Custom Federal Regulations Service™

**This is supplemental material**

**for Book G of your set of**

**Federal Regulations**

Title 38, Part 21

*Vocational Rehabilitation and Education*

**Veterans Benefits Administration**

Supplement No. 66

Covering period of *Federal Register* issues

through October 25, 2004

Copyright © 2004 Jonathan Publishing

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> **GENERAL INSTRUCTIONS**

Custom Federal Regulations Service™

**Supplemental Materials for *Book G***

**Code of Federal Regulations**

**Title 38, Part 21**

***Vocational Rehabilitation and Education***

**Veterans Benefits Administration**

**Supplement No. 66**

25 October 2004

Covering the period of Federal Register issues

through October 25, 2004

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

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

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

# FILING INSTRUCTIONS

**Book G, Supplement No. 66**

**October 25, 2004**

*Remove these Add these Section(s)*

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

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

21.3045-4 to 21.3046-4 21.3045-4 to 21.3046-4 §§21.3045 & 21.3046

21.3131-1 to 21.3131-4 21.3131-1 to 21.3131-4 §21.3131

21.3300-1 to 21.3300-2 21.3300-1 to 21.3300-2 §21.3300

21.3331-1 to 21.3333-3 21.3331-1 to 21.3333-3 §21.3333

21.5816-1 to 21.5824-1 21.5816-1 to 21.5824-1 §§21.5820 & 21.5822

21.7635-6 to 21.7639-1 21.7635-6 to 21.7639-1 §21.7636

**Be sure to complete the**

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

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

> **HIGHLIGHTS**

**Book G, Supplement No. 66**

**October 25, 2004**

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

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

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

1\. On 25 October 2004, the VA published a final rule, effective that
same date, to increase the rates of basic educational assistance payable
under the Montgomery GI Bill--Selected Reserve for Fiscal Year 2004
(October 1, 2003, through September 30, 2004) by 2.2%. Changes:

• In §21.7636, revised paragraphs (a)(1) and (a)(2)(i) and the tables at
the end of each of those two paragraphs, and paragraph (a)(3).

2\. On 25 October 2004, the VA published a final rule, effective that
same date, to amend regulations governing rates of educational
assistance payable under the Survivors' and Dependents' Educational
Assistance program to reflect increases required by statutory
provisions: (a) 1.5% increase for fiscal year 2003 (October 1, 2002,
through September 30, 2003); (b) 2.2% increase for fiscal year 2004
(beginning October 1, 2003); and (c) an increase in the rates payable
effective July 1, 2004. Changes:

• In §21.3045, revised paragraph (h);

• In §21.3046, revised paragraph (d)(4)(ii);

> • In §21.3131, revised paragraphs (a) and (b); redesignated paragraphs
> (c)--(e) as (d)-(f); and added a new paragraph (c);
>
> • In §21.3300, revised paragraph (c); and
>
> • In §21.3333, revised paragraphs (a)(1)--(2); added a new paragraph
> (a)(3); and revised paragraph (b)(1).

3\. On 25 October 2004, the VA published a final rule, effective that
same date, to increase the rates of subsistence allowance and
educational assistance under the Educational Assistance Test Program by
9.6 percent over the rates payable for the 2002-03 academic year.
Changes:

• In §21.5820, revised paragraphs (b)(1)--(3); and

• In §21.5822, revised paragraphs (b)(1)--(2).

those months for which a reduction was made. VA will make no charge
against entitlement for the period of combined reductions. (Authority:
38 U.S.C. 3534, 3687)

\(h\) *Entitlement charge for correspondence courses*. The charge
against entitlement of a spouse or surviving spouse for pursuit of a
course exclusively by correspondence will be 1 month for each of the
following amounts paid as an educational assistance allowance:

> \(1\) \$680.00 paid after September 30, 2002, and before October 1,
> 2003;
>
> \(2\) \$695.00 paid after September 30, 2003, and before July 1, 2004;
> and
>
> \(3\) \$788.00 paid after June 30, 2004.

\(i\) *Overpayment cases.* VA will make a charge against entitlement for
an overpayment only if the overpayment is discharged in bankruptcy, is
waived and is not recovered, or is compromised.

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

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

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

\(i\) Subtracting from the sum paid in the compromise offer the amount
attributable to interest, administrative costs of collection, court
costs and marshal fees,

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

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

\(iv\) Multiplying the percentage obtained in paragraph (h)(3)(iii) of
this section by the amount of the entitlement otherwise chargeable for
the period of the original overpayment. (Authority: 38 U.S.C. 3471,
3532)

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

\(1\) Enrollment is actually terminated;

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

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

\(4\) The eligible person requests interruption or cancellation for any
break when a school was closed during a certified period of enrollment,
and VA continued payments under an established policy based upon an
Executive Order of the President or an emergency situation. Whether the
eligible person negotiated a check for educational benefits for the
certified period is immaterial. (Authority: 38 U.S.C. 3511)

\(k\) *Education loan after otherwise applicable delimiting
date---spouse or surviving spouse.* VA will make a charge against the
entitlement of a spouse or surviving spouse who receives an education
loan pursuant to §21.4501(c) at the rate of 1 day for each day of
entitlement that would have been used had the spouse or surviving spouse
been in receipt of educational assistance allowance for the period for
which the loan was granted. (Authority: 38 U.S.C. 3512)

\[49 FR 48692, Dec. 14, 1984, as amended at 55 FR 28024, July 9, 1990;
57 FR 29799, July 7, 1992; 58 FR 26240, May 3, 1993; 61 FR 26109, May
24, 1996; 62 FR 55760, Oct. 28, 1997; 63 FR 67778, Dec. 9, 1998; 66 FR
32227, June 14, 2001; 68 FR 34320, June 9, 2003; 69 FR 62207, Oct. 25,
2004\]

**Supplement *Highlights* references**: 6(3), 27(1), 41(1), 55(2),
62(1), 66(2).

**§21.3046 Periods of eligibility; spouses and surviving spouses.**

This section states how VA will compute the beginning date, the ending
date and the length of a spouse's or surviving spouse's period of
eligibility. The period of eligibility of a spouse computed under the
provisions of paragraph (a) of this section will be recomputed under the
provisions of paragraph (b) of this section if her or his status changes
to that of surviving spouse. (Authority: 38 U.S.C. 3512(b))

\(a\) *Beginning date of eligibility period---spouses.*

\(1\) If the permanent total rating is effective before December 1,
1968, the beginning date of the 10-year period of eligibility is
December 1, 1968.

\(2\) The beginning date of eligibility:

\(i\) Shall be determined as provided in paragraph (a)(2) of this
section when:

\(A\) The permanent total rating is effective after November 30, 1968,
or the notification to the veteran of the rating was after that date,
and

\(B\) Eligibility does not arise under §21.3021(a)(3)(ii) of this part.

\(ii\) For spouses for whom VA made a final determination of eligibility
before October 28, 1986, shall be:

\(A\) The effective date of the rating, or

\(B\) The date of notification, whichever is more advantageous to the
spouse.

\(iii\) For spouses for whom VA made a final determination of
eligibility after October 27 1986, shall be:

\(A\) The effective date of the rating, or

\(B\) The date of notification, or

\(C\) Any date between the dates specified in paragraphs (a)(2)(iii)(A)
and (B) of this section as chosen by the eligible spouse.

\(iv\) May not be changed once a spouse has chosen it as provided in
paragraph (a)(2)(iii) of this section.

\(3\) If eligibility arises under §21.3021(a)(3)(ii) of this part, the
beginning date of the 10-year eligibility period is:

\(i\) December 24, 1970, or

\(ii\) The date the member of the Armed Forces on whose service
eligibility is based was so listed by the Secretary concerned, whichever
last occurs. (Authority: 38 U.S.C. 3501(a); Pub. L. 99-576)

\(b\) *Beginning date of* *eligibility period-surviving spouses.*

\(1\) If VA determines before December 1, 1968, that the veteran died of
a service-connected disability, the beginning date of the 10-year period
is December 1, 1968. (Authority: 38 U.S.C. 3512)

\(2\) If the veteran's death occurred before December 1, 1968, but VA
does not determine that the veteran died of a service-connected
disability until after November 30, 1968, the beginning date of the
10-year period is the date on which VA determines that the veteran died
of a service-connected disability.

\(3\) If the veteran's death occurred before December 1, 1968, while a
total, service-connected disability evaluated as permanent in nature was
in existence, the beginning date of the 10-year period is December 1,
1968.

\(4\) If the veteran's death occurred after November 30, 1968, and VA
makes a final decision concerning the surviving spouse's eligibility for
dependents' educational assistance before October 28, 1986, the
beginning date of the 10-year period is:

\(i\) The date of death of the veteran who dies while a total,
service-connected disability evaluated as permanent in nature was in
existence, or

\(ii\) The date on which VA determines that the veteran died of a
service-connected disability.

\(5\) If the veteran's death occurred after November 30, 1968, and VA
makes a final decision concerning the surviving spouse's eligibility for
dependents educational assistance after October 27, 1986, VA will
determine the beginning date of the 10-year period as follows:

\(i\) If the surviving spouse's eligibility is based on the veteran's
death while a total, service-connected disability evaluated as permanent
in nature was in existence, the beginning date of the 10-year period is
the date of death.

\(ii\) If the surviving spouse's eligibility is based on the veteran's
death from a service-connected disability, the surviving spouse will
choose the beginning date of the 10-year period. That date will be no
earlier than the date of death and no later than the date of the VA
determination that the veteran's death was due to a service-connected
disability. (Authority: 38 U.S.C. 3512(b); Pub. L. 99-576)

\(6\) Once a surviving spouse has chosen a beginning date of eligibility
as provided in paragraph (b)(5) of this section, the surviving spouse
may not revoke that choice. (Authority: 38 U.S.C. 3512(b); Pub. L.
99-576)

\(c\) *Ending date* of *eligibility period.*

\(1\) The period of eligibility cannot exceed 10 years and can be
extended only as provided in paragraph (d) of this section and §21.3047.

\(2\) If eligibility arises before October 24, 1972, educational
assistance based on a course of apprentice or other on-job training or
correspondence approved under the provisions of §§21.4256, 21.4261, and
21.4262 of this part will not be afforded later than October 23, 1982,
unless the eligible spouse or surviving spouse qualifies for the
extended period of eligibility provided in paragraph (d) of this
section. (Authority: 38 U.S.C. 3512)

\(d\) *Extension to ending date.*

\(1\) The ending date of a spouse's period of eligibility may be
extended when the spouse is enrolled and eligibility ceases for one of
the following reasons:

\(i\) The veteran is no longer rated permanently and totally disabled;

\(ii\) The spouse is divorced from the veteran without fault on the
spouse's part; or

\(iii\) The spouse no longer is listed in any of the categories of
§21.3021(a)(3)(ii) of this part.

\(2\) If the spouse is enrolled in a school operating on a quarter or
semester system, VA will extend the period of eligibility to the end of
the quarter or semester, regardless of whether the spouse has reached
the midpoint of the quarter, semester or term.

\(3\) If the spouse is enrolled in a school not operating on a quarter
or semester system, VA will extend the period of eligibility to the
earlier of the following:

\(i\) The end of the course, or

\(ii\) 12 weeks.

\(4\) If the spouse is enrolled in a course pursued exclusively by
correspondence, VA will extend the period of eligibility to whichever of
the following will result in the lesser expenditure:

\(i\) The end of the course, or

\(ii\) The total additional amount of instruction that:

> \(A\) \$1,904 will provide during the period October 1, 2002, through
> September 30, 2003;
>
> \(B\) \$1,946 will provide during the period October 1, 2003, through
> June 30, 2004; or
>
> \(C\) \$2,206 will provide after June 30, 2004.

\(5\) VA will not extend the period of eligibility when the spouse is
pursuing training in a training establishment as defined in §21.4200(c)
of this part.

\(6\) An extension may not:

\(i\) Exceed maximum entitlement, or

> \(ii\) Extend beyond the delimiting date specified in paragraph (a) of
> this section or §21.3047, as appropriate. (Authority: 38 U.S.C.
> 3511(b), 3512(b), 3532, 3686)

\[54 FR 33886, Aug. 17, 1989; 57 FR 29799, July 7, 1992; 57 FR 60735,
Dec. 22, 1992; 62 FR 51784, Oct. 3, 1997; 62 FR 59579, Nov. 4, 1997; 69
FR 62207, Oct. 25, 2004\]

**Supplement *Highlights* references**: 34(2), 35(4), 66(2).

**§21.3131 Rates---educational assistance allowance---38 U.S.C. chapter
35.**

\(a\) *Rates*. Except as provided in §21.3132, educational assistance
allowance is payable at the following rates for pursuit of education or
training that occurs after September 30, 2002, and before October 1,
2003:

*Type of course Monthly rate*

> Institutional:
>
> Full time \$ 680.00
>
> 3/4 time 511.00
>
> 1/2 time 340.00
>
> Less than 1/2 but more than 1/4 time1 340.00
>
> 1/4 time or less1 170.00
>
> Cooperative training (other than farm cooperative)
>
> (Full time only) 680.00
>
> Apprentice or on-the-job (full time only)2:
>
> First six months 495.00
>
> Second six months 370.00
>
> Third six months 246.00
>
> Fourth six months and thereafter 124.00
>
> Farm cooperative:
>
> Full time 549.00
>
> 3/4 time 412.00
>
> 1/2 time 275.00
>
> Correspondence 55 percent of the established charge for the number of
>
> lessons completed by the eligible spouse or surviving spouse and
> serviced by the school---Allowance paid quarterly.3

1If an eligible person under 38 U.S.C. chapter 35 pursuing independent
study on a less than one-half-time basis completes his or her program
before the designated completion time, his or her award will be
recomputed to permit payment of tuition and fees not to exceed \$340.00
or \$170.00, as appropriate, per month, if the maximum allowance is not
initially authorized.

2See footnote 5 of §21.4270(c) for measurement of full time and
§21.3132(c) for proportionate reduction in award for completion of less
than 120 hours per month.

3Established charge means the charge for the course or courses
determined on the basis of the lowest extended time payment plan offered
by the institution and approved by the appropriate State approving
agency or the actual cost to the eligible spouse or surviving spouse,
whichever is less. VA considers the continuity of an enrollment broken
when there are more than 6 months between the servicing of the lessons.

\(b\) *Rates*. Except as provided in §21.3132, educational assistance
allowance is payable at the following rates for pursuit of education or
training that occurs after September 30, 2003, and before July 1, 2004:

*Type of course Monthly rate*

> Institutional:
>
> Full time \$ 695.00
>
> 3/4 time 522.00
>
> 1/2 time 347.00
>
> Less than 1/2 but more than 1/4 time1 347.00
>
> 1/4 time or less1 173.75
>
> Cooperative training (other than farm cooperative)
>
> (Full time only) 695.00
>
> Apprentice or on-the-job (full time only)2:
>
> First six months 506.00
>
> Second six months 378.00
>
> Third six months 251.00
>
> Fourth six months and thereafter 127.00
>
> Farm cooperative:
>
> Full time 561.00
>
> 3/4 time 421.00
>
> 1/2 time 281.00
>
> Correspondence 55 percent of the established charge for the number of
>
> lessons completed by the eligible spouse or surviving spouse and
> serviced by the school---Allowance paid quarterly.3

1If an eligible person under 38 U.S.C. chapter 35 pursuing independent
study on a less than one-half-time basis completes his or her program
before the designated completion time, his or her award will be
recomputed to permit payment of tuition and fees not to exceed \$347.00
or \$173.75, as appropriate, per month, if the maximum allowance is not
initially authorized.

2See footnote 5 of §21.4270(c) for measurement of full time and
§21.3132(c) for proportionate reduction in award for completion of less
than 120 hours per month.

3Established charge means the charge for the course or courses
determined on the basis of the lowest extended time payment plan offered
by the institution and approved by the appropriate State approving
agency or the actual cost to the eligible spouse or surviving spouse,
whichever is less. VA considers the continuity of an enrollment broken
when there are more than 6 months between the servicing of the lessons.

\(c\) *Rates*. Except as provided in §21.3132, educational assistance
allowance is payable at the following rates for pursuit of education or
training that occurs after June 30, 2004:

*Type of course Monthly rate*

> Institutional:
>
> Full time \$ 788.00
>
> 3/4 time 592.00
>
> 1/2 time 394.00
>
> Less than 1/2 but more than 1/4 time1 394.00
>
> 1/4 time or less1 197.00
>
> Cooperative training (other than farm cooperative)
>
> (Full time only) 788.00
>
> Apprentice or on-the-job (full time only)2:
>
> First six months 574.00
>
> Second six months 429.00
>
> Third six months 285.00
>
> Fourth six months and thereafter 144.00
>
> Farm cooperative:
>
> Full time 636.00
>
> 3/4 time 477.00
>
> 1/2 time 319.00
>
> Correspondence 55 percent of the established charge for the number of
>
> lessons completed by the eligible spouse or surviving spouse and
> serviced by the school---Allowance paid quarterly.3

1If an eligible person under 38 U.S.C. chapter 35 pursuing independent
study on a less than one half-time basis completes his or her program
before the designated completion time, his or her award will be
recomputed to permit payment of tuition and fees not to exceed \$394.00
or \$197.00, as appropriate, per month, if the maximum allowance is not
initially authorized.

2See footnote 5 of §21.4270(c) for measurement of full time and
§21.3132(c) for proportionate reduction in award for completion of less
than 120 hours per month.

3Established charge means the charge for the course or courses
determined on the basis of the lowest extended time payment plan offered
by the institution and approved by the appropriate State approving
agency or the actual cost to the eligible spouse or surviving spouse,
whichever is less. VA considers the continuity of an enrollment broken
when there are more than 6 months between the servicing of the lessons.
(Authority: 38 U.S.C. 3532(a), 3542(a), 3687(b)(2), (d))

\(d\) *Less than half time*. The monthly rate for an eligible person who
is pursuing an institutional course on less than one-half time basis may
not exceed the monthly rate of the cost of the course computed on basis
of the total cost for tuition and fees which the school requires
similarly circumstanced individuals enrolled in the same course to pay.
"Cost of the course" does not include the cost of books or supplies
which the student is required to purchase at his or her own expense.
(Authority: 38 U.S.C. 3532(a)(2))

\(e\) *Courses leading to a secondary school diploma or equivalency
certificate*. The monthly rate of Survivors' and Dependents' Educational
Assistance payable for an eligible person enrolled in a course leading
to a secondary school diploma or equivalency certificate shall be the
rate for institutional training stated in paragraph (a) of this section.
(Authority: 38 U.S.C. 3532(d), 3533)

\(f\) *Payments made to eligible persons in the Republic of the
Philippines or to certain Filipinos*. When the eligible person is
pursuing training at an institution located in the Republic of the
Philippines or when an eligible child's entitlement is based on the
service of a veteran in the Philippine Commonwealth Army, or as a
Philippine Scout as defined in §3.8 (b), (c), or (d) of this chapter,
payments of educational assistance allowance made after December 31,
1994, will be made at the rate of 50 cents for each dollar authorized.
(Authority: 38 U.S.C. 3532(d), 3565)

\[61 FR 26109, May 24, 1996, as amended at 63 FR 67778, Dec. 9, 1998; 66
FR 32227, June 14, 2001; 68 FR 34321, June 9, 2003; 68 FR 37206, June
23, 2003; 69 FR 62207, Oct. 25, 2004\]

**Supplement *Highlights* references**: 27(1), 41(1), 55(2), 62(1),
66(2).

**Special Restorative Training**

**21.3300 Special restorative training.**

\(a\) *Purpose of special restorative training.* The Department of
Veterans Affairs may prescribe special restorative training where needed
to overcome or lessen the effects of a physical or mental disability for
the purpose of enabling an eligible child to pursue a program of
education, special vocational program or other appropriate goal. Medical
care and treatment or psychiatric treatment are not included.

\(b\) *Special restorative training courses.* The counseling
psychologist, after consulting with the Vocational Rehabilitation Panel,
may prescribe for special restorative training purposes courses such as:

> \(1\) Speech and voice correction or retention,
>
> \(2\) Language retraining,
>
> \(3\) Speech (lip) reading,
>
> \(4\) Auditory training,
>
> \(5\) Braille reading and writing,
>
> \(6\) Training in ambulation,
>
> \(7\) One-hand typewriting,
>
> \(8\) Nondominant handwriting,
>
> \(9\) Personal, social and work adjustment training,
>
> \(10\) Remedial reading, and
>
> \(11\) Courses at special schools for mentally and physically disabled
> or
>
> \(12\) Courses provided at facilities which are adapted or modified to
> meet special needs of disabled students. (Authority: 38 U.S.C. 3540)

\(c\) *Duration of special restorative training*. VA may provide special
restorative training in excess of 45 months where an additional period
of time is needed to complete the training. Entitlement, including any
authorized in excess of 45 months, may be expended through an
accelerated program requiring a rate of payment for tuition and fees in
excess of:

> \(1\) \$213.00 a month for the period beginning October 1, 2002, and
> ending September 30, 2003;
>
> \(2\) \$218.00 a month for the period beginning October 1, 2003, and
> ending June 30, 2004; and
>
> \(3\) \$247.00 a month for months after June 30, 2004.

\(d\) *Special restorative training precluded in Department of Veterans
Affairs facilities.* Special restorative training will not be provided
in Department of Veterans Affairs facilities. (Authority: 38 U.S.C.
3543(b))

\[48 FR 37973, Aug. 22, 1983, as amended at 49 FR 42725, Oct. 24, 1984;
50 FR 19934, May 13, 1985; 63 FR 67779, Dec. 9, 1998; 66 FR 32228, June
14, 2001; 68 FR 34322, June 9, 2003; 69 FR 62208, Oct. 25, 2004\]

**Supplement *Highlights* references**: 41(1), 55(2), 62(1), 66(2).

**§21.3331 Commencing date.**

The commencing date of an authorization of a special training allowance
will be the date of entrance or reentrance into the prescribed course of
special restorative training, or the date the counseling psychologist
approved the course for the eligible child whichever is later. See also
§21.3130(c). (Authority: 38 U.S.C. 3542)

\[49 FR 42726, Oct. 24, 1984, as amended at 61 FR 26112, May 24, 1996\]

**Supplement *Highlights* reference:** 27(1)

**§21.3332 Discontinuance dates.**

VA will discontinue special training allowance as provided in this
section on the earliest date of the following:

\(a\) The ending date of the course.

\(b\) The ending date of the period of enrollment as certified by the
vocational rehabilitation specialist.

\(c\) The ending date of the period of eligibility.

\(d\) The expiration of the eligible child's entitlement.

\(e\) Date of interruption of course as determined by the vocational
rehabilitation specialist under §21.3305.

\(f\) Date of discontinuance under the applicable provisions of
§21.3130(d). (Authority: 38 U.S.C. 3543(b))

\[50 FR 21606, May 28, 1985, as amended at 61 FR 26112, May 24, 1996\]

**Supplement *Highlights* reference:** 27(1)

**§21.3333 Rates.**

\(a\) *Rates*. Special training allowance is payable at the following
monthly rates, except as provided in paragraph (c) of this section.

\(1\) For special restorative training that occurs after September 30,
2002, and before October 1, 2003.

*[Course]{.underline} [Monthly rate]{.underline} [Accelerated
charges]{.underline}*

Special \$680.00 If costs for tuition and fees average in

restorative excess of \$213.00 per month, rate may be training increased
by such amount in excess of \$213.00. (38 U.S.C. 3542).

\(2\) For special restorative training that occurs after September 30,
2003, and before July 1, 2004:

*[Course]{.underline} [Monthly rate]{.underline} [Accelerated
charges]{.underline}*

Special \$695.00 If costs for tuition and fees average in

restorative excess of \$218.00 per month, rate may be training increased
by such amount in excess of \$218.00. (38 U.S.C. 3542).

\(3\) For special restorative training that occurs after June 30, 2004:

*[Course]{.underline} [Monthly rate]{.underline} [Accelerated
charges]{.underline}*

Special \$788.00 If costs for tuition and fees average in

restorative excess of \$247.00 per month, rate may be

training increased by training such amount in excess

> of \$247.00. (Authority: 38 U.S.C. 3542).

\(b\) *Accelerated charges.*

\(1\) VA may pay the additional monthly rate if the parent or guardian
concurs in having the eligible child's period of entitlement reduced by
1 day for each:

\(i\) \$22.67 that the special training allowance exceeds the basic
monthly rate of \$680.00 for the period October 1, 2002, through
September 30, 2003;

\(ii\) \$23.17 that the special training allowance exceeds the basic
monthly rate of \$695.00 for the period October 1, 2003, through June
30, 2004; and

\(iii\) \$26.27 that the special training allowance exceeds the basic
monthly rate of \$788.00 for months after June 30, 2004.

\(2\) VA will:

\(i\) Charge fractions of more than one-half day as 1 day;

\(ii\) Disregard fractions of one-half or less; and

\(iii\) Record charges when the eligible child is entered into training.
(Authority: 38 U.S.C. 3542)

\(c\) *Payments made to eligible persons in the Republic of the
Philippines or to certain Filipinos*. When the eligible person is
pursuing training at an institution located in the Republic of the
Philippines or when an eligible child's entitlement is based on the
service of a veteran in the Philippine Commonwealth Army, or as a
Philippine Scout as defined in §3.8(b), (c), or (d) of this chapter,
payments of special training allowance made after December 31, 1994,
will be made at the rate of 50 cents for each dollar authorized.
(Authority: 38 U.S.C. 3532(d), 3542, 3565)

\[35 FR 9814, June 16, 1970, as amended at 48 FR 37975, Aug. 22, 1983,
50 FR 19934 May 13, 1985; 57 FR 29799, July 7, 1992; 61 FR 29295, June
10, 1996; 63 FR 67779, Dec. 9, 1998; 66 FR 32228, June 14, 2001; 68 FR
34322, June 9, 2003; 68 FR 37206, June 23, 2003; 69 FR 62209, Oct. 25,
2004\]

**Supplement *Highlights* references**: 27(3), 41(1), 55(2), 62(1),
66(2).

*Next Section is §21.3344*

Reserved

**§21.5816 False or fraudulent claims.**

Each individual, or school officer or official shall be subject to civil
penalties or criminal penalties, or both, under applicable Federal law
for submitting a false or fraudulent report, revision to a report, or
verification of accuracy of a report used to support an individual's
claim, even though the report or verification is provided gratuitously
or voluntarily to VA. (Authority: 31 U.S.C. 3729-3731, 18 U.S.C. 1001)

*Next Section is §21.5820*

**Payments---Educational Assistance and Subsistence Allowance**

**§21.5820 Educational assistance.**

\(a\) *Educational assistance.* Educational assistance will be paid to
cover the educational expenses incurred by an eligible servicemember,
veteran, spouse, surviving spouse or dependent child while attending an
accredited institution. Educational assistance payments will be made to
the eligible individual.

\(1\) The educational expenses are limited to:

\(i\) Tuition,

\(ii\) Fees,

\(iii\) Cost of books,

\(iv\) Laboratory fees, and

\(v\) Shop fees for consumable materials used as part of classroom or
laboratory instruction.

\(2\) Educational expenses may not exceed those normally incurred by
students at the same educational institution who are not eligible for
benefits from the educational assistance test program. (Authority: 10
U.S.C. 2143(a))

\(b\) *Amount of educational assistance*.

\(1\) The amount of educational assistance will be adjusted annually by
regulation. For the 2003-04 standard academic year the amount of this
assistance may not exceed \$4,219.

\(2\) The amount of educational assistance payable to a servicemember,
veteran, spouse or dependent child of a living servicemember or veteran
for an enrollment period will be the lesser of the following:

\(i\) The total charges for educational expenses the eligible individual
incurs during the enrollment period, or

\(ii\) For the 2003-04 standard academic year an amount determined by:

> \(A\) Multiplying the number of whole months in the enrollment period
> by \$468.78 for a full-time student or by \$234.39 for a part-time
> student;
>
> \(B\) Multiplying any additional days in the enrollment period by
> \$15.63 for a full-time student or by \$7.81 for a part-time student;
> and
>
> \(C\) Adding the two results. If the enrollment period is as long as
> or longer than the standard academic year, this amount will be
> decreased by 2 cents for a full-time student and decreased by 1 cent
> for a part-time student.

\(3\) The amount of educational assistance payable to each surviving
spouse or dependent child of a deceased servicemember or veteran for an
enrollment period will be the lesser of the following:

\(i\) The total charges for educational expenses the eligible individual
incurs during the enrollment period, or

\(ii\) For the 2003-04 standard academic year an amount determined by:

\(A\) Multiplying the number of whole months in the enrollment period by
\$468.78 for a full-time student or by \$234.39 for a part-time student;

\(B\) Multiplying any additional days in the enrollment period by
\$15.63 for a full-time student or by \$7.81 for a part-time student;
and

\(C\) Adding the two results. If the enrollment period is as long as or
longer than a standard academic year, this amount will be decreased by 2
cents for a full-time student and decreased by 1 cent for a part-time
student; and

\(D\) Dividing the amount determined in paragraph (b)(3)(ii)(C) of this
section by the number of the deceased veteran's dependents receiving
educational assistance for that enrollment period. If one or more
dependents is receiving educational assistance for part of the
enrollment period, the amount calculated in paragraph (b)(3)(ii)(C) will
be prorated on a daily basis. The amount for each day when more than one
dependent is receiving educational assistance will be divided by the
number of dependents receiving educational assistance on that day. The
total amount for the days when only one dependent is receiving
educational assistance will not be divided. (Authority: 10 U.S.C. 2143,
2145)

\(c\) *Time* of *educational assistance payments.* VA will make payments
of educational assistance at the end of the first month of each
semester, quarter or term in which the individual is entitled to such a
payment, provided VA receives a timely enrollment certification. If VA
receives the enrollment certification so late that payment cannot be
made at the end of the month in which the individual is enrolled, VA
will make payment as soon as practicable. (Authority: 10 U.S.C. 2143)

\[51 FR 27026, July 29, 1986, as amended at 52 FR 35241, Sept. 18, 1987;
53 FR 50521, Dec. 16, 1988; 55 FR 31181, Aug. 1, 1990; 56 FR 44008,
Sept. 6, 1991; 58 FR 50845, Sept. 29, 1993; 60 FR 46533, Sept. 7, 1995;
60 FR 54435, Oct. 24, 1995; 61 FR 28754, June 6, 1996; 62 FR 10455, Mar.
7, 1997; 62 FR 63848, Dec. 3, 1997; 64 FR 44661, Aug. 17, 1999; 65 FR
13693, Mar. 14, 2000; 65 FR 18151, Apr. 6, 2000; 66 FR 32226, June 14,
2001; 67 FR 34405, May 14, 2002; 68 FR 65400, Nov. 20, 2003; 69 FR
62210, Oct. 25, 2004\]

**Supplement *Highlights* references**: 8(5), 20(1), 27(1a), 29(1),
36(1), 45(1), 48(2), 55(1), 59(1), 65(1), 66(3).

*Next Section is §21.5822*

Reserved

**§21.5822 Subsistence allowance.**

\(a\) *Subsistence allowance.* Except as provided in paragraph (a)(2) of
this section, VA will pay subsistence allowance to a veteran, spouse,
surviving spouse or dependent child during any period for which he or
she is entitled to educational assistance. No subsistence allowance is
payable to:

\(1\) A servicemember, even if he or she is entitled to educational
assistance, or

\(2\) A spouse or dependent child of a servicemember, even if the spouse
or dependent child is entitled to educational assistance. (Authority: 10
U.S.C. 2144(a))

\(b\) *Amount* of *subsistence allowance.*

\(1\) The following rules govern the amount of subsistence allowance
payable to veterans and to spouses and dependent children of veterans
who are alive during the period for which subsistence allowance is
payable. As stated in paragraph (a) of this section, these amounts are
payable only for periods during which the veterans, spouses or dependent
children are entitled to educational assistance.

\(i\) If a person is pursuing a course of instruction on a full-time
basis, his or her subsistence allowance is \$1,051 per month for
training pursued during the 2003-04 academic year.

\(ii\) If a person is pursuing a course of instruction on other than a
full-time basis, his or her subsistence allowance is \$525.50 per month
for training pursued during the 2003-04 academic year.

\(iii\) If a person does not pursue a course of instruction for a
complete month VA will prorate the subsistence allowance for that month
on the basis of 1/30th of the monthly rate for each day the person is
pursuing the course.

\(2\) The following rules govern the amount of subsistence allowance
payable to surviving spouses and dependent children of deceased veterans
and servicemembers.

\(i\) VA will determine the monthly rate of subsistence allowance
payable to a person for a day during which he or she is pursuing a
course of instruction full-time during the 2003-04 academic year by
dividing \$1,051 per month by the number of the deceased veteran's
dependents pursuing a course of instruction on that day.

\(ii\) VA will determine the monthly rate of subsistence allowance
payable to a person for a day during which he or she is pursuing a
course of instruction on other than a full-time basis during the 2003-04
academic year by dividing \$525.50 per month by the number of the
deceased veteran's dependents pursuing a course of instruction on that
day. (Authority: 10 U.S.C. 2144, 2145)

\(iii\) The total amount of subsistence allowance payable to a person
for a month is the sum of the person's daily rates for the month.

\(c\) *Time* of *subsistence allowance payments.* VA will make payments
of subsistence allowance on the first day of the month following the
month for which subsistence allowance is due, provided that VA receives
a timely enrollment certification. If VA receives the enrollment
certification so late that payment cannot be made on the first day of
the month following the month for which subsistence allowance is due, VA
will make payment as soon as practicable. (Authority: 10 U.S.C. 2144)

\[51 FR 27026, July 29, 1986, as amended at 52 FR 35241, Sept. 18, 1987;
53 FR 50521, Dec. 16, 1988; 55 FR 31181, Aug. 1, 1990; 56 FR 44008,
Sept. 6, 1991; 58 FR 50845, Sept. 29, 1993; 60 FR 46535, Sept. 7, 1995;
61 FR 28754, June 6, 1996; 62 FR 10455, Mar. 7, 1997; 62 FR 63848, Dec.
3, 1997; 64 FR 44661, Aug. 17, 1999; 64 FR 46974, Aug. 27; 65 FR 13694,
Mar. 14, 2000; 66 FR 32226, June 14, 2001; 67 FR 34405, May 14, 2002; 68
FR 65401, Nov. 20, 2003; 69 FR 62210, Oct. 25, 2004\]

**Supplement *Highlights* references**: 20(1), 27(1a), 29(1), 36(1),
45(1), 48(2),

55(1), 59(1), 65(1), 66(3).

*Next Section is §21.5824*

**§21.5824 Nonduplication: Federal programs**

\(a\) *Duplication of some benefits prohibited.* An individual who is
receiving educational assistance under programs authorized by 38 U.S.C.
Chapters 30, 31, 32, 34, 35 or 36 may not receive concurrently either
educational assistance or subsistence allowance under the §§21.5700,
21.5800 and 21.5900 series of regulations for the same program of
education, but may receive them sequentially.

\(b\) *Debts may result from duplication.*

\(1\) If an individual receives benefits under 38 U.S.C. Chapters 30,
31, 32, 34, 35 or 36 for training, and he or she has previously received
educational assistance or subsistence allowance (or both) under
§§21.5700, 21.5800, 21.5900 series of regulations the amount of the
benefits received under 38 U.S.C. Chapters 30, 31, 32, 34 or 35 shall
not constitute a debt due the United States.

\(2\) If an individual receives benefits under 38 U.S.C. Chapter 34, and
had signed an agreement with the Department of Defense to waive those
benefits in return for receiving benefits under the educational
assistance test program:

\(i\) Any benefits already paid under the educational assistance test
program will constitute a debt due the United States, and

\(ii\) No further benefits under the educational assistance test program
will be paid to the individual or to anyone to whom entitlement may be
transferred. (Authority: 10 U.S.C. 2141)

*Next Section is §21.5828*

\(v\) *Independent study course loses accreditation*. If the reservist
is enrolled in a course offered in whole or in part by independent
study, and the course loses its accreditation (or the educational
institution offering the course loses its accreditation), the date of
reduction or discontinuance will be the effective date of the withdrawal
of accreditation by the accrediting agency, unless the provisions of
§21.7620 (c)(3) or (c)(4) apply. (Authority: 10 U.S.C. 16136; 38 U.S.C.
3680A(a)(4))

\(w\) \[Removed and reserved\]

\(x\) *Reduction following loss of increase* ("*kicker*"). If a
reservist is entitled to an increase ("kicker") in the monthly rate of
basic educational assistance as provided in §21.7636(b) and loses that
entitlement, the effective date for the reduction in the monthly rate
payable is the date, as determined by the Secretary of the military
department concerned, that the reservist is no longer entitled to the
increase ("kicker"). (Authority: 10 U.S.C. 16131)

\(y\) *Election to receive educational assistance under 38 U.S.C.
chapter 30*. VA shall terminate educational assistance effective the
first date for which the reservist received educational assistance when:

\(1\) The service that formed a basis for establishing eligibility for
educational assistance under 10 U.S.C. chapter 1606 included a period of
active duty as described in §21.7020(b)(1)(iv); and

\(2\) The reservist subsequently made an election, as described in
§21.7042(a)(7) or (b)(10), to become entitled to basic educational
assistance under 38 U.S.C. chapter 30. (Authority: §107, Pub. L.
104-275, 110 Stat. 3329-3330)

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

\[53 FR 34740, Sept. 8, 1988, as amended at 57 FR 57106, Dec. 3, 1992;
58 FR 51783, Oct. 5, 1993; 61 FR 20729, May 8, 1996; 61 FR 29304, June
10, 1996; 62 FR 55520, Oct. 27, 1997; 63 FR 35837, July 1, 1998; 65 FR
5788, Feb. 7, 2000; 65 FR 61101, Oct. 16, 2000; 66 FR 38939, July 26,
2001\]

**Supplement *Highlights* references**: 9(2), 27(4), 35(1), 39(4),
47(1), 54(1), 56(2).

**§21.7636 Rates of payment.**

\(a\) *Monthly rate of educational assistance*.

\(1\) Except as otherwise provided in this section or in §21.7639, the
monthly rate of educational assistance payable for training that occurs
after September 30, 2003, and before October 1, 2004, to a reservist
pursuing a program of education is the rate stated in this table:

*Training Monthly rate*

Full \$ 282.00

3/4 time 212.00

1/2 time 140.00

1/4 time 70.50

\(2\) (i) The monthly rate of basic educational assistance payable to a
reservist for apprenticeship or other on-the-job training full time that
occurs after September 30, 2003, and before October 1, 2004, is the rate
stated in this table:

*Training period Monthly rate*

First six months of pursuit of training \$ 211.50

Second six months of pursuit of training 155.10

Remaining pursuit of training 98.70

\(ii\) Full-time training will consist of the number of hours which
constitute the standard workweek of the training establishment, but not
less than 30 hours unless a lesser number of hours is established as the
standard workweek for the particular establishment through bona fide
collective bargaining between employers and employees.

\(3\) The monthly rate of basic educational assistance payable to a
reservist for pursuit of a cooperative course that occurs after
September 30, 2003, and before October 1, 2004, is the rate stated in
paragraph (a)(1) of this section for full-time training during that
period of time. (Authority: 10 U.S.C. 16131(b), (c); §8203(b), Pub. L.
105-178, 112 Stat. 493-494)

\(b\) *Increase* ("*kicker*") *in educational assistance rates*.

\(1\) The Secretary of the military department concerned may increase
the amount of educational assistance stated in paragraph (a) of this
section that is payable to a reservist who has a skill or specialty in
which there is a critical shortage of personnel or for which it is
difficult to recruit, or, in the case of critical units, retain
personnel.

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

\(i\) Will set the amount of the increase ("kicker") for full-time
training, but the increase ("kicker") may not exceed \$350 per month;
and

\(ii\) May set the amount of the increase ("kicker") payable, for a
reservist pursuing a program of education less than full time or
pursuing an apprenticeship or other on-job training, at an amount less
than the amount described in paragraph (b)(2)(i) of this section.
(Authority: 10 U.S.C. 16131(i)(1))

\(c\) *Limitations on payments*. VA may withhold final payment until VA
receives proof of the reservist's enrollment and adjusts the reservist's
account. (Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680(g))

\[53 FR 34740, Sept. 8, 1988, as amended at 57 FR 57107, Dec. 3, 1992;
61 FR 20729, May 8, 1996; 61 FR 29305, June 10, 1996; 62 FR 27963, May
22, 1997; 62 FR 55520, Oct. 27, 1997; 62 FR 66278, Dec. 18, 1997; 64 FR
26297, May 14, 1999; 65 FR 59127, Oct. 4, 2000; 65 FR 60499, Oct. 11,
2000; 66 FR 38937, July 26, 2001; 67 FR 6655, Feb. 13, 2002; 68 FR
42978, July 21, 2003; 69 FR 62205, Oct. 25, 2004\]

**Supplement *Highlights* references**: 27(4), 31(1), 35(1), 36(3),
42(2), 51(3), 56(1),

57(1), 63(1), 66(1).

*Next Section is §21.7639*

**§21.7639 Conditions which result in reduced rates or no payment.**

The payment of educational assistance at the monthly rates established
in §21.7636 shall be subject to reduction, whenever the circumstances
described in this section arise.

\(a\) *Withdrawals and nonpunitive grades*.

\(1\) Withdrawal from a course or receipt of a nonpunitive grade affects
payments to a reservist. VA will not pay benefits to a reservist for
pursuit of a course from which the reservist withdraws or receives a
nonpunitive grade which is not used in computing requirements for
graduation unless the provisions of this paragraph are met.

\(i\) The reservist withdraws because he or she is ordered to active
duty; or

\(ii\) Both of the following exist.

\(A\) There are mitigating circumstances, and

\(B\) The reservist submits a description of the circumstances in
writing to VA either within one year from the date VA notifies the
reservist that he or she must submit the mitigating circumstances, or at
a later date if the reservist is able to show good cause why the
one-year time limit should be extended to the date on which he or she
submitted the description of the mitigating circumstances. (Authority:
10 U.S.C. 16136(b), 38 U.S.C. 3471, 3680(a), 5101, 5113; Pub. L.
102-127) (Aug. 1, 1990)

\(2\) If VA considers that mitigating circumstances exist because the
reservist withdrew during a drop-add period or because the withdrawal
constitutes the first withdrawal of no more than six credits after May
31, 1989, the reservist is not subject to the reporting requirement
found in paragraph (b)(1)(ii)(B) of this section. (Authority: 10 U.S.C.
16136(b), 38 U.S.C. 3680(a)) (Jun. 1, 1989)

\(b\) *No education assistance for some incarcerated reservists.* VA
will pay no educational assistance to reservists who are incarcerated
and who are training less than one-half time. In addition, VA will pay
no educational assistance to a reservist who:

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

\(2\) Is enrolled in a course:

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

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