**§21.4503 Determination of loan amount.**

\(a\) *General.* The amount of the education loan shall be computed by:

\(1\) Determining the total amount of financial resources of the
eligible spouse or surviving spouse, as defined in §21.4500(e), which
may be reasonably expected to be expended for education needs in any
academic year or other loan period.

\(2\) Subtracting the available resources determined in paragraph (a)(1)
of this section from the actual cost of attendance, as defined in
§21.4500(f), to obtain the net amount by which costs exceed the
resources available for education needs. If the available resources and
the costs are equal, or if the resources exceed the costs, no loan will
be authorized.

\(b\) *Amount.* A loan shall be authorized in the amount of the excess
of cost over available resources as determined in paragraph (a) of this
section subject to the following limitations:

\(1\) If the costs exceed the available resources by \$50 or less no
loan shall be granted.

\(2\) The aggregate of the amounts any eligible spouse or surviving
spouse may borrow for an education loan may not exceed \$2,500 in any
one academic year. It also may not exceed an amount determined by
multiplying the number of months of educational assistance to which the
eligible spouse or surviving spouse would be entitled were it not for
the expiration of his or her delimiting period under 38 U.S.C. 3511
times \$376. (Authority: 38 U.S.C. 3512(f), 3698)

\(3\) If a student is enrolled in a course organized on a term, quarter
or semester basis, no single loan shall be authorized at one time for a
period that is longer than two consecutive quarters. If a student is
enrolled in a course not organized on a term, quarter or semester basis,
no single loan shall be authorized at one time for a period that is
longer than 6 months.

\(4\) The Department of Veterans Affairs shall pay the following maximum
amounts for these loan periods:

\(i\) \$1,250 for any semester.

\(ii\) \$830 for any term of 8 weeks or more leading to a standard
college degree which is not part of the normal academic year or for a
quarter.

\(iii\) \$1660 for two consecutive quarters.

\(iv\) \$270 per month for a course not leading to a standard college
degree if less than 6 months long.

\(v\) \$1660 for a 6-month loan period based on a course not leading to
a standard college degree which is 6 or more months long.

\(vi\) \$270 per month for a loan period of less than 6 months based on
a course not leading to a standard college degree which is 6 or more
months long. (Authority: 38 U.S.C. 3512(f), 3698(b))

\(5\) No amount authorized will be paid by the Department of Veterans
Affairs until the eligible spouse or surviving spouse is certified as
being enrolled and actually pursuing the course.

\(6\) An eligible spouse or surviving spouse may receive more than one
loan covering separate loan periods, subject to paragraphs (b)(3) and
(b)(7) of this section.

\(7\) If the spouse or surviving spouse has a material change in
economic circumstances subsequent to the original application for a
loan, he or she may reapply for an increase in an authorized loan or for
a loan, if otherwise qualified, if no loan was originally granted.
However, the Department of Veterans Affairs will not decrease or revoke
a loan once granted, absent fraud in the application.

\[40 FR 31765, July 29, 1975, as amended at 48 FR 37996, Aug. 22, 1983;
49 FR 8439, Mar. 7, 1984; 50 FR 19936, May 13, 1985; 61 FR 26116, May
24, 1996\]

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