**CONTENTS**

**CHAPTER 2. THE APPROVAL PROCESS**

**SUBCHAPTER I: GENERAL**

PARAGRAPH PAGE

2.01 Purpose 2-1

**SUBCHAPTER II: APPLICATIONS TO STATE APPROVING AGENCIES**

2.02 Application Procedures 2-3

2.03 Accredited Programs 2-3

2.04 Nonaccredited Programs 2-4

2.05 Correspondence Courses 2-5

2.06 Flight Training 2-6

2.07 Apprenticeship Programs 2-7

2.08 Other On-the-Job Training Programs 2-7

**SUBCHAPTER III: APPROVAL REQUIREMENTS FOR**

**ACCREDITED AND NONACCREDITED SCHOOLS**

2.09 Approval Requirements for Accredited Schools 2-9

2.10 Approval Requirements for Nonaccredited Schools 2-10

**SUBCHAPTER IV: APPROVAL ISSUES COMMON TO ALL FACILITIES**

2.11 Effective Dates of Approval 2-12

2.12 Calendar Information 2-12

2.13 Period of Operation 2-12

2.14 Advanced Pay Certification 2-14

2.15 Assignment of Education Benefit Checks 2-14

2.16 Standards of Progress 2-15

**SUBCHAPTER V: APPROVAL NOTICES**

2.17 Notices of Approval to VA 2-18

2.18 Review of Notices of Approval 2-20

2.19 Dissemination of Approval Information 2-21

2.20 Denials, Suspensions, and Withdrawals of Approval by State
Approving Agencies 2-21

2.21 Suspensions or Discontinuances of Payments by VA 2-23

**CHAPTER 2. THE APPROVAL PROCESS**

**SUBCHAPTER I: GENERAL**

**2.01 PURPOSE**

**a. Chapter Contents.** SAAs (State Approving Agencies) must approve
programs of education and training pursued by veterans, reservists, and
eligible persons under chapters 30, 32, and 35, of title 38, U.S.C. and
chapter 1606 of title 10, U.S.C. SAAs do not approve veterans education
programs pursued by veterans under chapter 31 of title 38, U.S.C. and
Public Law 96-342, section 901. The Director, Education Service, serves
as the SAA in certain limited cases. (See chapter 5 for additional
information.) This chapter describes:

-   Application procedures for schools and job training establishments
    seeking approvals from SAAs;

-   Issues specific to accredited and nonaccredited facilities;

-   Approval issues common to all facilities, IHLs (Institutions of
    Higher Learning), NCDs (Noncollege Degree), Apprenticeships, OJTs
    (Other On-the-Job Training), Correspondence, and Flight schools;

-   Approval notices to VA from SAAs; and

-   VA review of approval notices and subsequent activities.

Following chapters address approval issues specific to different type
facilities.

**b. Programs.** To receive education benefits, veterans, reservists,
and eligible persons must enroll under one of the programs administered
by VA. These include:

\(1\) Chapter 30 - Montgomery GI Bill - Active Duty Educational
Assistance Program.

\(2\) Chapter 32 - Veterans' Education Assistance Program.

\(3\) Chapter 35 - Dependents' Educational Assistance.

\(4\) Chapter 1606 - Montgomery GI Bill - Selected Reserve Educational
Assistance Program.

\(5\) Public Law 96-342, Section 901, Educational Assistance Test
Program.

\(6\) Public Law 96-342, Section 903, Educational Assistance Pilot
Program.

\(7\) Public Law 99-399, the Omnibus Diplomatic Security and
Antiterrorism Act of 1986, and Executive Order 12598.

**c. Role of SAAs.** SAAs are responsible for the approval of programs
of education or training on behalf of VA. Reimbursement contracts
negotiated each year between VA and the individual SAAs define SAA
activities within the approval process. Chapter 1, subchapter II,
contains information on the contract and a detailed description of SAA
functions.

**SUBCHAPTER II: APPLICATIONS TO STATE APPROVING AGENCIES**

**2.02 APPLICATION PROCEDURES**

**a. General.** Title 38 U.S.C. 3672(a) and Article II of the SAA
Reimbursement Contract require schools and job training establishments
desiring approval of programs of education and training to apply to
SAAs. SAAs determine if the programs meet the approval requirements.
SAAs have their own application forms and procedures for submission of
these forms.

**b. Accredited and Nonaccredited Programs.** 38 CFR 21.4253 (accredited
programs),

38 CFR 21.4254 (nonaccredited programs), and schedule 1 of the SAA
reimbursement contract contain the requirements for approving accredited
and nonaccredited programs.

**c. Apprenticeship and Other On-the-Job Training Programs.** 38 CFR
21.4261 (apprenticeship), 38 CFR 21.4262 (other OJT), and schedule 2 of
the SAA reimbursement contract contain the requirements for approving
apprenticeship and other-on-the-job training programs.

**2.03 ACCREDITED PROGRAMS**

**a. General.** Applications for approval of accredited programs should
include at least 2 copies of the school's current catalog or bulletin.
School officials must certify the catalogs or bulletins as true and
correct in content and policy. This does not apply to programs offered
by elementary and secondary schools.

**b. Specific Requirements.** Catalogs or bulletins must include the
following:

\(1\) The school\'s progress requirements for graduation.

\(2\) A statement of the school's policies or regulations concerning
standards of progress required of all students. The policies will
define:

> \(a\) The school's grading system;

\(b\) Minimum grades considered satisfactory;

\(c\) Conditions for interruption because of unsatisfactory grades or
progress;

\(d\) Description of any probationary period;

\(e\) Conditions for reentrance of those students dismissed for
unsatisfactory progress.

\(3\) The statement should include a description of progress records
kept by the school and provided to the student.

\(4\) School policies and regulations on student conduct and conditions
for dismissal for unsatisfactory conduct.

\(5\) School policies and regulations, if any, relating to attendance.

\(6\) Information that will allow the SAA to determine that:

\(a\) The school keeps adequate records to show the progress of each
student. The records must be sufficient to show continued pursuit at the
rate for which the student enrolled and that progress is being made.
These records should include:

[1]{.underline} The final grades in each subject or unit for each term,
quarter, or semester;

[2]{.underline} Records of withdrawal from any subject or unit including
the last dates of attendance for residence courses; and

[3]{.underline} Records of re-enrollment in subjects or units from which
there was a withdrawal.

*NOTE: Though not required, these records may include attendance in
resident courses, periodic grades, and examination results.*

\(b\) The school maintains a written record of previous education and
training of the student. The records clearly show that the school has
granted appropriate credit. The school should shorten the prescribed
training period proportionately and notify both the student and VA of
this adjustment. This serves as the basic record or starting point from
which the cumulative record of progress described in the previous
paragraph begins.

\(c\) The school enforces policies concerning conduct and progress
required of the student. The policies must be specific enough to
determine the date that benefits should be discontinued. They should
include a definition of the grade or grade point average necessary for
graduation. They may include a description of possible probationary
periods.

**2.04 NONACCREDITED PROGRAMS**

**a. General.** Applications for approval of nonaccredited programs will
be accompanied by at least 2 copies of the current catalogs or
bulletins. The catalogs or bulletins must be certified by appropriate
school officials as true and correct in content and policy.

**b. Specific Requirements.** Catalogs or bulletins must include the
following:

\(1\) Identifying data such as volume number and date of publication.

\(2\) Name of the school and its governing body, officials, and faculty.

\(3\) A school calendar showing legal holidays, beginning and ending
dates of each term, quarter, or semester, and other important dates.

\(4\) School policies and regulations on enrollment with dates and
entrance requirements for each program.

\(5\) School policies and regulations concerning absences, class cuts,
leaves, make-up work, tardiness, and interruptions for unsatisfactory
attendance.

\(6\) School policies and regulations concerning standards of progress
required of all students. The policies must define the grading system,
minimum grades considered satisfactory, conditions for interruption for
unsatisfactory grades or progress, a description of the probationary
period, if any, and conditions for reentrance of students dismissed for
unsatisfactory progress. They should include a statement about progress
records kept by the school and furnished to the student.

\(7\) School policies and regulations on student conduct and conditions
for dismissal for unsatisfactory conduct.

\(8\) Detailed schedule of fees, charges for tuition, books, supplies,
tools, student activities, laboratory fees, service charges, rentals,
deposits, and all other charges.

\(9\) Policies and regulations of the school concerning the refund of
any unused portion of tuition, fees, and other charges in the event the
student does not enter the program, withdraws, or discontinues.

\(10\) Descriptions of available space, facilities, and equipment.

\(11\) A program outline for each program showing the subjects or units
in the program, the type of work or skill to be learned, and the
approximate calendar time and clock hours to be spent on each subject or
unit.

(l2) School policies and regulations on granting credit for previous
educational training.

**2.05 CORRESPONDENCE COURSES**

**a. General.** The application items cited in subparagraphs 2.03 above
apply to accredited correspondence schools.

**b. Specific Requirements**

\(1\) Correspondence schools must include a certification that at least
50 percent of the students pursuing a correspondence program or the
correspondence portion of a combined correspondence--residence course
require more than 6 months to complete it. The period covered by the
certification must be the 6 months immediately preceding the request for
approval of the program or course.

\(2\) A correspondence program may consist of a single course. Or, a
program may be a series of correspondence courses if the school can show
that students normally pursue a series of courses sequentially leading
to a single objective. All the courses may be combined to determine if
the 6 months completion time requirement is met. For example, Courses A,
B, and C are normally taken sequentially. The school's records show that
50 percent of the students completing course A required 3 month to
complete, 50 percent of the students completing course B required 1
month, and 50 percent of the students completing course C required 2
months. All the courses may be approved as part of the program because
50 percent of the students completing the whole program required 6
months.

**c. Combination Correspondence--Residence Programs**

\(1\) SAAs may approved combined programs if the correspondence and
residence portions are pursued sequentially and the credit earned during
the correspondence portion does not exceed the maximum hours required
for the completion of the program.

\(2\) SAAs may not combine correspondence--resident courses into
programs. However, SAAs may combine the correspondence and residence
portions when computing the 6 month completion requirement.

**2.06 FLIGHT TRAINING**

**a. General.** The application items cited in subparagraphs 2.03 or
2.04 above apply to either accredited or nonaccredited flight schools.

**b. Specific Requirements.** Flight schools must meet one of the
following sets of requirements:

\(1\) The FAA (Federal Aviation Administration) has issued a pilot
school certificate or a provisional pilot school certificate specifying
each course that the school is approved to offer under

14 CFR Part 141.

\(2\) A flight school may be approved by the FAA to offer flight
engineer courses under 14 CFR Part 63.

\(3\) The school is a flight training center or an air carrier that does
not have a pilot school certificate or a provisional pilot school
certificate issued by the FAA under 14 CFR Part 141. The school desiring
to offer pilot training by flight simulator or flight training device
for more hours than allowed by 14 CFR Part 141 had to have a grant of
exemption issued by the FAA under 14 CFR Part 61. Effective August 3,
1998, a flight training center must have a training center certificate
and training specification document issued by the FAA under 14 CFR Part
142. The FAA allows a flight school with a grant of exemption issued
under part 61 to continue to offer training until the grant expires.
When the grant expires, the school will be required to apply for
approval under 14 CFR Part 142.

**2.07 APPRENTICESHIP PROGRAMS**

**a. General.** SAAs should require separate applications for each
program of training requested by a sponsor.

**b. Specific Requirements.** Applications should contain:

\(1\) Titles and descriptions of the specific job objectives for which
training is pursued.

\(2\) Length of training periods.

\(3\) Schedules listing various operations for major kinds of work or
tasks to be learned. The schedules should include detailed listings of
the components, operations, or tasks that comprise the total job
description. Each description should include the amount of time required
to gain mastery to the journeyman level.

\(4\) Number of hours of supplemental instruction required.

\(5\) Any additional information required by the SAA.

**2.08 OTHER-ON-THE-JOB TRAINING PROGRAMS**

**a. General.** SAAs should require separate applications for each
program of training requested by an employer.

**b. Specific Requirements.** Applications should contain:

\(1\) Titles and descriptions of the specific job objectives for which
training is pursued.

\(2\) Length of training periods.

\(3\) Schedules listing various operations for major kinds of work or
tasks to be learned. The schedules should include a detailed listing of
the components, operations, or tasks that comprise the total job
description. Each description should include the amount of time required
to gain mastery to the entry level.

\(4\) Number of hours of supplemental instruction required.

\(5\) Entrance wages or salary paid by the establishment to other entry
level employees in the same work objective for which the training is
pursued.

\(6\) A certification that the trainee\'s wages upon entrance into
training are not less than wages paid to non-veteran trainees in the
same position. The wages must be at least 50 percent of the wages paid
to a fully trained worker in the same position. The wages must increase
in regular periodic increments (or steps) until, not later than the last
full month of the scheduled training period, they must be at least 85
percent of the wages paid to a fully trained worker in the same
position.

*NOTE: Public Law 105-368, the Veterans Programs Enhancement Act of
1998, amended the trainee wage requirements effective October 1, 1998.
The requirement that wages must increase in regular periodic increments
(or steps) until reaching 85 percent in the last full month of training
does [not]{.underline} apply to programs offered by Federal, state, and
local \[governments.\]*

\(7\) A certification that there is reasonable certainty the job for
which training is pursued will be available at the end of the training.

\(8\) Any additional information required by the SAA.

**SUBCHAPTER III: APPROVAL REQUIREMENTS FOR**

**ACCREDITED AND NONACCREDITED SCHOOLS**

**2.09 APPROVAL REQUIREMENTS FOR ACCREDITED SCHOOLS**

**a. Accreditation.** To be approved as accredited, schools must meet
one of the following criteria:

\(1\) Programs must be accredited by nationally recognized accrediting
agencies. A "nationally recognized accrediting agency" is one recognized
as such by the Department of Education and listed in the \"Nationally
Recognized Accrediting Agencies, Criteria and Procedures for Listing by
the US Secretary of Education and Current List.\"

*Note 1: Schools may be approved to offer both accredited and
nonaccredited programs.*

*Note 2: Holding candidate for accreditation status (or its equivalent)
is not a basis for approval as accredited.*

\(2\) The program is recognized by a State department of education as
applicable to or required for the attainment of a high school diploma.

\(3\) The program is offered by a public vocational school operating
under the provisions of the Smith-Hughes Vocational Education Act.

\(a\) The provisions of this Act are covered in 20 U.S.C. 11-28
(Vocational Education). By relying on the states to operate these
programs under state control and state supervision with federal
oversight, Congress ensured that the state supervises these programs to
a degree similar to that provided by regional and national accrediting
agencies. VA considers programs conducted under these provisions to be
accredited programs for VA purposes.

\(b\) To confirm that schools are operating in accordance with the
Smith-Hughes Vocational Education Act, SAAs must provide certifications
from the state that they control and supervise the programs. States must
certify that the school\'s funding is specifically designated for adult
vocational education programs. General statements that some or all of
the funds used to operate the programs come from funds allocated under
these sections are not sufficient.

\(4\) The program is recognized by a State department of education for a
teacher\'s certificate or a teacher\'s degree.

**b. Approval Criteria Added by Public Law 104-275, Effective October 9,
1996.** In addition to the requirements contained in paragraph 2.03,
SAAs may approve applications from accredited schools if they determine
that the requested programs meet the criteria in 38 U.S.C. 3676(b)(6)
and (7).

\(1\) Programs, curriculums, and instruction are consistent in quality,
content, and length with similar programs in public schools and other
private schools in the state, with recognized accepted standards.

\(2\) Schools have adequate space, equipment, instructional materials,
and instructor personnel to provide good quality training.

\(3\) Educational and experience qualifications of staff and instructors
are adequate.

**c. SAA Requirements.** SAAs must apply the approval requirements of
nonaccredited schools, 38 U.S.C. 3676(b)(6) and (7), to accredited
schools and may apply any or all of the other provisions of section 3676
to accredited schools.

**2.10 APPROVAL REQUIREMENTS FOR NONACCREDITED SCHOOLS**

**a. General.** The approval requirements of nonaccredited schools are
in 38 U.S.C. 3676 and

38 CFR 21.4254. Nonaccredited programs are those programs not
specifically accredited by nationally recognized accrediting agencies.

**b. Application.** Nonaccredited schools must apply to SAAs for
approval as described in paragraph 2.02a and c.

**c. Approval Criteria.** SAAs may approve applications from
nonaccredited schools when they determine that the requested programs
meet the following criteria:

\(1\) Programs, curriculum, and instruction are consistent in quality,
content, and length with similar programs in public schools and other
private schools in the state, with recognized and accepted standards.

\(2\) Schools have adequate space, equipment, instructional materials,
and instructor personnel to provide training of good quality.

\(3\) Educational and experience qualifications of staff and instructors
are adequate.

\(4\) Schools maintain written records of previous education and
training of students. The records are utilized to determine that
appropriate credit is given for the program being pursued. The approved
length of the program is shortened in proportion to the amount of prior
credit allowed. The schools must notify students and VA of the credit
allowed and time required to complete the program.

\(5\) Copies of the program outlines, schedules of tuition, fees, and
other charges are given to students. Copies of regulations pertaining to
absences, grading policies, and rules of operation are given students.

\(6\) Upon completion of the training, students are given certificates
by the schools indicating the approved program and that training was
satisfactorily completed.

\(7\) Adequate records as prescribed by SAAs are kept to show attendance
and progress or grades, and satisfactory standards relating to
attendance, progress, and conduct are enforced.

\(8\) Schools comply with all local, city, county, municipal, state and
federal requirements, such as fire codes, building, and sanitation
codes.

\(9\) Schools are financially sound and capable of fulfilling their
commitments for training.

\(10\) Schools do not utilize advertising of any type that is erroneous
or misleading. SAAs must ascertain from the Federal Trade Commission if
the Commission has issued an order to the schools to cease and desist
from any practices or acts. If an order has been issued, the school must
show evidence that they have acted or reacted appropriately.

\(11\) Schools do not exceed their enrollment limitations as defined by
SAAs.

\(12\) Schools comply with one of the following requirements:

\(a\) Maintain policies for the pro rata refund of any unused portion of
tuition, fees, and other charges, if students fail to enter the program
or withdraw or are discontinued before completion. Paragraph 3.15
contains additional detailed information on the pro rata refund
policies.

\(b\) Obtain a waiver of this requirement.

\(13\) SAAs may establish other reasonable approval criteria in addition
to these requirements as they deem appropriate.

**SUBCHAPTER IV: APPROVAL ISSUES COMMON TO ALL FACILITIES**

**2.11 EFFECTIVE DATES OF APPROVAL**

SAAs should make approvals effective on the date that the school met all
approval requirements for the program being approved. VA may not
authorize benefits for VA students for any period more than one year
before the date of receipt by VA of the notice of approval. The
effective date in OLAF (On-Line Approval File) will be the effective
date of the approval or one year before the date VA received the notice
of approval, whichever is later.

**2.12 CALENDAR INFORMATION**

**a. General.** Original and revised approvals submitted by SAAs must
contain current catalogs or bulletins. (See par. 2.03a and 2.04a.)
School calendars are critical to proper benefit award procedures. They
include beginning, ending, and drop dates. Calendars help identify
accelerated and other non-standard terms.

**b. OLAF Input.** If SAAs fail to provide current calendars, ELRs
(Education Liaison Representatives) will obtain the information
necessary to update the OLAF records before the beginning of the
academic year.

**2.13 PERIOD OF OPERATION**

**a. Background.** For a course to be approved, provisions of the
"2‑year rule" must be satisfied. The legal basis for this rule is 38
U.S.C. 3689 and 38 CFR 21.4251. Generally, courses must be in operation
continuously for 2 years before SAAs may approve them. Public Law
104-275 completely revised the former 2-year rule.

**b. Courses and Educational Institutions Subject to the 2-Year Rule.**
The 2‑year rule only applies to courses that do not lead to a standard
college degree. It only applies to courses offered by private profit and
private non-profit institutions.

**c. Provisions**

\(1\) Courses Not Leading to a Standard College Degree at a Private
School. Courses of this type may not be approved if:

\(a\) The educational institution has been operating for less than 2
years; or

\(b\) The course is offered at a branch of the educational institution
and the branch has been operating for less than 2 years; or

\(c\) Following a change of ownership or a complete move outside its
original general locality, the educational institution has been in
operation for less than 2 years unless the institution retained
substantially the same faculty, student body, and courses as before the
change in ownership or the move outside the general locality.

\(2\) Courses Contracted Out. Any course that is contracted out must be
separately approved by the SAA and the provisions of subparagraph (1)
above must be met.

\(3\) Courses Near Military Facilities. Regardless of the provisions of
subparagraphs (1) and (2) above, a course may be approved if it is
offered by an educational institution under contract with the Department
of Defense or the Department of Transportation and is given on or
immediately adjacent to a military base, Coast Guard station, National
Guard facility, or Selected Reserve facility.

*NOTE: If the course is offered by a contractor on or immediately
adjacent to a military base or other facility listed in subparagraph (3)
above, either the contractor or the parent institution may obtain
approval for the course. There is no requirement for the contractor to
obtain a separate approval for the course as there would be if the
course were offered outside of a military or other base.*

**d. Definitions**

\(1\) Proprietary Educational Institution. An institution that is not a
public institution, but is in a State and is legally authorized to offer
programs of education in the State where the institution is physically
located.

\(2\) Continuity of Operation for 2 Years. A course is considered to
have been in operation for at least 2 years if it has been offered for
24 consecutive months, including normal vacation periods or holidays or
periods the educational institution was closed due to a natural
disaster.

\(3\) General Locality. To be within the same general locality as an
educational institution's main campus or its original location, a site
must be within normal commuting distance. Normal commuting distance is
generally defined as 55 miles.

*NOTE: The determination of "normal commuting distance" lends itself to
arbitrary or subjective interpretations. Because of this, ELRs must
employ a degree of reasonable judgment on a case by case basis. "Normal
commuting distance" is the area from which an educational institution
draws students. Educational institutions may submit evidence to
establish that a distance greater than 55 miles is appropriate. For
example, if the educational institution's records showed that at least
20 students or 5 percent of its student body, whichever is less, were
regularly commuting from the area in question, the new site is within
normal commuting distance. SAAs should consider all available evidence
in determining whether a new site is or is not within "normal commuting
distance." (See 38 CFR 21.4200(m).)*

\(4\) Change of Ownership. A change occurs when a person acquires or
ceases to have control of an educational institution and its educational
activities. Control includes the authority to direct the management or
establish the policies of the institution. A person can be either a
legal person (i.e., a corporation), or an individual or individuals. The
transactions involved in a possible change in ownership include the sale
of the institution, the transfer of the controlling interest of the
educational institution or its parent corporation, the merger of 2 or
more educational institutions, or the division of an educational
institution into 2 or more institutions.

\(5\) Maintaining the Same Faculty, Student Body, and Courses. The
faculty members who taught the majority of the institution's courses
before the move or change in ownership continue to teach the courses.
The methods of instructions used before the move or change in ownership
continue to be used. The courses offered before the move or change in
ownership continue to be offered [and]{.underline} lead to the same
educational objective. The majority of the students enrolled at the
institution before the move or change in ownership continue to be
enrolled.

**2.14 ADVANCED PAY CERTIFICATION**

**a. ELR Actions.** ELRs are responsible for advising Adjudication
activities if schools have agreed to receive, safe guard, and deliver
advance pay checks. This is done with OLAF. There are several acceptable
means by which ELRs may ascertain the wishes of schools in this regard.

\(1\) Written requests in approval folders, regardless of age, are still
acceptable if the schools have continued to fulfill their
responsibilities regarding advance pay checks.

\(2\) If there is no existing documentation in the approval folders,
ELRs should contact the schools to determine their agreement. These
contacts may be either in writing, in face to face meetings, or by
telephone calls. The school's written response should be included in the
approval folder. If the school's response is received in conversation,
this should be documented via VA Form 119, Report of Contact, and
included in the approval folder.

\(3\) Schools may initiate requests either in written communications or
verbal contacts. Again, the school's request, if on school stationery or
documentation (VA Form 119) of a conversation, should be included in the
approval folder.

**b. Change of Status.** Any time there is a change to the school's
position in regard to advance pay, ELRs should immediately update OLAF
records to reflect the change.

**2.15 ASSIGNMENT OF EDUCATION BENEFITS CHECKS**

**a. Power of Attorney.** Title 38 U.S.C. 5301(a) prohibits the
assignment of educational assistance checks to any person or entity. VA
students may not execute a power of attorney agreement authorizing
anyone to negotiate VA educational benefit checks. In this regard, to
attain and maintain approval all schools must sign the following
statement:

> I certify that this institution does not have a power of attorney to
> negotiate Department of Veterans Affairs educational benefit checks.
> The institution does not use coercive procedures or practices to limit
> a veteran or other eligible person\'s disposition of the proceeds of a
> Department of Veterans Affairs check. Checks are not stamped \"For
> Deposit Only\" to the institution\'s account for endorsement by
> students. The institution does not have joint bank accounts with any
> students receiving educational benefits."

**b. Indirect Access.** Schools may not have indirect access to the
proceeds of VA checks. Indirect access is any device, coercive or
otherwise, that schools use to limit or predetermine a VA student\'s
control of the proceeds of VA checks. This would constitute an
assignment of benefits.

\(1\) An example of such indirect access is the practice of a school
receiving a check, stamping it on the reverse \"For Deposit Only\" to
the school\'s account, and then calling in the student to endorse the
check. This procedure controls the student\'s check. It is prohibited,
therefore, because it is an assignment of benefits. Another example of
indirect access is the inclusion of a bank account number in the
student\'s mailing address.

\(2\) A veteran, reservist, or eligible person may endorse an
educational assistance check payable to a school to satisfy a debt.
However, the action must be entirely voluntary.

\(3\) VA students may have their checks mailed to the school, if schools
sign the statement. Schools may require students to have their checks
mailed to the school as a condition of deferral of payment of tuition
and fees. VA students must be able to negotiate their checks without
delay and without condition. Schools cannot withhold checks if they are
otherwise due and payable. Schools must give students their checks
without delay.

**2.16 STANDARDS OF PROGRESS**

**a. General.** Schools must have and enforce adequate standards of
progress. Schools must report termination of attendance when a student
fails to maintain satisfactory progress in terms of the school's own
approved and published academic standards.

\(1\) A school's academic standards should clearly define when and under
what conditions a lack of progress results in suspension or dismissal.

\(2\) These standards should not allow an indefinite probationary period
without improvement.

\(3\) If a school\'s overall standards do not meet the requirements for
VA approval, school officials may establish a different standard
specifically for VA students. These standards will be used for reporting
unsatisfactory progress to VA.

\(4\) All standards must be in the school catalog or other appropriate
documentation and define the following:

\(a\) The school\'s grading system.

\(b\) The minimum satisfactory grade level.

\(c\) The grade level required for graduation.

\(d\) The specific point at which progress is unsatisfactory and a
student is subject to suspension or dismissal.

\(e\) The probationary period, if any. Standards that allow a student to
remain in a probationary status for more than 2 consecutive terms
without defined improvement in academic standing do not meet minimum
approval requirements.

\(f\) Conditions for dismissal due to unsatisfactory conduct.

\(g\) Conditions for a student\'s reentrance following dismissal or
suspension for either unsatisfactory progress or conduct.

**b. Appeals of Suspensions.** Schools may allow students to appeal
suspensions to academic deans or academic review committees. A school
may allow a student to remain enrolled after a successful appeal of an
academic suspension. This does not in and of itself make the standards
unacceptable. Such an appellate process must be equally available to all
students. In these cases the school must:

\(1\) Report that the student was subject to suspension but allowed to
remain enrolled by appeal.

\(2\) Annotate the suspension on the student\'s transcript or other
permanent record.

\(3\) Send a VA Form 22-1999b, Notice of Change in Student Status,
terminating the student effective the last day of the term in which
progress was unsatisfactory.

\(4\) Attach a VA Form 22-1999, Enrollment Certification, with
re-enrollment data.

\(a\) If the student re-enrolls in a program other than the one from
which he or she was just terminated because of unsatisfactory progress,
the school should include a statement on the enrollment certification
that describes the conditions for the student\'s continued enrollment.
The statement must describe the minimum performance standards the
student must achieve during a specified period of enrollment. For
example, a student must have a 1.4 grade point average by the end of the
first quarter, a 1.7 grade point average by the end of the second
quarter, etc.

\(b\) If the student re-enrolls in the same program from which he or she
was just terminated because of unsatisfactory progress, the school does
not have to submit a statement of conditions for continued enrollment.

**c. Progress Records.** All schools must maintain progress records that
clearly show the point at which the students are in their course in
terms of satisfactory completion.

\(1\) Courses organized on a term basis must have records which show the
subjects taken each term and the grade assigned at the end of the term.

\(2\) For courses not organized on a term basis, the school must
establish standards that define a minimum proficiency level necessary
for successful completion at given periods of time. The school must
establish specific points within the course for evaluation of a
student\'s progress toward completion.

**d. NCD Courses.** Standards of progress are as important for NCD
courses as for IHL courses. Students in NCD courses who are doing poorly
and who must repeat courses or portions of courses can receive benefits
beyond the approved length of the course. The school must report
unsatisfactory progress to the RPO (Regional Processing Office). (38 CFR
21.4203(h).)

**SUBCHAPTER V: APPROVAL NOTICES**

**2.17 NOTICES OF APPROVAL TO VA**

**a. IHL and NCD Programs.** After determining that programs meet
approval requirements, SAAs will notify schools by letter and send
copies of the letter and any attachments to the ELR of jurisdiction. The
letter or attachments to the letter will contain the following
information:

\(1\) Date of letter and effective date of approval.

\(2\) Complete name and address of the school.

\(3\) A copy of the school\'s application.

\(4\) A certified copy of the school\'s catalog or other appropriate
publications. SAAs will furnish VA with all subsequent catalogs or
bulletins with a cover letter which lists or otherwise cites the
program(s) and type of instruction approved by the state. It should also
include program requirements or a citation of the unit subjects accepted
and required for the certificate, degree, or diploma.

\(5\) Authority for approval (e.g., 38 U.S.C. 3675) and conditions of
approval referring specifically to an approved catalog or bulletin
published by the school.

\(6\) A signed copy of VA Form 27-8206, Statement of Assurance of
Compliance with Equal Opportunity Laws, if appropriate. The form is
required for approvals of private vocational schools, apprenticeships,
and other OJT programs. It is not required for programs offered by
accredited IHLs, public school systems including local education
agencies and American Indian tribes, medical facilities,
apprenticeships, or OJT programs offered by federal departments or
agencies, and apprenticeship programs registered with the Bureau of
Apprenticeship and Training, U.S. Department of Labor.

*NOTE: The form is secured at the time of the original approval and does
not have to be obtained again when there is a change of certifying
official, ownership, or any other change.*

\(7\) The name of each approved program and the type of instruction
offered. (For IHLs, SAAs may identify programs by reference to the page
numbers in the school catalog. SAAs may attach a list of approved
programs to the approval letter.)

\(8\) For nonaccredited programs, the enrollment limitations such as
maximum numbers authorized or student-teacher ratio.

\(9\) A statement certifying that the school does not utilize
advertising, sales, or enrollment practices of any type which are
erroneous, deceptive, or misleading either by actual statement,
omission, or intimation.

*NOTE: The statement should be based on examination of such materials as
any direct mail pieces, brochures, printed literature used by sales
personnel, films, video tapes, and audio tapes disseminated through
broadcast media, material disseminated through print media, tear sheets,
leaflets, handbills, fliers, and any sales or recruitment manuals used
to instruct sales personnel, agents or representatives of the school.*

\(10\) The date when all documentation necessary to support the notice
of approval is received.

\(11\) For NCD programs, the approved full time class schedules.

*NOTE: It is not necessary to provide part time class schedules.*

\(12\) A VA Form 22-8794, Designation of Certifying Official(s).

*NOTE: After VA receives an original VA Form 22-8794, it is not
necessary for SAAs to obtain another form when the certifying officials
change.*

\(13\) A completed and signed copy of VA Form 22-1919, Conflicting
Interests Certification for Proprietary Schools.

*NOTE: This is required for original approvals and changes in
proprietary status or ownership.*

\(14\) The signature of the SAA official.

\(15\) Any other fair and reasonable provisions considered necessary by
the SAA.

**b. Apprenticeship and Other-OJT Programs.** After determining that a
job training program meets approval requirements, SAAs will notify the
training establishment by letter and send copies of the letter and any
attachments to the ELR of jurisdiction. The letter or attachments to the
letter will contain at least the following information:

\(1\) Date of letter and effective date of approval.

\(2\) The complete name and address of the training establishment.

\(3\) The authority for approval (e.g., 38 U.S.C. 3675) and conditions
of approval.

\(4\) A copy of the application for approval.

\(5\) The name of each approved program.

\(6\) A statement of the trainer to trainee ratios.

\(7\) A copy of the training agreement.

\(8\) A copy of the wage schedule.

\(9\) A VA Form 22-8794, Designation of Certifying Official(s).

*NOTE: After VA receives an original VA Form 22-8794, it is not
necessary for SAAs to obtain another form when the certifying officials
change.*

\(10\) The signature of responsible SAA official.

\(11\) Any other fair and reasonable provisions considered necessary by
the SAA.

**2.18 REVIEW OF NOTICES OF APPROVAL**

**a. Date Stamping.** Notices of approval will be stamped with the date
received so that it is clear what was received with the notice of
approval. In some cases this may include only the first and last pages
of a package. When there are multiple parts to a notice of approval such
as SAA letter, school catalog, etc., each separate part should be date
stamped.

**b. Review.** ELRs or other ESU (Education Services Unit) employees
will review the notices of approval for completeness. If approvals do
not contain the requirements of title 38 and the contract, ELRs will
hold the approvals in suspense and advise the SAAs of the deficiencies
by letters. Minor deficiencies may be referred by telephone and
documented on VA Form 119.

**c. End Product.** If it is necessary to clarify an approval, annotate
the EPC (End Product Code) on the lower section of the copy of the
letter to the SAA or VA Form 119. See chapter 9, subchapter I, for
additional information on end products.

**d. Original School Approvals Only.** When a school is initially
approved and the notice of approval is complete or any deficiencies have
been addressed and resolved, the ELR will complete VA Form 22-8336,
Check List for Review of Approval of Schools. Completion of this form to
include the ELR's signature and date of signature will serve to document
that the ELR has reviewed the approval. The ELR should annotate the EPC
on the lower right section of the last page of VA Form 22-8336.

**e. Records.** ELRs will assign facility codes and establish OLAF
records.

**f. Revised Approvals.** For other than original approvals:

\(1\) If it is not necessary to modify the OLAF record or clarify the
approval, annotate the EPC on the lower right section of the approval
document.

\(2\) If clarification is required on a revised approval, annotate the
EPC in the lower right section of the folder copy of the letter to the
SAA or VA Form 119.

**2.19 DISSEMINATION OF APPROVAL INFORMATION**

**a. General.** Approval information is disseminated to the RO (Regional
Office) and RPO by OLAF. It is recommended that ROs provide inquiry
access to OLAF to Adjudication, Finance, Veterans Services, and
Vocational Rehabilitation and Counseling employees. Update capability
must be limited to ELRs and other ESU employees.

**b. OLAF Records.** Chapter 6 contains the procedures for maintaining
approval information in OLAF.

**c. VA Form 22-1998 Series.** OLAF can generate the appropriate VA
Forms 22-1998, Approval Information, which ELRs must sign and file on
the left side of approval files.

**d. SAA Copies.** Copies of VA Forms 22-1998 generated by OLAF may be
provided to the appropriate SAA.

**2.20 DENIALS, SUSPENSIONS, AND WITHDRAWALS OF APPROVAL BY STATE
APPROVING AGENCIES**

**a. Denials of Approval.** SAAs will notify ELRs when they deny
applications for approval. The notices will include the following
information:

\(1\) The name and address of the school or job training establishment.

\(2\) The program(s) for which approval was requested.

\(3\) The reason for denial.

**b. Suspensions of Approval.** SAAs may suspend the approvals of
programs for new enrollments or reenrollments, if approval requirements
are not being met. SAAs may allow schools or job training establishments
a maximum of sixty (60) days to correct the deficiencies for the purpose
of having the suspension of approval lifted.

**c. Withdrawals of Approval.** SAAs will withdraw the approvals of
programs if approval requirements are not being met and schools or job
training establishments cannot correct the deficiencies within 60 days.

**d. Notifications to Facilities.** When an SAA suspends or withdraws an
approval, they will notify the school or job training establishment by a
certified or registered letter. The SAA must secure a return receipt.
When an SAA withdraws an approval because of inactivity or the facility
is no longer in business, they do not have to send a certified or
registered letter.

**e. Notification to ELR.** SAAs will immediately notify the ELR of
jurisdiction of the withdrawal or suspension of approvals. The
notification will be in writing and contain the following information:

\(1\) The name and address of school or job training establishment.

\(2\) The name(s) of the program(s) being withdrawn or suspended.

\(3\) Effective date of withdrawal or suspension.

\(4\) The reason(s) for withdrawing or suspending the approval.

**f. Notifications to RPOs.** On the basis of the nature of the actions
reported by SAAs, ELRs will take the following actions:

\(1\) [Withdrawal of All Programs]{.underline}. Enter \"Approval
Withdrawn Effective [(Date)]{.underline}, Notice Received
[(Date)]{.underline}\" in the remarks field for the facility. Change the
applicable law code to 0 (zero) (not approved). Delete the OLAF record
90 days after the date of receipt of the withdrawal notice.

\(2\) [Suspension of All Programs]{.underline}. Enter \"Approval
Suspended Effective [(Date)]{.underline}.\" in the remarks field for the
facility and show if new enrollments or all enrollments are affected.

\(3\) [Withdrawal of Some Programs]{.underline}. Enter \"Withdrawn
Effective [(Date)]{.underline}, Notice Received [(Date]{.underline})" in
the remarks field for the particular programs[.]{.underline}

\(4\) [Suspension of Some Programs]{.underline}. In the remarks field,
enter \"Suspended Effective [(Date)]{.underline}\" in the remarks fields
for the particular programs and show if new enrollments or all
enrollments are affected.

**g. Lists of Affected Students**

\(1\) ELRs will immediately identify whether or not students are
receiving benefits for the affected programs and send an e-mail to the
CELO ((Chief Education Liaison Officer) for referral to the Adjudication
Division to identify as many active students as possible.

\(2\) ELRs will contact the school by telephone or personally to obtain
a list of the names and claim numbers of all affected students.

\(3\) The last compliance survey will be reviewed to identify any
running awards.

\(4\) The COIN EDU 289, Compliance Survey Listing, report of active
students, will be reviewed to identify affected students.

\(5\) If chapter 30 and 32 students are being paid \"out-of-system,\"
the ELRs will request the CELO to contact the Finance activity for a
list of the students.

\(6\) If chapter 1606 students are being paid \"out-of-system\" by the
St. Louis RPO, the ELRs will request the St. Louis CELO to contact the
Finance activity for a list of students.

**2.21 SUSPENSIONS OR DISCONTINUANCES OF PAYMENTS BY VA**

**a. VA Rationale.** VA may suspend or discontinue payments of education
benefits when a school or job training establishment fails to correct
reporting requirement errors or if the SAA fails to correct approval
criteria deficiencies.

**b. Committee on Educational Allowances.** VA may suspend or
discontinue payments of education benefits through the Committee on
Educational Allowances. See part I, chapter 8 for details.