Title 38—Pensions, Bonuses, and Veterans' Relief--Volume 1
PART 21—VETERAN READINESS AND EMPLOYMENT AND EDUCATION
§ 21.9695   Overpayments.
(a) Prevention of overpayments. In administering educational assistance payable under 38 U.S.C. chapter 33, VA will apply the provisions of §§ 21.4008 and 21.4009 to eligible individuals and, when appropriate, to educational institutions.
(b) Liability for overpayments. (1) An overpayment of educational assistance paid to an eligible individual constitutes a liability of that individual unless—
(i) The overpayment was waived as provided in §§ 1.957 and 1.962 of this chapter, or
(ii) The overpayment results from an administrative error or an error in judgment. See § 21.9635(r).
(2) An overpayment of educational assistance paid to the educational institution on behalf of an eligible individual constitutes a liability of the individual unless the individual never attended the term, quarter, or semester certified by the educational institution. If the individual never attended the term, quarter, or semester certified by the educational institution, the institution must return to VA all educational assistance received under the provisions of 38 U.S.C. chapter 33 on behalf of the individual for such term, quarter, or semester.
(3)(i) The amount of the overpayment of educational assistance paid to the eligible individual, or paid to the educational institution on behalf of the individual, constitutes a liability of the educational institution if:
(A) VA determines that the overpayment is the result of willful or negligent false certification by the educational institution, or willful or negligent failure to certify excessive absences from a course, discontinuance of a course, or interruption of a course by the eligible individual.
(B) The student never attends classes for which he or she was certified (regardless of the reason for non-attendance);
(C) The student completely withdraws from all courses on or before the first day of the certified period of enrollment;
(D) The student dies during the term (see §§ 21.9635(a)(2) and 21.9636(a)(2));
(E) The educational institution receives a payment for the wrong student;
(F) The educational institution receives a duplicate payment for a student;
(G) The educational institution receives a payment in excess of the amount certified to VA on the enrollment certification; or
(H) The educational institution submits an amended enrollment certification to correctly report a reduced amount of tuition and fee charges, reduced Yellow Ribbon Program contributions, or reduced amounts for both tuition and fees and Yellow Ribbon Program contributions.
(ii) In determining whether an overpayment resulting from the actions listed in paragraph (b)(3)(i) of this section should be recovered from an educational institution, VA will apply the provisions of § 21.4009 (except paragraph (a)(1)) to overpayments of educational assistance under 38 U.S.C. chapter 33.
(4) VA will determine the amount of an overpayment as follows—
(i) For an individual who does not complete one or more courses in the certified period of enrollment for which he or she received payment, and who does not substantiate mitigating circumstances for not completing such course or courses, VA will establish an overpayment equal to the amount of educational assistance paid for the course or courses not completed during that certified period of enrollment.
(ii) For an individual who does not complete one or more courses in the certified period of enrollment, but who substantiates mitigating circumstances for not completing such course or courses, VA will prorate the amount of educational assistance to which he or she is entitled.
(A) VA will determine the prorated amount of the tuition and fees by dividing the amount the individual was paid for the course or courses not completed by the number of days in the certified enrollment period, and multiplying the result by the number of days from the beginning date of the enrollment period through the last date of attendance. The result of this calculation will equal the amount the individual is due. The difference between the amount of educational assistance paid and the amount of educational assistance the individual is due for the course or courses not completed will be established as an overpayment.
(B) VA will determine the prorated amount of the monthly housing allowance by determining the amount the individual was entitled to while enrolled and subtracting that amount from the total amount paid. The difference between the amount of the monthly housing allowance paid and the amount of the monthly housing allowance the individual is due will be established as an overpayment.
(C) Individuals who have substantiated mitigating circumstances will not be charged an overpayment for the lump sum payment for books, supplies, equipment, and other educational costs (“book stipend”).
(c) Authority. (1) Paragraph (a) of this section issued under the authority of 38 U.S.C. 3034(a), 3323(a), 3690(b);
(2) Paragraphs (b) through (b)(3)(ii) of this section issued under the authority of 38 U.S.C. 3034(a), 3323(a), 3685; and
(3) Paragraphs (b)(3)(iii) through (b)(4) of this section issued under the authority of 38 U.S.C. 3034(a), 3323, 3685, 5302.
§ 21.9700   Yellow Ribbon Program.
(a) Establishment. The “Yellow Ribbon G.I. Education Enhancement Program”, known as the “Yellow Ribbon Program,” permits an institution of higher learning (IHL), at the IHL's option, to enter into an agreement with VA to allow the two parties to provide matching funds to cover a portion of the outstanding amount of tuition and fees not covered under paragraphs (b) and (c) of § 21.9640 and paragraphs (b)(1) and (2) of § 21.9641.
(b) Eligible individuals. This program is only available to individuals entitled to the 100-percent educational assistance rate (based on service requirements as shown in § 21.9640(a) or § 21.9641(a), whichever is applicable) or to their designated dependents using entitlement transferred under § 21.9570 or § 21.9571, whichever is applicable, or effective August 1, 2018, to individuals using Fry Scholarship entitlement under § 21.9520(d) who are pursuing training at an eligible IHL.
(c) Eligible IHLs. This program is only available at IHLs located in the United States or at a branch of such IHL that is located outside the United States.
(d) Agreements. VA will enter into an agreement with an eligible IHL located in the United States seeking to participate in the Yellow Ribbon Program based on a general agreement format developed by VA in which the IHL must agree to—
(1) Provide contributions to eligible individuals who apply for such program at that institution (in a manner prescribed by the institution) on a first-come-first-served basis, regardless of the rate at which the individual is pursuing training ( i.e. , full-time versus less than full-time), during the academic year;
(2) Provide contributions during the current academic year and all subsequent academic years in which the IHL participates in the Yellow Ribbon Program and the student maintains satisfactory progress, conduct, and attendance according to the regularly prescribed standards of the institution;
(3) Limit contributions made on behalf of a participant to funds under the unrestricted control of the IHL (e.g., a scholarship sent directly to an IHL on behalf of an individual or specific group of individuals from a third party may not be included in Yellow Ribbon Program contributions). Funds received directly or indirectly from Federal sources may not be counted toward contributions;
(4) State the maximum number of individuals for whom contributions will be made during the academic year;
(5) State the manner (whether by direct grant, scholarship, or otherwise) contributions will be made under the Yellow Ribbon Program;
(6) State the maximum dollar amount of contributions that may be provided on behalf of any particular individual during the academic year regardless of the rate at which the individual is pursuing training. IHLs may specify different contributions amounts—
(i) Based on student status ( i.e. , certificate, undergraduate, graduate, doctoral), or
(ii) For each subelement of the institution ( i.e. , college or professional school). The maximum amount specified for each subelement of the IHL will apply to all programs and disciplines offered under such subelement.
(7) Provide the maximum amount of contributions payable toward the unmet tuition and fees to all participating individuals during each term, quarter, or semester the individual is enrolled if the IHL's total contribution toward the individual's unmet tuition and fees for the term, quarter, or semester, do not exceed the maximum dollar amount payable during the academic year as specified in paragraph (d)(6) of this section.
(e) Centralized Agreements. IHLs with multiple campuses may enter into a single Yellow Ribbon Program Agreement if all participating branches and extensions—
(1) Are listed in the agreement;
(2) Are subject to the authority of the authorizing official signing the Yellow Ribbon Program Agreement; and
(3) Have a certifying official or other employee who meets the requirements of § 21.4266(f)(3)(ii) and who has access to the terms of the Yellow Ribbon Program Agreement.
(f) Matching Contributions. VA will match each dollar provided by the IHL on behalf of an individual; however, the combined amount of contributions under the Yellow Ribbon Program may not exceed the remaining amount of tuition and fees not covered under paragraphs (b) and (c) of § 21.9640 and paragraphs (b)(1) and (2) of § 21.9641.
(g) Outreach. The most current list of colleges and universities participating in the Yellow Ribbon Program will be available at VA's GI Bill Web site at http://www.gibill.va.gov. The list will include specific information on each IHL's agreement with VA.
§ 21.9710   Pursuit.
Except for an eligible individual seeking tuition assistance Top-Up or reimbursement for taking an approved national test for admission, a national test for credit, or a licensing or certification test, the individual's educational assistance depends upon his or her pursuit of a program of education.
§ 21.9715   Advance payment certification.
All certifications required by this section shall be in a form specified by the Secretary and shall contain such information as specified by the Secretary. An advance payment under this chapter is only permissible to an individual whose rate of pursuit is greater than half-time, and who is entitled to the monthly housing allowance as provided in § 21.9640(b)(1)(ii), (b)(2)(ii), or § 21.9641(c), whichever is applicable.
(a) Certification needed before an advance payment can be made. In order for an individual to receive an advance payment of the monthly housing allowance, an application or other document must be signed by the individual or the enrollment certification must be signed by an authorized official of the educational institution.
(b) Advance payments. All verifications required by this paragraph shall be in a form specified by the Secretary and shall contain such information as specified by the Secretary.
(1) For each eligible individual receiving an advance payment, the educational institution must—
(i) Verify enrollment for the individual; and
(ii) Verify the delivery of the advance payment check to the individual.
(2) Once the educational institution has initially verified the enrollment of the individual, the individual, not the educational institution, must make subsequent verifications in order to release further payment for that enrollment as provided in § 21.9735.
§ 21.9720   Certification of enrollment—for provisions effective before August 1, 2011.
For training pursued during the period beginning August 1, 2009, and ending July 31, 2011, an IHL must certify an eligible individual's enrollment before he or she may receive educational assistance, except as stated in § 21.9680.
(a) Institutions of higher learning must certify most enrollments. VA does not, as a condition of payment of tuition assistance top-up or advance payment, require institutions of higher learning to certify the enrollments of eligible individuals who either are seeking tuition assistance top-up or, in the cases described in § 21.9715, are seeking an advance payment. VA does not require organizations or entities offering a licensing or certification test to certify that the eligible individual took the test. In all other cases, the institution of higher learning must certify the eligible individual's enrollment before he or she may receive educational assistance. This certification must be in a form specified by the Secretary and contain such information as specified by the Secretary.
(b) Length of the enrollment period covered by the enrollment certification. (1) Institutions of higher learning that offer courses on a term, quarter, or semester basis will report enrollment for the term, quarter, semester, ordinary school year, or ordinary school year plus summer term. If the certification covers two or more terms, the institution of higher learning will report each term, quarter, or semester separately.
(2) Institutions of higher learning organized on a year-round basis that do not offer courses on a term, quarter, or semester basis will report enrollment for the length of the course. The certification will include a report of the dates during which the institution of higher learning closes for any intervals designated in its approval data as breaks between school years.
(3) When an eligible individual enrolls in a distance learning program leading to a standard college degree, the institution of higher learning's certification will include—
(i) The enrollment date; and
(ii) The ending date for the period being certified. If the institution of higher learning has no prescribed maximum time for completion, the certification must include an ending date based on the educational institution's estimate for completion.
§ 21.9721   Certification of enrollment—for provisions effective after July 31, 2011.
For training pursued after July 31, 2011, an educational institution must certify an eligible individual's enrollment before he or she may receive educational assistance, except as stated in § 21.9681.
(a) Educational institutions must certify most enrollments. VA does not, as a condition of advance payment, require educational institutions to certify the enrollments of eligible individuals who are seeking an advance payment (as described in § 21.9715). VA does not require organizations or entities offering a national test for admission, a national test for credit, or a licensing or certification test to certify that the eligible individual took the test. In all other cases, the educational institution must certify the eligible individual's enrollment before he or she may receive educational assistance. This certification must be in a form specified by the Secretary and contain such information as specified by the Secretary.
(b) Length of the enrollment period covered by the enrollment certification. (1) Educational institutions that offer courses on a term, quarter, or semester basis will report enrollment for the term, quarter, semester, ordinary school year, or ordinary school year plus summer term. If the certification covers two or more terms, the educational institution will report each term, quarter, or semester separately.
(2) Educational institutions organized on a year-round basis that do not offer courses on a term, quarter, or semester basis will report enrollment for the length of the course. The certification will include a report of the dates during which the educational institution closes for any intervals designated in its approval data as breaks between school years.
(3) When an eligible individual enrolls in a distance learning program leading to a standard college degree, the institution of higher learning's certification will include—
(i) The enrollment date; and
(ii) The ending date for the period being certified. If the educational institution has no prescribed maximum time for completion, the certification must include an ending date based on the educational institution's estimate for completion.
(c) Authority. (1) Paragraph (a) of this section issued under the authority of 38 U.S.C. 3014(b), 3031, 3034(a), 3323(a), 3482(g), 3680, 3687, 3689, 5101(a); and
(2) Paragraph (b) of this section issued under the authority of 38 U.S.C. 3034(a), 3323(a), 3684.
§ 21.9725   Progress and conduct.
(a) Satisfactory pursuit of program. In order to receive payments of educational assistance under 38 U.S.C. chapter 33 for pursuit of a program of education, an individual must maintain satisfactory progress. VA will discontinue payments of educational assistance if the individual does not maintain satisfactory progress. Progress is unsatisfactory if the individual does not satisfactorily progress according to the regularly prescribed standards of the educational institution he or she is attending.
(b) Satisfactory conduct. In order to receive educational assistance for pursuit of a program of education, an individual must maintain satisfactory conduct according to the regularly prescribed standards and practices of the educational institution in which he or she is enrolled. If the individual will no longer be retained as a student or will not be readmitted as a student by the educational institution in which he or she is enrolled, VA will discontinue educational assistance, unless further development establishes that the educational institution's action is wrongfully retaliatory in nature.
(c) Satisfactory attendance. In order to receive educational assistance for pursuit of a program of education, an individual must maintain satisfactory attendance. VA will discontinue educational assistance if the individual does not maintain satisfactory attendance. Attendance is unsatisfactory if the individual does not attend according to the regularly prescribed standards of the educational institution in which he or she is enrolled.
(d) Reentrance after discontinuance. (1) An eligible individual may be reentered following discontinuance because of unsatisfactory attendance, conduct, or progress when either:
(i) The individual resumes enrollment at the same educational institution in the same program of education and the educational institution has both approved the individual's reenrollment and certified it to VA; or
(ii) VA determines that—
(A) The cause of the unsatisfactory attendance, conduct or progress has been removed, and
(B) The program that the individual now proposes to pursue is suitable to his or her aptitudes, interests, and abilities.
(2) Reentrance may be for the same program, a revised program, or an entirely different program depending on the cause of the discontinuance and the removal of that cause.
§ 21.9735   Other required reports.
VA will apply the provisions of § 21.7156 to eligible individuals and educational institutions under 38 U.S.C. chapter 33 as those provisions are applied to veterans and educational institutions under 38 U.S.C. chapter 30.
§ 21.9740   False, late, or missing reports.
(a) Eligible individual. Payments may not be based on false or misleading statements, claims or reports. VA will apply the provisions of §§ 21.4006 and 21.4007 to any individual who submits false or misleading claims, statements, or reports in connection with benefits payable under 38 U.S.C. chapter 33 in the same manner as they are applied to people who make similar false or misleading claims for benefits payable under 38 U.S.C. chapter 36.
(b) Institution of higher learning. (1) VA may hold an educational institution liable for overpayments that result from the educational institution's willful or negligent failure to report excessive absences from a course, discontinuance of a course, or interruption of a course by an individual or from willful or negligent false certification by the educational institution. See § 21.9695(b).
(2) If an educational institution willfully and knowingly submits a false report or certification, VA may disapprove that educational institution's programs of education for further enrollments and may discontinue educational assistance to eligible individuals already enrolled. In doing so, VA will apply §§ 21.4210 through 21.4216.
§ 21.9745   Reporting fee.
In determining the amount of the reporting fee payable to institutions of higher learning for furnishing required reports, VA will apply the provisions of § 21.4206 in the same manner as they are applied in the administration of 38 U.S.C. chapter 36.
§ 21.9750   Course measurement.
VA will calculate an individual's rate of pursuit of an approved program of education during the individual's period of enrollment in accordance with this section. For the purpose of this chapter, VA will consider any rate of pursuit higher than 50 percent to be more than one-half time training.
(a) Measurement of courses reported in credit hours. If the courses are measured in credit hours, then the number of credit hours the individual is taking in a term, quarter, or semester will be divided by the minimum number of credit hours considered to be full-time pursuit in a term, quarter, or semester at the educational institution as provided in paragraph (c) of this section. The resulting percentage will be the individual's rate of pursuit.
(b) Measurement of courses reported in clock hours at IHLs. (1) If the courses pursued at an IHL are measured in clock hours, VA will convert the clock hours to equivalent credit hours by—
(i) Adding the total number of clock hours pursued during the term, quarter or semester;
(ii) Dividing the sum of paragraph (b)(1) of this section by the total number of weeks in the term; and
(iii) Multiplying the result of paragraph (b)(2) of this section rounded to the nearest 100th by—
(A) If the educational institution measures courses using both credit and clock hours, the decimal determined by dividing the number of credit hours considered full-time at the educational institution by the number of clock hours considered full-time at the educational institution.
(B) If the educational institution only measures courses using clock hours, the decimal determined by dividing 14 credit hours by the number of clock hours considered full-time at the educational institution.
(2) Divide the result of paragraph (b)(1) rounded to the nearest hundredth by the minimum number of credit hours considered to be full-time pursuit in a term, quarter, or semester as provided in paragraph (c) of this section. The resulting percentage will be the individual's rate of pursuit.
(c) Fourteen credit hours are full-time unless the institution of higher learning certifies that all undergraduate students enrolled for 13 credit hours, or for 12 credit hours, are charged full-time tuition or are considered full-time for other administrative purposes.
(d) High school courses. If an individual using transferred entitlement is eligible for pursuit of a secondary school diploma or equivalency certificate, VA will determine the rate of pursuit in accordance with this paragraph. For individuals pursuing high school courses measured in—
(1) Credit hours, VA will use the formula in paragraph (a) of this section.
(2) Clock hours, VA will use the formula in paragraph (b) of this section.
(3) Units, VA will convert the units to credit hours as follows—
(i) Divide the total number of units required for the program of education by 4 (the number of ordinary school years generally required for completion);
(ii) Round the result of paragraph (d)(3)(i) of this section to the nearest whole number.
(iii) Multiply the result of paragraph (d)(3)(ii) of this section by:
(A) 1.0 to determine the number of units required for a rate of pursuit equal to 100 percent. This number is equivalent to 14 credit hours;
(B) .75 to determine the number of units required for a rate of pursuit equal to 75 percent. An individual will be considered to be enrolled in 10.5 credit hours for any number of units equal to or greater than the number determined in this paragraph but less than the number determined in paragraph (d)(3)(iii)(A) of this section;
(C) .50 to determine the number of units required for a rate of pursuit equal to 50 percent. An individual will be considered to be enrolled in 7 credit hours for any number of units equal to or greater than the number determined in this paragraph but less than the number determined in paragraph (d)(3)(iii)(B) of this section;
(D) .25 to determine the number of units required for a rate of pursuit equal to 25 percent. An individual will be considered to be enrolled in 3.5 credit hours for any number of units up to the number determined in paragraph (d)(3)(iii)(C) of this section.
§ 21.9765   Program of education approval.
VA may provide educational assistance for pursuit of a program of education offered by an educational institution if that program of education is approved under 38 U.S.C. chapter 30 in accordance with §§ 21.7220 and 21.7222.
§ 21.9770   Administrative.
In administering chapter 33, VA will apply the sections noted in paragraphs (a) through (f) of this section. For the purpose of application, the term “veteran” as used in these sections is deemed to mean “an eligible individual under 38 U.S.C. chapter 33,” and the term “38 U.S.C chapter 30” as used in these sections is deemed to mean “38 U.S.C. chapter 33”.
(a) Section 21.7301—Delegations of authority;
(b) Section 21.7302—Finality of decisions;
(c) Section 21.7303—Revision of decisions;
(d) Section 21.7305—Conflicting interests;
(e) Section 21.7307—Examination of records; and
(f) Section 21.7310—Civil rights.