[Federal Register Volume 74, Number 60 (Tuesday, March 31, 2009)]
[Rules and Regulations]
[Pages 14654-14694]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-7052]



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Part III





Department of Veterans Affairs





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38 CFR Part 21



Post-9/11 GI Bill; Final Rule

Federal Register / Vol. 74 , No. 60 / Tuesday, March 31, 2009 / Rules 
and Regulations

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AN10


Post-9/11 GI Bill

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is issuing this final 
rule to establish regulations regarding a new educational assistance 
program for individuals who serve on active duty after September 10, 
2001. The new program, known as the Post-9/11 GI Bill, was authorized 
by title V of the Supplemental Appropriations Act, 2008 (Post-9/11 
Veterans Educational Assistance Act of 2008). This final regulation 
includes the rules necessary to implement the provisions of the Post-9/
11 Veterans Educational Assistance Act of 2008 that govern the Post-9/
11 GI Bill.

DATES: Effective Date: This final rule will become effective on August 
1, 2009.

FOR FURTHER INFORMATION CONTACT: Brandye R. Terrell, Regulation 
Development Team Leader, Education Service, Department of Veterans 
Affairs (225C), 810 Vermont Avenue, NW., Washington, DC 20420. 
Telephone: (202) 461-9822. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: In a document published in the Federal 
Register on December 23, 2008 (73 FR 78876), VA published a proposal to 
establish VA regulations to implement the provisions of the Post-9/11 
Veterans Educational Assistance Act of 2008 that govern the Post-9/11 
GI Bill. Interested persons were invited to submit written comments on 
or before January 22, 2009. We received comments from 38 organizations 
and 8 individuals. We have made several changes based on these 
comments.

Eligibility

    One commenter stated that the period of eligibility for retirees is 
not specifically addressed and noted that there is no definition of 
``retiree'' in title 38, CFR. We did not define the term ``retiree'' or 
address retirees as a separate category in the regulation because an 
individual's period of eligibility is based on factors unrelated to the 
individual's status as a retiree. The period of eligibility for all 
individuals entitled to Post-9/11 GI Bill benefits is provided in Sec.  
21.9530. If the individual meets the eligibility requirements, the 15-
year period of eligibility begins on the last date of discharge, 
without regard to the reason for separation, even if the individual was 
discharged prior to August 1, 2009, the effective date of the program.
    We received three comments on the eligibility of members of the 
National Guard or Active Guard Reserve (AGR) serving on active duty 
under title 32, U.S.C. One commenter requested that these members be 
allowed to transfer Post-9/11 GI Bill benefits to their dependents. One 
commenter also suggested that any service under orders lasting 30 days 
or more that cite use of Operation Iraqi Freedom, Operation Enduring 
Freedom, or Operation Noble Eagle funds should be considered active 
duty for the purpose of the Post-9/11 GI Bill. Section 3301 of title 
38, U.S.C., defines ``active duty'' as having the same meaning given 
such term in 38 U.S.C. 101(21)(A) for members of the regular components 
of the Armed Forces. This paragraph states that active duty means full-
time duty in the Armed Forces, other than active duty for training. 
Active Duty is further defined in 38 U.S.C. 3301(1) to include a call 
or order to active duty under specific title 10 sections of the U.S. 
Code for members of the reserve components of the Armed Forces. Neither 
of the statutory definitions for active duty under section 3301(1) 
includes members of the National Guard or Active Guard Reserve serving 
under title 32, U.S.C.; therefore, we are unable to authorize 
eligibility for these individuals.
    One commenter requested clarification on why commissioned officers 
of the Public Health Service (PHS) are excluded from eligibility for 
Post-9/11 GI Bill benefits. Another commenter requested a review of 42 
U.S.C. 213(d) to determine if PHS officers qualify for the new benefit 
and suggested National Oceanic and Atmospheric Administration (NOAA) 
officers also be included as eligible. We agree that commissioned 
officers of PHS and NOAA are eligible for benefits under the Post-9/11 
GI Bill. In a digested opinion from 1985, our General Counsel read the 
provisions of 42 U.S.C. 213 regarding PHS and 33 U.S.C. 857-1 and 857-3 
(now in 33 U.S.C. 3002 and 3072, respectively) regarding NOAA as 
expanding the definition of ``Armed Forces'' in 38 U.S.C. 101(10) to 
also include PHS and NOAA for purposes of benefits administered by VA. 
See VADIGOP, 6-26-85 (8-28 Reentry in Active Service). Therefore, 
service as a commissioned officer of PHS or NOAA meets the ``active 
duty in the Armed Forces'' service requirement in section 3311 of title 
38, U.S.C.

Transfer of Entitlement

    Two commenters requested that retirees be allowed to transfer 
benefits to dependents. Two additional commenters wanted individuals to 
be allowed to transfer benefits to dependents even if they were unable 
to reenlist, or without their having to reenlist, if they met the 
minimum service requirements. While VA is responsible for administering 
payment of transferred benefits, the Department of Defense (DoD) is 
responsible for determining eligibility for transfer of entitlement to 
dependents. Specifically, the statute provides that the Secretary of 
Defense may authorize the Secretary of the Army, Secretary of the Navy, 
Secretary of the Air Force, and the Secretary of Homeland Security 
(with respect to the Coast Guard when it is not operating as a service 
in the Navy) to determine if individuals serving in the Armed Forces in 
their respective departments are eligible to transfer entitlement to 
dependents. As VA has no authority to determine eligibility for 
transfer of entitlement of educational assistance under the Post-9/11 
GI Bill, individuals inquiring about eligibility for transfer of 
entitlement should contact DoD for information.
    One commenter requested that VA clarify what happens to entitlement 
that was transferred under the Montgomery GI Bill (MGIB) if the 
transferor does not revoke the transferred entitlement before electing 
to receive benefits under the Post-9/11 GI Bill. Entitlement that was 
transferred under MGIB and not revoked prior to the transferor's 
election of Post-9/11 GI Bill benefits will remain available to the 
dependent to whom it was transferred. Dependents will remain eligible 
for transferred benefits under the provisions of the chapter from which 
benefits were transferred.
    One commenter disagreed with the exclusion of transferred benefits 
as marital property. We made no change to this rule in the final 
regulation because 38 U.S.C. 3319(f)(3) prohibits the treatment of 
transferred entitlement as marital property.
    We received one comment suggesting we specify the time limit for 
which dependents eligible for transferred entitlement may use their 
benefit. We make no change based on this comment as the period of 
eligibility for use of transferred benefits is listed in 38 CFR 
21.9530, in paragraph (d) for spouses and in paragraph (e) for 
children.
    One commenter recommended removing the kicker exclusion from the 
rate of payment for transferred benefits because there is no statutory 
provision limiting its payment to the dependent.

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We agree that there is no statutory reason why kickers should not be 
paid to transferees. The Selected Reserve kicker is excluded under 
MGIB. In trying to be consistent, we excluded kickers from the Post-9/
11 GI Bill also. While we intended to only exclude the Selected Reserve 
kicker, we inadvertently excluded all kickers. However, after reviewing 
the transfer-of-entitlement language used under MGIB and the Post-9/11 
GI Bill, we find that, while the MGIB language is more restrictive and 
specifically pinpoints the section under which payments should be 
determined, the language in the Post-9/11 GI Bill is broader and simply 
says that individuals should receive the amount that the transferor 
would receive. Based on this language, we have changed the rate of 
payment for transferred benefits under the Post-9/11 GI Bill to include 
any kicker to which the transferor is entitled.
    Another commenter suggested we clarify that ``veteran rate'' as 
used in 38 CFR 21.9570(k) means the dependent is eligible for the 
housing allowance. We do not agree that this term needs clarification. 
The term dependent is used to refer to both an eligible child and an 
eligible spouse or surviving spouse. A dependent child and surviving 
spouse will always receive transferred benefits in the same manner as 
an individual off active duty. This means that they will be eligible to 
receive the housing allowance if all other criteria are met. However, a 
dependent spouse will always receive benefits in the same manner as the 
transferor, thus he or she will not be eligible for the monthly housing 
allowance if the transferor is on active duty.
    We received one comment suggesting we add reduction in force (RIF) 
to the list in 38 CFR 21.9570(l) of exceptions to the requirement that 
the transferor complete the service agreement that allowed the 
transferor to participate in the transferability program. We contacted 
DoD for clarification of what constitutes completion of a service 
agreement. DoD considers any individual released due to a disability or 
as a result of RIF to have completed his or her service agreement. 
Therefore, we amended the final rule to clarify that release due to a 
disability or as a result of RIF constitutes completion of the service 
agreement, and therefore does not result in loss of transferred 
entitlement for the transferor's dependents.
    One commenter recommended allowing spouses to use their own Post-9/
11 GI Bill benefits in addition to transferred benefits under the Post-
9/11 GI Bill. We make no changes based on this comment since paragraph 
(m) of Sec.  21.9570 states that all dependents may do this. The 
definition of dependent includes a spouse. Thus, spouses and children 
are both covered under this section. Spouses may use their own Post-9/
11 GI Bill benefits and/or their transferred benefits.
    Another commenter requested that the extension of entitlement 
provided in Sec.  21.9635(o) be applied to a transferee if the 
transferor only transfers entitlement to one person. We do not agree to 
make this change because 38 U.S.C. 3319(d) specifically indicates that 
transferred entitlement may not exceed 36 months. Allowing an extension 
of entitlement for transferees would be a direct violation of the 
statute.
    One commenter disagreed with the definition of ``child'' used in 
the proposed regulation. The commenter indicated that by adopting the 
definition of child as it is defined in Sec.  3.57 (under the age of 18 
or, if they are enrolled in school, under the age of 23), VA is 
defining the term narrower than required by legislation. The commenter 
recommended VA define child without the age requirements and, in 
addition, not make a distinction between a child and a foster child or 
stepchild.
    Based on the definitions of child and spouse in the proposed 
regulation, DoD also expressed concern with regard to the loss of 
transferred entitlement for dependents who were deemed eligible for the 
program at the time of transfer, but who lost this eligibility based on 
their status at a later date. They contend that Post-9/11 GI Bill 
benefits belong to the veteran/servicemember and not the dependent. 
They base this on the provisions in 38 U.S.C. 3319(f) that allow the 
transferor to modify or revoke the transferred entitlement at any time 
within the transferor's 15-year eligibility period. DoD suggested VA 
apply the definitions of ``spouse'' and ``child'' effective the date of 
the transfer and disregard the dependent's status at the point the 
dependent utilizes the benefits.
    We agree, in part, with these concerns and made clarifying changes 
in the final rule. A transferor may elect to transfer his or her 
entitlement to his or her child, but at the time of the designation the 
child must still meet the 38 U.S.C. 101(4) definition of ``child,'' 
i.e., a legitimate child, a legally adopted child, a stepchild, or an 
illegitimate child, as those terms are explained in 38 CFR 3.57, and 
who is unmarried and under age 18, was permanently incapable of self-
support before reaching age 18, or after attaining the age of 18 years 
and until completion of education or training (but not after attaining 
the age of 23 years) is pursuing a course of instruction at an approved 
educational institution. Thereafter, the child's subsequent marriage 
will not affect his or her entitlement. Finally, a child may continue 
to use entitlement so transferred until reaching age 26. If a 
transferor elects to transfer his or her entitlement to a spouse, a 
subsequent divorce will not affect the transferee's entitlement; 
however, the transferor retains the right to revoke or modify the 
transfer at any time.

Enrollment Certification

    We received three comments requesting clarification on whether 
schools will be required to report the cost of dropped courses in order 
for VA to properly judge whether or not there has been an overpayment. 
One of the commenters asked if there will be a time limit for any 
refunds due to VA. We make no changes based on these comments. Schools 
are required to report the established charges associated with an 
individual's enrollment and, in the event an individual reduces the 
number of courses he or she is enrolled in, the established charges for 
the courses in which he or she remains enrolled. This process is the 
same process that is used in other educational assistance programs to 
certify enrollments and reductions of individuals training at less than 
one-half time or who are on active duty.
    Furthermore, similar to existing procedures for other educational 
assistance programs, individuals will still be responsible for 
negotiating repayment of debts with our Debt Management Center or have 
money recouped from future payments. Schools that are required to 
return funds to VA, regardless of the reason, will send the money back 
electronically or send a payment to the Regional Processing Office's 
agent cashier.
    We received two related comments regarding which charges should be 
reported to VA and whether VA will require certification of actual 
tuition and fees or estimated tuition and fees. One commenter stated 
that actual tuition and fees cannot be provided until an individual is 
invoiced and would require that schools certify each term separately. 
One commenter also requested clarification on whether fees should be 
reported regardless of pending aid, scholarships, state grants, etc. We 
make no changes based on these comments. The institution of higher 
learning must certify the eligible individual's enrollment before he or 
she may receive educational assistance and 38 U.S.C. 3313(h)(2) 
requires that VA

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pay based on the actual tuition and fees charged to the student. 
Schools will be required to report actual tuition and fees in 
accordance with the statute.
    One commenter requested that VA clarify the regulation to state 
that term-based institutions operating on a year-round basis should 
report on the same basis as other term-based institutions. We revised 
the language in paragraph (b) of Sec.  21.9720 to clarify that 
institutions of higher learning organized on a year-round basis will 
report on the same basis as term-based institutions unless they do not 
offer courses on a term, quarter, or semester basis, in which case they 
will report enrollment for the length of the course.

Payments

    One commenter indicated there currently is an approved 
apprenticeship program at an institution of higher learning and 
requested clarification on whether this program is payable under the 
Post-9/11 GI Bill. We cannot pay benefits for an apprenticeship or on-
the-job training program at an institution of higher learning acting in 
the capacity of an employer. In order to be approved for Post-9/11 GI 
Bill benefits, individuals must be pursuing an approved program of 
education offered at an institution of higher learning. Section 
21.4258(b)(iv), 38 CFR requires that institutions of higher learning 
list all approved programs of education in their catalog. If the 
program of education is offered by the institution of higher learning 
and is approved for the purposes of 38 U.S.C. chapter 30, VA will make 
the appropriate payment. Apprenticeship and on-the-job training 
programs are offered by employers and are generally not available to 
the entire student population. We have clarified the definition of 
``program of education'' to state that ``the curriculum or combination 
of courses pursued must be listed in the institution of higher 
learning's catalog and included in the approval notice provided by the 
State approving agency to VA in accordance with Sec.  21.4258(b)(iv).''
    Three commenters recommended expanding the advance payment option 
to include all educational assistance offered under the Post-9/11 GI 
Bill rather than limiting it to just the monthly housing allowance. 
Section 3680(d) of title 38, U.S.C., limits the amount of an advance 
payment to an amount equal to the first month, or fraction thereof, in 
which the individual is pursuing training plus the amount for the 
subsequent month of training. Under the Post-9/11 GI Bill, VA is 
required to pay the tuition and fees, books and supplies stipend, and 
other payments (e.g., rural relocation, licensing or certification test 
reimbursement) in a lump sum. As a result, we are unable to apply the 
advance payment provisions to such lump-sum payments.

Overpayments

    We received three comments asking whether individuals who withdraw 
as a result of being called to active duty will be required to repay 
benefits. One of the commenters also asked whether the school will be 
required to return the funds if an individual is called to active duty. 
We make no changes based on these comments. Individuals who withdraw as 
a result of being called to active duty will not have to repay tuition 
and fees, Yellow Ribbon Program contributions, or the book stipend. If 
they are in receipt of the housing allowance, it will be discontinued 
at the end of the month in which the withdrawal occurred. If the school 
processes a refund for tuition and/or fees, it should be issued to the 
student following the regularly prescribed standards and practices of 
the institution.
    One commenter proposed that the institution of higher learning be 
responsible for making a refund to VA when the student does not 
register for a class certified in advance of the registration period, 
and for which the institution received tuition and fees on behalf of 
the student. We agree with this comment and have clarified in Sec.  
21.9695(b) that an overpayment of educational assistance paid to the 
institution of higher learning on behalf of an eligible individual 
constitutes a liability of the individual unless the individual never 
attended the term, quarter, or semester certified by the institution of 
higher learning. When an individual never attends a term, quarter, or 
semester certified by the institution of higher learning, the 
institution must return to VA all educational assistance received under 
the provisions of 38 U.S.C. chapter 33 on behalf of the individual.
    Two commenters wanted to know why individuals will be held 
accountable for repayment of tuition and fees if the money is sent 
directly to the school, especially since individuals in VA's Vocational 
Rehabilitation and Employment Program are not required to make 
repayment of tuition and fees. We make no changes in the final rule 
based on this comment, but we are providing the following clarification 
concerning this issue. Section 3313(a) of title 38, U.S.C., states that 
the Secretary shall pay to each individual entitled to educational 
assistance the amounts specified in subsection (c) to meet the expenses 
of such individual's subsistence, tuition, fees, and other costs for 
pursuit of such program of education. Paragraph (g) of that section 
subsequently directs that payment of the tuition and fees be made 
directly to the institution of higher learning; however, it is clear 
that the benefit and the associated responsibilities belong to the 
individual.
    Additionally, the authority to establish an overpayment against a 
school is limited by statute, per 38 U.S.C. 3685(b), to instances where 
the Secretary finds that an overpayment has been made to a veteran or 
eligible person as the result of willful or negligent failure to report 
or false certification. Therefore, unless an overpayment results from 
the actions or inactions described in section 3685(b), VA cannot 
collect from the school amounts of tuition and fees that were properly 
paid on behalf of the individual.
    Conversely, if VA makes an erroneous or improper payment not 
resulting from the negligent or willful actions or inactions on the 
part of a school, the erroneous or improper payment may be recovered 
from the receiver. This situation may arise if a school certifies an 
individual for multiple terms but the individual does not attend all of 
the terms certified. Section 21.4203 of title 38, CFR provides that 
schools shall report without delay a change in enrollment. If VA issues 
a tuition and fees payment to the school on behalf of an individual for 
a term that the individual never attends VA will collect the full 
amount of the payment from the school.
    One commenter suggested Sec.  21.9695(b)(3) be revised to clarify 
that if an individual does not complete one or more courses, but does 
complete at least one course, that the individual will not have an 
overpayment equaling the total amount of all educational assistance 
paid, but rather only for the course or courses the individual did not 
complete. Based on this comment, we clarified this section to indicate 
that if a student withdraws from a course or courses, the overpayment 
will only be established for the course or courses from which the 
student withdraws, not the amount of all educational assistance for 
that enrollment period.
    One commenter requested clarification of how an ``incomplete'' 
grade designation, for which the individual is given additional time to 
finish a course, will be treated and whether it will be considered an 
overpayment. We agree this issue should be addressed in the final rule, 
and have added a paragraph to

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Sec.  21.9635(f) clarifying that if the institution of higher learning 
records an incomplete grade for an individual's course (or courses) and 
allows the individual additional time to complete the coursework, VA 
will not create an overpayment for those course(s) unless one of the 
following occurs: The individual fails to complete the course within 
the regularly prescribed standards of the institution or one year from 
the date the incomplete was assigned, whichever is earlier, or the 
individual is permanently assigned a nonpunitive grade.
    One commenter requested that schools be required to refund money to 
VA that would otherwise normally be refunded to the student based on 
the school's refund policy. We make no changes based on this comment. 
Institutions of higher learning have refund policies individualized to 
their institutions and students would not know when or if a refund was 
sent to VA. Additionally, VA will determine the amount of the student's 
overpayment, if any, after processing the change in enrollment. The 
amount the school refunds to the student and the amount the student 
owes to VA will generally not be equal as VA will pay to the end of the 
month for any reduction during the drop add period or for which the 
student provides evidence of mitigating circumstances. To reduce 
confusion on how much is owed and to whom, schools should continue to 
refund money to students based on their regularly established policies.

Tuition and Fees

    Two commenters requested clarification on why, in Sec.  21.9640(a), 
the 70 percent level would apply instead of the 80 percent level if the 
individual met the service requirements at both levels. One of the 
commenters suggested removing the requirement to use the 70 percent 
level instead of the 80 percent level because it is not justified 
legislatively. We do not agree to make this change because 38 U.S.C. 
3311(e) specifically provides that individuals entitled to educational 
assistance under paragraphs (4) and (5) of 38 U.S.C. 3311(b) will be 
entitled to educational assistance using the provisions of paragraph 
(5). Paragraph (4) establishes eligibility for individuals with at 
least 24 months but less than 30 months of service, including entry 
level and skill training. Paragraph (5) establishes eligibility for 
individuals with at least 18 months but less than 24 months of service, 
excluding entry level and skill training. If both levels of service 
requirements are met, the lower percentage level must be used; 
therefore, applying the higher percentage level would be contrary to 
the clear requirement of the statute.
    We received several comments regarding the effectual relationship 
between tuition and fees payments under the Post-9/11 GI Bill and other 
forms of aid, such as State veterans' tuition programs. One of the 
commenters suggested that 1st payer/2nd payer rules be clarified so 
that all parties clearly understand who pays what and when. VA will pay 
based on the amount the student is charged, not the amount the student 
has remaining after State programs have contributed funds. Schools 
should certify the total amount of tuition and the total amount of fees 
that a student is charged. The amount reported to VA should not be 
reduced for pending or subsequent payments to be credited to the 
student's account from State programs, scholarships, grants, or any 
title IV funds (including Pell Grants). If an institution is not able 
to charge a veteran for tuition due to a State waiver or other State 
funded program, the school should not report tuition to VA. However, if 
the State reimburses the institution and/or veteran for tuition and 
fees after the individual has been billed, then the institution should 
report the original amount charged to the student. The amount of 
tuition and fees submitted to VA in these instances should not be 
reduced based on any additional funds received that will reduce the 
student's out-of-pocket expenses. One commenter also asked that we 
clarify whether a student can opt out of State assistance to receive 
educational assistance under the Post-9/11 GI Bill. There is no 
requirement in 38 U.S.C. chapter 33 that requires an individual to opt 
in or out of existing State programs in order to receive benefits under 
the Post-9/11 GI Bill. The statute simply states that VA may pay all or 
a portion of the cost of the actual tuition and fees charged the 
individual. Each State will need to review the laws that govern their 
State programs to determine if individuals may opt in or out of 
receiving assistance under the State funded programs.
    One commenter suggested VA provide a non-exhaustive list of 
approved fees to clarify which fees would be payable under the Post-9/
11 GI Bill and further suggested that health insurance premiums be 
included on the list. Another recommended that VA redefine fees to 
include those charged to all students (unless waived) enrolled in the 
same program of education as the VA benefit recipient. This commenter 
also recommended removing the requirement that the amount of fees that 
can be paid is limited to those charged to undergraduates. Finally, one 
commenter indicated support for the definition as stated in the 
proposed regulation. Based on these comments, we are amending the 
definition of fees in the final rule. Accordingly, ``fees'' will 
include any mandatory charges (other than tuition, room, and board) 
that are applied by the institution of higher learning for pursuit of 
an approved program of education including, but not limited to, health 
insurance premiums, freshman fees, graduation fees, and lab fees. The 
term does not include study abroad fees unless the fees are assessed 
for courses that are required for completion of the program of 
education. The statute requires VA to calculate the highest in-State 
amount payable for tuition and fees using undergraduate tuition and 
fees. However, individuals may receive payment for tuition and fees for 
graduate programs or other approved programs up to the amount of the 
highest in-State amount payable for undergraduate fees.
    One commenter suggested that VA clarify that the amounts payable 
for established charges and the book stipend are adjusted by the 
individual's eligibility percentage. We make no changes based on this 
comment. Section 21.9640(a) indicates that the amounts payable for 
pursuit of an approved program of education under that section are 
subject to the individual's eligibility percentage as determined by his 
or her aggregate length of creditable active duty service after 
September 10, 2001.
    One commenter expressed concern that the tuition and fees payments 
made on behalf of students attending part-time are not lowered based on 
the student's rate of pursuit. The commenter indicated that not 
reducing the maximum amount payable based on rate of pursuit will 
reward students for pursuing education part-time instead of full-time. 
We do not agree that this is an area of concern. Many schools charge 
students proportionately less for part-time enrollment because they 
base charges on a per-credit-hour rate. Furthermore, the statute does 
not require VA to reduce the maximum amounts payable proportionally 
based on rate of pursuit. It only dictates that the maximum payable be 
reduced based on the eligibility percentage. Nonetheless, based on 
several other comments regarding tuition and fees payments, we are 
amending the final rule to clarify that individuals will receive a 
tuition payment not to exceed the amount determined by multiplying the 
number of certified credit hours for the term, quarter, or semester by 
the

[[Page 14658]]

highest in-State amount charged per credit hour. Individuals will 
receive the amount for fees certified for the term, quarter, or 
semester, not to exceed the highest amount of fees that could be 
charged in any term.
    One commenter suggested allowing schools to certify the actual 
amount of tuition and fees charged minus any applicable military 
tuition assistance (TA) without requiring additional paperwork from the 
individual student. We make no changes based on this comment. 
Currently, VA requires that the student submit the TA form to VA prior 
to the issuance of a (top-up) payment. This form is necessary to 
determine the appropriate amount of tuition and fees VA will pay. 
Schools may submit the top-up form for the individual; however, VA 
should have the form on file and use it to make the determination of 
how much payment is due. Requiring certifying officials to make 
determinations on the amount of top-up payment an individual is due 
would add an additional step in the process that already exists and 
create an unnecessary burden on the schools. The TA form already 
provides VA with all of the information needed to determine the 
appropriate payment.
    We received one comment requesting that the maximum rate for 
tuition and fees fluctuate during the academic year whenever the State 
makes changes in the tuition and/or fees rates after the academic year 
begins. We make no changes based on this comment other than clarifying 
that the maximum amounts payable for tuition and fees, as published, 
will be effective for each term, quarter, or semester that begins 
during the academic year. The State approving agency of jurisdiction 
will determine each State's highest in-State amounts payable for 
tuition per credit hour and for fees each term during an academic year. 
VA will publish the maximum amounts payable for tuition and fees on the 
GI Bill Web site at http://www.gibill.va.gov and in the Federal 
Register by August 1st of each year to allow institutions of higher 
learning and students to take this information into consideration when 
making relevant decisions. If VA were to change these figures each time 
an institution of higher learning or a State changed the amount of 
tuition or fees it charged, it could adversely affect the students if 
the amount was decreased and could adversely affect institutions of 
higher learning participating in the Yellow Ribbon Program if the 
amount increased.

Book Stipend

    One commenter recommended VA issue promissory notes for the book 
stipends. We make no changes based on this comment. Book stipends are 
paid directly to the individual. VA sees no benefit in issuing a 
promissory note for books instead of issuing the book stipend payment 
directly to the individual.
    Several commenters expressed concern about the method of payment 
for the book stipend. Four of these commenters asked how the summer 
term or mini-terms would impact the payment, especially since many 
students do not attend the summer sessions. Two commenters suggested 
that VA redefine academic year so that individuals could receive the 
full book stipend and two commenters requested the method of 
calculating the book stipend be clarified. Based on these comments, we 
clarified the method VA will use to determine how the book stipend 
payment is calculated. A book stipend of up to $1,000 is available to 
veterans (and transferees). Section 3313(c)(1)(B)(ii) of title 38, 
U.S.C., provides a formula for determining the amount of the book 
stipend payable each academic year. The formula instructs VA to pay a 
portion of the book stipend equal to the amount determined by 
multiplying $1,000 by the fraction of the academic year that the term, 
quarter, or semester represents. We choose to divide the academic year 
by 24 credit hours (the minimum number of credit hours generally 
considered to be full-time for an undergraduate in an academic year). 
Using this calculation, an individual eligible for 100 percent of the 
amounts payable under the Post-9/11 GI Bill who is pursuing training at 
more than one-half-time will receive $41.67 for each credit hour 
certified up to 24 credit hours in an academic year.

Monthly Housing Allowance

    Several comments were received agreeing with VA's interpretation of 
the statute with regard to how distance learning courses affect 
eligibility for the monthly housing allowance (MHA); however, many 
other commenters expressed concern that the MHA is not available for 
additional categories of individuals. While one commenter supported 
prohibiting individuals from receiving the MHA if they are pursuing 
programs of education entirely by distance learning because of the 
potential for abuse, six commenters requested that the MHA be available 
to individuals pursuing a program of education entirely by distance 
learning. One of the commenters in favor of the MHA for distance 
learners also recommended that it be paid to these students based on 
the ZIP code of the student's address instead of the school's ZIP code 
as is done for students taking in-residence courses. Other commenters 
requested clarification on how partial pursuit of distance learning 
impacts the receipt of the MHA. Section 3313(c) of title 38, U.S.C., 
prohibits an individual from receiving the MHA if the individual is 
pursuing a program of education offered by distance learning. While we 
have interpreted this as broadly as possible to include individuals 
taking even one course in-residence as eligible to receive the MHA (if 
all other requirements are met), VA would be in violation of the 
statute if we allowed individuals pursuing a program of education 
entirely by distance learning to receive the MHA. Additionally, another 
commenter requested that VA define a qualifier for ``a single resident 
course.'' The commenter indicated that distance learning institutions 
may begin creating one-credit courses or one-half credit courses just 
to meet the residency requirement. It was suggested that VA set a 
minimum unit or percentage of courses that must be pursued in residence 
in order for individuals to qualify for the MHA. While VA notes the 
concern of the commenter, we disagree that institutions will create 
frivolous courses solely for the purpose of qualifying their students 
for the MHA. Further, many of the individuals enrolled in distance 
learning courses are unable to attend school in the traditional 
classroom setting due to other life circumstances. However, VA may only 
pay educational assistance under the Post-9/11 GI Bill for an approved 
program of education. Any courses pursued must be necessary for the 
attainment of the individual's identified objective. If the course has 
not been approved for pursuit of an approved program of education by 
the State approving agency or the course is not required for an 
individual's objective, VA will not be able to provide educational 
assistance for such course or include any credit for such course when 
determining eligibility for the MHA.
    One commenter recommended allowing veterans to receive the MHA when 
training at more than one-half time but less than three-quarter time. 
We are retaining the wording contained in the proposed regulation that 
will permit individuals who are training at greater than one-half time 
to receive the MHA if all other criteria are met. Any

[[Page 14659]]

individual who is not on active duty, who is enrolled in at least one 
in-residence course, and who is pursuing a program of education with a 
rate of pursuit greater than 50 percent, will receive the housing 
allowance.
    Two commenters recommended providing a monthly housing allowance to 
individuals attending foreign schools using the DoD's overseas housing 
allowance (OHA) rates for the locale where the individual is residing, 
rather than the average of the monthly housing allowances payable in 
the United States. One commenter also requested that we clarify how the 
``average'' will be determined. We considered these comments, but make 
no substantive changes in the final rule other than to clarify that we 
will use the unweighted arithmetic mean to determine the average 
monthly housing allowance payable. DoD adjusts the basic allowance for 
housing (BAH) rates effective the first of January each year. The OHA 
rates are reviewed, and are subject to change, every 6 months. To 
maintain consistency in applying the MHA rate changes, VA will continue 
to use the national average to determine the maximum MHA payable for 
students attending foreign institutions.
    We received one comment suggesting VA use the rate of pursuit to 
adjust the amount of MHA an individual will receive. The statute does 
not require that we limit the housing allowance based on rate of 
pursuit. We are only directed to limit it based on the individual's 
eligibility percentage level. We have decided not to unnecessarily 
limit the housing allowance and will pay individuals according to the 
direction provided in 38 U.S.C. 3313(c).
    One commenter recommended the determination of eligibility for the 
MHA be established annually based on the individual's program rather 
than basing it on courses taken in a single term. We make no changes 
based on this comment. It would be extremely difficult for VA to 
determine the amount of MHA to pay on an annual basis. To do so would 
require that every school certify every student for all terms during 
the academic year. All institutions do not require students to register 
for every term (Fall, Winter, Spring, Summer) at the start of the 
school year. Having such a requirement would require students to 
register and schools to report actual tuition and fees for an entire 
year. Many schools cannot report actual tuition and fees until 
registration has ended. Determining receipt of MHA annually would 
burden the schools to make major changes in their registration and 
certification processes.

Kickers

    We received four comments regarding payment of Post-9/11 GI Bill 
kickers. One commenter felt strongly that the Post-9/11 GI Bill kicker 
payments should not be denied to active-duty members, students whose 
rate of pursuit is one-half time or less, and students pursuing a 
program of education entirely by distance learning. One commenter 
requested an explanation as to how the MHA and the kicker are related. 
Two commenters requested that the final rule permit the kicker to be 
paid even if the individual is not entitled to receive the MHA. One of 
these commenters suggested increasing a ``zero'' dollar MHA payment by 
the amount of the Post-9/11 GI Bill kicker and the other commenter 
suggested paying the Post-9/11 GI Bill kicker in a lump sum payment in 
the same manner as the MGIB and Selected Reserve kickers are paid. We 
make no changes based on these comments. Section 3316(a)(1) of title 
38, U.S.C., provides that DoD kickers will increase the monthly amount 
otherwise payable under 38 U.S.C. 3313(c)(1)(B). Section 3313(c)(1)(B) 
of title 38, U.S.C., is the section that authorizes the monthly housing 
allowance. Section 3313(a) of that title specifically indicates that 
the amounts specified in subsection (c) will be paid to individuals 
entitled to educational assistance under the Post-9/11 GI Bill who are 
pursuing an approved program of education, other than a program 
discussed in subsections (e) and (f). Subsection (e) details assistance 
payable for individuals on active duty, and subsection (f) details 
assistance payable for individuals pursuing training at one-half time 
or less. Neither subsection (e) nor (f) references nor authorizes a 
monthly housing allowance. VA is unable to increase the amount of an 
assistance payment that the individual is not eligible to receive. 
Additionally, section 3313(c)(1)(B)(i) specifically excludes the 
housing allowance for individuals pursuing a program of education 
offered entirely by distance learning. As a result of these statutory 
provisions, VA is unable to make Post-9/11 GI Bill kicker payments for 
a term, quarter, or semester in which an individual is on active duty, 
for an individual whose rate of pursuit is one-half time or less, or 
for an individual who is pursuing a program of education entirely by 
distance learning.
    Another commenter inquired whether students will be required to 
fill out additional paperwork to receive MGIB kicker payments while 
receiving benefits under the Post-9/11 GI Bill. We make no change based 
on this comment because no additional paperwork is required. DoD will 
continue to notify VA of MGIB kicker eligibility. If an individual is 
eligible, VA will process the MGIB kicker payment without any 
additional paperwork from the individual.

Chapter 30 Refunds

    One commenter requested clarification on how refunds of MGIB 
contributions will be handled, and asked if the refund will be 
automatic or if the individual will have to complete a form to request 
the refund. Another commenter asked when an individual will actually 
receive the refund. A third commenter recommended that a refund of the 
MGIB contributions be made even if the individual is not in receipt of 
the monthly housing allowance. We make no changes based on these 
comments. If the individual is in receipt of the housing allowance, VA 
will automatically refund the appropriate amount of the MGIB 
contributions when the individual exhausts his or her entitlement under 
the Post-9/11 GI Bill. Section 5003(c)(6) of Public Law 110-252 (122 
Stat. 2377-2378) states that an individual may receive a refund of the 
basic contributions paid toward MGIB as an increase to the last monthly 
stipend payable to the individual under 38 U.S.C. 3313(c)(1)(B), i.e., 
the monthly housing allowance. VA has no authority to ignore the 
statute and pay the refund when an individual is not eligible to 
receive the monthly housing allowance.
    Two commenters addressed the additional $600 contribution (buy-up) 
that can be made towards increased educational assistance under MGIB. 
One commenter wanted to know if these contributions will also be 
refunded. The other commenter requested the final rule clearly state 
that the $600 is not refundable, if that is the case. Since the statute 
does not authorize a refund of the $600 contribution, we changed the 
wording in the final rule to clearly reflect that these contributions 
cannot be refunded.

Tutorial Assistance

    One commenter requested clarification regarding whether an 
individual who received tutorial assistance under MGIB could also 
receive up to $1,200 for tutorial assistance under the Post-9/11 GI 
Bill. We make no changes based on this comment. Individuals who 
received tutorial assistance under MGIB may receive up to $1,200 for 
tutorial assistance under the Post-9/11 GI Bill. The $1,200 payable for 
tutorial assistance is the maximum amount that

[[Page 14660]]

can be paid for such assistance under each program.
    Another commenter recommended removing the requirement that the 
individual be pursuing a program of education on a one-half time or 
more basis in order to be eligible for receipt of tutorial assistance. 
We make no changes based on this comment because the requirement is 
statutory. Section 3314(b)(1) of title 38, U.S.C., incorporates the 
provisions of 38 U.S.C. 3492, which requires that individuals be 
pursuing training at one-half time or more to receive tutorial 
assistance.
    We received one comment indicating that there should not be a 
requirement that a student be failing a course before tutorial 
assistance can be authorized. We make no changes based on this comment. 
Section 3314(b)(2) of title 38, U.S.C., requires that the professor or 
teacher certify that tutorial assistance is essential to correct a 
deficiency of the student in a course that is required for satisfactory 
pursuit of the student's program of education. While this requirement 
is statutory, it should not be construed to mean tutorial assistance is 
only available if the individual is already failing the course. If the 
professor or teacher identifies that the individual has a justifiable 
need for tutorial assistance or the individual will not be able to 
continue pursuing his or her approved program of education, either in 
that course or as a prerequisite for other required courses, then VA 
would consider tutorial assistance to be warranted.

Yellow Ribbon Program

    The proposed regulation provided that institutions of higher 
learning agree to the following to participate in the Yellow Ribbon 
Program--
    <bullet> Provide contributions to eligible individuals who apply 
for such program at that institution (in a manner prescribed by the 
institution) on a first-come-first-served basis, regardless of the rate 
at which the individual is pursuing training (i.e., full-time versus 
less than full-time), in any given academic year;
    <bullet> Make contributions toward the program on behalf of the 
individual in the form of a waiver;
    <bullet> State the maximum number of individuals for whom 
contributions will be made in any given academic year;
    <bullet> Waive the same percentage of unmet established charges for 
all eligible individuals in any given academic year; and
    <bullet> Commit to provide contributions for eligible individuals 
for the entire academic year specified in the agreement.
    Several commenters requested the ability to set different 
contribution levels for one or more subelements (e.g., School of 
Business, School of Liberal Arts) of the institution of higher 
learning. Another commenter requested the ability to set the 
contribution level by student status (e.g., undergraduate, graduate, 
doctoral). The commenters noted that the subelements within the 
institution of higher learning have their own course schedule, tuition 
and fee structure, funding, and administrative requirements. 
Additionally, it was noted that tuition and fees for graduate students 
are generally higher than that of undergraduate students.
    Five commenters requested that institutions of higher learning have 
the ability to set the maximum amount contributed in dollar amounts. 
The commenters noted that it would be easier for institutions of higher 
learning to budget for the program if the institutions had the ability 
to set a maximum dollar amount per student. They stated that using a 
percentage would require institutions to be more conservative in 
contributions.
    We received several comments regarding the requirement that schools 
provide contributions in the form of a waiver. Some commenters 
requested that the term ``waiver'' be defined while other commenters 
requested that the ``waiver'' requirement be removed altogether. The 
commenters noted that some schools do not ``waive'' tuition and fees as 
a matter of policy. Other commenters asked if fee remission or a 
tuition discount qualified as a waiver.
    We also received comments regarding continuous eligibility under 
the Yellow Ribbon Program. VA's Web site stated that institutions of 
higher learning must agree to continue Yellow Ribbon Program 
contributions for participating students as long as the institution 
continues to participate in the program and the student remains in good 
academic standing in accordance with the regularly prescribed standards 
of the institution. One commenter noted that it would be difficult for 
institutions to commit to provide contributions in subsequent years due 
to the novelty of the program, while two commenters suggested that VA 
state that contributions will continue throughout all subsequent years 
of continuous enrollment.
    We agree, in general, with the above comments and, based on those 
comments, have substantially changed the requirements for participation 
in the Yellow Ribbon Program. VA has amended the Yellow Ribbon Program 
provisions to allow institutions of higher learning to set contribution 
levels by student status or subelement, state the maximum dollar amount 
that may be provided to each participant during the academic year, and 
provide contributions by direct grant, scholarship, or otherwise. We 
also clarified that institutions of higher learning must agree to 
provide Yellow Ribbon Program contributions to participating students 
as long as the institution participates in the program and the student 
remains in good academic standing in accordance with the regularly 
prescribed standards of the institution, and to provide the maximum 
amount of contributions payable for a participating individual each 
term he or she is enrolled as long as the amount paid will not exceed 
the maximum dollar amount payable for the academic year as specified in 
the agreement.
    We received three comments requesting the ability to amend 
agreements during the academic year to increase the maximum number of 
students eligible to participate in the program, and we received one 
comment requesting a formal procedure to amend the agreement and the 
ability to negotiate the terms of the agreement prior to the beginning 
of the academic year. VA will continue to require that the initial 
agreement be binding for the entire academic year. While it is 
commendable that institutions of higher learning want to provide Yellow 
Ribbon Program contributions for additional individuals if money is 
available, the institutions are only required to report a maximum. The 
maximum number of participants listed in the agreement could be set 
high enough to cover all individuals that may apply. Additionally, VA 
will draft an agreement in accordance with statute that will be used in 
the administration of the Yellow Ribbon Program. For equality and 
consistency, VA chooses to reject the idea of allowing schools to 
individually negotiate the terms of the agreement. Having a standard 
agreement for all participating institutions will allow potential 
Yellow Ribbon Program participants to easily compare the program at 
different institutions.
    We also received three comments expressing opposition to the first-
come-first-served rule. Specifically, two commenters noted that 
requiring schools to provide contributions based on a first-come-first-
served basis does not allow the institution to determine who is 
selected to participate and one commenter noted that several 
institutions offer financial aid on a need-basis only. VA included the 
first-come-first-served rule to ensure that there was a fair method of 
determining

[[Page 14661]]

who received Yellow Ribbon Program contributions at each participating 
institution. While VA notes that many schools provide financial aid on 
a need-basis only, the Yellow Ribbon Program is not a need-based 
program and should be available to any individual (and/or dependent of 
the individual) who has met the requirements to qualify for the 
program.

Elections

    The proposed regulations stated that individuals eligible for 
educational assistance under 38 U.S.C. chapter 30 or 10 U.S.C. chapter 
106a, 1606, or 1607 and who have met the service requirements to 
qualify for the Post-9/11 GI Bill must make an irrevocable election to 
receive educational assistance under the Post-9/11 GI Bill in lieu of 
one of the above-mentioned programs. One commenter noted that it is not 
fair for students to make an irrevocable election for a new benefit 
without access to complete and accurate information because it will 
permanently affect the course of their education. Another commenter 
suggested that VA allow individuals at least one opportunity to change 
their mind after making the irrevocable election or provide benefits 
counseling. Section 5003(c)(8) of Public Law 110-252 (122 Stat. 2375-
2378) states that elections to receive educational assistance under the 
Post-9/11 GI Bill in lieu of other specific educational assistance 
programs are irrevocable. Accordingly, VA is unable to regulate 
exceptions to the provision. However, individuals may call VA's 
customer service number for assistance in making an informed decision 
before making an election. Additionally, VA offers vocational and 
educational counseling to eligible individuals upon request.
    We also received comments requesting clarification on how the 
irrevocable eligibility elections would be made. VA is amending 
proposed Sec.  21.9520(c) to specify that elections may be made by 
properly completing VA Form 22-1990, submitting a Post-9/11 GI Bill 
transfer-of-entitlement designation to DoD, or by submitting a written 
statement that includes identification information, the benefit being 
relinquished (if applicable), the effective date of the election, and a 
statement acknowledging that the individual understands that the 
election is irrevocable.
    Three commenters requested that VA amend proposed Sec.  21.9635(w) 
to clarify that an election to receive benefits under an existing 
educational assistance program on or after August 1, 2009, does not 
negate the opportunity to elect or use the Post-9/11 GI Bill at a later 
date. As proposed this provision stated that if an individual was 
eligible under more than one program and the individual elected to 
receive benefits under a previously existing program that VA would 
terminate assistance under the Post-9/11 GI Bill effective the date of 
the election. The elections referred to in Sec.  21.9635(w) are not 
irrevocable eligibility elections. Individuals who are eligible for the 
Post-9/11 GI Bill and another educational assistance program at the 
same time may specify under which program they wish to receive payment. 
VA is amending the language of the section to clarify that individuals 
who are in receipt of benefits under the Post-9/11 GI Bill who choose 
to receive benefits under another program will receive benefits under 
such program effective the first day of the enrollment period during 
which the individual requested to receive benefits under the other 
program.

Academic Year

    Five commenters suggested that VA amend the dates of the academic 
year to coincide with the Department of Education's award year that 
runs from July 1st of each calendar year through June 30th of the 
subsequent calendar year. VA set the beginning date of each academic 
year of August 1st to coincide with the effective date of the Post-9/11 
GI Bill benefit for clarity and ease of administration. In determining 
the maximum amounts payable during each academic year, VA will obtain 
the highest tuition per credit hour and the highest fees that can be 
charged an undergraduate student at a public institution in each State 
from the State approving agency (SAA) of jurisdiction. Based on 
feedback from several SAAs, many institutions of higher learning do not 
set the rates for tuition and fees until June or July of each year. 
Moving the beginning date of the academic year to July would not 
provide VA adequate time to update systems, post the new maximums on 
the Web site, or timely process claims with the newly established 
maximums in July.

Rate of Pursuit

    The proposed regulation states that the rate of pursuit will be the 
percentage determined by dividing the number of course hours an 
individual is enrolled in by the number of course hours considered to 
be full-time at the institution of higher learning. Additionally, in 
proposed Sec.  21.9750, VA defined full-time pursuit to equal 14 credit 
hours unless the institution of higher learning certifies that all 
undergraduate students enrolled for 13 credit hours, or for 12 credit 
hours, are charged full-time tuition and are considered full-time for 
other administrative purposes. We received comments requesting that VA 
define full-time enrollment as a minimum of 12 credit hours. VA is 
unable to consider a minimum of 12 credit hours as full-time training 
for all institutions. Section 3688(a)(4) of title 38, U.S.C., defines 
``full-time'' as a minimum of 14 hours unless the institution certifies 
that all undergraduate students enrolled for at least 12, but less than 
14, hours are considered full-time for other administrative purposes.
    One commenter suggested that VA always consider traumatic brain 
injury (TBI) veterans to be training at full-time (a rate of pursuit of 
100%) even when the training time (or rate of pursuit) does not equal 
full-time. The commenter noted that TBI veterans are sometimes unable 
to pursue a full course load and should not be penalized due to their 
disability. Unfortunately, there are no provisions in the statute that 
will allow VA to pay a different rate to a specific class of veterans.
    Another commenter requested that VA pay educational assistance for 
courses that are not part of an individual's program of education. 
Section 3452 of title 38, U.S.C, defines program of education to 
include any curriculum or combination of unit courses or subjects 
pursued at an educational institution that is generally accepted as 
necessary to fulfill requirements for the attainment of a predetermined 
and identified educational, professional, or vocational objective. VA 
will pay for refresher, remedial, and deficiency courses that are 
required for the attainment of an objective even though those courses 
will not be credited towards the objective. However, VA is unable to 
pay for courses that are not required for pursuit of the individual's 
identified objective.

Mitigating Circumstances

    We received comments requesting clarification of when mitigating 
circumstances will be considered to exist and which mitigating 
circumstances will be accepted by VA. One commenter asked VA to include 
mental illness in the listing of acceptable mitigating circumstances. 
In this final rule, VA added a definition for mitigating circumstances 
that provides examples of situations that VA will consider acceptable. 
Additionally, we modified Sec.  21.9635 to clarify that mitigating 
circumstances will always be considered to exist for the first 
reduction or withdrawal of less than seven hours. We also received a

[[Page 14662]]

comment requesting that we expand the consideration of existing 
mitigating circumstances to more than the first instance of reduction 
or withdrawal and increase the number of hours in the first instance of 
withdrawal from six credit hours to eight credit hours for which 
mitigating circumstances will automatically be considered to exist. 
Section 3680(a)(1) of title 38, U.S.C., limits the automatic 
consideration of existing mitigating circumstances to the first 
reduction or withdrawal of less than seven hours. The statute does not 
provide VA the authority to increase the number of times mitigating 
circumstances will be considered to exist or the number of hours for 
which mitigating circumstances will automatically be considered to 
exist. Nevertheless, there is no statutory limit on the number of times 
that VA may consider evidence of mitigating circumstances submitted by 
the eligible individual. Any time an individual reduces or withdraws 
from training after the drop-add period, or receives a non-punitive 
grade (regardless of the number of credit hours reduced or withdrawn), 
he or she may submit evidence of mitigating circumstances to VA for 
review. If the mitigating circumstances are acceptable, VA will pay 
educational assistance through the end of the month of the reduction or 
through the last date of attendance for withdrawals.

Appeals

    Two commenters requested that we clarify the appeals process for 
eligible individuals in receipt of educational assistance under the 
Post-9/11 GI Bill. Specifically, one commenter requested that VA 
provide a formal process for appealing the denial of the rural 
relocation benefit. Decisions regarding eligibility and entitlement to 
educational assistance under the Post- 9/11 GI Bill are subject to the 
provisions of 38 U.S.C. chapters 71 and 72. Specifically, individuals 
may appeal a decision regarding eligibility or entitlement to 
educational assistance under the Post-9/11 GI Bill to the Board of 
Veterans' Appeals in accordance with the provisions of 38 CFR Part 20. 
To clarify this, VA is adding new Sec.  21.1034 to notify claimants of 
their appeal rights regarding decisions of eligibility and entitlement 
to educational assistance administered by VA. Another commenter 
requested that VA provide a formal process for appealing a decision of 
eligibility to increased educational assistance (``kicker''). VA notes 
in newly added Sec.  21.1034 that eligibility for educational 
assistance under 10 U.S.C. 510 or 10 U.S.C. chapter 106a, 1606, or 
1607, and supplemental or increased assistance under 10 U.S.C. 
16131(i), 38 U.S.C. 3015(d), 3021, and 3316, may not be appealed to VA, 
because the decision of eligibility for educational assistance and 
supplemental or increased educational assistance (``kicker'') under 
those sections rests solely with the DoD. Accordingly, VA will direct 
claimants appealing eligibility to supplemental or increased 
educational assistance (``kicker'') under the Post-9/11 GI Bill to the 
DoD.

General Comments

    One commenter requested that VA explain why a certifying official 
who is eligible for the Post-9/11 GI Bill will be barred from receiving 
benefits at the school for which he or she is authorized to submit 
enrollments. VA included this language in the proposed regulation to 
help reduce the possibility of receiving fraudulent enrollment 
certifications. However, after further review, VA has determined that 
certifying officials eligible for receipt of benefits under the Post-9/
11 GI Bill will be eligible to receive benefits for training pursued at 
the institution of higher learning for which he or she is authorized to 
sign enrollment certifications. However, certifying officials will be 
prohibited from submitting their own enrollment certification to VA.
    Another commenter asked VA to consider exempting programs 
specifically provided for veterans from the 85-15 rule. Section 3680A 
of title 38, U.S.C., instructs VA to disapprove enrollment in certain 
courses, including those courses where more than 85 percent of the 
students are receiving educational assistance under programs 
administered by VA. However, that section provides an exception for 
courses offered at institutions of higher learning where less than 35 
percent of the students on campus are receiving educational assistance 
under a program administered by VA.
    We received a comment regarding the method in which students will 
certify their enrollment as stated in proposed Sec.  21.9730. Due to 
system limitations, individuals will not be able to certify attendance 
to VA on a monthly basis, similar to individuals in receipt of benefits 
under 38 U.S.C. chapter 30. As a result, we removed proposed Sec.  
21.9730 and all references to that section from the final rule. 
However, the inability to certify attendance monthly does not relieve 
the individual of the responsibility of notifying VA of a change in 
enrollment in accordance with Sec.  21.9735.
    We received a comment requesting that beneficiaries under the Post-
9/11 GI Bill also be provided with five months of free entitlement for 
remedial classes, noting that beneficiaries under 38 U.S.C. chapter 35 
are not charged entitlement for the first 5 months of pursuit of 
remedial training. Chapter 33 of title 38, U.S.C., does not include a 
provision that would allow VA to provide five months of remedial 
training with no entitlement charge as is available for chapter 35 
beneficiaries under 38 U.S.C. 3533 who meet the requirements of 38 
U.S.C. 3491(a). However, the statute does provide that individuals may 
receive reimbursement for one licensing or certification test, tutorial 
assistance, and the rural relocation benefit with no charge to 
entitlement.
    One commenter requested that VA allow individuals to pursue 
multiple objectives. The term ``program of education'' is defined in 38 
U.S.C. 3452(b) for the purposes of chapter 36. Section 3323(a) of title 
38, U.S.C., directs VA to the administrative provisions listed in 38 
U.S.C. 3034(a) that further direct us to specific provisions of 38 
U.S.C. chapter 36. Based on the statutory definition of ``program of 
education'' VA may approve the pursuit of multiple objectives as long 
as they lead to a single career field. Institutions of higher learning 
may request approval of dual degrees with the State approving agency of 
jurisdiction if they can show that the objectives are complementary and 
will lead to a single career field.
    Two commenters requested that VA publish the State maximums prior 
to August 1st of each calendar year. Due to the novelty of the program, 
we are unable to predict how far ahead of the academic year we will 
have access to the State maximums. Based on recently received 
information from several State approving agencies, many public 
institutions do not set their tuition and fees until June or July of 
each year. We published the State maximums for the 2008-2009 academic 
year on our Web site in February. We will publish the State maximums 
for upcoming academic years as early as possible, but not later than 
August 1st of each calendar year.
    In proposed Sec.  21.9625(h), VA indicated that individuals who 
qualify for an increase in the percentage of the maximum amount payable 
based on length of active duty service during a certified enrollment 
period would receive payment based on such increase the first day of 
the term, quarter, or semester during which he or she was enrolled 
following the date the individual became entitled to such increase. A 
commenter requested that VA consider allowing individuals who are not 
enrolled in quarter or semester

[[Page 14663]]

schools to receive an increased payment within 4 months of the date the 
individual became entitled to the increase. VA will continue to 
increase percentages effective the date of the award or the first day 
of the certified enrollment period during which the individual is 
enrolled following the date the individual became entitled to such 
increase. Payments for tuition, fees, and, if applicable, the Yellow 
Ribbon Program are issued as lump sums at the beginning of the 
certified enrollment period. Those payments are issued for the entire 
enrollment period certified to VA. Increasing payments mid-term could 
adversely affect schools participating in the Yellow Ribbon Program. If 
VA readjusts the individual's claim to pay additional assistance, the 
amount of Yellow Ribbon Program contributions that the school could 
legally provide may be reduced. In these situations, the school would 
be required to refund money back to VA. For consistency among all 
schools, VA chooses to continue authorizing payment of educational 
assistance at an increased percentage effective the first date of the 
award or the first day of the certified enrollment period following the 
effective date of the increased percentage.
    One commenter asked VA to clarify how entitlement would be charged 
for an individual who was called to active duty for a short period of 
time. Section 21.9560(d)(4) of title 38, CFR, states that entitlement 
will not be charged to individuals who are called or ordered to active 
duty or a new assignment and who do not receive credit or lose training 
time for any portion of the enrollment period. If the institution of 
higher learning grants the individual a leave of absence and the 
student returns and completes the courses following the leave of 
absence with no loss of credit or training time, VA would not reduce or 
alter the training time.
    Another commenter requested that VA reconsider applying the 
administrative provisions (of chapter 36) for existing educational 
assistance programs to the Post-9/11 GI Bill. Section 3323(a) of title 
38, U.S.C., directs VA to apply the provisions listed in 38 U.S.C. 
3034(a) in the administration of the Post-9/11 GI Bill. Section 3034(a) 
requires that VA use existing provisions of 38 U.S.C. chapters 34 and 
36. The use of the existing structure is mandated by statute and can 
not be changed by regulation.
    We received a comment requesting that we create a regulatory pilot 
program for educational assistance that will provide less oversight for 
institutions with graduation-rate track records in the top half of the 
institutions in the country. The commenter noted that the current 
provisions in place are necessary to protect veterans, but added that 
the provisions are cumbersome and unnecessary for successful 
institutions. The commenter specifically suggested that VA create a 
second set of less obtrusive rules for specific institutions. Chapter 
36 of title 38, U.S.C., directs VA to work cooperatively with State 
approving agencies to approve programs of education for educational 
assistance. As a result, VA can not remove statutory oversight 
requirements by regulation.
    A commenter suggested that VA clarify whether the conversion rate 
for foreign currency will be based on a rate determined at an exchange 
where currencies are traded or at a commercial bank. VA amended the 
final rule to clarify that the foreign exchange rates effective July 
1st of each calendar year as published by the Federal Reserve will be 
used to convert foreign currency for enrollments certified for the 
following academic year (August 1st through July 31st).

Additional Changes

    We received several comments requesting technical changes to 
increase the clarity and readability of the regulatory text. VA 
appreciates the comments and incorporated several of the suggested 
changes in the final rule. In addition to the numerous non-substantive 
technical changes that were made, VA is also amending the final rule to 
clarify that individuals making an irrevocable eligibility election to 
receive benefits under the Post-9/11 GI Bill may receive a retroactive 
payment of educational assistance under the program for training 
pursued not earlier than one year prior to the date the election 
request was received. However, the retroactive payment can never begin 
prior to August 1, 2009, or the date the individual qualified for 
educational assistance under the program. We are also revising the 
formula for determining the maximum amount of tuition and fees that can 
be paid for individuals pursuing training at a foreign institution each 
year based on the current in-State maximums rather than the in-State 
maximums for the previous academic year. Additionally, we are revising 
Sec.  21.9750 to include the formulas that will be used to assess 
courses at institutions of higher learning that do not use credit 
hours.

Other Comments

    VA received several comments suggesting support for, or proposal 
of, legislative changes to certain provisions of the Post-9/11 GI Bill. 
Our primary focus is on ensuring that all requirements are met and all 
systems are in place for issuing payments on August 1, 2009; therefore, 
at this time, VA cannot support any legislative changes that would 
interfere with our ability to achieve this objective. We will take each 
of these suggestions submitted during the comment period into 
consideration when developing future legislative proposals. We also 
received numerous comments regarding the implementation of the program 
itself. Some commenters asked when institutions would be able to 
certify enrollments, when institutions would receive funds, how 
payments would be delivered, when and how students will be notified of 
application procedures, and if schools will have access to an 
individual's certificate of eligibility. We also received comments 
expressing concern regarding how often enrollment information will be 
reported and what additional information will be required. VA is in the 
process of developing the procedures necessary to implement the Post-9/
11 GI Bill in accordance with statutory and regulatory provisions. We 
will continue to update our Web site at http://www.gibill.va.gov as 
information becomes available regarding the procedures that will be 
used to administer the program. VA appreciates the eagerness of the 
institutions to assist VA in providing our nation's veterans with this 
well-deserved benefit. We also appreciate the support and patience of 
each of our stakeholders during this process.

Benefits Costs

    The benefit costs for implementing this final rule are slightly 
higher than the cost of implementing the proposed rule based on the 
opinion of our General Counsel that members of the PHS and NOAA are 
eligible for educational assistance under the Post-9/11 GI Bill. We 
estimate that the addition of PHS and NOAA members will result in an 
additional 332 trainees per year at the cost of $2.1 million for FY 
2009 and nearly $56.5 million over 10 years.

Paperwork Reduction Act

    This final rule contains provisions that constitute collections of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521) (``Act''). In the preamble of the proposed rule, we identified 5 
existing information collections that would be used in the 
administration of the Post-9/11 GI Bill. VA subsequently determined 
that the ``Student Verification of Enrollment'' (OMB control number 
2900-0465) will not be necessary for the administration of the

[[Page 14664]]

program. VA also identified additional existing information collections 
that are necessary for the administration of the program. VA will use 
these existing information collections with the following Office of 
Management and Budget (OMB) control numbers in the administration of 
the Post-9/11 GI Bill:
    <bullet> 2900-0154--Application for VA Education Benefits
    <bullet> 2900-0171--Tutorial Assistance
    <bullet> 2900-0576--Correspondence Affirmation
    <bullet> 2900-0657--Conflicting Interests Certification for 
Proprietary Schools
    <bullet> 2900-0073--VA Enrollment Certification
    <bullet> 2900-0074--Request for Change of Program or Place of 
Training
    <bullet> 2900-0156--Notice of Change in Student Status
    <bullet> 2900-0209--Work-Study
    <bullet> 2900-0353--Certificate of Lessons Completed
    <bullet> 2900-0695--Application for Reimbursement of Licensing or 
Certification Test Fees
    Additionally, VA determined that this rule will require a new 
information collection to implement the provisions of 38 U.S.C. 3319 
regarding the Yellow Ribbon Program. Section 3319 of title 38, U.S.C., 
and 38 CFR 21.9700 require VA to enter into an agreement with an 
institution of higher learning that wishes to participate in the Yellow 
Ribbon Program. The institution of higher learning must report the 
means by which contributions are made, the maximum amount of 
contributions that will be provided to any individual during the 
academic year, and the maximum number of individuals for which the 
institution of higher learning will provide contributions during the 
academic year. On November 3, 2008, VA notified the public that an 
emergency request for approval was submitted to OMB for collection of 
information under the Yellow Ribbon Program. VA did not receive any 
comments regarding the information collection during the comment 
period. OMB approved the use of the Yellow Ribbon Program Agreement on 
January 8, 2009, under control number 2900-0718.
    In the preamble of the proposed rule, we also stated that the 
provisions in 38 CFR 21.9680(c) requiring individuals to submit a 
request for the rural relocation benefit in writing does not constitute 
a collection of information under the Act because VA anticipates that 
information will be collected from fewer than 10 persons annually.
    OMB assigns a control number for each collection of information it 
approves. VA may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any given year. This final rule will have no such effect 
on State, local, and tribal governments, or on the private sector.

Executive Order 12866 and Congressional Review Act

    This is an economically significant regulatory action under 
Executive Order 12866 and constitutes a major rule under the 
Congressional Review Act.
    Executive Order 12866 directs agencies to assess all costs and 
benefits of available regulatory alternatives and, when regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity). Executive 
Order 12866 classifies a ``significant regulatory action'' requiring 
review by OMB as any regulatory action that is likely to result in a 
rule that may: (1) Have an annual effect on the economy of $100 million 
or more, or adversely affect in a material way the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities; (2) create a serious inconsistency or interfere with an 
action taken or planned by another agency; (3) materially alter the 
budgetary impact of entitlements, grants, user fees, or loan programs 
or the rights and obligations of entitlement recipients; or (4) raise 
novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in the Executive 
Order.
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this final rule and has concluded that it is a 
significant regulatory action under Executive Order 12866 because it is 
likely to result in a rule that may have an annual effect on the 
economy of $100 million or more and may raise novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the Executive Order. This final rule is 
also a major rule under the Congressional Review Act because it is 
likely to result in an annual effect on the economy of $100 million or 
more.
    VA has attempted to follow OMB circular A-4 to the extent feasible 
in this analysis. The circular first calls for a discussion of the need 
for the regulation. The Post-9/11 GI Bill was established to provide 
educational assistance to members of the Armed Forces who serve on 
active duty after September 10, 2001. The preamble above discusses the 
need for the regulation in more detail.
    The impact of this regulation is primarily to the federal budget. 
Eligible individuals may receive an educational assistance allowance 
for established charges not to exceed the highest amount charged full-
time in-State undergraduate students by the most expensive public 
institution in the State where the student is enrolled (or the national 
average of the most expensive in-State public institutions for 
individuals training at a foreign institution not associated with an 
institution located inside the United States), a monthly housing 
allowance up to the monthly amount payable under section 403 of title 
37, U.S.C., for a member with dependents in pay grade E-5 residing in 
the military housing area that encompasses all or the majority portion 
of the ZIP code area in which the institution is located, and a book 
stipend of up to $1,000 each academic year. Individuals may also 
qualify for a work-study allowance, tutorial assistance, reimbursement 
of a licensing or certification test, and a rural relocation benefit. 
Individuals eligible for 100 percent of the benefit may also receive 
additional funds under the Yellow Ribbon Program to cover established 
charges not otherwise covered under chapter 33.
    The effective date of the chapter 33 program is August 1, 2009; 
therefore, full year benefit costs begin in FY 2010. VA estimates the 
benefit cost of the program will be $1.2 billion in FY 2009, 
approximately $28.1 billion through FY 2013, and $78.1 billion through 
FY 2018.
    Due to the short length of time provided to implement this new 
benefit program and the lack of an existing payment system that will 
support the types of payments authorized under the new program, VA will 
utilize manual processing of claims in a preexisting system with 
limited functionality until an in-house Information Technology Systems 
(IT) solution can be developed. As a result, VA estimates discretionary 
costs of $78.8 million in FY 2009 and $452.6 million over 10 years for 
IT and minor construction needs, supplies,

[[Page 14665]]

equipment (including computers); increased rent; and salaries to 
support additional personnel. FY 2009 costs are offset by additional 
funding in the amount of $100 million dollars made available to VA in 
chapter 3 of title I of the Supplemental Appropriations Act, 2008.

Regulatory Flexibility Act

    The Secretary of Veterans Affairs hereby certifies that this final 
rule will not have a significant economic impact on a substantial 
number of small entities as they are defined in the Regulatory 
Flexibility Act, 5 U.S.C. 601-612. Although this final rule will affect 
some small entities that are testing organizations or educational 
institutions, any economic impact on them will be minor because these 
functions are currently being carried out for other educational 
assistance programs. Therefore, pursuant to 5 U.S.C. 605(b), this final 
rule is exempt from the initial and final regulatory flexibility 
analyses requirements of sections 603 and 604.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this final rule are 64.117, Survivors and 
Dependents Educational Assistance; 64.120, Post-Vietnam Era Veterans' 
Educational Assistance; 64.124, All-Volunteer Force Educational 
Assistance; 64.125, Vocational and Educational Counseling for 
Servicemembers and Veterans; 64.130, Post-9/11 Veterans Educational 
Assistance. The final rule also affects the Montgomery GI Bill--
Selected Reserve (MGIB-SR) program and the Reserve Educational 
Assistance Program (REAP), for which there are no Catalog of Federal 
Domestic Assistance numbers.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflict of interests, Education, 
Employment, Grant programs--education, Grant programs--veterans, Health 
care, Loan programs--education, Loan programs--veterans, Manpower 
training programs, Reporting and recordkeeping requirements, Schools, 
Travel and transportation expenses, Veterans, Vocational education, 
Vocational rehabilitation.

    Approved: February 25, 2009.
John R. Gingrich,
Chief of Staff, Department of Veterans Affairs.


0
For the reasons set out in the preamble, VA amends 38 CFR part 21 as 
follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart B--Claims and Applications for Educational Assistance

0
1. The authority citation for part 21, subpart B continues to read as 
follows:

    Authority: 38 U.S.C. 501(a), ch. 51, and as noted in specific 
sections.


0
2. Amend Sec.  21.1029 by:
0
a. In the introductory text, removing ``and L,'' and adding, in its 
place, ``L, and P,'';
0
b. Revising the authority citation at the end of paragraph (e).
    The revision reads as follows:


Sec.  21.1029   Definitions.

* * * * *
    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))

* * * * *

0
3. Amend Sec.  21.1030 by revising the authority citation at the end of 
paragraphs (a), (b) and (c) to read as follows:


Sec.  21.1030   Claims.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))

* * * * *


Sec.  21.1031   [Amended]

0
4. Amend Sec.  21.1031(b)(1) introductory text by removing ``or L'' and 
adding, in its place, ``L, or P''.


Sec.  21.1032   [Amended]

0
5. Amend Sec.  21.1032(a)(1) introductory text by removing ``or L'' and 
adding, in its place, ``L, or P''.

0
6. Revise Sec.  21.1033(c) to read as follows:


Sec.  21.1033   Time limits.

* * * * *
    (c) Time limit for filing a claim for an extended period of 
eligibility under 10 U.S.C. chapter 1606, or 38 U.S.C. chapter 30, 32, 
33, or 35. VA must receive a claim for an extended period of 
eligibility provided by Sec.  21.3047, Sec.  21.5042, Sec.  21.7051, 
Sec.  21.7551, or Sec.  21.9535 by the later of the following dates:
    (1) One year from the date on which the spouse's, surviving 
spouse's, veteran's, reservist's, or other eligible individual's 
original period of eligibility ended; or
    (2) One year from the date on which the spouse's, surviving 
spouse's, veteran's, reservist's, or other eligible individual's 
physical or mental disability no longer prevented him or her from 
beginning or resuming a chosen program of education.

(Authority: 10 U.S.C. 16133(b); 38 U.S.C. 3031(d), 3232(a), 3321, 
3512)

* * * * *

0
7. Add Sec.  21.1034 to subpart B to read as follows:


Sec.  21.1034  Appeals.

    A claimant may appeal a decision of eligibility or entitlement to 
educational assistance under title 38, U.S.C., to the Board of Veterans 
Appeals in accordance with the provisions of 38 CFR Part 20. A claimant 
may appeal a decision of entitlement to educational assistance under 10 
U.S.C. 510 and 10 U.S.C. chapters 106a, 1606, and 1607 to the Board of 
Veterans Appeals in accordance with the provisions of 38 CFR Part 20. A 
claimant may not appeal a decision of eligibility under 10 U.S.C. 510 
or 10 U.S.C. chapters 106a, 1606, or 1607 or for supplemental or 
increased educational assistance under 10 U.S.C. 16131(i) or 38 U.S.C. 
3015(d), 3021, or 3316 to VA as the Department of Defense solely 
determines eligibility to supplemental and increased educational 
assistance under those sections.

(Authority: 38 U.S.C. 501(a), 7105, 7105A)


Subpart C--Survivors' and Dependents' Educational Assistance Under 
38 U.S.C. Chapter 35

0
8. The authority citation for part 21, subpart C continues to read as 
follows:


    Authority: 38 U.S.C. 501(a), 512, 3500-3566, and as noted in 
specific sections.

0
9. Amend Sec.  21.3022 to read as follows:


Sec.  21.3022   Nonduplication--programs administered by VA.

    A person who is eligible for educational assistance under 38 U.S.C. 
chapter 35 and is also eligible for assistance under any of the 
provisions of law listed in this paragraph cannot receive such 
assistance concurrently. The eligible person must choose which

[[Page 14666]]

benefit he or she will receive for the particular period(s) of training 
during which education or training is to be pursued. 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.
    (a) 38 U.S.C. chapter 30 (Montgomery GI Bill--Active Duty);
    (b) 38 U.S.C. chapter 31 (Vocational Rehabilitation and 
Employment);
    (c) 38 U.S.C. chapter 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (d) 38 U.S.C. chapter 33 (Post-9/11 GI Bill);
    (e) 10 U.S.C. chapter 1606 (Montgomery GI Bill--Selected Reserve);
    (f) 10 U.S.C. chapter 1607 (Reserve Educational Assistance 
Program);
    (g) 10 U.S.C. chapter 106a (Educational Assistance Test Program);
    (h) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note.);
    (i) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 
note.); and
    (j) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3322, 3681)

Subpart D--Administration of Educational Assistance Programs

0
10. The authority citation for part 21, subpart D is revised to read as 
follows:


    Authority: 10 U.S.C. 2141 note, ch. 1606; 38 U.S.C. 501(a), chs. 
30, 32, 33, 34, 35, 36, and as noted in specific sections.


0
11. Amend Sec.  21.4005 by:
0
a. Removing ``chapter 30, 32, 34, 35, or 36'' each place it appears and 
adding, in each place, ``chapter 30, 32, 33, 35, or 36''; removing 
``chapters 30, 32, 34, 35, or 36'' each place it appears and adding, in 
each place, ``chapters 30, 32, 33, 35, or 36''; removing ``chapter 30, 
32, or 35'' and adding, in each place, ``chapter 30, 32, 33, or 35''.
0
b. Revising paragraph (a)(1)(ii) and (a)(2)(ii).
0
c. Revising the authority citation at the end of paragraphs (a) and 
(b).
0
d. Revising paragraph (e) heading.
    The revisions read as follows:


Sec.  21.4005   Conflicting interests.

* * * * *
    (a) * * *
    (1) * * *
    (ii) Offering a licensing or certification test that is approved 
for payment of educational assistance under 10 U.S.C. chapter 1606, or 
38 U.S.C. chapter 30, 32, 33, or 35 to veterans, reservists, or 
eligible individuals who take that test.
    (2) * * *
    (ii) Offering a licensing or certification test that is approved 
for payment of educational assistance under 10 U.S.C. chapter 1606, or 
38 U.S.C. chapter 30, 32, 33, or 35 to veterans, reservists, or 
eligible individuals who take that test.
* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3683, 3689)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3683, 3689)

* * * * *
    (e) Notice to veterans, reservists, and eligible individuals.
* * * * *

0
12. Amend Sec.  21.4006 by revising the authority citation at the end 
of paragraphs (a) introductory text, (a)(2), and (b) to read as 
follows:


Sec.  21.4006  False or misleading statements.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)

* * * * *
    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690)

* * * * *

0
13. Amend Sec.  21.4008 by revising the authority citation at the end 
of paragraphs (a) and (b) to read as follows:


Sec.  21.4008  Prevention of overpayments.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690(b))


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690(b))



0
14. Amend Sec.  21.4009 by revising the authority citation at the end 
of paragraphs (b) through (j) to read as follows:


Sec.  21.4009   Waiver or recovery of overpayments.

* * * * *
    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685)


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (f) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (g) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (j) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))

* * * * *

0
15. Amend Sec.  21.4020 by:
0
a. Revising paragraph (a)(4) and (5); and
0
b. Revising the authority citation at the end of paragraphs (a) and 
(b).
    The revisions read as follows:


Sec.  21.4020   Two or more programs.

    (a) * * *
    (4) 38 U.S.C. chapters 30, 32, 33, 34, 35, and 36;
    (5) 10 U.S.C. chapters 106a, 1606, and 1607;
* * * * *

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3034(a), 
3241(a), 3323(a), 3695(a))


    (b) * * *

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3034(a), 
3241(a), 3323(a), 3695(b))

* * * * *

0
16. Revise Sec.  21.4022 to read as follows:


Sec.  21.4022   Nonduplication--programs administered by VA.

    A veteran, reservist, or eligible individual, who is eligible for 
educational assistance allowance or subsistence allowance under more 
than one of the provisions of law listed in this section, whether based 
on his or her own service or the service of another

[[Page 14667]]

person, cannot receive such benefits concurrently. The individual must 
choose under which program he or she will receive benefits for the 
particular period(s) during which education or training is to be 
pursued. 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.
    (a) 38 U.S.C. 30 (Montgomery GI Bill--Active Duty);
    (b) 38 U.S.C. 31 (Vocational Rehabilitation and Employment 
Program);
    (c) 38 U.S.C. 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (d) 38 U.S.C. 33 (Post-9/11 GI Bill)
    (e) 38 U.S.C. 35 (Survivors' and Dependents' Educational 
Assistance);
    (f) 10 U.S.C. 1606 (Montgomery GI Bill--Selected Reserve);
    (g) 10 U.S.C. 1607 (Reserve Educational Assistance Program);
    (h) 10 U.S.C. 106a (Educational Assistance Test Program);
    (i) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
    (j) The Hostage Relief Act of 1980 (Pub. L. 96-449), 5 U.S.C. 5661 
note);
    (k) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3322, 3681)



0
17. Amend Sec.  21.4145 by:
0
a. In paragraph (a)(1), removing ``chapter 30 or 32'' and adding, in 
its place, ``chapter 30, 32 or 33''.
0
b. Revising the authority citation at the end of paragraphs (a), (c), 
(d), (e), (f), and (h).
0
c. Adding an authority citation at the end of paragraph (b).
0
d. Adding an authority citation at the end of paragraph (g).
    The revisions and additions read as follows:


Sec.  21.4145  Work study allowance.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537, 5101(a))


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (f) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (g) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


* * * * *


Sec.  21.4146   [Amended]

0
18. Amend Sec.  21.4146, paragraph (a), by removing ``chapters 30, 32, 
35, or 36'' and adding, in its place, ``chapters 30, 32, 33, 35, or 
36''.

0
19. Amend Sec.  21.4153 by revising paragraph (c)(4)(i) and the 
authority citation following paragraph (c)(4)(i) to read as follows:


Sec.  21.4153   Reimbursement of expenses.

* * * * *
    (c) * * *
    (4) * * *
    (i) The work has a direct relationship to the requirements of 10 
U.S.C. chapter 1606, or 38 U.S.C. chapter 30, 32, 33, 35, or 36; and

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3674)

* * * * *


Sec.  21.4200  [Amended]

0
20. Amend Sec.  21.4200 introductory text, by removing ``subparts C, F, 
G, H, K, and L'' and adding, in its place, ``subparts C, G, H, K, L, 
and P''.

0
21. Amend Sec.  21.4201 by:
0
a. In paragraph (a), removing ``the Department of Veterans Affairs 
pursuant to Title 38 U.S.C.'' and adding, in its place, ``VA under 
title 38, U.S.C., or under title10, U.S.C.''.
0
b. In paragraph (c)(4), removing ``chapters 30, 31, 32, 34, 35 and 36, 
title 38, United States Code, and chapter 1606, title 10, United States 
Code'' and adding, in its place, ``38 U.S.C. chapters 30, 31, 32, 33, 
35 and 36, and 10 U.S.C. chapter 1606''.
0
c. In paragraph (e)(2) introductory text, removing ``United States Code 
or under chapter 1606, title 10, United States Code'' and adding, in 
its place, ``U.S.C., or under title 10, U.S.C.''.
0
d. In paragraph (f)(1)(ii), removing ``chapters 30, 31, 32, 34, 35, or 
36, title 38, U.S.C., or chapter 1606, title 10 U.S.C.'' and by adding, 
in its place, ``38 U.S.C. chapters 30, 31, 32, 33, 35 and 36, and 10 
U.S.C. chapter 1606''.
0
e. In paragraph (g)(2) introductory text, removing ``either under 
Chapter 1606, Title 10, U.S.C., or under Chapters 30, 32, 34, or 36, 
Title 38 U.S.C.'' and adding, in its place, ``under 10 U.S.C. chapter 
1606 or under 38 U.S.C. chapter 30, 32, 33, or 36''.
0
f. Revising the authority citation at the end of paragraphs (a), (c)(4) 
introductory text, (c)(4)(ii), (d), (e)(2)(i), (e)(2)(iv), (e)(3), 
(f)(1) introductory text, (f)(1)(ii), (f)(2), (g)(2) introductory text, 
(g)(2)(ii), (g)(5), and (h).
    The revisions read as follows:


Sec.  21.4201  Restrictions on enrollment; percentage of students 
receiving financial support.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (c) * * *
    (4) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (ii) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (e) * * *
    (2) * * *
    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (iv) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (3) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (f) * * *
    (1) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (ii) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))



[[Page 14668]]


    (g) * * *
    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (ii) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (5) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))



0
22. Amend Sec.  21.4206 by:
0
a. In the introductory text and in paragraph (a), removing ``chapter 
30, 32, 34, 35 or 36'' and adding, in its place, ``chapter 30, 32, 33, 
35 or 36''.
0
b. In paragraph (e)(1), removing ``chapters 30, 32, 34, 35 and 36 of 
title 38 U.S.C.'' and adding, in its place, ``chapters 30, 32, 33, 35 
and 36 of title 38, U.S.C.''.
0
c. Revising the authority citation at the end of paragraphs (a) through 
(d).
0
d. Removing the authority citation at the end of paragraph (e)(1) and 
by revising the authority citation at the end of the paragraph (e).
0
e. Adding an information collection approval parenthetical at the end 
of the section.
    The revisions and addition read as follows:


Sec.  21.4206   Reporting fee.

* * * * *
    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))



(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-0073)


0
23. Amend Sec.  21.4209 by:
0
a. In paragraph (a)(1), removing ``chapter 30, 32, 34, 35, or 36'' and 
adding, in its place, ``chapter 30, 32, 33, 35, or 36''.
0
b. In paragraph (c), removing ``veterans under 38 U.S.C. chapter 30 or 
32,'' and adding, in its place, ``veterans under 38 U.S.C. chapter 30, 
32, or 33,''.
0
c. Revising the authority citation at the end of paragraphs (a) through 
(c), and (f).
    The revisions read as follows:


Sec.  21.4209  Examination of records.

    (a) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3323(a), 3689, 
3690)


    (b) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3323(a), 3689, 
3690)


    (c) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3323(a), 3690)

* * * * *
    (f) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3323(a), 3689, 
3690)

* * * * *

0
24. Amend Sec.  21.4210 by:
0
a. Revising the section heading and paragraph (a)(1).
0
b. In paragraph (b)(1)(i), removing ``chapter 30, 32, 34, 35, or, 36'' 
and adding, in its place, ``chapter 30, 32, 33, 35, or 36''.
0
c. In paragraph (d)(2)(ii), removing ``chapters 30, 32, 34, 35, and 
36'' and adding, in its place, ``chapters 30, 32, 33, 35, and 36''.
0
d. Revising paragraph (d)(4)(ii).
0
e. Revising the authority citation at the end of paragraphs (a), 
(b)(1)(ii), (c), (d), (e)(2), and (f) through (i).
    The revisions read as follows:


Sec.  21.4210  Suspension and discontinuance of educational assistance 
payments, and of enrollments or reenrollments for pursuit of approved 
courses.

    (a) Overview; explanation of terms used in Sec. Sec.  21.4210 
through 21.4216. (1) VA may pay educational assistance to a reservist 
under 10 U.S.C. chapter 1606 for the reservist's pursuit of a course 
approved in accordance with the provisions of 38 U.S.C. chapter 36. VA 
may pay educational assistance under 38 U.S.C. chapter 32 or 35 to a 
veteran or eligible person for the individual's pursuit of a course 
approved in accordance with the provisions of 38 U.S.C. chapter 36; or 
if the individual has taken a licensing or certification test approved 
in accordance with the provisions of 38 U.S.C. chapter 36. VA may pay 
educational assistance under 38 U.S.C. chapter 30 to a veteran or 
servicemember for the individual's pursuit of a course approved in 
accordance with the provisions of 38 U.S.C. chapter 36; if the 
individual has taken a licensing or certification test approved in 
accordance with the provisions of 38 U.S.C. chapter 36 or if the 
individual is entitled to be paid benefits (tuition assistance top-up) 
to meet all or a portion of an educational institution's charges for 
education or training that the military department concerned has not 
covered under tuition assistance. VA may pay educational assistance 
under 38 U.S.C. chapter 33 to an eligible individual or, as 
appropriate, to the individual's institution of higher learning on his 
or her behalf, for the individual's pursuit of a course or program of 
education if the course or program of education is offered by an 
institution of higher learning and approved under 38 U.S.C. chapter 30 
in accordance with the provisions of 38 U.S.C. chapter 36; if the 
individual has taken a licensing or certification test approved in 
accordance with the provisions of 38 U.S.C. chapter 36, or if an 
individual is entitled to be paid educational assistance to meet all or 
a portion of the institution of higher learning's established charges 
that the military department concerned has not covered by tuition 
assistance under 10 U.S.C. 2007(a) or (c). Except for tuition 
assistance top-up, where courses do not need to be approved, a State 
approving agency designated by VA, or in some instances VA, approves 
the course or test for payment purposes. Notwithstanding such approval, 
VA, as provided in paragraphs (b), (c), and (d) of this section, may 
suspend, discontinue, or deny payment of benefits to any or all 
otherwise eligible individuals for pursuit of a course or training 
approved under 38 U.S.C. chapter 36, and for taking a licensing or 
certification test approved under 38 U.S.C. chapter 36.
* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3452, 3471, 3690)


    (b) * * *
    (1) * * *
    (ii) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689, 3690)

* * * * *
    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)

    (d) * * *
    (4) * * *
    (ii) Has instituted a policy or practice with respect to the 
payment of tuition, fees, or other established charges that 
substantially denies to veterans, servicemembers, reservists, or other 
eligible persons the benefits of advance payment of educational 
assistance

[[Page 14669]]

authorized to such individuals under Sec. Sec.  21.4138(a), 21.7140(a), 
21.7640(d), or 21.9680; or
* * * * *

(Authority: 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 3323(a), 
3680A(d), 3684, 3685, 3689, 3690, 3696, 5301)


    (e) * * *
    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)

* * * * *
    (f) * * *

(Authority: 10 U.S.C. 16136(b); 31 U.S.C. 3801-3812; 38 U.S.C. 
3034(a), 3241(a), 3323(a), 3689, 3690)


    (g) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689, 3690)


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)


    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S. C. 3034(a), 3241, 3323(a), 
3683(b))



0
25. Amend Sec.  21.4211 by:
0
a. Removing ``chapter 30, 32, 34, 35, or 36'' each place it appears and 
adding, in each place, ``chapter 30, 32, 33, 35, or 36''.
0
b. Revising the authority citation at the end of paragraphs (a) through 
(e).
    The revisions read as follows:


Sec.  21.4211   Composition, jurisdiction, and duties of the Committee 
on Educational Allowances.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3323(a), 
3241(a), 3689(d), 3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3323(a), 3241(a), 
3689(d), 3690)


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3323(a), 3241(a), 
3689(d), 3690)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3323(a), 3241(a), 
3689(d), 3690)


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3323(a), 3241(a), 
3689(d), 3690)


0
26. Amend Sec.  21.4212 by revising the authority citation at the end 
of the section to read as follows:


Sec.  21.4212   Referral to Committee on Educational Allowances.

* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)



0
27. Amend Sec.  21.4213 by revising the authority citation at the end 
of the section to read as follows:


Sec.  21.4213   Notices of hearing by Committee on Educational 
Allowances.

* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)



0
28. Amend Sec.  21.4214 by revising the authority citation for 
paragraphs (a) through (p) to read as follows:


Sec.  21.4214   Hearing rules and procedures for Committee on 
Educational Allowances.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (f) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (g) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (j) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (k) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (l) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (m) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (n) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (o) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (p) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)



0
29. Amend Sec.  21.4215 by revising the authority citation for 
paragraphs (a) through (e) to read as follows:


Sec.  21.4215   Decision of Director of VA Regional Processing Office 
of jurisdiction.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)



0
30. Amend Sec.  21.4216 by revising the authority citation for 
paragraphs (a) and (c) to read as follows:


Sec.  21.4216   Review of decision of Director of VA Regional 
Processing Office of jurisdiction.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), (e), 3690; Pub. L. 122 Stat. 2375)

* * * * *
    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 3034(a), 3241(a), 3323(a), 
3689(d), 3690)



0
31. Amend Sec.  21.4233 by revising the authority citation at the end 
of paragraph (e) to read as follows:


Sec.  21.4233   Combination.

* * * * *
    (e) * * *

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3002(8), 3034(d), 3241(b), 
3323(a), 3452(c), 3501(a)(6), 3675, 3676)



0
32. Amend Sec.  21.4234 by:
0
a. Removing ``veteran or eligible person'' each time it appears, and 
adding, in its place, ``veteran, reservist, or eligible person''.
0
b. Revising paragraph (c).
0
c. In paragraph (d)(1)(i), removing ``veteran or eligible spouse or 
surviving spouse'' and adding, in its place, ``veteran or eligible 
person other than a child receiving educational assistance under 38 
U.S.C. chapter 35''.
0
d. In paragraph (d)(1)(iii) and (d)(2)(iii), removing ``child'', and 
adding, in each place, ``child receiving

[[Page 14670]]

educational assistance under 38 U.S.C. chapter 35''.
0
e. Revising the authority citation at the end of paragraphs (a)(2)(iv), 
(a)(2)(v), (b), (c), (d)(3), (d)(4), and (e).
    The revisions read as follows:


Sec.  21.4234   Change of program.

    (a) * * *
    (2) * * *
    (iv) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (v) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (c) Optional change of program. A spouse or surviving spouse 
eligible to receive educational assistance under 38 U.S.C. chapter 35 
may make one optional change of program if his or her previous course 
was not interrupted due to his or her own misconduct, neglect, or lack 
of application.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (d) * * *
    (3) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (4) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (e) * * *

(Authority: 10 U.S.C. 510(h), 16136(b), 16166(b); 38 U.S.C. 3034(a), 
3241, 3323(a), 3691)

* * * * *

0
33. Amend Sec.  21.4236 by revising the authority citation at the end 
of paragraphs (b), (c), and (d) to read as follows:


Sec.  21.4236   Tutorial assistance.

* * * * *
    (b) * * *

(Authority: 10 U.S.C. 16131(h); 38 U.S.C. 3019, 3234, 3314, 3492, 
3533(b))


    (c) * * *

(Authority: 10 U.S.C. 16131(h); 38 U.S.C. 3019, 3314, 3492, 3533(b))


    (d) * * *

(Authority: 10 U.S.C. 16131(h); 38 U.S.C. 3019, 3314, 3492, 3533(b))



0
34. Amend Sec.  21.4250 by:
0
a. In paragraph (c)(2)(ii), removing ``Chapter 1606 or 38 U.S.C. 
Chapters 30, 32, 35, or 36'' and adding, in its place, ``chapter 1606 
or 38 U.S.C. chapter 30, 32, 33, 35, or 36''.
0
b. In paragraph (c)(2)(iii), removing ``chapter 30, 32, or 35'' and 
adding, in its place, ``chapter 30, 32, 33, or 35''.
0
c. Revising the authority citation at the end of paragraphs (a) and 
(c).
    The revisions read as follows:


Sec.  21.4250   Course and licensing and certification test approval; 
jurisdiction and notices.

    (a) * * *

(Authority: 38 U.S.C. 3014(b), 3313(e), 3315, 3670, 3672(a))

* * * * *
    (c) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3314, 3323(a), 
3476, 3523, 3672, 3673, 3689)

* * * * *

0
35. Amend Sec.  21.4252 by revising the authority citation at the end 
of paragraph (c) to read as follows:


Sec.  21.4252   Courses precluded; erroneous, deceptive, or misleading 
practices.

* * * * *
    (c) * * *

(Authority: 10 U.S.C. 16131(f); 38 U.S.C. 3034, 3241(b), 3323(a), 
3523(b), 3680A(b))

* * * * *

Subpart G--Post-Vietnam Era Veterans' Educational Assistance Under 
38 U.S.C. Chapter 32

0
36. The authority citation for part 21, subpart G continues to read as 
follows:

    Authority: 38 U.S.C. 501(a), chs. 32, 36, and as noted in 
specific sections.


0
37. Amend Sec.  21.5022 by revising paragraphs (a) and (b)(1)(i) 
through (b)(1)(vii), adding paragraphs (b)(1)(viii) and (b)(1)(ix), and 
revising the authority citation at the end of the section to read as 
follows:


Sec.  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 (Vocational Rehabilitation and 
Employment);
    (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); or
    (x) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).

(Authority: 38 U.S.C. 3322(a), 3681(b), 3695)


    (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.

(Authority: 38 U.S.C. 3033(a), 3322(a))


    (b) * * *
    (1) * * *
    (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).
* * * * *

(Authority: 38 U.S.C. 3034(a), 3231, 3323(a))

Subpart K--All Volunteer Force Educational Assistance Program 
(Montgomery GI Bill--Active Duty)

0
38. The authority citation for part 21, subpart K continues to read as 
follows:

    Authority: 38 U.S.C. 501(a), chs. 30, 36, and as noted in 
specific sections.


0
39. Amend Sec.  21.7143 by revising paragraphs (a) and (b) to read as 
follows:


Sec.  21.7143  Nonduplication of educational assistance.

    (a) Payments of educational assistance shall not be duplicated. (1) 
Except for receipt of a Montgomery GI

[[Page 14671]]

Bill--Selected Reserve kicker provided under 10 U.S.C. 16131(i), a 
veteran is barred from concurrently receiving educational assistance 
under 38 U.S.C. chapter 30 and--
    (i) 38 U.S.C. chapter 31 (Vocational Rehabilitation and 
Employment);
    (ii) 38 U.S.C. chapter 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (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); or
    (x) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).
    (b) If an individual is eligible for benefits under 38 U.S.C. 
chapter 30 and one or more of the programs listed in paragraphs 
(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.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3033(a), 3681(b))


* * * * *

Subpart L--Educational Assistance for Members of the Selected 
Reserve

0
40. The authority citation for part 21, subpart L is amended to read as 
follows:

    Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), 512, ch. 36, 
and as noted in specific sections.


0
41. Amend Sec.  21.7642 by revising paragraphs (a) and (b) to read as 
follows:


Sec.  21.7642  Nonduplication of educational assistance.

    (a) Payments of educational assistance shall not be duplicated. A 
reservist is barred from receiving educational assistance concurrently 
under 10 U.S.C. chapter 1606 and any of the following provisions of 
law--
    (1) 38 U.S.C. 30 (Montgomery GI Bill--Active Duty);
    (2) 38 U.S.C. 31 (Vocational Rehabilitation and Employment);
    (3) 38 U.S.C. 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (4) 38 U.S.C. 33 (Post-9/11 GI Bill);
    (5) 38 U.S.C. 35 (Survivors' and Dependents' Educational 
Assistance);
    (6) 10 U.S.C. 1607 (Reserve Educational Assistance Program);
    (7) 10 U.S.C. 106a (Educational Assistance Test Program);
    (8) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
    (9) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 
note); or
    (10) The Omnibus Diplomatic Security Act of 1986 (Pub. L. 99-399).


(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3033(a), 3241(a), 3322(a), 
3681)



    (b) When paragraph (a) of this section applies, the reservist must 
choose which benefit he or she wishes to receive. The reservist 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 reservist 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.
* * * * *

0
42. Add and reserve subparts N and O.

0
43. Add new subpart P to read as follows:
Subpart P--Post-9/11 GI Bill
Sec.
21.9500 Introduction.

Definitions

21.9505 Definitions.

Claims and Applications

21.9510 Claims, VA's duty to assist, and time limits.

Eligibility

21.9520 Basic eligibility.
21.9525 Eligibility for increased and supplemental educational 
assistance.
21.9530 Eligibility time limit.
21.9535 Extended period of eligibility.

Entitlement

21.9550 Entitlement.
21.9555 Entitlement to supplemental educational assistance.
21.9560 Entitlement charges.

Transfer of Entitlement to Basic Educational Assistance to Dependents

21.9570 Transfer of entitlement.

Counseling

21.9580 Counseling
21.9585 Travel Expenses.

Approved Programs of Education and Courses

21.9590 Approved programs of education and courses.
21.9600 Overcharges.

Payments--Educational Assistance

21.9620 Educational assistance.
21.9625 Beginning dates.
21.9630 Suspension or discontinuance of payments.
21.9635 Discontinuance dates.
21.9640 Rates of payment of educational assistance.
21.9645 Refund of basic contribution to chapter 30.
21.9650 Increase in educational assistance.
21.9655 Rates of supplemental educational assistance.
21.9660 Rural relocation benefit.
21.9665 Reimbursement for licensing or certification tests.
21.9670 Work-study allowance.
21.9675 Conditions that result in reduced rates or no payment.
21.9680 Certifications and release of payments.
21.9685 Tutorial Assistance.
21.9690 Nonduplication of educational assistance.
21.9695 Overpayments.
21.9700 Yellow Ribbon Program.

Pursuit of Courses

21.9710 Pursuit.
21.9715 Advance payment certification.
21.9720 Certification of enrollment.
21.9725 Progress and conduct.
21.9735 Other required reports.
21.9740 False, late, or missing reports.
21.9745 Reporting fee.

Course Assessment

21.9750 Course measurement.

Approval of Programs of Education

21.9765 Program of education approval.

Administrative

21.9770 Administrative.

    Authority: 38 U.S.C. 501(a), 512, chs. 33, 36 and as noted in 
specific sections.

Subpart P--Post-9/11 GI Bill


Sec.  21.9500  Introduction.

    An educational assistance program is established for individuals 
who served on active duty after September 10, 2001. This educational 
assistance program is effective August 1, 2009.


(Authority: Pub. L. 110-252, 122 Stat. 2357, 2378)


Definitions


Sec.  21.9505  Definitions.

    For the purposes of this subpart (governing the administration and 
payment of educational assistance under 38 U.S.C. chapter 33) the 
following definitions apply. (See also additional definitions in 
Sec. Sec.  21.1029 and 21.4200).

[[Page 14672]]

    Academic year means the period of time beginning August 1st of each 
calendar year and ending July 31st of the subsequent calendar year.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    Active duty means full-time duty in the regular components of the 
Armed Forces or under a call or order to active duty under 10 U.S.C. 
688, 12301(a), 12301(d), 12301(g), 12302, or 12304. Active duty does 
not include--
    (1) Full-time National Guard Duty performed under 32 U.S.C. orders;
    (2) Any period during which the individual--
    (i) Was assigned full-time by the Armed Forces to a civilian 
institution to pursue a program of education that was substantially the 
same as programs of education offered to civilians;
    (ii) Served as a cadet or midshipmen at one of the service 
academies; or
    (iii) Served under the provisions of 10 U.S.C. 12103(d) pursuant to 
an enlistment in the Army National Guard, Air National Guard, Army 
Reserve, Naval Reserve, Air Force Reserve, Marine Corps Reserve, or 
Coast Guard Reserve;
    (3) A period of service--
    (i) Required by an officer pursuant to an agreement under 10 U.S.C. 
2107(b);
    (ii) Required by an officer pursuant to an agreement under 10 
U.S.C. 4348, 6959, or 9348;
    (iii) That was terminated because the individual is considered a 
minor by the Armed Forces, was erroneously enlisted, or received a 
defective enlistment agreement; or
    (iv) Counted for purposes of repayment of an education loan under 
10 U.S.C. chapter 109; or
    (4) A period of Selected Reserve service used to establish 
eligibility under 38 U.S.C. chapter 30 or 10 U.S.C. chapter 1606 or 
1607.

(Authority: 38 U.S.C. 101(21)(A), 3301(1), 3311(d), 3322(b) and (c))


    Advance payment means an amount of educational assistance payable 
under Sec.  21.9640(b)(1)(ii) or (b)(2)(ii) for the month or fraction 
of the month in which the individual's quarter, semester, or term will 
begin plus the amount for the following month.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(d))


    Course means a unit of instruction required for an approved program 
of education that provides an individual with the knowledge and skills 
necessary to meet the requirements of the selected educational, 
professional, or vocational objective.

(Authority: 38 U.S.C. 3323(c))


    Distance learning means the pursuit of a program of education via 
distance education as defined in 20 U.S.C. 1003(7).

(Authority: 20 U.S.C. 1003(7); 38 U.S.C. 3323(c))


    Educational assistance means the monetary benefit payable under 38 
U.S.C. chapter 33 to, or on behalf of, individuals who meet the 
eligibility requirements for pursuit of an approved program of 
education under 38 U.S.C. chapter 33.

(Authority: 38 U.S.C. 3313)


    Enrollment period means a term, quarter, or semester during which 
the institution of higher learning offers instruction.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(g))


    Entry level and skill training means--
    (1) Basic Combat Training and Advanced Individual Training for 
members of the Army;
    (2) Recruit Training (Boot Camp) and Skill Training (``A'' School) 
for members of the Navy;
    (3) Basic Military Training and Technical Training for members of 
the Air Force;
    (4) Recruit Training and Marine Corps Training (School of Infantry 
Training) for members of the Marine Corps; and
    (5) Basic Training for members of the Coast Guard.

(Authority: 38 U.S.C. 3301(2))


    Established charges means the actual charge for tuition and fees 
that similarly circumstanced nonveterans enrolled in the program of 
education are required to pay.

(Authority: 38 U.S.C. 3313(h))


    Fees means any mandatory charges (other than tuition, room, and 
board) that are applied by the institution of higher learning for 
pursuit of an approved program of education. Fees include, but are not 
limited to, health premiums, freshman fees, graduation fees, and lab 
fees. Fees do not include those charged for a study abroad course(s) 
unless the course(s) is a mandatory requirement for completion of the 
approved program of education.

(Authority: 38 U.S.C. 501(a), 3323(c))


    Institution of higher learning (IHL) means a college, university, 
or similar institution, including a technical or business school, 
offering postsecondary level academic instruction that leads to an 
associate or higher degree if the school is empowered by the 
appropriate State education authority under State law to grant an 
associate or higher degree. When there is no State law to authorize the 
granting of such a degree, the school may be recognized as an 
institution of higher learning if it is accredited for degree programs 
by a recognized accrediting agency. Such term shall also include a 
hospital offering educational programs at the postsecondary level 
without regard to whether the hospital grants a postsecondary degree. 
Such term shall also include an educational institution that offers 
courses leading to a standard college degree or its equivalent, and is 
not located in a State but is recognized as an educational institution 
by the secretary of education (or comparable official) of the country 
or other jurisdiction in which the institution is located.

(Authority: 38 U.S.C. 3034(a), 3313(b), 3323(a), 3452(f))


    Interval means a period of time between regularly scheduled 
individual terms, semesters, or quarters.

(Authority: 38 U.S.C. 3034(a)(1), 3323(a), 3680)


    Lump sum payment means an amount of educational assistance paid for 
the entire term, quarter, or semester.

(Authority: 38 U.S.C. 3323(c))


    Mitigating circumstances means circumstances beyond the 
individual's control that prevent him or her from continuously pursuing 
a program of education. The following circumstances are representative 
of those that VA considers to be mitigating. This list is not all-
inclusive.
    (1) An illness or mental illness of the individual;
    (2) An illness or death in the individual's family;
    (3) An unavoidable change in the individual's conditions of 
employment;
    (4) An unavoidable geographical transfer resulting from the 
individual's employment;
    (5) Immediate family or financial obligations beyond the control of 
the individual that require him or her to suspend pursuit of the 
program of education to obtain employment;
    (6) Discontinuance of the course by the educational institution;
    (7) Unanticipated active duty for training; or
    (8) Unanticipated difficulties in caring for the individual's child 
or children.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a)(1))


    Program of education means a curriculum or combination of courses 
pursued at an institution of higher learning that are accepted as 
necessary to meet the requirements for a predetermined and identified

[[Page 14673]]

educational, professional, or vocational objective. Such term also 
means any curriculum or combination of courses pursued at an 
institution of higher learning that are accepted as necessary to meet 
the requirements for more than one predetermined and identified 
educational, professional, or vocational objective if all the 
objectives pursued are generally recognized as being reasonably related 
to a single career field. The curriculum or combination of courses 
pursued must be listed in the institution of higher learning's catalog 
and included in the approval notice provided by the State approving 
agency to VA in accordance with Sec.  21.4258(b)(iv).

(Authority: 38 U.S.C. 3034(a), 3301, 3323(a), 3452(b))


    Pursuit means to work, during a certified enrollment period, 
towards the objective of a program of education. This work must be in 
accordance with approved institutional policy and applicable criteria 
of Title 38, U.S.C., and must be necessary to reach the program's 
objective.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(g))


    Rate of pursuit means the measurement obtained by dividing the 
number of credit hours (or the equivalent credit hours as determined in 
Sec.  21.9750) an individual is enrolled in, including credit hours (or 
the equivalent) applied to refresher, remedial, and deficiency courses, 
by the number of credit hours (or the equivalent credit hours) 
considered to be full-time training at the institution of higher 
learning. The resulting percentage (rounded to the nearest hundredth) 
will be the individual's rate of pursuit not to exceed 100 percent. For 
the purpose of this subpart, VA will consider any rate of pursuit 
higher than 50 percent to be more than one-half time training.

(Authority: 38 U.S.C. 3323, 3680)


    Transferor means an individual who is entitled to educational 
assistance under the Post-9/11 GI Bill based on his or her own active 
duty service and who is approved by the military department to transfer 
all or a portion of his or her entitlement to one or more dependents.

(Authority: 38 U.S.C. 3319)


Claims and Applications


Sec.  21.9510  Claims, VA's duty to assist, and time limits.

    The provisions of subpart B of this part apply to claims filed for 
educational assistance under 38 U.S.C. chapter 33 with respect to VA's 
responsibilities upon receipt of claim, VA's duty to assist claimants 
in obtaining evidence, and time limits.

(Authority: 38 U.S.C. 3323(c), 5101, 5102, 5103, 5103A)

Eligibility


Sec.  21.9520   Basic eligibility.

    An individual may establish eligibility for educational assistance 
under 38 U.S.C. chapter 33 based on active duty service after September 
10, 2001, if he or she--
    (a) Serves a minimum of 90 aggregate days excluding entry level and 
skill training (to determine when entry level and skill training may be 
included in the total creditable length of service, see Sec.  
21.9640(a)) and, after completion of such service,--
    (1) Continues on active duty;
    (2) Is discharged from service with an honorable discharge;
    (3) Is released from service characterized as honorable and placed 
on the retired list, temporary disability retired list, or transferred 
to the Fleet Reserve or the Fleet Marine Corps Reserve;
    (4) Is released from service characterized as honorable for further 
service in a reserve component; or
    (5) Is discharged or released from service for--
    (i) A medical condition that preexisted such service and is not 
determined to be service-connected;
    (ii) Hardship, as determined by the Secretary of the military 
department concerned; or
    (iii) A physical or mental condition that interfered with the 
individual's performance of duty but was not characterized as a 
disability and did not result from the individual's own misconduct;
    (b) Serves a minimum of 30 continuous days and, after completion of 
such service, is discharged under other than dishonorable conditions 
due to a service-connected disability; or
    (c)(1) After meeting the minimum service requirements in paragraph 
(a) or (b) of this section--
    (i) An individual makes an irrevocable election to receive benefits 
under 38 U.S.C. chapter 33 by relinquishing eligibility under either 38 
U.S.C. chapter 30, or 10 U.S.C. chapter 106a, 1606, or 1607;
    (ii) A member of the Armed Forces who is eligible for educational 
assistance under 38 U.S.C. chapter 30 and who is making contributions 
towards such educational assistance under 38 U.S.C. 3011(b) or 3012(c) 
makes an irrevocable election to receive benefits under 38 U.S.C. 
chapter 33; or
    (iii) A member of the Armed Forces who made an election not to 
receive educational assistance under 38 U.S.C. chapter 30 in accordance 
with 38 U.S.C. 3011(c)(1) or 3012(d)(1) makes an irrevocable election 
to receive benefits under 38 U.S.C. chapter 33.
    (2) An individual may make an irrevocable election to receive 
benefits under this chapter by properly completing VA Form 22-1990, 
submitting a transfer-of-entitlement designation under this chapter to 
the Department of Defense, or submitting a written statement that 
includes the following--
    (i) Identification information (including name, social security 
number, and address);
    (ii) If applicable, an election to receive benefits under chapter 
33 in lieu of benefits under one of the applicable chapters listed in 
paragraph (c)(1)(i) of this section (e.g., ``I elect to receive 
benefits under the Post-9/11-GI Bill in lieu of benefits under the 
Montgomery GI Bill--Active Duty (chapter 30) program.'');
    (iii) The date the individual wants the election to be effective 
(e.g., ``I want this election to take effect on August 1, 2009.''). An 
election request for an effective date prior to August 1, 2009, will 
automatically be effective August 1, 2009; and
    (iv) An acknowledgement that the election is irrevocable (e.g., ``I 
understand that my election is irrevocable and may not be changed.'').

(Authority: 38 U.S.C. 3311; Pub. L. 110-252, Stat. 2375-2376)



(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0154.)


Sec.  21.9525  Eligibility for increased and supplemental educational 
assistance.

    (a) Increased assistance for members with critical skills or 
specialty. The Secretary of the military department concerned, pursuant 
to regulations prescribed by the Secretary of Defense, may increase the 
amount of educational assistance payable under Sec.  21.9640(b)(1)(ii) 
or (b)(2)(ii) to an individual who has a skill or specialty in which 
there is a critical shortage of personnel, for which there is 
difficulty recruiting, or, in the case of critical units, for which 
there is difficulty in retaining personnel.
    (b) Supplemental assistance for members serving additional service. 
The Secretary of the military department concerned, pursuant to 
regulations prescribed by the Secretary of Defense, may supplement the 
amount of

[[Page 14674]]

educational assistance payable under Sec.  21.9640(b)(1)(ii) or 
(b)(2)(ii) to an individual who meets the following service 
requirements.
    (1) Individuals with active duty service only. Supplemental 
educational assistance may be offered to an individual who serves 5 or 
more consecutive years on active duty in the Armed Forces in addition 
to the years counted to qualify for educational assistance, without a 
break in such service, and--
    (i) Continues on active duty without a break;
    (ii) Is discharged from service with an honorable discharge;
    (iii) Is placed on the retired list;
    (iv) Is transferred to the Fleet Reserve or the Fleet Marine Corps 
Reserve;
    (v) Is placed on the temporary disability retired list; or
    (vi) Is released from active duty for further service in a reserve 
component of the Armed Forces after service on active duty 
characterized by the Secretary concerned as honorable service.
    (2) Individuals with Selected Reserve service. (i) Supplemental 
educational assistance may be offered to an individual who--
    (A) Serves 2 or more consecutive years on active duty in the Armed 
Forces in addition to the years on active duty counted to qualify for 
educational assistance;
    (B) Serves 4 or more consecutive years of duty in the Selected 
Reserve in addition to the years of duty in the Selected Reserve 
counted to qualify the individual for educational assistance; and
    (C) After completion of such service--
    (1) Is discharged from service with an honorable discharge;
    (2) Is placed on the retired list;
    (3) Is transferred to the Fleet Reserve or Fleet Marine Corps 
Reserve;
    (4) Is placed on the temporary disability retired list;
    (5) Continues on active duty; or
    (6) Continues in the Selected Reserve.
    (ii) The Secretary concerned may, pursuant to regulations 
prescribed by the Secretary of Defense, determine the maximum period of 
time during which the individual is considered to have continuous 
service in the Selected Reserve even though the individual--
    (A) Is unable to locate a unit of the Selected Reserve for which he 
or she is eligible;
    (B) Is unable to locate a unit of the Selected Reserve that has a 
vacancy; or
    (C) For any other reason other than those stated in paragraph 
(b)(2)(ii)(A) and (B) of this section.
    (iii) Any decision as to the continuity of an individual's service 
in the Selected Reserve made by the Secretary of Defense will be 
binding upon VA.

(Authority: 38 U.S.C. 3021, 3022, 3023, 3316)

Sec.  21.9530  Eligibility time limit.

    (a) Except as provided in paragraphs (b) through (e) of this 
section, an individual's period of eligibility for educational 
assistance will terminate effective 15 years from the date of the last 
discharge or release from active duty of at least--
    (1) 90 continuous days; or
    (2) 30 continuous days if the individual is released for a service-
connected disability.
    (b) In the case of an individual who establishes eligibility and 
does not meet one of the service requirements specified in paragraph 
(a) of this section, the individual's period of eligibility for 
educational assistance will terminate effective 15 years from the date 
of discharge for the last period of service used to meet the minimum 
service requirements for eligibility as stated in Sec.  21.9520.
    (c) Amendment of military records. If an individual's eligibility 
for educational assistance is established as a result of a correction 
of military records under 10 U.S.C. 1552, a change, correction, or 
modification of a discharge or dismissal under 10 U.S.C. 1553, or other 
corrective action by a competent military authority, the individual's 
period of eligibility will terminate effective 15 years from the date 
of the change, correction, modification, or other corrective action.

(Authority: 38 U.S.C. 3311(c), 3321)


    (d) Time limit for spouse using transferred entitlement. (1) Unless 
the transferor dies while on active duty, the ending date of the 
spouse's period of eligibility for entitlement transferred under Sec.  
21.9570 is the earliest of the following--
    (i) The transferor's ending date as determined under this section;
    (ii) The ending date specified by the transferor, if the transferor 
specified the period for which the transfer was effective; or
    (iii) The effective date of the transferor's revocation of 
transferred entitlement as determined under Sec.  21.9570(f).
    (2) If the transferor dies while on active duty, the ending date of 
the spouse's period of eligibility is the earliest of the following--
    (i) The date 15 years from the transferor's date of death;
    (ii) The ending date specified by the transferor, if the transferor 
specified the period for which the transfer was effective; or
    (iii) The effective date of the transferor's revocation of 
transferred entitlement as determined under Sec.  21.9570(f).

(Authority: 38 U.S.C. 3319)


    (e) Time limit for child using transferred entitlement. (1) The 
ending date of the child's period of eligibility for entitlement 
transferred under Sec.  21.9570 is the earliest of the following--
    (i) The ending date specified by the transferor, if the transferor 
specified the period for which the transfer was effective;
    (ii) The effective date of the transferor's revocation of 
transferred entitlement as determined under Sec.  21.9570(f); or
    (iii) The day the child turns 26.
    (2) [Reserved]

(Authority: 38 U.S.C. 3319)

Sec.  21.9535  Extended period of eligibility.

    VA will extend an individual's period of eligibility in accordance 
with the following provisions.
    (a) Disability extension. (1) VA will grant an extension of the 
period of eligibility, as determined in Sec.  21.9530 (except for 
paragraphs (d) and (e)) provided--
    (i) The individual applies for the extension within the time 
specified in Sec.  21.1033(c); and
    (ii) The medical evidence clearly establishes that the individual 
was prevented from initiating or completing the chosen program of 
education within the original period of eligibility because of a 
physical or mental disability that did not result from the individual's 
willful misconduct. VA will not consider the disabling effects of 
chronic alcoholism to be the result of willful misconduct. VA will not 
consider an individual's disability for a period of 30 days or less as 
having prevented the individual from initiating or completing a chosen 
program, unless the evidence establishes that the individual was 
prevented from enrolling or reenrolling in the chosen program or was 
forced to discontinue attendance due to the short-term disability.
    (2) Length of extension. An individual's extended period of 
eligibility shall be for the length of time that the individual was 
prevented from initiating or completing his or her chosen program of 
education. This will be determined as follows--
    (i) If the individual is pursuing a program of education 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 the

[[Page 14675]]

individual was prevented from initiating or completing training during 
his or her original period of eligibility to the earliest of--
    (A) The beginning date of the ordinary term, quarter, or semester 
following the day the individual's training became medically feasible;
    (B) The last date of the individual's original period of 
eligibility as determined in Sec.  21.9530; or
    (C) The date the individual resumed training.
    (ii) If the individual is pursuing a program of education that is 
not organized on a term, quarter, or semester basis, his or her 
extended period of eligibility will contain the same number of days as 
the number of days from the date the individual was prevented from 
initiating or completing training during his or her original period of 
eligibility to the earliest of--
    (A) The date the individual's training became medically feasible; 
or
    (B) The last date of the individual's original period of 
eligibility as determined in Sec.  21.9530.
    (b) Forcibly detained extension. (1) VA will grant an extension of 
the period of eligibility, as determined in Sec.  21.9530, equal to the 
period of time the individual--
    (i) Was captured and forcibly detained by a foreign government or 
power, and
    (ii) Was hospitalized at a military, civilian, or medical facility 
immediately following release from the foreign government or power.
    (2) [Reserved]

(Authority: 38 U.S.C. 3321)

Entitlement


Sec.  21.9550  Entitlement.

    (a) Subject to the provisions of Sec.  21.4020 and this section, an 
eligible individual is entitled to a maximum of 36 months of 
educational assistance (or its equivalent in part-time educational 
assistance) under 38 U.S.C. chapter 33.
    (b)(1) An individual who, as of August 1, 2009, has used 
entitlement under 38 U.S.C. chapter 30, but retains unused entitlement 
under that chapter, makes an irrevocable election to receive 
educational assistance under the provisions of 38 U.S.C. chapter 33 
instead of educational assistance under the provisions of chapter 30, 
will be limited to one month (or partial month) of entitlement under 
chapter 33 for each month (or partial month) of unused entitlement 
under chapter 30 (including any months of chapter 30 entitlement 
previously transferred to a dependent that the individual has revoked).
    (2) An individual, who as of August 1, 2009, was eligible under 38 
U.S.C. chapter 30, had not used any entitlement under that program, was 
making contributions towards chapter 30, or was a servicemember who 
would have been eligible for chapter 30 if he or she had not declined 
participation, will receive 36 months of entitlement under chapter 33.
    (c) Except as provided in Sec. Sec.  21.9560(d), 21.9570(m), and 
21.9635(o), no individual is entitled to more than 36 months of full-
time educational assistance under 38 U.S.C. chapter 33.

(Authority: 38 U.S.C. 3034(a), 3312(a), 3323(a), 3695; Pub. L. 110-
252, 122 Stat. 2377)

Sec.  21.9555   Entitlement to supplemental educational assistance.

    In determining the entitlement of an individual who is eligible for 
supplemental educational assistance, VA will--
    (a) Calculate the individual's entitlement to 38 U.S.C. chapter 33 
educational assistance on the day he or she establishes eligibility for 
supplemental educational assistance; and
    (b) Credit the individual with the same number of months and days 
of entitlement to supplemental educational assistance as the number 
calculated in paragraph (a) of this section.

(Authority: 38 U.S.C. 3023, 3316)

Sec.  21.9560   Entitlement charges.

    (a) Overview. Except as provided in paragraphs (c) through (f) of 
this section, VA will base entitlement charges on the principle that an 
eligible individual who is paid educational assistance for one day of 
full-time pursuit should be charged one day of entitlement.
    (b) Determining entitlement charge. (1) VA will make a charge 
against entitlement as follows:
    (i) Full-time pursuit. If the individual is pursuing a program of 
education on a full-time basis, the entitlement charge will be one of 
the following--
    (A) During any period for which VA pays established charges to the 
institution of higher learning on the individual's behalf, the 
entitlement charge will be one day for each day of the certified 
enrollment period;
    (B) During any period for which VA does not pay established charges 
to the institution of higher learning on the individual's behalf but 
pays a monthly housing allowance to the individual, the entitlement 
charge will be one day for each day of the certified enrollment period 
and/or interval period for which the individual receives the monthly 
housing allowance; or
    (C) During any period for which VA does not pay established charges 
to the institution of higher learning on the individual's behalf or a 
monthly housing allowance to the individual but makes a lump sum 
payment to the individual for books, supplies, equipment, and other 
educational costs, VA will make an entitlement charge of 1 day for 
every $41.67 paid, with any remaining amount rounded to the nearest 
amount evenly divisible by $41.67.
    (ii) Less than full-time pursuit. If the individual is pursuing a 
program of education on a less than a full-time basis, the entitlement 
charge will be one of the following--
    (A) During any period for which VA pays established charges to the 
institution of higher learning on the individual's behalf, the 
individual will be charged a percentage of a day for each day of the 
certified enrollment period determined by dividing the number of course 
hours the individual is pursuing by the number of course hours required 
for full-time pursuit (rounded to the nearest hundredth);
    (B) During any period for which VA does not pay established charges 
to the institution of higher learning on the individual's behalf but 
pays a monthly housing allowance to the individual, the individual will 
be charged a percentage of a day for each day of the certified 
enrollment period and/or interval period for which the individual 
receives the monthly housing allowance determined by dividing the 
number of course hours the individual is pursuing by the number of 
course hours required for full-time pursuit (rounded to the nearest 
hundredth); or
    (C) During any period for which VA does not pay established charges 
to the institution of higher learning on the individual's behalf or a 
monthly housing allowance to the individual but makes a lump sum 
payment to the individual for books, supplies, equipment, and other 
educational costs, VA will make an entitlement charge of 1 day for 
every $41.67 paid, with any remaining amount rounded to the nearest 
amount evenly divisible by $41.67.

(Authority: 38 U.S.C. 3313)


    (2) If the individual changes his or her rate of pursuit after the 
beginning date of the award, VA will--
    (i) Divide the certified enrollment period into separate periods of 
time so that the individual's rate of pursuit is constant within each 
period; and
    (ii) Compute the rate of pursuit separately for each time period.

[[Page 14676]]

    (c) Individuals eligible for, or in receipt of, educational 
assistance other than that authorized under chapter 33. If an 
individual elected 38 U.S.C. chapter 33 by relinquishing educational 
assistance under another program but receives educational assistance 
for a program of education that is approved under the relinquished 
chapter but not approved under 38 U.S.C. chapter 33, VA will make a 
charge against entitlement equivalent to the entitlement charge--
    (1) That would be made under the provisions of Sec.  21.7076, if 
the individual relinquished eligibility under 38 U.S.C. chapter 30;
    (2) That would be made under the provisions of Sec.  21.7576 if the 
individual relinquished eligibility under 10 U.S.C. chapter 1606; or
    (3) That would be made under 10 U.S.C. chapter 1607 if the 
individual relinquished eligibility under 10 U.S.C. chapter 1607.
    (d) No entitlement charge. VA will not make a charge against an 
individual's entitlement--
    (1) For an approved licensing or certification test as provided 
under Sec.  21.9665; or

(Authority: 38 U.S.C. 3315)


    (2) For tutorial assistance as provided under Sec.  21.9685; or

(Authority: 38 U.S.C. 3314)


    (3) For the rural relocation benefit as provided under Sec.  
21.9660; or

(Authority: 38 U.S.C. 3318)


    (4) For pursuit of a course or courses when the individual--
    (i) Had to discontinue the course or courses as a result of being 
ordered to--
    (A) Active duty service under 10 U.S.C. 688, 12301(a), 12301(d), 
12301(g), 12302, or 12304; or
    (B) A new duty location or assignment or to perform an increased 
amount of work; and
    (ii) Did not receive credit or lost training time for any portion 
of the period of enrollment in the course or courses for which the 
eligible individual was pursuing to complete his or her approved 
educational, professional, or vocational objective as a result of 
having to discontinue pursuit.

(Authority: 38 U.S.C. 3312(c))


    (e) Interruption to conserve entitlement. An individual may not 
interrupt a certified period of enrollment for the purpose of 
conserving entitlement. An institution of higher learning may not 
certify a period of enrollment for a fractional part of the normal 
term, quarter, or semester if the individual is enrolled for the entire 
term, quarter, or semester. VA will make a charge against entitlement 
for the entire period of certified enrollment, if the individual is 
otherwise eligible for educational assistance, except when educational 
assistance is interrupted for any of the following conditions:
    (1) Enrollment is terminated;
    (2) The individual cancels his or her enrollment and does not 
negotiate a check or receive a direct deposit for educational 
assistance provided under this chapter for any part of the certified 
period of enrollment;
    (3) The individual interrupts his or her enrollment at the end of 
any term, quarter, or semester within a certified period of enrollment 
and does not negotiate a check or receive a direct deposit for 
educational assistance provided under this chapter for the succeeding 
term, quarter, or semester; or
    (4) The individual requests interruption or cancellation for any 
break when a school was closed during a certified period of enrollment, 
and VA continued payments under an established policy based upon an 
Executive Order of the President or an emergency situation regardless 
of whether or not the individual negotiated a check or received a 
direct deposit for educational assistance provided under this chapter 
for any part of the certified enrollment period.

(Authority: 38 U.S.C. 3323(c))


    (f) Overpayment cases. VA will make a charge against entitlement 
for an overpayment only if the overpayment is discharged in bankruptcy, 
is waived and not recovered, or is compromised.
    (1) If the overpayment is discharged in bankruptcy or is waived and 
not recovered, the charge against entitlement will be the appropriate 
rate for the elapsed period covered by the overpayment (exclusive of 
interest, administrative costs of collection, court costs and marshal 
fees).
    (2) If the overpayment is compromised and the compromise offer is 
less than the amount of interest, administrative costs of collection, 
court costs and marshal fees, the charge against entitlement will be at 
the appropriate rate for the elapsed period covered by the overpayment 
(exclusive of interest, administrative costs of collection, court costs 
and marshal fees).
    (3) If the overpayment is compromised and the compromise offer is 
equal to or greater than the amount of interest, administrative costs 
of collection, court costs and marshal fees, the charge against 
entitlement will be determined by--
    (i) Subtracting from the sum paid in the compromise offer the 
amount attributable to interest, administrative costs of collection, 
court costs and marshal fees;
    (ii) Subtracting the remaining amount of the overpayment balances 
as determined in paragraph (f)(3)(i) of this section from the amount of 
the original overpayment (exclusive of interest, administrative costs 
of collection, course costs and marshal fees);
    (iii) Dividing the result obtained in paragraph (f)(3)(ii) of this 
section from the amount of the original overpayment (exclusive of 
interest, administrative costs of collection, court costs and marshal 
fees); and
    (iv) Multiplying the percentage obtained in paragraph (f)(3)(iii) 
of this section by the amount of entitlement otherwise chargeable for 
the period of the original overpayment.

(Authority: 38 U.S.C. 3034(a), 38 U.S.C. 3323(a), 3685)

Transfer of Entitlement to Basic Educational Assistance to Dependents


Sec.  21.9570  Transfer of entitlement.

    An individual entitled to educational assistance under 38 U.S.C. 
chapter 33 based on his or her own active duty service, and who is 
approved by a service department to transfer entitlement, may transfer 
up to a total of 36 months of his or her entitlement to a dependent (or 
among dependents). A transferor may not transfer an amount of 
entitlement that is greater than the entitlement he or she has 
available at the time of transfer.
    (a) Application of sections in subpart P to individuals in receipt 
of transferred entitlement. In addition to the rules in this section, 
the following sections apply to a dependent in the same manner as they 
apply to the individual from whom entitlement was transferred.
    (1) Definitions. Section 21.9505--Definitions.

(Authority: 38 U.S.C. 3319)


    (2) Claims and applications. Section 21.9510--Claims, VA's duty to 
assist, and time limits.

(Authority: 38 U.S.C. 3319)


    (3) Eligibility.
    (i) Section 21.9530--Eligibility time limit, paragraphs (d) and (e) 
only; and
    (ii) Section 21.9535--Extended period of eligibility, except that 
extensions to dependents are subject to the transferor's right to 
revoke or modify transfer at any time and that VA may only extend a 
child's ending date to the date the child attains age 26.

(Authority: 38 U.S.C. 3319)



[[Page 14677]]


    (4) Entitlement.
    (i) Section 21.9550--Entitlement;
    (ii) Section 21.9555--Entitlement to supplemental educational 
assistance;
    (iii) Section 21.9560--Entitlement charges.

(Authority: 38 U.S.C. 3319)


    (5) Counseling.
    (i) Section 21.9580--Counseling;
    (ii) Section 21.9585--Travel expenses.

(Authority: 38 U.S.C. 3319)


    (6) Approved programs of education and courses.
    (i) Section 21.9590--Approved programs of education and courses;
    (ii) Section 21.9600--Overcharges.

(Authority: 38 U.S.C. 3319)


    (7) Payments--Educational assistance.
    (i) Section 21.9620--Educational assistance;
    (ii) Section 21.9625--Beginning dates, except for paragraphs (e) 
and (h);
    (iii) Section 21.9630--Suspension or discontinuance of payments;
    (iv) Section 21.9635--Discontinuance dates, except for paragraphs 
(n) and (o);
    (v) Section 21.9640--Rates of payment of educational assistance;
    (vi) Section 21.9650--Increase in educational assistance;
    (vii) Section 21.9655--Rates of supplemental educational 
assistance;
    (viii) Section 21.9660--Rural relocation benefit;
    (ix) Section 21.9665--Reimbursement for licensing or certification 
tests;
    (x) Section 21.9670--Work-study allowance;
    (xi) Section 21.9675--Conditions that result in reduced rates or no 
payment;
    (xii) Section 21.9680--Certifications and release of payments;
    (xiii) Section 21.9685--Tutorial assistance;
    (xiv) Section 21.9690--Nonduplication of educational assistance;
    (xv) Section 21.9695--Overpayments, except that the dependent and 
transferor are jointly and severally liable for any amount of 
overpayment of educational assistance to the dependent; and

(Authority: 38 U.S.C. 3319)


    (xvi) Section 21.9700--Yellow Ribbon Program.

(Authority: 38 U.S.C. 3317)


    (8) Pursuit of courses.
    (i) Section 21.9710--Pursuit;
    (ii) Section 21.9715--Advance payment certification;
    (iii) Section 21.9720--Certification of enrollment;
    (iv) Section 21.9725--Progress and conduct;
    (v) Section 21.9735--Other required reports;
    (vi) Section 21.9740--False, late, or missing reports; and
    (vii) Section 21.9745--Reporting fee.

(Authority: 38 U.S.C. 3319)


    (9) Course assessment. Section 21.9750--Course measurement.

(Authority: 38 U.S.C. 3319)


    (10) Administrative. Section 21.9770--Administrative.

(Authority: 38 U.S.C. 3319)


    (b) Eligible dependents.
    (1) An individual transferring entitlement under this section may 
transfer entitlement to:
    (i) The individual's spouse;
    (ii) One or more of the individual's children; or
    (iii) A combination of the individuals referred to in paragraphs 
(b)(1)(i) and (ii) of this section.
    (2) A spouse must meet the definition of spouse in Sec.  3.50(a) of 
this chapter at the time of transfer.
    (3) A child must meet the definition of child in Sec.  3.57 of this 
chapter at the time of transfer. The transferor must make the required 
designation shown in Sec.  21.9570(d)(1) before the child attains the 
age of 23.
    (4) A stepchild, who meets VA's definition of child in Sec.  3.57 
of this chapter at the time of transfer and who is temporarily not 
living with the transferor, remains a member of the transferor's 
household if the actions and intentions of the stepchild and transferor 
establish that normal family ties have been maintained during the 
temporary absence.

(Authority: 38 U.S.C. 3319)


    (c) Timeframe during which an individual may transfer entitlement. 
An individual approved by his or her military department to transfer 
entitlement may do so at any time while serving as a member of the 
Armed Forces, subject to the transferor's 15-year period of eligibility 
as provided in Sec.  21.9530.

(Authority: 38 U.S.C. 3319)


    (d) Designating dependents; designating the amount to transfer; and 
period of transfer.
    (1) An individual transferring entitlement under this section must:
    (i) Designate the dependent or dependents to whom such entitlement 
is being transferred;
    (ii) Designate the number of months of entitlement to be 
transferred to each dependent; and
    (iii) Specify the beginning date and ending date of the period for 
which the transfer is effective for each dependent.
    (2) VA will accept the transferor's designations as shown on any 
document signed by the transferor that shows the information required 
in paragraphs (d)(1)(i) through (d)(1)(iii) of this section.

(Authority: 38 U.S.C. 3319)


    (e) Maximum months of entitlement transferable.
    (1) The maximum amount of entitlement a transferor may transfer is 
the lesser of:
    (i) Thirty-six months of his or her entitlement; or
    (ii) The maximum amount authorized by the Secretary of the military 
department concerned; or
    (iii) The amount of entitlement he or she has available at the time 
of transfer.
    (2) The transferor may transfer up to the maximum amount of 
transferable entitlement:
    (i) To one dependent; or
    (ii) Divided among his or her designated dependents in any manner 
he or she chooses.

(Authority: 38 U.S.C. 3319)


    (f) Revocation of transferred entitlement.
    (1) A transferor may revoke any unused portion of transferred 
entitlement at any time by submitting a written notice to both the 
Secretary of Veterans Affairs and the Secretary of the military 
department concerned that initially approved the transfer of 
entitlement. VA will accept a copy of the written notice addressed to 
the military department as sufficient written notification to VA.
    (2) The revocation will be effective the later of--
    (i) The date VA receives the notice of revocation; or
    (ii) The date the military department concerned receives the notice 
of revocation.

(Authority: 38 U.S.C. 3319)


    (g) Modifying a transfer of entitlement.
    (1) A transferor may modify the designations he or she made under 
paragraph (d) of this section at any time. Any modification made will 
apply only with respect to unused transferred entitlement. The 
transferor must submit a written notice to both the Secretary of 
Veterans Affairs and the Secretary of the military department concerned 
that initially approved the transfer of entitlement. VA will accept a 
copy of the written notice addressed to the military department as 
sufficient written notification to VA.
    (2) The modification will be effective the later of--

[[Page 14678]]

    (i) The date VA receives the notice of modification; or
    (ii) The date the military department concerned receives the notice 
of modification.

(Authority: 38 U.S.C. 3319)


    (h) Prohibition on treatment of transferred entitlement as marital 
property. Entitlement transferred under this section may not be treated 
as marital property, or the asset of a marital estate, subject to 
division in a divorce or other civil proceeding.

(Authority: 38 U.S.C. 3319)


    (i) Entitlement charge to transferor. VA will reduce the 
transferor's entitlement at the rate of 1 month of entitlement for each 
month of transferred entitlement used by a dependent or dependents.

(Authority: 38 U.S.C. 3319)


    (j) Secondary school diploma (or equivalency certificate). Children 
who have reached age 18 and spouses may use transferred entitlement to 
pursue and complete the requirements of a secondary school diploma (or 
equivalency certificate).

(Authority: 38 U.S.C. 3319)


    (k) Rate of payment of educational assistance. VA will apply the 
rules in Sec.  21.9640 (and Sec. Sec.  21.9650 and 21.9655 when 
applicable) to determine the educational assistance rate that would 
apply to the transferor. VA will pay the dependent and/or the 
dependent's institution of higher learning (or school, educational 
institution, or institution as defined in Sec.  21.4200(a) if the 
dependent is using transferred entitlement to pursue and complete the 
requirements of a secondary school diploma or equivalency certificate) 
the amounts of educational assistance payable under 38 U.S.C. chapter 
33 in the same manner and at the same rate as if the transferor were 
enrolled in the dependent's program of education, except that VA will--
    (1) Disregard the fact that either the transferor or the dependent 
child is (or both are) on active duty, and pay the veteran rate to a 
dependent child;
    (2) Pay the veteran rate to a surviving spouse; and
    (3) Proportionally adjust the payment amounts, other than the book 
stipend, a dependent would otherwise receive under Sec.  21.9640 if the 
dependent's months of entitlement will exhaust during the certified 
enrollment period, by--
    (i) Determining the amount of established charges the dependent 
would otherwise be eligible to receive for the entire enrollment 
period, then dividing this amount by the number of days in the 
dependent's quarter, semester, or term, as applicable, to determine the 
dependent's daily rate, then determining the actual amount of 
established charges to be paid by multiplying the dependent's daily 
rate by his or her remaining months and days of entitlement to 
educational assistance as provided under Sec.  21.9570; and
    (ii) Discontinuing the dependent's monthly housing allowance 
effective as of the date the dependent's months and days of entitlement 
exhausts.

(Authority: 38 U.S.C. 3319)


    (l) Transferor fails to complete required service contract that 
afforded participation in the transferability program.
    (1) Dependents are not eligible for transferred entitlement if the 
transferor fails to complete the amount of service he or she agreed to 
serve in the Armed Forces in order to participate in the 
transferability program, unless--
    (i) The transferor did not complete the service due to:
    (A) His or her death;
    (B) A medical condition that preexisted such service on active duty 
and that the Secretary of the military department concerned determines 
is not service-connected;
    (C) A hardship, as determined by the Secretary of the military 
concerned; or
    (D) A physical or mental condition that was not characterized as a 
disability and did not result from the individual's own willful 
misconduct but interfered with the individual's performance of duty, as 
determined by the Secretary of the military department concerned; or
    (ii) The transferor is considered to have completed his or her 
service agreement as a result of being discharged for--
    (A) A disability; or
    (B) A reduction in force.
    (2) VA will treat all payments of educational assistance to 
dependents as overpayments if the transferor does not complete the 
required service unless the transferor does not complete the required 
service due to one of the reasons stated in paragraph (l)(1)(i) of this 
section or the transferor was not discharged for one of the reasons 
stated in paragraph (l)(1)(ii) of this section.

(Authority: 38 U.S.C. 3034(a), 3311(c)(4), 3319)


    (m) Dependent is eligible for educational assistance under this 
section and is eligible for educational assistance under 38 U.S.C. 
chapter 33 based on his or her own service. Dependents who are eligible 
for payment of educational assistance through transferred entitlement 
and are eligible for payment under 38 U.S.C. chapter 33 based on their 
own active service:
    (1) May receive educational assistance payable under this section 
and educational assistance payable based on their own active duty 
service for the same course; and
    (2) Are not subject to the 48 months limit on training provided for 
in Sec.  21.4020 when combining transferred entitlement with their own 
entitlement earned under 38 U.S.C. chapter 33 as long as the only 
educational assistance paid is under 38 U.S.C. chapter 33. If the 
dependent is awarded educational assistance under another program 
listed in Sec.  21.4020 (other than 38 U.S.C. chapter 33), the 48 
months limit on training will apply.

(Authority: 38 U.S.C. 3034(a), 3319, 3322, 3323(a), 3695)

Counseling


Sec.  21.9580  Counseling.

    An individual may receive counseling from VA before beginning 
training and during training. VA will apply the provisions of Sec.  
21.7100 to beneficiaries under 38 U.S.C. chapter 33 in the same manner 
as they are applied to individuals under 38 U.S.C. chapter 30.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3697A)

Sec.  21.9585  Travel expenses.

    VA will not pay for any costs of travel to and from the place of 
counseling regardless of whether the individual requests educational 
and vocational counseling or whether the counseling is required.

(Authority: 38 U.S.C. 111, 3323(c))

Approved Programs of Education and Courses


Sec.  21.9590  Approved programs of education and courses.

    (a) Payments of educational assistance are based on pursuit of a 
program of education. In order to receive educational assistance under 
38 U.S.C. chapter 33, an eligible individual must--
    (1) Be pursuing an approved program of education;
    (2) Be pursuing refresher, remedial, or deficiency courses as these 
courses are defined in Sec.  21.7020(b);
    (3) Be pursuing other preparatory or special education or training 
courses necessary to enable the individual to pursue an approved 
program of education;

[[Page 14679]]

    (4) Have taken an approved licensing or certification test, for 
which he or she is requesting reimbursement; or
    (5) Be an individual who has taken a course for which the 
individual received tuition assistance provided under a program 
administered by the Secretary of a military department under 10 U.S.C. 
2007(a) or (c), for which the individual is requesting educational 
assistance for the amount of established charges not covered by 
military tuition assistance.

(Authority: 38 U.S.C. 3313, 3323(a), 3689)


    (b) Approval of the selected program of education. Subject to 
paragraph (a), VA will approve a program of education under 38 U.S.C. 
chapter 33 selected by the individual if:
    (1) The program meets the definition of a program of education in 
Sec.  21.9505;
    (2) Except for a program consisting of a licensing or certification 
test, the program has an educational, vocational, or professional 
objective as described in Sec.  21.7020(b)(13) or (22);
    (3) The 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 individual maintain employment in a vocation 
or profession, the individual is not already qualified for the 
objective of the program.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3471, 3689)


    (c) Change of program. In determining whether an individual may 
change his or her selected program of education, VA will apply the 
provisions of Sec.  21.4234.
    (d) Programs not authorized under 38 U.S.C. chapter 33. If an 
individual elected to receive benefits under 38 U.S.C. chapter 33 by 
relinquishing eligibility under 38 U.S.C. chapter 30, or 10 U.S.C. 
chapter 1606 or 1607, and the eligible individual requests educational 
assistance for a program of education that is not authorized to be 
available to the individual under the provisions of 38 U.S.C. chapter 
33, but is available under the chapter the individual relinquished, VA 
will provide educational assistance at the rate payable under the 
provisions of the relinquished chapter to the eligible individual for 
pursuit of any program of education that meets the approval criteria 
under--
    (1) 38 U.S.C. chapter 30, if the individual was eligible under that 
chapter;
    (2) 10 U.S.C. chapter 1606, if the individual was eligible under 
that chapter; or
    (3) 10 U.S.C. chapter 1607, if the individual was eligible under 
that chapter.

(Authority: Pub. L. 110-252, 122 Stat. 2377)

Sec.  21.9600  Overcharges.

    (a) Overcharges by educational institutions may result in the 
disapproval of enrollments. VA may disapprove an institution of higher 
learning for further enrollments if the institution of higher learning 
charges an individual, or receives from an individual, an amount for 
tuition and fees that exceeds the established charges that the 
institution of higher learning requires from similarly circumstanced 
individuals enrolled in the same course.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690(a))


    (b) Overcharges by organizations or entities offering licensing or 
certification tests may result in disapproval of tests. VA may 
disapprove an organization or entity offering a licensing or 
certification test when the organization or entity offering the test 
charges an individual, or receives from an individual, an amount for 
fees that exceeds the established fees that the organization or entity 
requires from similarly circumstanced individuals taking the same test.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3689(d), 3690(a))

Payments--Educational Assistance


Sec.  21.9620   Educational assistance.

    VA will pay educational assistance for an eligible individual's 
pursuit of an approved program of education. The eligible individual 
and/or the individual's educational institution will receive payment 
amounts in accordance with the formulas listed in Sec.  21.9640. The 
maximum amounts of tuition and fees payable for the upcoming academic 
year under 38 U.S.C. chapter 33 will be published in the ``Notices'' 
section of the Federal Register by the first of August of each calendar 
year. The maximum amounts payable may also be obtained by visiting the 
GI Bill Web site at http://www.gibill.va.gov or by calling VA's 
customer service department toll-free at 1-888-442-4551. The maximum 
amounts payable, as published, will be effective for each term, 
quarter, or semester that begins during the academic year.

(Authority: 38 U.S.C. 3313, 3314, 3315, 3316, 3317)

Sec.  21.9625   Beginning dates.

    VA will determine the beginning date of an award or increased award 
of educational assistance under this section, but in no case will the 
beginning date be earlier than August 1, 2009. When more than one 
paragraph in this section applies, VA will award educational assistance 
using the latest of the applicable beginning dates.

(Authority: 38 U.S.C. 3313, 3316, 3323(a), 5110, 5111, 5113)


    (a) Entrance or reentrance including change of program or 
institution of higher learning. When an eligible individual enters or 
reenters into training (including a reentrance following a change of 
program or institution of higher learning), the beginning date of his 
or her award of educational assistance will be determined as follows:
    (1) For other than a licensing or certification test. (i) If the 
award is an award for the first period of enrollment for which the 
eligible individual began pursuing his or her program of education, the 
beginning date will be the latest of--
    (A) The date the institution of higher learning certifies under 
paragraph (b) or (c) of this section;
    (B) One year before the date of claim as determined by Sec.  
21.1029(b);
    (C) The effective date of the approval of the program of education; 
or
    (D) One year before the date VA receives approval notice for the 
program of education.
    (ii) If the award is an award for a second or subsequent period of 
enrollment for which the eligible individual is pursuing a program of 
education, the effective date of the award will be the latest of--
    (A) The date the institution of higher learning certifies under 
paragraph (b) or (c) of this section;
    (B) The effective date of the approval of the program of education; 
or
    (C) One year before the date VA receives the approval notice for 
the program of education.

(Authority: 38 U.S.C. 3034(a), 3313, 3316, 3323(a), 3672, 5103)


    (2) For a licensing or certification test. VA will award 
educational assistance for the cost of a licensing or certification 
test only when the eligible individual takes such test on or after 
August 1, 2009--
    (i) While the test is approved under 38 U.S.C. chapter 36;
    (ii) While the individual is eligible for educational assistance 
under this subpart; and
    (iii) No more than one year before the date VA receives a claim for 
reimbursement of the cost of the test.

(Authority: 38 U.S.C. 3034(a), 3315, 3323(a), 3452(b), 3689)



[[Page 14680]]


    (b) Certification for program of education that leads to a standard 
college degree. (1) When the individual enrolls in a course offered by 
independent study or distance learning, the beginning date of the award 
or increased award of educational assistance will be the date the 
eligible individual begins pursuit of the course according to the 
regularly established practices of the institution of higher learning.
    (2) When the individual enrolls in a resident course, the beginning 
date of the award or increased award of educational assistance will be 
the first scheduled date of classes for the term, quarter, or semester 
in which the eligible individual is enrolled, except as provided in 
paragraphs (b)(3), (b)(4), and (b)(5) of this section.
    (3) When the individual enrolls in a resident course whose first 
scheduled class begins after the calendar week when, according to the 
school's academic calendar, classes are scheduled to begin for the 
term, quarter, or semester, the beginning date of the award or 
increased award of educational assistance allowance will be the actual 
date of the first class scheduled for that particular course.
    (4) When the individual enrolls in a resident course, the beginning 
date of the award will be the date of reporting provided that--
    (i) The published standards of the school require the eligible 
individual to register before reporting; and
    (ii) The published standards of the school require the eligible 
individual to report no more than 14 days before the first scheduled 
date of classes for the term, quarter, or semester for which the 
eligible individual has registered.
    (5) When the eligible individual enrolls in a resident course and 
the first day of classes is more than 14 days after the date of 
registration, the beginning date of the award or increased award of 
educational assistance will be the first day of classes.

(Authority: 38 U.S.C. 3313, 3316, 3323)


    (c) Certification for program of education that does not lead to a 
standard college degree. (1) When an eligible individual enrolls at an 
institution of higher learning for a program of education that is 
offered in residence but that does not lead to a standard college 
degree, the beginning date of the award of educational assistance will 
be as stated in paragraph (b) of this section.

(Authority: 38 U.S.C. 3313(b), 3323)


    (2) When an eligible individual enrolls at an institution of higher 
learning for a program of education that is offered by correspondence, 
the beginning date of the award of educational assistance will be the 
later of--
    (i) The date the first lesson was sent, or
    (ii) The date of affirmance (as defined in Sec.  21.7020(b)(36)).

(Authority: 38 U.S.C. 3313, 3316, 3323)


    (d) Liberalizing laws and VA issues. When a liberalizing law or VA 
issue affects the beginning date of an eligible individual's award of 
educational assistance, the beginning date will be adjusted in 
accordance with the facts found, but not earlier than the effective 
date of the act or administrative issue.

(Authority: 38 U.S.C. 3323(c), 5113)


    (e) Correction of military records. As determined in Sec.  21.9530, 
the eligibility of a veteran may arise because the nature of the 
veteran's discharge or release is changed by appropriate military 
authority. In these cases, the beginning date of the veteran's 
educational assistance will be in accordance with facts found, but not 
earlier than the date the nature of the discharge or release was 
changed.

(Authority: 38 U.S.C.3323(c))


    (f) Individuals in a penal institution. If an eligible individual 
is not receiving, or is receiving a reduced rate, of educational 
assistance under Sec.  21.9675 (based on incarceration in a Federal, 
State, local, or other penal institution or correctional facility due 
to a felony conviction), the rate will be increased or assistance will 
begin effective the earlier of the following:
    (1) The date the tuition and fees are no longer being paid under a 
Federal (other than one administered by VA), State, or local program; 
or
    (2) The date the individual is released from the penal institution 
or correctional facility.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3482(g))


    (g) Increase (``kicker'') based on critical skills or specialty. If 
an eligible individual is entitled to an increase (``kicker'') in the 
monthly rate of educational assistance under 38 U.S.C. 3316, the 
effective date of that increase ('kicker'') will be the later of--
    (1) The beginning date of an eligible individual's award as 
determined by paragraphs (a) through (e) of this section; or
    (2) The first date on which the eligible individual is entitled to 
the increase (``kicker'') as determined by the Secretary of the 
military department concerned.

(Authority: 10 U.S.C. 16131(i); 38 U.S.C. 3015(d), 3316(a))


    (h) Increase in percentage of maximum amount payable based on 
length of active duty service requirements. If an eligible individual 
is entitled to an increase in the percentage of the maximum amount of 
educational assistance payable as a result of meeting additional length 
of active duty service requirements, the effective date of that 
increase will be the later of--
    (1) The beginning date of the eligible individual's award as 
determined by paragraphs (a) through (e) of this section; or
    (2) The first day of the term, quarter, or semester following the 
term, quarter, or semester in which the eligible individual becomes 
entitled to an increase in the percentage of the maximum amount 
payable.

(Authority: 38 U.S.C. 3311, 3313)


    (i) Spouse eligible for transferred entitlement. If a spouse is 
eligible for transferred entitlement under Sec.  21.9570, the beginning 
date of the award of educational assistance will be no earlier than the 
latest of the following dates--
    (1) The date the Secretary of the military department concerned 
approves the transferor to transfer entitlement;
    (2) The date the transferor completes 6 years of service in the 
Armed Forces;
    (3) The date the transferor specified in his or her designation of 
transfer; or
    (4) The date the spouse first meets the definition of spouse in 
Sec.  3.50(a) of this chapter.

(Authority: 38 U.S.C. 3319)


    (j) Child eligible for transferred entitlement. If a child is 
eligible for transferred entitlement under Sec.  21.9570, the beginning 
date of the award of educational assistance will be no earlier than the 
latest of the following dates--
    (1) The date the Secretary of the service department concerned 
approves the transferor to transfer entitlement;
    (2) The date the transferor completes 10 years of service in the 
Armed Forces;
    (3) The date the transferor specified in his or her designation of 
transfer;
    (4) The date the child first meets the definition of child in Sec.  
3.57 of this chapter; or
    (5) Either--
    (i) The date the child completes the requirements of a secondary 
school diploma (or equivalency certificate); or
    (ii) The date the child attains age 18.

(Authority: 38 U.S.C. 3319)


    (k) Change in active duty status. If an individual is released or 
discharged from active duty during a certified

[[Page 14681]]

period of enrollment, VA will begin paying--
    (1) Tuition and fees using the provisions of Sec.  21.9640(b) or 
(c), whichever is applicable, effective the first day of the enrollment 
period following the enrollment period during which the individual was 
discharged;
    (2) The monthly housing allowance beginning the 1st day of the 
month following the date the individual was discharged; and
    (3) The book stipend beginning the first day of the enrollment 
period following the enrollment period during which the individual was 
discharged.
    (l) Election to receive benefits under 38 U.S.C. chapter 33. If an 
individual makes an election to receive benefits under 38 U.S.C. 
chapter 33 in lieu of benefits under 10 U.S.C. chapter 106a, 1606, or 
1607, or 38 U.S.C. chapter 30 in accordance with 38 CFR 21.9520(c), VA 
will begin paying benefits under 38 U.S.C. chapter 33 effective the 
later of the following--
    (1) August 1, 2009;
    (2) The date the individual became eligible for educational 
assistance under 38 U.S.C. chapter 33;
    (3) One year before the date the valid election request was 
received; or
    (4) The effective date of the election as requested by the 
claimant.


Sec.  21.9630  Suspension or discontinuance of payments.

    VA may suspend or discontinue payment of educational assistance in 
accordance with Sec. Sec.  21.4210 through 21.4216.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690)

Sec.  21.9635  Discontinuance dates.

    The effective date of a reduction or discontinuance of educational 
assistance will be as stated in this section. If more than one type of 
reduction or discontinuance is involved, VA will reduce or discontinue 
educational assistance using the earliest of the applicable dates.
    (a) Death of eligible individual. (1) If the eligible individual 
receives a lump sum payment under Sec.  21.9640(b)(1)(iii), 
(b)(2)(iii), (c)(1)(ii), or (c)(2)(ii) and dies before the end of the 
period covered by the lump sum payment, the discontinuance date of 
educational assistance for the purpose of that lump sum payment will be 
the last date of the period covered by the lump sum payment.
    (2) If the institution of higher learning receives a lump sum 
payment for established charges on behalf of an eligible individual and 
the individual dies before the end of the period covered by the lump 
sum payment, the discontinuance date for the purpose of that lump sum 
payment will be the last date of the period covered by the lump sum 
payment. The institution of higher learning will be required to return 
to VA any portion of the established charges paid by VA that would 
normally be refunded to a similarly circumstanced individual according 
to the regularly established practices of the institution of higher 
learning.
    (3) If the eligible individual receives an advance payment of the 
monthly housing allowance pursuant to Sec.  21.9680(b)(2) and dies 
before the period covered by the advance payment ends, the 
discontinuance date of educational assistance shall be the last date of 
the period covered by the advance payment.
    (4) For all other payments, if the eligible individual dies while 
pursuing a program of education, the discontinuance date of educational 
assistance will be the end of the month during which the individual 
last attended.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(d), 3680(e))


    (b) First instance of withdrawal of course. In the first instance 
of a withdrawal from a course or courses for which the eligible 
individual received educational assistance, VA will consider mitigating 
circumstances to exist with respect to the withdrawal of a course or 
courses totaling no more than six semester hours or the equivalent. In 
determining whether a withdrawal is the first instance of withdrawal, 
VA will not consider a course or courses dropped during an institution 
of higher learning's drop-add period in accordance with Sec.  
21.4200(l). If mitigating circumstances are considered to exist in 
accordance with this paragraph, VA will terminate or reduce educational 
assistance effective the end of the month during which the withdrawal 
occurred.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a)(1))


    (c) Withdrawal or unsatisfactory completion of all courses. (1) If 
the eligible individual, for reasons other than being called or ordered 
to active duty service, withdraws from all courses or receives all 
nonpunitive grades and, in either case, there are no mitigating 
circumstances, VA will terminate educational assistance effective the 
first date of the term in which the withdrawal occurs or the first date 
of the term for which nonpunitive grades are assigned.
    (2) If the eligible individual withdraws from all courses with 
mitigating circumstances or withdraws from all courses for which a 
punitive grade is or will be assigned, VA will terminate educational 
assistance for--
    (i) Residence training effective the last date of attendance; and
    (ii) Independent study or distance learning effective on the 
official date of change in status under the practices of the 
institution of higher learning.
    (3) When an eligible individual withdraws from an approved 
correspondence course offered by an institution of higher learning, VA 
will terminate educational assistance effective the date the last 
lesson was serviced.

(Authority: 38 U.S.C. 3323, 3680(a))


    (d) Reduction in the rate of pursuit of a program of education. If 
the eligible individual reduces the rate of pursuit by withdrawing from 
one or more courses in a program of education but continues training in 
one or more courses, VA will apply the provisions of this paragraph.
    (1) If the reduction in the rate of pursuit occurs other than on 
the first date of the term, VA will reduce the eligible individual's 
educational assistance effective the end of the month during which the 
reduction occurred when the circumstances in either paragraphs 
(d)(1)(i) or (d)(1)(ii) apply--
    (i) A nonpunitive grade is assigned for the course from which the 
eligible individual withdraws and the withdrawal occurs with mitigating 
circumstances.
    (ii) A punitive grade is assigned for the course from which the 
eligible individual withdraws.
    (2) VA will reduce educational assistance effective the first date 
of the enrollment in which the reduction occurs when--
    (i) The reduction occurs on the first date of the term; or
    (ii) A nonpunitive grade is assigned for the course from which the 
eligible individual withdraws, and--
    (A) The eligible individual does not withdraw because he or she is 
called to active duty service, or in the case of an individual serving 
on active duty, he or she is not ordered to a new duty location or 
assignment, or is not ordered to perform an increased amount of work, 
and
    (B) The withdrawal occurs without mitigating circumstances.
    (3) An eligible individual enrolled in several courses within a 
program of education, who reduces his or her rate of pursuit by 
completing one or more of the courses while continuing training in 
others, may receive an interval payment based on the total number of 
enrolled courses he or she completed if the

[[Page 14682]]

requirements of Sec.  21.9680(b)(5) are met. If those requirements are 
not met, VA will reduce the eligible individual's educational 
assistance effective the end of the month during which the individual 
completed each course (or courses).

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    (e) End of course or period of enrollment. If an eligible 
individual's course or period of enrollment ends, the effective date of 
reduction or discontinuance of the individual's award of educational 
assistance will be the ending date of the course or period of 
enrollment as certified by the institution of higher learning.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    (f) Nonpunitive grade. (1) If an eligible individual does not 
officially withdraw from a particular course and the individual 
receives a nonpunitive grade for that course, VA will reduce the 
individual's educational assistance effective the first date of 
enrollment for the term in which the grade applies unless mitigating 
circumstances are found.
    (2) If an eligible individual does not officially withdraw from a 
particular course and the individual receives a nonpunitive grade for 
that course, VA will reduce the individual's educational assistance 
effective the end of the month during which the student last attended 
when mitigating circumstances are found.
    (3) If an eligible individual receives an incomplete grade for a 
course or courses, VA will delay creating an overpayment for such 
course or courses to allow the individual an opportunity to complete 
the course or courses. However, if the incomplete grade is not replaced 
with a punitive grade, VA will reduce the individual's educational 
assistance in accordance with paragraph (f)(1) or (2) of this section 
effective the earliest of--
    (i) The last date permitted by the IHL to complete the course;
    (ii) The date the IHL permanently assigns a nonpunitive grade;
    (iii) One year from the date the incomplete grade was assigned.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680)


    (g) Discontinued by VA. If VA discontinues payment to an eligible 
individual following procedures stated in Sec.  21.4210(d) and (g), the 
discontinuance date of payment of educational assistance will be--
    (1) The date the Director of the VA Regional Processing Office of 
jurisdiction first suspended payments provided in Sec.  21.4210, if the 
discontinuance was preceded by suspension; or
    (2) The end of the month during which VA made the decision to 
discontinue payments under Sec.  21.9630 or Sec.  21.4210(d) and (g), 
if the Director of the VA Regional Processing Office of jurisdiction 
did not suspend payments before the discontinuance.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690)


    (h) Disapproved by State approving agency. If a State approving 
agency disapproves a program of education in which an eligible 
individual is enrolled, the discontinuance date of payment of 
educational assistance will be--
    (1) The date the Director of the VA Regional Processing Office of 
jurisdiction first suspended payments provided in Sec.  21.4210 if 
disapproval was preceded by such a suspension; or
    (2) The end of the month in which the disapproval is effective or 
VA receives notice of the disapproval, whichever is later, provided the 
Director of the VA Regional Processing Office of jurisdiction did not 
suspend payments before the disapproval.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3672(a), 3690)


    (i) Disapproval by VA. If VA disapproves a program of education in 
which an eligible individual is enrolled, the discontinuance date of 
educational assistance will be--
    (1) The date the Director of the VA Regional Processing Office of 
jurisdiction first suspended payments, as provided in Sec.  21.4210, if 
such suspension preceded the disapproval; or
    (2) The end of the month in which the disapproval occurred, 
provided that the Director of the VA Regional Processing Office of 
jurisdiction did not suspend payments before the disapproval.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3671(b), 3672(a), 3690)


    (j) Unsatisfactory progress. If an eligible individual's progress 
is unsatisfactory, his or her educational assistance will be 
discontinued effective the earlier of the following:
    (1) The end of the month during which the institution of higher 
learning discontinues the eligible individual's enrollment; or
    (2) The end of the month during which the eligible individual's 
progress becomes unsatisfactory according to the institution of higher 
learning's regularly established standards of progress, conduct, or 
attendance.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)


    (k) False or misleading statements. Payments may not be based on 
false or misleading statements, claims, or reports. If educational 
assistance is paid as the result of an individual submitting false or 
misleading statements, claims, or reports, VA will apply the provisions 
of Sec.  21.4006 and 21.4007 in the same manner as they apply to 
veterans under 38 U.S.C. chapter 30.

(Authority: 38 U.S.C 3034(a), 3323(a), 3690)


    (l) Conflicting interests (not waived). If a conflict of interest 
exists between an officer or employee of VA and an institution of 
higher learning, or an officer or employee of a State approving agency 
and an institution of higher learning, as provided in Sec.  21.4005, 
and VA does not grant a waiver, the discontinuance date of educational 
assistance will be 30 days after the date of the letter notifying the 
eligible individual of the conflicting interests.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3683)


    (m) Incarceration in prison or other penal institution due to 
conviction of a felony.
    (1) The provisions of this paragraph apply to an eligible 
individual whose educational assistance must be discontinued or who 
becomes restricted to payment of educational assistance at a reduced 
rate under Sec.  21.9675(c) (based on incarceration in a Federal, 
State, local, or other penal institution or correctional facility due 
to a felony conviction).
    (2) The reduced rate or discontinuance will be effective the latest 
of the following--
    (i) The first day of the enrollment period for which all or part of 
the eligible individual's tuition and fees were paid by a Federal 
(other than one administered by VA), State, or local program;
    (ii) The first day of the enrollment period in which the eligible 
individual is incarcerated in a Federal, State, local, or other penal 
institution or correctional facility; or
    (iii) The beginning date of the award as determined by Sec.  
21.9625.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3482(g))


    (n) Reduction or termination due to active duty status. (1) The 
discontinuance date for an eligible individual who reduces or 
terminates training as a result of being called or ordered to serve on 
active duty under section 688, 12301(a), 12301(d), 12301(g), 12302, or 
12304 of title 10, U.S.C., or in the case of an individual serving on 
active duty, being ordered to a new duty location or assignment or to 
perform an increased amount of work is--

[[Page 14683]]

    (i) For established charges, the last date of the certified 
enrollment period,
    (ii) For the monthly housing allowance, the end of the month during 
which the reduction or withdrawal occurred, and
    (iii) For the ``book stipend'', the last date of the period covered 
by the book stipend payment.
    (2) This reduction does not apply to brief periods of active duty 
for training if the institution of higher learning permits absence for 
active duty for training without considering the individual's pursuit 
of a program of education to be interrupted.

(Authority: 38 U.S.C. 3313(e))


    (o) Exhaustion of entitlement. (1) If an individual enrolled in an 
institution of higher learning that regularly operates on the quarter 
or semester system exhausts his or her entitlement under 38 U.S.C. 
chapter 33, the effective discontinuance date will be the last day of 
the quarter or semester in which the entitlement is exhausted.
    (2) If an individual enrolled in an institution of higher learning 
that does not regularly operate on the quarter or semester system 
exhausts his or her entitlement under 38 U.S.C. chapter 33 after the 
individual has completed more than half of the course, the ending date 
will be the earlier of the following--
    (i) The last day of the course, or
    (ii) 12 weeks from the day the entitlement is exhausted.
    (3) If an individual enrolled in an institution of higher learning 
that does not regularly operate on the quarter or semester system 
exhausts his or her entitlement under 38 U.S.C. chapter 33 before the 
individual has completed more than half of the course, the effective 
ending date will be the date the entitlement was exhausted.

(Authority: 38 U.S.C. 3031(f), 3312, 3321)


    (p) End of period of eligibility. If an eligible individual is 
enrolled in an institution of higher learning on the date of expiration 
of his or her period of eligibility as determined under Sec.  21.9530, 
the effective ending date will be the day preceding the end of the 
period of eligibility.

(Authority: 38 U.S.C. 3321)


    (q) Required verifications not received after certification of 
enrollment. (1) If VA does not receive the required verification of 
attendance in a timely manner for an eligible individual enrolled in a 
course or courses at an institution of higher learning in a program of 
education not leading to a standard college degree, VA will terminate 
payments effective the last date of the last period for which 
verification of the eligible individual's attendance was received. If 
VA later receives the verification, VA will make any adjustment on the 
basis of the facts found.
    (2) If VA does not receive verification of enrollment within 60 
days of the first day of the term, quarter, semester, or course for 
which the advance payment was made, VA will determine the actual facts 
and make an adjustment, if required. If the eligible individual failed 
to enroll, VA will terminate the award of educational assistance 
effective the beginning date of the enrollment period.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680)


    (r) Administrative or payee error. (1) When an administrative error 
or error in judgment by VA, the Department of Defense, or the 
Department of Homeland Security with respect to the Coast Guard when it 
is not operating as a service in the Navy, is the sole cause of an 
erroneous award, the award will be reduced or terminated effective the 
date of last payment.
    (2) When a payee receives an erroneous award of educational 
assistance as the result of providing false information or withholding 
information necessary to determine eligibility to the award, the 
effective date of the reduction or discontinuance will be the effective 
date of the award, or the day before the act, whichever is later. The 
date of the reduction or discontinuance will not be before the last 
date on which the individual was entitled to payment of educational 
assistance.

(Authority: 38 U.S.C. 3323(c), 5112(b), 5113)


    (s) Forfeiture for fraud. If an eligible individual must forfeit 
his or her educational assistance due to fraud, the ending date of 
payment of educational assistance will be the later of--
    (1) The effective date of the award; or
    (2) The day before the date of the fraudulent act.

(Authority: 38 U.S.C. 3323(c), 5112, 6103)


    (t) Forfeiture for treasonable acts or subversive activities. If an 
eligible individual must forfeit his or her educational assistance due 
to treasonable acts or subversive activities, the ending date of 
payment of educational assistance will be the later of--
    (1) The effective date of the award; or
    (2) The day before the date the individual committed the 
treasonable act or subversive activities for which the individual was 
convicted.

(Authority: 38 U.S.C. 3323(c), 6104, 6105)


    (u) Change in law or VA issue or interpretation. If there is a 
change in the applicable law or VA issue, or in VA's application of the 
law or issue, VA will use the provisions of Sec.  3.114(b) of this 
chapter to determine the ending date of the eligible individual's 
educational assistance.

(Authority: 38 U.S.C. 3323(c), 5112, 5113)


    (v) Reduction following the loss of increase (``kicker'') for 
Selected Reserve service. If an eligible individual is entitled to an 
increase (``kicker'') in the monthly rate of educational assistance due 
to service in the Selected Reserve and loses that entitlement, the 
effective date for the reduction in the monthly rate payable is the 
date that the Secretary of the military department concerned determines 
that the eligible individual is no longer eligible to the increase 
(``kicker'').

(Authority: 10 U.S.C. 16131; 38 U.S.C. 3316(a))


    (w) Receipt of educational assistance allowance under another 
educational assistance program. An individual in receipt of educational 
assistance under this chapter who is also eligible for educational 
assistance under 10 U.S.C. chapter 106a, 1606, or 1607, or under 38 
U.S.C. chapter 30, 31, 32, or 35, or the Hostage Relief Act of 1980, 
may choose to receive educational assistance under another program. VA 
will terminate educational assistance under 38 U.S.C. chapter 33 
effective the first day of the enrollment period during which the 
individual requested to receive educational assistance under 10 U.S.C. 
chapter 106a, 1606, or 1607, or under 38 U.S.C. chapter 30, 31, 32, or 
35, or the Hostage Relief Act of 1980.

(Authority: 38 U.S.C. 3322(a))


    (x) Independent study course loses accreditation. If the eligible 
individual is enrolled in a course offered in whole or in part by 
independent study, and the course loses its accreditation (or the 
institution of higher learning offering the course loses its 
accreditation), the date of reduction or discontinuance will be the 
effective date of the withdrawal of accreditation by the accrediting 
agency.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3676, 3680A(a))


    (y) Dependent exhausts transferred entitlement. The ending date of 
an award of educational assistance to a dependent who exhausts the 
entitlement transferred to him or her is the date he or she exhausts 
the entitlement.

(Authority: 38 U.S.C. 3319)


    (z) Transferor revokes transfer of entitlement. If the transferor 
revokes a

[[Page 14684]]

transfer of unused entitlement, the date of discontinuance for the 
dependent's entitlement is the effective date of the revocation of 
transfer as determined under Sec.  21.9570.

(Authority: 38 U.S.C. 3319)


    (aa) Transferor fails to complete additional active duty service 
requirement. VA will discontinue each award of educational assistance 
given to a dependent, effective the first date of each such award 
when--
    (1) The transferor fails to complete the additional active duty 
service requirement that afforded him or her the opportunity to 
transfer entitlement of educational assistance; and
    (2) The military department discharges the transferor for a reason 
other than one of the reasons stated in Sec.  21.9570.

(Authority: 38 U.S.C. 3319)


    (bb) Other reasons for discontinuance. If an eligible individual's 
educational assistance must be discontinued for any reason other than 
those stated in paragraphs (a) through (aa) of this section, VA will 
determine the ending date of educational assistance based on the facts 
found.

(Authority: 38 U.S.C. 3323(c), 5112(a), 5113)

Sec.  21.9640   Rates of payment of educational assistance.

    VA will determine the amount of educational assistance payable 
under 38 U.S.C. chapter 33 as provided in this section.
    (a) Percentage of maximum amounts payable. Except as provided in 
paragraph (d) of this section, VA will apply the applicable percentage 
of the maximum amounts payable under this section for pursuit of an 
approved program of education, in accordance with the following table--

------------------------------------------------------------------------
                                                              Percentage
Aggregate length of creditable active duty service after 09/  of maximum
                           10/01                               amounts
                                                               payable
------------------------------------------------------------------------
At least 36 months \1\.....................................          100
At least 30 continuous days (Must be discharged due to               100
 service-connected disability).............................
At least 30 months, but less than 36 months \1\............           90
At least 24 months, but less than 30 months \1\............       80 \3\
At least 18 months, but less than 24 months \2\............       70 \3\
At least 12 months, but less than 18 months \2\............           60
At least 6 months, but less than 12 months \2\.............           50
At least 90 days, but less than 6 months \2\...............           40
------------------------------------------------------------------------
\1\ Includes entry level and skill training.
\2\ Excludes entry level and skill training.
\3\ If the service requirements are met at both the 80 and 70 percentage
  level, the maximum percentage of 70 must be applied to amounts
  payable.


(Authority: 38 U.S.C. 3311, 3313)


    (b) Maximum amounts payable for training at more than one-half 
time. An individual, other than one on active duty, who is pursuing a 
program of education at more than one-half time (at a rate of pursuit 
greater than 50 percent) and who--
    (1) Is enrolled at an institution of higher learning located in the 
United States, or at a branch of such institution that is located 
outside the United States, may receive--
    (i) A lump sum amount for established charges paid directly to the 
institution of higher learning for the entire quarter, semester, or 
term, as applicable. The amount payable will be the sum of the lower 
amount of tuition as determined in paragraph (b)(1)(i)(A) and the lower 
amount of fees as determined in paragraph (b)(1)(i)(B) of this section.
    (A) The amount of tuition payable is the lesser of--
    (1) The actual amount of tuition charged by the institution of 
higher learning; or
    (2) The maximum amount of tuition regularly charged per credit hour 
to full-time undergraduate in-State students by the public institution 
of higher learning having the highest rate of regularly-charged tuition 
per credit hour in the State in which the individual is enrolled or, if 
the individual is enrolled at a branch located outside the United 
States, in the State where the main campus of the institution of higher 
learning is located, multiplied by the number of credit hours in which 
the individual is enrolled.
    (B) The amount of fees payable is the lesser of--
    (1) The actual amount of fees charged by the institution of higher 
learning; or
    (2) The maximum amount of fees regularly charged full-time 
undergraduate in-State students in a term, quarter, or semester by the 
public institution of higher learning having the highest rate of 
regularly-charged fees in a term, quarter, or semester in the State in 
which the individual is enrolled or, if the individual is enrolled at a 
branch located outside the United States, in the State where the main 
campus of the institution of higher learning is located.
    (C) The lesser amount of paragraph (b)(1)(i )(A) or (B) of this 
section, divided by the number of days in the individual's quarter, 
semester, or term, as applicable, to determine the individual's daily 
rate which will then be multiplied by the individual's remaining months 
and days of entitlement to educational assistance in accordance with 
Sec.  21.4020 and Sec.  21.9635(o);
    (ii) Except for individuals pursuing a program of education offered 
entirely through distance learning, a monthly housing allowance. The 
monthly housing allowance will be equal to the monthly amount of the 
basic allowance for housing payable under 37 U.S.C. 403 for a member of 
the military with dependents in pay grade E-5 using the ZIP code area 
in which all, or a majority, of the primary institution of higher 
learning in which the individual is enrolled is located or, if the 
individual is only pursuing distance learning courses at the primary 
institution of higher learning, the ZIP code area in which all, or a 
majority of the institution of higher learning in which the individual 
is enrolled in one or more resident courses is located; and
    (iii) An amount for books, supplies, equipment, and other 
educational costs (referred to as the ``book stipend'') payable as a 
lump sum for each quarter, semester, or term. The maximum amount 
payable to an eligible individual with remaining entitlement is based 
on pursuit of twenty-four credit hours (the minimum number of credit 
hours generally considered to be full-time training at the 
undergraduate level for an academic year). An individual may receive an 
amount for each credit hour pursued up to twenty-four credit hours

[[Page 14685]]

(or the equivalent number of credit hours if enrollment is reported in 
clock hours) in a single academic year. The lump sum payment for each 
quarter, semester, or term is equal to--
    (A) $41.67 ($1,000 divided by 24 credit hours); multiplied by--
    (B) The number of credit hours (or the equivalent number of credit 
hours if enrollment is reported in clock hours) taken by the individual 
in the quarter, semester, or term, up to a cumulative total of twenty-
four credit hours for the academic year.
    (2) Is enrolled at an institution of higher learning not located in 
the United States, may receive--
    (i) A lump sum amount for established charges paid directly to the 
institution of higher learning for the entire quarter, semester, or 
term, as applicable. The amount payable will be the sum of the lower 
amount of tuition as determined in paragraph (b)(2)(i)(A) and the lower 
amount of fees as determined in paragraph (b)(2)(i)(B) of this section. 
Prior to comparing the amounts in paragraph ((b)(2)(i)(A) and in 
paragraph (b)(2)(i)(B) of this section, foreign currency must be 
converted into United States dollars using the foreign exchange 
conversion rate as published by the Federal Reserve effective on the 
first day of the month of July that precedes the beginning date of the 
individual's enrollment period.
    (A) The amount of tuition payable is the lesser of--
    (1) The actual amount of tuition charged by the institution of 
higher learning (converted into United States dollars); or
    (2) The average (i.e., unweighted arithmetic mean) amount of 
tuition per credit hour regularly charged full-time undergraduate in-
State students by public institutions of higher learning throughout the 
United States as published by VA for the relevant academic year.
    (B) The amount of fees payable is the lesser of--
    (1) The actual amount of fees charged by the institution of higher 
learning (converted into United States dollars); or
    (2) The average (i.e., unweighted arithmetic mean) amount of fees 
regularly charged full-time undergraduate in-State students per term, 
quarter, or semester by the public institutions of higher learning 
throughout the United States as published by VA for the relevant 
academic year.
    (C) The lesser amount of paragraph (b)(2)(i)(A) or (B) of this 
section, divided by the number of days in the individual's quarter, 
semester, or term, as applicable, to determine the individual's daily 
rate which will then be multiplied by the individual's remaining months 
and days of entitlement to educational assistance in accordance with 
Sec.  21.4020 and Sec.  21.9635(o);
    (ii) Except for individuals pursuing a program of education offered 
entirely through distance learning, a monthly housing allowance. The 
monthly housing allowance will be equal to the average (i.e., 
unweighted arithmetic mean) monthly amount of the basic allowance for 
housing payable under 37 U.S.C. 403 for a member of the military with 
dependents in pay grade E-5 residing in the United States; and
    (iii) An amount for books, supplies, equipment, and other 
educational costs (referred to as the ``book stipend'') payable as a 
lump sum for each quarter, semester, or term. The maximum amount 
payable to an eligible individual with remaining entitlement is based 
on pursuit of twenty-four credit hours (the minimum number of credit 
hours generally considered to be full-time training at the 
undergraduate level for an academic year). An individual may receive an 
amount for each credit hour pursued up to twenty-four credit hours (or 
the equivalent number of credit hours if enrollment is reported in 
clock hours) in a single academic year. The lump sum payment for each 
quarter, semester, or term is equal to--
    (A) $41.67 ($1,000 divided by 24 credit hours); multiplied by--
    (B) The number of credit hours (or the equivalent number of credit 
hours if enrollment is reported in clock hours) taken by the individual 
in the quarter, semester, or term, up to a cumulative total of twenty-
four credit hours for the academic year.
    (c) Maximum amounts payable for training at one-half time or less. 
An individual, other than one on active duty, who is pursuing a program 
of education at one-half time or less (at a rate of pursuit of 50 
percent or less) and who--
    (1) Is enrolled at an institution of higher learning located in the 
United States, or at a branch of such institution that is located 
outside the United States, may receive--
    (i) A lump sum amount for established charges paid directly to the 
institution of higher learning for the entire quarter, semester, or 
term, as applicable. The amount payable will be the sum of the lower 
amount of tuition as determined in paragraph (c)(1)(i)(A) and the lower 
amount of fees as determined in paragraph (c)(1)(i)(B) of this section.
    (A) The amount of tuition payable is the lesser of--
    (1) The actual amount of tuition charged by the institution of 
higher learning that similarly circumstanced nonveterans enrolled in 
the individual's program of education would be required to pay; or
    (2) The maximum amount of tuition regularly charged per credit hour 
to full-time undergraduate in-State students by the public institution 
of higher learning having the highest rate of regularly-charged tuition 
per credit hour in the State in which the individual is enrolled or, if 
the individual is enrolled at a branch located outside the United 
States, in the State where the main campus of the institution of higher 
learning is located, multiplied by the number of credit hours in which 
the individual is enrolled.
    (B) The amount of fees payable is the lesser of--
    (1) The actual amount of fees charged by the institution of higher 
learning that similarly circumstanced nonveterans enrolled in the 
individual's program of education would be required to pay; or
    (2) The maximum amount of fees regularly charged full-time 
undergraduate in-State students per term, quarter, or semester by the 
public institution of higher learning having the highest rate of 
regularly-charged fees per term, quarter or semester, in the State in 
which the individual is enrolled or, if the individual is enrolled at a 
branch located outside the United States, in the State where the main 
campus of the institution of higher learning is located.
    (C) The lesser amount of paragraph (c)(1)(i)(A) or (B) of this 
section, divided by the number of days in the individual's quarter, 
semester, or term, as applicable, to determine the individual's daily 
rate which will then be multiplied by the individual's remaining months 
and days of entitlement to educational assistance in accordance with 
Sec.  21.4020 and Sec.  21.9635(o);
    (ii) An amount for books, supplies, equipment, and other 
educational costs (referred to as the ``book stipend'') payable as a 
lump sum for the certified enrollment period. The maximum amount 
payable to an eligible individual with remaining entitlement is based 
on pursuit of twenty-four credit hours (the minimum number of credit 
hours generally considered to be full-time training at the 
undergraduate level for an academic year). An individual may receive an 
amount for each credit hour pursued up to twenty-four credit hours (or 
the equivalent number of credit hours if enrollment is reported in 
clock hours) in a single academic year. The

[[Page 14686]]

lump sum payment for each quarter, semester, or term is equal to--
    (A) $41.67 ($1,000 divided by 24 credit hours); multiplied by--
    (B) The number of credit hours (or the equivalent number of credit 
hours if enrollment is reported in clock hours) taken by the individual 
in the quarter, semester, or term; multiplied by--
    (C) The percentage equal to the individual's rate of pursuit as 
determined by dividing the number of credit hours the individual is 
pursuing by the number of credit hours required for full-time pursuit.
    (2) Is enrolled in an institution of higher learning not located in 
the United States, may receive--
    (i) A lump sum amount for established charges paid directly to the 
institution of higher learning for the entire quarter, semester, or 
term, as applicable. The amount payable will be the sum of the lower 
amount of tuition as determined in paragraph (c)(2)(i)(A) and the lower 
amount of fees as determined in paragraph (c)(2)(i)(B) of this section. 
Prior to comparing the amounts in paragraph (c)(2)(i)(A) and in 
paragraph (c)(2)(i)(B) of this section, foreign currency must be 
converted into United States dollars using the foreign exchange 
conversion rate as published by the Federal Reserve effective on the 
first day of the month of July that precedes the beginning date of the 
individual's enrollment period.
    (A) The amount of tuition payable is the lesser of--
    (1) The actual amount of tuition charged by the institution of 
higher learning (converted into United States dollars); or
    (2) The average (i.e., arithmetic mean) amount of tuition per 
credit hour regularly charged full-time undergraduate in-State students 
by public institutions of higher learning throughout the United States 
as published by VA for the relevant academic year.
    (B) The amount of fees payable is the lesser of--
    (1) The actual amount of fees charged by the institution of higher 
learning (converted into United States dollars); or
    (2) The average (i.e., arithmetic mean) amount of fees regularly 
charged full-time undergraduate in-State students per term, quarter, or 
semester by the public institutions of higher learning throughout the 
United States as published by VA for the relevant academic year.
    (C) The lesser amount of paragraph (c)(2)(i)(A) or (B) of this 
section, divided by the number of days in the individual's quarter, 
semester, or term, as applicable, to determine the individual's daily 
rate which will then be multiplied by the individual's remaining months 
and days of entitlement to educational assistance in accordance with 
Sec.  21.4020 and Sec.  21.9635(o);
    (ii) An amount for books, supplies, equipment, and other 
educational costs (referred to as the ``book stipend'') payable as a 
lump sum for the certified enrollment period. The maximum amount 
payable to an eligible individual with remaining entitlement is based 
on pursuit of twenty-four credit hours (the minimum number of credit 
hours generally considered to be full-time training at the 
undergraduate level for an academic year). An individual may receive an 
amount for each credit hour pursued up to twenty-four credit hours (or 
the equivalent number of credit hours if the individual's enrollment is 
reported in clock hours) in a single academic year. The lump sum 
payment for each quarter, semester, or term is equal to--
    (A) $41.67 ($1,000 divided by 24); multiplied by
    (B) The number of credit hours (or the equivalent number of credit 
hours if the individual's enrollment is reported in clock hours) taken 
by the individual in the quarter, semester, or term, up to a cumulative 
total of twenty-four credit hours for the academic year; multiplied 
by--
    (C) The percentage equal to the individual's rate of pursuit as 
determined by dividing the number of credit hours the individual is 
pursuing by the number of credit hours required for full-time pursuit.
    (d) Amounts payable for individuals on active duty. Individuals on 
active duty who are pursuing a program of education may receive a lump 
sum amount for established charges paid directly to the institution of 
higher learning for the entire quarter, semester, or term, as 
applicable. The amount payable will be the lowest of--
    (1) The established charges that similarly circumstanced 
nonveterans enrolled in the individual's program of education would be 
required to pay;
    (2) That portion of the established charges not covered by military 
tuition assistance under 10 U.S.C. 2007(a) or (b) for which the 
individual has stated to VA that he or she wishes to receive payment.
    (3) The lesser amount of paragraph (d)(1) or (2) of this section, 
divided by the number of days in the individual's quarter, semester, or 
term, as applicable, to determine the individual's daily rate which 
will then be multiplied by the individual's remaining months and days 
of entitlement to educational assistance in accordance with Sec.  
21.4020 and Sec.  21.9635(o);
    (e) Publication of educational assistance rates. VA will publish 
the maximum amounts of tuition and fees payable for the upcoming 
academic year in the ``Notices'' section of the Federal Register and on 
the GI Bill Web site at http:/www.gibill.va.gov by the first of August 
of each calendar year. The maximum amounts payable, as published, will 
be effective for each term, quarter, or semester that begins during the 
academic year.

(Authority: 38 U.S.C. 3313, 3323(c))

Sec.  21.9645  Refund of basic contribution to chapter 30.

    (a)(1) An individual who makes an irrevocable election to receive 
educational assistance under this chapter by relinquishing eligibility 
under chapter 30 will be entitled to receive a refund of the amount 
contributions paid under 38 U.S.C. 3011(b) or 3012(c), up to $1,200, if 
the individual, as of the date of the individual's election, meets the 
requirements for entitlement to educational assistance under this 
chapter and meets one of the following requirements as of August 1, 
2009--
    (i) He or she is eligible for basic educational assistance under 38 
U.S.C. chapter 30 and has remaining entitlement under that chapter;
    (ii) He or she is eligible for basic educational assistance under 
38 U.S.C. chapter 30 but has not used any entitlement under that 
chapter; or
    (iii) He or she is a member of the Armed Forces who is eligible to 
receive educational assistance under 38 U.S.C. chapter 30 because he or 
she has met the requirements of Sec.  21.7042(a) or (b) and is making 
contributions as provided in Sec.  21.7042(g).
    (2) Individuals are not entitled to a refund of any portion of 
additional contributions, of up to $600, paid towards educational 
assistance under 38 U.S.C. chapter 30 in accordance with the provisions 
of Sec.  21.7136(h).
    (b) Amount of refund. The amount of any payment made under this 
section to the individual who made the contributions will be equal to 
the total amount of contributions toward basic educational assistance 
made by the individual as provided in Sec.  21.7042(g) multiplied by 
the fraction with--
    (1) A numerator equal to--
    (i) The number of months of entitlement under 38 U.S.C. chapter 30 
remaining to the individual at the time of the election and the number 
of months, if any, of transferred

[[Page 14687]]

entitlement under 38 U.S.C. chapter 30 that the individual revoked; or
    (ii) 36 for individuals making contributions in accordance with 
Sec.  21.9645(a)(iii); and
    (2) A denominator equal to 36.
    (c) Timing of Payment. The amount payable under this section will 
only be paid to the individual who made the contributions as an 
increase to the monthly housing allowance payable under Sec.  
21.9640(b)(1)(ii) or (b)(2)(ii) at the time his or her entitlement 
exhausts.

(Authority: Pub. L. 110-252, Stat. 2377-2378)

Sec.  21.9650  Increase in educational assistance.

    The Secretary of the military department concerned may increase the 
amount of basic educational assistance payable to an individual who has 
a skill or specialty in which there is a critical shortage of 
personnel, for which there is difficulty recruiting, or, in the case of 
critical units, for which there is difficulty retaining personnel, as 
determined by the Secretary of the military department concerned.
    (a) Chapter 33 increase (``kicker'') amount. (1) The amount of the 
increase is set by the Secretary of the military department concerned, 
but the amount of any such increase may not exceed--
    (i) $50.00 per month for full-time training; or
    (ii) A percentage of the full-time training amount under paragraph 
(a)(i) of this section based on the individual's rate of pursuit of 
training.
    (2) The increase (``kicker'') amount payable under paragraph (a) of 
this section will only be paid to the individual as part of the monthly 
housing allowance if the individual is entitled to receive a monthly 
housing allowance under Sec.  21.9640(b)(1)(ii) or (b)(2)(ii) for that 
term, quarter, or semester.

(Authority: 38 U.S.C. 3015(d)(1), 3313(c), 3316(a))


    (b) Chapter 30 increase (``kicker'') amount. (1) If an individual 
is eligible for educational assistance under 38 U.S.C. chapter 33 by 
reason of an irrevocable election to relinquish eligibility under 38 
U.S.C. chapter 30 in accordance with the provisions of Sec.  21.9520(c) 
and, on the date of such election, the individual is also entitled to 
an increase (``kicker'') of the amount of educational assistance under 
38 U.S.C. 3015(d), the individual remains entitled to that increase 
under 38 U.S.C. chapter 33.
    (2) The increase (``kicker'') amount is set by the Secretary of the 
military department concerned, but the amount of any such increase may 
not exceed--
    (i) $50.00 per month for full-time training; or
    (ii) A percentage of the full-time training amount under paragraph 
(b)(2)(i) of this section based on the individual's rate of pursuit of 
training.
    (3) The increase (``kicker'') amount payable under paragraph (b) of 
this section will be paid to the individual as a lump sum in an amount 
for the entire quarter, semester, or term, as applicable, based on the 
monthly amount to which the individual was entitled at the time of the 
election of chapter 33.

(Authority: 38 U.S.C. 3015(d); Pub. L. 110-252, Stat. 2378)


    (c) Chapter 1606 increase (``kicker'') amount. (1) If an individual 
is eligible for educational assistance under 38 U.S.C. chapter 33 by 
reason of an irrevocable election to relinquish eligibility under 10 
U.S.C. chapter 1606 in accordance with the provisions of Sec.  
21.9520(c) and, on the date of such election, the individual is also 
entitled to an increase (``kicker'') of the amount of educational 
assistance under 10 U.S.C. 16131(i), the individual remains entitled to 
that increase (``kicker'') under 38 U.S.C. chapter 33.
    (2) The increase (``kicker'') amount is set by the Secretary of the 
military department concerned, but the amount of any such increase may 
not exceed--
    (i) $350.00 per month for full-time training; or
    (ii) A percentage of the full-time training amount under paragraph 
(c)(2)(i) of this section based on the individual's rate of pursuit of 
training.
    (3) The increase (``kicker'') amount payable under paragraph (c) of 
this section will be paid to the individual as a lump sum in an amount 
for the entire quarter, semester, or term, as applicable, based on the 
monthly amount to which the individual was entitled at the time of the 
election of chapter 33.

(Authority: 10 U.S.C. 16131(i); Pub. L. 110-252, Stat 2378)

Sec.  21.9655  Rates of supplemental educational assistance.

    In addition to basic educational assistance, an individual who is 
eligible for supplemental educational assistance and entitled to it 
will be paid supplemental educational assistance at the rate described 
in this section unless a lesser rate is required by Sec.  21.9675.
    (a) Individuals eligible for supplemental educational assistance 
under chapter 33. (1) The monthly amount of supplemental educational 
assistance payable to an individual whose initial eligibility for 
educational assistance is acquired under 38 U.S.C. chapter 33 is set by 
the Secretary of the military department concerned, but may not exceed 
$300 per month for full-time training. Individuals pursuing training at 
less than full-time will receive a percentage of the amount set by the 
Secretary of the military department concerned based on the 
individual's rate of pursuit of training.
    (2) The increase payable under paragraph (a) of this section will 
only be paid to the individual as part of the monthly housing allowance 
if the individual is entitled to receive a monthly housing allowance 
under Sec.  21.9640(b)(1)(ii) or (b)(2)(ii) for that term, quarter, or 
semester.

(Authority: 38 U.S.C. 3316)


    (b) Individuals who were eligible for supplemental educational 
assistance under 38 U.S.C. chapter 30. (1) An individual who is 
eligible for educational assistance under 38 U.S.C. chapter 33 by 
reason of an irrevocable election under Sec.  21.9520(c) and was 
entitled to supplemental educational assistance under subchapter III of 
38 U.S.C. chapter 30 remains entitled to such additional amount under 
chapter 33.
    (2) The amount of the increase is set by the Secretary of the 
military department concerned, but may not exceed $300 per month for 
full-time training. Individuals pursuing training at less than full-
time will receive a percentage of the amount set by the Secretary of 
the military department concerned based on the individual's rate of 
pursuit of training.
    (3) The supplemental increase amount payable under paragraph (b) of 
this section will be paid to the individual as a lump sum in an amount 
for the entire quarter, semester, or term, as applicable, based on the 
monthly amount to which the individual was entitled at the time of the 
election of chapter 33.

(Authority: 38 U.S.C. 3021; Pub. L. 110-252, 122 Stat. 2378)

Sec.  21.9660  Rural relocation benefit.

    An individual eligible for educational assistance under this 
chapter is entitled to receive a one-time payment of $500 if the 
individual--
    (a) Resides in a county (or similar entity utilized by the Bureau 
of the Census) with less than 7 persons per square mile (as determined 
by the most recent decennial Census); and
    (b) Either--
    (1) Physically relocates at least 500 miles in order to pursue a 
program of education for which the individual receives educational 
assistance under this chapter; or
    (2) Travels by air to physically attend an institution of higher 
learning for

[[Page 14688]]

pursuit of an approved program of education under this chapter if no 
other land-based method of transportation is available due to an 
absence of roads or other infrastructure; and
    (3) Has provided documentation required in Sec.  21.9680(c).

(Authority: 38 U.S.C. 3318)

Sec.  21.9665  Reimbursement for licensing or certification tests.

    An eligible individual is entitled to receive reimbursement for 
taking one licensing or certification test. The amount of educational 
assistance VA will pay as reimbursement for an approved licensing or 
certification test taken on or after August 1, 2009, is the lesser of 
the following:
    (a) The fee that the licensing or certification organization 
offering the test charges for taking the test; or
    (b) $2,000.

(Authority: 38 U.S.C. 3315)

Sec.  21.9670  Work-study allowance.

    An eligible individual pursuing a program of education under 38 
U.S.C. chapter 33 at a rate of pursuit of at least 75 percent may 
receive a work-study allowance in accordance with the provisions of 
Sec.  21.4145.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3485)

Sec.  21.9675  Conditions that result in reduced rates or no payment.

    The payment rates as established in Sec. Sec.  21.9640 and 21.9655 
will be reduced in accordance with this section whenever the 
circumstances described in this section arise.
    (a) Withdrawals and nonpunitive grades. Except as provided in this 
paragraph, VA will not pay educational assistance for an eligible 
individual's pursuit of a course from which the eligible individual 
withdraws or receives a nonpunitive grade that is not used in computing 
the requirements for graduation. VA may pay educational assistance for 
a course from which the eligible individual withdraws or receives a 
nonpunitive grade if--
    (1) The individual withdraws because he or she is ordered to 
active-duty service or, in the case of an individual serving on active 
duty, he or she is ordered to a new duty location or assignment, or 
ordered to perform an increased amount of work; or
    (2) There are mitigating circumstances, and
    (i) The eligible individual submits a description of the mitigating 
circumstances in writing to VA within one year from the date VA 
notifies the eligible individual that a description is needed, or at a 
later date if the eligible individual is able to show good cause why 
the one-year time limit should be extended to the date on which he or 
she submitted the description of the mitigating circumstances; and
    (ii) The eligible individual submits evidence supporting the 
existence of mitigating circumstances within one year of the date VA 
requested the evidence, or at a later date if the eligible individual 
is able to show good cause why the one-year time limit should be 
extended to the date on which he or she submitted the evidence 
supporting the existence of mitigating circumstances.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    (b) No educational assistance for some incarcerated individuals. VA 
will not pay educational assistance to an eligible individual who is 
incarcerated in a Federal, State, local, or other penal institution or 
correctional facility due to a felony conviction and has incurred no 
expenses for books, supplies, or equipment if--
    (1) The individual is enrolled in a course for which there is no 
tuition and fees;
    (2) The individual is enrolled in a course and the tuition and fees 
for the course are being paid in full by a Federal (other than one 
administered by VA), State, or local program.
    (c) Reduced educational assistance for some incarcerated 
individuals. (1) VA will reduce the amount of educational assistance 
paid to an eligible individual who is incarcerated in a Federal, State, 
local, or other penal institution or correctional facility due to a 
felony conviction if--
    (i) The individual is enrolled in a course for which the tuition 
and fees are paid entirely by a Federal (other than one administered by 
VA), State, or local program, but the individual is required to 
purchase books, supplies, or equipment for the course; or
    (ii) The individual is enrolled in a course for which the tuition 
and fees are paid partially by a Federal (other than one administered 
by VA), State, or local program, whether or not the individual is 
required to purchase books, supplies, or equipment for the course.
    (2) The amount of educational assistance payable for pursuit of an 
approved program of education by an eligible individual, as described 
in this paragraph, will be the lesser of the following--
    (i) The amount equal to any portion of tuition and fees charged for 
the course that are not paid by a Federal (other than one administered 
by VA), State, or local program plus an amount equal to any charges to 
the eligible individual for the cost of necessary books, supplies, and 
equipment; or
    (ii) The amount of tuition and fees otherwise payable to the 
individual based on the individual's length of creditable service as 
determined in Sec.  21.9640(a) and the individual's rate of pursuit, 
plus an amount equal to any charges to the eligible individual for the 
cost of necessary books, supplies, and equipment.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3482(g))


    (d) No educational assistance for certain enrollments. VA will not 
pay educational assistance for--
    (1) An enrollment in an audited course (See Sec.  21.4252(i));
    (2) A new enrollment in a course during a period when the approval 
has been suspended by a State approving agency or VA;
    (3) An enrollment in a course by a nonmatriculated student except 
as provided in Sec.  21.4252(l);
    (4) An enrollment in a course certified to VA by the individual 
taking the course;
    (5) A new enrollment in a course which does not meet the veteran-
nonveteran ratio requirement as computed under Sec.  21.4201; and
    (6) An enrollment in a course offered under contract for which VA 
approval is prohibited by Sec.  21.4252(m).

(Authority: 38 U.S.C. 501(a), 3034(a), 3323(a))

Sec.  21.9680  Certifications and release of payments.

    (a) Payee. (1) VA will make payment of the appropriate amount of 
established charges (including top-up payments), as determined under 
Sec.  21.9640, directly to the institution of higher learning as a lump 
sum payment for the entire quarter, semester, or term, as applicable.
    (2) VA will make all other payments to the eligible individual or a 
duly appointed fiduciary. VA will make direct payment to the eligible 
individual even if he or she is a minor.
    (3) The assignment of educational assistance is prohibited. In 
administering this provision, VA will apply the provisions of Sec.  
21.4146 to 38 U.S.C. chapter 33.

(Authority: 38 U.S.C. 3034(a), 3313(g), 3323(a), 3680, 5301)


    (b) Payments.
    (1) VA will pay educational assistance for an eligible individual's 
enrollment in an approved program (other than one seeking tuition 
assistance top-up, one seeking reimbursement for taking an approved 
licensing or certification test, or one who qualifies for an advance 
payment of the monthly housing

[[Page 14689]]

allowance) only after the educational institution has certified the 
individual's enrollment as provided in Sec.  21.9720.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(g), 3689)



(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-0073)

    (2) Advance payments. VA will apply the provisions of this section 
in making advance payments of the monthly housing allowance to eligible 
individuals.
    (i) VA will make payments of the monthly housing allowance in 
advance when:
    (A) The eligible individual has specifically requested such a 
payment;
    (B) The individual is enrolled at a rate of pursuit greater than 
half-time;
    (C) The institution of higher learning at which the eligible 
individual is accepted or enrolled has agreed to and can satisfactorily 
carry out the provisions of 38 U.S.C. 3680(d)(4)(B), (d)(4)(C), and 
(d)(5) pertaining to receipt, delivery, and return of checks, and 
certifications of delivery and enrollment;
    (D) The Director of the VA Regional Processing Office of 
jurisdiction has not acted under paragraph (b)(2)(iv) of this section 
to prevent advance payments being made to the eligible individual's 
institution of higher learning;
    (E) There is no evidence in the eligible individual's claim file 
showing that he or she is not eligible for an advance payment;
    (F) The period for which the eligible individual has requested a 
payment either--
    (1) Is preceded by an interval of nonpayment of 30 days or more; or
    (2) Is the beginning of a school year that is preceded by a period 
of nonpayment of 30 days or more; and
    (G) The institution of higher learning or the eligible individual 
has submitted the certification required by Sec.  21.9715.
    (ii) The amount of the advance payment to an eligible individual is 
the amount payable for the monthly housing allowance for the month or 
fraction thereof in which the term or course will begin plus the amount 
of the monthly housing allowance for the following month.
    (iii) VA will mail advance payments to the institution of higher 
learning for delivery to the eligible individual. The institution of 
higher learning will not deliver the advance payment check more than 30 
days in advance of the first date of the enrollment period for which VA 
makes the advance payment.
    (iv) The Director of the VA Regional Processing Office of 
jurisdiction may direct that advance payments not be made to 
individuals attending an institution of higher learning if:
    (A) The institution of higher learning demonstrates an inability to 
comply with the requirements of paragraph (b)(2)(iii) of this section;
    (B) The institution of higher learning fails to provide adequately 
for the safekeeping of the advance payment checks before delivery to 
the eligible individual or return to VA; or
    (C) The Director determines, based on compelling evidence, that the 
institution of higher learning has demonstrated its inability to 
discharge its responsibilities under the advance payment program.

(Authority: 38 U.S.C. 3034, 3323, 3680)


    (3) Lump sum payments. VA will make a lump sum payment for the 
entire quarter, semester, or term:
    (i) To an institution of higher learning, on behalf of an eligible 
individual, for the appropriate amount of established charges;
    (ii) To an eligible individual for the appropriate amount for 
books, supplies, equipment, and other educational costs; and
    (iii) To an eligible individual entitled to the $500 rural 
relocation benefit.

(Authority: 38 U.S.C. 3034(a), 3313, 3318, 3323(a), 3680(f))


    (4) VA will pay educational assistance for tuition assistance top-
up only after the individual has submitted to VA a copy of the form(s) 
that the military service with jurisdiction requires for tuition 
assistance and that had been presented to the educational institution, 
covering the course or courses for which the eligible individual wants 
tuition assistance top-up. If the form(s) submitted do not contain the 
amount of tuition assistance charged to the individual, VA may delay 
payment until VA obtains that information from the educational 
institution. Examples of these forms include:
    (i) DA Form 2171, Request for Tuition Assistance--Army Continuing 
Education System;
    (ii) AF Form 1227, Authority for Tuition Assistance--Education 
Services Program;
    (iii) NAVMC 10883, Application for Tuition Assistance, and either 
NAVEDTRA 1560/5, Tuition Assistance Authorization, or NAVMC (page 2), 
Tuition Assistance Authorization;
    (iv) Department of Homeland Security, USCG CG-4147, Application for 
Off-Duty Assistance; and
    (v) Request for Top-Up: eArmyU Program.

(Authority: 38 U.S.C. 5101(a))



(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-0698)

    (5) VA will pay educational assistance to an eligible individual as 
reimbursement for taking an approved licensing or certification test 
only after the eligible individual has submitted to VA a copy of his or 
her official test results and, if not included in the results, a copy 
of another official form (such as a receipt or registration form) that 
together must include:
    (i) The name of the test;
    (ii) The name and address of the organization or entity issuing the 
license or certificate;
    (iii) The date the eligible individual took the test; and
    (iv) The cost of the test.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3689)



(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-0695)

    (6) Payment for intervals and temporary school closings. VA may 
authorize payment of the monthly housing allowance (as increased under 
Sec. Sec.  21.9650(a) and 21.9655(a), if applicable) for an interval or 
for a temporary school closing that occurs within a certified 
enrollment period. If a school closing that is or may be temporary 
occurs during an interval, VA will apply any applicable provisions in 
paragraphs (b)(5)(i) through (b)(5)(v) of this section concerning 
intervals and in paragraph (5)(vi) of this section concerning temporary 
school closings. For the purposes of this paragraph, interval means a 
period without instruction between consecutive school terms, quarters, 
or semesters or a period without instruction between a summer term and 
a term, quarter, or semester. (See definitions of divisions of the 
school year in Sec.  21.4200(b).)
    (i) Payment for intervals. In determining whether a student will be 
paid for an interval, VA will first review the provisions of paragraph 
(b)(5)(ii) of this section. If none of the provisions apply, VA will 
review the provisions of paragraphs (b)(5)(iii), (iv), and (v) of this 
section to determine if payments may be made for the interval. In 
determining the length of a summer term, VA will disregard a fraction 
of a week consisting of 3 days or less, and will consider 4 days or 
more to be a full week.
    (ii) Restrictions on payment for intervals. VA will make no payment 
for an interval if--

[[Page 14690]]

    (A) The individual's rate of pursuit is one-half time or less on 
the last day of the certified enrollment period preceding the interval;
    (B) The individual is on active duty;
    (C) The individual requests, prior to authorization of an award or 
prior to negotiating a check or receiving a direct deposit for 
educational assistance, that no benefits be paid for the interval 
period;
    (D) The individual's entitlement applicable to such payment will be 
exhausted by receipt of such payment, and it is to the advantage of the 
individual not to receive payment;
    (E) The interval occurs between school years at a school that is 
not organized on a term, quarter, or semester basis; or
    (F) The individual withdraws from all courses in the term, quarter, 
semester, or summer session preceding the interval, or discontinues 
training before the scheduled start of an interval in an institution of 
higher learning not organized on a term, quarter, or semester basis.
    (iii) Payment for intervals between periods of enrollment at 
different schools. If the individual transfers from one approved school 
for the purpose of enrolling in and pursuing a similar program of 
education at the second school, VA may make payments for an interval 
that does not exceed 30 days. If the student does not enroll in a 
similar program of education at the second school, VA may not make 
payments for the interval.
    (iv) Payment for intervals that occur at the same school. (A) If 
the individual remains enrolled at the same school, VA may make payment 
for an interval which does not exceed 8 weeks and which occurs between:
    (1) Semesters or quarters,
    (2) A semester or quarter and a term that is at least as long as 
the interval,
    (3) A semester or quarter and a summer term that is at least as 
long as the interval,
    (4) Consecutive terms (other than semesters or quarters) provided 
that both terms are at least as long as the interval, or
    (5) A term and summer term provided that both the term and the 
summer term are at least as long as the interval.
    (B) If the individual remains enrolled at the same school, VA may 
make payment for an interval that does not exceed 30 days and that 
occurs between summer sessions within a summer term.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680)


    (v) Payment for intervals that occur between overlapping 
enrollments. (A) If a student is enrolled in overlapping enrollment 
periods whether before or after an interval (either at the same or 
different schools), VA will determine whether the student is entitled 
to payment for the interval between the overlapping enrollment periods, 
and which dates the interval and enrollment periods will be considered 
to begin and end, as follows:
    (1) By treating the ending date of each enrollment period as though 
it were the individual's last date of training before the interval,
    (2) By treating the beginning date of each enrollment period as 
though it were the individual's first date of training after the 
interval,
    (3) By examining the interval payment that would be made to the 
individual on the basis of the various combinations of beginning and 
ending dates, and
    (4) By choosing the ending date and beginning date that result in 
the highest payment rate as the start and finish of the interval for VA 
measurement purposes.
    (B) VA will not reduce the interval rate of payment as a result of 
training the individual may take during the interval, but VA will 
increase the interval rate of payment if warranted by such training.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    (vi) Payment for temporary school closings. VA may authorize 
payment for temporary school closings that are due to emergencies 
(including strikes) or established policy based upon an Executive Order 
of the President. If a school closing that is or may be temporary 
occurs in whole or in part during an interval, VA will first review the 
provisions of paragraph (b)(5)(ii) through (v) of this section to 
determine if payment may be continued during the interval.
    (A) If payment would not be inconsistent with the provisions of 
paragraph (b)(5)(ii) through (v) of this section, a determination to 
authorize payment for a period of a temporary school closing, or to not 
authorize payment if it appears that either the school closing will not 
be temporary or payment would not otherwise be in accord with this 
section, or both, will be made by:
    (1) The Director of the VA Regional Processing Office of 
jurisdiction if:
    (i) The reason for the school closing does not result in the 
closing of a school or schools in the jurisdiction of the Director of 
another VA Regional Processing Office, and
    (ii) If the reason for the closing is a strike, and the strike 
lasts, or is anticipated to last, 30 days or less.
    (2) The Director of Education Service if:
    (i) The reason for the school closing results in the closing of 
schools in the jurisdiction of more than one Director of a VA Regional 
Processing Office, or
    (ii) The reason for the closing is a strike, and the strike lasts, 
or is anticipated to last, more than 30 days.
    (B) A school that disagrees with a decision made under paragraph 
(b)(5)(vi) of this section may request an administrative review. The 
review request must be submitted in writing and received by the 
Director of the VA Regional Processing Office of jurisdiction within 
one year of the date of VA's letter notifying the school of the 
decision. A review of the decision will include the evidence of record 
and any other pertinent evidence the school may wish to submit. The 
affirmation or reversal of the initial decision based on an 
administrative review is final. The review will be conducted by the--
    (1) Director, Education Service, if the Director of the VA Regional 
Processing Office of jurisdiction made the initial decision to continue 
or discontinue payments; or
    (2) Under Secretary for Benefits, if the Director, Education 
Service, made the initial decision to continue or discontinue payments.

(Authority: 38 U.S.C. 512, 3034(a), 3323(a), 3680(a))


    (c) Rural relocation benefit. VA will make the $500 rural 
relocation benefit payment after--
    (1) The educational institution has certified the individual's 
enrollment as provided in Sec.  21.9680;
    (2) The individual has provided--
    (i) Request for benefit. An individual must submit a request for 
the rural relocation benefit in writing;
    (ii) Proof of residence. (A) An individual must provide proof of 
his or her place of residence by submitting any of the following 
documents bearing his or her name and current address:
    (1) DD Form 214, Certification of Release or Discharge from Active 
Duty; or
    (2) The most recent Federal income tax return; or
    (3) The most recent State income tax return; or
    (4) Rental/lease agreement; or
    (5) Mortgage document; or
    (6) Current real property assessment; or
    (7) Voter registration card.
    (B) An individual using entitlement granted under Sec.  21.9570 
who, because he or she resides with the transferor or, in the case of a 
child, a parent, cannot provide any of the documents in

[[Page 14691]]

paragraph (c)(2)(ii) of this section, may submit any document in 
paragraphs (c)(2)(ii)(A)(2) through (7) of this section bearing the 
name and current address of the transferor or, in the case of a child, 
a parent as proof of residence; and
    (iii) Proof of relocation. An individual traveling by air must 
provide an airline receipt for travel with a departure and destination 
airport within reasonable distance from the home of residence and the 
institution of higher learning, respectively; and
    (3) VA has determined that the individual resided in a county (or 
similar entity utilized by the Bureau of the Census) with less than 
seven persons per square mile based on the most recent decennial census 
prior to relocation, and either:
    (i) If traveling by land, physically relocated at least 500 miles, 
confirmed by means of a commonly available internet search engine for 
mapping upon entering the individual's resident address provided in 
paragraph (c)(2) as the beginning point and the address of the 
institution of higher learning as the ending point; or
    (ii) If traveling by air, was unable to travel to the institution 
of higher learning by land due to the absence of road or other 
infrastructure.

(Authority: 38 U.S.C. 3318)


    (d) Apportionments prohibited. VA will not apportion educational 
assistance.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680)


    (e) Accrued benefits. Educational assistance remaining due and 
unpaid on the date of the individual's death is payable under the 
provisions of Sec.  3.1000 of this chapter.

(Authority: 38 U.S.C. 5121)

Sec.  21.9685   Tutorial Assistance.

    (a) An individual who is eligible to receive benefits under 38 
U.S.C. chapter 33 may receive additional monetary assistance for 
tutorial services. VA will pay the individual this assistance if the 
tutorial assistance is necessary for the eligible individual to 
complete his or her program of education successfully, and the 
individual--
    (1) Is enrolled in and pursuing a postsecondary program of 
education at a rate of pursuit of at least 50 percent at an institution 
of higher learning; and
    (2) The professor or other person teaching, leading, or giving the 
course certifies that--
    (i) Tutorial assistance is essential to correct a deficiency of the 
individual in such course; and
    (ii) The course is required as part of, or is prerequisite or 
indispensable to the satisfactory pursuit of, an approved program of 
education.
    (b) Limits on tutorial assistance. (1) VA will authorize the cost 
of tutorial assistance in an amount not to exceed $100 per month.
    (2) The total amount of all tutorial assistance provided under this 
section will not exceed $1,200.

(Authority: 38 U.S.C. 3034(a), 3314, 3323(a), 3492)



(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-0171)


Sec.  21.9690   Nonduplication of educational assistance.

    (a) Except for receipt of a Montgomery GI Bill-Active Duty kicker 
provided under 38 U.S.C. 3015(d) or a Montgomery GI Bill-Selected 
Reserve kicker provided under 10 U.S.C. 16131(i), an eligible 
individual is barred from receiving educational assistance under 38 
U.S.C. chapter 33 concurrently with educational assistance provided 
under--
    (1) 10 U.S.C. 1606 (Montgomery GI Bill--Selected Reserve);
    (2) 10 U.S.C. 1607 (Reserve Educational Assistance Program);
    (3) 10 U.S.C. 106a (Section 901, Educational Assistance Test 
Program);
    (4) 38 U.S.C. 30 (Montgomery GI Bill--Active Duty);
    (5) 38 U.S.C. 31 (Vocational Rehabilitation and Employment 
Program);
    (6) 38 U.S.C. 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (7) 38 U.S.C. 35 (Survivors' and Dependents' Educational 
Assistance); or
    (8) Hostage Relief Act of 1980.

(Authority: 38 U.S.C. 3034(a), 3322, 3323(a), 3681; section 901, 
Pub. L. 96-342)


    (b) An individual who is eligible for educational assistance under 
more than one program listed in paragraph (a) of this section must 
specify in writing which benefit he or she wishes to receive. The 
eligible individual may choose to receive payment under another 
educational assistance program at any time, but may not change which 
benefit he or she will receive more than once during a term, quarter, 
or semester.

(Authority: 38 U.S.C. 3034(a), 3322, 3323(a), 3681)


    (c) Nonduplication--Federal program. Payment of educational 
assistance is prohibited to an otherwise eligible reservist--
    (1) For a unit course or courses that are being paid for entirely 
or partly by the Armed Forces during any period in which he or she is 
on active duty service; or
    (2) For a unit course or courses that are being paid for entirely 
or partly by the United States under the Government Employees' Training 
Act.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3681)

Sec.  21.9695  Overpayments.

    (a) Prevention of overpayments. In administering educational 
assistance payable under 38 U.S.C. chapter 33, VA will apply the 
provisions of Sec. Sec.  21.4008 and 21.4009 to eligible individuals 
and, when appropriate, to institutions of higher learning.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690(b))


    (b) Liability for overpayments. (1) An overpayment of educational 
assistance paid to an eligible individual constitutes a liability of 
that individual unless--
    (i) The overpayment was waived as provided in Sec. Sec.  1.957 and 
1.962 of this chapter, or
    (ii) The overpayment results from an administrative error or an 
error in judgment. See Sec.  21.9635(r).
    (2) An overpayment of educational assistance paid to the 
institution of higher learning on behalf of an eligible individual 
constitutes a liability of the individual unless the individual never 
attended the term, quarter, or semester certified by the institution of 
higher learning. If the individual never attended the term, quarter, or 
semester certified by the institution of higher learning, the 
institution must return to VA all educational assistance received under 
the provisions of 38 U.S.C. chapter 33 on behalf of the individual for 
such term, quarter, or semester.
    (3) The amount of the overpayment of educational assistance paid to 
the eligible individual, or paid to the institution of higher learning 
on behalf of the eligible individual, constitutes a liability of the 
institution of higher learning if VA determines that the overpayment is 
the result of willful or negligent--
    (i) False certification by the institution of higher learning; or
    (ii) Failure to certify excessive absences from a course, 
discontinuance of a course, or interruption of a course by the eligible 
individual.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3685)


    (iii) In determining whether an overpayment resulting from the 
actions listed in paragraphs (b)(3)(i) and (ii) of this section should 
be recovered from an institution of higher learning, VA will apply the 
provisions of Sec.  21.4009 (except paragraph (a)(1)) to overpayments 
of educational assistance under 38 U.S.C. chapter 33.
    (4) VA will determine the amount of an overpayment as follows--

[[Page 14692]]

    (i) For an individual who does not complete one or more courses in 
the certified period of enrollment for which he or she received 
payment, and who does not substantiate mitigating circumstances for not 
completing such course or courses, VA will establish an overpayment 
equal to the amount of educational assistance paid for the course or 
courses not completed during that certified period of enrollment.
    (ii) For an individual who does not complete one or more courses in 
the certified period of enrollment, but who substantiates mitigating 
circumstances for not completing such course or courses, VA will 
prorate the amount of educational assistance to which he or she is 
entitled.
    (A) VA will determine the prorated amount of the established 
charges by dividing the amount the individual was paid for the course 
or courses not completed by the number of days in the certified 
enrollment period, and multiplying the result by the number of days 
from the beginning date of the enrollment period through the last date 
of attendance. The result of this calculation will equal the amount the 
individual is due. The difference between the amount of educational 
assistance paid and the amount of educational assistance the individual 
is due for the course or courses not completed will be established as 
an overpayment.
    (B) VA will determine the prorated amount of the monthly housing 
allowance by determining the amount the individual was entitled to 
while enrolled and subtracting that amount from the total amount paid. 
The difference between the amount of the monthly housing allowance paid 
and the amount of the monthly housing allowance the individual is due 
will be established as an overpayment.
    (C) Individuals who have substantiated mitigating circumstances 
will not be charged an overpayment for the lump sum payment for books, 
supplies, equipment, and other educational costs (``book stipend'').

(Authority: 38 U.S.C. 3034(a), 3323, 3685, 5302)

Sec.  21.9700  Yellow Ribbon Program.

    (a) Establishment. The ``Yellow Ribbon G.I. Education Enhancement 
Program'', known as the ``Yellow Ribbon Program,'' permits an 
institution of higher learning (IHL), at the IHL's option, to enter 
into an agreement with VA to allow the two parties to provide matching 
funds to cover a portion of the outstanding amount of established 
charges not covered under 38 U.S.C. chapter 3313(c)(1)(A).
    (b) Eligible individuals. This program is only available to 
individuals entitled to the 100 percent educational assistance rate 
(based on service requirements) as shown in the chart in Sec.  
21.9640(a) or to their designated dependents using entitlement 
transferred under Sec.  21.9570, who are pursuing training at an 
eligible IHL.
    (c) Eligible IHLs. This program is only available at IHLs located 
in the United States or at a branch of such IHL that is located outside 
the United States.
    (d) Agreements. VA will enter into an agreement with an eligible 
IHL located in the United States seeking to participate in the Yellow 
Ribbon Program based on a general agreement format developed by VA in 
which the IHL must agree to--
    (1) Provide contributions to eligible individuals who apply for 
such program at that institution (in a manner prescribed by the 
institution) on a first-come-first-served basis, regardless of the rate 
at which the individual is pursuing training (i.e., full-time versus 
less than full-time), during the academic year;
    (2) Provide contributions during the current academic year and all 
subsequent academic years in which the IHL participates in the Yellow 
Ribbon Program and the student maintains satisfactory progress, 
conduct, and attendance according to the regularly prescribed standards 
of the institution;
    (3) Limit contributions made on behalf of a participant to funds 
under the unrestricted control of the IHL (e.g., a scholarship sent 
directly to an IHL on behalf of an individual or specific group of 
individuals from a third party may not be included in Yellow Ribbon 
Program contributions). Funds received directly or indirectly from 
Federal sources may not be counted toward contributions;
    (4) State the maximum number of individuals for whom contributions 
will be made during the academic year;
    (5) State the manner (whether by direct grant, scholarship, or 
otherwise) contributions will be made under the Yellow Ribbon Program;
    (6) State the maximum dollar amount of contributions that may be 
provided on behalf of any particular individual during the academic 
year regardless of the rate at which the individual is pursuing 
training. IHLs may specify different contributions amounts--
    (i) Based on student status (i.e. , undergraduate, graduate, 
doctoral), or
    (ii) For each subelement of the institution (i.e., college or 
professional school). The maximum amount specified for each subelement 
of the IHL will apply to all programs and disciplines offered under 
such subelement.
    (7) Provide the maximum amount of contributions payable toward the 
unmet established charges to all participating individuals during each 
term, quarter, or semester the individual is enrolled if the IHL's 
total contribution toward the individual's unmet established charges 
for the term, quarter, or semester, do not exceed the maximum dollar 
amount payable during the academic year as specified in paragraph 
(d)(6) of this section.
    (e) Centralized Agreements. IHLs with multiple campuses may enter 
into a single Yellow Ribbon Program Agreement if all participating 
branches and extensions--
    (1) Are listed in the agreement;
    (2) Are subject to the authority of the authorizing official 
signing the Yellow Ribbon Program Agreement; and
    (3) Have a certifying official or other employee who meets the 
requirements of Sec.  21.4266(f)(3)(ii) and who has access to the terms 
of the Yellow Ribbon Program Agreement.
    (f) Matching Contributions. VA will match each dollar provided by 
the school on behalf of an individual; however, the combined amount of 
contributions under the Yellow Ribbon Program may not exceed the 
remaining amount of established charges not covered under 38 U.S.C. 
chapter 3313(c)(1)(A).
    (g) Outreach. The most current list of colleges and universities 
participating in the Yellow Ribbon Program will be available at VA's GI 
Bill Web site at http://www.gibill.va.gov. The list will include 
specific information on each school's agreement with VA.

(Authority: 38 U.S.C. 3317)

Pursuit of Courses


Sec.  21.9710  Pursuit.

    Except for an eligible individual seeking tuition assistance top-up 
or reimbursement for taking an approved licensing or certification 
test, an individual's educational assistance depends upon his or her 
pursuit of a program of education. Verification of this pursuit is 
accomplished by various certifications.

(Authority: 38 U.S.C. 3323(c))

Sec.  21.9715  Advance payment certification.

    All certifications required by this section shall be in a form 
specified by the Secretary and shall contain such information as 
specified by the Secretary. An advance payment under this chapter is 
only permissible to an individual whose rate of pursuit is greater than 
half-time, and who is

[[Page 14693]]

entitled to the monthly housing allowance as provided in Sec.  
21.9640(b)(1)(ii) or (b)(2)(ii).
    (a) Certification needed before an advance payment can be made. In 
order for an individual to receive an advance payment of the monthly 
housing allowance, an application or other document must be signed by 
the individual or the enrollment certification must be signed by an 
authorized official of the institution of higher learning.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(d))


    (b) Advance payments. All verifications required by this paragraph 
shall be in a form specified by the Secretary and shall contain such 
information as specified by the Secretary.
    (1) For each eligible individual receiving an advance payment, an 
institution of higher learning must--
    (i) Verify enrollment for the individual; and
    (ii) Verify the delivery of the advance payment check to the 
individual.
    (2) Once the institution of higher learning has initially verified 
the enrollment of the individual, the individual, not the institution 
of higher learning, must make subsequent verifications in order to 
release further payment for that enrollment as provided in Sec.  
21.9730.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(d))

Sec.  21.9720   Certification of enrollment.

    Except as stated in Sec.  21.9680, an institution of higher 
learning must certify an eligible individual's enrollment before he or 
she may receive educational assistance.
    (a) Institutions of higher learning must certify most enrollments. 
VA does not, as a condition of payment of tuition assistance top-up or 
advance payment, require institutions of higher learning to certify the 
enrollments of eligible individuals who either are seeking tuition 
assistance top-up or, in the cases described in Sec.  21.9715, are 
seeking an advance payment. VA does not require organizations or 
entities offering a licensing or certification test to certify that the 
eligible individual took the test. In all other cases, the institution 
of higher learning must certify the eligible individual's enrollment 
before he or she may receive educational assistance. This certification 
must be in a form specified by the Secretary and contain such 
information as specified by the Secretary.

(Authority: 38 U.S.C. 3014(b), 3031, 3034(a), 3323(a), 3482(g), 
3680, 3687, 3689, 5101(a))


    (b) Length of the enrollment period covered by the enrollment 
certification. (1) Institutions of higher learning that offer courses 
on a term, quarter, or semester basis will report enrollment for the 
term, quarter, semester, ordinary school year, or ordinary school year 
plus summer term. If the certification covers two or more terms, the 
institution of higher learning will report each term, quarter, or 
semester separately.
    (2) Institutions of higher learning organized on a year-round basis 
that do not offer courses on a term, quarter, or semester basis will 
report enrollment for the length of the course. The certification will 
include a report of the dates during which the institution of higher 
learning closes for any intervals designated in its approval data as 
breaks between school years.
    (3) When an eligible individual enrolls in a distance learning 
program leading to a standard college degree, the institution of higher 
learning's certification will include--
    (i) The enrollment date; and
    (ii) The ending date for the period being certified. If the 
institution of higher learning has no prescribed maximum time for 
completion, the certification must include an ending date based on the 
educational institution's estimate for completion.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3684)



(Approved by the Office of Management and Budget under control number 
2900-0073)


Sec.  21.9725   Progress and conduct.

    (a) Satisfactory pursuit of program. In order to receive payments 
of educational assistance under 38 U.S.C. chapter 33 for pursuit of a 
program of education, an individual must maintain satisfactory 
progress. VA will discontinue payments of educational assistance if the 
individual does not maintain satisfactory progress. Progress is 
unsatisfactory if the individual does not satisfactorily progress 
according to the regularly prescribed standards of the institution of 
higher learning he or she is attending.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)


    (b) Satisfactory conduct. In order to receive educational 
assistance for pursuit of a program of education, an individual must 
maintain satisfactory conduct according to the regularly prescribed 
standards and practices of the institution of higher learning in which 
he or she is enrolled. If the individual will no longer be retained as 
a student or will not be readmitted as a student by the institution of 
higher learning in which he or she is enrolled, VA will discontinue 
educational assistance, unless further development establishes that the 
institution of higher learning's action is wrongfully retaliatory in 
nature.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)


    (c) Satisfactory attendance. In order to receive educational 
assistance for pursuit of a program of education, an individual must 
maintain satisfactory attendance. VA will discontinue educational 
assistance if the individual does not maintain satisfactory attendance. 
Attendance is unsatisfactory if the individual does not attend 
according to the regularly prescribed standards of the institution of 
higher learning in which he or she is enrolled.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)


    (d) Reentrance after discontinuance. (1) An eligible individual may 
be reentered following discontinuance because of unsatisfactory 
attendance, conduct, or progress when either:
    (i) The individual resumes enrollment at the same institution of 
higher learning in the same program of education and the institution of 
higher learning has both approved the individual's reenrollment and 
certified it to VA; or
    (ii) VA determines that--
    (A) The cause of the unsatisfactory attendance, conduct or progress 
has been removed, and
    (B) The program that the individual now proposes to pursue is 
suitable to his or her aptitudes, interests, and abilities.
    (2) Reentrance may be for the same program, a revised program, or 
an entirely different program depending on the cause of the 
discontinuance and the removal of that cause.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)

Sec.  21.9735  Other required reports.

    VA will apply the provisions of Sec.  21.7156 to individuals and 
institutions of higher learning under 38 U.S.C. chapter 33 as those 
provisions are applied to veterans and educational institutions under 
38 U.S.C. chapter 30.

(Authority: 38 U.S.C. 3034(a), 3323(a))

Sec.  21.9740   False, late, or missing reports.

    (a) Eligible individual. Payments may not be based on false or 
misleading statements, claims or reports. VA will apply the provisions 
of Sec. Sec.  21.4006 and 21.4007 to any individual who submits false 
or misleading claims, statements, or reports in connection with 
benefits payable under 38 U.S.C. chapter 33 in the same manner as they 
are applied to people who make similar false or

[[Page 14694]]

misleading claims for benefits payable under 38 U.S.C. chapter 36.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680, 3690, 6103)


    (b) Institution of higher learning. (1) VA may hold an institution 
of higher learning liable for overpayments that result from the 
institution of higher learning's willful or negligent failure to report 
excessive absences from a course, discontinuance of a course, or 
interruption of a course by an individual or from willful or negligent 
false certification by the institution of higher learning. See Sec.  
21.9695(b).
    (2) If an institution of higher learning willfully and knowingly 
submits a false report or certification, VA may disapprove that 
institution of higher learning's programs of education for further 
enrollments and may discontinue educational assistance to eligible 
individuals already enrolled. In doing so, VA will apply Sec. Sec.  
21.4210 through 21.4216.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690)

Sec.  21.9745   Reporting fee.

    In determining the amount of the reporting fee payable to 
institutions of higher learning for furnishing required reports, VA 
will apply the provisions of Sec.  21.4206 in the same manner as they 
are applied in the administration of 38 U.S.C. chapter 36.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3684)

Course Assessment


Sec.  21.9750   Course measurement.

    VA will calculate an individual's rate of pursuit of an approved 
program of education during the individual's period of enrollment in 
accordance with this section. For the purpose of this chapter, VA will 
consider any rate of pursuit higher than 50 percent to be more than 
one-half time training.
    (a) Measurement of courses reported in credit hours. If the courses 
are measured in credit hours, then the number of credit hours the 
individual is taking in a term, quarter, or semester will be divided by 
the minimum number of credit hours considered to be full-time pursuit 
in a term, quarter, or semester at the institution of higher learning 
as provided in paragraph (c) of this section. The resulting percentage 
will be the individual's rate of pursuit.
    (b) Measurement of courses reported in clock hours. If the courses 
are measured in clock hours, VA will--
    (1) Convert the clock hours to equivalent credit hours by--
    (i) Adding the total number of clock hours pursued during the term, 
quarter or semester;
    (ii) Dividing the sum of paragraph (b)(1)(i) of this section by the 
total number of weeks in the term; and
    (iii) Multiplying the result of paragraph (b)(1)(ii) of this 
section rounded to the nearest hundredth by--
    (A) If the institution of higher learning measures courses using 
both credit and clock hours, the decimal determined by dividing the 
number of credit hours considered full-time at the institution by the 
number of clock hours considered full-time at the institution.
    (B) If the institution of higher learning only measures courses 
using clock hours, the decimal determined by dividing 14 credit hours 
by the number of clock hours considered full-time at the institution.
    (2) Divide the result of paragraph (b)(1) rounded to the nearest 
hundredth by the minimum number of credit hours considered to be full-
time pursuit in a term, quarter, or semester as provided in paragraph 
(c) of this section. The resulting percentage will be the individual's 
rate of pursuit.
    (c) Fourteen credit hours are full-time unless the institution of 
higher learning certifies that all undergraduate students enrolled for 
13 credit hours, or for 12 credit hours, are charged full-time tuition 
or are considered full-time for other administrative purposes.
    (d) High school courses. If an individual using transferred 
entitlement is eligible for pursuit of a secondary school diploma or 
equivalency certificate, VA will determine the rate of pursuit in 
accordance with this paragraph. For individuals pursuing high school 
courses measured in--
    (1) Credit hours, VA will use the formula in paragraph (a) of this 
section.
    (2) Clock hours, VA will use the formula in paragraph (b) of this 
section.
    (3) Units, VA will convert the units to credit hours as follows--
    (i) Divide the total number of units required for the program of 
education by 4 (the number of ordinary school years generally required 
for completion);
    (ii) Round the result of paragraph (d)(3)(i) of this section to the 
nearest whole number.
    (iii) Multiply the result of paragraph (d)(3)(ii) of this section 
by:
    (A) 1.0 to determine the number of units required for a rate of 
pursuit equal to 100 percent. This number is equivalent to 14 credit 
hours;
    (B) .75 to determine the number of units required for a rate of 
pursuit equal to 75 percent. An individual will be considered to be 
enrolled in 10.5 credit hours for any number of units equal to or 
greater than the number determined in this paragraph but less than the 
number determined in paragraph (d)(3)(iii)(A) of this section;
    (C) .50 to determine the number of units required for a rate of 
pursuit equal to 50 percent. An individual will be considered to be 
enrolled in 7 credit hours for any number of units equal to or greater 
than the number determined in this paragraph but less than the number 
determined in paragraph (d)(3)(iii)(B) of this section;
    (D) .25 to determine the number of units required for a rate of 
pursuit equal to 25 percent. An individual will be considered to be 
enrolled in 3.5 credit hours for any number of units up to the number 
determined in paragraph (d)(3)(iii)(C) of this section.

(Authority: 38 U.S.C. 3319(h))

Approval of Programs of Education


Sec.  21.9765   Program of education approval.

    VA may provide educational assistance for pursuit of a program of 
education offered by an institution of higher learning if that program 
of education is approved under 38 U.S.C. chapter 30 in accordance with 
Sec. Sec.  21.7220 and 21.7222.

(Authority: 38 U.S.C. 3034(a), 3313(b), 3323(a))

Administrative


Sec.  21.9770   Administrative.

    In administering chapter 33, VA will apply the sections noted in 
paragraphs (a) through (f) of this section. For the purpose of 
application, the term ``veteran'' as used in these sections is deemed 
to mean ``an eligible individual under 38 U.S.C. chapter 33,'' and the 
term ``38 U.S.C chapter 30'' as used in these sections is deemed to 
mean ``38 U.S.C. chapter 33''.
    (a) Section 21.7301--Delegations of authority;
    (b) Section 21.7302--Finality of decisions;
    (c) Section 21.7303--Revision of decisions;
    (d) Section 21.7305--Conflicting interests;
    (e) Section 21.7307--Examination of records; and
    (f) Section 21.7310--Civil rights.

(Authority: 38 U.S.C. 511, 512(a), 3034(a), 3323(a), 3690, 3696)


195 [FR Doc. E9-7052 Filed 3-30-09; 8:45 am]
BILLING CODE