45 to 60 percent increase in productivity  while improving quality.”

But investigators found that VA officials hadn’t done the proper testing on the software, including running “not realistic” scenarios and failing to get a clear goal of some of the demands that would be placed on the software.

As a result, the new computer system has slowed down the process considerably.  Federal employees told investigators it use to take four minute to input a veteran’s claims.  Now it’s taking 18 minutes.  And computer memory problems are rampant, the IG said.  Opening a single document can take three or more minutes.

And paper documents that were scanned into the computer were done piecemeal, with little emphasis on what was important or how files should be organized, the inspector general said.

The National Archives and Records Administration said the VA sent them 50,000 to 63,000 pages a day to scan into the computer, a huge volume with no guidance on what should be prioritized, the IG said.

VA officials, however, said the plan from the beginning was to make incremental improvements over time, instead of trying to bring online a single large system all at once.

“Such an approach would have been high-risk and, due to the continuously evolving nature of the requirements, would have resulted in the system failing to meet real user requirements when finally delivered,” the VA said in a response to the report.  “Given the complexity of this automation initiative, VA will not be able to completely avoid issues. VA’s strategy is to continue to develop and consistently expand and improve this unique system, addressing risks and issues as they are identified.”

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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