**Part 8: Chapter 1 -- \[Chapter 1606 Provisions\]**

[1.01 Background](#101)\
[1.02 Responsibilities of DoD, DHS, and VA](#102)\
[1.02A Reserve Component Background](#102bigA)\
[1.03 Eligibility (38 CFR 21.7540)](#103)\
[1.04 Unsatisfactory Participation](#104)\
[1.05 Entitlement (38 CFR 21.7570)](#105)\
[1.06 Eligibility Under Two or More Programs](#106)\
[1.07 Period of Eligibility (38 CFR 21.7550)](#107)\
[1.08 Extension of Period of Eligibility Due to Service-Connected
Disability (38 CFR 21.7551)](#108)\
[1.09 Programs of Education History (38 CFR 21.7610)](#109)\
[1.10 Monthly Rates (38 CFR 21.7636)](#110)\
[1.11 Processing Overview](#111)\
[1.12 Reserved](#112)\
[1.13 Other Chapter 1606 Procedures](#113)

[**\[Appendix A**](#A) - Chapter 1606 Rates

  ----------------------- ----------------------- -----------------------
  10/1/05                 10/1/04                 10/1/03

  10/1/02                 10/1/01                 10/1/00

  10/1/99                 10/1/98                 10/1/97

  10/9/96                 10/1/96                 10/1/95

  10/1/94                 04/1/93                 10/1/91

  10/1/90                 07/1/85                 
  ----------------------- ----------------------- -----------------------

**[Appendix B](#B) - Chapter 1606 Kicker Rate Table**\
[Chapter 1606 Kicker Rate Table\]\
](#B)

**[Appendix C is eliminated](#B)**

[]{#101 .anchor}**1.01  BACKGROUND\
(Change 20, July 14, 2005)**

        **a.**  This chapter provides an overview of the provisions of
the chapter 1606 program, title 10, U.S. Code (the Montgomery GI Bill -
Selected Reserve).  The remaining chapters in this part and the Training
Guide (TG) 22-99-5, The Chapter 1606 User Guide, provide detailed
procedures for processing claims.

        **b.**  The purpose of chapter 1606 is to provide educational
assistance to members of and encourage membership in the Selected
Reserve of the Ready Reserve of any of the reserve components of the
Armed Forces.  These components include the Army Reserve, Naval Reserve,
Air Force Reserve, Marine Corps Reserve, Army National Guard, and Air
National Guard which are under the Department of Defense (DoD), and the
Coast Guard Reserve which is under the \[Department of Homeland Security
(DHS)\] when it is not operating as a service in the Navy.

*NOTE:  Some provisions of chapter 1606 are administered solely by DoD
and DHS.  These provisions are highlighted in this chapter.*

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[]{#102 .anchor}**1.02  RESPONSIBILITIES OF DoD, DHS, AND VA\
(Change 20, July 14, 2005)**

        **a.  DoD and DHS Responsibilities**.  DoD and DHS have the
responsibility to:

        (1)  Establish policy regarding eligibility and evidence
requirements for chapter 1606 benefits.

        (2)  Provide a written notice of basic eligibility (Notice of
Basic Eligibility-NOBE) to each reservist when he or she meets basic
eligibility requirements for educational assistance under chapter 1606. 
Such notice shall summarize the provisions of chapter 1606 and include
prominent reference to the provisions regarding termination of
assistance and penalties for failure to participate satisfactorily.

        (3)  Notify VA when a reservist becomes ineligible for chapter
1606 benefits.

        (4)  Fund educational assistance payments under this program.

        (5)  Submit an annual report to Congress concerning the
operation of the program (DoD only).

        (6)  Implement assessment and collection of recoupments in cases
of unsatisfactory participation.

        **b.  VA Responsibilities**.  VA has the responsibility to:

        (1)  Authorize and pay educational assistance allowance.  This
includes but is not limited to:

        (a)  Prepare and publish applications and other forms for
administering the program.

        (b)  Develop and implement claims processing procedures.

        (c)  Develop and install systems for paying educational
assistance allowance.

        (d)  Coordinate approvals of educational institutions with the
State approving agency (SAA).

        (2)  Collect overpayments of educational assistance allowance. 
Monetary penalties imposed by the reserve components are not subject to
VA collection.  The reserve components collect these debts.

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[]{#102bigA .anchor}**\[1.02A  RESERVE COMPONENT BACKGROUND\
(Change 20, July 14, 2005)**

*NOTE:  It is important to understand the organization of the reserve
components and where the Selected Reserve fits in.  The following
discussion of reserve components and related issues is relevant for
understanding the impact of reserve service on chapter 30 of title 38 as
well as chapters 1606 and 1607 of title 10***. **

**       ** **a.  Breakdown of the Reserve Components. ** The reserve
components of the Armed Forces are: the Army Reserve; the Naval Reserve;
the Marine Corps Reserve; the Air Force Reserve; the Coast Guard
Reserve; there are also two National Guard components that are included
as reserve components, the Army National Guard, and the Air National
Guard.  Each reserve component is organized as follows:

        (1) [Ready Reserve]{.underline} 

        (a)  IRR (Individual Ready Reserve) (Members are on a list; they
do not drill or belong to a unit.  They can be called up in a national
emergency.)

        (b)  Selected Reserve

        [1]{.underline}.  Drilling Reserve.  These are members of a unit
who attend a monthly drill and annual training; they are the most likely
to be called up and deployed.  While deployed, they are still considered
part of the Selected Reserve.

        [2]{.underline}.  AGR (Active Guard Reserve).  These individuals
are full-time support.  These individuals are on active duty but have
[not]{.underline} been called up involuntarily.  See [subparagraphs
b](#102bigAb) and [c](#102bigAc) for more information.

        [3]{.underline}  IMA (Individual Mobilization Augmentee). 
Members are assigned to a unit but only attend annual training.  They
are subject to call-up.

        (2)  [Standby Reserve]{.underline}.  Members are standby if
needed; most are in government civilian jobs that do not allow drill
attendance.

        (3)  [Retired Reserve]{.underline}  Members are in retirement
but could be called up in times of national emergency.

**       ** []{#102bigAb .anchor}**b.  Call-up to active duty vs. AGR
Status. ** Persons in the Selected Reserve may be in an active duty
status because of \"call-up\" or because they are in an AGR (Active
Guard/Reserve) status.

        (1)  [Call-up]{.underline}.  "Call-up\" occurs when a person is
[involuntarily]{.underline} ordered to active duty from a reserve
status.  Typically, persons are called up from the Selected Reserve or
from the IRR but some Retired Reserve members have been called up as
well.  National Guard call-ups may be authorized under either title 10
U.S. Code or under title 32 U.S. Code.  All other call-ups are under the
authority of title 10, U.S. Code.  

        (2)  [AGR]{.underline}.  Active Guard and Reserve Duty (AGR) can
be active duty service in both guard and reserve components of the
Selected Reserve.  (The Navy\'s term for AGR service is The Active
Reserve (TAR)).  An individual serving as an AGR/TAR agrees
[voluntarily]{.underline} to serve continuous full-time active duty;
such duty is sometimes referred to as an AGR tour.  Typically, AGR
service is for standard length tours (typically 3 or 4 years) whereas
call-up service usually is for 24 months or less and is usually less. 
AGR service in the Army National Guard and the Air National Guard may be
authorized under either title 10 or title 32.  AGR service for the other
reserve components is always authorized under title 10.   (AGR service
under title 32 is not always considered active duty for VA purposes. 
See note #2 in subparagraph c below.)

        []{#102bigAc .anchor}**c.  Title 10 vs. Title 32.** Title 10
U.S. Code contains the rules pertaining to the Armed Forces of the
United States whereas title 32 pertains strictly to the National
Guard.   The Army and Air National Guard are managed by the State
governors but guard units or individuals may be called to active service
by the federal government.  A particular period of an individual\'s
service may be authorized under one title or the other.  Guard members
activated under title 32 have been activated under the authority of a
governor while those activated under title 10 have been activated under
Federal authority.  (Active duty performed under title 10 is always
considered active duty under title 38 but active duty under title 32 is
not considered active duty for purposes of title 38 with certain
exceptions for chapter 30 as noted below.)  The following summarizes the
impact of the difference between title 10 and title 32 service regarding
eligibility under chapters 30, title 38 and chapters 1606 and 1607 of
title 10.

        (1)  [Chapter 1606]{.underline}.  There is no impact on
eligibility.  Service under either title 10 or title 32 is qualifying
for establishing eligibility.   For both delimiting date extension and
entitlement restoration, only active duty under title 10 is qualifying. 

        (2)  [Chapter 1607]{.underline}.  Call-up under title 10, and
under section 502(f) of title 32 can be used to establish chapter 1607
eligibility.  Once eligibility is established, continued reserve service
is required to maintain eligibility.   For restoration of entitlement
purposes, only title 10 service is qualifying. 

        (3)  [Chapter 30]{.underline}.   Active duty under title 10
(including AGR) is active duty under chapter 30.  However, call-up under
title 10 for less than 2 years (see pt. V, par. 1.17a(4)) is not
qualifying for establishment of chapter 30 eligibility.  (Call-up for
less than two years is active duty and should be treated that way for
delimiting date extension and restoration of entitlement.  The
in-service rate would apply.)  Service under title 32 (including AGR)
may qualify as active duty under chapter 30 depending on its nature. 
See part V, paragraph 1.02a(6).   There is no \"less than 2-year\" rule
for title 32 service as there is for title 10 service (see pt V, par.
1.17a(4)).  A person with qualifying title 32 service would receive a
delimiting date extension, the in-service rate, but would not be
eligible for restoration of entitlement. 

*NOTE:  The 4 years of Selected Reserve service required to receive 2 X
4 benefits (chapter 30 eligibility category IC\--see pt. V, par. 1.04)
would include title 32 service as well as title 10 service.  *

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[]{#103 .anchor}**1.03 ELIGIBILITY ([38 CFR
21.7540](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7540.doc))**\
**(Change 20, July 14, 2005)**

*NOTE 1:  Only DoD and DHS have authority to make eligibility
determination for chapter 1606.  **[VA DOES NOT HAVE ANY AUTHORITY TO
MAKE CHAPTER 1606 ELIGIBILITY DETERMINATIONS]{.underline}.**  This
paragraph states VA\'s understanding of the law and DoD and DHS policy. 
Refer any questions from reserve component personnel that concern basic
eligibility requirements to the appropriate military service or Coast
Guard contact point (see par. 8.04).  While VA can question DoD\'s
decision as to basic eligibility, VA does not have any authority in this
area.  RPOs should [only question cases that have conflicting
evidence]{.underline} (the evidence that VA has conflicts with the
eligibility status as furnished by Defense Manpower Data Center
(DMDC)).*

*NOTE 2:  DoD has published policy on chapter 1606 in Department of
Defense Instructions (DoDI) 1322.17.  This policy document is on the
Internet at the following address:
web7.whs.osd.mil/DoDiss/instructions/ins2.html.*

        []{#103a .anchor}**a.  Basic Eligibility**.  Basic eligibility
exists for a person who meets each of the following four requirements:

        (1)  After June 30, 1985:

        (a)  Enlists, reenlists, or extends an enlistment in the
Selected Reserve so that the reservist has an obligation to serve for a
period of not less than 6 years following the date of such action; or

        (b)  Is appointed as or is serving as a reserve officer and
agrees to serve in the Selected Reserve for a period of not less than 6
years in addition to any other period of obligated Selected Reserve
service.

        (2)  Has met the requirements of a secondary school diploma (or
equivalency certificate) before applying for benefits with the VA.

        (3)  Has completed Individual Advanced Training (IADT).

        (4)  Has not elected to have his or her service in the Selected
Reserve credited toward establishing eligibility under chapter 30,
U.S.C. of title 38.  (See [subpar. d](#103d) below).

        []{#103b .anchor}**b.  Reserve Officers Training Corps
Scholarship Program**

        (1)  Reservists are [not eligible]{.underline} for chapter 1606
benefits \[while they are receiving\] financial assistance under
[section 2107 of title 10,
U.S.C.](http://www4.law.cornell.edu/uscode/html/uscode10/usc_sec_10_00002107----000-.html),
as a member of the Senior Reserve Officers\' Training Corps (ROTC)
Program.  \[DoD considers the service member\'s eligibility to be
"suspended;" eligibility may be reinstated at the end of the scholarship
period\]. This is commonly known as the ROTC scholarship program.

        (2)  Reservists are [not prohibited]{.underline} from receiving
chapter 1606 benefits if they receive financial assistance under
[section 2107a of title 10,
U.S.C](http://www4.law.cornell.edu/uscode/html/uscode10/usc_sec_10_00002107----000-.html). 
This financial assistance is available to specially selected members of
the Army Reserve and Army National Guard.

        **c. \[Reserved for Future Use**.**\]**

        []{#103d .anchor}**d. \[Dual Eligibility: Chapters 30, 1607 and
1606**.  An individual who serves in the Selected Reserve may use the
same period of Selected Reserve service to establish eligibility under
chapter 1607 of title 10 as well as chapter 1606.  However, an
individual in the Selected Reserve may [not]{.underline} use the same
period of Selected Reserve service (either active duty or drilling
status) to establish eligibility under both chapter 30 of title 38 and
chapter 1606.  An individual must make an election to count a period of
Selected Reserve service toward one benefit program or the other.  Such
elections are irrevocable.  (An election is also required if the
individual could use the same period of service to establish eligibility
to chapter 30 or chapter 1607 of title 10.) 

        (1)  The requirement to make an election regarding Selected
Reserve service affects persons in the Selected Reserve called to active
service under title 10 or title 32 as well as persons who join the
Selected Reserve after serving on active duty and who may become
eligible as a \"2 x 4\" under chapter 30.  (The 2 X 4 program requires
an individual to serve at least 2 years on active duty followed by
4 years in the Selected Reserve.  See pt V, pars. 1.04, 1.06  and 1.18
regarding Selected Reserve issues in chapter 30.)  For procedures on how
to handle a chapter 1606/30 election, see part. V, paragraph. 3.09. 

        (2)  If a member of the Selected Reserve is called-up and, after
serving on active duty for 24 continuous months, decides to use the
call-up period to establish eligibility under chapter 30, the individual
is not entitled to chapter 1606 benefits during the call-up period.  Any
benefits based on this service will be an overpayment. 

**Example 1**:  An individual signs up for 6 years in a Selected Reserve
component and becomes eligible for chapter 1606.  After 3 years, he is
called to active duty involuntarily under title 10.  This person remains
eligible for chapter 1606 while on active duty.  He may continue to
receive chapter 1606 benefits.  He also may establish eligibility to
chapter 1607 and elect to receive chapter 1607 benefits, which are
generally higher than chapter 1606 benefits.  If he serves a full two
years on active duty, this person may establish eligibility to chapter
30 as well.  If this individual wishes to use the two years of active
duty toward chapter 30, the RPO must solicit an election using the
procedures in part V, paragraph 3.09.  Title 38 requires this election
in addition to the election the individual may have made with the
military.  If this individual elects to have two years of his Selected
Reserve service count toward chapter 30, any chapter 1606 benefits for
enrollment during this period will become an overpayment**.  **

*NOTE:** ** If the individual elects chapter 30, the individual's
chapter 1606 eligibility is suspended until the person incurs (either by
extending or reenlisting) an additional 2 years in order to have a six
year commitment.  This only applies to individuals within their initial
six-year commitment.*

**Example 2: ** An individual has established eligibility for chapter
1606 and has served for 8 years, two years beyond his original 6-year
commitment. He is then called to active duty, serves a full two years
and becomes eligible for chapter 30 under category IA.  He is also
eligible for chapter 1607, having been called up to active duty from the
Selected Reserves under an authorized contingency.  The member also
retains chapter 1606 eligibility since he completed his initial six-year
commitment.  Therefore, the individual can use the 2 years for chapter
30 without compromising his 1606 eligibility.  An election as to how the
2 years of active service is to be credited (chapter 30 or 1607) is
required. 

**Example 3: ** An individual who is eligible for chapter 1606 is called
to active duty and serves 16 months.  He returns to a drilling status in
the Selected Reserve after the active duty.  This person becomes
eligible for chapter 1607 because of the call-up but does not establish
chapter 30 eligibility.  He is entitled to benefits under both 1606 and
1607 (limited to 48 months of total benefits). 

**Example 4:** An individual signs up for a two-year obligation on
active duty and serves the 2 years, thereby becoming eligible for
chapter 30 under category IA (less than 3 years obligation).  She then
agrees to serve 6 years in the Selected Reserve, thereby becoming
eligible for chapter 1606.  This person is entitled to 36 months of
chapter 30 at the category IA rate as well as 36 months of chapter
1606.  (Total entitlement used in limited by the 48-month rule.) 
Alternatively, this person could elect to have 4 years of her Selected
Reserve service count toward chapter 30 eligibility (the 2 X 4
program\--chapter 30 eligibility category IC).  She would then be
entitled to the chapter 30 category IB rate for 36 months and would have
no benefits under chapter 1606.  Such an election would maximize her
total benefits. 

**Example 5:**  An individual serves two years of a 3-year active duty
obligation and then signs up for 6 years in the Selected Reserve,
becoming eligible for chapter 1606.  He is not eligible for chapter 30
at all unless he makes the election to use 4 years of the Selected
Reserve service toward chapter 30.  In that case, he loses his chapter
1606 eligibility.  Such an election of chapter 30 would, of course, be
beneficial to the individual. 

**Example 6:**  An individual serves 2 years on active duty and signs up
for 4 years in the Selected Reserve.  She becomes eligible for chapter
30 under the 2 X 4 program.  She is not eligible for chapter 1606
because of a lack of a 6-year obligation.  At the end of 4 years, she
signs a 6-year obligation, which would establish eligibility under
chapter 1606.  She could maximize her benefits by using 36 months of
chapter 30 benefits followed by 12 months of chapter 1606 benefits.\] 

**       ** **e.  Reserved          **

**       ** **f.  Suspension of Eligibility**

*NOTE:  DoD and DHS make this eligibility decision. *

Eligibility to chapter 1606 is suspended when:

        (1)  The reservist is granted an authorized period of absence
and transfers to the Individual Ready Reserve (IRR), the Inactive
National Guard (ING), or another component.  Authorized periods of
absence [may not exceed one 3-year]{.underline} period for a missionary
obligation or a [one-year period for all other
circumstances]{.underline}.

        (2)  A reservist with a date of basic eligibility of November
29, 1989, or later enters the AGR/TAR.

*NOTE:  Individuals in the Army National Guard or the Air National Guard
who entered an AGR status before November 29, 1989, and under the
authority of [title 32, U.S.C]{.underline}., cannot be eligible for
chapter 30 unless they made the chapter 30, category IVB election
offered from October 9, 1996 through July 8, 1997.  (See pt. V, par.
1.10).*

        (3)  The Reservist fails to participate satisfactorily as
defined by DoD/DHS.

        (4)  A reservist receives financial assistance under the ROTC
Scholarship program (see [subpar.  b](#103b) above).

        (5)  A reservist uses active duty service toward another
educational assistance program such as chapter 30 and he or she is
within the initial six year commitment.

        **g.  Resumption of Eligibility**

*NOTE:  DoD and DHS make this eligibility decision. *

Eligibility is resumed when:

        (1)  The reservist rejoins the Selected Reserve before the
expiration of an authorized period of absence or within one year of
release from AGR/TAR status provided the reservist commits to serve the
remaining balance of the original 6-year requirement.

        (2)  The reservist is determined to have participated
satisfactorily.

        **h.  Tuition Assistance**.  Reservists are not eligible for
chapter 1606 benefits if they are training at less than half time and
\[tuition assistance from the military department is available.\]  See
paragraph 4.19 for procedures for tuition assistance cases.

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[]{#104 .anchor}**1.04 UNSATISFACTORY PARTICIPATION\
(Change 20, July 14, 2005)**

*NOTE:  DoD and DHS make this eligibility decision. *

        **a.**  A reservist who fails to participate satisfactorily in
the Selected Reserve is not eligible for educational assistance.  VA
must stop benefits effective the date the reservist fails to participate
satisfactorily.  DoD and DHS are responsible for determining and
notifying VA of the date participation failed to be satisfactory.

        **b.**  DoD and DHS may penalize a member for unsatisfactory
participation in the Selected Reserve by:

        (1)  Ordering the reservist to active duty for a period of 2
years or the remaining period of obligated service, whichever is less,
or

        (2)  Requiring the reservist to refund a specific amount to the
United States.  (DoD uses a formula which takes into consideration the
number of months that he or she has remaining under the Selected Reserve
obligation.)

        **c.**  DoD and DHS determine such penalties.  The appropriate
Service Department may waive the penalty or reduce the amount of refund
if they determine the reservist\'s failure to participate satisfactorily
was due to reasons beyond his or her control.

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[]{#105 .anchor}**1.05 ENTITLEMENT ([38 CFR
21.7570](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7570.doc))\
(Change 20, July 14, 2005)**

        **a.  General.**  An eligible reservist is entitled to a maximum
of 36 months of educational assistance based upon full-time training, or
the equivalent part-time training.  No extension of entitlement is
permitted.  Less than 1/2 training is payable only for courses pursued
after November 17, 1988, as a result of Public Law 100-689.

        **b.  Entitlement Charge**

       (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.

*\[NOTE:  See VBA Letter 22-05-01.  Public Law 108-454 temporarily
increased benefits for each step of apprenticeship and on-the-job
training but did not increase the corresponding entitlement charges.\]*

       (3)  [Correspondence Training]{.underline}.  VA will charge 1
month of entitlement for an amount equal to the rate for full-time
institutional training \[in effect when the training occurred.\]  This
rate includes the additional allowance for kickers.

       (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)  [Flight Training]{.underline}.  VA will charge 1 month of
entitlement for an amount equal to the rate for full-time institutional
training \[in effect when the training occurred.\]  This rate includes
the additional allowance for kickers.

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

        **c.  Entitlement Restoration**.  If a claimant was unable to
complete a period of training due to being called to active duty,
entitlement charged during the period that was interrupted will be
restored.  \[See part IV, paragraph 11.30.\]

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[]{#106 .anchor}**1.06 ELIGIBILITY UNDER TWO OR MORE PROGRAMS\
(Change 20, July 14, 2005)**

        **a.**  If a reservist is eligible for or has received
educational assistance under chapter 1606 and one or more other benefits
administered by VA, the maximum combined entitlement allowed is 48
months, or the part-time equivalent.  (See [38 U.S.C.
3695(a)](http://www4.law.cornell.edu/uscode/html/uscode38/usc_sec_38_00003695----000-.html).)

        **b.**  The reservist may not receive benefits concurrently
under chapter 1606 or \[1607\] of title 10 U.S.C. or under chapters 30,
31, 32, or 35 of title 38 U.S.C., section 901 (chapter 107 of title 10
U.S.C.), section 903 of Public Law 96-342, \[National Call to Service
(NCS) (chapter 31 of title 10 U.S.C),\] or the Omnibus Diplomatic
Security and Antiterrorism Act.

        **c.**  A reservist may be eligible under chapter 1606 and
another program as listed in subparagraph b above.  In these cases, the
reservist must elect in writing which benefit he or she wishes to
receive.

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[]{#107 .anchor}**1.07 PERIOD OF ELIGIBILITY ([38 CFR
21.7550](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7550.doc))\
(Change 20, July 14, 2005)**

        **a.  General**.  The delimiting date for an eligible reservist
is the earlier of the following:

        (1)  \[Fourteen years\] from the date eligibility began (10
years if Selected Reserve service began before October 1, 1992), or

        (2)  The day following separation from the Selected Reserve,
unless one of the exceptions discussed in subparagraphs b through e
below applies.

*NOTE:  The period of eligibility for chapter 1606 benefits begins* *on
the date of eligibility as opposed to other programs in which it begins
the day after* *the date of discharge.*

\[Example:  If the date of basic eligibility is 10/22/93, then
eligibility begins on that date.  The period of eligibility ends on
10/21/07.  The delimiting date is 10/22/07, 14 years from the date
eligibility began.\]

        **b.  Extension Due to Active Service  ([38 CFR
21.7550(a)(3)](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7550.doc))**. 
If an eligible reservist was \[called to active service under sections
12301(a), 12301(d), 12301(g), 12302, or 12304 of title 10,\] the period
of eligibility will be extended by an amount equal to the period of
active duty plus 4 months.  \[The reservist receives an extension
including a separate 4 months [for each period]{.underline} he or she is
called to active service.  The only period of call-up which is countable
for delimiting date extension is a period occurring within the
individual\'s original delimiting period.  The length of a call-up
period doesn\'t matter.  It could be as little as 3 days, for
example.\] 

Example: 

1606 Eligibility Date:  9/1/91

Call-up Begin Date :  8/1/01 (called up before his delimiting date
expired)

1606 Delimiting Date:  9/1/01

Call-up End Date: 8/1/02  (released after his delimiting date expired)

Result:  This individual receives a delimiting date extension of 5
months (one month of qualifying service plus the additional 4 months)

See paragraph 4.22c for procedures for identifying and adjusting these
cases.

        []{#107c .anchor}**c.  Extension When the Delimiting Period
Expires During Enrollment  ([38 CFR
21.7550(b)](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7550.doc)).** 
Generally, when eligibility is terminated for reasons other than
unsatisfactory participation in the Selected Reserve (see [par.
1.04](#104)), eligibility can be extended as explained below.

        (1)  If the reservist is enrolled in an institution regularly
operated on a quarter or semester basis and the period of eligibility
will expire during a quarter or semester, the period of eligibility will
be extended to the end of that quarter or semester.

        (2)  If the reservist is enrolled in an institution not
regularly operated on a quarter or semester basis and the period of
eligibility will expire after a major portion of the course is
completed, eligibility will be extended to the end of the course or for
12 weeks, whichever is less.

        **d.  Separation Due to Disability ([38 CFR
21.7550(c)](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7550.doc))**. 
If a reservist is separated from the Selected Reserve due to a
disability that did not result from willful misconduct, the original
delimiting date will not change.  It will remain 14-years from the date
eligibility began.  The disability does not have to have been incurred
in or aggravated by service in the Selected Reserve.  However, the
disability must have been incurred on or after the date on which the
claimant became eligible under the chapter 1606 program.

        **e.  Involuntary Separation From the Selected Reserve**. 
Public Law 102-484 provided that certain persons involuntarily separated
from the Selected Reserve will be eligible for chapter 1606 benefits for
14 years from their date of eligibility if they meet the following
criteria:

        (1)  Separation is by reason of

        (a)  inactivation of the person\'s unit of assignment, or

        (b)  involuntary separation of the person from the Selected
Reserve.

        (2)  Basic eligibility for chapter 1606 is established before
separation.

        (3)  Separation occurs between October 1, 1991, and September
30, 2001.

Go to Top

[]{#108 .anchor}**1.08  EXTENSION OF PERIOD OF ELIGIBILITY DUE TO
SERVICE-CONNECTED DISABILITY ([38 CFR
21.7551](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7551.doc))\
(Change 20, July 14, 2005)**

        **a.**  The \[14-year period of eligibility, or the 10-year
period if applicable,\] may be extended for a reservist who:

        (1)  Was prevented from pursuing a chosen educational program
before the period of eligibility expired because of a mental or physical
disability incurred in or aggravated by service in the Selected Reserve,
which was not due to the individual\'s own willful misconduct; and

        (2)  Applies for a delimiting period extension within 1 year
after

        (a)  The last day of the delimiting period, or

        (b)  The last day on which he or she was prevented from pursuing
the educational program, whichever is later.

        **b.**  The \[14-year period of eligibility, or the 10-year
period if applicable,\] shall not run during the period of time the
reservist was prevented from pursuing his or her educational program. 
Eligibility will begin again running on the first day following the
reservist\'s recovery from the disability (when training is feasible). 
Eligibility will not extend beyond the date of the reservist\'s
separation from the Selected Reserve unless separation was due to a
disability (see [subpar. 1.07c](#107c) above).  This is a VA
determination.  Procedures for disability extensions are contained in
part III, paragraph 4.03.

Go to Top

[]{#109 .anchor}**1.09 PROGRAMS OF EDUCATION HISTORY ([38 CFR
21.7610](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7610.doc))\
(Change 20, July 14, 2005)**

\[Chapter 1606 recipients are eligible for all types of training listed
in the table in part III, paragraph 7.03.  Non-credit entrepreneurship
courses offered by qualifying organizations will be added to that table
(see Cir. 22-04-01, Appendix A).  The following discussion is for
historical purposes.\] 

**       ** **a.  Programs Approved From July 1, 1985**.  From the
beginning of VA\'s responsibility for the chapter 1606 program,
educational assistance has been payable for pursuit of degree programs
and NCD (Non-College Degree) programs at Institutions of Higher Learning
(IHL's).  Independent study (to include open circuit TV courses) were
originally payable only if pursued concurrently with resident training.

        []{#109b .anchor}**b.  Expansion of Benefits**.  Effective
October 1, 1990, persons already eligible for chapter 1606 could receive
benefits for pursuing additional programs if they first enlisted,
reenlisted, or extended their Selected Reserve commitment to have at
least 6 years of obligated service after signing the enlistment,
reenlistment, or extension. 

        (1)  The additional programs are the following: 

        (a)  NCD training at vocational and technical facilities;

        (b)  Apprenticeship and other on-the-job training programs;

        (c)  Flight training;

        (d)  Correspondence and cooperative training;

        (e)  Independent study programs without concurrent resident
training (to include open circuit TV courses);

        (f)  Refresher, remedial, and deficiency courses. 

        (2)  Benefits for these programs could begin effective October
1, 1990, or the date the person met the obligated service requirement,
whichever is later.  Restrictions on open circuit TV courses were
removed effective October 9, 1996.  See paragraph 3.04d for procedures
for cases involving expansion of benefits.

        **c.  Bachelor\'s Degree Limitations**

*NOTE:  The provisions of this subparagraph do not apply to reservists
in graduate training.  Effective November 30, 1993, bachelor\'s degree
limitations on chapter 1606 benefits were removed for this training. 
(See subpar. j.)*

        (1)  Before October 1, 1990, a reservist who had a bachelor\'s
degree or its equivalent was not eligible for chapter 1606 benefits. 
DoD determines the \"equivalent\" of a bachelor\'s degree. 

        (2)  Effective October 1, 1990, claimants with bachelor\'s
degrees could become eligible for benefits by enlisting, reenlisting, or
extending their Selected Reserve commitment on or after October 1, 1990,
to have 6 years of obligated service remaining after they sign an
enlistment, reenlistment, or extension.  If a claimant received a
bachelor\'s degree before October 1, 1990, basic eligibility could not
have been established before October 1, 1990.  Other claimants may have
had basic eligibility, but lost their eligibility when they received a
degree.  See paragraph 3.04d for procedures for these cases.

**       ** **d.  Foreign Training**.  Approved programs may be pursued
at IHLs within and outside the United States.

        **e.  Programs Not Approved**.  (See pt III, par. 7.03.)

        **f.  Reserved.**

        **g.  Tutorial Assistance**.  Under Public Law 102-568, a
reservist could receive chapter 1606 benefits for tutoring received on
or after October 29, 1992.  Procedures for paying tutorial assistance in
the chapter 1606 program are contained in part III, chapter 10.

        **h.  Work Study**.  Effective May 1, 1990, reservists eligible
for chapter 1606 and training at the 3/4 time or more rate could become
eligible for work-study allowance.  Reservists may perform services at
DoD, Coast Guard, National Guard facilities as well as work-study sites
approved for other education programs.  Duties at DoD, Coast Guard, or
National Guard facilities must relate directly to the administration of
chapter 1606.

**       ** **i.  Graduate Level Training. ** Effective November 30,
1993, any member of the Selected Reserve eligible for chapter 1606
benefits became eligible for graduate level training.  Unlike the
expanded benefits mentioned in [subparagraph b](#109b) above, a new
6-year contract is not necessary for graduate level training.

        (1)  A reservist who was never eligible for benefits because of
having already attained a bachelor\'s degree could become eligible for
graduate level training only with an eligibility date of November 30,
1993.  This applies only if the reservist met all other eligibility
requirements and would have been eligible from an earlier date if not
for the bachelor\'s degree.  If the reservist did not meet all other
eligibility requirements until after November 30, 1993, the reservist\'s
date of eligibility would be the date that all eligibility requirements
were met and eligibility would be for all benefits, not graduate
training only.

        (2)  A reservist who was previously eligible and whose
eligibility terminated with the attainment of a bachelor\'s degree, and
who did not execute a new 6-year contract on or after October 1, 1990,
became eligible for graduate level training only, effective November 30,
1993.  These reservists retained their original eligibility date,
provided they did not separate from active drilling status for a period
of one year or more since eligibility terminated. 

Go to Top

[]{#110 .anchor}**1.10 MONTHLY RATES ([38 CFR
21.7636](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7636.doc))\
(Change 20, July 14, 2005)**

        **a.  Basic Rates.**  Current and historic chapter 1606 rates
are shown in [appendix A](#A).  \[Rates are\] adjusted on October 1 of
each year based on changes in the Consumer Price Index. (See ch. 4,
subch. IV.)

        **b.  Kickers.**  An eligible reservist with a selected job
skill or in a critical unit can also receive an additional amount
commonly called a kicker.  Kickers are payable at the service
department\'s discretion.  Kickers are payable as an additional amount
and are payable only for as long as the person remains in the position
or unit for which the kicker is awarded.  A person can lose eligibility
for a kicker but retain basic eligibility.  The kicker is not payable
independently from the basic benefit.  The service department will
determine the kicker payable and will notify VA of the amount.  VA will
compute the monthly kicker based on this information. 

        (1)  Eligibility for the chapter 1606 kicker is suspended on the
date that the reservist voluntarily departs the position or unit for
which he or she received the kicker, if the reservist departs during the
6-year obligation period required for the kicker.  If the reservist
remains in a non-kicker position, only the kicker payments are
suspended. 

        (2)  Eligibility for the chapter 1606 kicker is resumed if the
reservist returns to the same Reserve Component in a critical specialty,
skill, and or critical unit for which the kicker was granted.  If the
reservist returns to a different specialty, skill, component or unit
than the kicker that was originally granted is not paid.

\[*NOTE:  With three exceptions, the chapter 1606 kicker can also be
included in chapter 30 and chapter 1607 benefit payments to those
members who maintain eligibility to chapter 1606 and/or chapter 30. 
Members receiving chapter 1607 payments must continue serving in the
component that qualified them for chapter 1607 benefits.  See RPO Letter
22-04-25 for details.*\] 

Go to Top

[]{#111 .anchor}**1.11 PROCESSING OVERVIEW\
(Change 20, July 14, 2005)**

        **a.**  The service departments submit eligibility data to
Defense Manpower Data Center *(*DMDC) in electronic form.

        **b.**  The service department issues a Notice of Basic
Eligibility (NOBE), DD Form 2384, Selected Reserve Educational
Assistance Program (GI Bill) Notice of Basic Eligibility, to each
reservist who met the basic eligibility requirements before December 31,
1991.  Persons who met the basic eligibility requirements on
December 31, 1991, or later will be issued DD Form 2384-1, a revised
version of the NOBE.  VA will accept either form for any period (see
[par. 1.03a](#103a)).  Submission of this notice by the claimant to VA
is not required.

        **c.**  Reservists file claims for educational assistance with
VA on VA Form 22-1990, Application for VA Education Benefits.

        **d.**  Periodic (monthly) verifications of pursuit and
certifications of attendance are required for chapter 1606 ([see 38 CFR
21.7654](http://www.warms.vba.va.gov/REGS/38CFR/BOOKG/PART21/s21_7654.doc)).

        **e.**  VA maintains a copy of the DMDC database at the Benefits
Delivery Center in Hines, Illinois.  This database contains eligibility
information for all persons who have been members of the Selected
Reserve since July 1, 1985.  VA uses these records to determine the
eligibility status of a claimant.

        **f.**  Each week, DMDC provides updated changes and additions
to this database.

*NOTE:  Unless a record on the database was coded as eligible, DoD will
not submit a change when the claimant becomes ineligible.  Therefore, if
VA awards benefits based on a NOBE, without an eligible DoD record, VA
will not be notified if the claimant\'s eligibility terminates.*

        **g.**  These changes are compared to VA benefit master records
and result in the generation of Notice of Exception (NOE) messages to
field stations if the change in status would result in a change in
eligibility.  \[The NOE messages are temporarily being suppressed.\]

        **h.**  Claims examiners will adjust awards based on the NOE
messages issued from the changes to the chapter 1606 database. 

Go to Top

[]{#112 .anchor}**1.12 RESERVED\
(Change 20, July 14, 2005)**

Go to Top

[]{#113 .anchor}**1.13 OTHER CHAPTER 1606 PROCEDURES\
(Change 20, July 14, 2005)**

        Chapter 1606 has many features in common with other benefit
programs described in this manual.  The following is a list of M22-4
chapters which contain substantive rules that apply to chapter 1606.  In
certain instances, the rules are not exactly the same for chapter 1606
as for the other programs.  These differences are explained in the
indicated chapters.

        **a.  Part III Chapters**

        (1)  Administrative Procedures -- Chapter 2.  Note that chapter
1606 has unique appeal provisions.

        (2)  Processing Applications for Benefits -- Chapter 3. 

        (3)  Delimiting Date Extensions -- Chapter 4. 

        (4) ** **Counseling -- Chapter 5.

        (5)  Programs of Education -- Chapter 6. 

        (6)  Restrictions on Training -- Chapter 7. 

        (7)  Periodic Education Certifications -- Chapter 8.

        (8)  Certificates of Eligibility and Disallowances -- Chapter
9. 

        (9)  Tutorial Assistance -- Chapter 10.

        **b.  Part IV Chapters**

        (1)  Enrollment Certifications -- Chapter 1. 

        (2)  Flight and Correspondence Training -- Chapter 2.

        (3)  Duplication of Benefits -- Chapter 3.

        (4)  Change of Program -- Chapter 4.

        (5)  Unsatisfactory Progress or Conduct -- Chapter 5.

        (6)  Measurement (Standard College Degree) -- Chapter 6.

        (7)  Other Measurement Issues -- Chapter 7.

        (8)  Interval Payment -- Chapter 8.

        (9)  Advance and Special Payments -- Chapter 10. 

        (10)  Reduction and Termination -- Chapter 11.

        (11)  Miscellaneous Award Issues -- Chapter 13. 

Go to Top

[]{#A .anchor}**\[APPENDIX A. CHAPTER 1606 RATES**

**(Change 21, April 19, 2006)\
**

**This appendix provides the rate tables for chapter 1606 benefits. **

**Chapter 1606 Current Rate Table**

  ---------------------------- ------------------------------------------
  **TYPE OF TRAINING**         **\[Cost of Living 10/1/2005\]**

  **INSTITUTIONAL**            **Monthly Rates in Dollars**

  FULL                         \$297.00

  THREE-QUARTER                \$222.00

  ONE-HALF                     \$147.00

  LESS THAN HALF-TIME           \$ 74.25

  COOPERATIVE (Full Time Only)  \$297.00

  **APPRENTICESHIP /           **Rates are proportionally reduced if less
  ON-THE-JOB**                 than 120 hours is worked per month**

  First 6 Months               \$252.45

  Second 6 Months              \$193.05

  Remainder of Program         \$133.65

  **[\[CORRESPONDENCE          
  TRAINING]{.underline}**:     
  Reimbursed at 55% of the     
  established charge for the   
  number of lessons completed  
  by the student and serviced  
  by the school.  Entitlement  
  is charged at the rate of    
  one month for each \$297.00  
  paid                         

  **[FLIGHT                    
  TRAINING]{.underline}**:     
  Reimbursed at 60% of         
  established charge for a     
  course. Entitlement is       
  charged based at the rate of 
  one month for each \$297.00  
  paid.\]                      
  ---------------------------- ------------------------------------------

**Chapter 1606 Historic Rate Tables\
\
CHAPTER 1606 RATES EFFECTIVE 10/1/2004**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/2004**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$288.00

  THREE-QUARTER                                             \$216.00

  ONE-HALF                                                  \$143.00

  QUARTER                                                     \$71.75

  COOPERATIVE (Full Time Only)                              \$288.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$216.00

  Second 6 Months                                           \$158.40

  Remainder of Program                                      \$100.80

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$288.00 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$288.00 paid.\]  
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/2003**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/2003**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$282.00

  THREE-QUARTER                                             \$212.00

  ONE-HALF                                                  \$140.00

  QUARTER                                                     \$70.50

  COOPERATIVE (Full Time Only)                              \$282.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                             \$211.50

  Second 6 Months                                            \$155.10

  Remainder of Program                                         \$98.70

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$282.00 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$282.00 paid.\]  
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/2002**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/2002**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$276.00

  THREE-QUARTER                                             \$207.00

  ONE-HALF                                                  \$137.00

  QUARTER                                                     \$69.00

  COOPERATIVE (Full Time Only)                              \$276.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$207.00

  Second 6 Months                                           \$151.80

  Remainder of Program                                         \$96.60

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$276.00 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$276.00 paid.\]  
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/2001**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/01**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                        \$272.00

  THREE-QUARTER                                               \$204.00

  ONE-HALF                                                    \$135.00

  QUARTER                                                       \$68.00

  COOPERATIVE (Full Time Only)                                  \$272.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$204.00

  Second 6 Months                                           \$149.60

  Remainder of Program                                        \$95.20

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$272.00 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$272.00 paid.\]  
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/2000**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/2000**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                        \$263.00

  THREE-QUARTER                                               \$197.00

  ONE-HALF                                                    \$131.00

  QUARTER                                                       \$65.75

  COOPERATIVE (Full Time Only)                                 \$263.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$197.25

  Second 6 Months                                           \$144.65

  Remainder of Program                                        \$92.05

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$263.00 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$263.00 paid.\]  
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/1999**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/1999**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                        \$255.00

  THREE-QUARTER                                               \$191.00

  ONE-HALF                                                    \$127.00

  QUARTER                                                       \$63.75

  COOPERATIVE (Full Time Only)                                  \$255.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                              \$191.25

  Second 6 Months                                             \$140.25

  Remainder of Program                                          \$89.25

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$255.00 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$255.00 paid.\]  
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/1998**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **PL 105-178
                                                            10/1/1998**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                          \$251.00

  THREE-QUARTER                                                 \$188.00

  ONE-HALF                                                      \$125.00

  QUARTER                                                        \$62.75

  COOPERATIVE (Full Time Only)                                   \$251.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                                \$188.25

  Second 6 Months                                               \$138.05

  Remainder of Program                                            \$87.85

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$251.00 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$251.00 paid.\]  
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/1997**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/1997**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                          \$208.93

  THREE-QUARTER                                                 \$156.70

  ONE-HALF                                                      \$104.47

  QUARTER                                                        \$52.23

  COOPERATIVE (Full Time Only)                                   \$208.93

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                                \$156.70

  Second 6 Months                                               \$114.91

  Remainder of Program                                            \$73.13

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$208.93 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$208.93 paid.\]  
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/9/1996**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/9/1996**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$203.24

  THREE-QUARTER                                             \$152.43

  ONE-HALF                                                  \$101.62

  QUARTER                                                    \$ 50.81

  COOPERATIVE (Full Time Only) (see footnote **A)**         \$203.24

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$152.43

  Second 6 Months                                           \$111.78

  Remainder of Program                                        \$71.13

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$203.24 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each \$203.24 paid.\]  
  --------------------------------------------------------- ----------------

**      [Footnote A:]{.underline}** Special cooperative rates were
eliminated effective 10-9-96.\
      Pay cooperative training at the institutional rate effective
10-9-96.

**CHAPTER 1606 RATES EFFECTIVE 10/1/1996**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/1996**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                       \$203.24

  THREE-QUARTER                                              \$152.43

  ONE-HALF                                                   \$101.62

  QUARTER                                                      \$50.81

  COOPERATIVE (Full Time Only)                                \$162.59

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$152.43

  Second 6 Months                                           \$111.78

  Remainder of Program                                        \$71.13

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each  \$203.24 paid                                   

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each  \$203.24 paid.\] 
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/1995**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **Cost of Living
                                                            10/1/1995**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$197.90

  THREE-QUARTER                                             \$148.42

  ONE-HALF                                                    \$98.95

  QUARTER                                                     \$49.47

  COOPERATIVE (Full Time Only)                               \$158.32

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$148.42

  Second 6 Months                                           \$108.84

  Remainder of Program                                        \$69.26

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each \$197.90 paid                                    

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each  \$197.90 paid.\] 
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/1994**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **PL 103-66
                                                            10/1/1994**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$192.32

  THREE-QUARTER                                             \$144.74

  ONE-HALF                                                   \$ 96.16

  QUARTER                                                    \$ 48.08

  COOPERATIVE (Full Time Only)                                \$153.86

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                             \$144.24

  Second 6 Months                                            \$105.78

  Remainder of Program                                        \$67.31

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each  \$192.32 paid                                   

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each  \$192.32 paid.\] 
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 4/1/1993**\
                              

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **PL 102-568 -
                                                            4/1/1993**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$190.00

  THREE-QUARTER                                             \$143.00

  ONE-HALF                                                    \$95.00

  QUARTER                                                     \$48.00

  COOPERATIVE (Full Time Only)                              \$152.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$142.50

  Second 6 Months                                           \$104.50

  Remainder of Program                                        \$66.50

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each  \$190.00 paid                                   

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each  \$190.00 paid.\] 
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/1991**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **PL 102-568 -
                                                            10/1/1991**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$170.00

  THREE-QUARTER                                             \$128.00

  ONE-HALF                                                    \$85.00

  QUARTER                                                     \$43.00

  COOPERATIVE (Full Time Only)                              \$136.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$127.50

  Second 6 Months                                             \$93.50

  Remainder of Program                                        \$59.50

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each  \$170.00 paid                                   

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each  \$170.00 paid.\] 
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 10/1/1990**

  --------------------------------------------------------- ----------------
  **TYPE OF TRAINING**                                      **PL 101-189 -
                                                            10/1/1990**

  **INSTITUTIONAL**                                         **Monthly Rates
                                                            in Dollars**

  FULL                                                      \$140.00

  THREE-QUARTER                                             \$105.00

  ONE-HALF                                                   \$ 70.00

  QUARTER                                                     \$35.00

  COOPERATIVE (Full Time Only)                                \$112.00

  **APPRENTICESHIP /\                                       **Rates are
  ON-THE-JOB**                                              proportionally
                                                            reduced if less
                                                            than 120 hours
                                                            is worked**

  First 6 Months                                            \$105.00

  Second 6 Months                                             \$77.00

  Remainder of Program                                        \$49.00

  **[\[CORRESPONDENCE TRAINING]{.underline}**: Reimbursed   
  at 55% of the established charge for the number of        
  lessons completed by the student and serviced by the      
  school.  Entitlement is charged at the rate of one month  
  for each  \$140.00 paid                                   

  **[FLIGHT TRAINING]{.underline}**: Reimbursed at 60% of   
  established charge for a course. Entitlement is charged   
  based at the rate of one month for each  \$140.00 paid.\] 
  --------------------------------------------------------- ----------------

**CHAPTER 1606 RATES EFFECTIVE 07/1/1985**

  ----------------------------------------- -----------------------------
  **TYPE OF TRAINING**                      **PL 98-525 - 7/1/1985**

  **INSTITUTIONAL**                         **Monthly Rates in Dollars**

  FULL                                      \$140.00

  THREE-QUARTER                             \$105.00

  ONE-HALF                                   \$ 70.00

  QUARTER (see footnote **a)**                \$35.00

  COOPERATIVE (Full Time Only) (see         N/A
  footnote b)                               

  **APPRENTICESHIP /\                       **Rates are proportionally
  ON-THE-JOB**                              reduced if less than 120
                                            hours is worked**

  First 6 Months                            N/A

  Second 6 Months                           N/A

  Remainder of Program                      N/A

  **CORRESPONDENCE**                        NOT PAYABLE

  **FLIGHT TRAINING**                       NOT PAYABLE
  ----------------------------------------- -----------------------------

     [**Footnote** **A**:]{.underline} Quarter time training is only
payable for enrollments on or after 11-18-1988.\
\
     **[Footnote B]{.underline}:**Cooperative training for chapter 1606
did not begin until 10-1-1988.

**\
                                                         **

**APPENDIX B. CHAPTER 1606 KICKER RATE TABLE\
(Change 21, April 19, 2006)**

**This appendix provides the kicker table for chapter 1606 benefits.**

[]{#B .anchor}**Chapter 1606 Kicker Rate Table \]**

  -------------------------- --------------------------------------------
  **LEVEL**                  **KICKER RATE**

  High                       \$350.00

  Medium                     \$200.00

  Low                        \$100.00
  -------------------------- --------------------------------------------