Custom Federal Regulations Service™

**This is supplemental material**

**for Book G of your set of**

**Federal Regulations**

Title 38, Part 21

*Vocational Rehabilitation and Education*

**Veterans Benefits Administration**

Supplement No. 71

Covering period of *Federal Register* issues

through December 19, 2006

Copyright © 2006 Jonathan Publishing

**Need Assistance?**

Questions concerning **[missing supplements]{.smallcaps}**, need for
**[additional books]{.smallcaps}**, and other **[distribution
list]{.smallcaps}** issues for this loose-leaf service should be
directed to:

Department of Veterans Affairs

Veterans Benefits Administration

Administration

Mail Code: 20M33

810 Vermont Avenue, N.W.

Washington DC 20420

Telephone: 202/273-7588

Fax: 202/275-5947

E-mail: coarms@vba.va.gov

Questions concerning the **[filing instructions]{.smallcaps}** for this
loose-leaf service,

or the reporting of **[substantive errors]{.smallcaps}** in the text,

may be directed to:

Jonathan Publishing

855 Yorks Crossing

Driftwood TX 78619

Telephone: 512/858-1225

Fax: 512/858-1230

E-mail: jonpub@austin.rr.com

Copyright © 2006 Jonathan Publishing

> **GENERAL INSTRUCTIONS**

Custom Federal Regulations Service™

**Supplemental Materials for *Book G***

**Code of Federal Regulations**

**Title 38, Part 21**

***Vocational Rehabilitation and Education***

**Veterans Benefits Administration**

**Supplement No. 71**

25 December 2006

Covering the period of Federal Register issues

through December 19, 2006

When **Book G** was originally prepared, it was current through final
regulations published in the *Federal Register* of 25 February 1992.
These supple­mental materials are designed to keep your regulations up to
date. You should file the attached pages immediately, and record the
fact that you did so on the *Supplement Filing Record* which is at page
G-8 of Book G, *Vocational Rehabilitation and Education*.

> **To ensure accuracy and timeliness of your materials,**
>
> **it is important that you follow these simple procedures:**
>
> 1\. Always file your supplemental materials immediately upon receipt.
>
> 2\. Before filing, always check the Supplement Filing Record (page
> G-8) to be sure that all prior supplements have been filed. If you are
> missing any supple­ments, contact the Veterans Benefits Administration
> at the address listed on page G-2.
>
> 3\. After filing, enter the relevant information on the Supplement
> Filing Record sheet (page G-8)---the date filed, name/initials of
> filer, and date through which the *Federal Register* is covered.
>
> 4\. If as a result of a failure to file, or an undelivered supplement,
> you have more than one supplement to file at a time, be certain to
> file them in chronological order, lower number first.
>
> 5\. Always retain the filing instructions (simply insert them at the
> back of the book) as a backup record of filing and for reference in
> case of a filing error.
>
> 6\. Be certain that you *permanently discard* any pages indicated for
> removal in the filing instructions in order to avoid confusion later.

To execute the filing instructions, simply remove *and throw away* the
pages listed under *Remove These Old Pages,* and replace them in each
case with the corres­pond­ing pages from this supplement listed under *Add
These New Pages*. Occasionally new pages will be added without removal
of any old material (reflecting new regulations), and occasionally old
pages will be removed with­out addition of any new material (reflecting
rescinded regulations)---in these cases the word *None* will appear in
the appropriate column.

> **FILING INSTRUCTIONS**

**Book G, Supplement No. 71**

**December 25, 2006**

*Remove these Add these Section(s)*

*[old pages]{.underline} [new pages]{.underline} [Affected]{.underline}*

**Do not file this supplement until you confirm that all prior
supplements have been filed**

**G-1 to G-2 G-1 to G-2 Cover page**

**G-27 to G-28 G-27 to G-28 Index**

#  G-43 to G-44 G-43 to G-44 Index

#  

21.7020-3 to 21.7020-4 21.7020-3 to 21.7020-4 §21.7020

21.7020-11 to 21.7020-12 21.7020-11 to 21.7020-12 §21.7020

21.7050-4 to 21.7051-1 21.7050-4 to 21.7051-1 §21.7050

21.7076-4 to 21.7100-1 21.7076-4 to 21.7100-1 §21.7080 (new)

21.7131-4 to 21.7139-4 21.7131-4 to 21.7139-4 §§21.7131 and

21.7135--21.7139

**Be sure to complete the**

***Supplement Filing Record* (page G-8)**

**when you have finished filing this material.**

> **HIGHLIGHTS**

**Book G, Supplement No. 71**

**December 25, 2006**

***Supplement* Highlights *references***: Where substantive changes are
made in the text of regulations, the paragraphs of *Highlights* sections
are cited at the end of the relevant section of text. Thus, if you are
reading §3.263, you will see a note at the end of that section which
reads: "Supplement *Highlights* references---6(2)." This means that
paragraph 2 of the *Highlights* section in Supplement No. 6 contains
information about the changes made in §3.263. By keeping and filing the
*Highlights* sections, you will have a reference source explaining all
substantive changes in the text of the regulations.

***Supplement frequency***: This Book G (*Rehabilitation and Education*)
was originally supplemented six times a year, in February, April, June,
August, October, and December. Beginning 1 August 1995, supplements will
be issued *every month* during which a final rule addition or
modification is made to the parts of Title 38 covered by this book.
Supplements will be numbered consecutively as issued.

**Modifications in this supplement include the following:**

1\. *Note*: Contact information for the VBA and Jonathan Publishing has
been revised. The updated data appears on page G-2 (back of the *Cover
Page*), provided with this supplement. If you have transferred this
information to an e-mail address book or paper record, please make the
changes in those locations.

2\. On 18 December 2006, the VA published a final rule, effective that
same date, to authorize the Department of Defense to offer individuals
in the Armed Forces, who have critical military skills, the option to
transfer up to 18 months of their MGIB entitlement to their dependents
as a reenlistment incentive; and implement a provision in the Strom
Thurmond National Defense Authorization Act for Fiscal Year 1999, which
increased the maximum amount of benefits payable under DoD's college
fund program. Changes:

• In §21.7020, revised paragraph (b)(9)(i) and added new paragraphs
(b)(58)--(59);

• In §21.7050, added new paragraphs (h) and (i);

• Added a new §21.7080;

• In §21.7131, revised paragraph (h) introductory text, and added new
paragraphs (r) and (s);

• In §21.7135, revised paragraphs (a)(2), (p)(1), and (r), and added new
paragraphs (dd)--(ii);

• In §21.7136, revised paragraphs (d)(1) and (d)(2) introductory texts;
redesignated paragraphs (d)(3), (d)(4), (d)(5), and (d)(6) as paragraphs
(d)(4), (d)(5), (d)(7), and (d)(8), respectively; added new paragraphs
(d)(3) and (d)(6); revised newly designated paragraph (d)(5)
introductory text; revised paragraphs (e)(1) and (e)(2); revised
paragraphs (g)(1) introductory text, (g)(1)(i) and (g)(2)(ii); and
revised paragraphs (h)(1) introductory text, (h)(2)(i) through (iii),
and (h)(3);

• In §21.7137, revised paragraph (b) introductory text and paragraph
(b)(2); revised paragraph (d); redesignated paragraphs (e), (f), and (g)
as (d), (e), and (f), respectively; and revised newly designated
paragraphs (d)(1) introductory text and (d)(1)(i);

• In §21.7138, revised paragraph (c)(1); and

• In §21.7139, removed paragraph (b); redesignated paragraphs (c), (d),
(e), (f), and (g) as paragraphs (b), (c), (d), (e), and (f)
respectively; in newly designated paragraph (b), revised the paragraph
heading and introductory text; and revised newly designated paragraphs
(c)(2)(iii), (d)(3)(iii), (f)(1)(i), and (f)(1)(ii).

**Veterans Benefits Administration**

**Department of Veterans Affairs**

Custom Federal Regulations Service™

**Book G---Vocational Rehabilitation and Education**

Code of Federal Regulations

Title 38, Part 21

Jonathan Publishing

Copyright © 2006 Jonathan Publishing

**Need Assistance?**

Questions concerning **[missing supplements]{.smallcaps}**, need for
**[additional books]{.smallcaps}**, and other **[distribution
list]{.smallcaps}** issues for this loose-leaf service should be
directed to:

Department of Veterans Affairs

Veterans Benefits Administration

Directives, Forms and Records Staff

Mail Code: 20M33

810 Vermont Avenue, N.W.

Washington DC 20420

Telephone: 202/273-7588

Fax: 202/275-5947

E-mail: coarms@vba.va.gov

Questions concerning the **[filing instructions]{.smallcaps}** for this
loose-leaf service,

or the reporting of **[substantive errors]{.smallcaps}** in the text,

may be directed to:

Jonathan Publishing

855 Yorks Crossing

Driftwood TX 78619

Telephone: 512/858-1225

Fax: 512/858-1230

E-mail: jonpub@austin.rr.com

Internet: http://www.jonpub.com

Copyright © 2006 Jonathan Publishing

**Claims and applications**

21.7030 Applications, claims and time limits 21.7030-1

21.7032 Time limits for making elections 21.7032-1

**Eligibility**

21.7040 Categories of basic eligibility 21.7040-1

21.7042 Basic eligibility requirements 21.7042-1

21.7044 Persons with eligibility under 38 U.S.C. chapter 34 21.7044-1

21.7045 Eligibility based on involuntary separation, voluntary

separation, or participation in the Post-Vietnam Era

Veterans' Educational Assistance Program 21.7045-1

21.7046 Eligibility for supplemental educational assistance 21.7046-1

21.7050 Ending dates of eligibility 21.7050-1

21.7051 Extended period of eligibility 21.7051-1

**Entitlement**

21.7070 Entitlement 21.7070-1

21.7072 Entitlement to basic educational assistance 21.7072-1

21.7073 Entitlement for some individuals who establish eligibility

during the open period or who establish eligibility

before involuntary separation 21.7073-1

21.7074 Entitlement to supplemental educational assistance 21.7074-1

21.7076 Entitlement charges 21.7076-1

21.7080 Transfer of entitlement 21.7080-1

**Counseling**

21.7100 Counseling 21.7100-1

21.7103 Travel expenses 21.7103-1

**Programs of education**

21.7110 Selection of a program of education 21.7110-1

21.7112 Programs of education combining two or more

types of courses 21.7112-1

21.7114 Change of program 21.7114-1

**Courses**

21.7120 Courses included in programs of education 21.7120-1

21.7122 Courses precluded 21.7122-1

21.7124 Overcharges 21.7124-1

**Payments---Educational assistance**

21.7130 Educational assistance 21.7130-1

21.7131 Commencing dates 21.7131-1

21.7133 Suspension or discontinuance of payments 21.7133-1

21.7135 Discontinuance dates 21.7135-1

21.7136 Rates of payment of basic educational assistance 21.7136-1

21.7137 Rates of payment of basic educational assistance for

individuals with remaining entitlement under

38 U.S.C. ch. 34 21.7137-1

21.7138 Rates of supplemental educational assistance 21.7138-1

21.7139 Conditions which result in reduced rates 21.7139-1

21.7140 Certifications and release of payments 21.7140-1

21.7141 Tutorial assistance 21.7141-1

21.7142 Accelerated paymenbts 21.7142-1

21.7143 Nonduplication of educational assistance 21.7143-1

21.7144 Overpayments 21.7144-1

**Pursuit of courses**

21.7150 Pursuit 21.7150-1

21.7151 Advance payment and accelerated payment certifications 21.7151-1

21.7152 Certification of enrollment 21.7152-1

21.7153 Progress and conduct 21.7153-1

21.7154 Pursuit and absences 21.7154-1

21.7156 Other required reports 21.7156-1

21.7158 False, late or missing reports 21.7158-1

21.7159 Reporting fee 21.7159-1

**Course assessment**

21.7170 Course measurement 21.7170-1

21.7172 Measurement of concurrent enrollments 21.7172-1

**State approving agencies**

21.7200 State approving agencies 21.7200-1

**Approval of courses**

21.7220 Course approval 21.7220-1

21.7222 Courses and enrollments which may not be approved 21.7222-1

21.7280 Death benefit 21.7280-1

**Administrative**

21.7301 Delegations of authority 21.7301-1

21.7302 Finality of decisions 21.7302-1

Training resources 21.6290-1

**Subpart J---Temporary Program of Vocational Training and
Rehabilitation**

Definitions 21.6503-1

Eligibility of qualified veterans for employment and counseling services
21.6519-1

Employment of qualified veterans 21.6521-1

Entry and reentry into a program of counseling and employment

services under 38 U.S.C. 1504(a)(2) and (5) 21.6523-1

Formulation of rehabilitation plan 21.6515-1

Notice to qualified veterans 21.6509-1

Overview 21.6501-1

Participation in the temporary program 21.6505-1

Special benefits for qualified veterans under test program 21.6507-1

**Subpart K---All Volunteer Force Educational Assistance Program (New GI
Bill)**

Accelerated payments 21.7142-1

Advance payment and accelerated payment certifications 21.7151-1

Applications, claims and time limits 21.7030-1

Basic eligibility requirements 21.7042-1

Categories of basic eligibility 21.7040-1

Certification of enrollment 21.7152-1

Certifications and release of payments 21.7140-1

Change of program 21.7114-1

Civil rights 21.7310-1

Commencing dates 21.7131-1

Conditions which result in reduced rates or no payment 21.7139-1

Conflicting interests 21.7305-1

Counseling 21.7100-1

Course approval 21.7220-1

Course measurement 21.7170-1

Courses and enrollments which may not be approved 21.7222-1

Courses included in programs of education 21.7120-1

Courses precluded 21.7122-1

Death benefit 21.7280-1

Definitions 21.7020-1

Delegations of authority 21.7301-1

Discontinuance dates 21.7135-1

Educational assistance 21.7130-1

Eligibility based on involuntary separation, voluntary separation, or

participation in the Post-Vietnam Era Veterans' Educational

Assistance Program 21.7045-1

Eligibility for supplemental educational assistance 21.7046-1

Ending dates of eligibility 21.7050-1

Entitlement 21.7070-1

Entitlement charges 21.7076-1

Entitlement for some individuals who establish eligibility during the

open period or who establish eligibility before involuntary separation
21.7073-1

Entitlement to basic educational assistance 21.7072-1

Entitlement to supplemental educational assistance 21.7074-1

Establishment of educational assistance program 21.7000-1

Examination of records 21.7307-1

Extended period of eligibility 21.7051-1

False, late or missing reports 21.7158-1

Finality of decisions 21.7302-1

Measurement of concurrent enrollments 21.7172-1

Nonduplication of educational assistance 21.7143-1

Other required reports 21.7156-1

Overcharges 21.7124-1

Overpayments 21.7144-1

Persons with eligibility under 38 U.S.C. chapter 34 21.7044-1

Procedural protection; reduction following loss of dependent 21.7320-1

Programs of education combining two or more types of courses 21.7112-1

Progress and conduct 21.7153-1

Pursuit 21.7150-1

Pursuit and absences 21.7154-1

Rates of payment of basic educational assistance 21.7136-1

Rates of payment of basic educational assistance for individuals

with remaining entitlement under 38 U.S.C. ch. 34 21.7137-1

Rates of supplemental educational assistance 21.7138-1

Reporting fee 21.7159-1

Revision of decisions 21.7303-1

Selection of a program of education 21.7110-1

State approving agencies 21.7200-1

Suspension or discontinuance of payments 21.7133-1

Time limits for making elections 21.7032-1

Travel expenses 21.7103-1

Transfer of entitlement 21.7080-1

Tutorial assistance 21.7141-1

**Subpart L---Educational Assistance for Members of the Selected
Reserve**

Applications, claims and time limits 21.7530-1

Certifications of enrollment and verification of pursuit 21.7652-1

Changes of program 21.7614-1

Commencing dates 21.7631-1

Conditions which result in reduced rates or no payment 21.7639-1

Conflicting interests 21.7805-1

Counseling 21.7600-1

Course approval 21.7720-1

from active duty or otherwise receives a complete separation from active
duty service and the date he or she reenters on active duty.

\(ii\) A period during which an individual is assigned full time by the
Armed Forces to a civilian institution for a course of education
substantially the same as established courses offered to civilians is
not a break in service. (Authority: 38 U.S.C. 3011, 3021)

\(6\) *Continuous active duty*.

\(i\) The term *continuous active duty* means active duty served without
interruption. An interruption in service will only be found when the
individual receives a complete separation from active duty.

\(ii\) A period during which an individual on active duty is assigned
full time by the Armed Forces to a civilian institution for a course of
education substantially the same as established courses offered to
civilians will not interrupt the continuity of the individual's active
duty.

\(iii\) If an individual, during an obligated period of active-duty
service, is separated from active duty to pursue a course of education
at a service academy or a post-secondary school preparatory to
enrollment at a service academy, no interruption in service will be
found and the individual's service will be considered continuous
active-duty service, provided he or she:

\(A\) Commences pursuit of a course of education at a service academy or
post-secondary school,

\(B\) Fails to complete the course of education, and

\(C\) Immediately reenters on a period of active duty.

\(iv\) An individual who is discharged or released from active duty for
a reason stated in paragraph (b)(6)(iv) of this section after serving
not more than 12 months of an obligated period of active duty, and who
subsequently reenlists or reenters on a period of active duty, will not
be considered to have an interruption in service. Except as provided in
paragraph (b)(6)(vi) of this section, the individual's service during
the two periods will be considered continuous active-duty service for
the aggregate length of the two service periods. However, the
individual's discharge or release from the earlier obligated period of
service must have been:

\(A\) For a service-connected disability;

\(B\) For hardship;

\(C\) For a medical condition which preexisted such active-duty service
and is not service connected;

\(D\) For a physical or mental condition not characterized as a
disability and not resulting from the individual's own willful
misconduct which interfered with the individual's performance of duty as
determined by the Secretary concerned; or

\(E\) Involuntary, for the convenience of the Government as a result of
a reduction in force as determined by the Secretary concerned.

\(v\) VA will not consider an individual to have an interruption of
service when he or she:

> \(A\) Serves a period of active duty without interruption (without a
> complete separation from active duty), as an enlisted member or
> warrant officer;
>
> \(B\) While serving on such active duty is assigned to officer
> training school; and
>
> \(C\) Following successful completion of the officer training school
> is discharged to accept, without a break in service, a commission as
> an officer in the Armed Forces for a period of active duty.

\(vi\) If the second period of active-duty service referred to in
paragraph (b)(6)(iv) or (b)(6)(v) of this section is of such nature or
character that, when aggregated with the earlier period of service
referred to in that paragraph, it would cause the individual to be
divested of entitlement to educational assistance otherwise established
by the earlier period of active duty, the two periods of service will
not be aggregated and will not be considered a single period of
continuous active duty.

\(vii\) Time lost will not be considered to interrupt the continuity of
service. For the purpose of this section, "time lost" includes excess
leave, noncreditable time and not-on-duty time. (Authority: 38 U.S.C.
3011, 3012)

\(7\) *Cost of course.* The term *cost of course* means the total cost
for tuition and fees for a course which an educational institution
charges to nonveterans whose circumstances are similar to veterans
enrolled in the same course. *Cost of course* does not include the cost
of supplies which the student is required to purchase at his or her own
expense. (Authority: 38 U.S.C. 3032; Pub. L. 98-525)

\(8\) *Deficiency course.* The term *deficiency course* means any
secondary level course or subject not previously completed
satisfactorily which is specifically required for pursuit of a
postsecondary program of education. (Authority: 38 U.S.C. 3034; Pub. L.
98-525)

\(9\) *Dependent.* The term *dependent* means:

\(i\) A spouse as defined in §3.50(a) of this chapter,

\(ii\) A child who meets the requirements of §3.57 of this chapter, or

\(iii\) A parent who meets the requirements of §3.59 of this
chapter.(Authority:38U.S.C.3015(d);Pub.L.98-525)

\(B\) Is recognized as an institution of higher education by the
secretary of education (or comparable official) of the country or other
jurisdiction in which the educational institution is located.
(Authority: 38 U.S.C. 3002(3)).

\(46\) *Graduate school*. The term *graduate school* means either:

\(i\) An educational institution, located in a State, that:

\(A\) Admits as regular students only persons who have a baccalaureate
degree or the equivalent in work experience;

\(B\) Offers postsecondary level academic instruction that leads to a
master's degree, doctorate, or professional degree; and

\(C\) Is empowered by the appropriate State education authority under
State law to grant a master's degree, doctorate, or professional degree,
or, where there is no State law to authorize the granting of a degree,
is accredited for master's degree, doctorate, or professional degree
programs by a recognized accrediting agency; or

\(ii\) An educational institution, not located in a State, that:

\(A\) Offers a course leading to a master's degree, doctorate, or
professional degree; and

\(B\) Is recognized as an institution of higher education by the
secretary of education (or comparable official) of the country or other
jurisdiction in which the educational institution is located.
(Authority: 38 U.S.C. 3002(3)).

\(47\) *High technology industry*. The term *high technology industry*
has the same meaning as provided in §21.4200(aa). (Authority: 38 U.S.C.
3014A, 3452(c), 3501(a)(6))

\(48\) *Employment in a high technology industry. Employment in a high
technology industry* has the same meaning as provided in §21.4200(bb).
(Authority: 38 U.S.C. 3014A)

\(49\) *High technology occupation*. The term *high technology
occupation* has the same meaning as provided in §21.4200(cc).
(Authority: 38 U.S.C. 3014A, 3452(c), 3501(a)(6))

\(50\) *Computer specialist*. The term *computer specialist* has the
same meaning as provided in §21.4200(dd). (Authority: 38 U.S.C. 3014A,
3452(c), 3501(a)(6))

\(51\) *Accelerated payment*. An *accelerated payment* is a lump sum
payment of a maximum of 60 percent of the charged tuition and fees for
an individual's enrollment for a term, quarter, or semester in an
approved program of education leading to employment in a high technology
industry. In the case of a program of education not offered on a term,
quarter, or semester basis, the accelerated payment is a lump sum
payment of a maximum of 60 percent of the charged tuition and fees for
the entire such program. (Authority: 38 U.S.C. 3014A)

\(52\) \[Reserved\]

\(53\) \[Reserved\]

\(54\) \[Reserved\]

\(55\) \[Reserved\]

\(56\) *Fugitive felon*. The term *fugitive felon* has the same meaning
as provided in §21.4200(kk). (Authority: 38 U.S.C. 5313B)

\(57\) *Felony*. The term *felony* has the same meaning as provided in
§21.4200(ll). (Authority: 38 U.S.C. 5313B)

\(58\) *Transferor*. The term transferor means an individual, who is:

\(i\) Entitled to educational assistance under the Montgomery GI
Bill--Active Duty program based on his or her own active duty service;
and

\(ii\) Approved by the service department to transfer a portion of his
or her entitlement to his or her dependent or dependents. (Authority: 38
U.S.C. 3020)

\(59\) *Transferee*. The term transferee means an individual to whom
entitlement has been transferred. (Authority: 38 U.S.C. 3020)

\[53 FR 1757, Jan. 22, 1988, as amended at 55 FR 28383, July 11, 1990;
56 FR 20130, May 2, 1991; 57 FR 15023, April 24, 1992; 58 FR 26241, May
3, 1993; 59 FR 24051, May 10, 1994; 61 FR 6785, Feb. 22, 1996; 61 FR
29297, June 10, 1996; 62 FR 55761, Oct. 28, 1997; 64 FR 23772, May 4,
1999; 65 FR 5786, Feb. 7, 2000; 65 FR 67266, Nov. 9, 2000; 66 FR 39279,
July 30, 2001; 68 FR 34328, June 9, 2003; 68 FR 35179, June 12, 2003; 70
FR 25787, May 16, 2005; 71 FR 75674, Dec. 18, 2006\]

**Supplement *Highlights* references**: 6(3), 12(3), 23(1), 27(3),
42(1), 47(1), 52(1), 56(3), 62(2,3), 68(1), 71(2).

# Next Section is §21.7030

\(1\) Was captured and held as a prisoner of war by a foreign government
or power, or

\(2\) Immediately following the veteran's release from this detention
during which he or she was hospitalized at a military, civilian or VA
medical facility. (Authority: 38 U.S.C. 3031(c); Pub. L. 98-525)

\(h\) *Time limitation for a spouse eligible for transferred
entitlement*.

\(1\) Unless the transferor dies while on active duty, the ending date
of the eligibility period for a spouse, who is eligible for transferred
entitlement under §21.7080, is the earliest of the following dates:

\(i\) The transferor's ending date of eligibility as determined under
this section;

\(ii\) The ending date the transferor specified, if the transferor
specified the period for which the transfer was effective; or

\(iii\) The effective date of the transferor's revocation of transfer of
entitlement as determined under §21.7080(g)(2).

\(2\) If the transferor dies while on active duty, the ending date of
the eligibility period for a spouse, who is eligible for transferred
entitlement under §21.7080, is the earliest of the following dates:

\(i\) The date 10 years from the transferor's date of death;

\(ii\) The ending date the transferor specified, if the transferor
specified the period for which the transfer was effective; or

\(iii\) The effective date of the transferor's revocation of transfer of
entitlement as determined under §21.7080(g)(2). (Authority: 38 U.S.C.
3020)

\(i\) *Time limitation for a child eligible for transferred
entitlement*.

\(1\) Unless the transferor dies while on active duty, the ending date
of the eligibility period for a child, who is eligible for transferred
entitlement under §21.7080 is the earliest of the following dates:

\(i\) The transferor's ending date of eligibility as determined under
this section;

\(ii\) The ending date the transferor specified, if the transferor
specified the period for which the transfer was effective;

\(iii\) The effective date of the transferor's revocation of transfer of
entitlement as determined under §21.7080(g)(2); or

\(iv\) The day the child attains age 26.

\(2\) If the transferor dies while on active duty, the ending date of
the eligibility period for a child, who is eligible for transferred
entitlement under §21.7080, is the earliest of the following dates:

\(i\) The date 10 years from the transferor's date of death;

\(ii\) The ending date the transferor specified, if the transferor
specified the period for which the transfer was effective;

\(iii\) The effective date of the transferor's revocation of transfer of
entitlement as determined under §21.7080(g)(2); or

\(iv\) The day the child attains age 26. (Authority: 38 U.S.C. 3020)

\[53 FR 1757, Jan. 22 1988, as amended at 55 FR 28384, July 11, 1990; 56
FR 20133, May 2, 1991; 57 FR 15024, April 24, 1992; 61 FR 6787, Feb. 22,
1996; 65 FR 5787, Feb. 7, 2000; 66 FR 39280, July 30, 2001; 68 FR 34330,
June 9, 2003; 71 FR 75674, Dec. 18, 2006\]

**Supplement *Highlights* references**: 23(1), 47(1), 56(3), 62(2),
71(2).

Reserved

**§21.7051 Extended period of eligibility.**

\(a\) *Period of eligibility may be extended*. VA shall grant an
extension of the applicable delimiting period, as otherwise determined
by §21.7050 of this part provided:

\(1\) The veteran applies for an extension within the time specified in
§21.1032(c).

\(2\) The veteran was prevented from initiating or completing the chosen
program of education within the otherwise applicable eligibility period
because of a physical or mental disability that did not result from the
veteran's willful misconduct. VA will not consider the disabling effects
of chronic alcoholism to be the result of willful misconduct. (See
§21.7020(b)(38)) It must be clearly established by medical evidence that
such a program of education was medically infeasible. VA will not
consider a veteran who is disabled for a period of 30 days or less as
having been prevented from initiating or completing a chosen program
unless the evidence establishes that the veteran was prevented from
enrolling or reenrolling in the chosen program or was forced to
discontinue attendance, because of the short disability. (Authority: 38
U.S.C. 105, 3031(d); Pub. L. 98-525, Pub. L. 100-689) (Nov. 18, 1988)

\(b\) *Commencing date.* The veteran shall elect the commencing date of
an extended period of eligibility. The date chosen:

\(1\) Must be on or after the original date of expiration of eligibility
as determined by §21.7050 of this part, and

\(2\) Must either be:

\(i\) On or before the 90th day following the date on which the
veteran's application for an extension was approved by VA, if the
veteran is training during the extended period of eligibility in a
course not organized on a term, quarter or semester basis, or

\(ii\) On or before the commencing date of the first ordinary term,
quarter or semester following the 90th day after the veteran's
application for an extension was approved by VA, if the veteran is
training during the extended period of eligibility in a course organized
on a term, quarter or semester basis. (Authority: 38 U.S.C. 3031(d);
Pub. L. 98-525)

\(c\) *Length of extended periods of eligibility.* A veteran's extended
period of eligibility shall be for the length of time that the
individual was prevented from initiating or completing his or her chosen
program of education. This shall be determined as follows:

\(1\) If the veteran is in training in a course organized on a term,
quarter or semester basis, his or her extended period of eligibility
shall contain the same number of days as the number of days from the
date during the veteran's original eligibility period that his or her
training became medically infeasible to the earliest of the following
date.

(i) The commencing date of the ordinary term, quarter or

semester following the day the veteran's training became medically
infeasible,

\(1\) If the overpayment is discharged in bankruptcy or is waived and is
not recovered, the charge against entitlement will be at the appropriate
rate for the elapsed period covered by the overpayment (exclusive of
interest, administrative costs of collection, court costs and marshal
fees).

\(2\) If the overpayment is compromised and the compromise offer is less
than the amount of interest, administrative costs of collection, court
costs and marshal fees, the charge against entitlement will be at the
appropriate rate for the elapsed period covered by the overpayment
(exclusive of interest, administrative costs of collection, court costs
and marshal fees).

\(3\) If the overpayment is compromised and the compromise offer is
equal to or greater than the amount of interest, administrative costs of
collection, court costs and marshal fees, the charge against entitlement
will be determined by:

\(i\) Subtracting the portion of the debt attributable to interest,
administrative costs of collection, court costs and marshal fees from
the compromise offer,

\(ii\) Subtracting the amount determined in paragraph (c)(3)(i) of this
section from the amount of the original debt (exclusive of interest,
administrative costs of collection, court costs and marshal fees)

\(iii\) Dividing the result obtained in paragraph (c)(3)(ii) of this
section by the amount of the original debt (exclusive of interest,
administrative costs of collection, court costs and marshal fees), and

\(iv\) Multiplying the percentage obtained in paragraph (c)(3)(iii) of
this section by the amount of the entitlement which represents the whole
overpaid period. (Authority: 38 U.S.C. 3013; Pub. L. 98-525)

\(d\) *Interruption to conserve entitlement.* A veteran may not
interrupt a certified period of enrollment for the purpose of conserving
entitlement. An educational institution may not certify a period of
enrollment for a fractional part of the normal term, quarter or
semester, if the veteran or servicemember is enrolled for the entire
term, quarter or semester. VA will make a charge against entitlement for
the entire period of certified enrollment, if the veteran or
servicemember is otherwise eligible for educational assistance, except
when educational assistance is interrupted under any of the following
conditions:

\(1\) Enrollment is terminated;

\(2\) The veteran or servicemember cancels his or her enrollment, and
does not negotiate an educational assistance check for any part of the
certified period of enrollment;

\(3\) The veteran or servicemember interrupts his or her enrollment at
the end of any term, quarter or semester within the certified period of
enrollment, and does not negotiate a check for educational assistance
for the succeeding term, quarter or semester;

\(4\) The veteran or servicemember requests interruption or cancellation
for any break when a school was closed during a certified period of
enrollment, and VA continued payments under an established policy based
upon an Executive Order of the President or an emergency situation.
Whether the veteran or servicemember negotiated a check for educational
assistance for the certified period is immaterial. (Authority: 38 U.S.C.
3013; Pub. L. 98-525)

\(e\) *No entitlement charge for some individuals*. When the criteria
described in this paragraph are met, VA will make no charges against the
entitlement as described in paragraph (b) of this section.

\(1\) VA will make no charge against an individual's entitlement when
the individual:

\(i\) Either:

\(A\) While not serving on active duty, had to discontinue pursuit of a
course or courses as a result of being ordered, in connection with the
Persian Gulf War, to serve on active duty under section 672(a), (d), or
(g), 673, 673b, or 688 of title 10, U.S. Code; or

\(B\) While serving on active duty, had to discontinue pursuit of a
course or courses as a result of being ordered, in connection with the
Persian Gulf War, to a new duty location or assignment or to perform an
increased amount of work.

\(ii\) Failed to receive credit or lost training time toward completion
of the individual's approved educational, professional or vocational
objective as a result of having to discontinue his or her course
pursuit.

\(2\) The period for which receipt of educational assistance allowance
is not charged against the entitlement of an individual described in
paragraph (e)(1) of this section shall not exceed the portion of the
period of enrollment in the course or courses for which the individual
failed to receive credit or with respect to which the individual lost
training time. (Authority: 38 U.S.C. 3013(f); Pub. L. 102-127 (Oct. 10,
1991))

\[53 FR 1757, Jan. 22, 1988, as amended at 55 28385, July 11, 1990; 56
FR 20134, May 2, 1991; 56 FR 26035, June 6, 1991; 56 FR 31332, July 10,
1991; 57 FR 15024, April 24, 1992; 58 FR 26241, May 3, 1993; 68 FR
35179, June 12, 2003\]

**Supplement *Highlights* references**: 6(3), 62(3).

*Next Section is §21.7080*

Reserved

**Transfer of Entitlement to Basic Educational Assistance to
Dependents**

**§21.7080 Transfer of entitlement.**

An individual entitled to educational assistance under the Montgomery GI
Bill--Active Duty (38 U.S.C. chapter 30) program based on his or her own
active duty service, and who is approved by a service department to
transfer a portion of his or her entitlement, may transfer up to a total
of 18 months of his or her entitlement to a dependent (or among
dependents). A transferor may not transfer an amount of entitlement that
is greater than the entitlement he or she has available.

\(a\) *Application of sections in subpart K to individuals in receipt of
transferred entitlement*. In addition to the rules in this section, the
following sections apply to a dependent in the same manner as they apply
to the individual from whom entitlement was transferred.

\(1\) *Definitions*. Section 21.7020---Definitions. (Authority: 38
U.S.C. 3020)

\(2\) *Claims and Applications*. Section 21.7030---Applications, claims,
and time limits. (Authority: 38 U.S.C. 3020)

\(3\) *Eligibility*.

> \(i\) Section 21.7050---Ending dates of eligibility, only paragraphs
> (h) and (i); and
>
> \(ii\) Section 21.7051---Extended period of eligibility, except that
> extensions to dependents are subject to the transferor's right to
> revoke transfer at any time and that VA may only extend a child's
> ending date to the date the child attains age 26. (Authority: 38
> U.S.C. 3020)

\(4\) *Entitlement*.

\(i\) Section 21.7070---Entitlement;

\(ii\) Section 21.7075---Entitlement to tuition assistance top-up; and

\(iii\) Section 21.7076---Entitlement charges. (Authority: 38 U.S.C.
3020)

\(5\) *Counseling*.

\(i\) Section 21.7100---Counseling; and

\(ii\) Section 21.7103---Travel expenses. (Authority: 38 U.S.C. 3020)

\(6\) *Programs of Education*.

> \(i\) Section 21.7110---Selection of program of education;
>
> \(ii\) Section 21.7112---Programs of education combining two or more
> types of courses; and
>
> \(iii\) Section 21.7114---Change of program. (Authority: 38 U.S.C.
> 3020)

\(7\) *Courses*.

> \(i\) Section 21.7120---Courses included in programs of education;
>
> \(ii\) Section 21.7122---Courses precluded; and
>
> \(iii\) Section 21.7124---Overcharges. (Authority: 38 U.S.C. 3020)

\(8\) *Payments---Educational Assistance*.

> \(i\) Section 21.7130---Educational Assistance;
>
> \(ii\) Section 21.7131---Commencing dates, except for paragraphs (d),
> (g), (l), (m), (n), (o), and (p) of §21.7131;
>
> \(iii\) Section 21.7133---Suspension or discontinuance of payments;
>
> \(iv\) Section 21.7135---Discontinuance dates, except for paragraphs
> (q), (s) and (u) of §21.7135;
>
> \(v\) Section 21.7139---Conditions which result in reduced rates or no
> payment, except for paragraph (c) of §21.7139. VA will apply the rules
> in paragraph (d) of §21.7139 to dependents, who are on active duty;
>
> \(vi\) Section 21.7140---Certifications and release of payments;
>
> \(vii\) Section 21.7141---Tutorial assistance;
>
> \(viii\) Section 21.7142---Accelerated payments;
>
> \(ix\) Section 21.7143---Nonduplication of educational assistance; and
>
> \(x\) Section 21.7144---Overpayments, except that the dependent and
> transferor are jointly and severally liable for any amount of
> overpayment of educational assistance to the dependent. (Authority: 38
> U.S.C. 3020)

\(9\) *Pursuit of courses*.

> \(i\) Section 21.7150---Pursuit;
>
> \(ii\) Section 21.7151---Advance payment and accelerated payment
> certifications;
>
> \(iii\) Section 21.7152---Certification of enrollment;
>
> \(iv\) Section 21.7153---Progress and conduct;
>
> \(v\) Section 21.7154---Pursuit and absences;
>
> \(vi\) Section 21.7156---Other required reports;
>
> \(vii\) Section 21.7158---False, late, or missing reports; and
>
> \(viii\) Section 21.7159---Reporting fee. (Authority: 38 U.S.C. 3020)

\(10\) *Course Assessment*.

> \(i\) Section 21.7170---Course measurement; and
>
> \(ii\) Section 21.7172---Measurement of concurrent enrollments.
> (Authority: 38 U.S.C. 3020)

\(11\) *State approving agencies*. Section 21.7200---State approving
agencies. (Authority: 38 U.S.C. 3020)

\(12\) *Approval of courses*.

> \(i\) Section 21.7220---Course approval; and
>
> \(ii\) Section 21.7222---Courses and enrollments which may not be
> approved. (Authority: 38 U.S.C. 3020)

\(13\) *Administrative*.

> \(i\) Section 21.7301---Delegations of authority;
>
> \(ii\) Section 21.7302---Finality of decisions;
>
> \(iii\) Section 21.7303---Revision of decisions;
>
> \(iv\) Section 21.7305---Conflicting interests;
>
> \(v\) Section 21.7307---Examination of records;
>
> \(vi\) Section 21.7310---Civil rights; and
>
> \(vii\) Section 21.7320---Procedural protection; reduction following
> loss of dependent. (Authority: 38 U.S.C. 3020)

\(b\) *Proof of transfer of entitlement option*. An individual
transferring entitlement, or the dependent to whom entitlement is
transferred, must submit to VA:

\(1\) A copy of DD Form 2366-2, entitled "Montgomery GI Bill Act of 1984
(MGIB) Transferability Program"; or

\(2\) Any other document issued and signed by the transferor's service
department that shows the transferor is authorized to transfer
entitlement. (Authority: 38 U.S.C. 3020)

\(c\) *Eligible dependents*.

\(1\) An individual transferring entitlement under this section may
transfer entitlement to:

> \(i\) The individual's spouse;
>
> \(ii\) One or more of the individual's children; or
>
> \(iii\) A combination of the individuals referred to in paragraphs
> (c)(1)(i) and (ii) of this section.

\(2\) A spouse must meet the definition of spouse in §3.50(a) of this
chapter.

\(3\) A child must meet the definition of child in §3.57 of this
chapter. The transferor must make the required designation shown in
§21.7080(e)(1) before the child attains age 23.

\(4\) A stepchild, who meets VA's definition of child in §3.57 of this
chapter and is temporarily not living with the transferor, remains a
member of the transferor's household if the actions and intentions of
the stepchild and transferor establish that normal family ties have been
maintained during the temporary absence. (Authority: 38 U.S.C. 3020)

\(d\) *Timeframe during which an individual may transfer entitlement*.
An individual approved by his or her service department to transfer
entitlement may do so at any time after such approval up until the
transferor's ending date of eligibility as determined under §21.7050.
(Authority: 38 U.S.C. 3020)

\(e\) *Designating dependents, designating the amount to transfer, and
period of transfer*.

\(1\) An individual transferring entitlement under this section must:

> \(i\) Designate the dependent or dependents to whom such entitlement
> is being transferred;
>
> \(ii\) Designate the number of months of entitlement to be transferred
> to each dependent; and
>
> \(iii\) Specify the beginning date and ending date of the period for
> which the transfer is effective for each dependent.

\(2\) VA will accept the transferor's designations as shown on a copy of
DD Form 2366-2, Montgomery GI Bill Act of 1984 Transferability Program,
or on any document signed by the transferor that shows the information
required in paragraphs (e)(1)(i) through (e)(1)(iii) of this section.
(Authority: 38 U.S.C. 3020)

\(f\) *Maximum months of entitlement transferable*.

\(1\) The maximum amount of entitlement a transferor may transfer is the
lesser of:

\(i\) Eighteen months of his or her entitlement; or

\(ii\) The amount of entitlement he or she has available.

\(2\) Subject to the limitations in paragraph (f)(1) of this section,
the transferor may transfer up to the maximum amount of transferable
entitlement:

> \(i\) To one dependent; or
>
> \(ii\) Divided among his or her designated dependents in any manner he
> or she chooses. (Authority: 38 U.S.C. 3020)

\(g\) *Revocation of transferred entitlement*.

\(1\) A transferor may revoke any unused portion of transferred
entitlement any time by submitting a written notice to both the
Secretary of Veterans Affairs and the Secretary of the service
department that initially approved the transferor to transfer
entitlement. VA will accept a copy of the written notice addressed to
the service department as sufficient written notification to VA.

\(2\) The revocation will be effective the later of:

> \(i\) The date VA receives the notice of revocation; or
>
> \(ii\) The date the service department concerned receives the notice
> of revocation. (Authority: 38 U.S.C. 3020)

\(h\) *Modifying a transfer of entitlement*.

\(1\) A transferor may modify the designations he or she made under
paragraph (e) of this section at any time. Any modification made will
apply only to any unused transferred entitlement. The transferor must
submit a written notice to both the Secretary of Veterans Affairs and
the Secretary of the service department that initially approved the
transferor to transfer entitlement. VA will accept a copy of the written
notice addressed to the service department as sufficient written
notification to VA.

\(2\) The modification will be effective the later of:

> \(i\) The date VA receives the notice of modification; or
>
> \(ii\) The date the service department concerned receives the notice
> of modification. (Authority: 38 U.S.C. 3020)

\(i\) *Entitlement charge to transferor*. VA will reduce the
transferor's entitlement at the rate of 1 month of entitlement for each
month of transferred entitlement used by the dependents. (Authority: 38
U.S.C. 3020)

\(j\) *Secondary school diploma (or equivalency certificate)*. Children,
who have attained age 18, and spouses may use transferred entitlement to
pursue and complete the requirements of a secondary school diploma (or
equivalency certificate). (Authority: 38 U.S.C. 3020)

\(k\) *Rate of payment of educational assistance*. VA will apply the
rules in §21.7136 or §21.7137 (and the rules in §21.7138 when
applicable) to determine the educational assistance rate that would
apply to the transferor. VA will pay the dependent the monthly rate of
educational assistance that would be payable to the transferor except
that VA will:

\(1\) Exclude the transferor's kicker for service in the Selected
Reserve(§§21.7136(g) and 21.7137(e)) if the transferor is eligible for
such kicker;

\(2\) Include the dependent's Selected Reserve kicker, if the dependent
is eligible for a kicker from the Selected Reserve based on the
dependent's own Selected Reserve service; and

\(3\) Disregard the fact that either the transferor or the dependent is
on (or both are on) active duty and pay the veteran rate rather than the
rate applicable to individuals on active duty. (Authority: 10 U.S.C.
16131; 38 U.S.C. 3020(h))

\(l\) *Restriction on payment of educational assistance to a dependent
pursuing an on-the-job training or apprenticeship program while
transferor is on active duty*. A dependent is not entitled to
educational assistance for training pursued in an on-the-job training or
apprenticeship program during periods the transferor is on active duty.
(Authority: 38 U.S.C. 3002(3), 3020(h))

\(m\) *Transferor fails to complete required service contract that
afforded participation in the transferability program*.

\(1\) The dependents are not eligible for transferred entitlement if the
transferor fails to complete the amount of active duty service he or she
agreed to serve in the Armed Forces in order to participate in the
transferability program, unless the transferor did not complete the
active duty service due to:

> \(i\) His or her death;
>
> \(ii\) A service-connected disability;
>
> \(iii\) A medical condition which preexisted such service on active
> duty and which the Secretary of VA determines is not
> service-connected;
>
> \(iv\) A hardship; or
>
> \(v\) A physical or mental condition that was not characterized as a
> disability and did not result from the individual's own willful
> misconduct, but that did interfere with the individual's performance
> of duty, as determined by the Secretary of each service department.

\(2\) VA will treat all payments of educational assistance to dependents
as overpayments if the transferor does not complete the required service
unless the transferor does not complete the required service due to one
of the reasons stated in paragraphs (m)(1)(i) through (v) of this
section. (Authority: 38 U.S.C. 3020, 38 U.S.C. 3011(a)(1)(A)(ii))

\(n\) *Dependent is eligible for educational assistance under this
section and is eligible for educational assistance under 38 U.S.C.
chapter 30 based on his or her own active duty service*. Dependents
eligible for payment of educational assistance through transferred
entitlement and who are eligible for payment under 38 U.S.C. chapter 30
based on their own active service:

\(1\) May receive educational assistance payable under this section and
educational assistance payable based on their own active duty service
for the same course.

\(2\) Are not subject to the 48 months limit on training provided for in
§21.4020 when combining transferred entitlement with their own
entitlement earned under 38 U.S.C. chapter 30 as long as the only
educational assistance paid is under 38 U.S.C. chapter 30. If the
dependent is awarded educational assistance under another program listed
in §21.4020 (other than 38 U.S.C. chapter 30), the 48 months limit on
training will apply. (Authority: 38 U.S.C. 3020, 3033, 3034(a), 3695)

\[71 FR 75675, Dec. 18, 2006\]

*Next Section is §21.7100*

**Counseling**

**§21.7100 Counseling.**

A veteran or servicemember may receive counseling from VA before
beginning training and during training.

\(a\) *Purpose.* The purpose of counseling is:

\(1\) To assist in selecting an objective;

\(2\) To develop a suitable program of education;

\(3\) To select an educational institution appropriate for the
attainment of the educational objective;

\(4\) To resolve any personal problems which are likely to interfere
with the successful pursuit of a program; and

\(5\) To select an employment objective for the veteran that would be
likely to provide the veteran with satisfactory employment opportunities
in light of his or her personal circumstances. (Authority: 38 U.S.C.
3034, 3463; Pub. L. 98-525)

\(b\) *Required counseling*.

\(1\) In any case in which VA has rated the veteran as being
incompetent, the veteran must be counseled before selecting a program of
education or training. The requirement that counseling be provided is
met when:

\(i\) The veteran has had one or more personal interviews with the
counselor;

\(ii\) The counselor has jointly developed with the veteran
recommendations for selecting a program; and

\(iii\) These recommendations have been reviewed with the veteran.

\(2\) The veteran may follow the recommendations developed in the course
of counseling, but is not required to do so.

\(3\) VA will take no further action on a veteran's application for
assistance under 38 U.S.C. chapter 30 when he or she:

\(i\) Fails to report;

\(ii\) Fails to cooperate in the counseling process; or

\(iii\) The date VA receives evidence if this date is more than 1 year
after the VA request, and the veteran is not able to show that there is
good cause to extend the one-year time limit to the date on which VA
received notice of the dependent's existence. (Authority: 38 U.S.C.
5110(n)) (See §3.667 of this chapter as to effective dates with regard
to children age 18 and older who are attending school)

\(f\) *Liberalizing laws and VA issues.* When a liberalizing law or VA
issue affects the commencing date of a veteran's or servicemember's
award of educational assistance, that commencing date shall be in
accordance with facts found, but not earlier than the effective date of
the act or administrative issue. (Authority: 38 U.S.C. 5112(b), 5113;
Pub. L. 98-525)

\(g\) *Correction of military records (§21.7050(b)).* The eligibility of
a veteran may arise because the nature of the veteran's discharge or
release is changed by appropriate military authority. In these cases the
commencing date of educational assistance will be in accordance with
facts found, but not earlier than the date the nature of the discharge
or release was changed. (Authority: 38 U.S.C. 3031(b); Pub. L. 98-525)

\(h\) *Individuals in a penal institution*. If a veteran or a
servicemember is paid a reduced rate of educational assistance under
§21.7139 (c) and (d) of this part, the rate will be increased or
assistance will commence effective the earlier of the following dates:

\(1\) The date the tuition and fees are no longer being paid under
another Federal program or a State or local program, or

\(2\) The date of the release from the prison or jail. (Authority: 38
U.S.C. 3034, 3482(g); Pub. L. 98-525)

\(i\) *Commitment to service in the Selected Reserve.* If a veteran has
established eligibility to educational assistance through two years'
active duty service, and he or she establishes entitlement to an
increased monthly rate through commitment to serve four years in the
Selected Reserve, the effective date of the increase is the date on
which he or she:

\(1\) Is committed to serve four years in the Selective Reserve, and

\(2\) Is attached to a unit of the Selected Reserve. (Authority: 38
U.S.C. 3012; Pub. L. 98-525)

\(j\) *Increase due a servicemember due to monetary contributions*.

\(1\) If a servicemember is contributing additional amounts as provided
in §21.7136(h), and is enrolled in an educational institution operated
on a term, quarter, or semester basis, the monthly rate payable to the
servicemember will increase on the first day of the term, quarter, or
semester following the term, quarter, or semester in which the
servicemember made the contribution(s).

\(2\) If a servicemember is contributing additional amounts as provided
in §21.7136(h), and is enrolled in an educational institution not
operated on a term, quarter, or semester basis, the monthly rate payable
to the servicemember will increase on the first day of the enrollment
period following the enrollment period in which the servicemember made
the contribution. (Authority: 38 U.S.C. 3011(e), 3012(f))

\(k\) *Increase* ("*kicker*") *due to service in the Selected Reserve*.
If a veteran is entitled to an increase ("kicker") in the monthly rate
of basic educational assistance because he or she has met the
requirements of §21.7136(g) or §21.7137(e), the effective date of that
increase ("kicker") will be the latest of the following dates:

> \(1\) The commencing date of the veteran's award as determined by
> paragraphs (a) through (j) of this section;
>
> \(2\) The first date on which the veteran is entitled to the increase
> ("kicker") as determined by the Secretary of the military department
> concerned; or
>
> \(3\) February 10, 1996. (Authority: 10 U.S.C. 16131)

\(l\) *Eligibility established under §21.7042(a)(7) or (b)(10).* This
paragraph must be used to establish the effective date of an award of
educational assistance when the veteran or servicemember has established
eligibility under either §21.7042 (a)(7) or (b)(10). The commencing date
of an award of educational assistance for such a veteran or
servicemember is the latest of the following:

\(1\) The commencing date as determined by paragraphs (a) through (c)
and (f) through (j) of this section;

\(2\) The date of election provided that:

\(i\) The servicemember initiated the \$1,200 reduction in basic pay
required by §21.7042(g)(4) and the full \$1,200 was collected through
that pay reduction;

\(ii\) Within one year of the date of election VA both collected from
the veteran \$1,200 or the difference between \$1,200 and the amount
collected through a reduction in the veteran's military pay, as provided
in §21.7042(g)(4), and received from the veteran any other evidence
necessary to establish a valid election; or

\(iii\) VA received from the veteran \$1,200 or the difference between
\$1,200 and the amount collected through a reduction in the veteran's
military pay and any other evidence necessary to establish a valid
election within one year of the date VA requested the money and/or the
evidence.

\(3\) If applicable, the date VA collected the difference between
\$1,200 and the amount by which the servicemember's military pay was
reduced, if the provisions of paragraph (l)(2)(ii) or (l)(2)(iii) of
this section are not met; or

\(4\) If applicable, the date VA collected \$1,200, if the provisions of
paragraph (l)(2)(ii) or (l)(2)(iii) of this section are not met.
(Authority: 38 U.S.C. 5113; §107, Pub. L. 104-275,110Stat.3329-3330)

**21.7131-6** §21.7131---Commencing dates **21.7131-6**

\(m\) *Eligibility established under §21.7045(d).* This paragraph must
be used to establish the effective date of an award of educational
assistance when the veteran or servicemember has established eligibility
under §21.7045(d). The commencing date of an award of educational
assistance for such a veteran or servicemember is the latest of the
following:

\(1\) The commencing date as determined by paragraphs (a) through (c)
and (f) through (j) of this section;

\(2\) The date of election provided that:

\(i\) The servicemember initiated the \$1,200 reduction in basic pay
required by §21.7045(d)(3) and the full \$1,200 was collected through
that pay reduction;

\(ii\) Within one year of the date of election VA both collected from
the veteran \$1,200 or the difference between \$1,200 and the amount
collected through a reduction in the veteran's military pay, as provided
in §21.7045(d)(3), and received from the veteran any other evidence
necessary to establish a valid election; or

\(iii\) VA received from the veteran \$1,200 or the difference between
\$1,200 and the amount collected through a reduction in the veteran's
military pay and any other evidence necessary to establish a valid
election within one year of the date VA requested the money and/or the
evidence.

\(3\) If applicable, the date VA collected the difference between
\$1,200 and the amount by which the servicemember's military pay was
reduced, if the provisions of paragraph (m)(2)(ii) or (m)(2)(iii) of
this section are not met; or

\(4\) If applicable, the date VA collected \$1,200, if the provisions of
paragraph (m)(2)(ii) or (m)(2)(iii) of this section are not met.
(Authority: 38 U.S.C. 3018C(a), (b), 5113)

(The Office of Management and Budget has approved information collection
requirements in this section under control number 2900-0607.)

\(n\) *Eligibility established under §21.7045(c).* The effective date of
an award of educational assistance when the veteran has established
eligibility under §21.7045(c) is as follows:

\(1\) If the veteran is not entitled to receive educational assistance
under 38 U.S.C. ch. 32 on the date he or she made a valid election to
receive educational assistance under 38 U.S.C. ch. 30, the effective
date of the award of educational assistance will be the latest of the
following.

\(i\) The commencing date as determined by paragraphs (a) through (c)
and (f) through (j) of this section; or

**21.7131-7** §21.7131---Commencing dates **21.7131-7**

\(ii\) October 23, 1992, provided that VA received the \$1,200 required
to be collected pursuant to §21.7045(c)(2) and any other evidence
necessary to establish that the election is valid before the later of:

> \(A\) October 23, 1993; or
>
> \(B\) One year from the date VA requested the \$1,200 or the evidence
> necessary to establish a valid election; or

\(iii\) The date VA received the \$1,200 required to be collected
pursuant to §21.7045(c)(2) and all other evidence needed to establish
that the election is valid, if the provisions of paragraph (n)(1)(ii) of
this section are not met.

\(2\) If the veteran is entitled to receive educational assistance under
38 U.S.C. ch. 32 on the date he or she made a valid election to receive
educational assistance under 38 U.S.C. ch. 30, the effective date of the
award of educational assistance will be the latest of the following:

\(i\) The commencing date as determined by paragraphs (a) through (c)
and (f) through (j) of this section; or

\(ii\) The date on which the veteran made a valid election to receive
educational assistance under 38 U.S.C. chapter 30 provided that VA
received the \$1,200 required to be collected pursuant to §21.7045(c)(2)
and any other evidence necessary to establish that the election is valid
before the later of:

> \(A\) One year from the date VA received the valid election; or
>
> \(B\) One year from the date VA requested the \$1,200 or the evidence
> necessary to establish a valid election; or

\(iii\) The date VA received the \$1,200 required to be collected
pursuant to §21.7045(c)(2) and all other evidence needed to establish
that the election is valid, if the provisions of paragraph (n)(2)(ii) of
this section are not met. (Authority 38 U.S.C. 3018B)

\(o\) *Eligibility established under §21.7045(e).* This paragraph must
be used to establish the effective date of an award of educational
assistance when the veteran or servicemember has established eligibility
under §21.7045(e). The commencing date of an award of educational
assistance for such a veteran or servicemember is the later of the
following:

\(1\) The commencing date as determined by paragraphs (a) through (c)
and (f) through (k) of this section; or

\(2\) The date on which:

\(i\) The servicemember's basic pay is reduced by \$2,700;

\(ii\) The Secretary of the military department concerned collected the
difference between \$2,700 and the amount by which the military
department concerned reduced the veteran's basic pay following the
veteran's election under §21.7045(e), provided that this collection was
accomplished through a method other than reducing the veteran's retired
or retainer pay; or

\(iii\) The Secretary of the military department concerned first reduced
the veteran's retired or retainer pay in order to collect the difference
between \$2,700 and the amount by which the military department
concerned reduced the veteran's basic pay following the election under
§21.7045(e). (Authority: 38 U.S.C. 3018C(e))

\(p\) *Eligibility established due to changes to §§21.7042 and 21.7044*.
The commencing date of educational assistance will be no earlier than
November 1, 2000, if a veteran would have been prevented from
establishing eligibility by one or more of the former requirements
described in paragraphs (p)(1) through (p)(4) of this section and the
veteran is enabled to establish eligibility due to the removal of the
statutory bases for those requirements. (For the purposes of this
paragraph, the applicable provisions of those former requirements appear
in the July 1, 2002 revision of the Code of Federal Regulations, title
38.)

\(1\) *A period of active duty other than the initial period was used to
establish eligibility*. The veteran was enabled to establish eligibility
by the removal of the former eligibility requirement in 38 CFR
21.7042(a)(2)(ii), 21.7042(a)(5)(iv)(A), and 21.7042(a)(5)(iv)(B),
revised as of July 1, 2002, that a veteran had to use his or her initial
period of active duty to establish eligibility for educational
assistance. (Authority: §102(e), Pub. L. 106-419, 114 Stat. 1825)

\(2\) *High school education eligibility criterion met after the
qualifying period of active duty*. The veteran was enabled to establish
eligibility by the removal of the former eligibility requirement in 38
CFR 21.7042(a)(3), 21.7042(b)(2), and 21.7042(c)(4), revised as of July
1, 2002, that before completing the period of active duty used to
establish eligibility for educational assistance, a veteran had to
complete the requirements for a secondary school diploma (or an
equivalency certificate) or successfully complete (or otherwise receive
academic credit for) 12 semester hours (or the equivalent) in a program
of education leading to a standard college degree. (Authority: §103(e),
Pub. L. 106-419, 114 Stat. 1826-27)

\(3\) *High school education eligibility criterion met after October 29,
1994*. The veteran was enabled to establish eligibility by the removal
of the former eligibility requirement in 38 CFR 21.7042(a)(6),
21.7042(b)(11), and 21.7044(b)(13), revised as of July 1, 2002, that
certain veterans meet the requirements for a secondary school diploma
(or an equivalency certificate) before October 29, 1994, in order to
establish eligibility for educational assistance. (Authority: §103(e),
Pub. L. 106-419, 114 Stat. 1826-27)

\(4\) *High school education eligibility criterion for veterans formerly
eligible under 38 U.S.C. chapter 34 met after January 1, 1990*. The
veteran was enabled to establish eligibility by the removal of the
former eligibility requirement in 38 CFR 21.7044(a)(3) and
21.7044(b)(3), revised as of July 1, 2002, that, as one of the two ways
that certain veterans could meet the educational criteria for
establishing eligibility, the veteran must before January 1, 1990, meet
the requirements for a secondary school diploma (or equivalency
certificate). (Authority: §103(e), Pub. L. 106-419, 114 Stat. 1826-27)

\(q\) *Fugitive felons*.

\(1\) An award of educational assistance allowance to an otherwise
eligible veteran may begin effective the date the warrant for the arrest
of the felon is cleared by:

> \(i\) Arrest;
>
> \(ii\) Surrendering to the issuing authority;
>
> \(iii\) Dismissal; or
>
> \(iv\) Court documents (dated after the warrant) showing the veteran
> is no longer a fugitive.

\(2\) An award of educational assistance allowance to a dependent who is
otherwise eligible to transferred entitlement may begin effective the
date the warrant is cleared by:

> \(i\) Arrest;
>
> \(ii\) Surrendering to the issuing authority;
>
> \(iii\) Dismissal; or
>
> \(iv\) Court documents (dated after the warrant) showing the
> individual is no longer a fugitive. (Authority: 38 U.S.C. 5313B)

\(r\) *Spouse eligible for transferred entitlement*. If a spouse is
eligible for transferred entitlement under §21.7080, the commencing date
of the award of educational assistance will be no earlier than the
latest of the following dates:

\(1\) The date the Secretary of the service department concerned
approves the transferor to transfer entitlement;

\(2\) The date the transferor completes 6 years of service in the Armed
Forces;

\(3\) The date the transferor specified in his or her designation of
transfer; or

\(4\) The date the spouse first meets the definition of spouse in
§3.50(a) of this chapter. (Authority: 38 U.S.C. 3020)

\(s\) *Child eligible for transferred entitlement*. If a child is
eligible for transferred entitlement under §21.7080, the commencing date
of the award of educational assistance will be no earlier than the
latest of the following dates:

\(1\) The date the Secretary of the service department concerned
approves the transferor to transfer entitlement;

\(2\) The date the transferor completes 10 years of service in the Armed
Forces;

\(3\) The date the transferor specified in his or her designation of
transfer;

\(4\) The date the child first meets the definition of child in §3.50(a)
of this chapter;

\(5\) Either:

\(i\) The date the child completes the requirements of a secondary
school diploma (or equivalency certificate); or

\(ii\) The date the child attains age 18. (Authority: 38 U.S.C. 3020)

\[53 FR 1757, Jan. 22, 1988, as amended at 55 FR 28386, July 11, 1990,
56 FR 11672, Mar. 20, 1991; 57 FR 40615, Sept. 4, 1992; 61 FR 6788, Feb.
22, 1996; 62 FR 55519, Oct. 27, 1992; 63 FR 34132, June 23, 1998; 64 FR
23773, May 4, 1999; 65 FR 5787, Feb. 7, 2000; 66 FR 38939, July 26,
2001; 66 FR 39280, July 30, 2001; 66 FR 42586, Aug. 13, 2001; 68 FR
34331, June 9, 2003; 70 FR 25787, May 16, 2005; 71 FR 75677, Dec. 18,
2006\]

**Supplement *Highlights* references**: 23(1), 35(1), 39(3), 42(1),
47(1), 56(2), 56(3), 62(2), 68(1), 71(2).

Next Section is §21.7133

**§21.7133 Suspension or discontinuance of payments.**

VA may suspend or discontinue payments of educational assistance. In
doing so, VA will apply §§21.4210 through 21.4216. (Authority: 38 U.S.C.
3034, 3690)

\[53 FR 1757, Jan. 22, 1988, as amended at 63 FR 35837, July 1, 1998\]

**Supplement *Highlights* reference**: 39(4)

*Next Section is §21.7135*

**§21.7135 Discontinuance dates.**

The effective date of reduction or discontinuance of educational
assistance will be as stated in this section. Reference to reduction of
educational assistance due to the loss of a dependent only applies to
veterans who were eligible to receive educational assistance allowance
under 38 U.S.C. chapter 34 on December 31, 1989. No other veteran or
servicemember will have his or her educational assistance reduced due to
a loss of a dependent. If more than one type of reduction or
discontinuance is involved, the earliest date will control.

\(a\) *Death of veteran or servicemember*.

\(1\) If the veteran or servicemember receives an advance payment
pursuant to 38 U.S.C. 3680(d) and dies before the period covered by the
advance payment ends, the discontinuance date of educational assistance
shall be the last date of the period covered by the advance payment.

\(2\) In all other cases if the veteran or servicemember dies while
pursuing his or her program of education, the discontinuance date of
educational assistance shall be the last date of attendance.

\(b\) *Death of dependent.* When a veteran's dependent dies, and the
veteran has been receiving additional educational assistance based on
the dependent, the effective date of reduction of the veteran's
educational assistance shall be the last day of the month in which the
death occurs. (Authority: 38 U.S.C. 5112(b), 5113; Pub. L. 98-525)

\(c\) *Divorce.* If the veteran becomes divorced, the effective date of
reduction of his or her educational assistance is the last day of the
month in which the divorce occurs. (Authority: 38 U.S.C. 5112(b), 5113;
Pub. L. 98-525)

\(d\) *Dependent child.* If the veteran's award of educational
assistance must be reduced because his or her dependent child ceases to
be dependent, the effective date of reduction will be as follows.

\(1\) If the veteran's child marries, the effective date of reduction
will be the last day of the month in which the marriage occurs.

\(2\) If the veteran's child reaches age 18, the effective date of
reduction will be the day preceding the dependent child's 18th birthday.

\(3\) If the veteran is receiving additional educational assistance
based on a child's school attendance between the child's 18th and 23rd
birthdays, the effective date of reduction of the veteran's educational
assistance will be the last day of the month in which the dependent
child stops attending school, or the day before the dependent child's
23rd birthday, whichever is earlier.

\(4\) If the veteran is receiving additional educational assistance
because his or her child is helpless, the effective date of reduction
will be the last day of the month following 60 days after VA notifies
the veteran that the dependent child's helplessness has ceased.
(Authority: 38 U.S.C. 5112(b), 5113; Pub. L. 98-525)

\(e\) *Course discontinued, course interrupted, course terminated,
course not satisfactorily completed or withdrawn from.*

\(1\) If the veteran or servicemember, for reasons other than being
called or ordered to active duty, withdraws from all courses or receives
all nonpunitive grades, and in either case there are no mitigating
circumstances, VA will terminate or reduce educational assistance
effective the first date of the term in which the withdrawal occurs or
the first date of the term for which nonpunitive grades are assigned.
(Authority: 38 U.S.C. 3680(a); Pub. L. 102-127 (Aug. 1, 1990))

\(2\) If the veteran or servicemember withdraws from all courses with
mitigating circumstances or withdraws from all courses such that a
punitive grade is or will be assigned for those courses or the veteran
withdraws from all courses because he or she is ordered to active duty,
VA will terminate educational assistance for:

\(i\) Residence training: last date of attendance; and

\(ii\) Independent study: official date of change in status under the
practices of the educational institution.

\(3\) When a veteran or servicemember withdraws from a correspondence
course, VA will terminate educational assistance effective the date the
last lesson is serviced.

\(4\) When a veteran or servicemember withdraws from an apprenticeship
or other on-the-job training VA will terminate educational assistance
effective the date of last training. (Authority: 38 U.S.C. 3034,
3680(a); Pub. L. 98-525, Pub. L. 99-576)

\(5\) When a veteran or servicemember withdraws from a flight course, VA
will terminate educational assistance effective the date of last
instruction. (Authority: 38 U.S.C. 3034(f))

\(f\) *Reduction in the rate of pursuit of the course.* If the veteran
or servicemember reduces the rate of training by withdrawing from part
of a course, but continues training in part of the course, the
provisions of this paragraph apply.

\(1\) If the reduction in the rate of training occurs other than on the
first date of the term, VA will reduce the veteran's or servicemember's
educational assistance effective the date on which the withdrawal occurs
when either:

\(i\) A nonpunitive grade is assigned for the part of the course from
which he or she withdraws; and

\(A\) The veteran or servicemember withdraws because he or she is
ordered to active duty; or

\(B\) The withdrawal occurs with mitigating circumstances; or

\(ii\) A punitive grade is assigned for the part of the course from
which the reservist withdraws.

\(2\) VA will reduce educational assistance effective the first date of
the enrollment in which the reduction occurs when:

\(i\) The reduction occurs on the first date of the term; or

\(ii\) The veteran or servicemember:

\(A\) Receives a nonpunitive grade for the part of the course from which
he or she withdraws; and

\(B\) Withdraws without mitigating circumstances; and

\(C\) Does not withdraw because he or she is ordered to active duty.
(Authority: 38 U.S.C. 3680(a))

\(3\) A veteran or servicemember, who enrolls in several subjects and
reduces his or her rate of pursuits by completing one or more of them
while continuing training in the others, may receive an interval payment
based on the subjects completed if the requirements of §21.7140(d) are
met. If those requirements are not met, VA will reduce the individual's
educational assistance effective the date the subject or subjects were
completed. (Authority: 38 U.S.C. 3034, 3680(a), 5113(b))

\(g\) *End of course or period of enrollment.* If a veteran's or
servicemember's course or period of enrollment ends, the effective date
of reduction or discontinuance of his or her award of educational
assistance will be the ending date of the course or period of enrollment
as certified by the educational institution. (Authority: 38 U.S.C.
3034(b), 3680; Pub. L. 98-525)

\(h\) *Nonpunitive grade.*

\(1\) If the veteran or servicemember does not withdraw, but
nevertheless receives a nonpunitive grade in a particular course, VA
will reduce his or her educational assistance effective the first date
of enrollment for the term In which the grade applies, when no
mitigating circumstances are found.

\(2\) If an individual does not withdraw, but nevertheless receives a
nonpunitive grade in a particular course, VA will reduce his or her
educational assistance effective the last date of attendance when
mitigating circumstances are found.

\(3\) If an individual receives a nonpunitive grade through
nonattendance in a particular course, VA will reduce the individual's
educational assistance effective the last date of attendance when
mitigating circumstances are found.

\(4\) If an individual receives a nonpunitive grade through
nonattendance in a particular course, VA will reduce the individual's
educational assistance effective the first date of enrollment in which
the grade applies, when no mitigating circumstances are found.
(Authority: 38 U.S.C. 3034, 3680; Pub. L. 98-525)

\(i\) *Discontinued by VA.* If VA discontinues payment to a veteran or
servicemember following the procedures stated in §21.4211(d) and (g),
the date of discontinuance of payment of educational assistance will be:

\(1\) Date on which payments first were suspended by the Director of a
VA facility as provided in §21.4210, if the discontinuance was preceded
by such a suspension.

\(2\) End of the month in which the decision to discontinue, made by VA
under §21.7133 or §21.4211(d) and (g), is effective, if the Director of
a VA facility did not suspend payments before the discontinuance.
(Authority: 38 U.S.C. 3034, 3680; Pub. L. 98-525)

\(j\) *Disapproval by State approving agency.* If a State approving
agency disapproves a course in which a veteran or servicemember is
enrolled, the date of discontinuance of payment of educational
assistance will be:

\(1\) Date on which payments first were suspended by the director of a
VA facility as provided in §21.4210, if disapproval was preceded by such
a suspension.

\(2\) End of the month in which disapproval is effective or VA receives
notice of the disapproval, whichever is later, provided that the
Director of a VA facility did not suspend payments before the
disapproval. (Authority: 38 U.S.C. 3034, 3672(a), 3690; Pub. L. 98-525)

\(k\) *Disapproval by VA.* If VA disapproves a course in which a veteran
or servicemember is enrolled, the effective date of discontinuance of
payment of educational assistance will be:

\(1\) The date on which the Director of a VA facility first suspended
payments, as provided in §21.4210, if such a suspension preceded the
disapproval.

\(2\) The end of the month in which the disapproval occurred, provided
that the Director of a VA facility did not suspend payments before the
disapproval. (Authority: 38 U.S.C. 3034, 3671(b), 3672(a), 3690; Pub. L.
98-525)

\(l\) *Unsatisfactory progress, conduct or attendance*. If a veteran's
or servicemember's progress, conduct or attendance is unsatisfactory,
his or her educational assistance shall be discontinued effective the
earlier of the following:

\(1\) The date the educational institution discontinues the veteran's or
servicemember's enrollment, or

\(2\) The date on which the veteran's or servicemember's progress,
conduct or attendance becomes unsatisfactory according to the
educational institution's regularly established standards of progress,
conduct or attendance. (Authority: 38 U.S.C. 3034, 3474)

\(m\) *Required certifications not received after certification of
enrollment.* If VA does not timely receive the veteran's or
servicemember's certification of attendance or does not timely receive
the educational institution's endorsement of the certification or the
educational institution's certification of attendance or pursuit, VA
will assume that the veteran or servicemember has withdrawn. VA will
apply the provisions of paragraph (e) of this section. VA considers the
receipt of a certificate of attendance to be timely if it is received
within 60 days of the last day of the month for which attendance is to
be certified. (Authority: 38 U.S.C. 3034(b); Pub. L. 98-525)

\(n\) *False or misleading statements.* If educational assistance is
paid as the result of false or misleading statements, see §21.7158.
(Authority: 38 U.S.C. 3034, 3690; Pub. L. 98-525)

\(o\) *Conflicting interests (not waived).* If an educational
institution and VA have conflicting interests as provided in §21.4005
and §21.7305, and VA does not grant the veteran a waiver, the date of
discontinuance shall be 30 days after the date of the letter notifying
the veteran. (Authority: 38 U.S.C. 3034, 3683, Pub. L. 98-525)

\(p\) *Incarceration in prison or penal institution for conviction of a
felony.*

\(1\) The provisions of this paragraph apply to a veteran or
servicemember whose educational assistance must be discontinued or who
becomes restricted to payment of educational assistance at a reduced
rate under §21.7139 (c) and (d).

\(2\) The reduced rate or discontinuance will be effective the latest of
the following dates:

\(i\) The first day on which all or part of the veteran's or
servicemember's tuition and fees were paid by a Federal, State or local
program.

\(ii\) The date the veteran or servicemember is incarcerated in prison
or penal institution, or

\(iii\) The commencing date of the award as determined by §21.7131.
(Authority: 38 U.S.C. 3034, 3482(g); Pub. L. 98-525)

\(q\) *Active duty.* If a veteran reenters on active duty, the effective
date of reduction of his or her award of educational assistance shall be
the day before the veteran's entrance on active duty. (This reduction
does not apply to brief periods of active duty for training if the
educational institution permits absence for active duty for training
without considering the veteran's pursuit of a program of education to
be interrupted). (Authority: 38 U.S.C. 3032)

\(r\) Record-purpose charge against entitlement under 38 U.S.C. chapter
34 equals entitlement that remained on December 31, 1989. An individual,
who is receiving basic educational assistance at the rates stated in
§21.7137(a), will have his or her award reduced to the rates found in
§21.7136(a) effective the date the total of the individual's
record-purpose charges against his or her entitlement under 38 U.S.C.
chapter 34 equals the entitlement to that benefit which the individual
had on December 31, 1989. (Authority: 38 U.S.C. 30159(c); Pub. L.
98-525)

\(s\) *Exhaustion of entitlement under 38 U.S.C. chapter 30.*

\(1\) If an individual who is enrolled in an educational institution
regularly operated on the quarter or semester system exhausts his or her
entitlement under 38 U.S.C. chapter 30, the discontinuance date shall be
the last day of the quarter or semester in which entitlement is
exhausted.

\(2\) If an individual who is enrolled in an educational institution not
regularly operated on the quarter or semester system exhausts his or her
entitlement under 38 U.S.C. chapter 30 after more than half of the
course is completed, the discontinuance date shall be the earlier of the
following:

\(i\) The last day of the course, or

\(ii\) 12 weeks from the day the entitlement is exhausted.

\(3\) If an individual who is enrolled in an educational institution not
regularly operated on the quarter or semester system exhausts his or her
entitlement under 38 U.S.C. chapter 30 before completing the major
portion of the course, the discontinuance date will be the date the
entitlement is exhausted. (Authority: 38 U.S.C. 3031(e), Pub. L. 98-525)

\(t\) *Eligibility expires.* If the veteran is pursuing a course on the
date of expiration of eligibility as determined under §21.7050 or
§21.7051 VA will discontinue educational assistance effective the day
preceding the end of the eligibility period. (Authority: 38 U.S.C.
3034(a), Pub. L. 98-525)

\(u\) *Veteran fails to participate satisfactorily in the Selected
Reserve.* If a veteran is attempting to establish eligibility through
service on active duty combined with service in the Selected Reserve,
and he or she fails to participate satisfactorily in the Selected
Reserve before completing the required service in the Selected Reserve,
the effective date of reduction of the award of educational assistance
will be the date the Secretary determines that he or she failed to
participate satisfactorily. (Authority: 38 U.S.C. 3012; Pub. L. 98-525)

\(v\) *Error---payee's or administrative.*

\(1\) When an act of commission or omission by a payee or with his or
her knowledge results in an erroneous award of educational assistance,
the effective date of the reduction or discontinuance will be the
effective date of the award, or the day before the act, whichever is
later, but not before the date on which the award would have ended had
the act not occurred.

\(2\) When VA, the Department of Defense, or the Department of
Transportation makes an administrative error or error in judgment that
is the sole cause of an erroneous award, VA must reduce or terminate the
award effective the date of last payment. (Authority: 38 U.S.C. 5112(b),
5113)

\(w\) *Forfeiture for fraud* If a veteran's or servicemember's
educational assistance must be forfeited due to fraud, the effective
date of discontinuance shall be the later of:

\(1\) The effective date of the award, or

\(2\) The day before the date of the fraudulent act. (Authority: 38
U.S.C. 6103; Pub. L. 98-525)

\(x\) *Forfeiture for treasonable acts or subversive activities.* If a
veteran's or servicemember's educational assistance must be forfeited
due to treasonable acts or subversive activities, the effective date of
discontinuance shall be the later of:

\(1\) The effective date of the award, or

\(2\) The date before the date the veteran or servicemember committed
the treasonable act or subversive activities for which he or she was
convicted. (Authority: 38 U.S.C. 6104, 6105; Pub. L. 98-525)

\(y\) *Change in law or VA issue or interpretation.* If there is a
change in applicable law or VA issue, or in the Department of Veterans
Affairs' application of the law or VA issue, VA will use the provisions
of §3.114(b) of this chapter to determine the date of discontinuance of
the veteran's or servicemember's educational assistance. (Authority: 38
U.S.C. 5112, 5113; Pub. L. 98-525)

\(z\) *Independent study course loses accreditation*. Except as
otherwise provided in §21.7120(d), if the veteran or servicemember is
enrolled in a course offered in whole or in part by independent study,
and the course loses its accreditation (or the educational institution
offering the course loses its accreditation), the date of reduction or
discontinuance will be the effective date of the withdrawal of
accreditation by the accrediting agency. (Authority: 38 U.S.C. 3014,
3034, 3676, 3680A(a))

(aa) *Fugitive felons*.

\(1\) VA will not award educational assistance allowance to an otherwise
eligible veteran for any period after December 26, 2001, during which
the veteran is a fugitive felon. The date of discontinuance of an award
of educational assistance allowance to a veteran who is a fugitive felon
is the later of:

\(i\) The date of the warrant for the arrest of the felon; or

\(ii\) December 27, 2001.

\(2\) VA will not award educational assistance allowance to a dependent
who is otherwise eligible to transferred entitlement if the dependent is
a fugitive felon or if the veteran who transferred the entitlement is a
fugitive felon. The date of discontinuance of an award of educational
assistance allowance to a dependent is the later of:

\(i\) The date of the warrant; or

\(ii\) December 27, 2001. (Authority: 38 U.S.C. 5313B)

(bb) *Reduction following loss of increase* ("*kicker*") *for Selected
Reserve service*. If a veteran is entitled to an increase ("kicker") in
the monthly rate of basic educational assistance as provided in
§21.7136(g) or §21.7137(e), due to service in the Selected Reserve, and
loses that entitlement, the effective date for the reduction in the
monthly rate payable is the date, as determined by the Secretary of the
military department concerned, that the veteran is no longer entitled to
the increase ("kicker"). (Authority: 10 U.S.C. 16131)

\(cc\) *Except as otherwise provided.* If a veteran's or servicemember's
educational assistance must be discontinued for any reason other than
those stated in the other paragraphs of this section, VA will determine
the date of discontinuance of educational assistance on the basis of
facts found. (Authority: 38 U.S.C. 5112(a), 5113; Pub. L. 98-525)

(dd) *Dependent exhausts transferred entitlement*. The discontinuance
date of an award of educational assistance to a dependent, who exhausts
the entitlement transferred to him or her is the date he or she exhausts
the entitlement. (Authority: 38 U.S.C. 3020)

(ee) *Transferor revokes transfer of entitlement*. If the transferor
revokes a transfer of entitlement, the dependent's date of
discontinuance is the effective date of the revocation of transfer as
determined under §21.7080(g)(2). (Authority: 38 U.S.C. 3020)

(ff) *Transferor fails to complete additional active duty service
requirement*. VA will discontinue each award of educational assistance
given to a dependent, effective the first date of each such award when:

\(1\) The transferor fails to complete the additional active duty
service requirement that afforded him or her the opportunity to transfer
entitlement to educational assistance; and

\(2\) The service department discharges the transferor for a reason
other than one of the reasons stated in §21.7080(m)(1). (Authority: 38
U.S.C. 3020)

(gg) *Spouse eligible for transferred entitlement and transferor
divorce*. If a spouse eligible for transferred entitlement and the
transferor divorce, the spouse's discontinuance date is the date of the
divorce. (Authority: 38 U.S.C. 101(31), 103, 3020)

(hh) *Child eligible for transferred entitlement marries*. If a child
eligible for transferred entitlement marries, the date of discontinuance
is the date the child marries. (Authority: 38 U.S.C. 101(4), 3020)

\(ii\) *Stepchild eligible for transferred entitlement no longer member
of transferor's household*. If a stepchild eligible for transferred
entitlement ceases to be a member of the transferor's household, the
date of discontinuance is the date the stepchild was no longer a member
of the transferor's household. See §21.7080(c)(4). (Authority: 38 U.S.C.
101(4), 3020)

\[53 FR 1757, Jan. 22, 1988, as amended at 55 FR 28386, July 11, 1990;
57 FR 15024, April 24, 1992; 58 FR 26242, May 3, 1993; 61 FR 6788, Feb.
22, 1996; 61 FR 26116, May 24, 1996; 62 FR 55519, Oct. 27, 1997; 63 FR
35837, July 1, 1998; 64 FR 38577, July 19, 1999; 64 FR 51901, Sept. 27,
1999; 66 FR 38939, July 26, 2001; 66 FR 42586, Aug. 13, 2001; 70 FR
25787, May 16, 2005; 71 FR 75677, Dec. 18, 2006\]

**Supplement *Highlights* references**: 6(3), 23(1), 27(1), 35(1),
39(4), 44(1), 46(1), 56(2), 68(1), 71(2).

**§21.7136 Rates of payment of basic educational assistance.**

The monthly rate of educational assistance payable to a veteran or
servicemember depends in part upon the service requirements he or she
met to establish eligibility for that educational assistance.

\(a\) *Service requirements for higher rates*. The monthly rate of basic
educational assistance payable to a veteran or servicemember shall be
the rate stated in paragraph (b) of this section when:

\(1\) The veteran has established eligibility for educational assistance
under §21.7045; or

\(2\) The veteran has established eligibility under §21.7042, and one of
the following sets of circumstances exist.

\(i\) The veteran's qualifying obligated period of active duty is at
least three years; or

\(ii\) The veteran's qualifying obligated period of active duty is at
least two years and less than three years and either the veteran has
served or is committed to serve in the Selected Reserve for a period of
at least four years, or the veteran was committed to serve in the
Selected Reserve for a period of at least four years but failed to
complete four years service for one of the reasons stated in
§21.7042(b)(7)(i) or (iii); or

\(iii\) The veteran's qualifying obligated period of active duty is at
least two years and less than three years and:

\(A\) The basic educational assistance is payable for training received
after August 31, 1993;

\(B\) The veteran's continuous active duty service beginning on the date
of the commencement of his or her qualifying obligated period of active
duty is at least three years and upon completion of that continuous
period of active duty the veteran either:

(*1*) Continues on active duty; or

(*2*) Is discharged from active duty with an honorable discharge; or

(*3*) Is released after service on active duty characterized by the
Secretary concerned as honorable service and is placed on the retired
list, transferred to the Fleet Reserve or the Fleet Marine Corps
Reserve, placed on the temporary disability retired list; or

(*4*) Is released from active duty for further service in a reserve
component of the Armed Forces after service on active duty characterized
by the Secretary concerned as honorable service. (Authority: 38 U.S.C.
3015(a))

\(b\) *Rates*.

\(1\) Except as elsewhere provided in this section or in §21.7139, the
monthly rate of basic educational assistance payable for training that
occurs after September 30, 2004, to a veteran whose service is described
in paragraph (a) of this section, is the rate stated in the following
table:

*Training Monthly rate*

> Full time\...\...\...\...\...\...\...\...\...\...\...\...\...
> \$1004.00
>
> 3/4
> time\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...
> 753.00
>
> 1/2
> time\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....
> 502.00
>
> Less than 1/2 time but more than 1/4 502.00
>
> 1/4 time\...\...\...\...\...\...\...\...\...\...\...\...\...\.....
> 251.00

(Authority: 38 U.S.C. 3015.)

\(2\) If a veteran's service is described in paragraph (a) of this
section, the monthly rate of basic educational assistance payable to the
veteran for pursuit of apprenticeship or other on-the-job training that
occurs after September 30, 2004, is the rate stated in the following
table:

*Training period Monthly rate*

> First six months of training\...\...\...\...\...\...\...\...\....
> \$753.00
>
> Second six months of training 552.20
>
> Remaining pursuit of training 351.40

(Authority: 38 U.S.C. 3015, 3032(c).)

\(3\) If a veteran's service is described in paragraph (a) of this
section, the monthly rate of basic educational assistance payable to the
veteran for pursuit of a cooperative course is \$1004.00 for training
that occurs after September 30, 2004. (Authority: 38 U.S.C. 3015.)

\(c\) *Rates for some veterans whose qualifying obligated period of
active duty is less than three years*. If a veteran has established
eligibility under §21.7042, but the veteran's service is not described
in paragraph (a)(2) of this section, the monthly rate of educational
assistance payable to the veteran will be determined by this paragraph.

\(1\) Except as elsewhere provided in this section or in §21.7139, the
monthly rate of basic educational assistance payable to a veteran for
training that occurs after September 30, 2004 is the rate stated in the
following table:

*Training Monthly rate*

> Full time\...\...\...\...\...\...\...\...\...\...\...\...\... \$816.00
>
> 3/4
> time\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...
> 612.00
>
> 1/2
> time\...\...\...\...\...\...\...\...\...\...\...\...\...\...\...\.....
> 408.00
>
> Less than 1/2 time but more than 1/4 408.00
>
> 1/4 time or
> less\...\...\...\...\...\...\...\...\...\...\...\...\...\..... 204.00

(Authority: 38 U.S.C. 3015)

\(2\) The monthly rate of basic educational assistance payable to a
veteran for pursuit of apprenticeship or other on-the-job training that
occurs after September 30, 2004 is the rate stated in the following
table:

*Training period Monthly rate*

> First six months of training\...\...\...\...\...\...\...\...\....
> \$612.00
>
> Second six months of training 448.80
>
> Remaining pursuit of training 285.60

(Authority: 38 U.S.C. 3015, 3032(c).)

\(3\) The monthly rate of basic educational assistance payable to a
veteran for pursuit of a cooperative course is \$816.00 for training
that occurs after September 30, 2004. (Authority: 38 U.S.C. 3015.)

\(d\) *Increase in basic educational assistance rates* ("*kicker*"). The
Secretary concerned may increase the amount of basic educational
assistance payable to an individual who has a skill or specialty which
the Secretary concerned designates as having a critical shortage of
personnel or for which it is difficult to recruit. The amount of the
increase is set by the Secretary concerned, but (except as provided in
paragraphs (f) and (g) of this section):

\(1\) For individuals, who first become members of the Armed Forces
before November 29, 1989, (other than those pursuing cooperative
training before October 9, 1996, or apprenticeship or other on-job
training) it may not exceed:

\(i\) \$400 per month for full-time training,

\(ii\) \$300 per month for three-quarter-time training,

\(iii\) \$200 per month for one-half-time training, or for training
which is less than one-half, but more than one-quarter-time, or

\(iv\) \$100 per month for one-quarter-time training or less.

\(2\) For individuals, who become members of the Armed Forces during the
period beginning November 29, 1989 and ending September 30, 1998 (other
than those pursuing cooperative training before October 9, 1996, or
apprenticeship or other on-job training), it may not exceed:

\(i\) \$700 per month for full-time training,

\(ii\) \$525 per month for three-quarter-time training,

\(iii\) \$350 per month for one-half-time training or for training which
is less than one-half, but more than one-quarter-time, or

\(iv\) \$175 per month for one-quarter-time training or less.

\(3\) For individuals, who first become members of the Armed Forces
after September 30, 1998, (other than those pursuing apprenticeship or
other on-job training), it may not exceed:

> \(i\) \$950.00 per month for full-time training,
>
> \(ii\) \$712.50 per month for three-quarter-time training,
>
> \(iii\) \$475.00 per month for one-half-time training or for training
> which is less than one-half, but more than one-quarter-time, or
>
> \(iv\) \$237.50 per month for one-quarter-time training or less.
> (Authority: 38 U.S.C. 3015, 3032)

\(4\) For individuals who first become members of the Armed Forces
before November 29, 1989, and who are pursuing an apprenticeship or
other on-job training, it may not exceed:

\(i\) \$300 per month during the first six months of training,

\(ii\) \$220 per month during the second six months of training, and

\(iii\) \$140 per month during the remaining months of training.

\(5\) For individuals, who first become members of the Armed Forces
during the period beginning November 29, 1989 and ending September 30,
1998, and, who are pursuing an apprenticeship or other on-job training,
it may not exceed:

\(i\) \$525 per month during the first six months of training,

\(ii\) \$385 per month during the second six months of training, and

\(iii\) \$245 per month during the remaining months of training.

\(6\) For individuals, who first become members of the Armed Forces
after September 30, 1998, and who are pursuing apprenticeship or other
on-job training, it may not exceed:

\[*Note*: No text for (i)-(iv) was provided in the rule publication\]

\(v\) \$712.50 per month during the first 6 months of training,

\(vi\) \$522.50 per month during the second 6 months of training, or

\(vii\) \$332.50 per month during the remaining months of training.
(Authority: 38 U.S.C. 3015, 3032)

\(7\) For individuals who first become members of the Armed Forces
before November 29, 1989, and who are pursuing cooperative training, it
may not exceed \$320 per month for training received before October 9,
1996.

\(8\) For individuals who first become members of the Armed Forces after
November 28, 1989, and who are pursuing cooperative training, it may not
exceed \$560 per month for training received before October 9, 1996.
(Authority: §108(a)(2), Pub. L. 100-689, 102 Stat. 4170; §5(a), Pub. L.
102-83, 105 Stat. 406)

\(e\) *Less than one-half-time training and rates for servicemembers*.
Except as provided in paragraph (g) or (h) of this section, the monthly
rate for a veteran who is pursuing a course on a less than one-half-time
basis or the monthly rate for a servicemember who is pursuing a program
of education is the lesser of:

\(1\) The monthly rate stated in either paragraph (b) or (c) of this
section (as determined by the veteran's or servicemember's initial
obligated period of active duty) plus any additional amounts that may be
due under paragraph (d) or (f) of this section, or

\(2\) The monthly rate of the cost of the course. If there is no cost
for the course, educational assistance is not payable. (Authority: 38
U.S.C. 3015, 3032)

\(f\) *Increase in basic educational assistance rates* ("*kicker*") *for
those eligible under §21.7045*. A veteran who formerly was eligible to
receive educational assistance under 38 U.S.C. ch. 32, and becomes
eligible for educational assistance under 38 U.S.C. ch. 30 as described
in §21.7045(b)(1)(ii), (c)(1)(ii), or (e)(2) may receive an increase in
basic educational assistance allowance (kicker). The increase will be
determined as follows.

\(1\) The basis of the increase will be that portion of the amount of
money:

\(i\) Which remains in the VEAP fund after the veteran has been paid all
assistance due him or her under 38 U.S.C. ch. 32 and refunded all of his
or her contributions to the VEAP fund, and

\(ii\) Which represents the Secretary of Defense's additional
contributions for the veteran as stated in §21.5132(b)(3) of this part.

\(2\) For a student pursuing a program of education by residence
training:

\(i\) VA will determine the monthly rate of the increase by dividing the
amount of money described in paragraph (e)(1) of this section by the
number of months of entitlement to educational assistance under 38
U.S.C. chapter 30 which the veteran has at the time his eligibility for
benefits under 38 U.S.C. chapter 30 is first established;

\(ii\) VA will use the monthly rate of the increase determined in
paragraph (e)(2)(i) of this section if the veteran is pursuing his or
her program full time;

\(iii\) VA will multiply the monthly rate determined by paragraph
(e)(2)(i) of this section by .75 for a student pursuing his or her
program three-quarter time;

\(iv\) VA will multiply the monthly rate determined by paragraph
(e)(2)(i) of this section by .5 for a student pursuing his or her
program half time; and

\(v\) VA will multiply the monthly rate determined by paragraph
(e)(2)(i) of this section by .25 for a student pursuing his or her
program less than one-half time.

\(3\) For a veteran pursuing cooperative training VA will multiply the
rate determined by paragraph (e)(2)(i) of this section by .8 for
training received before October 9, 1996.

\(4\) For a veteran pursuing a program of apprenticeship or other on-job
training VA will multiply the monthly rate determined by paragraph
(e)(2)(i) of this section:

\(i\) By .75 for a veteran in the first six months of pursuit of
training,

\(ii\) By .55 for a veteran in the second six months of pursuit of
training, and

\(iii\) By .35 for a veteran in the remaining months of pursuit of
training. (Authority: 38 U.S.C. 3015(e))

\(g\) *Increase ("kicker") in basic educational assistance rates payable
for service in the Selected Reserve*.

\(1\) The Secretary of the service department concerned may increase the
amount of basic educational assistance payable under paragraph (b), (c),
(d), (e), or (f) of this section, as appropriate. The increase
("kicker") is payable to an individual, who has a skill or specialty in
which there is a critical shortage of personnel or for which it is
difficult to recruit, or, in the case of critical units, retain
personnel, if the individual:

> \(i\) Establishes eligibility for education under §§21.7042(a),
> 21.7045, or 21.7080; and
>
> \(ii\) Meets the criteria of §21.7540(a)(1) with respect to service in
> the Selected Reserve.

\(2\) The Secretary of the military department concerned:

> \(i\) Will, for such an increase ("kicker"), set an amount of the
> increase ("kicker") for full-time training, but the increase
> ("kicker") may not exceed \$350 per month; and
>
> \(ii\) May set the amount of the increase ("kicker") payable, for an
> individual pursuing a program of education less than full time or
> pursuing a program of apprenticeship or other on-job training, at an
> amount less than the amount described in paragraph (g)(2)(i) of this
> section.

\(h\) *Increase in monthly rates due to contributions*. Effective May 1,
2001, a servicemember who establishes eligibility under §21.7042(a),
(b), or (c) may contribute up to \$600 to the Secretary of the military
department concerned in multiples of \$20.

\(1\) VA will increase the monthly rate provided in paragraphs (b)(1)
through (b)(4) and (c)(1) through (c)(4) of this section by:

> \(i\) \$5 for every \$20 an individual pursuing a program of education
> full time has contributed;
>
> \(ii\) \$3.75 for every \$20 an individual pursuing a program of
> education three-quarter time has contributed;
>
> \(iii\) \$2.50 for every \$20 an individual pursuing a program of
> education half time or less than one-half time but more than
> one-quarter time has contributed; and
>
> \(iv\) \$1.25 for every \$20 an individual pursuing a program of
> education one-quarter time has contributed.

\(2\) If a veteran is pursuing an apprenticeship or other on-job
training:

\(i\) During the first 6 months of the veteran's pursuit of training, VA
will increase the monthly rate provided in paragraphs (b)(5) through
(b)(8) and (c)(5) through (c)(8) of this section by \$3.75 for every
\$20 the individual contributed;

\(ii\) During the second 6 months of the veteran's pursuit of training,
VA will increase the monthly rate provided in paragraphs (b)(5) through
(b)(8) and (c)(5) through (c)(8) of this section by \$2.75 for every
\$20 the individual contributed; and

\(iii\) During the remaining months of the veteran's pursuit of
training, VA will increase the monthly rate provided in paragraphs
(b)(5) through (b)(8) and (c)(5) through (c)(8) of this section by
\$1.75 for every \$20 the individual contributed.

\(3\) VA will increase the monthly rate provided in paragraphs (b)(9) or
(c)(9) of this section by \$5 for every \$20 the veteran has
contributed. (Authority: 38 U.S.C. 3015(g))

\[55 FR 28386, July 11, 1990, as amended at 55 FR 50324, Dec. 6, 1990;
56 FR 20135, May 2, 1991; 57 FR 11911, April 8, 1992; 57 FR 57104, Dec.
3, 1992; 59 FR 24053, May 10, 1994; 61 FR 6788, Feb. 22, 1996; 61 FR
15191, Apr. 5, 1996; 61 FR 24237, May 14, 1996; 62 FR 14824, Mar. 28,
1997; 62 FR 55519, Oct. 27, 1997; 62 FR 58655, Oct. 30, 1997; 64 FR
31694, June 14, 1999; 65 FR 44980, July 20, 2000; 65 FR 55193, Sept. 13,
2000; 66 FR 32228, June 14, 2001; 68 FR 34322, June 9, 2003; 68 FR
34331, June 9, 2003; 68 FR 37206, June 23, 2003; 69 FR 74978, Dec. 15,
2004; 71 FR 75677, Dec. 18, 2006\]

**Supplement *Highlights* references**: 12(3), 23(1), 25(2), 26(2),
30(1), 35(1, 3), 43(1), 51(1), 55(2), 62(1,2), 67(1), 71(2).

**§21.7137 Rates of payment of basic educational assistance for
individuals with remaining entitlement under 38 U.S.C. chapter 34.**

\(a\) *Minimum rates*.

\(1\) Except as elsewhere provided in this section, the monthly rate of
basic educational assistance for training that occurs after September
30, 2004 is the rate stated in the following table:

*Monthly Rate*

*Additional*

*Training No One Two for each*

*dependents dependent dependents additional*

*dependent*

Full-time \$1,192.00 \$1,228.00 \$1,259.00 \$16.00

3/4 time 894.50 921.00 944.50 12.00

1/2 time 596.00 614.00 629.50 8.50

Less than 1/2 but

more than 1/4 time 596.00 596.00 596.00 0

1/4 time or less 298.00 298.00 298.00 0

(Authority: 38 U.S.C. 3015)

\(2\) For veterans pursuing apprenticeship or other on-the-job training,
the monthly rate of basic educational assistance for training that
occurs after September 30, 2004 is the rate stated in the following
table:

*Monthly Rate*

*Additional*

*Training No One Two for each*

*dependents dependent dependents additional*

*dependent*

1st six months of pursuit

of program \$855.75 \$868.13 \$879.00 \$5.25

2nd six months of pursuit

of program 608.58 617.93 625.63 3.85

3rd six months of pursuit

of program 375.20 381.33 386.05 2.45

Remaining pursuit of program 363.30 369.08 374.33 2.45

(Authority: 38 U.S.C. 3015)

\(3\) The monthly rate of basic educational assistance payable to a
veteran who is pursuing a cooperative course after September 30, 2004,
is the rate stated in the following table:

*Additional for*

*each additional*

*No dependents One dependent Two dependents dependent*

\$1192.00 \$1228.00 \$1259.00 \$16.00

(Authority: 38 U.S.C. 3015)

\(b\) *Less than one-half-time training*. Except as provided in
paragraph (d) of this section, the monthly rate of basic educational
assistance for a veteran who is pursuing a course on a less than
one-half-time basis is the lesser of:

\(1\) The monthly rate in paragraph (a)(1) of this section, or

\(2\) The monthly rate of the cost of the course. If there is no cost
for the course, educational assistance is not payable.

\(c\) *Rates for servicemembers*. The monthly rate of basic educational
assistance for a servicemember may not exceed the lesser of the
following rates (except as provided in paragraph (d) of this section):

\(1\) The monthly pro-rated cost of the course.

\(2\) The following monthly rates for training that occurs after
September 30, 2004:

> \(i\) \$1,192.00 for full-time training;
>
> \(ii\) \$894.50 for three-quarter-time training;
>
> \(iii\) \$596.00 for one-half-time training and training that is less
> than one-half-time training but more than one-quarter-time training;
> and
>
> \(iv\) \$298.00 for one-quarter-time training. (Authority: 38 U.S.C.
> 3015.)

\(d\) *Increase ("kicker") in basic educational assistance rates for
service in the Selected Reserve*.

\(1\) The Secretary of the service department concerned may increase the
amount of basic educational assistance payable under paragraphs (a),
(b), or (c) of this section, as appropriate. The increase ("kicker") is
payable to an individual who has a skill or specialty in which there is
a critical shortage of personnel or for which it is difficult to
recruit, or, in the case of critical units, retain personnel, if the
individual:

> \(i\) Establishes eligibility for educational assistance under
> §21.7044(a) or §21.7080;
>
> \(ii\) Meets the criteria of §21.7540(a)(1) with respect to service in
> the Selected Reserve.

\(2\) The Secretary of the military department concerned:

> \(i\) Will, for such an increase, set the amount of the increase
> ("kicker") payable for full-time training, but the increase ("kicker")
> may not exceed \$350 per month;
>
> \(ii\) May set the amount of the "kicker" payable, for a veteran
> pursuing a program of education less than full time or pursuing an
> apprenticeship or other on-job training, at an amount less than the
> amount described in paragraph (e)(2)(i) of this section. (Authority:
> 10 U.S.C. 16131(i)(2))

\(e\) *Concurrent benefits.* VA may pay additional educational
assistance to a veteran for a dependent concurrently with additional
pension or compensation for the same dependent. (Authority: 38 U.S.C.
3015(d), Pub. L. 98-525)

\(f\) *Two veteran cases*. VA may pay additional educational assistance
to a veteran for a spouse who is also a veteran. This will not bar the
payment of additional educational assistance or subsistence allowance
under §21.260 of this part to the spouse for the veteran. If the veteran
is paid additional educational assistance for a child, that will not bar
payment of additional educational assistance or subsistence allowance
under §21.260 of this part to the spouse for the same child. (Authority:
38 U.S.C. 3015(d); Pub. L. 98-525)

\[53 FR 1757, Jan. 22, 1988, as amended at 54 FR 34987, Aug. 23, 1989;
55 FR 28387, July 11, 1990; 56 FR 20135, May 2, 1991; 56 FR 31332, July
10, 1991; 57 FR 11911, April 8, 1992; 61 FR 6789, Feb. 22, 1996; 61 FR
15191, Apr. 5, 1996; 61 FR 24238, May 14, 1996; 62 FR 14825, Mar. 28,
1997; 62 FR 55519, Oct. 27, 1997; 62 FR 58655, Oct. 30, 1997; 63 FR
27854, Mar. 21, 1998; 64 FR 31694, June 14, 1999; 65 FR 44980, July 20,
2000; 65 FR 55193, Sept. 13, 2000; 66 FR 32229, June 14, 2001; 68 FR
34324, June 9, 2003; 69 FR 74978, Dec. 15, 2004, 71 FR 75672, December
18, 2006\]

**Supplement *Highlights* references**: 23(1), 25(2), 26(2), 30(1),
35(1, 3), 38(2), 43(1), 51(1), 55(2), 62(1), 67(1), 71(2).

Reserved

**§21.7138 Rates of supplemental educational assistance.**

In addition to basic educational assistance, a veteran or servicemember
who is eligible for supplemental educational assistance and entitled to
it shall be paid supplemental educational assistance at the rate
described in this section unless a lesser rate is required by §21.7139
of this part.

\(a\) *Rates for veterans.*

\(1\) Except for a veteran pursuing apprenticeship or other on-job
training, the rate of supplemental educational assistance payable to a
veteran is at least the rate stated in this table.

*Training Monthly Rate*

Full-time \$300

3/4 time \$225

1/2 time \$150

Less than 1/2 but more than 1/4 time \$150 (See paragraph (c))

1/4 time or less \$75 (See paragraph (c))

Cooperative \$240

(Authority: 38 U.S.C. 3015(d), 3022, 3032(d);

Pub. L. 98-525, Pub. L. 100-689) (Jan. 1, 1989)

\(2\) For a veteran pursuing apprenticeship or other on-job training the
rate of supplemental educational assistance payable to a veteran is as
provided in this table.

*Training period Monthly Rate*

First six months of pursuit of program \$225.00

Second six months of pursuit of program 165.00

Remaining pursuit of program 105.00

(Authority: 38 U.S.C. 3015(c), 3032(c); Pub. L. 99-576)

\(b\) *Increase in supplemental educational assistance rates
("kicker\").* The Secretary concerned may increase the amount of
supplemental educational assistance payable to an individual who has a
skill or specialty which the Secretary concerned designates as having a
critical shortage of personnel or for which it is difficult to recruit.
The amount of the increase is set by the Secretary concerned, but:

\(1\) For an individual other than one pursuing an apprenticeship or
other on-job training or cooperative training it may not exceed:
(Authority: 38 U.S.C. 3032(d)) (Jan. 1, 1989)

\(i\) \$300 per month for full-time training.

\(ii\) \$225 per month for three-quarter-time training,

\(iii\) \$150 per month for one-halftime training and for training which
is less than one-half-time, but more than one-quarter-time, or

\(iv\) \$75 per month for one-quarter-time training or less.

\(2\) For an individual pursuing an apprenticeship or other on-job
training it may not exceed:

\(i\) \$225 per month for the first six months of training,

\(ii\) \$165 per month for the second six months of training, and

\(iii\) \$105 per month for the remaining months of training.
(Authority: 38 U.S.C. 3022(b), 3032(c); Pub. L 99-576)

\(3\) For an individual pursuing cooperative training, it may not exceed
\$240 per month. (Authority: 38 U.S.C. 3022(b), 3032(d) (Jan. 1, 1989)

\(c\) *Rates of supplemental educational assistance for less than
one-halftime training and for servicemembers.* The monthly rate of
supplemental educational assistance payable to a veteran who is training
less than half-time or to a servicemember is determined as follows:

\(1\) The monthly rate of the veteran's or servicemember's basic
educational assistance determined as provided in §§21.7136(e) and
21.7137(b), (c) and (d) of this part.

\(2\) If the monthly rate of basic educational assistance equals or is
greater than the monthly rate of the cost of the course, no supplemental
educational assistance is payable.

\(3\) If the monthly rate of basic educational assistance is less than
monthly rate of the cost of the course, the monthly rate of supplemental
educational assistance is the lesser of:

\(i\) The monthly rate provided in paragraph (a) of this section, plus
the monthly rate provided in paragraph (b) of this section, if
appropriate, or

\(ii\) The difference between the monthly rate of the cost of the course
and the monthly rate of the veteran's or servicemember's basic
educational assistance. (Authority: 38 U.S.C. 3022, 3032; Pub. L.
98-525)

\[53 FR 1757, Jan. 22, 1988, as amended at 55 FR 28388, July 11, 1990;
56 FR 20136, May 2, 1991; 71 FR 75678, Dec. 18, 2006\]

**Supplement *Highlights* reference**: 71(2)

**§21.7139 Conditions which result in reduced rates or no payment.**

The monthly rates established in §§21.7136, 21.7137 and 21.7138 shall be
reduced as stated in this section whenever the circumstances described
in this section arise.

\(a\) *Withdrawals and nonpunitive grades.* Withdrawal from a course or
receipt of a nonpunitive grade affects payments to a veteran or
servicemember. VA will not pay benefits to a veteran or servicemember
for pursuit of a course from which the veteran or servicemember
withdraws or receives a nonpunitive grade which is not used in computing
requirements for graduation unless the provisions of this paragraph are
met.

\(1\) The veteran withdraws because he or she is ordered to active duty;
or

\(2\) All of the following exist:

\(i\) There are mitigating circumstances; and

\(ii\) The veteran or servicemember submits a description of the
mitigating circumstances in writing to VA within one year from the date
VA notifies the veteran or servicemember that he or she must submit a
description of the mitigating circumstances, or at a later date if the
veteran or servicemember is able to show good cause why the one-year
time limit should be extended to the date on which he or she submitted
the description of the mitigating circumstances; and

\(iii\) The veteran or servicemember submits evidence supporting the
existence of mitigating circumstances within one year of the date that
evidence is requested by VA, or at a later date if the veteran or
servicemember is able to show good cause why the one-year time limit
should be extended to the date on which he or she submitted the evidence
supporting the existence of mitigating circumstances.

\(b\) *No educational assistance for some incarcerated veterans or
servicemembers*. VA will pay no educational assistance to a veteran or
servicemember, who:

\(1\) Is incarcerated in a Federal, State or local penal institution for
conviction of a felony, and

\(2\) Is enrolled in a course:

\(i\) For which there are no tuition and fees, or

\(ii\) For which tuition and fees are being paid by a Federal program
(other than one administered by the VA) or by a State or local program,
and

\(3\) Is incurring no charge for the books, supplies and equipment
necessary for the course. (Authority: 38 U.S.C. 3034, 3482(g))

\(c\) *Reduced educational assistance for some incarcerated
servicemembers.*

\(1\) VA will pay reduced educational assistance to a servicemember who:

\(i\) Is incarcerated in a Federal, State or local penal institution for
conviction of a felony, and

\(ii\) Is enrolled in a course where his or her tuition and fees are
being paid for entirely or partly by a Federal program (other than one
administered by VA) or by a State or local program, and

\(iii\) If all the tuition and fees are paid for by such a program, must
buy books, supplies or equipment for the course.

\(2\) The monthly rate of educational assistance payable to a
servicemember described in this paragraph shall equal the lowest of the
following:

\(i\) The monthly rate of the portion of the tuition and fees that are
not paid by a Federal program (other than one administered by VA) or a
State or local program plus the monthly rate of any charges to the
servicemember for the cost of necessary supplies, books and equipment;

\(ii\) The monthly rate of the portion of the tuition and fees paid by
the servicemember plus the monthly rate of the portion of tuition and
fees paid by the Federal, State or local program; or

\(iii\) The monthly rate found in §21.7136(e) or §21.7137(c), as
appropriate. (Authority: 38 U.S.C. 3034, 3482(g))

\(d\) *Reduced educational assistance for some incarcerated veterans.*

\(1\) VA will pay reduced educational assistance to a veteran who:

\(i\) Is incarcerated in a Federal, State or local penal institution for
conviction of a felony, and

\(ii\) Is enrolled in a course for which the veteran pays some (but not
all) of the charges for tuition and fees, or for which a Federal program
(other than one administered by VA) or a State or local program pays all
the charges for tuition and fees, but which requires the veteran to pay
for books, supplies and equipment.

\(2\) The monthly rate of educational assistance payable to such a
veteran who is pursuing the course on a one-half time or greater basis
shall be the lesser of the following:

\(i\) The monthly rate of the portion of the tuition and fees that are
not paid by a Federal program (other than one administered by VA) or a
State or local program plus the monthly rate of the charge to the
veteran for the cost of necessary supplies, books and equipment, or

\(ii\) If the veteran has remaining entitlement under 38 U.S.C. chapter
34 monthly rate stated in §21.7137(a) for a veteran with no dependents
and the increase provided in §21.7137(d) or (e), if appropriate, plus
the monthly rate stated in §21.7138(a) and (b) for a veteran if the
veteran is entitled to supplemental educational assistance, or

\(iii\) If the veteran has no entitlement under 38 U.S.C. chapter 34,
the monthly rate stated in §21.7136(a) or (b), as appropriate, and the
increase provided in §21.7136(d), (f), or (g), if appropriate, plus the
monthly rate stated in §21.7138(a) and (b) for a veteran if the veteran
is entitled to supplemental educational assistance.

\(3\) The monthly rate of educational assistance payable to such a
veteran who is pursuing the course on a less than one-half time basis or
on a one-quarter time basis shall be the lowest of the following:

\(i\) The monthly rate of the tuition and fees charged for the course,

\(ii\) The monthly rate of the tuition and fees which the veteran must
pay plus the monthly rate of the charge to the veteran for the cost of
necessary supplies, books and equipment, or

\(iii\) The monthly rate determined by §21.7136(e) or §21.7137(b), as
appropriate, plus the monthly rate stated in §21.7138(c) if the veteran
is entitled to supplemental educational assistance. (Authority: 38
U.S.C. 3034, 3482(g))

\(e\) *Payment for correspondence courses.* The amount of payment due a
veteran or servicemember who is pursuing a correspondence course or the
correspondence portion of a correspondence-residence course is 55
percent of the established charge which the educational institution
requires nonveterans to pay for the lessons that the veteran or
servicemember has had completed and serviced and for which payment is
due. (Authority: 38 U.S.C. 3034, 3686(a)(2))

\(f\) *Failure to work sufficient hours of apprenticeship and other
on-job training.*

\(1\) For any month in which an eligible veteran pursuing an
apprenticeship or other on-job training program fails to complete 120
hours of training, VA will reduce proportionally:

\(i\) The rates specified in §§21.7136(b)(5) through (b)(8), (c)(5)
through (c)(8), (d)(4) through (d)(6), (f)(4) and (h)(2) and
21.7137(a)(5) through (a)(8); and

\(ii\) Any increase ("kicker") set by the Secretary of the service
department concerned as described in §§21.7136(g) and 21.7137(d).

\(2\) In making the computations required by paragraph (g)(1) of this
section, VA will round the number of hours worked to the nearest
multiple of eight.

\(3\) For the purpose of this paragraph *hours worked* include only:

\(i\) The training hours the veteran worked, and

\(ii\) All hours of the veteran's related training which occurred during
the standard workweek and for which the veteran received wages. (See
§21.4270(c), footnote 5, as to the requirements for full-time training.)
(Authority: 38 U.S.C. 3034, 3687(b)(3))

\[53 FR 1757, Jan. 22, 1988, as amended at 55 FR 28388, July 11, 1990;
56 FR 11672, Mar. 20, 1991; 57 FR 15025, April 24, 1992; 58 FR 26242,
May 3, 1993; 60 FR 32272, June 21, 1995; 62 FR 55520, Oct. 27, 1997; 71
FR 75678, Dec. 18, 2006\]

**Supplement *Highlights* references**: 6(3), 19(1), 35(1), 71(2).