§ 21.4503 Determination of loan amount. ( a ) *General.* The amount of the education loan shall be computed by: ( 1 ) Determining the total amount of financial resources of the eligible spouse or surviving spouse, as defined in § 21.4500(e), which may be reasonably expected to be expended for education needs in any academic year or other loan period.
( 2 ) Subtracting the available resources determined in paragraph (a)(1) of this section from the actual cost of attendance, as defined in § 21.4500(f), to obtain the net amount by which costs exceed the resources available for education needs. If the available resources and the costs are equal, or if the resources exceed the costs, no loan will be authorized.
( b ) *Amount.* A loan shall be authorized in the amount of the excess of cost over available resources as determined in paragraph (a) of this section subject to the following limitations: ( 1 ) If the costs exceed the available resources by $50 or less no loan shall be granted.
( 2 ) The aggregate of the amounts any eligible spouse or surviving spouse may borrow for an education loan may not exceed $2,500 in any one academic year. It also may not exceed an amount determined by multiplying the number of months of educational assistance to which the eligible spouse or surviving spouse would be entitled were it not for the expiration of his or her delimiting period under 38 U.S.C. 3511 times $376. (Authority: 38 U.S.C. 3512(f), 3698)
( 3 ) If a student is enrolled in a course organized on a term, quarter or semester basis, no single loan shall be authorized at one time for a period that is longer than two consecutive quarters. If a student is enrolled in a course not organized on a term, quarter or semester basis, no single loan shall be authorized at one time for a period that is longer than 6 months. (Authority: 38 U.S.C. 3698)
( 4 ) The Department of Veterans Affairs shall pay the following maximum amounts for these loan periods: ( i ) $1,250 for any semester.
( ii ) $830 for any term of 8 weeks or more leading to a standard college degree which is not part of the normal academic year or for a quarter.
( iii ) $1660 for two consecutive quarters.
( iv ) $270 per month for a course not leading to a standard college degree if less than 6 months long.
( v ) $1660 for a 6-month loan period based on a course not leading to a standard college degree which is 6 or more months long.
( vi ) $270 per month for a loan period of less than 6 months based on a course not leading to a standard college degree which is 6 or more months long. (Authority: 38 U.S.C. 3512(f), 3698(b))
( 5 ) No amount authorized will be paid by the Department of Veterans Affairs until the eligible spouse or surviving spouse is certified as being enrolled and actually pursuing the course.
( 6 ) An eligible spouse or surviving spouse may receive more than one loan covering separate loan periods, subject to paragraphs (b)(3) and (b)(7) of this section.
( 7 ) If the spouse or surviving spouse has a material change in economic circumstances subsequent to the original application for a loan, he or she may reapply for an increase in an authorized loan or for a loan, if otherwise qualified, if no loan was originally granted. However, the Department of Veterans Affairs will not decrease or revoke a loan once granted, absent fraud in the application.
[40 FR 31765, July 29, 1975, as amended at 48 FR 37996, Aug. 22, 1983; 49 FR 8439, Mar. 7, 1984; 50 FR 19936, May 13, 1985; 61 FR 26116, May 24, 1996]