The process by which institutions and courses are approved for veterans educational benefits is examined in this study mandated by Public Law 95-202. The legislative background of the investigation is described as well as the history of the Servicemen's Readjustment Act of 1944, the Korean Bill of 1952, and P.L. 94-502 of 1976. A summary guide to the existing approval process is presented and the roles of VA headquarters and regional offices are discussed. Problems encountered while striving to control the misuse or abuse of benefits by veterans and institutions are a major focus of the study. The operations of the state approval agencies are detailed. State departments of education were most often designated as the approval agencies for veterans education and by 1978 a total of 80 agencies were responsible for approving all kinds of programs. Other areas that are investigated include: the role of accreditation, approving out-of-state colleges, flight school approvals, and job training programs. The approval systems of the United States Office of Education and the Social Security Administration are also examined. Recent major developments in higher education that Vietnam-era veterans and the VA have encountered are also discussed, focusing on factors that have contributed to a decline in academic standards. Veterans education is also examined from the schools' point of view. Appended are Sections 1775-1779, Title 38, U.S. Code, December 1976, Veterans Benefits; and related litigation. (SF)