**Veterans Benefits Administration M22-4, Part V**

**Department of Veterans Affairs Change 22 Erratum**

**Washington, DC 20420 April 30, 2003**

Veterans Benefits Administration Manual M22-4, Part V, Change 22 is
changed as follows:

Page ii: Delete "Circular 22-01-01, Appendix A, paragraph 2".

Appendix A has not been issued.

LOCAL REPRODUCTION AUTHORIZED

Distribution: RPC: 2226

FD: EX: ASO and AR, 1 each

**Veterans Benefits Administration M22-4, Part V**

**Department of Veterans Affairs Change 22 Erratum**

**Washington, DC 20420 August 13, 2003**

Veterans Benefits Administration Manual M22-4, Part V, Change 22, is
corrected as follows:

Page 1-E-3: For Kicker codes S, T, V and W, the Total amounts for
03/07/97 are wrong. The correct totals are:

  ----------------- ----------------- ----------------- -----------------
  Kicker Code       Term of Service   Monthly           Total

  S                 24 Months         \$207.91          \$7,484.60

  T                 24 Months         \$207.91          \$7,484.60

  V                 36 Months         \$266.57          \$9,596.68

  W                 48 Months         \$405.46          \$14,596.68
  ----------------- ----------------- ----------------- -----------------

They have been incorporated into the updated pages attached

**Pages I-E-3 and I-E-4:** Remove these pages and substitute pages I-E-3
and I-E-4, attached.

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### FD EX: ASO and AR, 1 each 

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LOCAL REPRODUCTION AUTHORIZED

**Veterans Benefits Administration M22-4, Part V**

**Department of Veterans Affairs Change 22**

**Washington, DC 20420 April 8, 2003**

Part V, \"Chapter 30 Procedures,\" Veterans Benefits Administration
Manual M22-4, \"Education Procedures,\" is changed as follows:

**Page iii**: Remove this page and substitute page iii attached.

**Pages 1-i through 1-iii**: Remove these pages and substitute pages 1-i
through 1-iii attached.

**Pages 1-1 through 1-38**: Remove these pages and substitute pages 1-1
through 1-49 attached.

**Pages 1-E-3 and 1-E-4**: Remove these pages and substitute pages 1-E-3
and 1-E-4 attached.

Paragraph 1.02a updates the definition of \"active duty\" to be
consistent with the regulations.

Paragraph 1.02d updates the definition of \"continuous active duty\" to
be consistent with the regulations.

Paragraph 1.04 tables are updated to reflect changes from Public Laws
106-419 and 107-103. Category IA, IB, or IC eligibility can now be based
on any period of active duty which first began after June 30, 1985. This
provision is retroactive to the inception of chapter 30 which was
July 1, 1985. The tables also reflect the new rule that the high school
requirement may be met at anytime after release from service. The Open
Period table is corrected to delete the statement that two periods can
sometimes be combined.

Paragraph 1.05 tables are updated to reflect the two new eligibility
categories and the change to the high school eligibility requirement
brought about by Public Laws 106-419 and 107-103.

Paragraphs 1.09 and 1.10 are updated to reflect the new category IVC
created by Public Law 106-419. The category IVB paragraph is updated to
show that multiple periods may be considered.

Paragraph 1.15 is a new paragraph that provides details on the provision
in Public Law 106-419 that category IA, IB, or IC eligibility can be
based on [any]{.underline} obligated period of active duty which first
began after June 30, 1985. Previously, eligibility could only be based
on an "initial" obligated period of active duty.

Paragraph 1.17a clarifies the types of service that are excluded from
consideration in category IA, IB, 1C, Open Period and IVB cases.

Paragraph 1.17e clarifies the examples regarding conditional discharges.

Paragraph 1.17f includes details about the new high school eligibility
requirement for categories I and II.

Paragraph 1.18 provides more background information regarding reserve
service.

Paragraph 1.19a provides the delimiting date for the new categories IIC
and IID added by Public Law 107-103 and the new category IVC added by
Public Law 106-419.

Paragraph 1.19d provides the delimiting rules for persons who are
eligible based on the liberalized high school and service provision of
Public Law 106-419.

Paragraph 1.20a clarifies how entitlement is calculated when the
individual has multiple periods of service and eligibility is based on
categories IIIA, IIIB, IIIC, IVA, IVB, and IVC.

Paragraphs 1.20a and b explain how to compute entitlement for the new

categories IIC, IID, and IVC.

Paragraph 1.20c contains clarification of the effect of the military\'s
loan repayment program on chapter 30 eligibility.

Paragraph 1.20e now makes clear that chapter 30 benefits may generally
not be extended beyond 48 months even if an individual would otherwise
be eligible for an extension to the end of the term, semester, or
quarter.

Paragraph 1.21c clarifies that Open Period cases receive the category IA
rate if their obligated period was less than 3 years but receive the 1B
rate if their obligated period was 3 years or greater.

Paragraph 1.22a includes the provision that a kicker authorized under
chapter 1606 of title 10, U.S.C., can in some cases be added to the
chapter 30 basic benefit.

Paragraph 1.29 makes it clear that the chapter 30 death benefit is
payable for all eligibility categories that have pay reductions. All
eligibility categories have pay reductions except category II.

Page 1-E-3 has new rates for Kicker codes R through W.

**RESCISSIONS:** M22-4, Part V, Changes 16 and 19; Circular 22-01-01,
Appendix A, paragraph 2; Circular 22-02-01, paragraphs 2 and 7.

Brackets \[ \] have been used to identify new material.

By Direction of the Under Secretary for Benefits

JUDITH A. CADEN

Director, Education Service

Distribution: RPC: 2226

FD EX: ASO and AR, 1 each

> **RESCISSIONS**

**1. Manuals**

M22-2, Part II, Chapter 3

M22-2, Part II, Chapter 5

M22-4, Part V, Changes 2, 4, 9, \[16 and 19\]

**2. Interim Issues**

Interim Issue 22-92-1

Interim Issue 22-93-1

**3. Circulars**

Circular 22-85-6, Basic (Revised September 13, 1990)

Appendix A (Revised June 8, 1990)

Appendix C (Revised Jan. 31, 1990, paragraph 10

Appendix E

Appendix F (Revised Dec. 5, 1990)

Appendix G (Revised Dec. 19, 1989)

Appendix H (Revised Dec. 1, 1990)

Appendix J

Appendix K (Revised Jan. 4, 1990)

Appendix L (Revised Jan. 22, 1990)

Appendix N

Appendix O

Appendix P

Changes 1, 2, 3, 4, 5, 7, 8, 9, 10, and 12

Circular 20-90-9, Appendix D, paragraph 14

Circular 22-91-4, paragraph 5 and exhibits 1 through 4

Circular 22-91-9

Circular 22-92-1

Circular 22-92-3, paragraphs 8a and 8b

Circular 22-92-8

Circular 22-93-2, except Appendix A

Circular 22-93-3, paragraphs 15 through 25 and exhibits 5 through 8

Circular 22-94-6, revised, paragraphs 2, 3, 5, and 6, and exhibits 1
through 4

Circular 22-97-1, Appendix A, paragraph 2

Circular 22-97-1, Appendix B, paragraph 2

Circular 22-98-3, paragraph 4

\[Circular 22-02-01, paragraph 2 and 7\]

**CHAPTER 1 - GENERAL**

**PARAGRAPH PAGE**

1.01 Overview 1-1

1.02 Definitions 1-1

**SUBCHAPTER I --- CATEGORY I ELIGIBILITY**

1.03 Introduction 1-\[5\]

1.04 Categories IA, IB, IC, and the Open Period (38 CFR 21.7042) 1-\[5\]

**SUBCHAPTER II --- CATEGORY II ELIGIBILITY**

1.05 Introduction 1-\[11\]

1.06 \[Categories IIA, IIB, IIC and IID (38 CFR 21.7044) 1-11\]

**SUBCHAPTER III --- CATEGORY III ELIGIBILITY**

1.07 Introduction 1-\[18\]

1.08 Categories IIIA, IIIB, and IIIC (38 CFR 21.7045) 1-\[18\]

**SUBCHAPTER IV --- CATEGORY IV ELIGIBILITY**

1.09 Introduction 1-\[22\]

1.10 Categories \[IVA, IVB, and IVC\] 1-\[22\]

1.11 \[Category IVA, IVC \-- Title 32 Cases\] 1-28\]

1.12 Reserved 1-\[29\]

1.13 Reserved 1-\[29\]

1.14 Reserved 1-\[29\]

**SUBCHAPTER V --- ADDITIONAL ELIGIBILITY ISSUES**

1.15 \[More Than One Period of Service\] 1-\[29\]

1.16 Amounts Withheld 1-\[30\]

1.17 Clarification of Basic Eligibility Issues 1-\[30\]

1.18 Additional Issues in Selected Reserve Cases 1-\[36\]

**CONTENTS - CONTINUED**

**PARAGRAPH PAGE**

**SUBCHAPTER VI --- \[PERIODS OF ELIGIBILITY AND ENTITLEMENT\]**

1.19 Period of Eligibility (38 CFR 21.7050) 1-\[37\]

1.20 \[Entitlement Issues(38 CFR 21.7072 and 21.7073)\] 1-\[39\]

**SUBCHAPTER \[VII\] --- RATES**

1.21 Monthly Rates of Basic Educational Assistance 1-\[43\]

1.22 \[Kickers\] 1-\[45\]

1.23 \[Additional Contributions\] 1-\[46\]

1.24 \[Supplemental Educational Assistance\] 1-\[46\]

**SUBCHAPTER \[VIII\] --- SPECIAL PROVISIONS**

1.25 \[Lump Sum Payments\] 1-\[47\]

1.26 \[Accelerated Payments\] 1-\[47\]

1.27 \[Transfer of Entitlement\] 1-\[47\]

1.28 \[Tuition Assistance Top-Up\] 1-47\]

1.29 Chapter 30 Death Benefit (CFR 21.7280) 1-\[47\]

**SUBCHAPTER \[IX\] --- MISCELLANEOUS**

1.30 \[Prohibition Against Duplication of Benefits\] 1-\[48\]

1.31 \[Educational Leave of Absence\] 1-\[48\]

1.32 \[Preseparation Counseling\] 1-\[49\]

1.33 \[Funding and Responsibilities\] 1-\[49\]

1.34 \[Reports\] 1-\[49\]

1.35 \[Requirements and Comparability\] 1-\[49\]

**CONTENTS - CONTINUED**

**FIGURES PAGE**

1.01 Category IA Eligibility Requirements 1-\[6\]

1.02 Category IB Eligibility Requirements 1-\[7\]

1.03 Category IC Eligibility Requirements 1-\[8\]

1.04 Open Period Eligibility Requirements 1-\[10\]

1.05 Category IIA Eligibility Requirements 1-\[12\]

1.06 Category IIB Eligibility Requirements 1-\[13\]

1.07 \[Category IIC Eligibility Requirements\] 1-\[15\]

1.08 \[Category IID Eligibility Requirements\] 1-\[16\]

1.09 \[Category IIIA Eligibility Requirements\] 1-\[19\]

1.10 \[Category IIIB Eligibility Requirements\] 1-\[20\]

1.11 \[Category IIIC Eligibility Requirements\] 1-\[21\]

1.12 \[Category IVA Eligibility Requirements\] 1-\[23\]

1.13 \[Category IVB Eligibility Requirements\] 1-\[25\]

1.14 \[Category IVC Eligibility Requirements\] 1-\[26\]

1.15 \[Entitlement Computation When There is Prior VA Training\]
1-\[42\]

**APPENDICES**

A. Chapter 30 Rates (Category IA) 1-A-1

B. Chapter 30 Rates (Categories IB, IC, III and IV) 1-B-1

C. Chapter 30 Rates (Institutional and Job Training) (Category II) 1-C-1

D. Chapter 30 Rates (Supplemental Educational Assistance Allowance)

Institutional and Job Training Rates 1-D-1

E. Chapter 30 Kicker Rates \[1-E-1\]

**CHAPTER 1. GENERAL**

**1.01 OVERVIEW**

This chapter covers eligibility and related legal issues for chapter 30
of title 38,

U.S. Code. Chapter 30 is also called the MGIB (Montgomery GI Bill). See
subsequent chapters in this part of the manual for detailed claims
processing procedures and system information.

**a. Eligible Individuals.** Chapter 30 provides education benefits to
individuals in four general categories:

\(1\) [Category I]{.underline} consists of certain individuals who first
enter on active duty at any time after June 30, 1985.

\(2\) [Category II]{.underline} consists of individuals who were
eligible to receive chapter 34 benefits, the Vietnam Era GI Bill, on
December 31, 1989.

\(3\) [Category III]{.underline} consists of individuals who originally
declined chapter 30 or were not eligible for chapter 30, and were
involuntarily separated from active duty after February 2, 1991, or were
voluntarily separated under 10 U.S.C. 1174a or 1175 after December 4,
1991.

\(4\) [Category IV]{.underline} consists of \[participants under chapter
32 of title 38 who were given a one-time opportunity to elect chapter 30
during an open season that began October 9, 1996, and also a second
opportunity that began on November 1, 2000. It also includes certain
persons in the national guard who were given a one-time opportunity to
elect chapter 30 beginning October 9, 1996.\]

**b. Chapter Organization.** Separate subchapters cover eligibility
requirements for each major eligibility category. Subchapter V contains
additional information on eligibility that applies to more than one
category. Subchapters VI through IX contain information on issues other
than eligibility.

**1.02 DEFINITIONS**

The following definitions apply to the chapter 30 program. CFR (Code of
Federal Regulation) references are included if the definition is from
the CFR.

**a. Active Duty (38 CFR 21.7020(b)(1))** means:

\(1\) Full-time duty in the Armed Forces (*NOTE: The term Armed Forces
includes the Army, Navy, Air Force, Marine Corps, Coast Guard, and the
seven Selected Reserve components: Army Reserve, Navy Reserve, Air Force
Reserve, Marine Corps Reserve, Coast Guard Reserve, Army National Guard
and Air National Guard)* other than ACDUTRA (Active Duty for Training),

\(2\) Full-time duty (other than ACDUTRA) as a commissioned officer of
the Regular or Reserve Corps of the PHS (Public Health Service),

\(3\) Full-time duty as a commissioned officer of the NOAA (National
Oceanic and Atmospheric Administration), and

\(4\) Authorized travel to or from such duty or service.

*NOTE: This manual will refer to the 14 organizations indicated in this
definition as \"service departments.\"*

\(5\) The term \"active duty\" does not include any period during which
the individual:

\(a\) Was assigned full-time by the Armed Forces to a civilian
institution for a course of education which was substantially the same
as established courses offered to civilians;

\(b\) Served as a cadet or midshipman at one of the service academies
(e.g., the United States Military Academy, the United States Naval
Academy, the United States Air Force Academy, or the United States Coast
Guard Academy); or

\(c\) Served under the provisions of 10 U.S.C. 12103(d) (formerly sec.
511(d)) pursuant to an enlistment in the Army National Guard or the Air
National Guard, or as a Reserve for service in the Army Reserve, Naval
Reserve, Air Force Reserve, Marine Corps Reserve, or Coast Guard
Reserve. This service is active duty for training.

\(6\) When referring to individuals who, before November 30, 1989, had
never served on active duty as defined by 38 CFR 3.6(b), the term
\"active duty\" for chapter 30 purposes includes full-time National
Guard duty first performed after

November 29, 1989, by a member of the Army National Guard of the United
States or the Air National Guard of the United States for the purpose of
administering, instructing, organizing, recruiting, or training the
National Guard. Such service is under title 32,

U.S. Code.

*\[NOTE*: *This definition is saying that title 32 National Guard
service after*

*November 29, 1989, is active duty but only if the service was for one
of the qualifying purposes listed in the definition. Title 32 service
for the purpose of "operations" is not qualifying.*

\(7\) When referring to individuals who, before June 30, 1985, had never
served on active duty (as that term is defined by 38 CFR 3.6(b)) and who
made the election described in 38 CFR 21.7042(a)(7) or (b)(10). The term
*active duty* for chapter 30 purposes includes full-time National Guard
duty under title 32, U.S. Code first performed after June  30, 1985, by
a member of the Army National Guard of the United States or the Air
National Guard of the United States for the purpose of organizing,
administering, recruiting, instructing, or training the National Guard.
Individuals meeting these requirements are referred to as category IVB
in the manual.

*NOTE*: *The election referred to in this definition is the category IVB
election described in paragraph 1.10 below. Only title 32 National Guard
service that began between*

*July 1, 1985 and November 28, 1989 could qualify for this election.
This National Guard service must have been for one of the qualifying
purposes listed in the definition. Title 32 service for the purpose of
"operations" is not qualifying.\]*

**b. Basic Educational Assistance** **(38 CFR 21.7020((b)(4))** \[means
the monetary benefit payable to all individuals who meet basic
requirements for eligibility under chapter 30. This means "basic" as
opposed to "supplemental" benefits.\]

**c. Break In Service (38 CFR 21.7020(b)(5))** means a period of more
than 90 days between the date an individual is discharged or released
from active duty and the date he or she reenters active duty. However, a
period during which an individual is assigned to a civilian institution
for a course of education substantially the same as established courses
offered to civilians is not a break in service.

**d. Continuous Active Duty** **(38 CFR 21.7020(b)(6))**

\[(1) 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.

\(2\) An assignment full-time to a civilian institution for a course of
education that is substantially the same as established courses offered
to civilians does not interrupt an individual\'s continuous active duty.

\(3\) If an individual, during his or her obligated period of active
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, the individual\'s service will be
considered continuous provided he or she:

\(a\) Begins a course of education at a service academy or
post-secondary school;

\(b\) Fails to complete that course of education; and

\(c\) Immediately reenters active duty.

\(4\) An individual will be considered as having continuous active duty
if he or she served an initial period of 12 months or less, was released
from active duty for one of the reasons listed below, and reentered and
served a period of active duty. The length of the individual\'s
continuous active duty will be the sum of the two periods of active
duty. An individual must be discharged or released from the period of
active duty for:

\(a\) A service-connected disability;

\(b\) A medical condition that preexisted service and that VA determines
is not service-connected;

\(c\) Hardship;

\(d\) Convenience of the government due to a RIF (Reduction in Force);
or

\(e\) A physical or mental condition not characterized as a disability
that interfered with the individual\'s performance of duty but was not
the result of the individual\'s own willful misconduct.

\(5\) 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.

\(6\) If the second period of active-duty service referred to in
subparagraphs (4) or (5) above is of such nature or character that, when
aggregated with the initial period of service referred to in that
paragraph, it would cause the individual to lose eligibility to
educational assistance otherwise established by the initial 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.

\(7\) Time lost will not be considered to interrupt the continuity of
service. For the purpose of this section, "time lost" includes excess
leave, non-creditable time and

not-on-duty time.

**e. Reserved.**

**f. \[Educational Assistance** **(38 CFR 21.7020(b)(12))** means the
basic educational assistance, any supplemental educational assistance,
and all additional amounts payable such as amounts for dependents,
kickers, or payments based on additional contributions not to exceed a
total of \$600.\]

**g. Election** means a signed statement clearly showing the intent to
either enroll in or decline chapter 30.

**h. Kicker** means the additional amount contributed by a service
department to an individual who has a skill or specialty which the
service department designates as having a critical shortage or being
difficult to recruit.

**i. Open Period** means the period between December 1, 1988, and June
30, 1989, during which an individual on active duty who previously
declined to participate could elect chapter 30.

*NOTE: This period is also referred to as the \"open window.\"*

**j. \[Open Season** means a period defined by law during which an
individual may elect chapter 30.\]

**k. Reserved.**

**l. Selected Reserve (38 CFR 21.7020(b)(31))** means the Selected
Reserve of the Ready Reserve of any of the reserve components (including
the Army and \[Air\] National Guard of the United States) of the Armed
Forces, as required to be maintained under section 268(b), 10 U.S.C. The
seven reserve components are listed in subparagraph a(1) above.

**m. Supplemental Educational Assistance** **(38 CFR 21.7020(b)(34))**
means a benefit payable to an individual as a supplement to his or her
basic educational assistance for pursuit of a program of education. No
service department has authorized supplemental assistance at this time.

**n. 2 X 4** (Two by Four) means an eligibility category involving 2
years of active duty followed by 4 years in the Selected Reserve.

**SUBCHAPTER I --- CATEGORY I ELIGIBILITY**

**1.03 INTRODUCTION**

Category I has four subcategories:

**a. Category IA (Less Than 3 Years).** This category applies to an
individual who --

\(1\) First enters on active duty after June 30, 1985;

\(2\) Has an \[ \] obligated period of active duty of less than 3 years;
and

\(3\) Has no Selected Reserve service for eligibility purposes.

**b. Category IB (3 Years or More).** This category applies to an
individual who --

\(1\) First enters on active duty after June 30, 1985;

\(2\) Has an \[ \] obligated period of active duty of 3 years or longer;
and

\(3\) Has no Selected Reserve service for eligibility purposes.

**c. Category IC (2 Active + 4 Reserve).** This category applies to an
individual who --

\(1\) First enters on active duty after June 30, 1985;

\(2\) Has an \[ \] obligated period of active duty of less than 3 years;
and

\(3\) Has Selected Reserve service used to establish chapter 30
eligibility.

**d. Open Period (1988-89 Election).** This category applies to
individuals who first entered active duty beginning July 1, 1985, and
ending June 30, 1988, and elected not to participate in chapter 30.
During the period beginning on December 1, 1988, and ending on June 30,
1989, these individuals were allowed to withdraw their elections not to
participate.

**1.04 CATEGORIES IA, IB, IC, AND THE OPEN PERIOD (38 CFR 21.7042)**

See figures 1.01 through 1.04 for the eligibility requirements for these
categories. Also, see the supplementary material in paragraphs 1.15
through 1.18. Key points are highlighted.

+-----------------------------------------------------------------------+
| **CATEGORY IA**                                                       |
+-----------------------------------------------------------------------+
| **Entry on Active Duty:** Must [first enter]{.underline} on active    |
| duty [after June 30, 1985]{.underline}. **\[**(See par. 1.02a for     |
| definition of active duty.)\] An individual who contracted before     |
| July 1, 1985, under a delayed enlistment program but who did not      |
| first enter active duty until after June 30, 1985, meets this         |
| requirement. (See par. 1.17a for more on \"first entry.\")            |
+-----------------------------------------------------------------------+
| **\[ \] Obligated Period of Active Duty:** [Less than 3               |
| years]{.underline}.                                                   |
+-----------------------------------------------------------------------+
| **Service Requirements:** \[Must serve 24 continuous months of an     |
| obligated period of less than 3 years except as provided below. (See  |
| par. 1.02d for definition of \"continuous active duty.\") Any         |
| obligated period may be considered. (See par. 1.15 for discussion of  |
| multiple periods of service.) A serviceperson is eligible after 24    |
| continuous months of a qualifying period of service. Two periods of   |
| service can be combined and treated as one period in limited          |
| instances. (See par. 1.17c(2).)\]                                     |
|                                                                       |
| If discharged with less than 24 months, separation reason must be for |
| one of the following: (1) Service-connected disability; (2) Medical   |
| condition preexisting service; (3) Hardship; (4) Reduction in force;  |
| (5) Physical or mental condition not characterized as a disability    |
| which interfered with the performance of duty and was not the result  |
| of the individual\'s misconduct; or (6) Convenience of the government |
| provided the individual served at least                               |
|                                                                       |
| 20 continuous months. (See par. 1.17d for more detail on separation   |
| reasons.)                                                             |
|                                                                       |
| \[Note: For reservists called to active duty, see paragraph           |
| 1.17a(4).\]                                                           |
+-----------------------------------------------------------------------+
| **Character of Discharge From Qualifying Period of Service:**         |
| [Honorable]{.underline}. (See par. 1.17e.)                            |
+-----------------------------------------------------------------------+
| **Election:** [Must not have declined chapter 30 in                   |
| writing]{.underline} at initial entry into service.                   |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Not an eligibility requirement]{.underline}.      |
| Service department is required to collect \$100 per month for the     |
| first 12 months of active duty unless the individual declines         |
|                                                                       |
| chapter 30 in writing. However, failure to collect \$1,200 does not   |
| affect eligibility.                                                   |
+-----------------------------------------------------------------------+
| **Education:** \[Must complete the requirements for a [secondary      |
| school diploma]{.underline}, an equivalency certificate, or [12       |
| credit hours]{.underline} leading to a standard college degree        |
| [before applying for benefits]{.underline}. (Also, see par. 1.17f.)\] |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** [Ineligible if received a commission after  |
| December 31, 1976]{.underline} upon graduation from a service academy |
| or completion of an ROTC scholarship program unless individual's      |
| chapter 30 eligibility was established before his or her              |
| commissioning.                                                        |
|                                                                       |
| [Exception:]{.underline} Individuals are eligible if commissioned     |
| after September 30, 1996, and they received less than \[\$3,400\]     |
| from ROTC scholarship in any one year \[(school year)\] while under   |
| the scholarship program. (Also see par. 1.17g for more details.)      |
+-----------------------------------------------------------------------+
| **Loan Repayment:** See paragraph 1.20c.                              |
+-----------------------------------------------------------------------+

Figure 1.01. Category IA Eligibility Requirements

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IB**                                                       |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Entry on Active Duty:** Must [first enter]{.underline} on active    |
| duty [after June 30, 1985]{.underline}. **\[**(See par. 1.02a for     |
| definition of active duty.)\] An individual who contracted before     |
| July 1, 1985, under a delayed enlistment program but who did not      |
| first enter active duty until after June 30, 1985, meets this         |
| requirement. (See par. 1.17a for more on \"first entry.\")            |
+-----------------------------------------------------------------------+
| **\[ \] Obligated Period of Active Duty:** [3 years or                |
| longer]{.underline}.                                                  |
+-----------------------------------------------------------------------+
| **Service Requirements:** \[Must serve 36 continuous months of an     |
| obligated period of 3 years or more except as provided below. (See    |
| par. 1.02d for definition of \"continuous active duty.\") Any         |
| obligated period may be considered. (See par. 1.15 for discussion of  |
| multiple periods of service.) A serviceperson is eligible after 24    |
| continuous months of a qualifying period of service. Two periods of   |
| service can be combined and treated as one period in limited          |
| instances. (See par. 1.17c(2).)\]                                     |
|                                                                       |
| If discharged with less than 36 months, separation reason must be one |
| of the following:                                                     |
|                                                                       |
| \(1\) Service connected disability; (2) Medical condition preexisting |
| service; (3) Hardship;                                                |
|                                                                       |
| \(4\) Reduction in force; (5) Physical or mental condition not        |
| characterized as a disability which interfered with the performance   |
| of duty and was not the result of the individual\'s misconduct; or    |
| (6) Convenience of the government provided the individual served at   |
| least 30 continuous months. (See par. 1.17d for more detail on        |
| separation reasons.)                                                  |
|                                                                       |
| \[Note: For reservists called to active duty, see paragraph           |
| 1.17a(4).\]                                                           |
+-----------------------------------------------------------------------+
| **Character of Discharge From Qualifying Period of Service:**         |
| [Honorable]{.underline}. (See par. 1.17e.)                            |
+-----------------------------------------------------------------------+
| **Election:** [Must not have declined chapter 30 in                   |
| writing]{.underline} at initial entry into service.                   |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Not an eligibility requirement]{.underline}.      |
| Service department is required to collect \$100 per month for first   |
| 12 months of active duty unless the individual declines chapter 30 in |
| writing. However, failure to collect \$1,200 does not affect          |
| eligibility.                                                          |
+-----------------------------------------------------------------------+
| **Education:** \[Must complete the requirements for a [secondary      |
| school diploma]{.underline}, an equivalency certificate, or [12       |
| credit hours]{.underline} leading to a standard college degree        |
| [before applying for benefits]{.underline}. (Also, see par. 1.17f.)\] |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** [Ineligible if received a commission after  |
| December 31, 1976]{.underline} upon graduation from a service academy |
| or completion of an ROTC scholarship program unless individual's      |
| chapter 30 eligibility was established before his or her              |
| commissioning.                                                        |
|                                                                       |
| [Exception:]{.underline} Individuals are eligible if commissioned     |
| after September 30, 1996, and they received less than \[\$3,400 \]    |
| from ROTC scholarship in any one year \[(school year)\] while under   |
| the scholarship program. (Also see par. 1.17g for more details.)      |
+-----------------------------------------------------------------------+
| **Loan Repayment:** See paragraph 1.20c.                              |
+-----------------------------------------------------------------------+

**Figure 1.02. Category IB Eligibility Requirements**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IC**                                                       |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Entry on Active Duty:** Must [first enter]{.underline} on active    |
| duty [after]{.underline} June 30, 1985. \[(See par. 1.02a for         |
| definition of active duty.)\] An individual who contracted before     |
| July 1, 1985, under a delayed enlistment program but who did not      |
| first enter active duty until after June 30, 1985, meets this         |
| requirement. (See par. 1.17a for more on \"first entry.\")            |
+-----------------------------------------------------------------------+
| **Active Service Requirement:** \[Must serve 24 continuous months of  |
| an obligated period of service except as provided below. (See par.    |
| 1.02d for definition of \"continuous active duty.\") Any obligated    |
| period may be considered. (See par. 1.15 for discussion of multiple   |
| periods of service.) Two periods of service can be combined and       |
| treated as one period in limited instances. (See par. 1.17c(2).       |
|                                                                       |
| If discharged early, separation reason must be one of the following:  |
| (1) Service-connected disability; (2) Preexisting medical condition;  |
| (3) Hardship; (4) Reduction in force;                                 |
|                                                                       |
| \(5\) Physical or mental condition not characterized as a disability  |
| which interfered with the performance of duty and was not the result  |
| of the individual\'s misconduct; or (6) Convenience of the government |
| provided the individual served at least 20 continuous months. (See    |
| par. 1.17d for more detail on separation reasons.)                    |
|                                                                       |
| \[Note: For reservists called to active duty, see paragraph           |
| 1.17a(4).\]                                                           |
+-----------------------------------------------------------------------+
| **Selected Reserve Requirement:** Must have a [4-year]{.underline}    |
| Selected Reserve obligation. If active duty ended on or after         |
| December 18, 1989, the individual must have incurred \[a reserve      |
| obligation within one year following discharge. (See par. 1.18 for    |
| more information.) The requirement to complete 4 years of Selected    |
| Reserve service does not apply if the individual was discharged or    |
| released:                                                             |
|                                                                       |
| · From the 2 years of active duty for: (1) Service connected          |
| disability; (2) Preexisting medical condition, or (3) Physical or     |
| mental condition not characterized as a disability which interfered   |
| with the performance of duty and was not the result of the            |
| individual\'s misconduct, [provided]{.underline} the individual was   |
| obligated at the beginning of the 2 years of active duty to serve 4   |
| years in the Selected Reserve. (See par. 1.18c for more information.) |
|                                                                       |
| · From the 4-year Selected Reserve requirement provided:              |
|                                                                       |
| > A. The individual ceases to be a member of the Selected Reserve     |
| > during the period beginning on October 1, 1991, and ending on       |
| > \[December 31, 2001\], by reason of the inactivation of the         |
| > individual\'s unit of assignment or by involuntary separation from  |
| > the Selected Reserve. This exemption does not apply to (1) An       |
| > individual who ceases to be a member of the Selected Reserve under  |
| > adverse conditions as characterized by the Secretary of the         |
| > military department concerned; or (2) An individual who, after      |
| > being involuntarily separated, is subsequently terminated from the  |
| > Armed Forces under adverse conditions as characterized by the       |
| > Secretary of the military department concerned.                     |
+-----------------------------------------------------------------------+

**Figure 1.03. Category IC Eligibility Requirements**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IC (CONTINUED)**                                           |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| > B. The individual was discharged or released from the Selected      |
| > Reserve because of (1) Service-connected disability; (2)            |
| > Preexisting medical condition; (3) Hardship;                        |
| >                                                                     |
| > \(4\) Reduction in force; (5) Physical or mental condition not      |
| > characterized as a disability which interfered with the performance |
| > of duty and was not the result of the individual\'s misconduct; or  |
| > (6) Convenience of the government provided the individual served at |
| > least 30 continuous months.                                         |
+-----------------------------------------------------------------------+
| **Character of Discharge From Qualifying Period of Service:**         |
| [Honorable]{.underline} from both the active service and the Selected |
| Reserve service if discharged from that service. (See par. 1.17e.)    |
+-----------------------------------------------------------------------+
| **Election:** [Must not have declined chapter 30 in                   |
| writing]{.underline} at initial entry into service.                   |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Not an eligibility requirement]{.underline}.      |
| Service department is required to collect \$100 per month for first   |
| 12 months of active duty unless the individual declines chapter 30 in |
| writing. However, failure to collect \$1,200 does not affect          |
| eligibility.                                                          |
+-----------------------------------------------------------------------+
| **Education: \[**Must complete the requirements for a [secondary      |
| school diploma]{.underline}, an equivalency certificate, or [12       |
| credit hours]{.underline} leading to a standard college degree        |
| [before applying for benefits]{.underline}. (Also, see par. 1.17f.)\] |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** [Ineligible if received a commission after  |
| December 31, 1976]{.underline} upon graduation from a service academy |
| or completion of an ROTC scholarship program unless individual's      |
| chapter 30 eligibility was established before his or her              |
| commissioning.                                                        |
|                                                                       |
| [Exception:]{.underline} Individuals are eligible if commissioned     |
| after September 30, 1996, and they received less than \[\$3,400\]     |
| from ROTC scholarship in any one year \[(school year) \]while under   |
| the scholarship program. (Also see par. 1.17g for more details.)      |
+-----------------------------------------------------------------------+
| **NOTES:**                                                            |
|                                                                       |
| *1. It is possible for an individual with an initial obligated period |
| of service of 3 or more years to meet the category IC requirements    |
| but fail to establish eligibility based on active service alone. An   |
| individual released early under the Air Force\'s \"Palace Chase\"     |
| program may fall into this category.*                                 |
|                                                                       |
| *2. For dual eligibility, see paragraph 1.18d.*                       |
|                                                                       |
| **Loan Repayment:** See paragraph 1.20c.                              |
+-----------------------------------------------------------------------+

**Figure 1.03. Category IC Eligibility Requirements (Continued)**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **OPEN PERIOD**                                                       |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Entry On Active Duty:** Must [first enter]{.underline} on active    |
| duty [after]{.underline} June 30, 1985 and before July 1, 1988. An    |
| individual who contracted before July 1, 1985, under a delayed        |
| enlistment program but who did not first enter active duty until      |
| after June 30, 1985, meets this requirement. (See par. 1.17a for more |
| on \"first entry.\")                                                  |
+-----------------------------------------------------------------------+
| **Election:** During the period from [December 1, 1988 to June 30,    |
| 1989]{.underline}, the individual [withdrew his or her previous       |
| election not to participate in chapter 30]{.underline}.               |
+-----------------------------------------------------------------------+
| **Service Requirement:** [Must have completed the period of active    |
| duty the individual was obligated to serve at the beginning of the    |
| open period]{.underline} (that is December 1, 1988), unless           |
| discharged early for one of the following reasons: (1)                |
| Service-connected disability; (2) Preexisting medical condition; (3)  |
| Hardship; (4) Reduction in force; (5) Physical or mental condition    |
| not characterized as a disability which interfered with the           |
| performance of duty and was not the result of the individual\'s       |
| misconduct; or (6) Convenience of the government provided the         |
| individual served at least 20 continuous months if obligated to serve |
| less than 3 years or 30 months if obligated to serve 3 years or more. |
| (See par. 1.17d for more detail on separation reasons.) \[ \]         |
|                                                                       |
| *NOTE: The obligated period of active duty referred to above need not |
| be the individual\'s initial obligated period of active duty. If, on  |
| December 1, 1988, an individual was in his or her second obligated    |
| period of service, the obligated period referred to is the second     |
| obligated period, not the initial obligated period.*                  |
+-----------------------------------------------------------------------+
| **Character Of Discharge \[From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}. (See par. 1.17e.)                            |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Not an eligibility requirement]{.underline}.      |
| Service department is required to collect \$1,200 but failure to      |
| collect this amount does not affect eligibility. (But see par. 1.20h  |
| for effect on entitlement.)                                           |
+-----------------------------------------------------------------------+
| **Education:** Must complete the requirements for a [secondary school |
| diploma]{.underline}, an equivalency certificate, or [12 credit       |
| hours]{.underline} leading to a standard college degree [before       |
| applying for benefits]{.underline}. (Also, see par. 1.17f.)\]         |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** [Ineligible if received a commission after  |
| December 31, 1976]{.underline} upon graduation from a service academy |
| or completion of an ROTC scholarship program unless individual was    |
| eligible before being commissioned. (Also, see par. 1.17g.)           |
+-----------------------------------------------------------------------+
| **Loan Repayment:** See paragraph 1.20c.                              |
+-----------------------------------------------------------------------+

**Figure 1.04. Open Period Eligibility Requirements**

**SUBCHAPTER II --- CATEGORY II ELIGIBILITY**

**1.05 INTRODUCTION**

Category II has \[four\] subcategories:

**a. Category IIA (Chapter 34/30 Conversion).** This category applies to
an individual who --

\(1\) Was eligible to receive benefits under chapter 34 on December 31,
1989; and

\(2\) Has no Selected Reserve service for eligibility purposes.

**b. Category IIB (Chapter 34/30 Conversion + Reserve).** This category
applies to an individual who --

\(1\) Was eligible to receive benefits under chapter 34 on December 31,
1989; and

\(2\) Has Selected Reserve service for purposes of establishing chapter
30 eligibility.

\[**c. Category IIC (Chapter 34/30 Conversion).** This category applies
to an individual who --

\(1\) Was eligible to receive benefits under chapter 34 on December 31,
1989; and has no Selected Reserve service for eligibility purposes; and

\(2\) Is eligible on December 27, 2001 as a result of Public Law
107-103.

**d. Category IID (Chapter 34/30 Conversion + Reserve).** This category
applies to an individual who --

\(1\) Was eligible to receive benefits under chapter 34 on December 31,
1989; and

has Selected Reserve service for purposes of establishing chapter 30
eligibility, and

\(2\) Is eligible on December 27, 2001 as a result of Public Law
107-103.\]

1.06 Categories IIA, IIB, IIC and IID (38 CFR 21.7044)

See figures 1.05 and 1.06 for the eligibility requirements for
categories IIA and IIB and see figures 1.07 and 1.08 for the eligibility
requirements for categories IIC and IID. Also, see the supplementary
material in paragraphs 1.17 and 1.18.

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IIA**                                                      |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Initial Service Requirement:** Must have met the requirements of    |
| title 38, chapter 34, U.S. Code, in effect as of December 31, 1989.   |
| To have been eligible under chapter 34, the individual [must have     |
| entered on active duty before January 1, 1977]{.underline}, or        |
| entered active duty before January 2, 1978, under a delayed           |
| enlistment program contracted for before January 1, 1977. (See pars.  |
| 9.01 through 9.04 for full chapter 34 requirements.)                  |
+-----------------------------------------------------------------------+
| **Chapter 34 Remaining Entitlement:** Must have had remaining chapter |
| 34 entitlement as of December 31, 1989.                               |
+-----------------------------------------------------------------------+
| **Subsequent Service Requirement:** Must have been on [active         |
| duty]{.underline} at any time beginning on [October 19, 1984 and      |
| ending on July 1, 1985]{.underline} and continued on active duty      |
| during that period without a break in service and then have served    |
| [at least 3 continuous years beginning July 1, 1985]{.underline}.     |
|                                                                       |
| If the individual was separated before June 30, 1988, the separation  |
| must have been for one of the following reasons: (1)                  |
| Service-connected disability; (2) Medical condition that preexisted   |
| service and which VA determines is not service-connected;             |
| (3)  Hardship; (4) Reduction in force; (5) Physical or mental         |
| condition not characterized as a disability which interfered with the |
| performance of duty and was not the result of the individual\'s       |
| misconduct; or (6) Convenience of the government provided the         |
| individual served at least 30 continuous months after June 30, 1985.  |
| (See par. 1.17d for more detail on separation reasons.)               |
+-----------------------------------------------------------------------+
| **Character Of Discharge \[From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}.                                              |
|                                                                       |
| (See par. 1.17e.)                                                     |
+-----------------------------------------------------------------------+
| **Election:** [Not required.]{.underline}                             |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Not required]{.underline}.                        |
+-----------------------------------------------------------------------+
| **Education:** \[Must complete the requirements for a [secondary      |
| school diploma]{.underline}, an equivalency certificate, or [12       |
| credit hours]{.underline} leading to a standard college degree        |
| [before applying for benefits]{.underline}. (Also, see par. 1.17f.)\] |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** Ineligible if commissioned after            |
| December 31, 1976, upon graduation from a service academy or          |
| completion of an ROTC Program unless individual can meet chapter 30   |
| eligibility requirements before being commissioned. (Also, see par.   |
| 1.17g.)                                                               |
+-----------------------------------------------------------------------+

**Figure 1.05. Category IIA Eligibility Requirements**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IIB**                                                      |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Initial Service Requirement:** Must have met the requirements of    |
| title 38, chapter 34, U.S. Code, in effect as of December 31, 1989.   |
| To have been eligible under chapter 34, the individual [must have     |
| entered on active duty before January 1, 1977]{.underline}, or        |
| entered active duty before January 2, 1978, under a delayed           |
| enlistment program contracted before January 1, 1977. (See            |
| paragraphs. 9.01 through 9.04 for full chapter 34 requirements.)      |
+-----------------------------------------------------------------------+
| **Chapter 34 Remaining Entitlement:** Must have had remaining chapter |
| 34 entitlement as of December 31, 1989.                               |
+-----------------------------------------------------------------------+
| **Subsequent Service Requirement:** Must have been on [active         |
| duty]{.underline} at any time beginning on [October 19, 1984 and      |
| ending on July 1, 1985]{.underline} and continued on active duty      |
| during that period without a break in service and then have served    |
| [at least 2 continuous years beginning July 1, 1985]{.underline}.     |
|                                                                       |
| [If the individual was separated before June 30, 1987, the separation |
| must have been for one of the following reasons]{.underline}: (1)     |
| Service-connected disability; (2) Medical condition that preexisted   |
| service and which VA determines is not service-connected;             |
| (3)  Hardship; (4) Reduction in force; (5) Physical or mental         |
| condition not characterized as a disability which interfered with the |
| performance of duty and was not the result of the individual\'s       |
| misconduct; or (6) Convenience of the government provided the         |
| individual served at least 20 continuous months after June 30, 1985.  |
| (See par. 1.17d for more detail on separation reasons.)               |
+-----------------------------------------------------------------------+
| **Selected Reserve Requirement:** [Must complete 4-years in Selected  |
| Reserve]{.underline}. This requirement does not apply if the          |
| individual was discharged or released from the Selected Reserve for   |
| one of the following reasons:                                         |
|                                                                       |
| \(1\) Service-connected disability; (2) Medical condition that        |
| preexisted service and which VA determines is not service-connected;  |
| (3) Hardship; (4) Reduction in force; (5) Physical or mental          |
| condition not characterized as a disability which interfered with the |
| performance of duty and was not the result of the individual\'s       |
| misconduct; or (6) Convenience of the government provided the         |
| individual served at least 30 continuous months. (See par. 1.17d for  |
| more on separation reasons.)                                          |
+-----------------------------------------------------------------------+
| **Character of Discharge \[From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}.                                              |
|                                                                       |
| (See par. 1.17e.)                                                     |
+-----------------------------------------------------------------------+
| **Election:** [Not required.]{.underline}                             |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Not required]{.underline}.                        |
+-----------------------------------------------------------------------+

**Figure 1.06. Category IIB Eligibility Requirements**

  -----------------------------------------------------------------------

  **CATEGORY IIB (CONTINUED)**

  **Education:** \[Must complete the requirements for a [secondary school
  diploma]{.underline}, an equivalency certificate, or [12 credit
  hours]{.underline} leading to a standard college degree [before
  applying for benefits]{.underline}. (Also, see par. 1.17f.)\]

  **ROTC/Service Academy:** Ineligible if commissioned after
  December 31, 1976, upon graduation from a service academy or completion
  of an ROTC Program unless individual can meet chapter 30 eligibility
  requirements before being commissioned. (Also, see par. 1.17g.)
  -----------------------------------------------------------------------

**Figure 1.06. Category IIB Eligibility Requirements (Continued)**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **\[CATEGORY IIC**                                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Initial Service Requirement:** Must have met the requirements of    |
| title 38, chapter 34, U.S. Code, in effect as of December 31, 1989.   |
| To have been eligible under chapter 34, the individual [must have     |
| entered on active duty before January 1, 1977]{.underline}, or        |
| entered active duty before January 2, 1978, under a delayed           |
| enlistment program contracted before January 1, 1977. (See            |
| paragraphs. 9.01 through 9.04 for full chapter 34 requirements.)      |
+-----------------------------------------------------------------------+
| **Chapter 34 Remaining Entitlement:** Must have had remaining chapter |
| 34 entitlement as of December 31, 1989.                               |
+-----------------------------------------------------------------------+
| **Subsequent Service Requirement:** Must [not]{.underline} have been  |
| on [active duty]{.underline} on                                       |
|                                                                       |
| [October 19, 1984]{.underline}. Must have reentered a period of       |
| active duty after October 19, 1984 and must have served [at least     |
| 3 continuous years of active duty at any time beginning on or after   |
| July 1, 1985]{.underline}.                                            |
|                                                                       |
| If the individual did not serve the three years, the separation must  |
| have been for one of the following reasons: (1) Service-connected     |
| disability; (2) Medical condition that preexisted service and which   |
| VA determines is not service-connected; (3)  Hardship; (4) Reduction  |
| in force; (5) Physical or mental condition not characterized as a     |
| disability which interfered with the performance of duty and was not  |
| the result of the individual\'s misconduct; or (6) Convenience of the |
| government provided the individual served at least 30 continuous      |
| months after June 30, 1985. (See par. 1.17d for more detail on        |
| separation reasons.)                                                  |
+-----------------------------------------------------------------------+
| **Character of Discharge From Qualifying Period of Service:**         |
| [Honorable]{.underline}.                                              |
|                                                                       |
| (See par. 1.17e.)                                                     |
+-----------------------------------------------------------------------+
| **Election:** [Not required.]{.underline}                             |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Not required]{.underline}.                        |
+-----------------------------------------------------------------------+
| **Education:** Must complete the requirements for a [secondary school |
| diploma]{.underline}, an equivalency certificate, or [12 credit       |
| hours]{.underline} leading to a standard college degree [before       |
| applying for benefits]{.underline}. (Also, see par. 1.17f.)           |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** Ineligible if commissioned after            |
| December 31, 1976, upon graduation from a service academy or          |
| completion of an ROTC Program unless individual can meet chapter 30   |
| eligibility requirements before being commissioned. (Also, see par.   |
| 1.17g.)                                                               |
+-----------------------------------------------------------------------+
| **Note:** This eligibility category cannot receive benefits before    |
| December 27, 2001.\]                                                  |
+-----------------------------------------------------------------------+

**Figure 1.07. Category IIC Eligibility Requirements**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **\[CATEGORY IID**                                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Initial Service Requirement:** Must have met the requirements of    |
| title 38, chapter 34,                                                 |
|                                                                       |
| U.S. Code, in effect as of December 31, 1989. To have been eligible   |
| under chapter 34, the individual [must have entered on active duty    |
| before January 1, 1977]{.underline}, or entered active duty before    |
| January 2, 1978, under a delayed enlistment program contracted before |
|                                                                       |
| January 1, 1977. (See pars. 9.01 through 9.04 for full chapter 34     |
| requirements.)                                                        |
+-----------------------------------------------------------------------+
| **Chapter 34 Remaining Entitlement:** Must have had remaining chapter |
| 34 entitlement as of December 31, 1989.                               |
+-----------------------------------------------------------------------+
| **Subsequent Service Requirement:** Must not have been on active duty |
| [on]{.underline} October 19, 1984. Must have reentered a period of    |
| active duty [on or after]{.underline} October 19, 1984 and must have  |
| served [at least 2 continuous years of active duty at any time on or  |
| after July 1, 1985, followed by 4 years in the Selected               |
| Reserve]{.underline}.                                                 |
|                                                                       |
| > *Note: The above rule contains a contradiction regarding October    |
| > 19, 1984. Contact Education Service if you encounter a person who   |
| > reentered active duty on October 19, 1984 (that exact day), served  |
| > at least 2 years of active duty beginning at some point after July  |
| > 1, 1985 followed by 4 years in the Selected Reserve*.               |
|                                                                       |
| If the individual did not serve the two years of active service, the  |
| separation must have been for one of the following reasons: (1)       |
| Service-connected disability; (2) Medical condition that preexisted   |
| service and which VA determines is not service-connected;             |
| (3)  Hardship;                                                        |
|                                                                       |
| \(4\) Reduction in force; (5) Physical or mental condition not        |
| characterized as a disability which interfered with the performance   |
| of duty and was not the result of the individual\'s misconduct; or    |
| (6) Convenience of the government provided the individual served at   |
| least 20 continuous months after June 30, 1985. (See par. 1.17d for   |
| more detail on separation reasons.)                                   |
+-----------------------------------------------------------------------+
| **Selected Reserve Requirement:** [Must complete 4-years in Selected  |
| Reserve]{.underline}. If active duty ended on or after December 18,   |
| 1989, the individual must have incurred a reserve obligation within   |
| one year following discharge. (See par. 1.18 for more information.)   |
| The requirement to complete 4 years of Selected Reserve service does  |
| not apply if the individual was discharged or released for:           |
|                                                                       |
| \(1\) Service-connected disability; (2) Medical condition that        |
| preexisted service and which VA determines is not service-connected;  |
| (3) Hardship; (4) Reduction in force; (5) Physical or mental          |
| condition not characterized as a disability which interfered with the |
| performance of duty and was not the result of the individual\'s       |
| misconduct; or (6) Convenience of the government provided the         |
| individual served at least 30 continuous months. (See par. 1.17d for  |
| more detail on separation reasons.)                                   |
+-----------------------------------------------------------------------+
| **Character Of Discharge From Qualifying Period of Service:**         |
| [Honorable]{.underline}. (See par. 1.17e.)                            |
+-----------------------------------------------------------------------+
| **Figure 1.08. Category IID Eligibility Requirements**                |
+-----------------------------------------------------------------------+

  -----------------------------------------------------------------------

  **\[CATEGORY IID (CONTINUED)**

  **ROTC/Service Academy:** [Ineligible if received a commission after
  December 31, 1976]{.underline}, upon graduation from a service academy
  or completion of an ROTC scholarship program unless individual was
  eligible before being commissioned. (Also, see par. 1.17g.)

  **Note:** This eligibility category cannot receive benefits before
  December 27, 2001.\]
  -----------------------------------------------------------------------

**Figure 1.08. Category IID Eligibility Requirements (Continued)\]**

**SUBCHAPTER III --- CATEGORY III ELIGIBILITY**

**1.07 INTRODUCTION**

Category III has three subcategories:

**a. Category IIIA (Involuntary Separation).** This category applies to
individuals who are [involuntarily]{.underline} separated from service
after February 2, 1991.

**b.** **Category IIIB (Voluntary Separation).** This category applies
to individuals who are separated on or after October 23, 1992, and who
receive [voluntary]{.underline} separation incentives under sections
1174a or 1175 of title 10, U.S.C.

**c. Category IIIC (Voluntary Separation\--Earlier Period).** This
category applies to individuals who were separated after December 4,
1991, and before October 23, 1992, and who received
[voluntary]{.underline} separation incentives under section 1174a or
1175 of title 10, U.S.C.

**1.08 CATEGORIES IIIA, IIIB, AND IIIC (38 CFR 21.7045)**

See figures \[1.09 through 1.11\] for the eligibility requirements for
categories IIIA, IIIB, and IIIC. Also, see the supplementary material in
paragraphs 1.17 and 1.18.

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IIIA**                                                     |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Service Requirements:** [An individual must have been on active     |
| duty on September 30, 1990, or on or after November 30, 1993, and     |
| involuntarily separated, as that term is defined in 10 U.S.C. 1141,   |
| after February 2, 1991]{.underline}. For Coast Guard, the involuntary |
| separation must be after September 30, 1994.                          |
+-----------------------------------------------------------------------+
| **Character Of Discharge \[From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}.                                              |
+-----------------------------------------------------------------------+
| **Election:** [Before separation, individual must elect chapter 30 or |
| withdraw any previous election which declined chapter                 |
| 30]{.underline}. VA may not accept elections.                         |
|                                                                       |
| *NOTE: VA will refund any unused chapter 32 contributions.*           |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Not an eligibility requirement]{.underline}.      |
| Service department is required to collect \$1,200 but failure to      |
| collect this amount does not cause the individual to be ineligible.   |
+-----------------------------------------------------------------------+
| **Education:** Must complete the requirements for a [secondary school |
| diploma]{.underline}, an equivalency certificate, or [12 credit       |
| hours]{.underline} leading to a standard college degree [before       |
| applying for benefits]{.underline}. (Also, see par. 1.17f.)           |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy**: Individuals commissioned after December 31, |
| 1976 upon graduation from a service academy or completion of an ROTC  |
| scholarship program [are]{.underline} eligible.                       |
+-----------------------------------------------------------------------+

**\[Figure 1.09.\] Category IIIA Eligibility Requirements**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IIIB**                                                     |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Service Requirements:** [An individual voluntarily separated after  |
| October 22, 1992, under 10 U.S.C. section 1174a or 1175, may elect    |
| chapter 30]{.underline}. For Coast Guard, the voluntary separation    |
| must be after September 30, 1994.                                     |
|                                                                       |
| *NOTE: The two service department programs offered under sections     |
| 1174a and 1175, title 10, U.S.C. are SSB (Special Separation Benefit) |
| and VSI (Voluntary Separation Incentive). Any voluntary separations   |
| before December 5, 1991, were not under SSB or VSI. (See M21-1, pt.   |
| III, par. 2.11 for additional information on SSB and VSI.)*           |
+-----------------------------------------------------------------------+
| **Character Of Discharge \[From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}.                                              |
+-----------------------------------------------------------------------+
| **Election:** [Before separation, the individual must elect chapter   |
| 30 and withdraw any previous election which declined chapter          |
| 30]{.underline}. VA may not accept elections.                         |
|                                                                       |
| *NOTE: VA will refund any unused chapter 32 contributions.*           |
+-----------------------------------------------------------------------+
| **Pay Reduction:** Pay reduction by service department                |
| [is]{.underline} a requirement for benefits. VA may [not]{.underline} |
| collect the \$1,200.                                                  |
+-----------------------------------------------------------------------+
| **Education:** Must complete the requirements for a [secondary school |
| diploma]{.underline}, an equivalency certificate, or [12 credit       |
| hours]{.underline} leading to a standard college degree [before       |
| applying for benefits]{.underline}. (Also, see par. 1.17f.)           |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy**: Individuals commissioned after December 31, |
| 1976 upon graduation from a service academy or completion of an ROTC  |
| scholarship program [are]{.underline} eligible.                       |
+-----------------------------------------------------------------------+

**\[Figure 1.10.\] Category IIIB Eligibility Requirements**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IIIC**                                                     |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Service Requirements:** [An individual voluntarily separated after  |
| December 4, 1991, and before October 23, 1992 under 10 U.S.C. section |
| 1174a or 1175 had until October 23, 1993, to elect chapter            |
| 30.]{.underline}                                                      |
|                                                                       |
| *NOTE: The two service department programs offered under sections     |
| 1174a and 1175, title 10, U.S.C. are SSB (Special Separation Benefit) |
| and VSI (Voluntary Separation Incentive). Any voluntary separations   |
| before December 5, 1991, were not under SSB or VSI. (See M21-1, pt.   |
| III, par. 2.11 for additional information on SSB and VSI.)*           |
+-----------------------------------------------------------------------+
| **Character Of Discharge \[From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}.                                              |
+-----------------------------------------------------------------------+
| **Election:** [Before October 23, 1993, the individual must have      |
| elected chapter 30 and withdrawn any previous election which declined |
| chapter 30]{.underline}. VA could accept these elections before       |
| October 23, 1993.                                                     |
|                                                                       |
| *NOTE: VA will refund any unused chapter 32 contributions.*           |
+-----------------------------------------------------------------------+
| **Pay Reduction:** Pay reduction by service department                |
| [is]{.underline} a requirement for benefits. VA may collect the       |
| \$1,200, if the service department fails to do this. There is no time |
| limit for paying the \$1,200.                                         |
+-----------------------------------------------------------------------+
| **Education:** Must complete the requirements for a [secondary school |
| diploma]{.underline}, an equivalency certificate, or [12 credit       |
| hours]{.underline} leading to a standard college degree [before       |
| applying for benefits]{.underline}. (Also, see par. 1.17f.)           |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** Individuals commissioned after December 31, |
| 1976 upon graduation from a service academy or completion of an ROTC  |
| scholarship program [are]{.underline} eligible.                       |
+-----------------------------------------------------------------------+

**\[Figure 1.11.\] Category IIIC Eligibility Requirements**

**SUBCHAPTER IV --- CATEGORY IV ELIGIBILITY**

**1.09 INTRODUCTION**

Category IV has \[three\] subcategories:

**a. Category IVA (1996 VEAP Election).** This category applies to
certain persons eligible for VEAP and who elected chapter 30 during the
one-year open season beginning October 9, 1996.

**b**. **Category IVB (1996 National Guard Election).** This category
applies to certain individuals in the National Guard who were given a
9-month period to elect chapter 30 beginning from October 9, 1996.

\[**c**. **Category IVC (2001 VEAP Election).** This category applies to
certain persons who are eligible for VEAP and elected chapter 30 during
the one-year open season beginning November 1, 2000.\]

**1.10 CATEGORIES IVA, IVB AND IVC**

See figures \[1.12, 1.13 and 1.14 for eligibility requirements for
categories IVA, IVB, and IVC.\] Also, see the supplementary material in
paragraphs 1.17 and 1.18.

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IVA**                                                      |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Service Requirement:** [Must have been serving on active duty on    |
| October 9, 1996]{.underline}. This includes individuals serving on    |
| full-time duty in any of the seven Reserve components under [title    |
| 10, U.S. Code]{.underline}. Certain individuals serving in the Army   |
| National Guard or the Air National Guard under [title 32]{.underline} |
| are included as well. (See par. 1.11.)                                |
+-----------------------------------------------------------------------+
| **Chapter 32 Or Section 903 Participant:** Must have been a chapter   |
| 32 or section 903 participant [as of]{.underline} October 9, 1996.    |
|                                                                       |
| \"P \"Participant\" means a person who was participating in the       |
| education benefits program established under title 38, chapter 32 or  |
| section 903 of PL 96-342. This includes:                              |
|                                                                       |
| · A person who has enrolled in and is making contributions by monthly |
| payroll deductions to the "fund."                                     |
|                                                                       |
| · A person who has contributed to the "fund" and has not disenrolled  |
| (e.g., users or potential users of benefits). (A person with some     |
| contributions of record as of October 9, 1996, even \$25, is          |
| considered a potential user of benefits and is therefore considered a |
| \"participant.\" If a person tried to disenroll but \$25 or other     |
| amount remained in their account as of October 9, 1996 due to         |
| oversight, the person is still a \"participant.\")                    |
|                                                                       |
| · A person who has enrolled in and has had monthly contributions to   |
| the "fund" made for him or her by the Secretary of Defense and some   |
| portion of these contributions remains on deposit in the fund as of   |
| October 9, 1996. (Applies to persons under section 903)               |
|                                                                       |
| · A person who has made a lump-sum contribution to the fund instead   |
| of or in addition to monthly contributions deducted from his or her   |
| military pay and some portion of these contributions remains on       |
| deposit in the fund as of October 9, 1996. (38 CFR 21.5021(e))        |
+-----------------------------------------------------------------------+
| **Character Of Discharge \[From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}.                                              |
|                                                                       |
| (Also, see par. 1.17e.)                                               |
+-----------------------------------------------------------------------+
| **Election:** [Must have elected chapter 30 during the one-year       |
| period beginning on]{.underline}                                      |
|                                                                       |
| [October 9, 1996, and ending October 8, 1997]{.underline}.            |
+-----------------------------------------------------------------------+

**\[Figure 1.12.\] Category IVA Eligibility Requirements**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IVA (CONTINUED)**                                          |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Must have basic pay reduced by \$100 a month for  |
| 12 months or make a \$1,200 lump-sum contribution]{.underline}. If    |
| the service department did not collect the full \$1,200, VA may       |
| collect the remainder. There is no time limit on payment of the       |
| \$1,200.                                                              |
|                                                                       |
| *NOTE: The collection of \$1,200 [is]{.underline} an eligibility      |
| requirement.*                                                         |
+-----------------------------------------------------------------------+
| **Education:** Must have completed the requirements for a [secondary  |
| school diploma]{.underline}, an equivalency certificate, or [12       |
| credit hours]{.underline} leading to a standard college degree        |
| [before applying for benefits]{.underline}. (Also, see par. 1.17f.)   |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** Individuals commissioned after December 31, |
| 1976 upon graduation from a service academy or completion of an ROTC  |
| scholarship program [are]{.underline} eligible.                       |
+-----------------------------------------------------------------------+
| **NOTES:**                                                            |
|                                                                       |
| > [Selected Reserve Service]{.underline}: Not required.               |
| >                                                                     |
| > [Chapter 32 Refunds]{.underline}: An individual who makes an        |
| > election is automatically disenrolled from chapter 32 effective the |
| > date of election. VA should have refunded any unused chapter 32     |
| > contributions to a person who made an election. Section 903         |
| > participants did not have any refundable contributions.             |
+-----------------------------------------------------------------------+

**\[Figure 1.12.\] Category IVA Eligibility Requirements (Continued)**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **CATEGORY IVB**                                                      |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Service Requirement:** Must have first entered full-time National   |
| Guard duty [under title 32, U.S. Code,]{.underline} between July 1,   |
| 1985, and November 28, 1989. The individual must have had no active   |
| duty before July 1, 1985, and must meet the service requirements of   |
| category IA, IB, or IC, as described above.                           |
+-----------------------------------------------------------------------+
| **Character Of Discharge \[From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}.                                              |
|                                                                       |
| (Also, see par. 1.17e.)                                               |
+-----------------------------------------------------------------------+
| **Election:** [Must have elected chapter 30 during the election       |
| window which was from October 9, 1996, through July 8,                |
| 1997]{.underline}.                                                    |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Must have basic pay reduced by \$100 a month for  |
| 12 months or make a \$1,200 lump-sum contribution]{.underline}. If    |
| service department did not collect the full amount before discharge,  |
| VA must collect any remaining balance. There is no time limit on      |
| payment of the \$1,200.                                               |
|                                                                       |
| *NOTE: The collection of \$1,200 [is]{.underline} an eligibility      |
| requirement.*                                                         |
+-----------------------------------------------------------------------+
| **Education:** Must have completed the requirements for a [secondary  |
| school diploma]{.underline}, an equivalency certificate, or [12       |
| credit hours]{.underline} leading to a standard college degree        |
| [before applying for benefits]{.underline}. (Also, see par. 1.17f.)   |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** Individuals commissioned after December 31, |
| 1976 upon graduation from a service academy or completion of an ROTC  |
| scholarship program \[[are not\]]{.underline} eligible.               |
+-----------------------------------------------------------------------+
| **NOTES:**                                                            |
|                                                                       |
| [Selected Reserve Service]{.underline}: Not required.                 |
|                                                                       |
| [\[Multiple Periods]{.underline}. Effective November 1, 2000, an      |
| individual who failed to establish category IVB eligibility based on  |
| his or her initial service may use a subsequent period of active duty |
| ( but not title 32) to establish eligibility under some other         |
| category. (See par. 1.15 for discussion of multiple periods of        |
| service.)\]                                                           |
+-----------------------------------------------------------------------+

**\[Figure 1.13.\] Category IVB Eligibility Requirements**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **\[CATEGORY IVC**                                                    |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Service Requirement:** [Must have been serving continuously on      |
| active duty through April 1, 2000]{.underline}. This includes         |
| individuals serving on full-time duty in the seven Reserve components |
| under [title 10, U.S. Code]{.underline}. Certain individuals serving  |
| in the Army National Guard or the Air National Guard under [title     |
| 32]{.underline} are included as well. (See par. 1.11.)                |
+-----------------------------------------------------------------------+
| **Chapter 32 or Section 903 Participant:** Must have been a chapter   |
| 32 or section 903 participant any time [before]{.underline} October   |
| 9, 1996.                                                              |
|                                                                       |
| \"P \"Participant\" means a person who was participating in the       |
| education benefits program established under title 38, chapter 32 or  |
| section 903 of PL 96-342. This includes:                              |
|                                                                       |
| · A person who has enrolled in and is making contributions by monthly |
| payroll deductions to the "fund."                                     |
|                                                                       |
| · A person who has contributed to the "fund" and has not disenrolled  |
| (e.g., users or potential users of benefits).                         |
|                                                                       |
| · A person who has enrolled in and has had monthly contributions to   |
| the "fund" made for him or her by the Secretary of Defense.           |
|                                                                       |
| · A person who has made a lump-sum contribution to the fund instead   |
| of or in addition to monthly contributions deducted from his or her   |
| military pay. (38 CFR 21.5021(e))                                     |
|                                                                       |
| **NOTE:** Participant could have withdrawn all contributions.         |
+-----------------------------------------------------------------------+
| **Character Of \[Discharge From Qualifying Period of Service:\]**     |
| [Honorable]{.underline}.                                              |
|                                                                       |
| (Also, see par. 1.17e.)                                               |
+-----------------------------------------------------------------------+
| **Election:** [Must have elected chapter 30 during the one-year       |
| period beginning on November 1, 2000, and ending October 31,          |
| 2001]{.underline}.                                                    |
+-----------------------------------------------------------------------+

**\[Figure 1.14.\] Category IVC Eligibility Requirements\]**

+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **\[CATEGORY IVC (CONTINUED)**                                        |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **Pay Reduction:** [Must have basic pay reduced by \$2,700 or make a  |
| \$2,700 lump-sum contribution]{.underline}. The individual has 18     |
| months from the date of the election to make this payment. If an      |
| individual set up an allotment with the military service, failure to  |
| meet the 18-month deadline due to error or delay will not be          |
| considered failure to meet this requirement as long as the service    |
| immediately collects the balance due. If the service department did   |
| not collect the full \$2,700 VA may collect the remainder, but it     |
| must still be within the 18-month time period.                        |
|                                                                       |
| *NOTE: The collection of \$2,700 [is]{.underline} an eligibility      |
| requirement.*                                                         |
+-----------------------------------------------------------------------+
| **Education:** Must have completed the requirements for a [secondary  |
| school diploma]{.underline}, an equivalency certificate, or [12       |
| credit hours]{.underline} leading to a standard college degree        |
| [before applying for benefits]{.underline}. (Also, see par. 1.17f.)   |
+-----------------------------------------------------------------------+
| **ROTC/Service Academy:** Individuals commissioned after December 31, |
| 1976 upon graduation from a service academy or completion of an ROTC  |
| scholarship program [are]{.underline} eligible.                       |
+-----------------------------------------------------------------------+
| **NOTES:**                                                            |
|                                                                       |
| > [Selected Reserve Service]{.underline}: Not required.               |
| >                                                                     |
| > [Chapter 32 Refunds]{.underline}: An individual who makes an        |
| > election is automatically disenrolled from chapter 32 effective the |
| > date of election. VA should have refunded any unused chapter 32     |
| > contributions to a person who made an election. Section 903         |
| > participants did not have any refundable contributions.             |
+-----------------------------------------------------------------------+

**\[Figure 1.14.\] Category IVC Eligibility Requirements (Continued)\]**

**1.11 \[CATEGORY IVA, IVC \-- TITLE 32 CASES\]**

Individuals who meet the following requirements may elect chapter 30
under category IVA.

a\. On October 9, 1996, they were serving on full-time duty in the
National Guard under [title 32]{.underline}, U.S. Code.

b\. They [first entered]{.underline} such full-time National Guard duty
\[after June 30, 1985.\]

c\. They had active duty service (not in the National Guard) before July
1, 1985, and they enrolled in chapter 32 during that service.

d\. They were chapter 32 \"participants\" on October 9, 1996. This means
on that date they had contributions in their account and their
delimiting date under chapter 32 must not have passed.

Example 1: A serviceperson initially entered active duty with the Army
in 1978 and participated in chapter 32. He was discharged on January 10,
1988, and remained a chapter 32 participant. On December 15, 1988, he
first entered full-time duty in the National Guard under title 32. He
was on active duty in the National Guard on October 9, 1996.

Analysis: This person meets all the requirements listed above and was
eligible to make the category IVA election.

Example 2: Same facts as example 1 except that the person was discharged
from the Army in 1984 instead of 1988.

Analysis: This person was not eligible to elect chapter 30 because his
chapter 32 delimiting date was before October 9, 1996. Therefore, he was
not a \"participant\" on that date.

Example 3: Same facts as example 1 except the person was discharged from
the Army on July 1, 1983, and first entered full-time National Guard
duty under title 32 on February 15, 1984.

Analysis: This person was not eligible to elect chapter 30 because his
initial National Guard service \[began before July 1, 1985.\]

Example 4: A veteran first entered active duty on July 1, 1983, and was
subsequently discharged without becoming a chapter 32 participant. On
July 3, 1986, he first entered full-time duty in the National Guard
under title 32.

Analysis: This individual could not make a category IVB election because
his [first]{.underline} period of active duty was before July 1, 1985.
Also, he could not make a category IVA election because he was not a
chapter 32 participant on October 9, 1996.

**1.12. Reserved**

**1.13 Reserved**

**1.14 Reserved**

**SUBCHAPTER V --- ADDITIONAL ELIGIBILITY ISSUES**

**1.15 \[MORE THAN ONE PERIOD OF SERVICE\]**

**\[a. Provision Effective November 1, 2000**

\(1\) PL 106-419 revised the law that underlies categories IA, IB, and
IC to allow individuals to meet their length of service requirement by
using [any]{.underline} obligated period of active duty.

\(2\) Veterans cannot combine periods of active duty in an attempt to
qualify for chapter 30 benefits except as provided in paragraph
1.17c(2). Eligibility has to be based on one obligated period of
service. If more than one obligated period of service is qualifying,
base the veteran's eligibility on the period most advantageous to him or
her.

\(3\) A serviceperson still qualifies for chapter 30 once he or she
serves on active duty for 24 months. However, the two years of
qualifying service a serviceperson needs to have in order to establish
chapter 30 eligibility must come from the obligated period of service
that will establish eligibility. It is not permissible to combine two
different periods to achieve the required 24 months.

\(4\) If an individual declined to participate in the chapter 30 program
during the individual's initial obligated period of service, that
individual cannot establish eligibility under this new provision. Once
an individual declines to participate, that individual cannot establish
eligibility unless the individual qualifies under the "Open Period"
provision or can establish eligibility at discharge under category III.

**b. Effective Date.** An individual who is now eligible under this new
provision cannot receive benefits for training before November 1, 2000.
However, the new rule is retroactive to July 1, 1985 so individuals
previously denied benefits might now be found eligible.

**c. Delimiting Dates.** See paragraph 1.19d for delimiting rules that
apply to these cases.\]

**1.16 AMOUNTS WITHHELD**

Military pay reductions revert to the Treasury Department. Unlike
chapter 32 contributions, VA has no authority to refund a pay reduction
for any reason except an individual\'s death. (See par. 1.29 for
information on the death benefit.) Chapter 30 pay reductions are not,
for purposes of any Federal law, considered to have been received by or
to be within the control of the individual. \[See paragraph 1.23
regarding additional contributions that are allowable based on Public
Law 106-419.\]

**1.17 CLARIFICATION OF BASIC ELIGIBILITY ISSUES**

**a. \[Excluded Service for Categories I and IVB.** Eligibility
categories IA, IB, IC, the Open Period and category IVB require an
individual to first enter active duty after

June 30, 1985. Effective November 18, 1988, the law excludes certain
types of service, listed below, from being considered as part of an
obligated period for these categories. (However, these types of service
are still considered active duty.) Also, an individual with one of these
types of service that began [before]{.underline} July 1, 1985, can
reenter active duty after June 30, 1985, and establish eligibility based
on the subsequent period. The excluded types of service are:\]

\(1\) A period of active duty terminated because the individual was a
minor for purposes of service in the Armed Forces;

\(2\) A period of active duty terminated because of an erroneous
enlistment or induction;

*\[NOTE: DoD makes a distinction between "fraudulent enlistment" and
"erroneous enlistment". This rule applies only to "erroneous
enlistment."\]*

\(3\) A period of active duty terminated because of a defective
enlistment agreement; or,

\(4\) A period of active duty of less than 2 years that a member of the
reserve was ordered to perform under 10 U.S.C. section 12301, 12302,
12304, 12306, or 12307.

*\[NOTE: A person called to active duty under the sections listed above
and who serves two continuous years or more may use such service to
establish eligibility under categories IA, IB or IC. A person initially
called up for less than 2 years may extend and meet the 2-year
requirement. However, if the service is for less than two-years, it is
excluded service as indicated above.\]*

**b. \[Excluded Service For Other Categories\]**

\(1\) [All Categories]{.underline}. For all categories, VA will exclude
the following types of service in making eligibility determinations: (1)
Assignment full-time to a civilian institution; (2) Service as a cadet
or midshipman at a service academy; and

\(3\) Active duty for training under 10 U.S.C. 12103(d).

\(2\) [Categories I and II]{.underline}. For categories I and II only,
VA will exclude any period of service listed in 38 CFR 3.15 when making
an eligibility determination. The excluded periods are:

\(a\) Time spent on industrial, agricultural, or indefinite furlough;

\(b\) Time lost on absence without leave (without pay);

\(c\) Time spent under arrest (without acquittal);

\(d\) Time spent in desertion; or

\(e\) Time spent while undergoing sentence of a court-martial.

**c. Continuous Active Duty.** This term appears in both category I and
category II eligibility requirements. (See par. 1.02d for the
definition.) A complete separation from active duty service interrupts
the continuity of service.

EXAMPLE: A veteran served from July 1, 1995, to May 5, 1996, and
received a complete separation from service for convenience of the
government. He reenlisted again on July 10, 1997, and served until
August 1, 1998 and again received a separation for convenience of the
government. Neither period of service is sufficient to establish chapter
30 eligibility. This individual is not eligible for chapter 30.

*NOTE: This is a case where a separation for the convenience of the
government is not qualifying under the definition of continuous active
duty (see par. 1.02d). To qualify under paragraph 1.02d, a separation
for convenience of the government must be due to a reduction in force.*

\(1\) Time lost while on active duty (e.g., Absence Without Leave) will
**not** interrupt an individual\'s continuous active duty.

EXAMPLE: A veteran served from July 1, 1975, through October 1, 1988.
There was a 10-day period of time lost in 1987. The 10-day period does
not break the veteran\'s continuous active duty. Since this veteran
completed 36 months of continuous service after June 30, 1985, he would
be eligible if he meets all other requirements.

\(2\) An individual considered to have continuous active duty based upon
the conditions described in subparagraph 1.02d(3) (two periods combined)
may receive education benefits for training pursued on or after October
1, 1993.

EXAMPLE: A veteran initially enlisted for 3 years on January 15, 1988.
He was discharged for hardship on August 12, 1988. On January 3, 1990,
the veteran returned to active duty, served for 30 months, and was
honorably discharged on July 2, 1992. The veteran is entitled to payment
as if the creditable period of service were the sum of the period from
January 15, 1988, through August 12, 1988, and January 3, 1990, through
July 2, 1992.

\(a\) To determine the number of months of entitlement, combine the two
periods of active duty. Use the separation reason from the last period
to determine whether the individual\'s entitlement will be 36 months or
based upon 1 month for each month of active duty.

\(b\) This provision will not be applied to an individual\'s
disadvantage. For instance, by treating the two periods of active duty
as one continuous period, an individual separated from active duty with
other than an honorable discharge after reentering active duty would
thereby lose benefit eligibility. In such cases, VA will not consider
the individual\'s initial service as continuous with the subsequent
disqualifying period.

VA will award benefits, if otherwise appropriate, based only upon the
initial period of honorable service. Thus, once eligibility is
established based on the qualifying active duty period, a subsequent
period will not be used to deny eligibility.

EXAMPLE: A veteran initially enlisted in the Navy for 4 years on June
20, 1990. He was discharged on May 2, 1991, for a condition which
interfered with duty. He enlisted in the Army on November 10, 1991, and
was discharged under other than honorable conditions on October 29,
1992. The veteran is entitled to benefits based upon the period of
active duty from June 20, 1990, to May 2, 1991.

*NOTE: The individual must not have declined chapter 30 at beginning of
the first period of service to be eligible to combine two periods under
category I.*

**d. Separation Reasons.** Categories I and II and IVB permit early
release from active duty or early release from Selected Reserve service
if the service department separated the individual for one of six
allowable reasons listed in the figures 1.01 through 1.08 and 1.13.
Normally, VA will follow the service department\'s decision as to an
individual\'s separation reason. Paragraphs 3.04 through 3.06 cover
separation reasons in greater detail.

**e. Character of Discharge Requirement**. An individual separated or
released after completing the qualifying period of active duty or
Selected Reserve service must receive an honorable discharge from that
period of service.

\(1\) [No Honorable Discharge Certificate]{.underline}. In certain
cases, the honorable discharge requirement is met if the Secretary
concerned characterizes the individual\'s service as honorable even
though the individual does not receive an honorable discharge
certificate. These cases are:

\(a\) An individual placed on the retired list (categories IA, IB, IC
and IIA;IIB, IIC and IID.)

\(b\) An individual transferred to the Fleet Reserve or Fleet Marine
Corps Reserve categories IA, IB, and IIA;

\(c\) An individual placed on the temporary disability retired list
categories IA, IB, IIA, IIC;

\(d\) An individual released from active duty for further service in a
reserve component after service on active duty characterized by the
Secretary concerned as honorable service (open period.)

\(e\) An individual who completes his or her Selected Reserve service
and is transferred to the Standby Reserve or an element of the Ready
Reserve other than the Selected Reserve (category IC and IIB.)

\(2\) [Less Than Honorable Discharge]{.underline}. A \"less than
honorable\" character of discharge (e.g., \"under honorable
conditions,\" \"general,\" \"bad conduct,\" or \"undesirable\") is not
qualifying for chapter 30.

*NOTE 1: For chapter 30, VA does [not]{.underline} make its own
character of discharge determination for a discharge which is less than
honorable. This is because chapter 30, unlike other VA benefits, does
not allow benefits to individuals discharged or released under
conditions other than "honorable.\"*

*NOTE 2: The definition of \"discharge or release\" in 38 U.S.C. 101(18)
does [not]{.underline} apply to chapter 30. VA does [not]{.underline}
have the authority to administratively consider an individual to have
been discharged from his or her obligated period of active duty service
and decide the character of that service.*

\(3\) [Uncharacterized Discharges]{.underline}. VA considers an
uncharacterized discharge to be \"honorable\" if it is issued upon entry
level separation for hardship, a service-connected disability, a medical
condition preexisting service, or a physical or mental condition not
characterized as a disability which interfered with the performance of
duty and was not the result of willful misconduct.

\(4\) [Conditional Discharges]{.underline}. \[A conditional discharge
(e.g., to reenlist, to accept an appointment as a commissioned officer)
meets the honorable discharge requirement if it occurs at the end of a
qualifying period of service.\] Based on advice from the Department of
Defense, VA will consider a discharge for the purpose of
[reenlistment]{.underline} to be for the convenience of the government.
The following examples illustrate the effect of this provision.

EXAMPLE 1: An individual with a 36-month obligation receives a
conditional discharge to reenlist after 32 months and receives a general
discharge 2 years later. \[This person meets the honorable discharge
requirement based on his/her conditional discharge. The length of
service of 32 months is qualifying because the discharge is considered
to be for the convenience of the government.\]

EXAMPLE 2: An individual with a 36-month obligation receives a
conditional discharge to reenlist after 29 months and receives a less
than honorable discharge 2 years later. She is not eligible. Although
she received an honorable discharge after 29 months, the separation
reason (i.e., convenience of the government) is not qualifying. (This
example illustrates how different the chapter 30 rules are from the
rules for other title 38 benefits. For all other benefits, she would be
eligible if she satisfactorily completed the obligated period of
service.)

EXAMPLE 3: An individual with a 36-month obligation receives a
conditional discharge to reenlist after 31 months and receives an other
than honorable discharge in the 35th month. Under chapter 30, he is
eligible because the conditional discharge meets the honorable discharge
requirement and the separation reason is qualifying. (This example also
illustrates the difference between chapter 30 and all other benefits. He
would probably be ineligible for all other benefits because 38 U.S.C.
101(18) applies to these benefits, and VA would probably rule that he
did not satisfactorily complete his obligated period of service.)

EXAMPLE 4: \[An individual with a 48-month obligation receives a
conditional discharge to reenlist after 38 months. She later receives a
discharge under other than honorable conditions. She is eligible based
on the conditional discharge. At that point, she had completed the
required 36 months of service.\]

\(5\) [Statutory Bars to Benefits]{.underline}. 38 CFR 3.12(c) outlines
various statutory bars to benefits (such as desertion or resignation by
an officer for the good of the service) which apply regardless of the
character of discharge. These statutory bars apply to chapter 30 as well
as to other VA benefits. (See pt. III, par. 3.08 and M21-1, pt. IV, pt.
11.01.)

**f. Education Requirement.** \[As indicated in figures 1.01 through
1.14, the education requirement is the same for each category. This was
not true before November 1, 2000. Categories I and II had more
restrictive requirements before that date. Public Law 106-419
standardized the education requirement and provided that persons not
eligible based on the previous requirements could now become eligible
effective November 1, 2000.

\(1\) [Previous Chapter 30 Denials]{.underline}**.** Individuals
previously denied chapter 30 benefits because they didn't meet this
requirement before the end of their first obligated period of active
duty can now establish eligibility to chapter 30 by meeting this
requirement before reapplying for benefits. If an individual reapplies
for chapter 30 benefits and indicates that he or she has a high school
diploma or its equivalent, VA will accept the claimant's word without
further verification.

*NOTE: If an individual applies for benefits before obtaining a high
school diploma, VA will deny the claim. Inform the individual that he or
she needs to obtain a high school diploma or its equivalent in order to
establish eligibility. The individual is not disqualified from
reapplying for benefits once the individual obtains a high school
diploma or its equivalent.*

\(a\) An individual who is now eligible under this new provision cannot
receive benefits for training before November 1, 2000. However, the new
rule is retroactive to July 1, 1985 so individuals previously denied
benefits may now be found eligible.

**(**b) See paragraph 1.19d for delimiting rules which apply to these
cases.

(2)\[[When Benefits Begin]{.underline}. Chapter 30 eligibility can never
begin until an individual meets the education requirement. For example,
a serviceperson who otherwise would be eligible after 24 months of
service is not eligible until he or she meets the education requirement.

\(3\) \[[Armed Forces Institute Document]{.underline}. VA will consider
a United States Armed Forces Institute document as an equivalency
certificate for chapter 30 eligibility purposes. Secondary school
diplomas or the equivalents from foreign jurisdictions also satisfy the
secondary diploma requirement.

\(4\) [12-Credit Provision]{.underline}. Effective October 1, 1998, the
12-credit provision may include credit a college may grant for life
experiences.\]

*NOTE: Before November 18, 1988, the law required that an individual
must have received a secondary school diploma or equivalency
certificate. Effective November 18, 1988, the law requires only that the
individual must complete the requirements for a secondary school diploma
or equivalency certificate. Actual receipt of the document is no longer
required.*

**g. ROTC Scholarship and Service Academy.** Except for categories III,
IVA, IVC, and cases affected by subparagraph (4) below, an individual
who received a commission after December 31, 1976, upon completing an
ROTC (Reserve Officers Training Corps) scholarship program (section 2107
of title 10, U.S. Code) or upon graduating from a service academy is
[not]{.underline} eligible for chapter 30. Some clarification is
necessary for the proper application of this provision.

\(1\) The bar does [not]{.underline} apply to an individual who drops
out of an ROTC scholarship program before receiving a commission. For
example, an individual who received ROTC scholarship assistance but
declined that assistance for his last semester would not be barred from
chapter 30.

\(2\) The bar does [not]{.underline} apply to an individual who
completes the ROTC scholarship courses but continues in school taking
non-ROTC courses. The bar [does]{.underline} apply once that individual
receives the commission.

\(3\) The bar does [not]{.underline} apply to an individual who
establishes chapter 30 eligibility before attending one of the service
academies or receiving an ROTC scholarship.

EXAMPLE 1: A category I individual completes 3 years of service and
establishes eligibility to chapter 30. He subsequently receives
assistance under the ROTC scholarship program and ultimately receives a
commission. This individual could receive chapter 30 benefits
simultaneously with scholarship assistance and also after the commission
is granted. The bar to chapter 30 benefits does [not]{.underline} apply
if an individual was entitled to chapter 30 at the time of the
commission.

EXAMPLE 2: An enlisted individual initially served from 1974 to 1978. In
1983, she received a commission under the ROTC scholarship program and
reentered active duty. She served until 1992. This individual is
[not]{.underline} eligible for chapter 30 because her commission
preceded the qualifying period of active duty service after June 30,
1985, required to establish chapter 30 eligibility.

\(4\) The bar does [not]{.underline} apply to an ROTC graduate who
entered active duty as a commissioned officer after September 30, 1996,
and who received \[\$3,400 or less in [any one school year]{.underline}
while participating in the ROTC scholarship program. Originally the
ceiling was \$2,000 or less in any one year. However, Public Law 107-103
enacted December 27, 2001, raised the ceiling to \$3,400, for benefits
payable beginning

###### January 1, 2002. This means that individuals who received more than \$2,000, but not 

more than \$3,400, in any one year are not eligible for chapter 30
benefits before

January 1, 2002.

\[EXAMPLE 1: An officer served from November 1, 1996, to October 31,
2000, and he received a \$2,500 scholarship in one year and over \$3,400
in the other years. He was previously denied chapter 30. Under the new
rule, he is eligible. However, his delimiting date would be 10 years
from October 31, 2000. Also, he could not receive payment for any
training before January 1, 2002.

EXAMPLE 2: An officer served from November 1, 1996, to October 31, 2000,
and he received a \$2,500 scholarship every year except for his second
year for which he received only \$1,900. He is eligible under the former
\$2,000 rule. His delimiting date would be 10 years from October 31,
2000. He qualifies for payment as early as November 1, 1998, if he was
in training on that date.\]

*NOTE: Section 210*7a *of Title 10, U.S. Code is a separate financial
assistance program and is [not]{.underline} a bar to chapter 30
benefits.*

**1.18 ADDITIONAL ISSUES IN SELECTED RESERVE CASES**

**a. General.** This paragraph provides additional instructions for
category IC, IIB and \[IID\] cases. VA refers to these cases as 2 X 4
cases since eligibility requires a combination of at least 2 years of
active service followed by 4 years of Selected Reserve service.

*NOTE 1: \[Only Selected Reserve service is qualifying. It is important
to distinguish Selected Reserve service from other types of reserve
service. Selected Reserve service includes members of drilling units,
AGR (Active Guard and Reserve) members, and IMA (Individual Mobilization
Augmentee) members. Standby Reserve service, Retired Reserve service and
IRR (Individual Ready Reserve) service are [not]{.underline} qualifying
because these categories are not part of the Selected Reserve. It is
also important to recognize that AGRs are on active duty while still in
the Selected Reserve. Persons called up to active duty (see par.
1.17a(4) are [not]{.underline} AGRs. They are moving [from]{.underline}
the Selected Reserve to the active components.\]*

*NOTE 2: The law requires a full 4-year commitment in the Selected
Reserve to establish 2 X 4 eligibility. An individual with less than a
full 4-year commitment does not establish eligibility until he or she
extends his or her commitment to a full 4 years. An extension to a full
4-year commitment may be done at any time.*

**b. Continuous Service in Selected Reserve.** Frequently, a member in
the Selected Reserve will have a break in reserve service caused by a
situation such as a job transfer to another locality. The service
department will determine whether such periods interrupt the member\'s
continuous Selected Reserve service for chapter 30 purposes.

**c. Evidence of Selected Reserve Obligation.** The evidence required to
establish that the individual has enlisted in the Selected Reserve for
at least 4 years will be:

\(1\) A copy of orders or an enlistment contract (such as a DD Form 4
Enlistment/Reenlistment Document - Armed Forces of the United States,
page 2) showing an assignment to a Selected Reserve unit for a
commitment of at least 4 years; or

\(2\) A written statement from the Commander of the local unit verifying
the same information.

**d. Selected Reserve Service Obligated in Advance.** As noted in figure
1.03, the requirement to serve the 4 years does not apply in category IC
cases discharged for certain reasons if the individual agreed at the
beginning of the 2 years of active service to serve 4 years in the
Selected Reserve. The Navy had such a program at one time called the
Navy Sea College program. Under the Navy Sea College program, an
individual enlisted for 2 years of active duty, followed by 4 years in
the Selected Reserve, followed by 2 years in the inactive Ready Reserve.

**e. Election -- Chapter 30 Versus Chapter 1606**

\(1\) [Election Regarding the Crediting of Reserve Service]{.underline}.
An individual eligible for benefits under chapter 1606, title 10,
U.S.C., may not use the same period of Selected Reserve service to
establish eligibility under chapter 30 (category IC, IIB, \[or IID\]).
An individual must elect whether he or she wishes Selected Reserve
service to be credited toward establishing eligibility under chapter 30
or chapter 1606. See paragraph 3.09d for further details.

*NOTE: The individual may revoke his or her election provided he or she
has not negotiated a check or received an electronic payment. Once the
individual has negotiated a check or received an electronic payment
under either chapter, the election is irrevocable.*

\(2\) [Elections Between Chapter 1606 and Chapter 30]{.underline}. If a
veteran is eligible to receive benefits under both chapter 30 and
chapter 1606, he or she may alternate from one benefit back to the other
but not more frequently than once per month.

**SUBCHAPTER VI --- \[PERIODS OF ELIGIBILITY AND ENTITLEMENT\]**

**1.19 PERIOD OF ELIGIBILITY (38 CFR 21.7050)**

**a. Basic 10-year Period of Eligibility.** An individual has a 10-year
period to use his or her eligibility except as provided in subparagraphs
b and c below. The day following the ending date of this 10-year period
is the individual\'s delimiting date.

\(1\) For an individual in category IA, IB, open period, IIIA, IIIB,
IIIC, IVA,\[ or IVC\], the 10-year delimiting period begins on the date
of last discharge or release from active duty.

\(2\) For an individual in category IC, IIB, the 10-year delimiting
period begins on the date the individual completes the 4-year Selected
Reserve requirement.

*\[NOTE: The delimiting period for category IIB is subject to the
reduction described below in subparagraph c.\]*

\(3\) For an individual in category IIA, the 10-year delimiting period
begins on:

\(a\) The date of last discharge or release from active duty, or

\(b\) January 1, 1990, whichever is later \[and is subject to the
reduction described below in subparagraph c.\]

EXAMPLE: A veteran eligible under category IIA was discharged from
active duty on September 30, 1988. Her 10-year delimiting period for
chapter 30 ends on January 1, 2000, since this is the later of the two
possible dates.

\(4\) For an individual in category IVB, the delimiting date is the
later of:

\(a\) 10 years after the date of election of category IVB; or

\(b\) 10 years after the last release from active duty or, for cases
that otherwise meet category IC requirements, the date described in
subparagraph a(2) above.

\[(5) For an individual in category IIC and IID, the 10-year delimiting
period begins on December 27, 2001 but is subject to the reduction
described below in subparagraph c.\]

**b. Extension of Basic 10-Year Period of Eligibility**

\(1\) [Later Period of Active Duty]{.underline}. See part III, paragraph
4.02.

\(2\) [Disability Which Prevents Completion of Program]{.underline}. See
part III, paragraph 4.03.

\(3\) [Correction of Military Records or Upgrade of
Discharge]{.underline}. An individual may become eligible for chapter 30
as a result of a correction of military records under

10 U.S.C. 1552, a change, correction, or modification of a discharge or
dismissal under 10 U.S.C. 1553, or other corrective action by competent
military authority. If a service department upgrades a discharge or
otherwise corrects a record, the individual\'s delimiting date will be
10 years from the effective date of the upgrade or other correction. The
individual will not be eligible for benefits before this date. \[(38 CFR
21.7050(e))\]

EXAMPLE: An individual entered active duty on September 15, 1986, and
was given a general discharge on September 14, 1989. The individual met
all the basic eligibility requirements for chapter 30 except that she
was not honorably discharged. The Board of Correction of Military
Records for her branch of service changed her discharge to \"honorable\"
on January 10, 1991. Her delimiting date is January 11, 2001.

\(4\) [POW or MIA Status]{.underline}. If an individual eligible for
chapter 30 is detained by a foreign government or power
[after]{.underline} his or her last discharge or release from active
duty, VA will extend the original delimiting date by the length of time
that he or she was detained and by any period immediately following
release from captivity during which he or she was hospitalized in a
civilian, military, or VA medical facility.

EXAMPLE: A veteran entered active duty on September 20, 1970, and was
discharged on September 30, 1990. He was held prisoner by a foreign
power from January 30, 1991, to March 15, 1991. The 1 month and 16 days
spent as a prisoner will extend his original delimiting date of October
1, 2000, to November 16, 2000.

**c. Reduction of Basic 10-Year Period of Eligibility**

\(1\) VA will reduce the 10-year eligibility period for an individual
eligible under category II (all four subcategories) by the time he or
she was not serving on active duty during the period from January 1,
1977 to June 30, 1985.

\(2\) There is an exception for an individual who entered service under
a delayed enlistment program between January 1, 1977, and January 1,
1978. In this case, VA will not reduce the 10-year eligibility period
for periods of non-duty which occurred before the individual entered
active duty.

\[**d. Revised Delimiting Date Based on Public Law 106-419
Liberalization**

\(1\) Individuals who become eligible under the liberalized high school
provision (par. 1.17f) or the liberalized period of service provision
(paragraph 1.15) are entitled to a recomputation of their delimiting
date. Their new delimiting date is 10 years and one day from the
[later]{.underline} of the following dates.

\(a\) November 1, 2000; or

\(b\) The date of the individual's last discharge or release from active
duty.\]

**1.20 \[ENTITLEMENT ISSUES\] (38 CFR 21.7072 AND 21.7073)**

*NOTE: When calculating entitlement for service of less than 36 months,
VA will count whole months. Fractions of a month will be dropped.*

**a. Active Duty Service Only**

\(1\) [Category IA]{.underline}. An individual in category IA will get
36 months of entitlement or the equivalent in part-time educational
assistance if the individual serves 24 months or more of the qualifying
enlistment. If the individual serves at least 20 months of the
qualifying enlistment and is separated for convenience of the
government, the individual will get 36 months of entitlement or the
equivalent in part-time educational assistance. The individual will get
one month of entitlement for each month served on active duty, if he or
she is separated early for one of the following reasons: a medical
condition preexisting service; a reduction in force; hardship; a
physical or mental condition interfering with duty that was not due to
willful misconduct; or, a service-connected disability.

EXAMPLE: A veteran entered active duty on August 20, 1995, and was
discharged for convenience of the government on January 15, 1996, before
completing 20 months of his 2-year obligation. The service department
reduced his military pay by \$100 each month he was on active duty. He
is [not]{.underline} eligible for basic educational assistance because
he served less than 20 months on active duty. If he had served at least
20 months, he would be entitled to 36 months of basic educational
assistance.

\(2\) [Category IB]{.underline}. An individual in category IB will get
36 months of entitlement or the equivalent in part-time educational
assistance if the individual serves 36 months or more of the qualifying
enlistment. If the individual serves at least 30 months of the
qualifying enlistment and is separated for convenience of the
government, the individual will get 36 months of entitlement or the
equivalent in part-time educational assistance. The individual will get
one month of entitlement for each month served on active duty,

if he or she is separated early for one of the following reasons: a
medical condition preexisting service; a reduction in force; hardship; a
physical or mental condition that interfered with duty that was not due
to willful misconduct; or, a service-connected disability.

\(3\) \[Cat[egories IIA and IIC]{.underline}.\] An individual in
category IIA or IIC will get

36 months of entitlement or the equivalent in part-time educational
assistance if the individual served 36 months continuously after June
30, 1985. If the individual served at least 30 months continuously after
June 30, 1985, and was separated for convenience of the government, the
individual will get 36 months of entitlement or the equivalent in
part-time educational assistance. The individual will get one month of
entitlement for each month served on active duty, if he or was separated
early for one of the following reasons: a medical condition preexisting
service; reduction in force; hardship; a physical or mental condition
that interfered with duty that was not due to willful misconduct; or, a
service-connected disability.

EXAMPLE: After completing 9 months and 20 days of service after June 30,
1985, an individual was discharged for a service-connected disability.
She is entitled to 9 months of basic educational assistance provided she
meets all eligibility requirements.

\(4\) \[[Categories III and IV]{.underline}. An individual in category
IIIA, IIIB, IIIC, IVA, IVB, or IVC,\] will receive the lesser of 36
months of entitlement or the number of months of active duty service.
\"Active duty service\" refers to [any]{.underline} period of active
duty service the individual may have. Multiple periods may be combined
to determine entitlement.\]

**b. Combination Active Duty and Reserve Service.** \[An individual in
category IC, IIB, or IID will earn 1 month of entitlement for each month
of active duty service after June 30, 1985, and 1 month for each 4
months of Selected Reserve service.\] Total entitlement may not exceed
36 months. VA will calculate entitlement in whole months; fractions of a
month will be dropped. An individual who establishes eligibility in one
of these categories will initially be credited with 12 months of
entitlement based on the projected 48 months of Selected Reserve
service. \[If an individual fails to complete 48 months in the Selected
Reserve but is discharged for a qualifying separation reason, VA will
recompute entitlement based on the actual Selected Reserve service
completed.\]

**c. Adjustments to Entitlement.** Certain adjustments to the
entitlement computed above are required in a few cases.

\(1\) [Loan Repayment]{.underline}. A period of service counted for the
purpose of repayment of an education loan under section 902 of the
Department of Defense Authorization Act, 1981, may not be counted for
the purpose of determining the number of months of entitlement to
chapter 30 (38 CFR 21.7072(e)). (The education loan referred to is not a
VA education loan under 38 U.S.C. 1798.) Therefore, such a period of
service must be deducted from the entitlement otherwise computed in
subparagraph a or b above. \[Effective November 1, 2000, any obligated
period of service may be qualifying. Therefore, chapter 30 may be
payable in some cases based on an obligated period of service that was
subsequent to the service counted for the purposes of loan repayment.
Here are examples of how to apply this rule.

Example #1: An individual had an initial four-year obligated period of
active duty.

The individual did not decline chapter 30 participation at initial entry
and is eligible for the loan repayment program under 10 U.S.C. chapter
109 for 2 years. The individual completes this obligated period of
service and re-enlists for a period of three years. After completing
this three-year obligated period of service and receiving an honorable
discharge, the individual applies for chapter 30 benefits.

Result: To determine the period of service that is advantageous to this
individual, determine the amount of entitlement for each period of
service.

[1]{.underline}. The first obligated period of service would normally
provide 36 months of entitlement to this individual. However, since the
individual participated in the loan repayment program, 38 CFR 21.7072(e)
requires VA to subtract the number of months of service counted for the
purposes of repayment of an educational loan from the individuals 36
months of entitlement. In this case, 24 months of service are counted
for the purposes of repayment of an educational loan. For this period of
obligated service, the individual is entitled to 12 months (36 -- 24) of
chapter 30 benefits.

[2]{.underline}. The second obligated period of service would provide 36
months of entitlement because the individual completed his or her
obligated period of service.

[3]{.underline}. The most advantageous qualifying period of service for
chapter 30 benefits is the individual's second period that provides for
36 months of entitlement.

Example #2: An individual completes a 6-year service obligation. He
didn\'t decline chapter 30 at initial entry on duty but he used three
years of service for loan repayment purposes.

Result: The individual has zero entitlement because 38 CFR 21.7072(e)
requires VA to subtract the months of entitlement used for loan
repayment (36) from the months of entitlement earned (36) for that
period of service. For this person to qualify, he/she would have to
reenlist.\]

\(2\) [Deductible Time]{.underline}. The following types of time lost
must be deducted from entitlement otherwise computed in subparagraph a
or b above:

\(a\) Excess leave;

\(b\) Noncreditable time; and

\(c\) Not-on-duty time.

**d. Limitations on Entitlement.** Except as provided in subparagraph e
below, an individual may not receive basic educational assistance under
chapter 30 for more than 36 months for full-time training or the
equivalent for part-time training. The total entitlement to educational
benefits for those having entitlement under two or more VA education
programs may not exceed 48 months. See figure 1.15 for a worksheet for
computing original entitlement when there is prior VA training.

**e. Extensions of Entitlement.** VA may extend an individual\'s chapter
30 entitlement \[(but not beyond 48 months except as described in
subparagraph f below)\] in the following situations:

\(1\) [Enrollments in Schools Regularly Operated on a Term, Quarter, or
Semester Basis]{.underline}. If an individual\'s entitlement expires
during a term, quarter, or semester, VA will extend his or her
entitlement to the end of the term, quarter, or semester. \["Term" also
means "summer term" as defined in 38 CFR 21.4200(b)(5). Therefore, it is
correct to extend entitlement to the end of the entire summer term (even
if there are multiple sessions in the summer term.)\]

\(2\) [Enrollments in Schools Not Regularly Operated on a Term, Quarter,
or Semester Basis]{.underline}. If an individual\'s entitlement expires
after he or she has completed one-half of a course, VA will extend his
or her entitlement for 12 weeks (84 calendar days) or to the end of the
course, whichever is less.

+----+----------------------------------------------------------+------+
| ** | **Maximum entitlement under all laws**                   | *    |
| 1. |                                                          | *48. |
| ** |                                                          | 00** |
+----+----------------------------------------------------------+------+
| ** | **Enter any entitlement used under other VA programs**   |      |
| 2. |                                                          |      |
| ** | **(chapters 31, 32, 34, 35, 1606 (formerly chapter       |      |
|    | 106)).**                                                 |      |
+----+----------------------------------------------------------+------+
| ** | **Subtract line 2 from line 1.**                         |      |
| 3. |                                                          |      |
| ** |                                                          |      |
+----+----------------------------------------------------------+------+
| ** | **Enter 36 or the figure from line 3, whichever is the   |      |
| 4. | lesser.**                                                |      |
| ** |                                                          |      |
+----+----------------------------------------------------------+------+
| ** | **Enter chapter 30 entitlement as computed in paragraphs |      |
| 5. | 1.20a, b, and c without regard to prior VA training.**   |      |
| ** |                                                          |      |
+----+----------------------------------------------------------+------+
| ** | **Enter the figure from line 4 or line 5, whichever is   |      |
| 6. | the lesser.**                                            |      |
| ** |                                                          |      |
|    | **(This is the original entitlement .)**                 |      |
+----+----------------------------------------------------------+------+

**Figure 1.15 Entitlement Computation When There is Prior VA Training**

**f. Restoration of Entitlement For Training Interrupted By \[Orders to
Active Duty**.\] See part IV, paragraph 11.30 and Circular 22-02-01,
paragraph 4.

*NOTE: The Persian Gulf War period has not ended yet officially.*

**g. Charges to Chapter 30 Entitlement**

\(1\) [Institutional Training]{.underline}. VA will charge a full day of
entitlement for each day paid at the full-time rate. VA reduces the
entitlement charge proportionately if the individual is enrolled at less
than full-time. An individual enrolled at less than 1/2 time will be
charged entitlement at 1/4 of the full-time rate.

\(2\) [Apprenticeship and Other On-the-job Training]{.underline}. VA
will charge entitlement as follows:

\(a\) During the first 6 months of training, VA charges entitlement at
75% of a month for a full month of training.

\(b\) During the second 6 months of training, VA charges entitlement at
55% of a month for a full month of training.

\(c\) During the remainder of training, VA charges entitlement at 35% of
a month for a full month of training.

\(3\) [Correspondence \[and Flight\] Training]{.underline}. VA will
charge 1 month of entitlement for a benefit amount equal to the rate for
full-time institutional training. This rate includes the additional
allowance for kickers, supplemental benefits, \[additional amounts based
on voluntary contributions up to \$600\], or established dependents
(category II \[(not on active duty)\] cases).

\(4\) [Cooperative Training]{.underline}. Before October 9, 1996, VA
charged entitlement at 80% of the charge for full-time institutional
training. On or after October 9, 1996, VA charges entitlement at 100% of
the charge of the institutional rate for full-time training.

\(5\) [\[Licensing and Certification and Tests]{.underline}. VA will
charge 1 month of entitlement for a benefit amount equal to the rate for
full-time institutional training. This rate includes the additional
allowance for kickers, supplemental benefits or additional amounts based
on voluntary contributions up to \$600, or established dependents
(category II (not on active duty) cases).\]

**(**6) [Tutorial Benefits]{.underline}. See part III, paragraph 10.05.

\[(7) [Tuition Assistance Top-Up]{.underline}. VA will charge 1 month of
entitlement for a benefit amount equal to the rate for full-time
institutional training. This rate includes the additional allowance for
kickers, supplemental benefits or additional amounts based on voluntary
contributions up to \$600, or established dependents (category II (not
on active duty) cases). However, chapter 1606 kickers are excluded from
the calculation.\]

**h. Open Period Entitlement**

An individual eligible based on the open period and released early from
his or her obligated period of service for one of the reasons listed in
figure 1.04 and whose basic pay was reduced by less than \$1,200 will
not have 36 months of entitlement. The individual\'s entitlement will be
the lesser of:

\(a\) 36 multiplied by the fraction obtained by dividing the actual pay
reduction by \$1,200; or

\(b\) The number of months the individual served on continuous active
duty.

**PART VII. RATES**

**1.21 MONTHLY RATES OF BASIC EDUCATIONAL ASSISTANCE**

See appendix A for consolidated rate tables. *NOTE: These rates do not
include kickers \[nor additional amounts based on voluntary
contributions up to \$600.\] (See par 1.22 below regarding kickers and
par. 1.23 below regarding the additional contributions.)*

**a. OJT/Apprenticeship Rates.** For the first 6 months of training, VA
pays 75% of the full-time institutional training rate. During the second
6 months of training, VA pays 55% of the full-time institutional
training rate. During the remainder of training, VA pays 35% of the
full-time institutional training rate. VA can pay only for training
which occurred after October 28, 1986.

**b. Rates for Category IC Cases \[and Open Period Cases.** Category IC
rates cannot be effective earlier than the date the individual makes a
commitment to serve 4 years in the Selected Reserve and is attached to a
unit in the Selected Reserve. Open Period cases receive the category IA
rate if the obligated period is less than 3 years and received the
category IB rate if the obligated period is 3 years or greater.\]

**c. Rates for Category II Cases.** Except as noted in subparagraph (2)
below, an individual in category II receives 1/2 of the chapter 34
monthly rate applicable to his or her training time and number of
dependents in addition to the category IB rate. For apprenticeship and
other on-the-job training as well as cooperative training before October
9, 1996, VA adds 1/2 of the chapter 34 rate that would have been payable
for these types of programs. (See pt. I, ch. 3, for chapter 34 rates.)
For apprenticeship and other on-the-job training, VA multiplies the
resulting rates by .75 for the first 6-month step, .55 for the second
6-month step, and .35 for the remainder of the program. See appendix C,
for category II apprenticeship, other on-the-job training, and the
historical cooperative rates.

\(1\) The additional amount based on the chapter 34 rate is part of the
chapter 30 rate payable and is [not]{.underline} a payment under chapter
34.

\(2\) VA pays the additional amount [only]{.underline} to the extent of
an individual\'s remaining chapter 34 entitlement as of January 1, 1990.
When an individual has received chapter 30 benefits equal to his or her
chapter 34 entitlement remaining on December 31, 1989, VA will pay the
category IB rate. An individual cannot receive more chapter 34
entitlement than chapter 30 entitlement.

EXAMPLE 1: An individual entered active duty before January 1, 1977, and
served continuously until March 31, 1990, when he was honorably
discharged. He applies for chapter 30 in January 1991. He did not use
any of his chapter 34 entitlement while on active duty. His chapter 30
entitlement is 36 months. His chapter 30 rate for all 36 months will
include 1/2 of the chapter 34 rate in effect on December 31, 1989.

EXAMPLE 2: The same facts apply except that the individual used 30 of
his 45 months of chapter 34 entitlement while on active duty. He is
entitled to 18 months (48 - 30) of chapter 30 due to the 48-month limit.
VA will increase his chapter 30 rate by 1/2 of the chapter 34 rate for
the first 15 months of training. VA will pay the category IB rate for
the remaining 3 months plus any extension.

\(3\) If a veteran gains or loses dependents while receiving the
additional amount, VA will adjust benefits to reflect the correct amount
payable based on the new number of dependents using the chapter 34 rates
in effect on December 31, 1989.

**d. Servicepersons and Veterans Training at Less Than One-Half Time --
All Categories.** For a serviceperson at any training time or a veteran
training at less than

1/2 time, the rate payable is the [lesser]{.underline} of the following:

\(1\) A monthly rate which will fully reimburse the tuition and fees of
the course(s); or

\(2\) The institutional rate otherwise payable (excluding the additional
amount for dependents (category II)) for the individual\'s rate of
pursuit. The rate payable includes 1/2 the chapter 34 rate and kickers
\[and additional contributions\], if payable. (See Appendix A for
institutional rates.)

*NOTE: No person under category II can receive chapter 30 for education
or training before January 1, 1990.*

**e. Rate for Correspondence Trainin[g]{.underline}.** VA will reimburse
only 55% of the approved charges for a course.

**f. Rate for Cooperative Training.** VA will pay 100% of the full-time
institutional rate otherwise payable, except that special cooperative
rates were in effect before October 9, 1996. (See Appendixes A through C
for these rates.)

**g. Rate for Flight Training.** VA will reimburse only 60 percent of
the approved charges for a course. VA will reimburse charges for solo
flying hours that occurred after September 30, 1992.

**h. Category III and IV Rates**

\(1\) [Basic]{.underline}. An individual eligible under category III or
category IV is entitled to the same basic full-time monthly rate as an
individual eligible under category IB.

\(2\) [Chapter 32 Kickers]{.underline}. A former chapter 32 participant
is entitled to a kicker under category III, category IVA, \[or IVC\] if
he or she had any remaining kicker upon electing chapter 30.

**1.22 \[KICKERS\]**

**a. \[General.** An individual who has skills critical to the military
may receive an additional amount commonly called a kicker. Kickers are
payable at the service department\'s discretion. They are payable as an
additional amount to an individual\'s basic educational assistance, to
supplemental educational assistance, or to both. The service department
will determine the total kicker payable and will notify VA of the
amount. VA will compute the monthly kicker amount based on a formula
provided by the service department. This computation is described in
paragraph 3.08.

**b. Category I Kickers.** Kickers may not exceed:

\(1\) A maximum of \$950 monthly added to basic educational assistance
(see Appendix E for current and historic kicker tables);

\(2\) A maximum of \$300 monthly added to supplemental educational
assistance (supplemental assistance has never been authorized); and

\(3\) A maximum of \$350 monthly added to basic educational assistance
for a chapter 1606 kicker. This is a kicker based on Selected Reserve
service which is payable as a chapter 30 benefit. See 10 U.S.C
16131(i)(2) for the legal basis for this kicker. This kicker can be paid
in addition to the regular chapter 30 kicker described in
subparagraph a(1) above.

**c. Category III, IVA, and IVC Kickers**. An individual who is entitled
to a kicker under chapter 32 and is eligible under categories III, IVA,
IVC may receive an additional chapter 30 amount. This amount is
calculated by taking the unused chapter 32 kicker contributed by the
service department and dividing by the total months of chapter 30
eligibility. The total amount of the service department kicker
contribution is the only maximum limitation in these cases. See
paragraph 3.08.\]

*\[NOTE: Kickers are tied to specific to obligated periods. If an
individual was granted a kicker for one period but can establish
eligibility based on a different period, the kicker does not apply to
the second period.\]*

**1.23 \[ADDITIONAL CONTRIBUTIONS\]**

See Circular 22-01-01, Appendix B.\]

**1.24 SUPPLEMENTAL EDUCATIONAL ASSISTANCE**

Supplemental educational assistance is a monthly amount paid in addition
to basic educational assistance if the service department provides for
payment of this additional amount [and]{.underline} if the individual
meets the eligibility criteria described below. The service departments
have [not]{.underline} authorized payment of supplemental assistance in
any cases.

**a. Eligibility Based on Active Duty Service Only**

\(1\) Category IA, IB, \[Open Period, IIA and IIC\] individuals must
serve at least

5 more continuous years of active duty without a break in service
following the number of years of active duty required for eligibility
for the basic educational assistance.

\(2\) When an individual completes the additional 5 years of active
duty, he or she must be discharged with an honorable discharge with the
exceptions described in paragraph 1.17e.

**b. Eligibility Based on Combination of Active Duty and Selected
Reserve Service**

\(1\) Category IC, \[Open Period, IIB and IID\] individuals must:

\(a\) Serve at least 2 continuous years of additional active duty
following the active duty service required for the basic educational
assistance; and

\(b\) Serve at least 4 continuous years of Selected Reserve service
following the initial obligated period of Selected Reserve service
required for basic educational assistance. See paragraph 1.18a
concerning continuous Selected Reserve service.

\(2\) When the individual completes all the service discussed above, he
or she must be discharged with an honorable discharge with the
exceptions described in paragraph 1.17e.

**c. Monthly Rates**

\(1\) Basic educational assistance for an individual who meets the
eligibility requirements for supplemental educational assistance will be
increased by the amounts shown in appendix D if the service department
authorizes the assistance. Supplemental educational assistance is
payable [only]{.underline} as an additional amount to basic educational
assistance. It is not payable by itself.

\(2\) The rates payable to a serviceperson or a veteran training at less
than 1/2 time who is eligible for supplemental educational assistance is
limited to the monthly rate of the cost of the course or the monthly
rate otherwise payable, whichever is less, as described in paragraph
1.21d.\]

**SUBCHAPTER VIII. SPECIAL PROVISIONS**

**1.25 \[LUMP-SUM PAYMENTS\]**

\[a. An individual training at less than 1/2 time may receive a lump-sum
payment for all benefits due for an entire term, quarter, or semester.
VA must issue such payment by the end of the month following the month
in which VA receives the enrollment certification from the school.

*NOTE: A serviceperson training at 1/2 time or more will receive monthly
payments the same as a veteran. A serviceperson entitled to monthly
payments must submit monthly verifications of attendance.*

b\. VA will authorize a lump-sum payment only for a confirmed enrollment
certification. By confirmed, VA means the school signed and dated the
certification on or after the first date of the term, quarter, or
semester.

c\. An individual entitled to a lump-sum payment may not receive an
advance payment for the same term, quarter, or semester.

d\. VA does not require an individual entitled to a lump-sum payment to
verify his or her enrollment.

e\. A lump-sum payment is payable only if enrollment is on a term,
quarter, or semester basis.\]

**1.26 \[ACCELERATED PAYMENT\]**

\[See Circular 22-02-01, Appendix A.\]

**1.27 \[TRANSFER OF ENTITLEMENT\]**

\[See Circular 22-02-02.\]

**1.28. \[ TUITION ASSISTANCE TOP-UP\]**

\[See Circular 22-01-01, Appendix D.\]

**1.29 CHAPTER 30 DEATH BENEFIT (38 CFR 21.7280)**

**a. Eligibility.** A death benefit is payable in certain cases where an
individual dies on active duty or within one year of discharge and the
death is service-connected. The death benefit is payable to the
beneficiaries of:

\(1\) A serviceperson who was eligible for chapter 30 at the time of his
or her death or would have been eligible except for the length of
service requirement, the high school completion requirement, or both, or

\(2\) A veteran eligible for chapter 30 who dies after October 28, 1992,
if his or her death occurs within one year of his or her discharge or
release from active duty.

**b. Beneficiaries.** The beneficiary for the chapter 30 death benefit
will be the first person, listed as follows, who is surviving on the
date of death:

\(1\) The designated Servicemen\'s Group Life Insurance beneficiary or
beneficiaries,

\(2\) The surviving spouse of an individual on active duty,

\(3\) The surviving child or children of an individual on active duty,
in equal shares, or

\(4\) The surviving parent or parents of an individual on active duty,
in equal shares.

**c. Time Limit.** There is no time limit for filing a chapter 30 death
claim.

**d. Benefit Amount.** VA will pay an amount equal to the individual\'s
chapter 30 military pay reduction as shown in the military Finance
records. \[(Beneficiaries of all eligibility categories except category
II which doesn\'t have a pay reduction are eligible for this benefit.\]
VA will reduce the death benefit by any chapter 30 benefits previously
paid or any accrued benefits paid or payable. The death benefit is paid
from VA\'s Readjustment Benefits account rather than from the service
department\'s contribution fund.

**SUBCHAPTER IX. MISCELLANEOUS**

**1.30 \[PROHIBITION AGAINST DUPLICATION OF BENEFITS\]**

\[**a. Nonduplication of Education Benefits.** See part IV, paragraph
3.02.

**b. Other Federal Programs.** See part IV, paragraph 3.07.\]

**1.31 \[EDUCATIONAL LEAVE OF ABSENCE\]**

\[a. A service department may grant a leave of absence to an individual
on active duty to pursue education or training (10 U.S.C. 708(a)(1)). To
be eligible for a leave of absence, the individual must be eligible for
basic educational assistance under chapter 30 and

\(1\) An enlisted person must have reenlisted after having completed his
or her first term of enlistment; or

a\. An officer must have completed his or her initial period of
obligated active duty service.

b\. If a service department grants a leave of absence, the individual
must agree to serve 2 months for each month of leave.

c\. While an individual is on a leave of absence, he or she will receive
basic military pay. The time on leave will not count toward entitlement
to supplemental educational assistance.\]

**\[1.32 PRESEPARATION COUNSELING\]**

**a. \[General.** Upon discharge or release from active duty, the
individual\'s branch of service will provide counseling on chapter 30
benefits and the advantages of serving in the Selected Reserve (10
U.S.C. 1046(a)(1)). PL 105-368 revises 38 U.S.C. 3034, to require VA and
the service departments to expand outreach services for persons
potentially eligible to chapter 30.

**b.** **Requirement.** Servicepersons who have their pay reduced by
\$1200 must receive;

\(1\) Information on important aspects of chapter 30 benefits, including
eligibility, limitations, and procedures; and

\(2\) Application forms.

**c. Deadline.** This information must be furnished "as soon as
practicable" after the \$1200 reduction and at additional times as
appropriate.

**d. Effective Date.** This provision is effective May 10, 1999.\]

**1.33 FUNDING AND RESPONSIBILITIES**

**a. Basic Educational Assistance.** Basic educational assistance will
be paid from funds appropriated to VA.

**b. Supplemental Educational Assistance and Kickers.** Supplemental
educational assistance, kickers, and transferred entitlement benefits
will be paid from the Department of Defense\'s Education Benefits Fund.
Funds will be transferred to VA as necessary for payment of benefits.

**c. Responsibilities.** VA determines eligibility for basic educational
assistance, the number of months of entitlement, the period of
eligibility, and the rate of basic educational assistance. The service
departments determine eligibility to kickers and to supplemental
educational assistance.

**1.34 REPORTS**

Both the Department of Defense and VA must submit periodic reports to
Congress on the use of the chapter 30 program.

**1.35 REQUIREMENTS AND COMPARABILITY**

\[Chapter 30 has many features in common with other education programs
described in this manual. See parts III and IV.\]

**August 13, 2003 M22-4, Part V**

**Change 22 Erratum**

### Chapter 30 Kicker Rates Continued

  ------------- ------------- -------------- ------------- ------------- ------------- ------------- -------------
  **Kicker**    **Term of**   **10/1/95**                                **10/1/96**                 

  **Code**      **Service**   **Monthly**                  **Total**     **Monthly**                 **Total**

  A             24 months     \$222.22                     \$8,000.00    \$222.22                    \$8,000.00

  B             36 months     \$333.33                     \$12,000.00   \$333.33                    \$12,000.00

  C             48 months     \$400.00                     \$14,400.00   \$400.00                    \$14,400.00

  D             24 months     N/A                          N/A           N/A                         N/A

  E             36 months     N/A                          N/A           N/A                         N/A

  F             48 months     N/A                          N/A           N/A                         N/A

  J             48 months     \$400.00                     \$14,400.00   \$400.00                    \$14,400.00

  K             24 months     \$333.33                     \$12,000.00   \$333.33                    \$12,000.00

  L             24 months     \$222.22                     \$8,000.00    \$222.22                    \$8,000.00

  M             24 months     \$333.33                     \$12,000.00   \$333.33                    \$12,000.00

  N             36 months     \$333.33                     \$12,000.00   \$333.33                    \$12,000.00

  P             48 months     \$400.00                     \$14,400.00   \$400.00                    \$14,400.00

  Q             None          \$0.00                       \$0.00        \$0.00                      \$0.00

  R\*           24 months     \$222.22                     \$8,000.00    \$222.22                    \$8,000.00

  S\*           24 months     \$217.04                     \$7,813.64    \$207.91                    \$7,484.60

  T             24 months     \$217.04                     \$7,813.64    \$207.91                    \$7,484.60

  V             36 months     \$277.82                     \$10,001.68   \$266.57                    \$9,596.68

  W             48 months     \$416.71                     \$15,001.68   \$405.46                    \$14,596.68

  **Kicker**    **Term of**   **03/07/97**                               **10/1/97**                 

  **Code**      **Service**   **Monthly**    **Total**                   **Monthly**   **Total**     

  A             24 months     \$222.22       \$8,000.00                  \$222.22      \$8,000.00    

  B             36 months     \$333.33       \$12,000.00                 \$333.33      \$12,000.00   

  C             24 months     \$388.46       \$13,984.60                 \$378.74      \$13,634.48   

  D             24 months     \$388.46       \$13,984.60                 \$378.74      \$13,634.48   

  E             36 months     \$488.80       \$17,596.68                 \$476.81      \$17,165.28   

  F             48 months     \$683.24       \$24,596.68                 \$671.26      \$24,165.28   

  J             48 months     \$400.00       \$14,400.00                 \$400.00      \$14,400.00   

  K             24 months     \$333.33       \$12,000.00                 \$333.33      \$12,000.00   

  L             24 months     \$222.22       \$8,000.00                  \$222.22      \$8,000.00    

  M             24 months     \$333.33       \$12,000.00                 \$333.33      \$12,000.00   

  N             36 months     \$333.33       \$12,000.00                 \$333.33      \$12,000.00   

  P             48 months     \$400.00       \$14,400.00                 \$400.00      \$14,400.00   

  Q             None          \$0.00         \$0.00                      \$0.00        \$0.00        

  R\*           24 months     \[\$222.22\]   \$8,000.00                  \$222.22      \$8,000.00    

  S\*           24 months     \[\$207.91\]   \$7,484.60                  \$198.18      \$7,134.48    

  T             24 months     \[\$207.91\]   \$7,484.60                  \$198.18      \$7,134.48    

  V             36 months     \[\$266.57\]   \$9,596.68                  \$254.59      \$9,165.24    

  W             48 months     \[\$405.46\]   \$14,596.68                 \$393.48      \$14,165.28   

  \* Codes R                                                                                         
  and S require                                                                                      
  Selected                                                                                           
  Reserve                                                                                            
  service for                                                                                        
  payment to be                                                                                      
  made. (Code R                                                                                      
  is for                                                                                             
  enlistments                                                                                        
  between                                                                                            
  7-1-89 and                                                                                         
  3-31-94.)                                                                                          
  Codes C, D,                                                                                        
  E. and F                                                                                           
  begin 3-6-97.                                                                                      
  ------------- ------------- -------------- ------------- ------------- ------------- ------------- -------------

**1-E-3**

### M22-4, Part V August 13, 2003

**Change 22 Erratum**

**Chapter 30 Kicker Rates Continued**

+-----------+-----------+-----------+-----------+-----------+-----------+
| *         | **Term    | **        |           | **1       |           |
| *Kicker** | of**      | 10/1/98** |           | 1/12/98** |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| **Code**  | **        | **        | **Total** | **        | **Total** |
|           | Service** | Monthly** |           | Monthly** |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| A         | 24 months | \$222.22  | \         | \$222.22  | \         |
|           |           |           | $8,000.00 |           | $8,000.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| B         | 36 months | \$333.33  | \$        | \$333.33  | \$        |
|           |           |           | 12,000.00 |           | 12,000.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| C         | 24 months | \$307.12  | \$        | \$307.12  | \$        |
|           |           |           | 11,056.16 |           | 11,056.16 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| D         | 24 months | \$307.12  | \$        | \$307.12  | \$        |
|           |           |           | 11,056.16 |           | 11,056.16 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| E         | 36 months | \$388.66  | \$        | \$388.66  | \$        |
|           |           |           | 13,991.88 |           | 13,991.88 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| F         | 48 months | \$583.11  | \$        | \$583.11  | \$        |
|           |           |           | 20,991.88 |           | 20,991.88 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| G \*\*    | 48 months | N/A       | N/A       | \$860.89  | \$        |
|           |           |           |           |           | 30,992.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| J         | 48 months | \$400.00  | \$        | \$400.00  | \$        |
|           |           |           | 14,400.00 |           | 14,400.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| K         | 24 months | \$333.33  | \$        | \$333.33  | \$        |
|           |           |           | 12,000.00 |           | 12,000.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| L         | 24 months | \$222.22  | \         | \$222.22  | \         |
|           |           |           | $8,000.00 |           | $8,000.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| M         | 24 months | \$333.33  | \$        | \$333.33  | \$        |
|           |           |           | 12,000.00 |           | 12,000.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| N         | 36 months | \$333.33  | \$        | \$333.33  | \$        |
|           |           |           | 12,000.00 |           | 12,000.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| P         | 48 months | \$400.00  | \$        | \$400.00  | \$        |
|           |           |           | 14,400.00 |           | 14,400.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Q         | None      | \$0.00    | \$0.00    | \$0.00    | \$0.00    |
+-----------+-----------+-----------+-----------+-----------+-----------+
| R\*       | 24 months | \$222.22  | \         | \$222.22  | \         |
|           |           |           | $8,000.00 |           | $8,000.00 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| S\*       | 24 months | \$126.56  | \$4556.16 | \$126.56  | \$4556.16 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| T         | 24 months | \$126.56  | \$4556.16 | \$126.56  | \$4556.16 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| V         | 36 months | \$166.44  | \$5991.84 | \$166.44  | \$5991.84 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| W         | 48 months | \$305.33  | \$        | \$305.33  | \$        |
|           |           |           | 10,991.88 |           | 10,991.88 |
+-----------+-----------+-----------+-----------+-----------+-----------+
| \* Codes  |           |           |           |           |           |
| R and S   |           |           |           |           |           |
| require   |           |           |           |           |           |
| Selected  |           |           |           |           |           |
| Reserve   |           |           |           |           |           |
| service   |           |           |           |           |           |
| for       |           |           |           |           |           |
| payment   |           |           |           |           |           |
| to be     |           |           |           |           |           |
| made.     |           |           |           |           |           |
|           |           |           |           |           |           |
| (Code R   |           |           |           |           |           |
| is for    |           |           |           |           |           |
| en        |           |           |           |           |           |
| listments |           |           |           |           |           |
| between   |           |           |           |           |           |
| 7-1-89    |           |           |           |           |           |
| and       |           |           |           |           |           |
| 3-31-94.) |           |           |           |           |           |
|           |           |           |           |           |           |
| \*\* Code |           |           |           |           |           |
| G begins  |           |           |           |           |           |
| 11-12-98. |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

**1-E-4**

###