**§21.7042 Basic eligibility requirements.**

An individual must meet the requirements of this section, §21.7044, or
§21.7045 in order to be eligible for basic educational assistance. This
section requires an individual to complete certain academic requirements
before applying for educational assistance. If the individual applies
before completing those requirements, VA will disallow the application.
However, the individual's premature application will not prevent the
individual from establishing eligibility at a later time by applying for
educational assistance again after having completed those academic
requirements. In determining whether an individual has met the service
requirements of this section, VA will exclude any period during which
the individual is not entitled to credit for service for the periods of
time specified in §3.15. (Authority: 38 U.S.C. 3011, 3012, 3018(b),
3018A)

\(a\) *Eligibility based solely on active duty*. An individual may
establish eligibility for basic educational assistance based on service
on active duty under the following terms, conditions and requirements.

\(1\) The individual must after June 30, 1985, either:

\(i\) First become a member of the Armed Forces, or

\(ii\) First enter on active duty as a member of the Armed Forces;

\(2\) Except as provided in paragraph (a)(5) of this section, the
individual must:

\(i\) If his or her obligated period of active duty is three years or
more, serve at least three years of continuous active duty in the Armed
Forces; or

\(ii\) If his or her obligated period of active duty is less than three
years, serve at least two years of continuous active duty in the Armed
Forces;

\(3\) The individual, before applying for educational assistance, must
either:

\(i\) Complete the requirements of a secondary school diploma (or an
equivalency certificate), or

\(ii\) 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; and (Authority: 38 U.S.C. 3011, 3016)

\(4\) After completing the service requirements of this paragraph the
individual must:

\(i\) Continue on active duty, or

\(ii\) Be discharged from service with an honorable discharge, or

\(iii\) Be released after service on active duty characterized by the
Secretary concerned as honorable service, and:

\(A\) Be placed on the retired list, or

\(B\) Be transferred to the Fleet Reserve or Fleet Marine Corps Reserve,
or

\(C\) Be placed on the temporary disability retired list, or

\(iv\) Be 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.

\(5\) An individual who does not meet the requirements of paragraph
(a)(2) of this section is eligible for basic educational assistance when
he or she is discharged or released from active duty:

\(i\) For a service-connected disability, or

\(ii\) For a medical condition which preexisted service on active duty
and which VA determines is not service connected, or

\(iii\) Under 10 U.S.C. 1173 (hardship discharge), or

\(iv\) For convenience of the government:

> \(A\) After completing at least 20 continuous months of active duty of
> an obligated period of active duty that is less than three years, or
>
> \(B\) After completing 30 continuous months of active duty of an
> obligated period of active duty that is at least three years, or

\(v\) Involuntarily for the convenience of the government as a result of
a reduction in force, as determined by the Secretary of the military
department concerned in accordance with regulations prescribed by the
Secretary of Defense or by the Secretary of Transportation with respect
to the Coast Guard when it is not operating as a service in the Navy, or

\(vi\) For a physical or mental condition that was not characterized as
a disability and did not result from the individual's own willful
misconduct but did interfere with the individual's performance of duty,
as determined by the Secretary of each military department in accordance
with regulations prescribed by the Secretary of Defense or by the
Secretary of Transportation with respect to the Coast Guard when it is
not operating as a service in the Navy. (Authority: 38 U.S.C. 3011)

\(6\) An individual whose active duty meets the definition of that term
found in §21.7020(b)(1)(iv), and who wishes to become entitled to basic
educational assistance, must have elected to do so before July 9, 1997.
For an individual electing while on active duty, this election must have
been made in the manner prescribed by the Secretary of Defense. For
individuals not on active duty, this election must have been submitted
in writing to VA. (Authority: §107(b), Pub. L. 104-275, 110 Stat.
3329-3330)

\(b\) *Eligibility based on active duty service and service in the
Selected Reserves.* An individual may establish eligibility for basic
educational assistance based on a combination of service on active duty
and service in the Selected Reserve under the following terms,
conditions and requirements.

\(1\) The individual must, after June 30, 1985, either:

\(i\) First become a member of the Armed Forces, or

\(ii\) First enter on active duty as a member of the Armed Forces;

\(2\) The individual, before applying for educational assistance, must
either:

\(i\) Complete the requirements of a secondary school diploma (or an
equivalency certificate), or

\(ii\) 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: 38 U.S.C. 3011, 3012, 3016)

\(3\) Except as provided in paragraph (b)(6) of this section, the
individual must serve at least two years of continuous active duty in
the Armed Forces characterized by the Secretary concerned as honorable
service.

\(4\) Except as provided in paragraph (b)(7) of this section, after
completion of active duty service, the individual must serve at least
four continuous years of service in the Selected Reserve. An individual
whose release from active duty service occurs after December 17, 1989,
must begin this service in the Selected Reserve within one year from the
date of his or her release from active duty. During this period of
service in the Selected Reserve the individual must satisfactorily
participate in training as prescribed by the Secretary concerned.
(Authority: 38 U.S.C. 3012(a)(1); Pub. L. 100-689, Pub. L. 101-237)

\(5\) The individual must, after completion of all service described in
this paragraph:

\(i\) Be discharged from service with an honorable discharge, or

\(ii\) Be placed on the retired list, or

\(iii\) Be transferred to the Standby Reserve or an element of the Ready
Reserve other than the Selected Reserve after service in the Selected
Reserve characterized by the Secretary concerned as honorable service,
or

\(iv\) Continue on active duty, or

\(v\) Continue in the Selected Reserve.

\(6\) An individual is exempt from serving two years on active duty as
provided in paragraph (b)(3) of this section when the individual is
discharged or released from the Armed Forces during those two years:

\(i\) For a service-connected disability, or

\(ii\) For a medical condition which preexisted such service on active
duty and which VA determines is not service connected, or

\(iii\) Under 10 U.S.C. 1173 (hardship discharge), or

\(iv\) In the case of an individual discharged or released after 20
months of such service, for the convenience of the Government or

\(v\) Involuntarily, for convenience of the Government as a result of a
reduction in force as determined by the Secretary of the military
department concerned in accordance with regulations prescribed by the
Secretary of Defense or by the Secretary of Transportation with respect
to the Coast Guard when it is not operating as a service in the Navy, or

\(vi\) For a physical or mental condition that was not characterized as
a disability and did not result from the individual's own willful
misconduct but did interfere with the individual's performance of duty,
as determined by the Secretary of each military department in accordance
with regulations prescribed by the Secretary of Defense or by the
Secretary of Transportation with respect to the Coast Guard when it is
not operating as a service in the Navy. (Authority: 38 U.S.C. 3011; Pub.
L. 98-525, Pub. L. 99-576, Pub. L. 100-689, Pub. L. 101-510) (Oct. 19,
1984)

\(7\) An individual is exempt from serving four years in the Selected
Reserve as provided in paragraph (b)(4) of this section when:

\(i\) After completion of the active duty service required by this
paragraph the individual serves a continuous period of service in the
Selected Reserve and is discharged or released from service in the
Selected Reserve:

\(A\) For a service-connected disability, or

\(B\) For a medical condition which preexisted the individual's becoming
a member of the Selected Reserve and which VA determines is not service
connected, or

\(C\) Under 10 U.S.C. 1173 (hardship discharge), or

\(D\) After a minimum of 30 months of such service for the convenience
of the Government, or

\(E\) Involuntarily for the convenience of the Government as a result of
a reduction in force, as determined by the Secretary of the military
department concerned in accordance with regulations prescribed by the
Secretary of Defense or by the Secretary of Transportation with respect
to the Coast Guard when it is not operating as a service in the Navy, or

\(F\) For a physical or mental condition that was not characterized as a
disability and did not result from the individual's own willful
misconduct but did interfere with the individual's performance of duty,
as determined by the Secretary of each military department in accordance
with regulations prescribed by the Secretary of Defense or by the
Secretary of Transportation with respect to the Coast Guard when it is
not operating as a service in the Navy. (Authority: 38 U.S.C. 3011; Pub.
L. 98-525, Pub. L. 99-576, Pub. L. 100-689, Pub. L. 101- 510) (Oct. 19,
1984)

\(ii\) The individual is obligated at the beginning of the two years
active duty described in paragraph (b)(3) of this section to serve the
four years in the Selected Reserve as described in subparagraph (b)(4)
of this section, and during the two years of active duty service he or
she is discharged or released from active duty in the Armed Forces:

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

\(B\) For a medical condition which preexisted that period of active
duty and which VA determines is not service connected; or

\(C\) For a physical or mental condition that was not characterized as a
disability and did not result from the individual's own willful
misconduct but did interfere with the individual's performance of duty,
as determined by the Secretary of each military department in accordance
with regulations prescribed by the Secretary of Defense or by the
Secretary of Transportation with respect to the Coast Guard when it is
not operating as a service in the Navy. (Authority: 38 U.S.C.
3012(b)(1)(B)(i))

\(iii\) Before completing four years service in the Selected Reserve,
the individual ceases to be a member of the Selected Reserve during the
period beginning on October 1, 1991, and ending on September 30, 1999,
by reason of the inactivation of the individual's unit of assignment or
by reason of involuntarily ceasing to be designated as a member of the
Selected Reserve pursuant to 10 U.S.C. 268(b). However, this exemption
from the four-year service requirement does not apply to a reservist who
ceases to be a member of the Selected Reserve under adverse conditions
as characterized by the Secretary of the military department concerned,
or to a reservist who after having involuntarily ceased to be a member
of the Selected Reserve is involuntarily separated from the Armed Forces
under adverse conditions as characterized by the Secretary of the
military department concerned. (Authority: 10 U.S.C. 16133(b)(1); 38
U.S.C. 3012(b)(1)(B); §4421(b) and (c), Pub. L. 102-484, 106 Stat. 2718)

\(8\) For purposes of determining continuity of Selected Reserve
service, the Secretary concerned may prescribe by regulation a maximum
period of time during which the individual is considered to have
continuous service in the Selected Reserve even though he or she:

\(i\) Is unable to locate a unit of the Selected Reserve of the
individual's Armed Force that the individual is eligible to join or that
has a vacancy, or

\(ii\) Is not attached to a unit of the Selected Reserve for any reason
prescribed by the Secretary concerned by regulation other than those
stated in paragraph (b)(8)(i) of this section.

\(9\) Any decision as to the continuity of an individual's service in
the Selected Reserve made by the Department of Defense or the Department
of Transportation under regulations described in paragraph (b)(8) of
this section shall be binding upon VA. (Authority: 38 U.S.C. 3011, 3012;
Pub. L. 98-525, Pub. L. 100-689) (July 1, 1985, Oct. 1, 1987)

\(10\) An individual whose active duty meets the definition of that term
found in §21.7020(b)(1)(iv), and who wishes to become entitled to basic
educational assistance, must have elected to do so before July 9, 1997.
For an individual electing while on active duty, this election must have
been made in the manner prescribed by the Secretary of Defense. For
individuals not on active duty, this election must have been submitted
in writing to VA. (Authority: §107(b), Pub. L. 104-275, 110 Stat.
3329-3330)

\(c\) *Eligibility based on withdrawal of election not to enroll.* As
stated in paragraph (f) of this section, a veteran or servicemember who
elects not to enroll in this educational assistance program is generally
not eligible for educational assistance. However, such a person may
establish eligibility by meeting the requirements of this paragraph.

\(1\) The individual must withdraw an election not to enroll. Only
someone who meets the provisions of this subparagraph may make this
withdrawal. Such a withdrawal is irrevocable. The withdrawal may only be
made during the period beginning on December 1, 1988, and ending on June
30, 1989, by a servicemember who:

\(i\) Must have first become a member of the Armed Forces or first
entered on active duty as a member of the Armed Forces during the period
beginning July 1, 1985, and ending June 30, 1988;

\(ii\) As of the day of withdrawal of the election must have served
continuously on active duty without a break in service since the date
the individual first became a member of the Armed Forces or first
entered on active duty as a member of the Armed Forces;

\(iii\) Must be serving on active duty on the day he or she withdraws
the election;

\(iv\) Withdraws the election in the form prescribed by the Secretary of
Defense or in the case of the Coast Guard by the Secretary of
Transportation with respect to the Coast Guard when it is not operating
as a service in the Navy.

\(2\) The individual must continue to serve the period of service that
the individual was obligated to serve on December 1, 1988.

\(3\) The individual must:

\(i\) Complete the period of service that he or she was obligated to
serve on December 1, 1988, which will include completion of a period of
extension or reenlistment if an individual's initial obligated period of
service was scheduled to end after November 30, 1988, but he or she
extended an enlistment or reenlisted before December 1, 1988; or

\(ii\) Before completing the period of service he or she was obligated
to serve on December 1, 1988, have been discharged or released from
active duty for:

\(A\) A service-connected disability, or

\(B\) A medical condition which preexisted that period of service and
which the Secretary determines is not service connected, or

\(C\) Hardship (10 U.S.C. 1173); or

\(iii\) Before completing the period of service he or she was obligated
to serve on December 1, 1988, have been:

\(A\) Discharged or released from active duty for the convenience of the
Government after completing not less than 20 months of that period of
service if such period was less than three years, or 30 months, if that
period was at least three years;

\(B\) Involuntarily discharged or released from active duty for the
convenience of the Government as a result of a reduction in force as
determined by the Secretary concerned in accordance with regulations
prescribed by the Secretary of Defense; or

\(C\) Discharged or released from active duty for a physical or mental
condition that was not characterized as a disability and did not result
from the individual's own willful misconduct but did interfere with the
individual's performance of duty, as determined by the Secretary of the
military department concerned in accordance with regulations prescribed
by the Secretary of Defense (or by the Secretary of Transportation for
the Coast Guard when the Coast Guard is not operating as a service of
the Navy).

\(4\) Before applying for educational assistance, the individual:

\(i\) Must complete the requirements of a secondary school diploma (or
an equivalency certificate), or

\(ii\) 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.

\(5\) Upon completion of the period of service he or she was obligated
to serve on December 1, 1988, the individual must:

\(i\) Be discharged from service with an honorable discharge, be placed
on the retired list, be transferred to the Fleet Reserve or Fleet Marine
Corps Reserve, or be placed on the temporary disability retired list; or

\(ii\) Continue on active duty; or

\(iii\) Be 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.
3018; Pub. L. 102-16) (Mar. 22, 1991)

\(d\) *Dual eligibility.*

\(1\) An individual who has established eligibility under paragraph (a)
of this section through serving at least two years of continuous active
duty of an obligated period of active duty of less than three years, as
provided in paragraph (a)(2) of this section, may attempt to establish
eligibility under paragraph (b) of this section through service in the
Selected Reserve. If this veteran fails to establish eligibility under
paragraph (b) of this section, he or she will retain eligibility
established under paragraph (a) of this section.

\(2\) An individual must elect, in writing, whether he or she wishes
service in the Selected Reserve to be credited towards establishing
eligibility under 38 U.S.C. chapter 30 or under 10 U.S.C. chapter 1606
when:

\(i\) The individual:

> \(A\) Is a veteran who has established eligibility for basic
> educational assistance through meeting the provisions of paragraph (b)
> of this section; and
>
> \(B\) Also is a reservist who has established eligibility for benefits
> under 10 U.S.C. chapter 1606 through meeting the requirements of
> §21.7540; or

\(ii\) The individual is a member of the National Guard or Air National
Guard who has established eligibility for basic educational assistance
under 38 U.S.C. chapter 30 through activation under a provision of law
other than 32 U.S.C. 316, 502, 503, 504, or 505.

\(3\) An election under this paragraph (d) to have Selected Reserve
service credited towards eligibility for payment of educational
assistance under 38 U.S.C. chapter 30 or under 10 U.S.C. chapter 1606 is
irrevocable when the veteran either negotiates the first check or
receives the first payment by electronic funds transfer of the
educational assistance elected.

\(4\) If a veteran is eligible to receive educational assistance under
both 38 U.S.C. chapter 30 and 10 U.S.C. chapter 1606, he or she may
receive educational assistance alternately or consecutively under each
of these chapters to the extent that the educational assistance is based
on service not irrevocably credited to one or the other chapter as
provided in paragraphs (d)(1) through (d)(3) of this section.
(Authority: 10 U.S.C. 16132, 38 U.S.C. 3033(c))

\(e\) *Eligibility to receive educational assistance while serving a
qualifying period of active duty.*

\(1\) An individual on active duty who does not have sufficient active
duty service to establish eligibility under paragraph (a) of this
section, nevertheless. is eligible to receive basic educational
assistance when he or she:

\(i\) After June 30, 1985, either:

\(A\) First becomes a member of the Armed Forces, or

\(B\) First enters on active duty as a member of the Armed Forces;

\(ii\) Has completed the requirements of a secondary school diploma (or
an equivalency certificate) before beginning training;

\(iii\) Serves at least two years of continuous active duty in the Armed
Forces; and

\(iv\) Remains on active duty.

\(2\) Subject to paragraph (e)(3) of this section, VA will consider an
individual to have met the requirements of paragraph (b) of this section
when he or she:

\(i\) Has met the active duty requirements of paragraph (b) of this
section;

\(ii\) Is committed to serve 4 years in the Selected Reserve; and

\(iii\) Before beginning the training for which he or she wishes to
receive educational assistance:

\(A\) Has completed the requirements of a high school diploma (or
equivalency certificate), or

\(B\) Has successfully completed the equivalent of 12 semester hours or
the equivalent in a program of education leading to a standard college
degree. (Authority: 38 U.S.C. 3011, 3012, 3016)

\(3\) An individual who establishes basic eligibility under this
paragraph shall lose that eligibility if, upon discharge or release from
active duty, he or she is unable to establish eligibility under any of
the other paragraphs of this section. The effective date for that loss
of eligibility is the date the veteran was discharged or released from
active duty. (Authority: 38 U.S.C. 3011, 3012, 3016; Pub. L. 98-525)

\(f\) *Restrictions on establishing eligibility.*

\(1\) An individual who, after June 30, 1985, first becomes a member of
the Armed Forces or first enters on active duty as a member of the Armed
Forces, may elect not to receive educational assistance under 38 U.S.C.
ch. 30. This election must be made at the time the individual initially
enters on active duty as a member of the Armed Forces. An individual who
makes such an election is not eligible for educational assistance under
38 U.S.C. ch. 30 unless he or she withdraws the election as provided in
paragraph (c) of this section or in §21.7045(b) or (c) of this part.
(Authority: 38 U.S.C. 3018, 3018A; Pub. L. 100-689, Pub. L. 101-510)
(Nov. 5, 1990)

\(2\) Except as provided in paragraph (f)(4) of this section, an
individual is not eligible for educational assistance under 38 U.S.C.
chapter 30 if after December 31, 1976, he or she receives a commission
as an officer in the Armed Forces upon graduation from:

\(i\) The United States Military Academy;

\(ii\) The United States Naval Academy;

\(iii\) The United States Air Force Academy; or

\(iv\) The United States Coast Guard Academy.

\(3\) Except as provided in this paragraph and in paragraph (f)(4) of
this section, an individual who after December 31, 1976, receives a
commission as an officer in the Armed Forces upon completion of a
program of educational assistance under 10 U.S.C. 2107 (the Senior
Reserve Officers' Training Corps program) is not eligible for
educational assistance under 38 U.S.C. chapter 30. This bar to
eligibility under 38 U.S.C. chapter 30 does not apply to an individual
who entered active duty after September 30, 1996, and received:

\(i\) \$2,000 or less in educational assistance under 10 U.S.C. 2107 for
at least one year of the individual's participation in that program of
educational assistance; or

\(ii\) \$3,400 or less in educational assistance under 10 U.S.C. 2107
for at least one year of the individual's participation in that program
of educational assistance. This provision applies to payment of
educational assistance under 38 U.S.C. chapter 30 for months after
December 31, 2001. (Authority: 38 U.S.C. 3011(c), 3012(d))

\(4\) Paragraphs (f)(2) and (f)(3) of this section do not apply to a
veteran who has met the requirements for educational assistance under
paragraph (a), (b) or (c) of this section before receiving a commission
in the Armed Forces upon graduation from the United States Military
Academy, the United States Naval Academy, the United States Air Force
Academy, the United States Coast Guard Academy; or upon completion of a
program of educational assistance under 10 U.S.C. 2107 (the Senior
Reserve Officers Training Corps Scholarship Program). (Authority: 38
U.S.C. 3011, 3012, 3018)

\(g\) *Reduction in basic pay.*

\(1\) Except as elsewhere provided in this paragraph, the basic pay of
any individual described in paragraph (a), (b), or (c) of this section
shall be reduced by \$100 for each of the first 12 months that the
individual is entitled to basic pay. If the individual does not serve 12
months, it shall be reduced by \$100 for each month that the individual
is entitled to basic pay.

\(2\) The basic pay of an individual who withdraws an election not to
receive educational assistance under 38 U.S.C. ch. 30 as described in
paragraph (c) of this section shall be reduced by:

\(i\) \$1,200, or

\(ii\) In the case of an individual whose discharge or release from
active duty prevents the reduction of the individual's basic pay by
\$1,200, an amount less than \$1,200.

\(3\) The basic pay of any individual who makes the election described
in paragraph (e)(1) of this section and who does not withdraw that
election will not be subject to the reduction described in either
paragraph (g)(1) or paragraph (g)(2) of this section.

\(4\) The individual who makes the election described in either
paragraph (a)(7) or (b)(10) of this section shall have his or her basic
pay reduced by \$1,200 in a manner prescribed by the Secretary of
Defense. To the extent that basic pay is not so reduced before the
individual's discharge or release from active duty, VA will collect from
the individual an amount equal to the difference between \$1,200 and the
total amount of the reductions described in this paragraph. If the basic
pay of an individual is not reduced and/or VA does not collect from the
individual an amount equal to the difference between \$1,200 and the
total amount of the pay reductions, that individual is ineligible for
educational assistance. (Authority: §107(b)(3), Pub. L. 104-275, 110
Stat. 3329-3330)

\(5\) If through administrative error, or other reason:

\(i\) The basic pay of an individual described in paragraph (a)(1)
through (a)(6), (b)(1) through (b)(9), (c), or (d) of this section is
not reduced as provided in paragraph (g)(1) or (g)(2) of this section,
the failure to make the reduction will have no effect on his or her
eligibility, but will negate or reduce the individual's entitlement to
educational assistance under 38 U.S.C. chapter 30 determined as provided
in §21.7073 for an individual described in paragraph (c) of this
section;

\(ii\) The basic pay of an individual, described in paragraph (a)(7) or
(b)(10) of this section, is not reduced as described in paragraph (g)(4)
of this section and/or VA does not collect from the individual an amount
equal to the difference between \$1,200 and the total amount of the pay
reductions described in paragraph (g)(4) of this section, that
individual is ineligible for educational assistance. If the failure to
reduce the individual's basic pay and/or the failure to collect from the
individual was due to administrative error on the part of the Federal
government or any of its employees, the individual may be considered for
equitable relief depending on the facts and circumstances of the case.
See §2.7 of this chapter. (Authority: 38 U.S.C. 3002, 3011, 3012, 3018)

(The Office of Management and Budget has approved the information
collection requirements in this section under control number 2900-0594)

\[53 FR 1757, Jan. 22, 1988, as amended at 55 FR 18603, May 3, 1990; 55
FR 28384, July 11, 1990; 56 FR 20130--20132, May 2, 1991; 57 FR 15023,
April 24, 1992; 57 FR 29026, June 30, 1992; 59 FR 24049, May 10, 1994;
59 FR 24051, May 10, 1994; 60 FR 20035, Apr. 24, 1995; 60 FR 32272, June
21, 1995; 61 FR 6785, Feb. 22, 1996; 61 FR 20729, May 8, 1996; 63 FR
45718, Aug. 27, 1988; 64 FR 52652, Sept. 30, 1999; 65 FR 5786, Feb. 7,
2000; 65 FR 20745, Apr. 18, 2000; 65 FR 67266, Nov. 9, 2000; 65 FR
80329, Dec. 21, 2000; 68 FR 34329, June 9, 2003; 73 FR 2427, Jan. 15,
2008\]

**Supplement *Highlights* references**: 12(2), 12(3), 18(1), 19(1),
23(1), 40(1), 46(2), 47(1), 49(1), 52(1), 62(2), 77(2).

# Next Section is §21.7044