**CONTENTS**

**CHAPTER 3. ELIGIBILITY ISSUES**

PARAGRAPH PAGE

3.01 General 3-1

3.02 Application and Filing 3-1

3.03 \[Reserved for Future Use\] 3-1

3.04 Eligibility Documentation 3-1

3.05 Eligibility Status and Date of Eligibility 3-\[4\]

3.06 Development Actions 3-\[4\]

3.07 Information in DOD Records 3-\[4\]

3.08 Administrative Error 3-\[5\]

3.09 Delimiting Date 3-\[6\]

3.10 Procedural and Appellate Rights 3-\[7\]

FIGURES PAGE

3.01 DOD Screen 3-2

**CHAPTER 3. ELIGIBILITY ISSUES**

**3.01 GENERAL**

\[a. General. Only DOD (Department of Defense) and DOT (Department of
Transportation) have the authority to determine basic eligibility for
chapter 1606 benefits. [VA DOES NOT HAVE ANY AUTHORITY TO MAKE CHAPTER
1606 ELIGIBILITY DETERMINATIONS]{.underline}.

b\. Once DOD or DOT establishes basic eligibility, VA reviews the
chapter 1606 claim to ensure there are no restrictions to the payment of
benefits. These restrictions include but are not limited to the
following: the receipt of an ROTC (Reserve Officers\' Training Corps)
scholarship or the pursuit of a non-approved course. This chapter
provides detailed procedural instructions that RPOs (Regional Processing
Offices) must follow before paying chapter 1606 benefits.\]

**3.02 APPLICATION AND FILING**

*NOTE: See part III, chapter 3, subchapter I, for a review of general
procedures used in reviewing application forms.*

a\. \[Chapter 1606 claimants must complete and return VA Form 22-1990,
Application for VA Education Benefits.

b\. RPOs use TIMS (The Imaging Management System) for processing
chapter 1606 claims.

**3.03 \[RESERVED FOR FUTURE USE\]**

**3.04 ELIGIBILITY DOCUMENTATION**

\[There are four sources that RPO personnel must consider when reviewing
chapter 1606 eligibility for an original claim. The following paragraphs
explain how each source affects this eligibility review. Because a
claimant\'s chapter 1606 eligibility can change, RPOs should use the
following explanations whenever eligibility is an issue.

*NOTE: DOD has published policy on chapter 1606 in DODI (Department of
Defense Instructions) 1322.17. This policy document is on the Internet
at the following address:
\"http://web7.whs.osd.mil/dodiss/instructions/ins2.html\".*

**a. Chapter 1606 DOD Data Record (DOD Screen)**. The DOD screen
(fig. 3.01) is the primary source used to establish eligibility. See TG
22-99-5, The Chapter 1606 User Guide, for a detailed explanation of the
DOD screen fields. The DOD screen is a display of the current
eligibility data contained in the DOD records. In most instances, the
DOD screen must show a DOD STATUS of \"ELIGIBLE\", \"ELIG RETAINED\", or
\"ELIG REINSTATED\" before an RPO can authorize benefits. The following
are two exceptions to this rule:

DOD CHAPTER 1606 DOD DATA RECORD 06-26-99

FILE NUMBER 101 01 1111-00 NAME JOHN M SMITH

SOC SEC NUMBER 101 01 1111 DATE OF BIRTH 02-24-70

LAST ACTIVITY CHG 06-01-99

BASIC ELIG DATE 07-01-99 LIMIT ELIG DATE

EFF DATE STATUS REASON COMPONENT

07-01-99 ELIGIBLE INITIAL PERIOD OF SERVICE NR

KICKER DATE KICKER STATUS RATE MOB FROM MOB TO

07-01-99 ELIGIBLE LOW

NEXT SCREEN

**Figure 3.01. DOD Screen**

\(1\) [120‑Day Exception]{.underline}. DOD issues DD Form 2384-1, Notice
of Basic Eligibility, to Selected Reservists who become eligible for
chapter 1606 benefits. This form is also known as a NOBE (Notice of
Basic Eligibility). (See DODI section 5.3.3.) A claimant whose status is
INELIGIBLE on the DOD screen may receive chapter 1606 benefits if the
NOBE is dated within 120 days of the date that it is received in VA. A
valid NOBE (see subpar. b) is one that is signed by the reservist
(designated as \"service member\" on the form) and the commanding
officer or designee on or after the date of basic eligibility shown on
the form. This 120‑day exception gives the military a reasonable time to
update the individual\'s record.

EXAMPLE: An applicant\'s NOBE is received in the VA on November 26,
1999. The DOD screen shows the DOD STATUS as \"INELIGIBLE\". If the
applicant\'s date of eligibility, as shown on the NOBE, is July 30,
1999, or later, the 120-day exception applies. (July 30, 1999, is less
than 120 days earlier than November 26, 1999, the date of the NOBE in
this example.) If the date of eligibility, as shown on the NOBE, was
July 29, 1999, or earlier, the 120‑day exception would not apply. A
recently signed NOBE can be considered as alternative evidence as in
subparagraph (2).

\(2\) [Alternative Evidence Submitted]{.underline}. The claimant can
submit alternative evidence showing that he or she qualifies for chapter
1606 benefits. One example of such acceptable alternative evidence is a
letter from the claimant\'s commanding officer. Another example would be
a [recently signed]{.underline} NOBE when the date of eligibility is
more than 120 days old. (See TG 22‑99-5, part I, chapter 3, page I-36,
Eligibility Issues, paragraph 2.) If there is any question about such
evidence, call the appropriate service department contact point to
verify the evidence.

**b. DD Form 2384 and 2384-1 (NOBE)**. The NOBE is a supplemental
document for establishing chapter 1606 eligibility. and establishing the
date of eligibility. During July, 1992, DD Form 2384-1 replaced DD Form
2384. Either form is acceptable for establishing the original date of
eligibility. A NOBE is valid only if it is signed by both the reservist
and the commanding officer (or designee) on or after the date of basic
eligibility.

\(1\) If the STATUS on the DOD screen is NOT ELIGIBLE, ELIG REINSTATED,
or ELIG RETAINED, use the NOBE to determine eligibility. If a NOBE is
not of record, disallow the claim and advise the claimant.

\(2\) A photocopy of a NOBE is acceptable.

*NOTE: See paragraph 3.06 for claims involving conflicting evidence.*

**c. Review of Application.** Review the application to determine the
claimant\'s prior education, receipt of other educational assistance,
and eligibility to other VA educational programs. Review to verify that
the applicant:

\(1\) Is not receiving financial assistance in the form of a
*scholarship* under section 2107 of title 10, U.S. Code, as a member of
the Senior ROTC program. A reservist granted a scholarship under section
2107 has tuition and fees paid by the government and receives a monthly
living stipend. Receipt of *only* a monthly stipend for being in Senior
ROTC is *not* considered financial assistance under section 2107.

*NOTE 1: The NOBE states that receipt of financial assistance under
section 2107 of title 10, U.S. Code, makes a reservist ineligible for
benefits. However, the NOBE is not a certification regarding the ROTC
scholarship provision.*

*NOTE 2: Reservists are not prohibited from receiving chapter 1606
benefits if they receive financial assistance under section 2107a of
title 10, U.S. Code. See paragraph 1.03b(2).*

\(2\) Is not eligible for benefits under chapter 30, title 38, U.S.C.,
based upon active duty service combined with Selected Reserve service.
Refer to paragraph 1.03d and part V, paragraph 3.09 for treatment of
dual entitlement cases.

\(3\) If the claimant has basic eligibility to chapter 30, develop for
the election, if necessary.

**d. Evidence of a New Selected Reserve Commitment**. VA must have
evidence that a 6-year Selected Reserve obligation has been executed on
or after October 1, 1990, before an award of benefits may be made for
programs payable after September 30, 1990. This evidence is now shown in
the Limit Eligibility Date field on the DOD screen. (RPOs should not
encounter many of these cases. Cases should show Basic Eligibility date
as before October 1, 1990 and a STATUS as ELIGIBLE.) See paragraph 1.09b
and TG 22-99-5, part II, chapter 1, page II-13.

**3.05 ELIGIBILITY STATUS AND DATE OF ELIGIBILITY**

**a. Eligibility Status.** Review the STATUS field on the DOD screen. If
there is no DOD record for the claimant, disallow the claim. See TG
22-99-5, part III, chapter 3. For the eligibility status legends, see TG
22-99-5, part II, chapter 1, pages II-9 through II-12.

**b. Date of Eligibility**

\(1\) If the dates of eligibility on the NOBE and the DOD screen agree,
use this date on the 310 screen.

\(2\) If the dates do not agree, use the date on the DOD screen for the
component that issued the NOBE.

**3.06 DEVELOPMENT ACTIONS**

\[Only DOD and DOT have the authority to determine basic eligibility for
chapter 1606 benefits. [VA DOES NOT HAVE ANY AUTHORITY TO MAKE
CHAPTER 1606 ELIGIBILITY DETERMINATIONS]{.underline}. If the RPO has a
question about DOD policy, contact the Education Service before
contacting DOD. If an RPO encounters a conflict with a local unit
regarding eligibility, contact the service department point of contact.
See TG 22‑99-5, part I, chapter 2, page I-35.\]

**3.07 \[INFORMATION IN DOD RECORDS\]**

**a. \[DOD Record.** DOD has combined all service records into one
record. This record will display multiple components, when appropriate.
See TG 22-99-5, part II, chapter 2.

**b. DOD Record of Unsatisfactory Participation.** A reservist who is
separated from the Selected Reserve because of a final determination of
unsatisfactory participation loses eligibility to chapter 1606 benefits.
The reservist cannot again reestablish eligibility, even if the Selected
Reserve permits him or her to reaffiliate. This is a DOD/DOT
determination and not a unit determination. RPOs must consider this
issue when reviewing a claim for chapter 1606 benefits by a claimant
with prior Selected Reserve service.

\(1\) If a review of the DOD screen or claimant\'s records shows prior
eligibility for chapter 1606 benefits terminated by a finding of
unsatisfactory participation, do not award benefits.

\(2\) Request separate written verification of eligibility from the
claimant\'s current reserve/guard component. Send a letter to the
claimant\'s current component advising them of the findings, and
requesting acknowledgment and confirmation of eligibility for chapter
1606 benefits.

\(3\) Advise the claimant that benefits cannot be awarded due to a
previous DOD report of unsatisfactory participation and that VA is
verifying eligibility status with the reserve/guard component.

**c. Record Under Chapter 1606 and Chapter 30**. If the claimant has
both a chapter 30 eligibility record and a chapter 1606 eligibility
record, refer to subparagraph 1.03d and 3.04c for instructions.

**d. DOD Record (Eligibility Suspended)**. If the DOD record shows
\"ELIG SUSP\" (eligibility suspended), the claimant is currently
eligible but is not entitled to benefit payments during the suspense
period. This legend is shown for the following reasons:

\(1\) Received BA Degree. The claimant\'s eligibility is suspended
because he or she received a bachelor\'s degree. (This code is no longer
used. Since it was contained in the old chapter 1606 system, this code
is still displayed.)

\(2\) Non-Availability - Other. The claimant has received an approved
period of absence from the Selected Reserve.

\(3\) Non-Availability - Missionary. The claimant has received an
approved period of absence from the Selected Reserve. This is usually
for religious reasons.

\(4\) Unsatisfactory Participation Determination Pending. The
individual\'s participation in the Reserves is considered unsatisfactory
by DOD. However, the reserve component cannot make a final determination
until giving the claimant due process. DOD must give the reservist the
opportunity to improve his or her participation, or provide evidence to
show that the component\'s preliminary finding of unsatisfactory
participation is not correct.

\(5\) Entered Active Duty. The claimant has entered active duty. This is
usually for an unspecified period. (This usually results from being
mobilized during a crisis situation.)

\(6\) ROTC Scholarship. The claimant is eligible for an ROTC
scholarship.

**e. DOD Record (Eligibility Terminated)**. If the DOD record shows
\"ELIG TERM\" (eligibility terminated), the claimant\'s eligibility has
terminated for reasons determined by the components. This legend is
shown for the following reasons:

\(1\) Discharged. The claimant has been discharged from the Selected
Reserve for satisfactory reasons. Normally, this happens at the end of a
period of enlistment. However, this can suggest a non-service incurred
injury.

\(2\) Deceased. The claimant has died.

\(3\) Unsatisfactory Participation. The claimant has formally been found
to be an Unsatisfactory Participant.

\(4\) Did not complete obligation. The claimant did not complete his or
her 6 year obligation on which basic eligibility was established.\]

**3.08 ADMINISTRATIVE ERROR**

If an eligibility determination results from error on the part of VA,
DOD or DOT, terminate benefits effective DLP (Date of Last Payment)
under 38 CFR 21.7635(q)(2). Follow the procedures below to terminate
benefits:

a\. Terminate benefits DLP \[only if one of the following applies:

\(1\) VA receives information from a DOD or DOT official (commanding
officer, education officer, incentives officer, etc.) conceding
administrative error. The DOD or DOT information can be in a letter or
other means to include but not limited to a telephone call, fax, or
e‑mail.

\(2\) VA receives a NOE message conceding administrative error. The NOE
message will have a DOD status code \"ELIG EST IN ERROR\".

\(3\) VA has made an administrative error. (In this instance, prepare a
formal administrative error decision. (See pt. III, par. 2.03.))

b\. Do not request a formal administrative error decision document from
DOD or DOT. As the reserve components are responsible for these
eligibility determinations, VA does not have authority to determine
administrative error when eligibility is the issue.

c\. Do not prepare a formal administrative decision based on a DOD or
DOT administrative error decision. On the printed award document
terminating benefits, write the following: \"Administrative Error\"
followed by the specific information used in this determination.

d\. If a Reservist indicates payment may have been made as a result of
DOD or DOT administrative error, refer him or her to the specific
component for consideration.\]

**3.09 DELIMITING DATE**

**a. Period of Eligibility.** See paragraph 1.07 for determining the
delimiting period and delimiting date. Note that the delimiting period
begins *on* the date of eligibility as opposed to other programs in
which it begins the day *after* the date of discharge (RAD).

EXAMPLE: The date of basic eligibility shown on NOBE or the DOD screen
is 10/22/99. Therefore, eligibility to benefits begins 10/22/99. The
delimiting period ends 10/21/09. The delimiting date is 10/22/09, 10
years from the date eligibility began.

**b. Action Upon Notice of Separation**. Upon notice that an eligible
reservist has separated from the Selected Reserve, terminate benefits
effective the applicable date shown in paragraph 1.07.

*NOTE: A reservist who is granted an authorized absence from the
Selected Reserve following a period of satisfactory service must rejoin
the Selected Reserve within the authorized period (i. e., usually one
year) in order to reestablish eligibility. In these types of cases, the
date of eligibility remains the original date, and again, DOD and DOT
have the responsibility to determine eligibility. There is no
requirement for a new NOBE in these cases since reserve membership is
considered continuous. Benefits are not payable for the periods during
which the reservist was not training with a unit.*

**c. Eligibility Period for Persons Separated Due to Disability**.
Effective November 18, 1988, persons who are separated from the Selected
Reserve because of a disability incurred, not as a result of their own
willful misconduct, on or after the date chapter 1606 entitlement is
established may remain eligible to use chapter 1606 benefits. In such a
case, the individual\'s delimiting date will be 10 years from the date
eligibility was established.

*NOTE: The disability on which his or her discharge is based does* *not
have to be service connected or incurred while on duty.*

\(1\) If the claimant was separated because of a service-connected
disability, the DOD screen will be updated to display ELIG RETAINED. If
the DOD screen has not been updated and the claimant alleges a
disability separation, develop for the claimant\'s medical records. Send
the request to the appropriate Address Code in addendum A to M21-1, part
III, chapter 4. Do not request medical records from the reserve unit of
assignment if the claimant has been discharged from the Selected
Reserve. Use the address code for an individual separated from service.

\(2\) If the individual was discharged from the Selected Reserve for
disability, Medical Board proceedings will exist (regardless of whether
the disability was related to service). If the claimant\'s medical
records contain Medical Board proceedings that indicate that the
discharge was for disability and there is no evidence of misconduct,
eligibility to chapter 1606 is continued.

\(3\) If there is evidence that the disability for which the claimant
was discharged was incurred under circumstances giving rise to an issue
of misconduct, develop fully and make a formal decision as to
misconduct. See M21-1,  part III, paragraph 5.24 and part IV, chapter
11, subchapter I and subchapter V.

**d. Extension Based on \[Qualifying Mobilization.** The chapter 1606
delimiting date will be extended by the number of days served on active
duty during the mobilization period plus 4 months. See pars. 1.07b and
4.22 for procedures for these cases.\]

**e. Extension Based on Involuntary Separation from the Selected
Reserve**

\(1\) The original chapter 1606 delimiting date will be retained if the
person was involuntarily separated from the Selected Reserve during
specified dates. (See pars. 1.07e and 4.23.)

\(2\) If the claimant was involuntarily separated, the DOD screen will
be updated to display ELIG RETAINED. (See TG 22-99-5, part II, chapter
2.)

**3.10 PROCEDURAL AND APPELLATE RIGHTS**

**a. General.** A claimant may appeal the fact of denial of chapter 1606
benefits to BVA (Board of Veterans Appeals). (The claimant cannot appeal
a DOD determination of ineligibility to BVA.)

**b. DOD/DOT Eligibility Determination**

\(1\) If the RPO denied chapter 1606 benefits solely on a DOD/DOT
determination of ineligibility, restrict the ISSUE for the SOC
(Statement of the Case) to the DOD/DOT determination. Clearly indicate
the following:

\(a\) VA made its decision based on the DOD/DOT determination of
ineligibility; and

\(b\) VA has no jurisdiction over chapter 1606 eligibility
determinations. Only DOD/DOT make these determinations. (See 38 CFR
21.7540.)

\(2\) [Do not]{.underline} include in the SOC the substantive issue of
eligibility. Eligibility is not the issue of the case.