Title 38—Pensions, Bonuses, and Veterans' Relief--Volume 1
PART 21—VETERAN READINESS AND EMPLOYMENT AND EDUCATION
§ 21.4267   Approval of independent study.
(a) Overview. Except as provided in §§ 21.4252(g), 21.7120(d), and 21.7622(f), VA may not pay educational assistance for a nonaccredited course which is offered in whole or in part by independent study. Hence, it is necessary to differentiate independent study from similar courses.
(b) Definition of independent study. (1) VA considers a course to be offered entirely by independent study when—
(i) It consists of a prescribed program of study with provision for interaction between the student and the regularly employed faculty of the institution of higher learning. The interaction may be personally or through use of communications technology, including mail, telephone, videoconferencing, computer technology (to include electronic mail), and other electronic means;
(ii) It is offered without any regularly scheduled, conventional classroom or laboratory sessions; and
(iii) It is not a course listed in paragraph (c), (d), or (e) of this section.
(2) VA considers a course to be offered in part by independent study when—
(i) It is not classified as one of the three types of courses listed in paragraph (c) of this section;
(ii) It has some weeks when standard class sessions are scheduled; and
(iii) It consists of independent study as defined in paragraph (b)(1) of this section during those weeks when there are no regularly scheduled class sessions.
(c) Scope of independent study. VA does not consider any of the following courses to be courses offered by independent study.
(1) A cooperative course as defined in § 21.4233(a);
(2) A farm cooperative course; or
(3) A course approved as a correspondence course.
(d) Undergraduate resident training. VA considers the following undergraduate courses to be resident training.
(1) A course which meets the requirements for resident institutional training found in § 21.4265(f);
(2) A course which requires regularly scheduled, standard class sessions at least once every two weeks and which has a total number of class sessions equal to the number of credit hours awarded for the course, times the number of weeks in a standard quarter or semester, as applicable;
(3) A course of student teaching; and
(4) Flight training which is an integral part of a standard undergraduate college degree.
(e) Graduate resident training. VA considers a graduate course to be resident training if the course—
(1) Is offered through regularly scheduled, conventional classroom or laboratory sessions; or
(2) Consists of research (either on campus or in absentia) necessary for the preparation of the student's—
(i) Master's thesis,
(ii) Doctoral dissertation, or
(iii) Similar treatise which is prerequisite to the degree being pursued; or
(3) Consists of a combination of training as described in paragraphs (e)(1) and (e)(2) of this section.
(f) Course approval. A State approving agency may approve a course offered by independent study or a combination of independent study and resident training only if the course—
(1) Is accredited;
(2) Meets the requirements of § 21.4253; and
(3) Either—
(i) Leads to a standard college degree; or
(ii) For courses approved on or after December 27, 2001, leads to a certificate that reflects educational attainment offered by an institution of higher learning.
(g) Remedial and deficiency courses. Remedial and deficiency courses offered by independent study cannot be approved.
§ 21.4268   Approval of licensing and certification tests.
(a) Authority to approve licensing and certification tests —(1) Tests deemed approved. Effective August 1, 2011, a licensure test offered by a Federal, State, or local government is deemed approved in accordance with § 21.4150(f).
(2) VA approval. The Secretary of Veterans Affairs delegates to the Under Secretary for Benefits, and to personnel the Under Secretary for Benefits may designate within the Education Service of the Veterans Benefits Administration, the authority to approve licensing and certification tests and the organizations and entities offering the tests as provided in § 21.4250(c)(2)(vi).
(3) State approving agency approval. Except for the licensing and certification tests and organizations or entities offering these tests that are approved under paragraphs (a)(1) and (2) of this section, the Secretary of Veterans Affairs delegates to each State approving agency the authority to approve licensing and certification tests and the organizations and entities offering these tests located within the State approving agency's jurisdiction as provided in § 21.4250(a).
(b) Approval of tests. (1) If an organization or entity wants a licensing or certification test that it offers to be approved for payment of educational assistance, it must apply for approval to the State approving agency having jurisdiction over the locality where the organization or entity has its headquarters. The application must be in the form the State approving agency requires.
(2) In order to be approved for payment of educational assistance to veterans and eligible persons, a licensing or certification test must meet the requirements of paragraph (b) of this section, and the organization or entity offering the test must meet the requirements of paragraph (c) of this section and, if appropriate, the requirements of paragraph (d) of this section.
(i) The State approving agency may approve a licensing or certification test only if—
(A) The test is required under Federal, State, or local law or regulation for an individual to enter into, maintain, or advance in employment in a predetermined and identified vocation or profession; or
(B) The State approving agency decides that the test is generally accepted, in accordance with relevant government, business, or industry standards, employment policies, or hiring practices, as attesting to a level of knowledge or skill required to qualify to enter into, maintain, or advance in employment in a predetermined and identified vocation or profession.
(ii) If a State or political subdivision of a State offers a licensing or certification test, the State approving agency will deem the test to have met the requirements of paragraph (b) of this section.
(3) In considering whether the test is generally accepted, a State approving agency may consider the following:
(i) The nature and number of the entities that recognize the certificate awarded to candidates who pass the test;
(ii) The degree to which employers in the relevant industry accept the certification test;
(iii) Whether major employers in an industry require that their employees obtain the certificate awarded to candidates who pass the test;
(iv) The percentage of people employed in the vocation or profession who have taken the test and obtained the certificate; or
(v) Any other reasonable criterion that the State approving agency believes will clarify whether the test is generally accepted.
(4) Generally, if a State approving agency approves a certification test, VA will consider that the test is approved for any veteran or eligible person even if he or she takes the test at a location outside the State where the organization or entity offering the test has its headquarters. However, a certification test approval is valid only in the State where the State approving agency has jurisdiction if—
(i) A State licensing agency recognizes the certification test as meeting a requirement for a license and has sought approval for that test; and
(ii) The State approving agency for the State where the licensing agency is located approves that test.
(c) Approval of organizations or entities offering licensing or certification tests. An organization or entity must meet the requirements of this paragraph and, if a nongovernmental organization, of paragraph (d) of this section, in order for the State approving agency to approve a licensing or certification test that the organization or entity offers for payment of educational assistance to veterans and eligible persons who take the test. The organization or entity must—
(1) Maintain appropriate records with respect to all candidates who take the test for a period of not less than three years from the date the organization or entity administers the test to the candidates;
(2) Promptly issue notice of the results of the test to the candidate for the license or certificate;
(3) Have a process to review complaints submitted against the organization or entity with respect to the test or the process for obtaining a license or certificate required for a vocation or profession;
(4) Give to the State approving agency the following information:
(i) A description of the licensing or certification test that the organization or entity offers, including the purpose of the test, the vocational, professional, governmental, and other entities that recognize the test, and the license or certificate issued upon passing the test;
(ii) The requirements to take the test, including the amount of the fee charged for the test and any prerequisite education, training, skills, or other certification; and
(iii) The period for which the license or certificate is awarded is valid, and the requirements for maintaining or renewing the license or certificate; and
(5) Agree to give the following information to VA at VA's request:
(i) The amount of the fee a candidate pays to take a test;
(ii) The results of any test a candidate takes; and
(iii) Personal identifying information of any candidate who applies for reimbursement from VA for a test.
(d) Approval of nongovernmental organizations or entities offering certification tests. (1) In addition to complying with the requirements of paragraph (c) of this section, a nongovernmental organization or entity must meet the requirements of paragraph (d) of this section before a certification test it offers can be approved for payment of educational assistance to veterans and eligible persons who take the test. Except as provided in paragraphs (d)(3) and (d)(4) of this section, the organization or entity—
(i) Certifies to the State approving agency that the licensing or certification test offered by the organization or entity is generally accepted, in accordance with relevant government, business, or industry standards, employment policies, or hiring practices, as attesting to a level of knowledge or skill required to qualify to enter into, maintain, or advance in employment in a predetermined and identified vocation or profession;
(ii) Is licensed, chartered, or incorporated in a State and has offered the test for a minimum of two years before the date on which the organization or entity first submits to the State approving agency an application for approval under this section;
(iii) Employs, or consults with, individuals with expertise or substantial experience with respect to all areas of knowledge or skill that are measured by the test and that are required for the license or certificate issued; and
(iv) Has no direct financial interest in—
(A) The outcome of the test; or
(B) An organization that provides the education or training of candidates for licenses or certificates required for a vocation or profession.
(2) At the request of the State approving agency, the organization or entity seeking approval for a licensing or certification test must give such information to the State approving agency as the State approving agency decides is necessary to perform an assessment of—
(i) The test the organization or entity conducts as compared to the level of knowledge or skills that a license or certificate attests; and
(ii) The applicability of the test over such periods of time as the State approving agency decides is appropriate.
(3) The provisions of paragraph (d)(1)(ii) of this section will not prevent the approval of a test if the organization or entity has offered a reasonably related test for at least two years.
(4) The provisions of paragraph (d)(1)(iv) of this section will not prevent the approval of a test if the organization or entity—
(i) Offers a sample test or preparatory materials to a candidate for the test but does not otherwise provide preparatory education or training to the candidate; or
(ii) Has a financial interest in an organization that provides preparatory education or training of a candidate for a test, but that test is advantageous in but not required for practicing a vocation or profession.
(e) Notice of approval and withdrawal of approval. The State approving agency must provide notice of an approval of a test as required in § 21.4250(b). If the State approving agency wishes to withdraw approval of a test, it must follow the provisions of § 21.4259.
(f) A decision to disapprove a test or an organization or entity offering a test may be reviewed. (1) If an organization or entity offering a test disagrees with a State approving agency's decision to disapprove a test or to disapprove the organization or entity offering the test, it may seek a review of the decision from the Director, Education Service. If the Director, Education Service has acted as the State approving agency, the organization or entity may seek a review of the decision from the Under Secretary for Benefits.
(2) The organization or entity must make its request for a review in writing to the State approving agency. The State approving agency must receive the request within 90 days of the date of the notice to the organization or entity that the test or the organization or entity is disapproved.
(3) The review will be based on the evidence of record at the time the State approving agency made its initial decision. It will not be de novo in character.
(4) The Director, Education Service or the Under Secretary for Benefits may seek the advice of the Professional Certification and Licensure Advisory Committee, established under 38 U.S.C. 3689(e), as to whether the State approving agency's decision should be reversed.
(5) The decision of the Director, Education Service or the Under Secretary for Benefits is the final administrative decision. It will not be subject to further administrative review.
(g) Authority. (1) Paragraph (a) of this section issued under the authority of 38 U.S.C. 512(a), 3689(a)(2);
(2) Paragraph (b) of this section issued under the authority of 38 U.S.C. 3689;
(3) Paragraph (c) of this section issued under the authority of 38 U.S.C. 3689(c);
(4) Paragraph (d) of this section issued under the authority of 38 U.S.C. 3689(c);
(5) Paragraph (e) of this section issued under the authority of 38 U.S.C. 3689(d);
(6) Paragraph (f) of this section issued under the authority of 38 U.S.C. 3689.
§ 21.4269   Bar to approval.
(a) Beginning on August 1, 2019, a State approving agency, or the Secretary when acting in the role of the State approving agency, shall disapprove a program of education provided by an educational institution that has in effect a policy that is inconsistent with any of the following:
(1) A policy that permits any covered individual to attend or participate in the program of education during the period beginning on the date on which the individual provides to the educational institution any verifiable and authoritative VA document demonstrating entitlement to educational assistance under 38 U.S.C. chapter 31, chapter 33, or chapter 35 (such as a decision or notice of decision on entitlement, letter from VA, updated award letter from VA, or print-out of eligibility (statement of benefits) from a web-based VA system or beneficiary portal to include verification through VA's secure information technology system in accordance with 38 U.S.C. 3699A if an individual has provided authorization to obtain remaining entitlement information), and ending on the earlier of the following dates:
(i) The date on which payment from VA is made to the institution.
(ii) The date that is 90 days after the date on which the educational institution certifies tuition and fees following receipt of the verifiable and authoritative VA document proving entitlement to educational assistance under 38 U.S.C. chapter 31, chapter 33, or chapter 35.
(2) A policy that ensures an educational institution will not impose any penalty, including the assessment of late fees, the denial of access to classes, libraries, or other institutional facilities, or the requirement that a covered individual borrow additional funds, on any covered individual because of the individual's inability to meet his or her financial obligations to the institution due to the delayed disbursement of a payment to be provided by VA under 38 U.S.C. chapter 31, chapter 33, or chapter 35.
(b) For purposes of this section, a covered individual is any individual who is entitled to educational assistance under 38 U.S.C. chapter 31, chapter 33, or chapter 35.
(c) The Secretary (or designee) may waive such requirements of paragraph (a) of this section as the Secretary (or designee) considers appropriate. An educational institution must apply for a waiver within 60 days of the SAA determination that an educational institution is not in compliance with paragraph (a).
(d) It shall not be inconsistent with a policy described in paragraph (a) of this section for an educational institution:
(1) To require a covered individual to take the following additional actions:
(i) Submit any verifiable and authoritative VA document to prove entitlement to educational assistance under 38 U.S.C. chapter 31, chapter 33, or chapter 35 (as described in paragraph (a)(1)) not later than the first day of a program of education for which the individual has indicated the individual wishes to use the individual's entitlement to educational assistance.
(ii) Submit a written request to use such entitlement.
(iii) Provide additional information necessary to the proper certification of enrollment by the educational institution. If an educational institution intends to require additional information necessary for proper certification of enrollment, any such requirement must be included in the school's published catalog and also must be approved by the State approving agency, or the Secretary when acting in the role of the State approving agency, as being necessary for proper certification and not overly burdensome to submit.
(2) In a case in which a covered individual is unable to meet a financial obligation to an educational institution due to the delayed disbursement of a payment to be provided by VA under 38 U.S.C. chapter 31, chapter 33, or chapter 35 and the amount of such disbursement is less than the educational institution anticipated, to require additional payment of or impose a fee for the amount that is the difference between the amount of the financial obligation and the amount of the disbursement.
(i) Such additional payment may include the amount of a financial obligation associated with charges for which VA does not pay benefits ( e.g., room and board, any portion of tuition for which a claimant does not qualify).
(ii) An educational institution may utilize its standard debt collection policies for these amounts, including the assessment of late fees.
§ 21.4270   Measurement of courses.
(a) Measurement of trade, technical, and high school courses. Trade, technical, high school, and high school preparatory courses shall be measured as stated in this paragraph.
(1) Trade and technical courses. (i) Except as provided in paragraph (b) of this section, if shop practice is an integral part of a trade or technical course not leading to a standard college degree—
(A) A full-time enrollment is 22 clock hours per week (exclusive of supervised study) with not more than 2 1/2 hours rest period allowance;
(B) A three-quarter-time enrollment is 16 through 21 clock hours per week (exclusive of supervised study) with not more than 2 hours rest period allowance;
(C) A one-half-time enrollment is 11 through 15 clock hours per week (exclusive of supervised study) with not more than 1 1/4 hours rest period allowance;
(D) A less than one-half-time but more than one-quarter-time enrollment is 6 through 10 clock hours per week (exclusive of supervised study) with not more than 3/4 hour rest period allowance; and
(E) A quarter-time enrollment is 1 through 5 clock hours per week (exclusive of supervised study).
(ii) Except as provided in paragraph (b) of this section, if theory and class instruction constitute more than 50 percent of the required hours in a trade or technical course not leading to a standard college degree, enrollments will be measured as follows. In measuring net instruction there will be included customary intervals not to exceed 10 minutes between classes. Shop practice and rest periods are excluded. Supervised instruction periods in a school's shops and the time involved in field trips and group instruction may be included in computing the clock hour requirements.
(A) A full-time enrollment is 18 clock hours net instruction per week (exclusive of supervised study);
(B) A three-quarter-time enrollment is 13 through 17 clock hours net instruction per week (exclusive of supervised study);
(C) A one-half-time enrollment is 9 through 12 clock hours net instruction per week (exclusive of supervised study);
(D) A less than one-half-time but more than one-quarter-time enrollment is 5 through 8 clock hours net instruction per week (exclusive of supervised study); and
(E) A quarter-time enrollment is 1 through 4 clock hours net instruction per week (exclusive of supervised study).
(2) High school courses. If a student is pursuing high school courses at a rate which would result in an accredited high school diploma in four ordinary school years, VA considers him or her to be enrolled full time. Otherwise, for high school enrollments, training time will be determined as follows. (For the purpose of this paragraph, a unit is not less than one hundred and twenty 60-minute hours or the equivalent of study in any subject in one academic year.)
(i) A full-time enrollment is 18 clock hours net instruction per week or four units per year or the equivalent;
(ii) A three-quarter-time enrollment is 13 through 17 clock hours net instruction per week or three units per year or the equivalent;
(iii) A one-half-time enrollment is 9 through 12 clock hours net instruction per week or two units per year or the equivalent;
(iv) A less than one-half-time but more than one-quarter-time enrollment is 5 through 8 clock hours net instruction per week or one unit per year or the equivalent; and
(v) A one-quarter-time enrollment is 1 through 4 clock hours net instruction per week.
(3) Elementary school. For a high school preparatory course pursued at the elementary school level—
(i) A full-time enrollment is 18 clock hours net instruction per week;
(ii) A three-quarter-time enrollment is 13 through 17 clock hours net instruction per week;
(iii) A one-half-time enrollment is 9 through 12 clock hours net instruction per week;
(iv) A less than one-half-time but more than one-quarter-time enrollment is 5 through 8 clock hours net instruction per week; and
(v) A one-quarter-time enrollment is 1 through 4 clock hours per week.
(b) Measurement of non-college degree courses offered by institutions of higher learning. (1) Notwithstanding the provisions of paragraph (a)(1) of this section, if a student is enrolled in a course which is not leading to a standard college degree and which is offered by an institution of higher learning, VA will measure his or her enrollment in the same manner as collegiate undergraduate courses are measured according to the provisions of paragraph (c) of this section.
(2) Notwithstanding the provisions of paragraph (a)(1) of this section, if a student is enrolled in a course not leading to a standard college degree which is offered on a standard quarter- or semester-hour basis by an educational institution which is not an institution of higher learning, VA shall measure his or her enrollment in the same manner as collegiate undergraduate courses are measured according to the provisions of paragraph (c) of this section, provided that the educational institution requires at least the same minimum number of hours of weekly attendance as are required by paragraph (a)(1) of this section for courses offered on a clock-hour basis. If the educational institution does not require at least the same minimum number of hours of weekly attendance as are required in paragraph (a)(1) of this section, VA will not apply the provisions of paragraph (c) of this section, but will measure the course according to the criteria in paragraph (a)(1) of this section.
(c) Undergraduate, graduate, professional, and on-the-job training courses. Collegiate graduate, professional and on-the-job training courses shall be measured as stated in this table. This shall be used for measurement of collegiate undergraduate courses subject to all the measurement criteria of § 21.4272. Clock hours and sessions mentioned in this table mean clock hours and class sessions per week.
Courses
1 Cooperative courses may be measured on a full-time basis only.
2 When the institution certifies that all undergraduate students enrolled for a minimum of 12 or 13 semester hours or the equivalent are charged full-time tuition, or considered full time for other administrative purposes, such minimum hours will establish the criteria for full-time measurement. When 12 hours is properly certified as full time, VA will measure 9 through 11 hours as 3/4 time, 6 through 8 hours as 1/2 time, 4 through 5 hours as less than 1/2 time and more than 1/4 time, and 1 through 3 hours as 1/4 time or less. VA will measure all other undergraduate courses as indicated in the table for undergraduate or professional courses, as appropriate, but when 13 credit hours or the equivalent is certified as full time, 3/4 time will be 10 through 12 hours. When, in accordance with § 21.4273(a), a responsible official of a school certifies that a lesser number of hours constitute full time, 3/4 time, 1/2 time, less than 1/2 time and more than 1/4 time, or 1/4 time or less, VA will accept the certification for measurement purposes.
To meet criteria for full-time measurement in standard collegiate courses which include required noncredit deficiency courses, in the absence of a certification under § 21.4272(k), VA will convert the noncredit deficiency courses on the basis of the applicable measurement criteria, as follows: 18 or 22 clock hours, 4 “Carnegie Units,” or 12, 13, or 14 (as appropriate) semester hours equal full time. The credit-hour equivalent of such noncredit courses may constitute any portion of the required hours for full-time measurement.
3 Class sessions measured on basis of not less than 50 minutes of classroom instruction. Supervised study periods, class breaks and rest periods are excluded.
4 Supervised study must be excluded.
5 Full-time training will consist of the number of hours which constitute the standard workweek of the training establishment, but not less than 30 hours unless a lesser number of hours is established as the standard workweek for the particular establishment through bona fide collective bargaining between employers and employees.
6 In measuring net instruction there will be included customary intervals not to exceed 10 minutes between classes. Shop practice and rest periods are excluded. Supervised instruction periods in school's shops in farm cooperative programs and the time involved in field trips and individual and group instruction may be included in computing the clock hour requirements.
7 For full-time training the 440 clock hours a year may be prescheduled to provide not less than 80 clock hours in any 3-month period.
§ 21.4271   [Reserved]
§ 21.4272   Collegiate course measurement.
VA will measure a college level course in an institution of higher learning on a credit-hour basis provided all the conditions under paragraph (a) or (b) of this section are met. See also § 21.4273.
(a) Degree courses—accredited or candidate. VA will measure a degree course on a credit-hour basis when—
(1) An institution of higher learning offers the course; and
(2) A nationally recognized accrediting association either—
(i) Accredits the institution of higher learning, or
(ii) Recognizes the institution as a candidate for accreditation; and
(3) The credits earned in the course can be applied towards an associate, baccalaureate or higher degree which is—
(i) Appropriate to the level of the institution of higher learning's accreditation, or
(ii) Appropriate to the level of the institution of higher learning's candidacy for accreditation; and
(4) The course is offered on a semester-hour or quarter-hour basis, and
(5) The degree to which the course credits are applicable either—
(i) Is granted by the institution of higher learning offering the course,
(ii) Is a part of a concurrent enrollment as described in § 21.4233(b), or
(iii) Is being pursued by a nonmatriculated student as provided in § 21.4252(l)(1), (2) or (3).
(b) Degree courses—nonaccredited. VA will measure on a credit-hour basis a degree course which does not meet the requirements of paragraph (a) of this section when—
(1) The course is offered on a semester- or quarter-hour basis, and
(2) The course leads to an associate, baccalaureate, or higher degree, which is granted by the school offering the degree under authority specifically conferred by a State education agency, and
(3) The school will furnish a letter from a State university or letters from three schools that are full members of a nationally recognized accrediting association. In each letter the State university or accredited school must certify either:
(i) That credits have been accepted on transfer at full value without reservation, in partial fulfillment of the requirements for a baccalaureate or higher degree for at least three students within the last 5 years, and that at least 40 percent of the subjects within each curriculum, for which credit-hour measurement is sought, has been accepted without reservation by the certifying State university or accredited school, or
(ii) That in the last 5 years at least three students, who have received a baccalaureate or higher degree as a result of having completed the nonaccredited course, have been admitted without reservation into a graduate or advanced professional program offered by the certifying State university or accredited school.
(c) [Reserved]
(d) Course measurement general. When an undergraduate course qualifies for credit-hour measurement, VA will measure it according to the table contained in § 21.4270(c) of this part.
(e)-(f) [Reserved]
(g) Course measurement; nonstandard terms. (1) When a term is not a standard semester or quarter as defined in § 21.4200(b), the Department of Veterans Affairs will determine the equivalent for full-time training by:
(i) Multiplying the credits to be earned in the term by 18 if credit is granted in semester hours, or by 12 if credit is granted in quarter hours, and
(ii) Dividing the product by the number of whole weeks in the term.
(2) In determining whole weeks for this formula VA will—
(i) Determine the number of days from the beginning to the end of the term as certified by the educational institution, subtracting any vacation period of 7 days or more;
(ii) Divide the number of days in the term by 7;
(iii) Disregard a remainder of 3 days or less, and
(iv) Consider 4 days or more to be a whole week.
(3) The quotient resulting from the use of the formula is called equivalent credit hours. VA treats equivalent credit hours as credit hours for measurement purposes.
(h)-(i) [Reserved]
(j) Course measurement; credit course taken under special circumstances. If a course is acceptable for credit, but the educational institution does not award credit to the veteran or eligible person because he or she has not met college entrance requirements or for some other valid reason, the Department of Veterans Affairs will measure the course as though it were pursued for credit, provided the veteran or eligible person performs all of the work prescribed for other students who are enrolled for credit.
(k) Course measurement; noncredit courses. (1) Except for courses leading to a secondary school diploma or equivalent, the Department of Veterans Affairs will measure noncredit courses given by an institution of higher learning on a quarter- or semester-hour basis if the institution considers them to be the equivalent, for other administrative purposes, of undergraduate courses that lead to a standard college degree at the institution of higher learning.
(2) The Department of Veterans Affairs shall measure other noncredit courses under the appropriate criteria of § 21.4270.
(3) Where a school requires a veteran or eligible person to pursue noncredit deficiency, remedial or refresher courses in order to meet scholastic or entrance requirements, the school will certify the credit-hour equivalent of the noncredit deficiency, remedial or refresher courses in addition to the credit hours for which the veteran or eligible person is enrolled. The Department of Veterans Affairs will measure the course on the total of the credit hours and credit-hour equivalency.
§ 21.4273   Collegiate graduate.
(a) In residence. (1) The Department of Veterans Affairs will measure a nonaccredited graduate or advanced professional course (other than a law course) as provided in § 21.4272. The Department of Veterans Affairs will measure a nonaccredited law course as stated in § 21.4274.
(2) An accredited graduate or advanced professional course, including law as specified in § 21.4274, pursued in residence at an institution of higher learning will be measured in accordance with § 21.4272 unless it is the established policy of the school to consider less than 14 semester hours or the equivalent as full-time enrollment, or the course includes research, thesis preparation, or a comparable prescribed activity beyond that normally required for the preparation of ordinary classroom assignments. In either case a responsible official of the school will certify that the veteran or eligible person is pursuing the course full, three-quarter, one-half, less than one-half but more than one-quarter, or one quarter or less time.
(b) In absentia. A responsible official of the school will certify a program of research pursued by a veteran or eligible person in absentia as full, three-fourths, one-half, less than one-half but more than one-quarter, or one-quarter or less time, and the activity will be assessed by the Department of Veterans Affairs accordingly when:
(1) The research activity is defined and organized so as to enable the certifying official to evaluate the time required for its successful pursuit, and
(2) The time certified for the research activity is independent of the time devoted to any employment situation in which the veteran or eligible person might be engaged.
(c) Undergraduate or combination. If a graduate student is enrolled in both graduate and undergraduate courses concurrently, or solely in undergraduate courses, VA will measure such an enrollment using the provisions of § 21.4272 or the graduate school's assessment of training time, whichever will result in a higher monthly rate for the veteran.
§ 21.4274   Law courses.
(a) Accredited. A law course in an accredited law school leading to a standard professional law degree will be assessed as provided in § 21.4273(a).
(b) Nonaccredited. A law course leading to a professional law degree, completion of which will satisfy State educational requirements for admission to legal practice, pursued in a nonaccredited law school which requires for admission to the course at least 60 standard semester units of credit or the equivalent in quarter units of credit, will be assessed on the basis of 12 class sessions per week for full-time attendance. If the course does not meet these requirements it will be assessed on the basis of clock hours of attendance per week.
§ 21.4275   Practical training courses; measurement.
(a) Medical and dental residencies and osteopathic internships and residencies. VA will measure medical and dental residencies, and osteopathic internships and residencies as provided in § 21.4270(c) of this part if they are accredited and approved in accordance with § 21.4265(a) of this part.
(b) Nursing courses. (1) Courses for the objective of registered nurse or registered professional nurse will be measured on the basis of credit hours or clock hours of attendance, whichever is appropriate. The clock hours of attendance may include academic class time, clinical training, and supervised study periods.
(2) Courses offered by schools which lead to the objective of practical nurse, practical trained nurse, or licensed practical nurse will be measured on credit hours or clock hours of attendance per week whichever is appropriate.
(c) Medical and dental specialty courses. (1) Medical and dental specialty courses offered by a school whether accredited or nonaccredited, shall be measured on the basis of credit hours or clock hours of attendance, whichever is appropriate.
(2) Medical and dental specialty courses offered in hospitals, clinics, laboratories or medical centers which are accredited by a nationally recognized accrediting agency shall be measured on the basis of clock hours of attendance per week.
(d) Medical and dental assistants courses for the Department of Veterans Affairs. Programs approved in accordance with the provisions of § 21.4265(d) will be measured on a clock-hour basis as appropriate in accordance with § 21.4270, however, the program will be regarded as full-time instructional training: Provided, The combined total of the classroom and other formal instruction portion of the program and on-job-training portion of the program requires 30 or more clock hours of attendance per week.
(e) Professional training courses. Nonmedically related professional training courses, such as the clinical pastoral course, shall be measured in semester hours of attendance or clock hours of attendance per week, whichever is appropriate.
(f) Other practical training courses. These courses will be measured in semester hours of credit or clock hours of attendance per week, whichever is appropriate, if approved under § 21.4265(f). (See § 21.4265 for approval.)
§ 21.4277   Discontinuance: unsatisfactory progress, conduct and attendance.
(a) Satisfactory pursuit of program. Entitlement to benefits for a program of education is subject to the requirement that the veteran or eligible person, having commenced the pursuit of such program, continues to maintain satisfactory progress. If the veteran or eligible person does not maintain satisfactory progress, educational benefits will be discontinued by the Department of Veterans Affairs. Progress is unsatisfactory if the veteran or eligible person does not satisfactorily progress according to the regularly prescribed standards and practices of the institution he or she is attending.
(b) Satisfactory conduct. Entitlement to a program of education is subject to the requirement that the veteran or eligible person, having commenced the pursuit of such program, continues to maintain satisfactory conduct in accordance with the regularly prescribed standards and practices of the institution in which he or she is enrolled. If the veteran or eligible person will no longer be retained as a student or will not be readmitted as a student by the institution in which he or she is enrolled, educational benefits will be discontinued, unless further development establishes that the action of the school is of a retaliatory nature. See § 21.4253.
(c) Satisfactory attendance. Entitlement to benefits for a program of education is subject to the requirement that the veteran or eligible person, having commenced the pursuit of such program, continues to maintain satisfactory attendance in accordance with the regularly prescribed standards and practices of the institution in which he or she is enrolled. If the veteran or eligible person will no longer be retained as a student or will not be readmitted as a student by the institution in which he or she is enrolled, educational benefits will be discontinued.
Reports—requirements. See § 21.4203.
§ 21.4278   Reentrance after discontinuance.
(a) Conditions permitting reentrance after discontinuance. A veteran or eligible person may be reentered following discontinuance because of unsatisfactory conduct, progress or attendance only when either of the following sets of conditions exist:
(1) The veteran or eligible person is resuming enrollment at the same educational institution in the same program of education and the educational institution has—
(i) Approved the veteran's or eligible person's reenrollment, and
(ii) Certified it to the Department of Veterans Affairs; or
(2) All of the following exist:
(i) The cause of unsatisfactory conduct, progress or attendance has been removed,
(ii) VA determines that the program which the veteran or eligible person now proposes to pursue is suitable to his or her aptitudes, interests and abilities, and
(iii) If a proposed change of program is involved, the change meets the requirements for approval under §§ 21.4234, 21.5232, 21.7114 and 21.7614 of this part.
(b) Programs which may be reentered after discontinuance. Reentrance may be for the same program, for a revised program or for an entirely different program depending on the cause of the discontinuance and the removal of that cause.
Counseling. See § 21.4100.
§ 21.4279   Combination correspondence-residence program.
(a) Requirements for pursuit. A program of education may be pursued partly in residence and partly by correspondence for the attainment of a predetermined and identified objective under the following conditions:
(1) The correspondence and residence portions are pursued sequentially; that is, not concurrently.
(2) It is the practice of the institution to permit a student to pursue a part of his or her course by correspondence in partial fulfillment of the requirements for the attainment of the specified objective.
(3) The total credit established by correspondence does not exceed the maximum for which the institution will grant credit toward the specified objective.
(4) The educational institution offering the course is accredited by an agency recognized by the Secretary of Education; and
(5) The State approving agency has approved the correspondence-residence course and has verified compliance with the requirement of 38 U.S.C. 3672(e) and § 21.4256(a) that at least 50 percent of those pursuing the correspondence-residence course require six months or more to complete it.
(b) Payment for pursuit of a correspondence-residence program. The rate of educational assistance payable to a spouse or surviving spouse under 38 U.S.C. Chapter 35 for the residence portion of a correspondence-residence course or program shall be computed as set forth in §§ 21.3131(a) and 21.4270.
(1) The charges for that portion of the course or program pursued exclusively by correspondence will be in accordance with § 21.3131(a) with 1 month entitlement charged for each $404 of cost reimbursed.
(2) The charges for the residence portion of the program must be separate from those for the correspondence portion.
§ 21.4280   [Reserved]
§ 21.4500   Definitions.
(a) General. These definitions shall be applicable for subpart F of part 21.
(b) Education loan. A loan made by the Department of Veterans Affairs to an eligible spouse or surviving spouse pursuant to 38 U.S.C. 3512(f) and 3698.
(c) Academic year. The 9 month period usually from August or September to May or June, which includes generally two semesters or three quarters.
(d) Loan period. (1) The Department of Veterans Affairs will make loans normally for a quarter, semester, summer term or two consecutive quarters.
(2) The Department of Veterans Affairs may grant a loan to an eligible spouse or surviving spouse attending a course not organized on a term, quarter or semester basis if the course requires at least 6 months at the full-time rate to complete. A loan will be granted for not more than 6 months at a time.
(i) The Director of the Department of Veterans Affairs facility of jurisdiction may waive the requirement that such a course must take at least 6 months to complete. Such a waiver of the length of the course shall be granted by the Director only if a school requests one for a course and the Director finds that:
(A) During the previous 2 years at least 75 percent of the students enrolled in the course completed it.
(B) During the previous 2 years at least 75 percent of the persons completing the course found employment in the occupational category for which the course is designed to provide training.
(C) The default rate on all Department of Veterans Affairs education loans ever made to students at the educational institution does not exceed 5 percent or 5 cases, whichever is greater.
(D) The default rate on all loans ever made to students pursuant to loan programs administered by the Department of Education does not exceed 5 percent or five cases, whichever is greater.
(E) The course is at least 3 months long.
(F) The course is approved for full-time attendance only.
(G) No more than 35 percent of the students attending the course are receiving educational assistance from the Department of Veterans Affairs.
(H) The Field Director for the region in which the Department of Veterans Affairs facility is located concurs in the waiver.
(ii) If a school disagrees with a decision of a Director of a Department of Veterans Affairs facility, it may, within 1 year from the date of the letter from the Director informing the school of the decision, request that the decision be reviewed by the Director, Education Service. The Director of the Department of Veterans Affairs facility shall forward all requests to the Director, Education Service, who shall consider all evidence submitted by the school. He or she has the authority to affirm or reverse a decision of a Department of Veterans Affairs facility, but shall not grant a waiver if the requirements of paragraph (d)(2)(i) of this section are not met.
(iii) A waiver will remain in effect until the date on which the course fails to meet one of the requirements of paragraph (d)(2)(i) of this section. A school which has received a waiver for a course must notify the Director of the Department of Veterans Affairs facility of jurisdiction within 30 days of the date on which one of those requirements is not met.
(e) Total amount of financial resources. This term means the total of the following:
(1) The annual adjusted effective income of the eligible spouse or surviving spouse, less Federal income taxes paid or payable by the veteran or other eligible person with respect to such income, as described in paragraph (h) of this section.
(2) The amount of cash assets of the eligible spouse or surviving spouse, as described in § 21.4502(b)(2).
(3) The amount of financial assistance received by the eligible spouse or surviving spouse under the provisions of Title IV of the Higher Education Act of 1965, as amended.
(4) Educational assistance received or receivable for the loan period by the eligible spouse or surviving spouse under 38 U.S.C. chapter 35. This amount shall be exclusive of an education loan.
(5) Financial assistance received by the eligible spouse or surviving spouse under any scholarship or grant other than the one specified in paragraph (e)(3) of this section.
(6) Department of Veterans Affairs work-study allowance received or receivable by the eligible spouse or surviving spouse under 38 U.S.C.3537.
(f) Actual cost of attendance. The term actual cost of attendance means:
(1) The actual charge per student for tuition, fees, and books;
(2) An allowance for commuting (this allowance will be based on 22.5¢ per mile for distances not exceeding normal commuting distance);
(3) An allowance for other expenses reasonably related to attendance at the institution at which the eligible spouse or surviving spouse is enrolled; and
(4) A room and board allowance that shall be determined as follows:
(i) If the educational institution actually provides the eligible spouse or surviving spouse with room and board, the allowance shall equal the actual charges to him or her for room and board;
(ii) If the educational institution provides some students with room and board, but does not provide room and board for the eligible spouse or surviving spouse, the room and board allowance shall equal either the actual expenses incurred by the eligible spouse or surviving spouse for room and board, or the amount for room and board that the educational institution would have charged the eligible spouse or surviving spouse, had the educational institution provided him or her with room and board, whichever is less; and
(iii) If the educational institution does not provide any students with room and board, the room and board allowance shall equal either the actual expenses incurred by the eligible spouse or surviving spouse for room and board or the amount the eligible spouse or surviving spouse would have been charged for room and board had he or she been provided room and board by the nearest State college or State university that provides room and board, whichever is less.
(g) Loan fee. This shall be a fee collected by discounting the amount of any loan granted to an eligible spouse or surviving spouse by an appropriate amount. The fee shall be collected for each separate loan authorized. The amount of the fee shall be 3 percent of the total loan amount.
(h) Annual adjusted effective income. This income shall include:
(1) Nontaxable income for the student only for the current tax year in which the application for the education loan is received by the Department of Veterans Affairs. This includes income from sources such as Department of Veterans Affairs compensation and pension, disability retirement, unemployment compensation, welfare payments, social security benefits, etc.
(2) Adjusted gross income (wages, salary, dividends, interest, rental, business, etc.) for the student only for the current tax year in which the application for the education loan is received by the Department of Veterans Affairs, less:
(i) Authorized deductions for exemptions;
(ii) Itemized or standard deduction, whichever is greater;
(iii) Mandatory withholdings such as Federal and State income taxes, social security taxes, etc.
(i) School term. This phrase means:
(1) In the case of an institution of higher learning operating on a quarter system, three consecutive quarters within an ordinary school year;
(2) In the case of an institution of higher learning operating on a semester system, two consecutive semesters within an ordinary school year; or
(3) In the case of an educational institution not an institution of higher learning or in the case of an institution of higher learning not operating on a quarter or semester system, a period of 9 to 11 months provided:
(i) The program of education is divided into segments, and
(ii) At least one segment is completed prior to or during the 9 to 11-month period.
§ 21.4501   Eligibility.
(a) General. Any eligible spouse or surviving spouse shall be eligible to receive an education loan if he or she meets the criteria of this section.
(b) Eligibility criteria. To qualify for an education loan—
(1) The eligible spouse's or surviving spouse's delimiting period as determined by § 21.3046 (a), (b), or (d), or § 21.3047 must have expired;
(2) The eligible spouse or surviving spouse must—
(i) Have financial resources that may reasonably be expected to be expended for education needs and which are insufficient to meet the actual costs of attendance;
(ii) Execute a promissory note payable to the Department of Veterans Affairs, as provided by § 21.4504;
(iii) Have unused entitlement provided under 38 U.S.C. 3511;
(iv) During the term, quarter, or semester for which the loan is granted, be enrolled on a full-time basis in pursuit of the approved program of education in which he or she was enrolled on the date his or her eligibility expired under § 21.3046 (a), (b), or (d), or § 21.3047; and
(v) Have been enrolled in a program of education on a full-time basis—
(A) On the date his or her period of eligibility expired under § 21.3046 (a), (b), or (d), or § 21.3047; or
(B) On the last date of the ordinary term, semester or quarter preceding the date his or her eligibility expired under § 21.3046 (a), (b), or (d), or § 21.3047, if the delimiting date fell during a school break or summer term.
(c) Limitations. The period for which a loan may be granted shall not extend beyond the earliest of the following dates:
(1) Two years after the expiration of the period of eligibility as determined by § 21.3046(a), (b), or (d), or § 21.3047;
(2) The date on which the eligible spouse's or surviving spouse's entitlement is exhausted; or
(3) The date on which the eligible spouse or surviving spouse completes the approved program of education which he or she was pursuing on the date the delimiting period determined by § 21.3046 (a), (b), or (d), or § 21.3047 expired.
(d) Exclusions. No eligible spouse or surviving spouse shall be authorized an education loan if he or she has defaulted on a previous education loan and there is a remaining unliquidated payment due VA.
§ 21.4502   Applications.
(a) General. An eligible spouse or surviving spouse shall make an application for an education loan in the manner prescribed and upon the forms prescribed by the Department of Veterans Affairs. The Department of Veterans Affairs must receive the application no later than the last date of the term, quarter, semester, or 6-month period to which all or part of the loan will apply. The application shall be certified by the school as to the date required from the school by the Department of Veterans Affairs.
(b) Information. The application shall provide the Department of Veterans Affairs with the following information and such other information as may be reasonable upon specific request:
(1) A statement of nontaxable income for the student for the current tax year in which the application is received by the Department of Veterans Affairs; as well as a statement of adjusted gross income for the student for the current tax year in which the application for an education loan is received by the Department of Veterans Affairs less authorized deductions for exemptions, itemized or standard deduction, whichever is greater, and mandatory withholdings such as Federal and State income taxes, social security taxes, etc.
(2) The amount of all funds of the eligible spouse or surviving spouse on hand on the date of the application including cash on hand, money in a bank or savings and loan association account, and certificates of deposit.
(3) The full amount of the tuition for the course to be paid by the eligible spouse or surviving spouse during the period for which the loan is sought.
(4) The amount of reasonably anticipated expenses for room and board to be expended by the eligible spouse or surviving spouse during the period for which the loan is sought, including a reasonable amount, not to exceed 22.5 cents per mile, for commuting normal distances to classes if the student does not reside on campus. Applications may also provide the Department of Veterans Affairs with a statement of the amount of charges for room and board which the school would have made had the school provided the eligible spouse or surviving spouse with room and board. If the school does not provide room and board, the application may provide the Department of Veterans Affairs with a statement of charges for room and board which the eligible spouse or surviving spouse would have received had he or she been provided room and board at the nearest State college or State university which provides room and board.
(5) The anticipated reasonable cost of books and supplies required for the courses to be taken during the period for which the loan is sought.
§ 21.4503   Determination of loan amount.
(a) General. The amount of the education loan shall be computed by:
(1) Determining the total amount of financial resources of the eligible spouse or surviving spouse, as defined in § 21.4500(e), which may be reasonably expected to be expended for education needs in any academic year or other loan period.
(2) Subtracting the available resources determined in paragraph (a)(1) of this section from the actual cost of attendance, as defined in § 21.4500(f), to obtain the net amount by which costs exceed the resources available for education needs. If the available resources and the costs are equal, or if the resources exceed the costs, no loan will be authorized.
(b) Amount. A loan shall be authorized in the amount of the excess of cost over available resources as determined in paragraph (a) of this section subject to the following limitations:
(1) If the costs exceed the available resources by $50 or less no loan shall be granted.
(2) The aggregate of the amounts any eligible spouse or surviving spouse may borrow for an education loan may not exceed $2,500 in any one academic year. It also may not exceed an amount determined by multiplying the number of months of educational assistance to which the eligible spouse or surviving spouse would be entitled were it not for the expiration of his or her delimiting period under 38 U.S.C. 3511 times $376.
(3) If a student is enrolled in a course organized on a term, quarter or semester basis, no single loan shall be authorized at one time for a period that is longer than two consecutive quarters. If a student is enrolled in a course not organized on a term, quarter or semester basis, no single loan shall be authorized at one time for a period that is longer than 6 months.
(4) The Department of Veterans Affairs shall pay the following maximum amounts for these loan periods:
(i) $1,250 for any semester.
(ii) $830 for any term of 8 weeks or more leading to a standard college degree which is not part of the normal academic year or for a quarter.
(iii) $1660 for two consecutive quarters.
(iv) $270 per month for a course not leading to a standard college degree if less than 6 months long.
(v) $1660 for a 6-month loan period based on a course not leading to a standard college degree which is 6 or more months long.
(vi) $270 per month for a loan period of less than 6 months based on a course not leading to a standard college degree which is 6 or more months long.
(5) No amount authorized will be paid by the Department of Veterans Affairs until the eligible spouse or surviving spouse is certified as being enrolled and actually pursuing the course.
(6) An eligible spouse or surviving spouse may receive more than one loan covering separate loan periods, subject to paragraphs (b)(3) and (b)(7) of this section.
(7) If the spouse or surviving spouse has a material change in economic circumstances subsequent to the original application for a loan, he or she may reapply for an increase in an authorized loan or for a loan, if otherwise qualified, if no loan was originally granted. However, the Department of Veterans Affairs will not decrease or revoke a loan once granted, absent fraud in the application.
§ 21.4504   Promissory note.
(a) General. The agreement by VA to loan money pursuant to 38 U.S.C. 3512(f) and 3698 to any eligible spouse or surviving spouse shall be in the form of a promissory note which shall include:
(1) The full amount of the loan.
(2) Agreement to pay a fee not to exceed 3 percent for an insurance fund against defaults.
(3) A note or other written obligation providing for repayment of the principal amount, and interest on the loan in annual installments over a period beginning 9 months after the date on which the borrower first ceases to be at least a half-time student and ending:
(i) For loans of $600 or more, 10 years and 9 months after such date, or
(ii) For loans of less than $600, 1 year and 7 months after such date for the first $50 of the loan plus 1 additional month for each additional $5 of the loan.
(4) A provision for prepayment of all or part of the loan, without penalty, at the option of the borrower.
(b) Interest. The promissory note shall advise the student that the loan shall bear interest on the unpaid balance of the loan at a rate comparable to, but not in excess of, the rate of interest charged students at such time on loans insured by the Secretary of Education, Department of Education, under part B of Title IV of the Higher Education Act of 1965. The rate shall be determined as of the date the agreement is executed and shall be a fixed amount.
(c) Security. The loan shall be made without security and without endorsement.
(d) Default. Whenever VA determines that a default, in whole or in part, has occurred on any such loan the eligible spouse or surviving spouse shall be notified that the amount of the default shall be recovered from the eligible spouse or surviving spouse concerned in the same manner as other debt due the United States. Once a default has occurred, the eligible spouse's or surviving spouse's subsequent reentrance into training at the half-time or greater rate shall not be the basis for rescinding the default. A default may only be rescinded when VA has been led to create the default as a result of a mistake of fact or law.
(e) Death or disability. If the eligible spouse or surviving spouse dies or becomes permanently and totally disabled, even though he or she ceases to be permanently and totally disabled subsequent to the granting of the loan, the remaining liability of such person for an educational loan shall be discharged.
(f) Fraud. Material misrepresentation of fact by the eligible spouse or surviving spouse, including omissions of relevant information, shall render the loan agreement null and void. The deferred payment provisions of the agreement shall not apply in such a case and the full amount of any loan balance shall become due and payable immediately. The amount due shall be recovered from the eligible spouse or surviving spouse in the same manner as any other debt due the United States.
(g) Signature. An eligible spouse or surviving spouse may sign both the loan application and the promissory note required and payment of the amounts authorized will be made to such person, notwithstanding his or her minority, unless the person has a legal guardian. In such cases the legal guardian must sign and will be paid the loan amounts.
§ 21.4505   Check delivery.
(a) General. Education loans by the Department of Veterans Affairs shall be made by a check payable to the eligible spouse or surviving spouse and shall be mailed promptly to the educational institution in which the eligible spouse or surviving spouse is enrolled for delivery by the educational institution.
(b) Delivery and certification. (1) The educational institution, electing to participate in this program, shall deliver an education loan check to the eligible spouse or surviving spouse and shall certify the fact of delivery to the Department of Veterans Affairs immediately upon delivery. If the delivery is not made within 30 days after the institution receives the check, it shall return the check to the Department of Veterans Affairs.
(2) The Director of the Department of Veterans Affairs facility of jurisdiction may direct that education loan checks be sent directly to spouses or surviving spouses when:
(i) The educational institution demonstrates an inability to comply with these requirements; or
(ii) The educational institution fails to provide adequately for the safekeeping of the checks prior to the delivery to the student or return to the Department of Veterans Affairs; or
(iii) The educational institution elects not to participate in this program; or
(iv) There is compelling evidence that the institution is unable to discharge its responsibilities under this program.
§ 21.4507   Advertising.
(a) General. No educational institution or training establishment shall include a statement in advertisements or brochures intended to solicit students as to the availability of education loans from the Department of Veterans Affairs for eligible spouses and surviving spouses, except as provided in paragraph (b) of this section.
(b) Form. The statement which is permitted shall be as follows: “Certain eligible spouses and surviving spouses may qualify for a maximum educational loan of $2,500 per academic year from the Department of Veterans Affairs depending upon need. Applications for such loans shall be made to the Department of Veterans Affairs on forms prescribed by it.”
§ 21.5001   Administration of benefits: 38 U.S.C. Chapter 32.
(a) Delegation of authority. Except as otherwise provided, authority is delegated to the Under Secretary for Benefits and to supervisory or administrative personnel within the jurisdiction of the Education Service, Veterans Benefits Administration, designated by him or her to make findings and decisions under 38 U.S.C. Chapter 32 and the applicable regulations, precedents, and instructions, as to the program authorized by subpart G of this part.
(b) Administrative provisions. In administering benefits payable under 38 U.S.C. Chapter 32, VA will apply the following sections:
(1) Section 21.4002—Finality of decisions;
(2) Section 21.4003 (except paragraphs (d) and (e))—Revision of decisions;
(3) Section 21.4005—Conflicting interests;
(4) Section 21.4006—False or misleading statements;
(5) Section 21.4007—Forfeiture;
(6) Section 21.4008—Prevention of overpayments; and
(7) Section 21.4009—Overpayments; waiver or recovery.
§ 21.5020   Post-Vietnam era veterans' educational assistance.
Title 38 U.S.C. Chapter 32 provides for a participatory program for educational assistance benefits to eligible veterans and servicepersons. The intent of the Congress for this program is stated in 38 U.S.C. 3201.
§ 21.5021   Definitions.
For the purposes of subpart G and payment of benefits under 38 U.S.C. chapter 32, the following definitions apply (see also §§ 21.1029 and 21.4200):
(a) Veteran —means anyone whose service meets the requirements of § 21.5040.
(b) Active duty —means full-time duty in the Armed Forces or as a commissioned officer of the regular or Reserve Corps of the Public Health Service or of the National Oceanic and Atmospheric Administration. It does not include any period during which an individual:
(1) Was assigned full-time by the Armed Forces to a civilian institution for a course of education which was substantially the same as established courses offered to civilians,
(2) Served as a cadet or midshipman at one of the service academies,
(3) Served under the provisions of section 511(d) of Title 10, United States Code, pursuant to an enlistment in the military reserve or national guard,
(4) Served in an excess leave without pay status, or
(5) Served in a status specified in § 3.15 of this chapter.
(c) State —means each of the several States, territories and possessions of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Canal Zone.
(d) School, educational institution, institution. The terms, school, educational institution, and institution mean—
(1) Any vocational school, business school, correspondence school, junior college, teacher's college, college, normal school, professional school, university or scientific or technical institution;
(2) Any public or private elementary school or secondary school which offers courses for adults; and
(3) An entity, other than an institution of higher learning, that provides training required for completion of a State-approved alternative teacher certification program.
(e) Participant —means a person who is participating in the educational benefits program established under Chapter 32. This includes:
(1) A person who has enrolled in and is making contributions by monthly payroll deduction to the fund.
(2) Those individuals who have contributed to the fund and have not disenrolled ( i.e. , users or potential users of benefits).
(3) A person who has enrolled in and is having monthly contributions to the fund made for him or her by the Secretary of Defense.
(4) A person who has made a lump-sum contribution to the fund in lieu of or in addition to monthly contributions deducted from his or her military pay.
(5) Those individuals who have contributed to the fund and—
(i) Have been automatically disenrolled as provided in § 21.5060(b)(3) of this part,
(ii) Whose funds have been transferred to the Treasury Department as provided in § 21.5064(b)(4)(iii) of this part, and
(iii) Who are found to have qualified for an extended period of eligibility as provided in § 21.5042 of this part.
(f) Fund —means that trust fund account established to maintain dollar contributions of the participant (and contributions, if any, from the Department of Defense).
(g) Suspends —means a participant stops contributing to the fund (temporarily or permanently).
(h) Disenrolls —means a participant terminates participation and forfeits any entitlement to benefits except for a refund of his or her contributions previously made.
(i) Hardship or other good reasons —means circumstances considered to be such by the Department of Defense and the Department of Veterans Affairs when referring to suspension or disenrollments, such as illness of the participant or a member of his or her immediate family, unexpected personal expense, etc.
(j) Benefit period means:
(1) For a course leading to a standard college degree:
(i) The entire enrollment period certified by the school; or
(ii) That period of time from the beginning of an enrollment period until the end of the individual's delimiting period; or
(iii) That period of time from the beginning of an enrollment period to the date on which the individual's contributions in the fund are exhausted, whichever is the shortest.
(2) For a residence course not leading to a standard college degree or for a correspondence course that period of time from the beginning of the enrollment period as certified by the school or the date the school last certified on the quarterly certification of attendance, whichever is later, to:
(i) The end of the enrollment period;
(ii) The end of the quarter to be certified;
(iii) The last date of the individual's delimiting period; or
(iv) The date on which the individual's contributions to the fund are exhausted, whichever occurs first.
(3) [Reserved]
(4) For apprenticeship and other on-job training that period of time from the beginning date of training or the date last certified on the monthly certification of training to—
(i) The end of the month to be certified;
(ii) The last date of the veteran's delimiting period;
(iii) The date on which the veteran's entitlement is exhausted, whichever occurs first.
(k) Benefit payment. The term benefit payment means any educational assistance allowance paid under 38 U.S.C. chapter 32 to a veteran for pursuit of a program of education during a benefit period.
(l) Spouse —means a person of the opposite sex who is the wife or husband of the participant, and whose marriage to the participant meets the requirements of § 3.1(j) of this chapter.
(m) Surviving spouse —means a person of the opposite sex who is a widow or widower of the participant, and whose marriage to the participant meets the requirements of § 3.1(j) or § 3.52 of this chapter.
(n) Child —(1) for the purposes of § 21.5067(a) this term means a natural child, step-child or adopted child of the participant regardless of age or marital status.
(2) For all other purposes this term means a person whose relationship to the participant meets the requirements of § 3.57 or § 3.58 of this chapter.
(o) Parent —means a person whose relationship to the participant meets the requirements of § 3.59 of this chapter.
(p) Training establishment. The term training establishment means any establishment providing apprentice or other training on-the-job, including those under the supervision of a college, university, any State department of education, any State apprenticeship agency, any State board of vocational education, any joint apprenticeship committee, the Bureau of Apprenticeship and Training established in accordance with 29 U.S.C. chapter 4C, or any agency of the Federal government authorized to supervise such training.
(q) Program of education —means—
(1) Any curriculum or combination of subjects or unit courses pursued at a school which is generally accepted as necessary to meet requirements for a predetermined and identified educational, professional or vocational objective;
(2) Subjects or unit courses which fulfill requirements for more than one predetermined and identified objective if all objectives pursued are generally recognized as being related to a single career field;
(3) Any unit course or subject or combination of courses or subjects, pursued by an individual at an educational institution, required by the Administrator of the Small Business Administration as a condition to obtaining financial assistance under the provisions of 15 U.S.C. 636;
(4) A full-time program of apprenticeship or other training on-the-job approved as provided in § 21.4261 or § 21.4262 as appropriate; or
(5) A licensing or certification test, the passing of which demonstrates an individual's possession of the knowledge or skill required to enter into, maintain, or advance in employment in a predetermined and identified vocation or profession, provided that VA or a State approving agency has approved the test and the licensing or credentialing organization or entity that offers the test as provided in 38 U.S.C. 3689.
(r) Educational objective —An educational objective is one that leads to the awarding of a diploma, degree or certificate which is generally recognized as reflecting educational attainment.
(s) Professional or vocational objective —A professional or vocational objective is one that leads to an occupation. It may include educational objectives essential to prepare for the chosen occupation. When a program of education consists of a series of courses not leading to an educational objective, these courses must be generally accepted as necessary for attainment of a designated professional or vocational objective.
(t) Deficiency course —The term deficiency course means any secondary level course or subject not previously completed satisfactorily which is specifically required for pursuit of a post-secondary program of education.
(u) Refresher course —The term refresher course means—
(1) Either a course at the elementary or secondary level to review or update material previously covered in a course that has been satisfactorily completed, or
(2) A course which permits an individual to update knowledge and skills or be instructed in the technological advances which have occurred in the individual's field of employment during and since the individual's active military service and which is necessary to enable the individual to pursue an approved program of education.
(v) Disabling effects of chronic alcoholism. (1) The term disabling effects of chronic alcoholism means alcohol-induced physical or mental disorders or both, such as habitual intoxication, withdrawal, delirium, amnesia, dementia, and other like manifestations of chronic alcoholism which, in the particular case—
(i) Have been medically diagnosed as manifestations of alcohol dependency or chronic alcohol abuse, and
(ii) Are determined to have prevented commencement or completion of the affected individual's chosen program of education.
(2) A diagnosis of alcoholism, chronic alcoholism, alcohol-dependency, chronic alcohol abuse, etc., in and of itself, does not satisfy the definition of this term.
(3) Injury sustained by a veteran as a proximate and immediate result of activity undertaken by the veteran while physically or mentally unqualified to do so due to alcoholic intoxication is not considered a disabling effect of chronic alcoholism.
(w) Continuous service means—
(1) Active duty served without interruption. A complete separation from active duty service will interrupt the continuity of active duty service.
(2) Time lost while on active duty will not interrupt the continuity of service. Time lost includes, but is not limited to, excess leave, noncreditable time and not-on-duty time.
(x) Persian Gulf War. The term “Persian Gulf War” means the period beginning on August 2, 1990, and ending on the date thereafter prescribed by Presidential proclamation or by law.
(y) Alternative teacher certification program. The term alternative teacher certification program for the purposes of determining whether an entity offering such a program is a school, educational institution or institution, as defined in paragraph (d)(3) of this section, means a program leading to a teacher certificate that allows individuals with a bachelor's degree or graduate degree to obtain teacher certification without enrolling in an institution of higher learning.
(z) Certification test. The term certification test means a test an individual must pass in order to receive a certificate that provides an affirmation of an individual's qualifications in a specified occupation.
(aa) Licensing test. The term licensing test means a test offered by a State, local, or Federal agency, the passing of which is a means, or part of a means, to obtain a license. That license must be required by law in order for the individual to practice an occupation in the political jurisdiction of the agency offering the test.
(bb) Organization or entity offering a licensing or certification test. (1) The term organization or entity offering a licensing or certification test means:
(i) An organization or entity that causes a licensing test to be given and that will issue a license to an individual who passes the test;
(ii) An organization or entity that causes a certification test to be given and that will issue a certificate to an individual who passes the test; or
(iii) An organization or entity that administers a licensing or certification test for the organization or entity that will issue a license or certificate, respectively, to an individual who passes the test, provided that the administering organization or entity can provide all required information and certifications under § 21.4268 to the State approving agency and to VA.
(2) This term does not include:
(i) An organization or entity that develops and/or proctors a licensing or certification test, but does not issue the license or certificate;
(ii) An organization or entity that administers a test but does not issue the license or certificate, if that administering organization or entity cannot provide all required information and certifications under § 21.4268 to the State approving agency and to VA.
§ 21.5022   Eligibility under more than one program.
(a) Concurrent benefits under more than one program. (1) An individual cannot receive educational assistance under 38 U.S.C. chapter 32 concurrently with benefits under—
(i) 38 U.S.C. chapter 30 (Montgomery GI Bill—Active Duty);
(ii) 38 U.S.C. chapter 31 (Veteran Readiness and Employment (VR&E));
(iii) 38 U.S.C. chapter 33 (Post-9/11 GI Bill);
(iv) 38 U.S.C. chapter 35 (Survivors' and Dependents' Educational Assistance);
(v) 10 U.S.C. chapter 1606 (Montgomery GI Bill—Selected Reserve);
(vi) 10 U.S.C. chapter 1607 (Reserve Educational Assistance Program);
(vii) 10 U.S.C. chapter 106a (Educational Assistance Test Program);
(viii) Section 903 of the Department of Defense Authorization Act, 1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
(ix) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 note);
(x) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 (Pub. L. 99-399); or
(xi) Effective August 1, 2011, 10 U.S.C 510 (National Call to Service).
(2) If an individual is eligible for benefits under 38 U.S.C. chapter 32 and one or more of the programs listed in (a)(1)(i) through (a)(1)(x) of this section, he or she must specify under which program he or she is claiming benefits. The individual may choose to receive benefits under another program (other than 38 U.S.C. chapter 33) at any time, but not more than once in a calendar month. The individual may choose to receive benefits under 38 U.S.C. chapter 33 at any time, but not more than once during a certified term, quarter, or semester.
(b) Total eligibility under more than one program. (1) No one may receive a combination of educational assistance benefits under 38 U.S.C. Chapter 32 and any of the following provisions of law for more than 48 months (or part-time equivalent):
(i) 38 U.S.C. chapter 30 (Montgomery GI Bill—Active Duty);
(ii) 38 U.S.C. chapter 33 (Post-9/11 GI Bill);
(iii) 38 U.S.C. chapter 35 (Survivors' and Dependents' Educational Assistance);
(iv) 10 U.S.C. chapter 1606 (Montgomery GI Bill-Selected Reserve);
(v) 10 U.S.C. chapter 1607 (Reserve Educational Assistance Program);
(vi) 10 U.S.C. chapter 106a (Educational Assistance Test Program);
(vii) Section 903 of the Department of Defense Authorization Act, 1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
(viii) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 note); or
(ix) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 (Pub. L. 99-399).
(2) No one may receive assistance under 38 U.S.C. Chapter 31 in combination with assistance under 38 U.S.C. Chapter 32 in excess of 48 months (or the part-time equivalent) unless VA determines that additional months of benefits under 38 U.S.C. Chapter 31 are necessary to accomplish the purposes of a rehabilitation program.
(c) Authority. (1) Paragraph (a)(1) of this section issued under the authority of 38 U.S.C. 3322(a), 3681(b), 3695;
(2) Paragraph (a)(2) of this section issued under the authority of 38 U.S.C. 3033(a), 3322(a); and
(3) Paragraph (b) of this section issued under the authority of 38 U.S.C. 3034(a), 3231, 3323(a).
§ 21.5023   Nonduplication; Federal programs.
An individual may not receive educational assistance allowance under 38 U.S.C. Chapter 32, if the individual is:
(a) On active duty and is pursuing a course of education which is being paid for, in whole or in part, by the Armed Forces (or by the Department of Health and Human Services in the case of the Public Health Service), or
(b) Attending a course of education or training paid for, in whole or in part, under the Government Employees' Training Act.
§ 21.5030   Applications, claims, and time limits.
(a) To become a participant an individual must apply to his or her Service Department on forms prescribed by the Service Department and/or the Secretary of Defense.
(b) Rules and regulations of the applicable Service Department and/or the Department of Defense shall determine if the application is timely.
(c) The provisions of the following sections shall apply to claims for educational assistance under 38 U.S.C. chapter 32:
(1) Section 21.1029—Definitions.
(2) Section 21.1030—Claims.
(3) Section 21.1031—VA responsibilities when a claim is filed.
(4) Section 21.1032—Time Limits
§ 21.5040   Basic eligibility.
(a) Individuals not on active duty. Whether an individual has basic eligibility under 38 U.S.C. Chapter 32 for educational assistance depends upon when he or she entered the military service, the length of that service, and the character of that service.
(b) Service requirements for all individuals not on active duty. (1) An individual not on active duty:
(i) Must have entered the military service after December 31, 1976, and before July 1, 1985;
(ii) Must not have and except as provided in paragraph (g) of this section must not have had basic eligibility under 38 U.S.C. Chapter 34;
(iii) Must have received an unconditional discharge or release under conditions other than dishonorable from any period of service upon which eligibility is based;
(iv) Must either have:
(A) Served on active duty for a least 181 continuous days, or
(B) Been discharged or released from active duty for a service-connected disability.
(2) The Department of Veterans Affairs will consider that the veteran has an unconditional discharge or release if:
(i) The individual was eligible for complete separation from active duty on the date a discharge or release was issued to him or her, or
(ii) The provisions of § 3.13(c) of this chapter are met.
(3) The provisions of § 3.12 of this chapter as to character of discharge and § 3.13 of this chapter as to conditional discharges are applicable.
(c) Additional active duty service requirements for some individuals not on active duty—Chapter 32. (1) Unless exempted by paragraph (d) of this section, persons who originally enlist in a regular component of the Armed Forces after September 7, 1980, or who enter on active duty after October 16, 1981 (either as an enlisted member or an officer) to be eligible under 38 U.S.C. Chapter 32, must first complete the shorter of:
(i) 24 continuous months of active duty, or
(ii) The full period for which the individual was called or ordered to active duty.
(2) For the purpose of paragraph (c)(1) of this section the Department of Veterans Affairs considers that an enlisted person originally enlisted in a regular component of the Armed Forces on the date he or she entered on active duty even though he or she may have signed a delayed-entry contract on an earlier date.
(3) In computing time served for the purpose of this paragraph, the Department of Veterans Affairs will exclude any period during which the individual is not entitled to credit for service as specified in § 3.15 of this chapter. However, those periods will be included in determining if the service was continuous.
(d) Individuals exempt from additional active duty requirements. (1) An individual who originally enlists in a regular component of the Armed Forces after September 7, 1980, or who enters on active duty after October 16, 1981 (either as an enlisted member or officer), will be eligible to receive benefits under 38 U.S.C. Chapter 32 based upon the ensuing period of active duty, and is exempt from the provisions of paragraph (c) of this section if he or she subsequently:
(i) Is discharged or released from active duty:
(A) Under 10 U.S.C. 1173 (hardship discharge), or
(B) Under 10 U.S.C. 1171 (early-out discharge), or
(C) For a disability incurred in or aggravated in line of duty; or
(ii) Is found by Department of Veterans Affairs to have a service-connected disability which gives the individual basic entitlement to disability compensation as described in § 3.4(b) of this chapter. Once the Department of Veterans Affairs makes this finding, the exemption will continue to apply even if the disability subsequently improves and becomes noncompensable.
(2) An individual who enters on a period of active duty after October 16, 1981, is also exempt from the provisions of paragraph (c) of this section if he or she:
(i) Previously completed a continuous period of active duty of at least 24 months, or
(ii) Was discharged or released from a previous period of active duty under 10 U.S.C. 1171 (early-out discharge).
(3) In computing time served for the purpose of this paragraph, the Department of Veterans Affairs will exclude any period during which the individual is not entitled to credit for service as specified in § 3.15 of this chapter. However, those periods will be included in determining if the service was continuous.
(e) Savings provision. An individual may become a participant and establish basic eligibility under the provisions of this section based upon a period of active duty service which began before October 16, 1981. He or she would not lose the basic eligibility based upon that period of service if, following a release from active duty, the individual reenters on active duty after October 16, 1981, and fails to meet the requirements of paragraph (c) of this section or qualify for an exemption under paragraph (d) of this section. He or she will receive a refund of any contributions he or she may make to the fund during the second period of active duty. See § 21.5065.
(f) Individuals on active duty. To establish basic eligibility under 38 U.S.C. Chapter 32 for educational assistance an individual on active duty:
(1) Must have entered into military service after December 31, 1976, and before July 1, 1985.
(2) Must have served on active duty for a period of 181 or more continuous days after December 31, 1976, and
(3) If not enrolled in a course, courses or a program of education leading to a secondary school diploma or equivalency certificate, must have completed the lesser of the following two periods of active duty:
(i) The individual's first obligated period of active duty which began after December 31, 1976, or
(ii) The individual's period of active duty which began after December 31, 1976, and which is 6 years in length,
(4) If enrolled in a course, courses or a program of education leading to a secondary school diploma or equivalency certificate, the individual:
(i) Must be an enlisted member of the Armed Forces,
(ii) Must be a participant
(iii) Must be training during the last 6 months of his or her first period of active duty, or any time thereafter, and
(5) If he or she originally enlisted after September 7, 1980, must have completed at least 24 months of his or her original enlistment
(g) Election to receive educational assistance allowance under 38 U.S.C. chapter 32 instead of 10 U.S.C. chapter 1606. An individual who serves in the Selected Reserves may not receive credit for that service under both 38 U.S.C. Chapter 32 and 10 U.S.C. Chapter 1606. If he or she wishes to receive educational assistance based upon this service, the veteran must elect the chapter under which he or she will receive benefits.
(1) This election must be in writing and submitted to VA.
(2) If a veteran elects to receive educational assistance under 38 U.S.C. Chapter 32, and negotiates an educational assistance check which is based upon the period of service for which the election was made, the election is irrevocable. Negotiation of an educational assistance check provided under either 38 U.S.C. chapter 32 or 10 U.S.C. chapter 1606, but based upon a period of service which preceded the period for which an election was made, will not serve to make the election irrevocable.
§ 21.5041   Periods of entitlement.
(a) Ten-year delimiting period. Except as provided in § 21.5042 no educational assistance shall be afforded an eligible individual under chapter 32 beyond the date of 10 years after the later of the following:
(1) His or her last discharge or release from a period of active duty of 90 days or more of continuous service; or
(2) His or her last discharge or release from a period of active duty of any length when the eligible individual is discharged or released—
(i) For a service-connected disability;
(ii) For a medical condition which preexisted such service and which VA determines is not service-connected;
(iii) For hardship; or
(iv) Involuntarily for convenience of the government after October 1, 1987, as a result of a reduction in force, as determined by the Secretary of the military department concerned in accordance with regulations prescribed by the Secretary of Defense or by the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy.
(b) Use of entitlement. The individual—
(1) May use his or her entitlement at anytime during the 10-year period after the last discharge or release from active duty or other period as provided pursuant to § 21.5042 of this part;
(2) Is not required to use his or her entitlement in consecutive months.
§ 21.5042   Extended period of eligibility.
(a) General. A veteran shall be granted an extension of the applicable delimiting period, as otherwise determined by § 21.5041 of this part provided—
(1) The veteran applies for an extension.
(2) The veteran was prevented from initiating or completing the chosen program of education within the otherwise applicable delimiting period because of a physical or mental disability that did not result from the willful misconduct of the veteran. VA will not consider the disabling effects of chronic alcoholism to be the result of willful misconduct. See § 21.5021(v).
(b) Application. The veteran must apply for the extended period of eligibility in time for VA to receive the application by the later of the following dates:
(1) One year from the last date of the delimiting period otherwise applicable to the veteran under § 21.5401 of this part, or
(2) One year from the termination date of the period of the veteran's mental or physical disability.
(c) Qualifying period of disability. (1) A veteran's extended period of eligibility shall be based on the period of time that the veteran himself or herself was prevented by reason of physical or mental disability, not the result of the veteran's willful misconduct, from initiating or completing his or her chosen program of education.
(2) VA will not consider the disabling effects of chronic alcoholism to be the result of willful misconduct provided the last date of the time limit for filing a claim for the extension determined under § 21.5030(c)(3) of this part occurs after November 17, 1988.
(3) Evidence must be presented which clearly establishes that the veteran's disability made pursuit of his or her program medically infeasible during the veteran's original period of eligibility as determined by § 21.5041 of this part. A period of disability following the end of the original disability period will not be a basis for extension.
(4) VA will not consider a veteran who is disabled for a period of 30 days or less as having been prevented from enrolling or reenrolling in the chosen program of education or was forced to discontinue attendance, because of the short disability.
(d) Commencing date. The veteran shall elect the commencing date of an extended period of eligibility. The date chosen—
(1) Must be on or after the original date of expiration of eligibility as determined by § 21.5041 of this part, and
(2) Must be on or before the 90th day following the date on which the veteran's application for an extension was approved by VA, if the veteran is training during the extended period of eligibility in a course not organized on a term, quarter or semester basis, or
(3) Must be on or before the first day of the first ordinary term, quarter or semester following the 90th day after the veteran's application for an extension was approved by VA if the veteran is training during the extended period of eligibility in a course organized on a term, quarter or semester basis.
(4) For a veteran whose entitlement to an extended period of eligibility is dependent upon the disabling effects of chronic alcoholism, may not begin before November 18, 1988.
(e) Determining the length of extended periods of eligibility. A veteran's extended period of eligibility shall be based upon the qualifying period of disability, and determined as follows:
(1) If the veteran is in training in a course organized on a term, quarter or semester basis, his or her extended period of eligibility shall contain the same number of days as the number of days from the date during the veteran's original delimiting period that his or her training became medically infeasible to the earliest of the following dates:
(i) The commencing date of the ordinary term, quarter or semester following the day the veteran's training became medically feasible,
(ii) The veteran's delimiting date as determined by § 21.5041 of this part, or
(iii) The date the veteran resumed training.
(2) If the veteran is training in a course not organized on a term, quarter or semester basis, his or her extended period of eligibility shall contain the same number of days as the number of days from the date during the veteran's original delimiting period that his or her training became medically infeasible to the earlier of the following dates:
(i) The date the veteran's training became medically feasible, or
(ii) The veteran's delimiting date as determined by § 21.5041 of this part.
(f) Discontinuance. If the veteran is pursuing a course on the date an extended period of eligibility expires (as determined under this section), VA will discontinue the educational assistance allowance effective the day before the end of the extended period of eligibility.
§ 21.5050   Application requirements for participation.
(a) An individual, who is otherwise eligible to become a participant, must apply to the Service Department under which he or she serves upon forms prescribed by the Service Department and/or Secretary of Defense.
(b) No application to participate may be made before entry upon active duty.
(c) Each application must be submitted in time to permit the Service Department to make the required deduction from the individual's military pay for at least 1 month before the applicant's discharge or release from active duty.
§ 21.5052   Contribution requirements.
(a) Minimum period of participation. Each individual who agrees to participate must do so for a minimum period of 12 consecutive months, unless the participant:
(1) Is allowed to disenroll for hardship reasons;
(2) Is permitted to suspend participation for hardship reasons;
(3) Is discharged or released from active duty;
(4) Otherwise ceases to be legally eligible to participate; or
(5) Elects to make a lump-sum contribution which, when taken together with his or her other contributions, equals the equivalent of at least 12 months' participation.
(b) Amount of monthly contribution. The individual shall specify the amount of his or her contribution to the fund.
(1) The contribution shall be at least $25 per month but not more than $100 per month.
(2) The contribution shall be evenly divided by five. See § 21.5292 for contributions made during the 1-year pilot program.
(c) Amount of total contribution. An individual may contribute for the number of months required to reach a total contribution of $2,700.
(d) Changing the monthly contribution. An individual may increase or decrease the amount of the monthly contribution, but may not do so more than once a month.
(e) Prohibition against contributing. An individual may not make contributions to the fund after the date of his or her discharge. The VA does not consider the return of an unnegotiated refund check to be a contribution. A person who returns a refund check remains continuously eligible for benefits.
(f) Lump-sum contribution. After September 30, 1980 an individual may make a lump-sum contribution or contributions in place of or in addition to monthly contributions.
(1) A lump-sum contribution:
(i) Must be evenly divisible by five,
(ii) Must, when taken together with any monthly contributions the participant may have made or may agree to make, equal or exceed 12 months' participation, and
(iii) Must not exceed $2,700 when taken together with any monthly contributions the participant may have made or may agree to make.
(2) The Department of Veterans Affairs will consider the lump-sum contributions to have been made by monthly deductions from the participant's military pay at the rate of $100 per month unless the participant specifies a different rate which must be
(i) No lower than $25 per month,
(ii) No higher than $100 per month, and
(iii) Evenly divisible by five.
(3) If otherwise eligible to make contributions, a participant:
(i) May make a lump-sum contribution to cover any period of his or her active duty. This may entail a retroactive period, including one which—
(A) Begins after December 31, 1976, and before October 1, 1980, or
(B) Although made after October 27, 1986, includes all or part of the period beginning on July 1, 1985, and ending on October 27, 1986.
(ii) May make a lump-sum contribution which has the effect of increasing the amount of a monthly contribution the participant made previously, but the payment cannot have the effect of increasing the monthly contribution to an amount greater than $100;
(iii) May make a lump-sum payment to cover a period for which he or she previously obtained a refund;
(iv) May not make a lump-sum payment to cover a period during which the participant was not on active duty or will not be on active duty.
(4) A participant may make as many lump-sum contributions as he or she desires, but he or she may not make more than one lump-sum contribution per month.
§ 21.5053   Restoration of contributions (Persian Gulf War).
(a) Restoration of contributions when no entitlement is charged. If the provisions of § 21.5072(i) require that a veteran's entitlement not be charged for a payment or payments he or she received, the amount of the veteran's contributions which were included in the payment or payments will be restored to the fund by the Department of Defense.
(b) Restored contributions are treated like other contributions. VA will treat contributions which have been restored under paragraph (a) of this section as though the veterans had contributed them for all purposes including—
(1) Computing the veteran's monthly rates and benefit payments under § 21.5138, and
(2) Determining any refund which may become due the veteran under §§ 21.5064 and 21.5065.
§ 21.5054   Dates of participation.
(a) General. An individual may participate after December 31, 1976. An individual was not eligible for benefits before July 1, 1977, unless discharged after January 1, 1977, for a service-connected condition. The first date on which an individual on active duty enrolled in a course, courses or a program of education leading to a secondary school diploma or equivalency certificate may receive benefits is subject to the eligibility requirements of § 21.5040(f)(4) and (5).
(b) Termination of right to begin participation. (1) Except as provided in paragraph (b)(3) of this section, no individual on active duty in the Armed Forces may initially enroll after June 30, 1985.
(2) An initial enrollment occurs when a serviceperson who has never contributed to the fund—
(i) First makes a lump-sum payment to the fund, or
(ii) First authorizes an allotment to VA for deposit in the fund. See 32 CFR 59.3(b)(10).
(3) Notwithstanding the provisions of paragraph (b)(1) of this section, any individual on active duty in the Armed Forces who was eligible to enroll on June 30, 1985, may enroll at any time during the period beginning on October 28, 1986, and ending on March 31, 1987.
§ 21.5058   Resumption of participation.
(a) General. An eligible individual, who remains otherwise eligible, may resume active contribution to the fund, if he or she has:
(1) Voluntarily elected to suspend following completion of minimum participation;
(2) Suspended at any time for reasons of hardship; or
(3) Received a discharge or release from active duty after participation and reenlisted.
(b) Disenrollment in order to participate in other educational programs. A person who elects to disenroll in order to receive educational assistance allowance under 38 U.S.C. chapter 34 or to receive an officer adjustment benefit payable under sec. 207, Pub. L. 101-366, 104 Stat. 442, may not reenroll if he or she has negotiated a check under the provisions of law governing the program elected in lieu of the Post-Vietnam Era Veterans' Educational Assistance Program. A person who elects to disenroll in order to receive educational assistance under the Montgomery GI Bill—Active Duty, as provided in § 21.7045, may not reenroll.
(c) Reenrollment permitted following some disenrollments. (1) Except as provided in paragraph (b) of this section, a person who has disenrolled may reenroll, but will have to qualify again for minimum participation as described in § 21.5052(a).
(2) If a person does reenroll, he or she may “repurchase” entitlement by tendering previously refunded contributions which he or she received upon disenrollment, subject to the conditions of § 21.5052(f).
§ 21.5060   Disenrollment.
(a) Voluntary disenrollment. (1) An individual may disenroll at anytime after the initial 12 months of participation.
(2) At any time within the initial 12 months of participation, an individual may elect to disenroll for reasons of personal hardship only.
(b) Nonvoluntary disenrollment. The Department of Veterans Affairs shall disenroll automatically an individual who meets any of the following sets of conditions:
(1) The individual is discharged or released from his or her initial obligated period of active service and:
(i) The discharge or release is under dishonorable conditions, or
(ii) A statutory bar to benefits administered by the Department of Veterans Affairs exists for the individual;
(2) The individual participated only after completion of the initial or subsequent period of active service; is discharged or released and:
(i) The discharge or release is under dishonorable conditions, or
(ii) A statutory bar to benefits exists for the individual; or
(3) The individual has not utilized all of his or her entitlement to benefits within the 10-year period stated in § 21.5041, and at the end of one year thereafter has not filed a claim for educational assistance allowance as provided in § 21.5030(c).
Refunds without disenrollment. See § 21.5065.
§ 21.5062   Date of disenrollment.
An individual will be disenrolled effective:
(a) The date the Department of Veterans Affairs or the Service Department determines he or she has ceased to be legally entitled to participate; or
(b) The date the individual negotiates the check which represents a refund of his or her remaining contributions to the fund, whichever is earlier.
§ 21.5064   Refund upon disenrollment.
(a) General. A disenrolled individual will be refunded all contributions made by him or her to the fund. He or she will be ineligible to receive benefits under §§ 21.5130 and 21.5138, unless the individual reenrolls as a participant and agrees to participate in a new period of 12 consecutive months as provided in § 21.5058. The amount of the contributions refunded upon disenrollment shall be limited to the amount of his or her contributions not utilized to receive benefits as of the date of disenrollment, less any outstanding debts resulting from overpayments of educational assistance allowance.
(b) Effective date of refund. The date upon which the refund of contributions, if any, will be made shall be determined as follows:
(1) If an individual voluntarily disenrolls from the program before discharge or release from active duty, VA will refund the individual's unused contributions:
(i) On the date of the participant's discharge or release from active duty; or
(ii) Within 60 days of VA's receipt of notice of the individual's discharge or disenrollment; or
(iii) As soon as possible after VA's receipt of notice indicating that an earlier refund is needed due to hardship or for other good reasons.
(2) If an individual voluntarily disenrolls from the program after discharge or release from active duty under other than dishonorable conditions, his or her contributions shall be refunded within 60 days of receipt by VA of an application for a refund from the individual.
(3) If an individual is disenrolled because he or she is discharged or released from active duty under dishonorable conditions, the individual's contributions remaining in the fund shall be refunded:
(i) On the date of the individual's discharge or release from active duty; or
(ii) Within 60 days of receipt of notice by the Department of Veterans Affairs of the individual's discharge or release, whichever is the later.
(4) If an individual is disenrolled because he or she has not utilized all of his or her entitlement to benefits within the 10-year delimiting period, the individual's contributions remaining in the fund shall be refunded.
(i) The Department of Veterans Affairs shall notify the individual that the delimiting period has expired and shall state the amount of unused contributions.
(ii) The Department of Veterans Affairs shall make the refund only if the individual requests it.
(iii) If VA does not receive a request within 1 year from the date that the individual is notified of his or her entitlement to a refund, VA will presume that the individual's whereabouts is unknown. The funds on deposit for that individual will be transferred in accordance with the provisions of section 1322(a), Title 31, United States Code.
§ 21.5065   Refunds without disenrollment.
(a) Refunds made without disenrollment following a discharge or release under dishonorable conditions —(1) A discharge or release under dishonorable conditions may result in a partial refund of contributions. If an individual who would have been eligible, but for the fact of his or her reenlistment, for the award of a discharge or release under conditions other than dishonorable at the time he or she completed an obligated period of service, later receives a discharge or release under dishonorable conditions, the Department of Veterans Affairs may refund a portion of his or her contribution.
(2) Amount of refund. The Department of Veterans Affairs shall refund to the individual all of his or her remaining contributions made to the fund after the individual completed the obligated period of service.
(3) Date of refund. The Department of Veterans Affairs shall refund all monies due the individual:
(i) On the date of the individual's discharge or release from active duty; or
(ii) Within 60 days of receipt by the Department of Veterans Affairs of notice of the individual's discharge or release, whichever is later.
(b) Refunds made without disenrollment following a short period of active duty. (1) An individual who has contributed to the fund during more than one period of active duty may be required to receive a refund of those contributions made during the most recent period of active duty. When an individual who meets all the criteria in paragraph (b)(2) of this section is discharged, the Department of Veterans Affairs will refund all contributions he or she made during the most recent period of active duty unless the individual meets one or more of the criteria stated in either paragraph (b)(4) or (5) of this section. If he or she meets one of those criteria, the contributions will not be refunded unless the individual voluntarily disenrolls.
(2) Unless a compulsory refund is prohibited by paragraph (b)(4) or (5) of this section, the Department of Veterans Affairs will refund all contributions made by an individual during the most recent period of active duty when the individual:
(i) Completed at least one period of active duty before the most recent one during which he or she established entitlement to Post-Vietnam Era Veterans' Educational Assistance;
(ii) Reentered on his or her most recent period of active duty after October 16, 1981;
(iii) Contributed to the fund during his or her most recent period of active duty; and
(iv) Is discharged.
(3) The circumstances which prohibit an automatic refund of monies contributed during the individual's most recent period of active duty do not relate only to the most recent period of active duty which began after October 16, 1981, but also the individual's prior periods of active duty regardless of whether they began before, after or on October 16, 1981.
(4) Meeting one or more of the following criteria concerning periods of active duty before the most recent one will be sufficient to prohibit a compulsory refund of contributions made during the most recent period of active duty. The individual:
(i) Before the most recent period of active duty began, completed at least one continuous period of active duty of at least 24 months, or
(ii) Was discharged or released under 10 U.S.C. 1171 (early-out discharge) from any period of active duty before the most recent one.
(5) Meeting one or more of the following criteria concerning the most recent period of active duty will be sufficient to prohibit a compulsory refund of contributions made during the most recent period of active duty. The individual:
(i) For the most recent period of active duty completes 24 months of continuous active duty, or the full period for which the individual was called or ordered to active duty, whichever is shorter; or
(ii) Is discharged or released from the most recent period of active duty under 10 U.S.C. 1171 (early-out discharge) or 1173 (hardship discharge); or
(iii) Is discharged or released from the most recent period of active duty for a disability incurred or aggravated in line of duty; or
(iv) Has a service-connected disability which give him or her basic entitlement to disability compensation as described in § 3.4(b) of this chapter.
(6) In computing time served for the purpose of this paragraph, the individual is not entitled for credit for service as specified in § 3.15 of this chapter. However, those periods will be included in determining if the service was continuous.
(7) The Department of Veterans Affairs shall refund all monies due the individual:
(i) On the date of the individual's discharge or release from active duty; or
(ii) Within 60 days of receipt of notice by the Department of Veterans Affairs of the individual's discharge or release, whichever is later.
(c) Refunds following an election under § 21.5040(b). If a veteran described in § 21.5040(h) makes an election to have a period of service credited toward his or her eligibility and entitlement under 10 U.S.C. Chapter 1606, he or she will be required to receive a refund of any contributions he or she made to the fund during that period of service.
§ 21.5066   Suspension of participation.
An individual may suspend participation in the program without disenrolling. If the individual suspends participation, he or she may resume participation at any time thereafter while on active duty.
(a) An individual may suspend participation any time after 12 months of participation.
(b) An individual who has participated for less than 12 consecutive months may not suspend unless the Secretary of Defense determines that the reason for the suspension is due to a personal hardship.
§ 21.5067   Death of participant.
(a) Disposition of unused contributions. If an individual dies, the Department of Veterans Affairs shall pay the amount of his or her unused contributions to the fund to the living person or persons in the order listed in this paragraph.
(1) The beneficiary or beneficiaries designated by the individual under the individual's Servicemen's Group Life Insurance policy;
(2) The surviving spouse of the individual;
(3) The surviving child or children of the individual, in equal shares;
(4) The surviving parent or parents of the individual in equal shares.
(b) Payments to the individual's estate. If none of the persons listed in paragraph (a) of this section is living, the Department of Veterans Affairs shall pay the amount of the individual's unused contributions to the fund to the individual's estate.
(c) Payments of accrued benefits. Educational assistance remaining due and unpaid at the date of the veteran's death is payable under the provisions of § 3.1000 of this chapter. For this purpose accrued benefits include the portion of the benefit represented by the individual's contribution as well as the portion included by the Department of Veterans Affairs and the Department of Defense.
§ 21.5070   Entitlement.
A participant is entitled to a monthly benefit for periods of time during which the individual is enrolled in, and satisfactorily pursuing, an approved program of education. The amount of the benefit will vary from individual to individual and, in some instances, from month to month as provided in § 21.5138.
§ 21.5071   Months of entitlement allowed.
(a) Entitlement based on monthly contributions. The Department of Veterans Affairs will credit an individual with 1 month of entitlement for each month he or she contributes to the fund up to a maximum of 36 months or its equivalent in part-time training.
(b) Entitlement based on lump-sum contributions. If an individual elects to make a lump-sum contribution, the Department of Veterans Affairs will credit an individual with 1 month of entitlement for:
(1) Every $100 included in the lump sum, or
(2) Every amount included in the lump sum which:
(i) Is at least $25 but no more than $100,
(ii) Is evenly divisible by five, and
(iii) Is specifically designated by the individual at the time he or she makes the contribution.
(c) Entitlement based on both monthly and lump-sum contributions. (1) If the individual makes both monthly and lump-sum contributions, the Department of Veterans Affairs will:
(i) Compute the entitlement due to each type of contribution separately under paragraphs (a) and (b) of this section, and
(ii) Will combine the results of the computations to determine the individual's total entitlement.
(2) In no event will an individual's entitlement exceed 36 months or its equivalent in part-time training.
§ 21.5072   Entitlement charge.
The Department of Veterans Affairs shall determine the entitlement charge for each payment in the same manner for all individuals regardless of whether they are on active duty. Unless the circumstances described in paragraph (i) of this section apply to a servicemember or veteran, VA will use paragraphs (a) through (h) of this section to determine an entitlement charge.
(a) General. (1) Except as provided in paragraphs (b) through (i) of this section, VA will make a charge against entitlement as follows:
(i) The Department of Veterans Affairs will charge an individual who is a full-time student 1 month's entitlement for each monthly benefit paid to him or her.
(ii) The Department of Veterans Affairs will charge an individual who is other than a full-time student 1 month's entitlement for each sum of money paid equivalent to what the individual would have been paid had he or she been a full-time student for 1 month.
(2) When the computation results in a period of time other than a full month, the entitlement charge will be prorated.
(b) Secondary school program. (1) The Department of Veterans Affairs will make no charge against the entitlement of an individual:
(i) Who is pursuing a course, courses or a program of education leading to a secondary school diploma or an equivalency certificate, and
(ii) Whose educational assistance allowance is the monthly rate of the tuition and fees being charged to him or her for the course.
(2) The Department of Veterans Affairs will make a charge (in the same manner as for any other residence training) against the entitlement of an individual who:
(i) Is pursuing a course, courses or a program of education leading to a secondary school diploma or an equivalency certificate, and
(ii) Elects to receive educational assistance allowance calculated according to § 21.5136.
(c) Correspondence training courses. (1) A charge against the period of entitlement for a program consisting exclusively of correspondence training will be made on the basis of 1 month for each sum of money paid equivalent to the dollar value of a month of entitlement as determined under § 21.5138(a)(2)(viii), which is paid to the individual as an educational assistance allowance for this training. When computation results in a period of time other than a full month, the charge will be prorated.
(2) If the individual is contributing to the fund at the same time that benefits are being used or subsequently contributes a sum or sums, the entitlement charges will not be recomputed. Thus, if the monthly rate arrived at by applying the formula is determined to be $150 at the time a benefit program for correspondence training is computed, the individual will be charged 1 month of entitlement for each $150 paid. If a different monthly rate is computed at the time of a subsequent payment for such training, no adjustment will be made in the entitlement charged for the previous payment(s) even though the value of each month's entitlement may vary from payment to payment.
(d) Apprenticeship or other on-job training. (1) The VA will determine the entitlement charge for a veteran in apprenticeship or other on-job training as stated in this paragraph.
(2) The entitlement charge will be—
(i) 75 percent of a month for those months for which the veteran's monthly payment is based upon 75 percent of the monthly benefit otherwise payable to him or her;
(ii) 55 percent of a month for those months for which the veteran's monthly payment is based upon 55 percent of the monthly benefit otherwise payable to him or her; and
(iii) 35 percent of a month for those months for which the veteran's monthly payment is based upon 35 percent of the monthly benefit otherwise payable to him or her.
(3) The charge against the veteran's entitlement will be prorated if—
(i) The veteran's enrollment period ends in the middle of a month,
(ii) The veteran's monthly rate is reduced in the middle of a month, or
(iii) The veteran's monthly payment is reduced because he or she worked less than 120 hours during the month. In this instance the number of hours worked will be rounded to the nearest multiple of eight, and the entitlement charge will be reduced proportionately.
(e) Cooperative training. VA will make a charge against entitlement of 80 percent of a month for each month for which a veteran is paid educational assistance allowance at the cooperative training rate as provided in § 21.5138(a). If the veteran is paid for a partial month of training, the entitlement charge will be prorated.
(f) Training while the veteran is incarcerated. If the veteran must be paid educational assistance allowance at a reduced rate because he or she is incarcerated as provided in § 21.5139 of this part, VA will make a charge against entitlement of one month for each amount of educational assistance allowance paid to the veteran which is the equivalent of one month's benefits as provided in § 21.5138 of this part for the appropriate type of training pursued.
(g) Tutorial assistance. If an individual is paid tutorial assistance as provided in § 21.5141 of this part, the following provisions will apply.
(1) There will be no charge to entitlement for the first $600 of tutorial assistance paid to an individual.
(2) VA will make a charge against the period of entitlement for each amount of tutorial assistance paid to the individual in excess of $600 that is equal to the amount of monthly educational assistance the individual is otherwise eligible to receive for full-time pursuit of a residence course as provided in § 21.5138(c) of this part. When the amount of tutorial assistance paid to the individual in excess of $600 is less than the amount of monthly educational assistance the individual is otherwise eligible to receive, the entitlement charge will be prorated.
(h) Flight training courses. (1) A charge against the period of entitlement for pursuit of a flight training course will be one month for each sum of money paid equivalent to the dollar value of a month of entitlement as determined under § 21.5138(a)(5)(viii). When this computation results in a period of time other than a full month, the charge will be prorated.
(2) If the individual is contributing to the fund at the same time that benefits are being used or subsequently contributes a sum or sums, the entitlement charges will not be recomputed. Thus, if the monthly rate arrived at under § 21.5138(a)(5)(viii) is $150 at the time educational assistance allowance is paid for a period of flight training, the individual will be charged one month of entitlement for each $150 paid. If a different monthly rate is computed at the time of a subsequent payment for such training, no adjustment will be made in the entitlement charged for the previous payment(s) even though the value of each month's entitlement may vary from payment to payment.
(i) Entitlement charge may be omitted for course discontinuance due to orders to, or changing, active duty in certain instances. VA will make no charge against the entitlement of a servicemember or veteran for a payment of educational assistance when—
(1)(i) A veteran not serving on active duty had to discontinue course pursuit as a result of being 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 former 10 U.S.C. 672(a), 672(d), 672(g), 673, or 673b (redesignated effective December 1, 1994, as 10 U.S.C. 12301(a), 12301(d), 12301(g), 12302, and 12304, respectively); or
(ii) A veteran not serving on active duty had to discontinue course pursuit as a result of being 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
(iii) A servicemember serving on active duty had to discontinue course pursuit as a result of being ordered, in connection with the Persian Gulf War by orders dated before September 11, 2001, to a new duty location or assignment or to perform an increased amount of work; or
(iv) A servicemember serving on active duty had to discontinue course pursuit as a result of being ordered, by orders dated after September 10, 2001, to a new duty location or assignment or to perform an increased amount of work; and
(2) The veteran or servicemember failed to receive credit or lost training time toward completion of his or her educational, professional, or vocational objective as a result of having to discontinue course pursuit as described in paragraph (i)(1) of this section.
§ 21.5076   Entitlement charge—overpayment cases.
(a) Overpayment cases. VA will make a charge against an individual's entitlement of an overpayment of educational assistance allowance only if:
(1) The overpayment is discharged in bankruptcy; or
(2) VA waives the overpayment and does not recover it; or
(3) The overpayment is compromised.
(b) Debt discharged in bankruptcy or is waived. If the overpayment is discharged in bankruptcy or is waived and is not recovered, the entitlement charge 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).
(c) Overpayment is compromised. (1) 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).
(2) If the overpayment is compromised and 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 (c)(2)(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 (c)(2)(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 (c)(2)(iii) of this section by the amount of the entitlement otherwise chargeable for the period of the original overpayment.
§ 21.5078   Interruption to conserve entitlement.
(a) Interruption to conserve entitlement generally prohibited. No one may interrupt a certified period of enrollment for the purpose of conserving entitlement. A school may not certify a period of enrollment for a fractional part of the normal term, quarter or semester if the individual actually is enrolled and is pursuing his or her program of education for the entire term, quarter or semester.
(b) Exceptions. The Department of Veterans Affairs will charge entitlement for the entire period of enrollment certified if the individual otherwise is eligible for benefits, except when benefits are interrupted under any of the following conditions:
(1) Enrollment actually is terminated.
(2) Enrollment is canceled and the individual has not negotiated an educational benefits check for any part of the certified period of enrollment.
(3) The individual:
(i) Interrupts his or her enrollment at the scheduled end of any term, quarter, semester or school year within the certified period of enrollment; and
(ii) Has not negotiated any check for educational benefits for the succeeding term, quarter, semester or school year.
(4) The individual requests interruption or cancellation for any break when a school was closed during a certified period of enrollment and payments were continued under an established policy based upon an Executive order of the President or due to an emergency situation. This exception applies whether or not the individual has negotiated a check for educational benefits for the certified period.
§ 21.5100   Counseling.
(a) Purpose. The purpose of counseling is:
(1) To assist in selecting an objective:
(2) To develop a suitable program of education or training; and
(3) To resolve any personal problems which are likely to interfere with the successful pursuit of a program.
(b) Availability of counseling. Counseling assistance in available for—
(1) Identifying and removing reasons for academic difficulties which may result in interruption or discontinuance of training, or
(2) In considering changes in career plans, and making sound decisions about the changes.
(c) Optional counseling. VA shall provide counseling as needed for the purposes identified in paragraphs (a) and (b) of this section upon request of the individual. VA shall take appropriate steps (including individual notification where feasible) to acquaint all participants with the availability and advantages of counseling services.
(d) Required counseling. (1) In any case in which VA has rated the veteran as being incompetent, VA must provide counseling as described in 38 U.S.C. 3697A prior to selection of a program of education or training. The counseling will follow the veteran's initial application for benefits or any communication from the veteran or guardian indicating that the veteran wishes to change his or her program. This requirement that counseling be provided is met when—
(i) The veteran has had one or more personal interviews with the counselor;
(ii) The counselor has jointly developed with the veteran recommendations for selecting a program;
(iii) These recommendations have been reviewed with the veteran.
(2) The veteran may follow the recommendations developed in the course of counseling, but is not required to do so.
(3) VA will take no further action on a veteran's application for assistance under 38 U.S.C. chapter 32 unless he or she—
(i) Reports for counseling;
(ii) Cooperates in the counseling process; and
(iii) Completes counseling to the extent required under paragraph (d)(1) of this section.
§ 21.5103   Travel expenses.
(a) General. VA shall determine and pay the necessary expense of travel to and from the place of counseling for a veteran who is required to receive counseling as provided under 38 U.S.C. 111 (a), (d), (e), and (g).
(b) Restriction. VA will not pay the necessary cost of travel to and from the place of counseling when counseling is not required, but is provided as a result of a voluntary request by the veteran.
§ 21.5130   Payments; educational assistance allowance.
VA will apply the following sections in administering benefits payable under 38 U.S.C. Chapter 32:
(a) Section 21.4131—Commencing dates (except paragraph (d)).
(b) Section 21.4135—Discontinuance dates.
(c) Section 21.4138 (except paragraph (b)—Certifications and release of payments.
(d) Section 21.4146—Assignments of benefits prohibited.
(e) Section 21.4136(k) (except paragraph (k)(3))—Mitigating circumstances.
§ 21.5131   Educational assistance allowance.
(a) General. Statements in this section concerning payments of educational assistance allowance assume that the veteran or servicemember:
(1) Is eligible for educational assistance under 38 U.S.C. chapter 32;
(2) Has remaining entitlement; and
(3) Has not passed the 10-year delimiting date and any applicable extension to that date.
(b) Payment of educational assistance allowance for pursuit of programs of education and other courses. (1) VA will pay educational assistance allowance at the rate specified in § 21.5136 or § 21.5138 while the veteran or servicemember is pursuing:
(i) An approved program of education;
(ii) A refresher or deficiency course; or
(iii) Special education or training which is necessary to enable the veteran or servicemember to pursue an approved program of education.
(2) Except as provided in paragraph (c) of this section, VA will not pay educational assistance allowance for pursuit of any course unless the course is:
(i) Part of the veteran's or servicemember's program of education;
(ii) A refresher or deficiency course; or
(iii) Special education or training which is necessary to enable the veteran or servicemember to pursue an approved program of education.
(3) VA may withhold a payment until it receives verification or certification of the veteran's or servicemember's continued enrollment and adjusts accordingly the veteran's or servicemember's account.
(c) Payment for taking a licensing or certification test. VA will pay educational assistance allowance to an eligible veteran or servicemember who takes an approved licensing or certification test and applies, in accordance with the provisions of § 21.1030(b), for that assistance. VA will not pay educational assistance for a licensing or certification test that neither a State approving agency nor VA has approved.
§ 21.5132   Criteria used in determining benefit payments.
(a) Training time. The amount of benefit payment to an individual in all types of training except cooperative training, correspondence training and apprenticeship and other on-job training depends on whether VA determines that the individual is a full-time student, three-quarter-time student, half-time student or one-quarter-time student.
(b) Contributions. The amount of benefit payment to an individual also depends on:
(1) The amount the individual has contributed to the fund.
(2) The amount the Secretary of Defense has contributed to the fund for the individual.
§ 21.5133   Certifications and release of payments.
A veteran or servicemember must be pursuing a program of education in order to receive payment of educational assistance allowance under 38 U.S.C. chapter 32. To ensure that this is the case, the provisions of this section must be met when a veteran or servicemember is seeking such payment.
(a) General. VA will pay educational assistance to a veteran or servicemember (other than one pursuing a program of apprenticeship, other on-job training, or a correspondence course; one seeking reimbursement for taking an approved licensing or certification test; or one who qualifies for an advance payment) only after:
(1) The educational institution has certified his or her enrollment as provided in § 21.5200(d) of this part; and
(2) VA has received from the individual a verification of the enrollment. Generally, this verification will be required monthly, resulting in monthly payments.
(b) Apprenticeship and other on-job training. VA will pay educational assistance to a veteran pursuing a program of apprenticeship or other on-job training only after—
(1) The training establishment has certified his or her enrollment in the training program as provided in § 21.5200(d); and
(2) VA has received from the training establishment a certification of hours worked. Generally, this certification will be required monthly, resulting in monthly payments.
(c) Correspondence training. VA will pay educational assistance to a veteran or servicemember who is pursuing a correspondence course or the correspondence portion of a combined correspondence-residence course only after—
(1) The educational institution has certified his or her enrollment;
(2) VA has received from the veteran or servicemember a certification as to the number of lessons completed and serviced by the educational institution; and
(3) VA has received from the educational institution a certification or an endorsement on the veteran's or servicemember's certificate, as to the number of lessons completed by the veteran or servicemember and serviced by the educational institution. Generally, this certification will be required quarterly, resulting in quarterly payments.
§ 21.5134   Restrictions on paying benefits to servicepersons.
The Department of Veterans Affairs may not pay benefits to a serviceperson (other than one enrolled in a course, courses or a program of education leading to a secondary school diploma or an equivalency certificate) unless he or she:
(a) Has completed 3 months of contributions to the fund or has made a lump-sum payment which is the equivalent of at least 3 months of contributions to the fund;
(b) Has agreed either to have a monthly deduction from his or her military pay, or has made a lump-sum contribution to the fund, or both, so that the 12 months participation requirement of § 21.5052(a) of this part will be met; and
(c) Is serving on active duty in an enlistment period subsequent to the initial period of active duty defined in § 21.5040(b)(3) of this part.
§ 21.5135   Advance payments.
VA will apply the provisions of § 21.4138(a) in making advance payments to veterans and servicemembers.
§ 21.5136   Benefit payments—secondary school program.
(a) Restrictions on payments. (1) The Department of Veterans Affairs may authorize benefits to qualified enlisted servicepersons for a course, courses or program of education leading to a secondary school diploma or an equivalency certificate without charge to entitlement. Payments may be made only if:
(i) The individual has contributed to the fund for at least 1 month, and
(ii) The training is received while the individual is serving:
(A) The last 6 months of his or her first enlistment after December 31, 1976; or
(B) At any time after completing his or her first enlistment.
(2) An individual who is not on active duty must have been an enlisted serviceperson while he or she was on active duty in order to receive benefits while enrolled in a course, courses or program of education leading to a secondary school diploma or an equivalency certificate.
(b) Monthly rate. An individual pursuing a course, courses or a program of education leading to a secondary school diploma or an equivalency certificate will receive one of two monthly rates.
(1) Unless the individual notifies the Department of Veterans Affairs to the contrary, the monthly rate of his or her educational assistance allowance will be based upon his or her tuition and fees. The Department of Veterans Affairs will make no charge against the entitlement of the individual who is receiving benefits at this monthly rate. The monthly rate will be the rate of tuition and fees being charged to the individual for the course, not to exceed:
(i) $376 for full-time training.
(ii) $283 for three-quarter time training.
(iii) $188 for half-time training.
(iv) $94 for quarter-time training.
(2) The individual may elect to receive educational assistance allowance at the monthly rate provided in § 21.5138. The Department of Veterans Affairs will make an appropriate charge against the individual's entitlement if such an election is made.
(c) Method of payment. (1) If the individual's educational assistance allowance is based upon the rate as determined in paragraph (b)(1) of this section, payment shall be made in a lump sum for the term, quarter or semester at the beginning of the month in which training begins.
(2) If the individual elects to have his or her educational assistance allowance computed as provided in § 21.5138, payment will be made in the same manner as for any other residence training.
§ 21.5137   Benefit payments and charges against entitlement for taking an approved licensing or certification test.
(a) Benefit payments. The amount of educational assistance allowance VA will pay to a veteran or servicemember for taking an approved licensing or certification test, if the veteran or servicemember is entitled to receive such benefit payments, will be the lowest of the following:
(1) The fee the organization or entity offering the test charges for taking the test;
(2) $2,000; or
(3) The total remaining amount of the veteran's or servicemember's contributions to the fund and the contributions the Secretary of Defense has made to the fund on behalf of the veteran or servicemember.
(b) Charge against entitlement. For educational assistance allowance paid for taking an approved licensing or certification test, VA will make a charge against the veteran's or servicemember's entitlement by dividing the amount paid under paragraph (a) of this section by the monthly amount as calculated under § 21.5138(c). The calculation will assume that the veteran or servicemember is a full-time student.
§ 21.5138   Computation of benefit payments and monthly rates.
Except as provided in §§ 21.5136(b)(1) and 21.5137(a), for purposes of this subpart VA will compute benefit payments and monthly rates as provided in this section.
(a) Computation of entitlement factor. (1) For residence training, VA will compute an entitlement factor as follows:
(2) For correspondence training, VA will compute an entitlement factor as follows:
(3) For apprenticeship and other on-job training, VA will compute an entitlement factor as follows:
(4) For cooperative training, VA will compute an entitlement factor as follows:
(5) For flight training, VA will compute an entitlement factor as follows:
(b) Computation of benefit payment. Under this section, VA will compute benefit payments as follows:
(c) Monthly rates. Under this section, VA will compute the monthly rates of payment for individuals in residence training by repeating the calculations in paragraphs (b)(1) through (11) of this section except that instead of entering the entitlement factor on line f, paragraph (b)(1), VA will enter 1 for a full-time student, .75 for a three-quarter time student, .5 for a half-time student, or .25 for a one-quarter time student.
§ 21.5139   Computation of benefit payments for incarcerated individuals.
Notwithstanding the provisions of § 21.5138, some incarcerated individuals may have their educational assistance allowance terminated or reduced. The provisions of this section shall not apply in the case of any individual who is pursuing a program of education while residing in a halfway house or participating in a work-release program in connection with that individual's conviction of a felony.
(a) No educational assistance allowance payable to some incarcerated individuals. VA will pay no educational assistance allowance to an individual who—
(1) Is incarcerated in a Federal, State or local penal institution for conviction of a felony, and
(2) Is enrolled in a course where his or her tuition and fees are being paid by a Federal program (other than one administered by VA) or by a State or local program, and
(3) Has incurred no expenses for supplies, books or equipment.
(b) Reduced educational assistance allowance for some incarcerated individuals. (1) VA will pay a reduced educational assistance allowance to a veteran who—
(i) Is incarcerated in a Federal, State or local penal institution of conviction of a felony, and
(ii) Is enrolled in a course—
(A) For which the individual pays some (but not all) of the charges for tuition and fees, or
(B) For which a Federal program (other than one administered by VA) or a State or local program pays all the charges for tuition and fees, but which requires the individual to pay for books, supplies and equipment.
(2) The monthly rate of educational assistance allowance payable to such an individual shall be the lesser of the following:
(i) The monthly rate determined by adding the tuition and fees that the veteran must pay and the charge to the veteran for the cost of necessary supplies, books and equipment and prorating the total on a monthly basis, or
(ii) The monthly rate for the individual as determined by § 21.5138(c) of this part.
§ 21.5141   Tutorial assistance.
An individual who is otherwise eligible to receive benefits under the Post-Vietnam Era Veterans' Educational Assistance Program may receive supplemental monetary assistance to provide tutorial services. In determining whether VA will pay the individual this assistance, VA will apply the provisions of § 21.4236.
§ 21.5150   State approving agencies.
In administering chapter 32, title 38, United States Code, VA will apply the provisions of the following sections:
(a) Section 21.4150 (except par. (e))—Designation;
(b) Section 21.4151—Cooperation;
(c) Section 21.4152—Control by agencies of the United States;
(d) Section 21.4153—Reimbursement of expenses;
(e) Section 21.4154—Report of activities;
(f) Section 21.4155—Evaluations of State approving agency performance.
§ 21.5200   Schools.
In the administration of benefits payable under the provisions of chapter 32, title 38, U.S.C., the Department of Veterans Affairs will apply the following sections:
(a) Section 21.4200—Definitions (with the exception of paragraph (a)).
(b) Section 21.4201—Restrictions on enrollment; percentage of students receiving financial support.
(c) Section 21.4202—Overcharges; restrictions on enrollments.
(d) Section 21.4203—Reports—Requirements.
(e) Section 21.4204 (except paragraphs (a) and (e))-Periodic certifications.
(f) [Reserved]
(g) Section 21.4206—Reporting fee.
(h) Section 21.4209—Examination of records.
(i) Section 21.4210—Suspension and discontinuance of educational assistance payments and of enrollments or reenrollments for pursuit of approved courses.
(j) Section 21.4211—Composition, jurisdiction, and duties of Committee on Educational Allowances.
(k) Section 21.4212—Referral to Committee on Educational Allowances.
(l) Section 21.4213—Notice of hearing by Committee on Educational Allowances.
(m) Section 21.4214—Hearing rules and procedures for Committee on Educational Allowances.
(n) Section 21.4215—Decision of Director of VA facility of jurisdiction.
(o) Section 21.4216—Review of decision of Director of VA facility of jurisdiction.
§ 21.5230   Programs of education.
(a) Approving the selected program of education. Except as provided in paragraphs (b) and (c) of this section, VA will approve a program of education for a veteran or servicemember under 38 U.S.C. chapter 32, only if—
(1) The program meets the definition of a program of education stated in § 21.5021(q);
(2) Except for a program consisting of a licensing or certification test, the program has an objective as described in § 21.5021(r) or (s);
(3) Any courses, subjects, or licensing or certification tests in the program are approved for VA training; and
(4) Except for a program consisting of a licensing or certification test designed to help the veteran or servicemember maintain employment in a vocation or profession, the veteran or servicemember is not already qualified for the objective of the program.
(b) Programs which include secondary school training. VA may approve the enrollment of a veteran or servicemember in a refresher, remedial, deficiency or other preparatory or special educational assistance course when the veteran or eligible servicemember needs the course in order to pursue an approved program of education.
(c) Refresher training for those already qualified. The refresher training referred to in paragraph (b) of this section includes training in a course or courses for which the veteran is already qualified provided the course or courses permit the veteran to update knowledge and skills or to be instructed in the technological advances which have occurred in the veteran's field of employment. The relevant field of employment may have been pursued either before, during or after the veteran's active duty.
§ 21.5231   Combination.
In the administration of benefits payable under chapter 32, title 38, U.S.C., the Department of Veterans Affairs will apply § 21.4233(b), (c), and (e).
§ 21.5232   Change of program.
In determining whether a change of program of education may be approved for the payments of educational assistance, VA will apply § 21.4234 of this part.
§ 21.5250   Courses.
(a) In administering benefits payable under 38 U.S.C. chapter 32, VA and, where appropriate, the State approving agencies shall apply the following sections.
(1) Section 21.4250 (except paragraph (c)(1))—Course and licensing and certification test approval; jurisdiction and notices.
(2) Section 21.4251—Minimum period of operation requirement for educational institutions.
(3) Section 21.4252—Courses precluded; erroneous, deceptive, or misleading practices.
(4) Section 21.4253—Accredited courses.
(5) Section 21.4254—Nonaccredited courses.
(6) Section 21.4255—Refund policy; nonaccredited courses.
(7) Section 21.4256—Correspondence programs and courses.
(8) Section 21.4257—Cooperative courses.
(9) Section 21.4258—Notice of approval.
(10) Section 21.4259—Suspension or disapproval.
(11) Section 21.4260—Courses in foreign countries.
(12) Section 21.4261—Apprentice courses.
(13) Section 21.4262—Other training on-the-job courses.
(14) Section 21.4265—Practical training approved as institutional training or on-job training.
(15) Section 21.4266—Courses offered at subsidiary branches or extensions.
(16) Section 21.4267—Approval of independent study.
(17) Section 21.4268—Approval of licensing and certification tests.
(b) Flight courses. In administering benefits payable for flight training under chapter 32, title 38, U.S.C., VA and the State approving agencies will apply the provisions of § 21.4263 of this part. Educational assistance allowance is payable only for flight training undertaken by a veteran or serviceperson after March 31, 1991.
§ 21.5270   Assessment and pursuit of course.
In the administration of benefits payable under 38 U.S.C. chapter 32, VA shall apply the following sections.
(a) Section 21.4270 (except those portions of the paragraph and footnotes dealing with farm cooperative training)—Measurement of courses. For the purpose of benefits payable under 38 U.S.C. chapter 32 that training identified in § 21.4270 as less than one-half and more than one-quarter time will be treated as one-quarter-time training.
(b) [Reserved]
(c) Section 21.4272—Collegiate course measurement.
(d) Section 21.4273—Collegiate graduate.
(e) Section 21.4274—Law courses.
(f) Section 21.4275—Practical training courses; measurement.
(g) Section 21.4277—Discontinuance; unsatisfactory progress, conduct, and attendance.
(h) Section 21.4278—Reentrance after discontinuance.
(i) Section 21.4279—Combination correspondence-residence program.
(j) [Reserved]
§ 21.5290   Educational Assistance Pilot Program.
(a) Purpose. The Educational Assistance Pilot Program is designed to encourage enlistments and reenlistments in the Army, Navy, Air Force and Marine Corps.
(b) Outline of program. This program allows some individuals:
(1) To participate while making contributions at a rate less than that prescribed in § 21.5052(b), and/or
(2) To transfer entitlement allowed in § 21.5071 to a spouse or child.
§ 21.5292   Reduced monthly contribution for certain individuals.
(a) Qualifying for reduced monthly contributions. Some individuals can become participants while making no contributions. To qualify for this portion of the pilot program the individual must:
(1) Enlist or reenlist in the Army, Navy, Air Force or Marine Corps after November 30, 1980, and before October 1, 1981;
(2) Elect or have elected to participate in the Post-Vietnam Era Educational Assistance Program; and
(3) Be chosen for the pilot program by the Secretary of Defense or his or her designee.
(b) Monthly contributions made by the Secretary of Defense. (1) The Secretary of Defense may pay $75 per month as the monthly contribution otherwise required under § 21.5052(b) for an individual described in paragraph (a) of this section.
(2) The individual will not be required to make a contribution for any month to the extent that the contribution otherwise required by § 21.5052(b) for that month is paid by the Secretary of Defense.
(3) The amount paid by the Secretary of Defense shall be deposited in the fund.
(c) Restrictions on monthly contributions. The Secretary of Defense may not make a payment under the pilot program on behalf of any person for any month:
(1) Before the month in which the person enlisted or reenlisted in the Army, Navy, Air Force or Marine Corps, or
(2) Before December 1980.
(d) Refunds. If an individual participating in the pilot program disenrolls, any monthly contributions made by the Secretary of Defense will be returned to the Secretary of Defense rather than refunded to the individual.
(e) Application of sections to this portion of the pilot program. (1) The following sections apply to this portion of the pilot program with amendments as noted:
(i) In § 21.5021(e) a participant includes someone whose contributions are being made by the Secretary of Defense.
(ii) In § 21.5052(b) the Secretary of Defense may make contributions to the fund and may designate the amount of the contribution.
(iii) In § 21.5052(d) the Secretary of Defense may increase or decrease the amount of the contribution.
(iv) In §§ 21.5064 and 21.5065 monthly contributions made by the Secretary of Defense will be returned to him or her instead of being refunded to the veteran.
(v) In § 21.5071 the Department of Veterans Affairs will also credit the individual with 1 month of entitlement for each month the Secretary of Defense contributes to the fund on his or her behalf.
(vi) In § 21.5138 the references to the individual's contributions include those contributions made on the individual's behalf by the Secretary of Defense.
(2) Except as amended in paragraph (e)(1) of this section §§ 21.5001 through 21.5041 and §§ 21.5050 through 21.5270 apply without change to this portion of the pilot program. See § 21.5296.
§ 21.5294   Transfer of entitlement.
(a) Qualifying for a transfer of entitlement. Some participants may transfer their entitlement to their spouse or child. To qualify for this portion of the pilot program the individual must:
(1) After June 30, 1981 and before October 1, 1981, reenlist in the Army;
(2) Be a participant;
(3) Possess a critical military specialty as determined by the Secretary of Defense; and
(4) Be chosen for his portion of the pilot program by the Secretary of Defense or his or her designee.
(b) Persons who may receive transferred entitlement. An individual meeting the requirements of paragraph (a) of this section may transfer entitlement earned under § 21.5071 for the purpose of allowing another person to receive educational assistance allowance. Entitlement may be transferred only:
(1) To a spouse or child of the participant,
(2) To one person at a time,
(3) If the participant is not receiving educational assistance allowance, and
(4) When the participant states in writing to the Department of Veterans Affairs that the entitlement should be transferred.
(c) Educational assistance allowance. (1) The individual must specify in writing to the Department of Veterans Affairs the period of time he or she wishes the spouse or child to receive educational assistance allowance on the basis of the transfer of entitlement. The Department of Veterans Affairs will not pay educational assistance allowance to a spouse or child for training completed either before or after the period specified by the participant.
(2) The commencing date of an award of educational assistance allowance to a spouse or child will be the earlier of the following dates:
(i) The date of the spouse's or child's entrance or reentrance under § 21.4131;
(ii) The first day of the period authorized by the participant for the transfer of entitlement.
(3) The ending date of an award of educational assistance allowance to a spouse or child will be the earliest of the following dates:
(i) The ending date of the spouse's or child's course or period of enrollment as certified by the school or training establishment;
(ii) The ending date of the participant's eligibility as determined under § 21.5041;
(iii) The ending date specified in § 21.4135;
(iv) The date of the death of the participant on whom the spouse's or child's entitlement is based;
(v) The last day of the period authorized by the participant for the transfer of entitlement.
(d) Application of VA regulations to this portion of the pilot program. (1) Sections 21.5030 (a) and (b), 21.5040, 21.5041 and 21.5050 through 21.5067 and § 21.5145 apply to the individual who is participating in this portion of the pilot program, but they do not apply to the individual's spouse or child, per se.
(2) The following sections apply to this portion of the pilot program with amendments as noted:
(i) In § 21.5022 the entitlement used by the spouse or child counts toward the 48-month limitation on receiving benefits under more than one program which is imposed on the individual.
(ii) In § 21.5072 the charge against the individual's entitlement will be made on the basis of payments made to the individual's spouse or child.
(iii) In § 21.5100 the individual's spouse or child may request counseling, but an incompetent spouse or child is not required to be counseled before selecting a program of education.
(iv) In §§ 21.5132 through 21.5138 references to payment to the individual apply equally to payment to the spouse or child.
(3) Except as amended in paragraph (d)(2) of this section the following sections apply without change to this portion of the pilot program:
(i) Sections 21.5001 through 21.5023,
(ii) Section 21.5030(c),
(iii) Sections 21.5070 through 21.5130,
(iv) Section 21.5131, and
(v) Sections 21.5132 through 21.5300.
(4) Section 21.5131 (a) and (b) does not apply to this portion of the pilot program.
§ 21.5296   Extended period of eligibility.
(a) General. A veteran shall be granted an extension of the applicable delimiting period, as otherwise determined by § 21.5041 provided—
(1) The veteran applies for an extension.
(2) The veteran was prevented from initiating or completing the chosen program of education within the otherwise applicable delimiting period because of a physical or mental disability that did not result from the willful misconduct of the veteran. VA will not consider the disabling effects of chronic alcoholism to be the result of willful misconduct.
(b) Application. (1) Only the veteran may apply for an extended period of eligibility pursuant to this section. A spouse or child to whom entitlement may be or has been transferred may not apply for, nor receive, an extension based upon disability of either the veteran or the spouse or child.
(2) The veteran must apply for the extended period of eligibility in time for VA to receive the application by the later of the following dates:
(i) One year from the last date of the delimiting period otherwise applicable to the veteran under § 21.5041, or
(ii) One year from the termination date of the period of the veteran's mental or physical disability.
(3) No application for an extended period of eligibility should be submitted and none will be processed during any period when the veteran has transferred entitlement to a spouse or child, since eligibility cannot be fully determined as provided in paragraph (c)(4)(ii) of this section.
(c) Qualifying period of disability. A veteran's extended period of eligibility shall be based on the period of time that the veteran himself or herself was prevented by reason of physical or mental disability, not the result of the veteran's willful misconduct, from initiating or completing his or her chosen program of education. VA will not consider the disabling effects of chronic alcoholism to be the result of willful misconduct.
(1) Evidence must be presented which clearly establishes that the veteran's disability made pursuant of his or her program medically infeasible during the veteran's original period of eligibility as determined by § 21.5041. A period of disability following the end of the original disability period will not be a basis for extension.
(2) VA will not consider a veteran who is disabled for a period of 30 days or less as having been prevented from enrolling or reenrolling in the chosen program of education or was forced to discontinue attendance, because of the short disability.
(3) Except as provided in paragraph (c)(4) of this section, a veteran's transfer of entitlement to a spouse or child during a period for which the veteran's disability prevented his or her pursuit of a program of education will not affect the veteran's entitlement to an extension of eligibility under this section.
(4) Since the act of entitlement transfer to a spouse or child indicates that the veteran did not intend to personally use his or her educational assistance during the specified transfer period, a veteran who becomes disabled after transferring entitlement will not be entitled to an extended period of eligibility based on any period of the disability which coincides with the specified transfer period unless—
(i) The transferee or transferees did not use any entitlement during this period, and
(ii) The veteran can clearly demonstrate that, notwithstanding his or her decision to transfer entitlement, the veteran would have used the entitlement during all or part of the transfer period and was prevented from doing so solely by reason of his or her disability.
(d) Commencing date. The veteran shall elect the commencing date of an extended period of eligibility. The date chosen—
(1) Must be on or after the original date of expiration of eligibility as determined by § 21.5041 of this part, and
(2) Must be on or before the 90th day following the date on which the veteran's application for an extension was approved by VA, if the veteran is training during the extended period of eligibility in a course not organized on a term, quarter or semester basis, or
(3) Must be on or before the first day of the first ordinary term, quarter or semester following the 90th day after the veteran's application for an extension was approved by VA if the veteran is training during the extended period of eligibility in a course organized on a term, quarter or semester basis.
(e) Determining the length of extended periods of eligibility. A veteran's extended period of eligibility shall be based on the qualifying period of disability, and determined as follows:
(1) If the veteran is in training in a course organized on a term, quarter or semester basis, his or her extended period of eligibility shall contain the same number of days as the number of days from the date during the veteran's original delimiting period that his or her training became medically infeasible to the earliest of the following dates:
(i) The commencing date of the ordinary term, quarter or semester following the day the veteran's training became medically feasible,
(ii) The veteran's delimiting date as determined by § 21.5041 of this part, or
(iii) The date the veteran resumed training.
(2) If the veteran is training in a course not organized on a term, quarter or semester basis, his or her extended period of eligibility shall contain the same number of days as the number of days from the date during the veteran's original delimiting period that his or her training became medically infeasible to the earlier of the following dates:
(i) The date the veteran's training became medically feasible, or
(ii) The veteran's delimiting date as determined by § 21.5041 of this part.
(f) Discontinuance. If the veteran is pursuing a course on the date an extended period of eligibility expires (as determined under this section), VA will discontinue the educational assistance allowance effective the day before the end of the extended period of eligibility.
(g) No transfer of entitlement for use during the extended period of eligibility. (1) The veteran may only transfer entitlement to a spouse or child for use during the original period of eligibility as determined by § 21.5041 of this part.
(2) If the veteran has established an extended period of eligibility with VA, only the veteran may use remaining entitlement during that period.
(3) If the veteran transfers his or her entitlement after having received an extension of eligibility, but before the last day of the delimiting period as determined by § 21.5041 of this part, the eligibility of the spouse or child to use entitlement ends on the veteran's otherwise applicable delimiting date as determined by § 21.5041 of this part.
§ 21.5701   Establishment of educational assistance test program.
(a) Establishment. The Departments of Army, Navy and Air Force have established an educational assistance test program.
(b) Purpose. The purpose of this program is to encourage enlistments and reenlistments for service on active duty in the Armed Forces of the United States during the period from October 1, 1980, through September 30, 1981.
(c) Funding. The Department of Defense is bearing the costs of this program. Participants in the program do not bear any of the costs.
§ 21.5703   Overview.
This program provides subsistence allowance and educational assistance to selected veterans and servicemembers and, in some cases, to dependents of these veterans and servicemembers.
§ 21.5705   Transfer of authority.
The Secretary of Defense delegates the authority to administer the benefit payment portion of this program to the Secretary of Veterans Affairs and his or her designees. See § 21.5901.
§ 21.5720   Definitions.
For the purpose of regulations in the §§ 21.5700, 21.5800 and 21.5900 series and payment of benefits under the educational assistance and subsistence allowance program, the following definitions apply:
(a) Veteran. This term means a person who—
(1) Is not on active duty.
(2) Served as a member of the Air Force, Army, Navy or Marine Corps.
(3) Enlisted or reenlisted after November 30, 1980, and before October 1, 1981, specifically for benefits under the provisions of 10 U.S.C. 2141 through 2149; Pub. L. 96-342; and
(4) Meets the eligibility requirements for the program as stated in § 21.5740.
(b) Accredited institution. This term means a civilian college or university or a trade, technical or vocational school in the United States (including the District of Columbia, the Commonwealth of Puerto Rico, Guam and the U.S. Virgin Islands) that—
(1) Provides education on a postsecondary level (including accredited programs conducted at overseas locations) and
(2) Is accredited by—
(i) A nationally recognized accrediting agency or association, or
(ii) An accrediting agency or association recognized by the Secretary of Education.
(c) Dependent child. This means an unmarried legitimate child (including an adopted child or a stepchild) who either—
(1) Has not passed his or her 21st birthday; or
(2) Is incapable of self-support because of a mental or physical incapacity that existed before his or her 21st birthday and is, or was at the time of the veteran's or servicemember's death, in fact, dependent on him or her for over one-half of his or her support; or
(3) Has not passed his or her 23rd birthday; is enrolled in a full-time course of study in an institution of higher learning approved by the Secretary of Defense or the Secretary of Education, as the case may be; and is, or was at the time of the veteran's or servicemember's death, in fact, dependent upon him or her for over one half of his or her support.
(d) Surviving spouse. The term means a widow or widower who is not remarried.
(e) Servicemember. This term means anyone who—
(1) Meets the eligibility requirements for the program, and
(2) Is on active duty in the Air Force, Army, Navy or Marine Corps.
(f) Spouse. This term means a person of the opposite sex who is the husband or wife of the veteran or servicemember.
(g) Divisions of the school year. (1) Standard academic year is a period of 2 standard semesters or 3 standard quarters. It is 9 months long.
(2) Standard quarter is a division of the standard academic year. It is from 10 to 13 weeks long.
(3) Standard semester is a division of the standard academic year. It is 15 to 19 weeks long.
(4) Term is either
(i) Any regularly established division of the standard academic year, or
(ii) The period of instruction which takes place between standard academic years.
(h) Full-time training. This term means training at the rate of 12 or more semester hours per semester, or the equivalent.
(i) Part-time training. The term means training at the rate of less than 12 semester hours per semester or the equivalent.
(j) Enrollment period. This term means an interval of time during which an eligible individual—
(1) Is enrolled in an accredited educational institution; and
(2) Is pursuing his or her program of education.
§ 21.5725   Obtaining benefits.
(a) Actions required of the individual. In order to obtain benefits under the educational assistance and subsistence allowance program, an individual must—
(1) File a claim for benefits with VA, and
(2) Ensure that the accredited institution certifies his or her enrollment to VA.
(b) VA action upon receipt of a claim. Upon receipt of a claim from an individual VA shall—
(1) Determine if the individual, or the veteran upon whose service the claim is based, has or had basic eligibility;
(2) Determine that the eligibility period has not expired;
(3) Determine that the individual has remaining entitlement;
(4) Verify that the individual is attending an accredited institution;
(5) Determine whether payments may be made for the course, and
(6) Make appropriate payments of educational assistance and subsistence allowance.
§ 21.5730   Applications, claims, and time limits.
The provisions of subpart B of this part apply with respect to claims for educational assistance under the educational program described in § 21.5701, VA actions upon receiving a claim, and time limits connected with claims.
§ 21.5740   Eligibility.
(a) Establishing eligibility. To establish eligibility to educational assistance under 10 U.S.C. Chapter 107 an individual must—
(1) Enlist or reenlist for service on active duty as a member of the Army, Navy, Air Force or Marine Corps after September 30, 1980 and before October 1, 1981 specifically for benefits under the provisions of 10 U.S.C. 2141 through 2149, Pub. L. 96-342,
(2) Have graduated from a secondary school,
(3) Meet other requirements as the Secretary of Defense may consider appropriate for the purpose of this chapter and the needs of the Armed Forces,
(4) Meet the service requirements stated in paragraph (b) of this section, and
(5) If a veteran, have been discharged under honorable conditions.
(b) Service Requirements. (1) The individual must complete 24 continuous months of active duty of the enlistment or reenlistment described in paragraph (a)(1) of this section; or
(2) If the enlistment described in paragraph (a) of this section is the individual's initial enlistment for service on active duty, the individual must—
(i) Complete 24 continuous months of active duty, or
(ii) Be discharged or released from active duty—
(A) Under 10 U.S.C. 1173 (hardship discharge), or
(B) Under 10 U.S.C. 1171 (early-out discharge), or
(C) For a disability incurred in or aggravated in line of duty; or
(iii) Be found by the VA to have a service-connected disability which gives the individual basic entitlement to disability compensation as described in § 3.4(b) of this title. Once the VA makes this finding, the individual's eligibility will continue notwithstanding that the disability becomes noncompensable.
(3) In computing time served for the purpose of this paragraph, VA will exclude any period during which the individual is not entitled to credit for service as specified in § 3.15 of this title. However, those periods will not interrupt the individual's continuity of service.
§ 21.5741   Eligibility under more than one program.
(a) Veterans and servicemembers. A veteran or servicemember who is eligible for educational assistance under either 38 U.S.C. chapter 31 or 34, or subsistence allowance under 38 U.S.C. chapter 31 may also be eligible for the Educational Assistance Test Program. (See § 21.5824 for restrictions on duplication of benefits.)
(b) Spouse, surviving spouse or dependent child. A spouse, surviving spouse or dependent child who is eligible to receive educational assistance under 38 U.S.C. Chapters 31, 32, 34 and 35 may also be eligible for the Educational Assistance Test Program. (See § 21.5824 for restrictions on duplication of benefits.)
(c) Limitation on benefits. (1) Before March 2, 1984 the 48 month limitation on benefits under two or more programs found in 38 U.S.C. 3695 does not apply to the Educational Assistance Test Program when taken in combination with any program authorized under title 38 U.S.C.
(2) After March 1, 1984 the aggregate period for which any person may receive assistance under the Educational Assistance Test Program and the provisions of any of the laws listed below may not exceed 48 months (or the part-time equivalent thereof):
(i) Part VII or VIII, Veterans Regulations numbered 1(a) as amended,
(ii) Title II of the Veterans' Readjustment Assistance Act of 1952,
(iii) The War Orphans' Educational Assistance Act of 1956,
(iv) Chapters 32, 34, 35 and 36 of title 38 U.S.C. and the former chapter 33,
(v) Section 903 of the Department of Defense Authorization Act, 1981.
(vi) The Hostage Relief Act of 1980.
(3) After October 19, 1984 the aggregate period for which any person may receive assistance under the Educational Assistance Test Program and any of the laws listed in paragraph (c)(2) of this section, may not exceed 48 months (or the part-time equivalent thereof):
(i) Chapter 30 of title 38, U.S.C., and
(ii) Chapter 1606 of title 10, U.S.C.
§ 21.5742   Entitlement.
(a) Educational assistance. A veteran or servicemember shall be entitled to one standard academic year (or the equivalent) of educational assistance for each year of service following the first enlistment beginning after November 30, 1980 (up to a maximum of four years). If the veteran or servicemember completes two years of active duty in the term of enlistment, but fails to complete the enlistment or fails to complete four years of active duty in an enlistment of more than four years, his or her entitlement to educational assistance shall be calculated as follows:
(1) VA shall determine the number of years, months and days in the veteran's qualifying period of service by subtracting the entry on duty date from the release from active duty date. Any deductible time under § 3.15 of this chapter (during the period of service on which eligibility is based) will be excluded from the calculation.
(2) VA shall convert the number of years determined in paragraph (a)(1) of this section to months by multiplying them by 12.
(3) VA shall convert the number of days determined in paragraph (a)(1) of this section to 0 months if there are 14 days or less, and to 1 month is there are more than 14 days.
(4) VA shall determine the number of total months by adding the number of months determined in paragraph (a)(1) of this section (exclusive of years and days) to the number of months determined in paragraph (a)(2) of this section, and the number of months in paragraph (a)(3).
(5) VA shall multiply the number of total months in paragraph (a)(4) of this section by 75.
(b) Subsistence allowance. A veteran or servicemember shall be entitled to nine months of subsistence allowance for each standard academic year of entitlement to educational assistance. For each period of entitlement to educational assistance which is shorter than a standard academic year, a veteran or servicemember will be entitled to one month of subsistence allowance for each month of entitlement to educational assistance. This entitlement shall not exceed nine months.
§ 21.5743   Transfer of entitlement.
(a) Entitlement may be transferred. (1) A veteran or servicemember may transfer all or part of his or her entitlement to educational assistance and subsistence allowance to a spouse or dependent child. He or she may not transfer entitlement to more than one person at a time.
(2) The Secretary of the Navy may authorize a member or veteran of the Navy or Marine Corps to make a transfer described in paragraph (a)(1) of this section provided:
(i) The servicemember or veteran has entitlement to educational assistance as provided in § 21.5742;
(ii) The enlistment that established the servicemember's or veteran's entitlement was his or her second reenlistment as a member of the Armed Forces;
(iii) The servicemember or veteran has completed at least four years of active service of that second reenlistment; and
(iv) The servicemember's or veteran's second reenlistment was for a period of at least six years.
(3) No transfer, other than one described in paragraph (a)(2) of this section, may be made until the veteran or servicemember—
(i) Has completed the enlistment upon which his or her entitlement is based or has been discharged for reasons described in § 21.5740(b)(2), and
(ii) Has thereafter reenlisted.
(4) The servicemember or veteran may revoke at any time a transfer described in either paragraph (a) (2) or (3) of this section.
(5) If a veteran attempts to transfer entitlement after 10 years have elapsed from the date he or she has retired, has been discharged or has otherwise been separated from active duty, the transfer shall be null and void.
(b) Transfer of entitlement upon death of veteran or servicemember. (1) A veteran's or servicemember's entitlement to educational assistance and subsistence allowance shall be transferred automatically subject to provisions of paragraph (b)(2) of this section, provided he or she—
(i) Completed the enlistment upon which the entitlement is based;
(ii) Thereafter reenlisted;
(iii) Never elected not to transfer entitlement; and
(iv) Dies while on active duty or within 10 years from the date he or she retired, was discharged, or was otherwise separated from active duty.
(2) The veteran's or servicemember's entitlement will be transferred to—
(i) The veteran's or servicemember's surviving spouse, or
(ii) If the veteran or servicemember has no surviving spouse, the veteran's or servicemember's dependent children.
(3) A surviving spouse who receives entitlement under paragraph (b)(2) of this section may elect to transfer that entitlement to the veteran's or servicemember's dependent children.
(4) If a servicemember transfers entitlement and then dies, and the effective date of the transfer is more than 10 years from the date of his or her death, the transfer shall be void. The entitlement will be transferred automatically as provided in paragraph (b)(2) of this section.
(c) Effect of transfer upon educational assistance and subsistence allowance: veteran or servicemember living. (1) A person to whom a veteran or servicemember transfers entitlement is entitled to educational assistance and subsistence allowance in the same manner and at the same rate as the person from whom entitlement was transferred.
(2) The total entitlement transferred to the veteran's or servicemember's spouse and children shall not exceed the veteran's or servicemember's remaining entitlement. The veteran or servicemember may transfer entitlement to only one person at a time.
(d) Effect of transfer upon educational assistance and subsistence allowance: Veteran or servicemember deceased. (1) A person to whom entitlement is transferred after the death of a veteran or servicemember is entitled to payment of educational assistance and subsistence allowance in the manner as the veteran or servicemember. The rate of educational assistance and subsistence allowance will be as stated in §§ 21.5820 and 21.5822.
(2) If entitlement is transferred to more than one person following the death of a veteran or servicemember, the total remaining entitlement to educational assistance and subsistence allowance of all is equal to the total entitlement of the person on whose service entitlement is based.
(e) Revocation of a transfer of entitlement. A surviving spouse who has transferred entitlement to a dependent child may revoke the transfer by notifying VA in writing. A veteran or servicemember who has transferred entitlement may revoke that transfer by notifying VA in writing. The veteran, servicemember or surviving spouse may choose the effective date of the revocation subject to the following conditions:
(1) If the person to whom entitlement is transferred never enters training, the effective date of the revocation may be any date chosen by the veteran, servicemember or surviving spouse who transferred the entitlement.
(2) If the person to whom entitlement is transferred is not in training on the date the VA processes the revocation, but he or she has trained before that date, the effective date of the revocation may be no earlier than the last date that person was in training for which educational assistance and subsistence allowance were payable.
(3) If the person to whom entitlement is transferred is in training (for which educational assistance and subsistence allowance are payable) on the date the VA processes revocation, the effective date of the revocation may be no earlier than—
(i) The last date of the term, quarter, or semester at the accredited institution where that person is enrolled, or
(ii) If the accredited institution is not organized on a term, quarter or semester basis, the last date of the course or the last date of the school year, whichever is earlier.
§ 21.5744   Charges against entitlement.
(a) Charges against entitlement to educational assistance. (1) Except as provided in paragraph (a)(2) of this section VA will make a charge against an individual's entitlement to educational assistance of—
(i) One month for each month of a term, quarter or semester—
(A) For which the servicemember receives educational assistance, and
(B) During which the servicemember is a full-time student; and
(ii) One-half month for each month of a term, quarter or semester—
(A) For which the individual receives educational assistance, and
(B) During which the servicemember is a part-time student.
(2) VA will prorate the entitlement charge if the individual—
(i) Is a student for only part of a month, or
(ii) The individual is a full-time student for part of a month and a part-time student for part of the same month.
(3) The charge against entitlement to educational assistance should always equal the charge against entitlement to subsistence allowance for the same enrollment period.
(b) Charges against entitlement to subsistence allowance. (1) For each individual, except servicemembers, VA will make a charge against an individual's entitlement to subsistence allowance of—
(i) One month for each month the individual is a full-time student receiving subsistence allowance; and
(ii) One-half for each month the individual is a part-time student receiving subsistence allowance.
(2) Even though a servicemember may not receive subsistence allowance, VA will make a charge against a servicemember's entitlement to subsistence allowance of—
(i) One month for each month of a term, quarter or semester—
(A) For which the servicemember received educational assistance and
(B) During which the servicemember is a full-time student; and
(ii) One-half month for each month of a term, quarter or semester—
(A) For which the servicemember received educational assistance, and
(B) During which the individual is a part-time student.
(3) VA will prorate the entitlement charge as stated in paragraph (b) (1) or (2) of this section during any month for which a servicemember receives educational assistance or for which the individual receives subsistence allowance—
(i) For less than a full month, or
(ii) At the full-time rate for part of a month and at the part-time rate for part of the same month.
§ 21.5745   Period of entitlement.
(a) Veterans. The period of entitlement of a veteran expires on the first day following ten years from the date the veteran retires or is discharged or otherwise separated from active duty.
(b) Spouses, surviving spouses, and dependent children. If the veteran's or servicemember's entitlement is transferred, the period of entitlement of the spouse, surviving spouse, or dependent child expires 10 years from—
(1) The date the veteran retires, is discharged or otherwise separated from active duty, or
(2) If the servicemember dies on active duty, the date of the servicemember's death.
§ 21.5800   Courses.
(a) Courses permitted. An individual may receive educational assistance and subsistence allowance only while receiving instruction in a postsecondary course offered at any institution in the United States (including the District of Columbia, the Commonwealth of Puerto Rico, Guam and the U.S. Virgin Islands) that is accredited by a nationally recognized accrediting agency or association or by an accrediting agency or association recognized by the Secretary of Education.
(b) Courses precluded. An individual shall receive neither educational assistance nor subsistence allowance while pursuing any of the following courses:
(1) A course offered at the secondary level or below;
(2) A course offered by an institution located outside the United States (except in Guam, the Commonwealth of Puerto Rico and the U.S. Virgin Islands);
(3) A course offered by a nonaccredited institution; and
(4) Courses which do not require the student to receive instruction at the institution. These include—
(i) Correspondence courses,
(ii) Combination correspondence—residence courses, and
(iii) Courses offered through independent study.
§ 21.5810   Certifications of enrollment.
(a) Enrollment certifications. An individual who wishes to receive educational assistance and subsistence allowance shall ensure that the accredited institution he or she is attending certifies the individual's enrollment to VA.
(b) Content of certification. The certification should include—
(1) The number of credit hours or clock hours in which the individual is enrolled;
(2) The amount of the cost of tuition, fees, books, laboratory fees, and shop fees for consumable materials used as part of classroom or laboratory instruction which the individual will incur during the period of enrollment; and
(3) The beginning and ending dates of the period of enrollment.
(c) Length of certification. A school should not certify more than one term, quarter or semester at a time.
§ 21.5812   Reports of withdrawals and terminations of attendance and changes in training time.
(a) Reports of withdrawals and terminations of attendance. (1) An individual shall report to VA facility of jurisdiction whenever he or she withdraws from school or terminates his or her attendance. He or she shall report the last day of attendance. The individual may request that the school verify this information.
(2) The report shall include—
(i) The date of withdrawal or last date of attendance, as appropriate; and
(ii) The amount of educational expenses actually incurred by the individual during the period of enrollment before the date of withdrawal, or if the individual does not formally withdraw when he or she stops attending the amount of educational expenses actually incurred by the individual during the period of enrollment before the last date of attendance.
(b) Reports of changes in training. (1) An individual shall report to the VA field station of jurisdiction each time the individual increases or decreases the number of credit hours or clock hours of training in which he or she is enrolled or otherwise alters the duration of the enrollment.
(2) The report shall include—
(i) The new number of credit hours or clock hours in which the individual is enrolled;
(ii) The amount of educational expenses, enumerated in § 21.5810(b)(2), which the individual will incur during the revised period of enrollment; and
(iii) The effective date of the change in the number of credit hours or clock hours, including any revision in the term of the enrollment.
(3) The individual or VA may ask the school to verify the individual's reports of changes in training.
§ 21.5816   False or fraudulent claims.
Each individual, or school officer or official shall be subject to civil penalties or criminal penalties, or both, under applicable Federal law for submitting a false or fraudulent report, revision to a report, or verification of accuracy of a report used to support an individual's claim, even though the report or verification is provided gratuitously or voluntarily to VA.
§ 21.5820   Educational assistance.
(a) Educational assistance. Educational assistance will be paid to cover the educational expenses incurred by an eligible servicemember, veteran, spouse, surviving spouse or dependent child while attending an accredited institution. Educational assistance payments will be made to the eligible individual.
(1) The educational expenses are limited to—
(i) Tuition,
(ii) Fees,
(iii) Cost of books,
(iv) Laboratory fees, and
(v) Shop fees for consumable materials used as part of classroom or laboratory instruction.
(2) Educational expenses may not exceed those normally incurred by students at the same educational institution who are not eligible for benefits from the educational assistance test program.
(b) Amount of educational assistance. (1) The amount of educational assistance will be adjusted annually by regulation. For the 2003-04 standard academic year the amount of this assistance may not exceed $4,219.
(2) The amount of educational assistance payable to a servicemember, veteran, spouse or dependent child of a living servicemember or veteran for an enrollment period will be the lesser of the following:
(i) The total charges for educational expenses the eligible individual incurs during the enrollment period, or
(ii) For the 2003-04 standard academic year an amount determined by:
(A) Multiplying the number of whole months in the enrollment period by $468.78 for a full-time student or by $234.39 for a part-time student;
(B) Multiplying any additional days in the enrollment period by $15.63 for a full-time student or by $7.81 for a part-time student; and
(C) Adding the two results. If the enrollment period is as long as or longer than the standard academic year, this amount will be decreased by 2 cents for a full-time student and decreased by 1 cent for a part-time student.
(3) The amount of educational assistance payable to each surviving spouse or dependent child of a deceased servicemember or veteran for an enrollment period will be the lesser of the following:
(i) The total charges for educational expenses the eligible individual incurs during the enrollment period, or
(ii) For the 2003-04 standard academic year an amount determined by:
(A) Multiplying the number of whole months in the enrollment period by $468.78 for a full-time student or by $234.39 for a part-time student;
(B) Multiplying any additional days in the enrollment period by $15.63 for a full-time student or by $7.81 for a part-time student; and
(C) Adding the two results. If the enrollment period is as long as or longer than a standard academic year, this amount will be decreased by 2 cents for a full-time student and decreased by 1 cent for a part-time student; and
(D) Dividing the amount determined in paragraph (b)(3)(ii)(C) of this section by the number of the deceased veteran's dependents receiving educational assistance for that enrollment period. If one or more dependents is receiving educational assistance for part of the enrollment period, the amount calculated in paragraph (b)(3)(ii)(C) will be prorated on a daily basis. The amount for each day when more than one dependent is receiving educational assistance will be divided by the number of dependents receiving educational assistance on that day. The total amount for the days when only one dependent is receiving educational assistance will not be divided.
(c) Time of educational assistance payments. VA will make payments of educational assistance at the end of the first month of each semester, quarter or term in which the individual is entitled to such a payment, provided VA receives a timely enrollment certification. If VA receives the enrollment certification so late that payment cannot be made at the end of the month in which the individual is enrolled, VA will make payment as soon as practicable.
§ 21.5822   Subsistence allowance.
(a) Subsistence allowance. Except as provided in paragraph (a)(2) of this section, VA will pay subsistence allowance to a veteran, spouse, surviving spouse or dependent child during any period for which he or she is entitled to educational assistance. No subsistence allowance is payable to:
(1) A servicemember, even if he or she is entitled to educational assistance, or
(2) A spouse or dependent child of a servicemember, even if the spouse or dependent child is entitled to educational assistance.
(b) Amount of subsistence allowance. (1) The following rules govern the amount of subsistence allowance payable to veterans and to spouses and dependent children of veterans who are alive during the period for which subsistence allowance is payable. As stated in paragraph (a) of this section, these amounts are payable only for periods during which the veterans, spouses or dependent children are entitled to educational assistance.
(i) If a person is pursuing a course of instruction on a full-time basis, his or her subsistence allowance is $1,051 per month for training pursued during the 2003-04 academic year.
(ii) If a person is pursuing a course of instruction on other than a full-time basis, his or her subsistence allowance is $525.50 per month for training pursued during the 2003-04 academic year.
(iii) If a person does not pursue a course of instruction for a complete month VA will prorate the subsistence allowance for that month on the basis of 1/30th of the monthly rate for each day the person is pursuing the course.
(2) The following rules govern the amount of subsistence allowance payable to surviving spouses and dependent children of deceased veterans and servicemembers.
(i) VA will determine the monthly rate of subsistence allowance payable to a person for a day during which he or she is pursuing a course of instruction full-time during the 2003-04 academic year by dividing $1,051 per month by the number of the deceased veteran's dependents pursuing a course of instruction on that day.
(ii) VA will determine the monthly rate of subsistence allowance payable to a person for a day during which he or she is pursuing a course of instruction on other than a full-time basis during the 2003-04 academic year by dividing $525.50 per month by the number of the deceased veteran's dependents pursuing a course of instruction on that day.
(iii) The total amount of subsistence allowance payable to a person for a month is the sum of the person's daily rates for the month.
(c) Time of subsistence allowance payments. VA will make payments of subsistence allowance on the first day of the month following the month for which subsistence allowance is due, provided that VA receives a timely enrollment certification. If VA receives the enrollment certification so late that payment cannot be made on the first day of the month following the month for which subsistence allowance is due, VA will make payment as soon as practicable.
§ 21.5824   Nonduplication: Federal programs.
(a) Duplication of some benefits prohibited. An individual who is receiving educational assistance under programs authorized by 38 U.S.C. Chapters 30, 31, 32, 34, 35 or 36 may not receive concurrently either educational assistance or subsistence allowance under the §§ 21.5700, 21.5800 and 21.5900 series of regulations for the same program of education, but may receive them sequentially.
(b) Debts may result from duplication. (1) If an individual receives benefits under 38 U.S.C. Chapters 30, 31, 32, 34, 35 or 36 for training, and he or she has previously received educational assistance or subsistence allowance (or both) under §§ 21.5700, 21.5800, 21.5900 series of regulations the amount of the benefits received under 38 U.S.C. Chapters 30, 31, 32, 34 or 35 shall not constitute a debt due the United States.
(2) If an individual receives benefits under 38 U.S.C. Chapter 34, and had signed an agreement with the Department of Defense to waive those benefits in return for receiving benefits under the educational assistance test program:
(i) Any benefits already paid under the educational assistance test program will constitute a debt due the United States, and
(ii) No further benefits under the educational assistance test program will be paid to the individual or to anyone to whom entitlement may be transferred.
§ 21.5828   False or misleading statements.
(a) False statements. An individual who attempts to obtain educational assistance or subsistence allowance or both through submission of false or misleading statements is subject to civil penalties or criminal penalties or both under applicable Federal law.
(b) Effect of false statements on subsequent payments. A determination that false or misleading statements have been made will not constitute a bar to payments based on training to which the false or misleading statements do not apply.
§ 21.5830   Payment of educational assistance.
(a) Timing and release of payments. VA will pay educational assistance to the individual on the last day of the calendar month during which the individual enters or reenters training.
(b) Period covered by payments. The payments cover those expenses, listed in § 21.5820(a) incurred for the period beginning on the commencing date of the individual's subsistence allowance and ending on the ending date of the individual's subsistence allowance. See § 21.5831.