**§21.3045 Entitlement charges.**

VA will make charges against an eligible person's entitlement only when
required by this section. Charges for institutional training will be
based upon the principle that an eligible person who trains full time
for 1 day should be charged 1 day of entitlement.

\(a\) *No entitlement charge for eligible persons receiving tutorial
assistance.* VA will make no charge against the entitlement of an
eligible person for tutorial assistance received in accordance with
§21.4236. (Authority: 38 U.S.C. 3492, 3533(b))

\(b\) *Entitlement charges for elementary and secondary education.*

\(1\) When an eligible spouse or surviving spouse is pursuing a course
leading to a secondary school diploma or an equivalency certificate as
described in §21.3344, there are two sets of circumstances which will
always result in VA's making no charge against his or her entitlement.
These are as follows:

\(i\) Either the eligible spouse or surviving spouse completed training
during the period beginning on October 1, 1980, and ending on August 14,
1989, and remained continuously enrolled from October 1, 1980, through
the time the spouse or surviving spouse either completed training or
August 14, 1989, whichever is earlier; or

\(ii\) The eligible spouse or surviving spouse completed training before
August 15, 1989, and received educational assistance based upon the
tuition and fees charged for the course.

\(2\) When an eligible spouse or surviving spouse is pursuing a course
leading to a secondary school diploma or an equivalency certificate as
described in §21.3344, the following circumstances will always result in
VA's making a charge against his or her entitlement unless the
provisions of paragraph (d) of this section would exempt the spouse or
surviving spouse from receiving an entitlement charge.

\(i\) The spouse or surviving spouse elects to receive dependents'
educational assistance at the rate described in §21.3131(a), and

\(ii\) Either was not pursuing a course leading to a secondary school
diploma or equivalency certificate on October 1, 1980, or has not
remained continuously enrolled in such a course since October 1, 1980.

\(3\) When an eligible person pursues refresher, remedial or deficiency
training before August 15, 1989, the following provisions govern the
charge against the entitlement.

> \(i\) VA will not make a charge against the entitlement of an eligible
> spouse or surviving spouse.
>
> \(ii\) VA will make a charge against the entitlement of an eligible
> child.

\(4\) The following provisions apply to an eligible person for training
received after August 14, 1989. When he or she is pursuing a course
leading to a secondary school diploma or equivalency certificate or
refresher, remedial or deficiency training.

\(i\) VA will make no charge against the entitlement of an eligible
person for the first five months of full time pursuit (or its equivalent
in part-time pursuit).

\(ii\) VA will make a charge against the entitlement of an eligible
person for pursuit in excess of the pursuit described in paragraph
(b)(4)(i) unless the provisions of paragraph (d) of this section would
exempt the eligible person from receiving an entitlement charge.
(Authority: 38 U.S.C. 3511(a), 3533(a); Pub. L. 100-689, Pub. L. 102-127
(Oct. 10, 1991))

\(c\) *Other courses for which entitlement will be charged.* Except when
the requirements of paragraph (d) of this section are met, VA will make
a charge against the period of entitlement of:

\(1\) An eligible person for pursuit of a program of apprenticeship or
other on-job training;

\(2\) A spouse or surviving spouse for pursuit of a correspondence
course; or

\(3\) An eligible person for the pursuit of any course not described in
paragraph (a) or (b) of this section. (Authority: 38 U.S.C. 3534)

\(d\) *Exemption from entitlement charge*.

\(1\) VA will not make a charge against the entitlement of an eligible
person for the pursuit of any course or courses when the requirements of
paragraphs (d)(1)(i) and (ii) of this section are met, by VA finding
that the eligible person:

\(i\) Had to discontinue pursuit of the course or courses as a result of
being:

\(A\) Ordered, in connection with the Persian Gulf War by orders dated
before September 11, 2001, to serve on active duty under 10 U.S.C. 688,
12301(a), 12301(d), 12301(g), 12302, or 12304, or under former 10 U.S.C.
672(a), 672(d), 672(g), 673, or 673(b) (redesignated effective December
1, 1994, as 10 U.S.C. 12301(a), 12301(d), 12301(g), 12302, and 12304,
respectively);

\(B\) Ordered, by orders dated after September 10, 2001, to serve on
active duty under 10 U.S.C. 688, 12301(a), 12301(d), 12301(g), 12302, or
12304; or

\(C\) Involuntarily ordered, by orders dated after September 10, 2001,
to full-time National Guard duty under 32 U.S.C. 502(f).

\(ii\) Failed to receive credit or lost training time toward completion
of the eligible person's approved educational, professional or
vocational objective as a result of having to discontinue for a reason
described in paragraph (d)(1)(i) of this section, his or her course
pursuit.

\(2\) The period for which VA will not make a charge against entitlement
shall not exceed the portion of the period of enrollment in the course
or courses for which the eligible person failed to received credit or
with respect to which the eligible person lost training time.
(Authority: 38 U.S.C. 3511(a)(2); sec. 103(e), Pub. L. 107-103, 115
Stat. 980)

\(e\) *Determining entitlement charge.* The provisions of this paragraph
apply to all courses except those courses for which VA is not making a
charge against the eligible person's entitlement, apprenticeship or
other on-job training, correspondence courses, and courses offered
solely through independent study.

\(1\) After making any adjustments required by paragraph (e)(3) of this
section VA will make a charge against entitlement:

\(i\) On the basis of total elapsed time (one day for each day of
pursuit) if the eligible person is pursuing the program of education on
a full-time basis,

\(ii\) On the basis of a proportionate rate of elapsed time, if the
eligible person is pursuing a program of education on a three-quarter,
one-half or less than one-half time basis. For the purpose of this
computation, training time which is less that one-half, but more than
one-quarter time, will be treated as though it were one-quarter time
training.

\(2\) VA will compute elapsed time from the commencing date of
enrollment to date of discontinuance. If the eligible person changes his
or her training time after the commencing date of enrollment, VA will:

\(i\) Divide the enrollment period into separate periods of time during
which the eligible person's training time remains constant; and

\(ii\) Compute the elapsed time separately for each time period.

\(3\) An eligible person may concurrently enroll in refresher, remedial
or deficiency training for which paragraph (b)(3) or (b)(4)(i) of this
section requires no charge against entitlement and in a course or
courses for which paragraph (b)(2) or (b)(4)(ii) or (c) of this section
requires a charge against entitlement. When this occurs, VA will charge
entitlement for the concurrent enrollment based only on pursuit of the
courses described in paragraph (b)(2) or (b)(4)(ii) or (c) of this
section, measured in accordance with §§21.4270 through 21.4275 of this
part, as appropriate. (Authority: 38 U.S.C. 3533(a); Pub. L. 100-689)

\(f\) *Entitlement charge for pursuit solely by independent study*. For
enrollments in terms, quarters, or semesters that begin after June 30,
1993, VA will make charges against the entitlement of an eligible person
in the manner prescribed by paragraph (e) of this section, if he or she
is pursuing a program of education solely by independent study. For all
other enrollments where the eligible person is pursuing a program of
education solely by independent study, the computation will be made as
though the eligible person's training were one-quarter time. (Authority:
38 U.S.C. 3482(b), 3532(a))

\(g\) *Entitlement charge for apprenticeship or other on-job training.*
The charge against entitlement for pursuit of apprenticeship or other
on-job training program shall be 1 month for each month of training
assistance allowance paid to the eligible person for the program. If
there is a reduction in the eligible person's monthly training
assistance allowance due to his or her failure to complete 120 hours of
training during the month, VA will combine the portions of 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)

\[49 FR 48692, Dec. 14, 1984, as amended at 55 FR 28024, July 9, 1990;
57 FR 29799, July 7, 1992; 58 FR 26240, May 3, 1993; 61 FR 26109, May
24, 1996; 62 FR 55760, Oct. 28, 1997; 63 FR 67778, Dec. 9, 1998; 66 FR
32227, June 14, 2001; 68 FR 34320, June 9, 2003; 69 FR 62207, Oct. 25,
2004; 73 FR 2423, Jan. 15, 2008\]

**Supplement *Highlights* references**: 6(3), 27(1), 41(1), 55(2),
62(1), 66(2), 77(2).