**§21.4210 Suspension, discontinuance, and denial of educational
assistance payments, and**

> **disapproval of enrollments or reenrollments for pursuit of approved
> courses.**

\(a\) *Overview; explanation of terms used in §§21.4210 through
21.4216*.

\(1\) VA may pay educational assistance to a reservist under 10 U.S.C.
chapter 1606 for the reservist's pursuit of a course approved in
accordance with the provisions of 38 U.S.C. chapter 36. VA may pay
educational assistance under 38 U.S.C. chapter 32 or 35 to a veteran or
eligible person for the individual's pursuit of a course approved in
accordance with the provisions of 38 U.S.C. chapter 36 or if the
individual has taken a licensing or certification test approved in
accordance with the provisions of 38 U.S.C. chapter 36. VA may pay
educational assistance under 38 U.S.C. chapter 30 to a veteran or
servicemember for the individual's pursuit of a course approved in
accordance with the provisions of 38 U.S.C. chapter 36; if the
individual has taken a licensing or certification test approved in
accordance with the provisions of 38 U.S.C. chapter 36; or if the
individual is entitled to be paid benefits (tuition assistance top-up)
to meet all or a portion of an educational institution's charges for
education or training that the military department concerned has not
covered under tuition assistance. Except for tuition assistance top-up,
where courses do not need to be approved, a State approving agency
designated by VA, or in some instances VA, approves the course or test
for payment purposes. Notwithstanding such approval, VA, as provided in
paragraphs (b), (c), and (d) of this section, may suspend, discontinue,
or deny payment of benefits to any or all otherwise eligible individuals
for pursuit of a course or training approved under 38 U.S.C. chapter 36,
and for taking a licensing or certification test approved under 38
U.S.C. chapter 36.

\(2\) For the purposes of this section and the purposes of §§21.4211
through 21.4216, except as otherwise expressly stated to the contrary:

> \(i\) The term "course" includes an apprenticeship or other on-job
> training program;
>
> \(ii\) The term "educational institution" includes a training
> establishment, or organization or entity offering a licensing or
> certification test; and

\(iii\) Reference to action suspending, discontinuing, or otherwise
denying enrollment or reenrollment means such action with respect to
providing educational assistance under the chapters listed in paragraph
(a)(1) of this section. (Authority: 10 U.S.C. 16136(b); 38 U.S.C.
3034(a), 3241(a), 3452, 3671, 3690)

\(b\) *Denial of payment in individual cases*.

\(1\) VA may deny payment of educational assistance to a specific
individual for pursuit of a course or courses if, following an
examination of the individual's case, VA has credible evidence affecting
that individual that:

\(i\) The course fails to meet any of the requirements of 10 U.S.C.
chapter 1606, or 38 U.S.C. chapter 30, 32, 34, 35, or 36; or

\(ii\) The educational institution offering the individual's course has
violated any of those requirements of law. (Authority: 10 U.S.C.
16136(b); 38 U.S.C. 3034(a), 3241(a), 3690(b)(1), 3690(b)(2))

\(2\) VA may deny payment of educational assistance to a specific
individual for taking a licensing or certification test if, following an
examination of the individual's case, VA has credible evidence affecting
that individual that:

\(i\) The test fails to meet any of the requirements of 38 U.S.C. 3689;
or

\(ii\) The organization or entity offering the individual's test has
violated any of the requirements of 38 U.S.C. 3689. (Authority: 38
U.S.C. 3689)

\(c\) *Notice in individual cases*. Except as provided in paragraph (e)
of this section, when VA denies payment of educational assistance to an
individual under paragraph (b) of this section, VA will provide
concurrent written notice to the individual. The notice shall state:

\(1\) The adverse action;

\(2\) The reasons for the action; and

\(3\) The individual's right to an opportunity to be heard thereon in
accordance with part 19 of this title. (Authority: 10 U.S.C. 16136(b);
38 U.S.C. 3034(a), 3241(a), 3689, 3690)

\(d\) *Actions affecting groups*.

\(1\) The Director of the VA Regional Processing Office of jurisdiction
may:

\(i\) Suspend payments of educational assistance to all veterans,
servicemembers, reservists, or eligible persons already enrolled in a
course;

\(ii\) Disapprove all further enrollments or reenrollments of
individuals seeking VA educational assistance for pursuit of the course
(except for enrollments and reenrollments of servicemembers seeking to
be paid benefits (tuition assistance top-up) to meet all or a portion of
an educational institution's charges for education or training that the
military department concerned has not covered under tuition assistance);
and

\(iii\) Suspend payments of educational assistance to all veterans,
servicemembers, or eligible persons who may take a licensing or
certification test after a date that the Director may determine.

\(2\) Except as provided in paragraphs (d)(3) and (i) of this section,
the decision to act as described in paragraph (d)(1) of this section
must be based on evidence of a substantial pattern of veterans,
servicemembers, reservists, or eligible persons enrolled in the course
or taking the test receiving educational assistance to which they are
not entitled because:

\(i\) One or more of the course approval requirements of 38 U.S.C.
chapter 36 are not met, including the course approval requirements
specified in §§21.4253, 21.4254, 21.4261, 21.4262, 21.4263, 21.4264, and
21.4268; or

\(ii\) The educational institution offering the course has violated one
or more of the recordkeeping or reporting requirements of 10 U.S.C.
chapter 1606, or of 38 U.S.C. chapters 30, 32, 34, 35, and 36. These
violations may include, but are not limited to, the following:

\(A\) Willful and knowing submission of false reports or certifications
concerning students or courses of education;

\(B\) Failure to report to VA a veteran's, servicemember's, reservist's,
or eligible person's reduction, discontinuance, or termination of
education or training; or

\(C\) Submission of improper or incorrect reports in such number,
manner, or period of time as to indicate negligence on its part,
including failure to maintain an adequate reporting or recordkeeping
system.

\(3\) The Director also may make a decision to take the action described
in paragraph (d)(1) of this section when the Director has evidence that
one or more prohibited assignments of benefits have occurred at an
educational institution as a result of that educational institution's
policy. This decision may be made regardless of whether there is a
substantial pattern of erroneous payments at the educational
institution. See §21.4146.

\(4\) The Director may disapprove the enrollment of all individuals not
already enrolled in an educational institution (which for the purposes
of this paragraph does not include a training establishment) when the
Director finds that the educational institution:

\(i\) Has charged or received from veterans, servicemembers, reservists,
or eligible persons an amount for tuition and fees in excess of the
amount similarly circumstanced nonveterans are required to pay for the
same course; or

\(ii\) Has instituted a policy or practice with respect to the payment
of tuition, fees, or other charges that substantially denies to
veterans, servicemembers, reservists, or eligible persons the benefits
of advance payment of educational assistance authorized to such
individuals under §§21.4138(d), 21.7140(a), and 21.7640(d); or

\(iii\) Has used erroneous, deceptive, or misleading practices as set
forth in §21.4252(h). (Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a),
3034(a), 3241(a), 3680A(d), 3684, 3685, 3689, 3690, 3696, 5301)

\(e\) *Actions that must accompany a mass suspension of educational
assistance payments or suspension of approval of enrollments and
reenrollments in a course or educational institution*.

\(1\) The Director of the VA Regional Processing Office of jurisdiction
may suspend payment of educational assistance and may suspend approval
of new enrollments and reenrollments as provided in paragraph (d) of
this section, only after:

\(i\) The Director notifies in writing the State approving agency
concerned and the educational institution of any failure to meet the
approval requirements and any violation of recordkeeping or reporting
requirements; and

\(ii\) The educational institution:

> \(A\) Refuses to take corrective action; or
>
> \(B\) Does not take corrective action within 60 days (or 90 days if
> permitted by the Director).

\(2\) Not less than 30 days before the Director acts to make a mass
suspension of payments of educational assistance and/or suspend approval
of new enrollments and reenrollments, the Director will, to the maximum
extent feasible, provide written notice to each veteran, servicemember,
reservist, and eligible person enrolled in the affected courses. The
notice will:

\(i\) State the Director's intent to suspend payments and/or suspend
approval of new enrollments and reenrollments unless the educational
institution takes corrective action;

\(ii\) Give the reasons why the Director intends to suspend payments
and/or suspend approval of new enrollments and reenrollments; and

\(iii\) State the date on which the Director intends to suspend payments
and/or suspend approval of new enrollments and reenrollments.
(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3690(b))

\(3\) If VA receives a claim for educational assistance for the taking
by an individual of a licensing or certification test, and the
individual took the licensing or certification test during a period when
payment for taking such test was suspended, the Director will inform the
individual in writing of the fact of the suspension and the reasons why
payments were suspended. (Authority: 38 U.S.C. 3689, 3690)

\(f\) *Actions in cases indicating submission of false, misleading, or
fraudulent claims or statements*. The Director of the VA Regional
Processing Office of jurisdiction will take the following action, as
indicated, that may be in addition to suspending payments or further
approval of enrollments or reenrollments in a course or educational
institution.

\(1\) If the Director has evidence indicating that an educational
institution has willfully submitted a false or misleading claim, or that
a veteran, servicemember, reservist, eligible person, or other person,
with the complicity of an educational institution, has submitted such a
claim, the Director will make a complete report of the facts of the case
to the appropriate State approving agency and to the Office of Inspector
General for appropriate action.

\(2\) If the Director believes that an educational institution has
submitted a false, fictitious, or fraudulent claim or written statement
within the meaning of the Program Fraud Civil Remedies Act (31 U.S.C.
3801-3812) or that a veteran, servicemember, reservist, eligible person,
or other person, with the complicity of an educational institution, has
submitted such a claim or made such a written statement, the Director
will follow the procedures in part 42 of this title. (Authority: 10
U.S.C. 16136(b); 31 U.S.C. 3801-3812; 38 U.S.C. 3034(a), 3241(a),
3690(d))

\(g\) *Referral to the Committee on Educational Allowances*. The
Director of the VA Regional Processing Office of jurisdiction will refer
the following matters to the Committee on Educational Allowances as
provided in §21.4212:

\(1\) A suspension under paragraph (d) of this section of payments of
educational assistance to all veterans, servicemembers, reservists, or
eligible persons already enrolled in a course;

\(2\) A disapproval under paragraph (d) of this section of all further
enrollments or reenrollments of individuals seeking VA educational
assistance for pursuit of the course (except for enrollments and
reenrollments of servicemembers seeking to be paid tuition assistance
top-up benefits to meet all or a portion of an educational institution's
charges for education or training that the military department concerned
has not covered under tuition assistance); and

\(3\) A suspension under paragraph (d) of this section of payments of
educational assistance to all veterans, servicemembers, or eligible
persons who may take a licensing or certification test after a date that
the Director has determined. (Authority: 10 U.S.C. 16136(b); 38 U.S.C.
3034(a), 3241(a), 3689, 3690)

\(h\) *Withdrawal of referral to Committee on Educational Allowances*.

\(1\) If, following a suspension of payments and/or of approval of
enrollments or reenrollments, the Director of the VA Regional Processing
Office of jurisdiction determines that the conditions which justified
the suspension have been corrected, and the State approving agency has
not withdrawn or suspended approval of the course(s) or tests, the
Director may resume payments to and/or approval of enrollments or
reenrollments of the affected veterans, servicemembers, reservists, or
eligible persons. If the case has already been referred to the Committee
on Educational Allowances under paragraph (g) of this section at the
time such action is taken, the Director will advise the Committee that
the original referral is withdrawn.

\(2\) If, following a referral to the Committee on Educational
Allowances, the Director finds that the State approving agency will
suspend or withdraw approval, the Director may, if otherwise
appropriate, advise the Committee that the original referral is
withdrawn. (Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a),
3690)

\(i\) *This section does not apply to disapproval of courses based on
conflicts of interests*. VA will disapprove courses when required by
§21.4005(d) without applying the provisions of paragraphs (a) through
(h) of this section. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3034(a),
3241, 3683(b))

\[63 FR 35831, July 1, 1998, as amended at 72 FR 16971, Apr. 5, 2007\]

**Supplement *Highlights* references**: 39(4), 73(1).