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Business and Policy Areas
Business and Policy Areas

DoD Memorandum of Understanding for Voluntary Education Programs Under Review

October 11, 2011

The Department of Defense (DoD) is requiring institutions to sign a new memorandum of understanding (MOU) by January 1, 2012, in order to continue participating in its Voluntary Education Programs. The largest of these is the Tuition Assistance program, which provides up to $4,500 a year for active duty and reserve personnel to pursue additional education. More than half a million people participated in these programs in 2010.

A number of institutions have found that they cannot agree to some of the provisions in the MOU as drafted. Concerns include requirements about awarding transfer credit, accepting credit card payments, and reporting information about students. Institutions that serve a limited number of service members are probably more likely to have issues, as those institutions that are more heavily involved have probably made the necessary adjustments to their procedures and practices.

NACUBO has joined a coalition of associations to seek modifications and clarifications to the MOU. Discussions with DoD are underway and progress is likely. Institutions that have not yet signed the MOU are advised to hold off on doing so until the results of these efforts are determined.


Anne Gross
Vice President, Regulatory Affairs