Educational Assistance for Members of the Selected Reserve

DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AE43

Educational Assistance for Members of the Selected Reserve

AGENCIES: Department of Defense, Department of Transportation (Coast

Guard), and Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the regulations for the Montgomery GI

Bill--Selected Reserve program to reflect statutory changes by adding

for certain reservists new types of permissible training such as

apprenticeship and other on-job training, cooperative training, and

flight training; by liberalizing the eligibility provisions; and by

increasing the rates of payment. The regulations are also amended by

adding additional restatements of statute, interpretive rules, and

nonsubstantive changes.

DATES: Effective Date: This final rule is effective June 10, 1996.

Applicability Dates: The restatements of statute and VA's statutory

interpretations contained in this final rule will be applied

retroactively from

[[Page 29298]]

the effective dates of the statutory provisions. For more information

concerning the application of the provisions of this final rule, see

the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director

for Policy and Program Administration, Education Service, Veterans

Benefits Administration, Department of Veterans Affairs, (202) 273-

7187.

SUPPLEMENTARY INFORMATION: In a document published in the Federal

Register on September 2, 1994 (59 FR 45644), the Department of Defense,

the Department of Transportation (Coast Guard), and the Department of

Veterans Affairs proposed to amend the ``Educational Assistance for

Members of the Selected Reserve'' regulations which are set forth at 38

CFR Sec. 21.7500 et seq. It was proposed to amend the regulations to

implement provisions of the Veterans Education and Employment

Amendments of 1989 (Title IV of Pub. L. 101-237), the National Defense

Authorization Act for Fiscal Years 1990 and 1991 (Pub. L. 101-189), and

the Veterans Education and Employment Programs Amendments (Pub. L. 102-

16) that affected the Montgomery GI Bill--Selected Reserve program.

Interested persons were given 60 days to submit comments. One comment

was received. The comment, signed by six students at a university,

urged that the proposed rule be adopted.

Based on the rationale set forth in the proposed rule document, we

are adopting the provisions of the proposed rule as a final rule,

except as otherwise explained below.

Prior to the effective date of this document, as a prerequisite for

VA educational assistance, reservists in courses not leading to a

standard college degree were required to submit to VA a monthly report

endorsed by the educational institution stating each day of absence

from scheduled attendance. The proposed rule would have deleted such

requirements for reservists in a course not leading to a standard

college degree. We are adopting this portion of the proposal. It was

proposed with certain exceptions to establish new reporting

requirements for reservists both in courses leading to a standard

college degree and in courses not leading to a standard college degree.

In this regard, it was proposed to require all reservists other than

those in flight training or correspondence courses to submit a

verification (without endorsement of educational institutions) of

continued pursuit of the reservist's program of education before

monthly benefits were paid. The proposed provisions concerning

verification of pursuit are not adopted for reservists in courses

leading to a standard college degree but are adopted for reservists in

courses (other than flight or correspondence courses) not leading to a

standard college degree. Experience in similar programs has shown that

because of frequent changes in enrollment it is necessary to continue

to obtain monthly reports from the small percentage of reservists in

courses not leading to a standard college degree. However, the proposed

provisions concerning verification of pursuit for reservists in courses

leading to a standard college degree are not adopted because VA simply

does not have resources at this time to process the verifications.

Restatements of Statutory Provisions and Other Conforming Changes

Changes are made to the final rule to include restatements of

statutes and other conforming changes as follows:

1. Section 21.7636 is amended to reflect that the Persian Gulf

Supplemental Authorization and Personnel Benefits Act of 1991 (Pub. L.

102-25), the Veterans' Benefit Act of 1992 (Pub. L. 102-568), and the

Omnibus Budget Reconciliation Act of 1993 (Pub. L. 103-66) changed the

monthly rates of educational assistance payable to reservists beginning

October 1, 1991, for training full time, three quarters time, and half

time under the Montgomery GI Bill--Selected Reserve program. Section

21.7636 is also amended by making corresponding changes for training

one quarter time, which under the regulations is one quarter the amount

of full time.

2. Sections 21.7540, 21.7622, 21.7635(r), and 21.7639 (f) and (k)

are amended to reflect that Public Law 101-189 added with respect to

training that may be pursued under the Montgomery GI Bill--Selected

Reserve program certain liberalizing provisions that it applied only to

a reservist who, after September 30, 1990, makes a new commitment to

serve six years in the Selected Reserve. Accordingly, those sections of

the regulations are amended to reflect that such a reservist, if

otherwise eligible, may pursue under the Montgomery GI Bill--Selected

Reserve program: a course that is offered by an educational institution

which is not an institution of higher learning; a correspondence

course; a program of education leading to a standard college degree

offered solely by independent study; a refresher, remedial, or

deficiency course; a cooperative course; an apprenticeship or other on-

job training; and a flight course.

3. Section 21.7576 is amended to reflect the provisions in Public

Law 101-189 concerning how VA will apply entitlement charges to flight

training, correspondence training, cooperative training, and

apprenticeship or other on-job training.

4. Changes are made to Secs. 21.7540(b)(3)(iii), 21.7620(c),

21.7622(f)(vi), and 21.7722 to reflect that Public Law 102-568 changed

the provisions with respect to approval for VA educational assistance

to add a requirement that an independent study program must be

accredited, except that such requirement is not added for a reservist

who, as of October 29, 1992, was receiving educational assistance for

pursuit of an independent study program, and who has remained

continuously enrolled in that program.

5. Sections 21.7631(a) and 21.7642(e) are amended to reflect that

the National Defense Authorization Act for Fiscal Year 1993 (Public Law

102-484) provides that a reservist who enters a program of job training

under the Service Members Occupational Conversion and Training Act of

1992 (SMOCTA) is barred from receiving educational assistance under the

Montgomery GI Bill--Selected Reserve program for the same period for

which SMOCTA assistance is paid.

6. Section 21.7635(a) is amended to reflect that Public Law 102-568

provides that when a reservist receives an advance payment of

educational assistance and dies during the period covered by the

advance payment, the ending date of educational assistance is the last

date of the advance payment period.

7. Section 21.7639(a) is amended to reflect that Public Law 101-237

repealed certain provisions concerning payment reductions resulting

from excessive absences.

8. Section 21.7639 (f)(1) and (2) is amended to reflect that Public

Law 102-568 repealed certain provisions concerning the rate of payment

for a program pursued in whole or in part by independent study.

9. Section 21.7645(e) is amended to reflect that Public Law 102-568

limits work-study advance payments to 50 times the hourly wage

specified in the work-study contract for reservists eligible for

educational assistance under the Montgomery GI Bill--Selected Reserve

program who participate in VA's work-study program.

10. Section 21.7672 is amended to reflect that Public Law 102-568

revised the course measurement provisions that determine whether a

reservist's

[[Page 29299]]

enrollment under the Montgomery GI Bill--Selected Reserve program is

full time, three-quarter time, half time, or one-quarter time.

11. Section 21.7722 is amended to reflect that Public Law 102-568

specifically allows approval of certain courses for training an

individual to become a nurse's aide.

12. Sections 21.7540(b), 21.7620(d), 21.7622(f), 21.7670, and

21.7722 are amended to reflect that Public Law 103-160 makes graduate

training available under the Montgomery GI Bill--Selected Reserve

program.

13. Section 21.7520(b) is amended to reflect that Public Law 103-

446 contains a provision that requires any entity offering an

alternative teacher certification program to be considered to be an

educational institution for VA purposes during the period beginning on

November 2, 1994, and ending on September 30, 1996.

14. Section 21.7520(b) is amended to reflect that Public Law 103-

446 prohibits VA from supervising the State approving agencies (SAAs)

that approve courses for VA training.

Interpretations

As discussed above, Public Law 102-568 provides that the

prohibition against VA payment of educational assistance for

nonaccredited independent study programs does not apply to a reservist

who, as of October 29, 1992, was receiving educational assistance for

pursuit of an independent study program, and who has remained

continuously enrolled in that program. This document adds a definition

of ``continuously enrolled'' as meaning being in an enrolled status at

an educational institution for each day during the ordinary school year

and for consecutive school years. In this regard, continuity of

enrollment is not considered broken by holiday vacations, vacation

periods, periods during the school year between terms, quarters, or

semesters, or by nonenrollment during periods of enrollment outside the

ordinary school year (e.g., summer sessions). We believe this is

consistent with its common meaning and the congressional intent. We

have also provided in Sec. 21.7620(c)(4) that whether or not a

reservist is ``enrolled'' will be determined by the regularly

prescribed standards and practices of the educational institution

offering the course or unit subject. Further, in determining whether

payment may be made for a nonaccredited course or unit subject offered

entirely or partly by independent study, we interpret the term

``independent study program'', consistently with the definition of

independent study found in Sec. 21.4267, to mean a course or unit

subject that is offered entirely or partly by independent study as well

as an entire program of education of which such nonaccredited course or

unit subject is a required part. We believe that our use of the terms

``enrolled'' and ``independent study program'' are consistent with

congressional intent.

Public Law 102-484 provided exceptions to the general rule that on

the date a reservist ceases to be in the Selected Reserve, the

reservist loses eligibility for educational assistance under the

Montgomery GI Bill--Selected Reserve program. However, as noted above,

these exceptions do not apply to a reservist who ceases to be a

reservist because the Secretary of a military department needs to

reduce the number of members in certain grades or who have completed a

certain number of years of service, or the number of members who

possess certain military skills or are serving in designated

competitive categories. For such a reservist, VA will determine which

of the rules concerning the ending dates of eligibility apply to the

reservist. (For example, the rules concerning discharge for disability,

leaving the Selected Reserves in the middle of a school term, etc., may

apply to such a reservist). In this regard, Sec. 21.7550 is amended to

provide that if more than one rule applies, VA will apply the one that

is the most advantageous to the reservist. We believe that this

interpretation is in agreement with congressional intent.

Public Law 102-568 sets forth criteria for measuring full-time

enrollment for trade courses, technical courses, and undergraduate

courses. These courses are measured by the educational institution on

either a clock-hour or a credit-hour basis. The current regulations

already set forth formulas for converting clock hours into credit

hours, and vice versa. In our view, the provisions of Public Law 102-

568 require that all hours be measured consistent with the statutory

measurement criteria applicable to the primary institution.

Accordingly, the regulations at Sec. 21.7673 are amended to reflect

this requirement.

As noted above, Public Law 103-446 contains a provision that

requires any entity offering an alternative teacher certification

program to be considered to be an educational institution for VA

purposes during the period beginning on November 2, 1994, and ending on

September 30, 1996. This final rule defines ``alternative teacher

certification program'' as follows:

The term alternative teacher certification program, for the

purposes of determining whether an entity offering such a program is

a school, educational institution, or institution [as elsewhere

defined in this section], means a program leading to a teacher's

certificate that allows individuals with a bachelor's degree or

graduate degree to obtain teacher certification without enrolling in

an institution of higher learning.

We believe this is consistent with the congressional intent.

As noted above, under the provisions of Public Law 102-568 payments

of educational assistance could under certain circumstances be

terminated for reservists enrolled in a nonaccredited independent study

course. This document provides that educational assistance would

terminate from the date the course loses accreditation. VA believes

that usually the State approving agency would make its date of

withdrawal of approval effective on the date of the loss of

accreditation. Rather than have VA continue to pay benefits to someone

while waiting for a State approving agency to act, only to have those

payments become an overpayment when the SAA formally withdraws approval

retroactively to the effective date of the loss of accreditation, this

final rule provides that the effective date of termination of payment

of educational assistance for pursuit of such a course is the date on

which the course loses its accreditation. VA believes this approach

accords with the intent of the statutory prohibition concerning payment

for nonaccredited independent study courses.

Other Nonsubstantive Changes

Further, this final rule makes nonsubstantive changes to correct

typographical errors, to clarify provisions, and to update legal

citations.

Dates of Application

Restatements of statute and statutory interpretations made by this

final rule will be applied retroactively from the effective dates of

the statutory provisions. The dates of application for such changes and

for certain of the nonsubstantive changes made for clarity, to correct

typographical errors, or to reflect statutory recodification changes

are as follows:

December 18, 1989: Secs. 21.7639(a); 21.7640(a)(2); 21.7642 (a)(7),

(a)(8), and (a)(9); 21.7653; 21.7654; and 21.7672(d).

May 1, 1990: Sec. 21.7645 (a), (b), (c), (d), (e)(1), (f), (g), and

(h).

September 30, 1990: Secs. 21.7520(b)(19)(i)(E); 21.7576 (a)(1), (b)(5),

and (b)(7); 21.7620 (b)(1)(i), (b)(1)(ii)(A), (B), (C), and (D), and

(2);

[[Page 29300]]

21.7639(i); 21.7640(a)(5); and 21.7670(b).

October 1, 1990: Secs. 21.7520 (b)(1), (b)(17), (b)(19)(i)(A), (B),

(C), and (D), and (ii), (b)(20), (b)(23)(i), (ii), and (iii), (b)(30),

(b)(31), and (b)(32); 21.7540 (a) and (b); 21.7576 (a)(2), (a)(3),

(a)(4), (b)(1), (b)(2), (b)(3), (b)(4), and (b)(6); 21.7612; 21.7622

(f)(1), (f)(2), (f)(4)(i), (ii), (iii), (iv), and (v); 21.7624;

21.7631(a)(1) and headings for paragraphs (b) and (c); 21.7635 (b)(3),

(b)(4), (b)(5), and (r); 21.7636(a)(2)(ii) and (b); 21.7639(f), (g),

(h), (j), and (k); 21.7640 (a)(1), (a)(3), (a)(4), and (b)(1); 21.7674;

21.7700(a); 21.7720 (a) and (b); 21.7722 (a)(1) and (a)(2); and

21.7722(b).

October 23, 1992: Secs. 21.7550; 21.7631(g); 21.7635 (w) and (x);

21.7642(e)(2); and 21.7700(f).

October 29, 1992: Secs. 21.7520 (b)(11) and (b)(34); 21.7620(c);

21.7622(f)(4)(vi); 21.7635 (a) and (v); 21.7645(e)(2); 21.7670(f);

21.7700(g); 21.7722(a)(3); and the removal of Sec. 21.7670(d).

July 1, 1993: Secs. 21.7672 (b)(1), (b)(3), (b)(4), (b)(5), (c), (e),

and (f); and 21.7673.

November 30, 1993: Secs. 21.7620(d); 21.7622(f)(3); 21.7670, heading

and introductory text; and 21.7622, introductory text and the removal

of Sec. 21.7722, introductory text, and paragraphs (c), (d), (e), (f),

(g), (h) (i), (j), (k), (l), (m), (n), and (o).

October 1, 1994: Sec. 21.7620(b)(1)(ii)(E).

November 2, 1994: Secs. 21.7520(b)(23)(iv) and (b)(35); and 21.7700,

introductory text.

The effective date for Sec. 21.7636(a)(1) and (a)(3) is June 10,

1996. However, VA will apply the rates stated in those paragraphs

retroactively to training completed in the past as stated in those

paragraphs.

The amendments to the following are for clarification and for the

purpose of eliminating typographical errors, or are authority

citations: Secs. 21.7639 section heading, (b)(1), and (e);

21.7642(a)(6); and 21.7700, authority citation. The effective date of

these provisions is June 10, 1996.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act, the information

collection or recordkeeping requirements included, in whole or in part,

in this final rule have been approved by the Office of Management and

Budget (OMB) under OMB control numbers 2900-0073, 2900-0552, and 2900-

0553 (see Secs. 21.7640, 21.7653, and 21.7654).

As noted above, the proposed reporting requirements for

verification of pursuit, which were approved under OMB control number

2900-0553, are not adopted for reservists in courses leading to a

standard college degree. The reporting burden per response will not

change. However, fewer reservists will be required to report.

Under the Paperwork Reduction Act of 1995, no persons are required

to respond to a collection of information unless it displays a valid

OMB control number. The valid OMB control numbers assigned to the

collections of information in these final regulations are displayed at

the end of the affected sections of the regulations.

Administrative Procedure Act

In addition to the adoption of provisions based on the proposed

rule, this final rule consists of changes not subject to the notice and

comment provisions of 5 U.S.C. 553, i.e., interpretive rules and

nonsubstantive changes.

Regulatory Flexibility Act

The Secretary of Defense, the Commandant of the Coast Guard, and

the Secretary of Veterans Affairs hereby certify 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. This final rule in large part directly affects only

individuals. Although it is possible that a small-entity (small-entity

school) could be affected by this rulemaking, the number of individuals

affected at the school would in all likelihood be an insignificant

portion of the student body. Pursuant to 5 U.S.C. 605(b), this final

rule, therefore, is exempt from the initial and final regulatory

flexibility analyses requirements of Secs. 603 and 604.

Catalog of Federal Domestic Assistance

There is no Catalog of Federal Domestic Assistance number for the

program affected by this final rule.

List of Subjects in 38 CFR Part 21

Administrative practice and procedure, Armed forces, Civil rights,

Claims, Colleges and universities, Conflict of interests, Defense

Department, 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: May 17, 1996.

Jesse Brown,

Secretary of Veterans Affairs.

Approved: May 29, 1996.

Al H. Bemis,

Deputy Assistant Secretary of Defense for Reserve Affairs (M&P).

Approved: May 31, 1996.

R.M. Larrabee,

Rear Admiral, U.S. Coast Guard, Director of Reserve and Training.

For the reasons set out in the preamble, 38 CFR part 21 (subpart L)

is amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart L--Educational Assistance for Members of the Selected

Reserve

1. The authority citation for part 21, subpart L is revised to read

as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501, ch. 36, unless

otherwise noted.

2. In Sec. 21.7520, paragraph (b)(11) is amended by removing

``Sec. 21.4280(c)'' and adding, in its place, ``Sec. 21.4267(b)''; and

paragraphs (b)(1), (b)(17), (b)(19), (b)(20), and (b)(23) are revised,

and paragraphs (b)(30), (b)(31), (b)(32), (b)(33), and (b)(35) are

added, to read as follows:

Sec. 21.7520 Definitions.

* * * * *

(b) Other definitions. (1) Attendance. The term attendance means

the presence of a reservist--

(i) In the class where the approved course in which he or she is

enrolled is taught;

(ii) At a training establishment; or

(iii) In any other place of instruction, training, or study

designated by the educational institution or training establishment

where the reservist is enrolled and is pursuing a program of education.

(Authority: 10 U.S.C. 2131(c)(1), 2136(b); 38 U.S.C. 3474; sec.

705(a)(1), Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642, Pub. L.

101-189, 103 Stat. 1456-1458)

* * * * *

(17) Program of education. A program of education--

(i) Is any unit course or subject or combination of unit courses or

subjects pursued by a reservist at an educational institution, required

by the Administrator of the Small Business Administration as a

condition to obtaining financial assistance under the provisions of 15

U.S.C. 636; or

(ii) Is a combination of subjects or unit courses pursued at an

educational institution, which combination is

[[Page 29301]]

generally accepted as necessary to meet requirements for a

predetermined educational, professional, or vocational objective. It

may consist of subjects or courses which fulfill requirements for more

than one objective if all objectives pursued are generally recognized

as being related to a single career field; and

(iii) Includes an approved full-time program of apprenticeship or

of other on-job training.

(Authority: 10 U.S.C. 2131; 38 U.S.C. 3452(b); sec. 705(a)(1), Pub.

L. 98-525, 98 Stat. 2565, 2567; secs. 642(a), (b), (d), 645, Pub. L.

101-189, 103 Stat. 1456-1458)

* * * * *

(19) Pursuit.

(i) The term pursuit means work, while enrolled, toward the

objective of a program of education. This work must be in accordance

with approved institutional policy and regulations, and with applicable

criteria of 10 U.S.C. and 38 U.S.C.; must be necessary to reach the

program's objective; and must be accomplished through--

(A) Resident courses;

(B) Independent study;

(C) Correspondence courses;

(D) An apprenticeship or other on-job training program; or

(E) Flight courses.

(Authority: 10 U.S.C 2131, 2136; 38 U.S.C. 3680(g); sec. 705(a)(1),

Pub. L. 98-525, 98 Stat. 2565, 2567; secs. 642, 645, Pub. L. 101-

189, 103 Stat. 1456-1458)

(ii) VA will consider a reservist who qualifies for payment during

an interval, school closing, or holiday vacation to be in pursuit of a

program of education during the interval, school closing, or holiday

vacation.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(g); sec. 705(a)(1),

Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642(c), (d), Pub. L. 101-

189, 103 Stat. 1457-1458)

(20) Refresher course. The term refresher course means either:

(i) A course at the elementary or secondary level to review or

update material previously covered in a course that has been

satisfactorily completed; or

(ii) A course which permits an individual to update knowledge and

skills or be instructed in the technological advances which have

occurred in the reservist's field of employment since his or her entry

on active duty and which is necessary to enable the individual to

pursue an approved program of education.

(Authority: 10 U.S.C. 2131(b), (c); sec. 705(a)(1), Pub. L. 98-525,

98 Stat. 2565; secs. 642(a), (b), (d), 645(a), (b), Pub. L. 101-189,

103 Stat. 1456-1458))

* * * * *

(23) School, educational institution, institution. The terms

school, educational institution, and institution mean:

(i) A vocational school or business school;

(ii) A junior college, teachers' college, college, normal school,

professional school, university, or scientific or technical

institution;

(iii) A public or private elementary school or secondary school

which offers courses for adults, provided that the courses lead to an

objective other than an elementary school diploma, a high school

diploma, or their equivalents; or

(iv) Any entity, during the period beginning on November 2, 1994,

and ending on September 30, 1996, other than an institution of higher

learning, that provides training required for completion of a State-

approved alternative teacher certification program.

(Authority: 10 U.S.C. 2131(a), (c); 38 U.S.C. 3002, 3452; sec.

705(a)(1), Pub. L. 98-525, 98 Stat. 2565; sec. 642(a), (b), (d),

Pub. L. 101-189, 103 Stat. 1456-1458)

* * * * *

(30) Cooperative course. The term cooperative course means a full-

time program of education which consists of institutional courses and

alternate phases of training in a business or industrial establishment

with the training in the business or industrial establishment being

strictly supplemental to the institutional portion.

(Authority: 10 U.S.C. 2131(e); 38 U.S.C. 3686; sec. 642(b), (d),

Pub. L. 101-189, 103 Stat. 1456-1458)

(31) Established charge. The term established charge means the

lesser of--

(i) The charge for the correspondence course or courses determined

on the basis of the lowest extended time payment plan offered by the

educational institution and approved by the appropriate State approving

agency; or

(ii) The actual charge to the reservist.

(Authority: 10 U.S.C. 2131(f); sec. 642(b), (d), Pub. L. 101-189,

103 Stat. 1456-1458)

(32) Training establishment. The term training establishment means

any establishment providing apprentice or other on-job training,

including those under the supervision of a college, university, any

State department of education, any State apprenticeship agency, any

State board of vocational education, any joint apprenticeship

committee, the Bureau of Apprenticeship and Training established in

accordance with 29 U.S.C. chapter 4C, or any agency of the Federal

government authorized to supervise such training.

(Authority: 10 U.S.C. 2131(d), 16136(b); 38 U.S.C. 3452(e); sec.

642(b), (d), Pub. L. 101-189, 103 Stat. 1456-1458)

(33) Continuously enrolled. The term continuously enrolled means

being in an enrolled status at an educational institution for each day

during the ordinary school year, and for consecutive school years.

Consequently, continuity of enrollment is not broken by holiday

vacations, vacation periods, periods during the school year between

terms, quarters, or semesters, or by nonenrollment during periods of

enrollment outside the ordinary school year (e.g., summer sessions).

(Authority: 10 U.S.C. 16136(b))

* * * * *

(35) Alternative teacher certification program. The term

alternative teacher certification program, for the purposes of

determining whether an entity offering such a program is a school,

educational institution, or institution as defined in paragraph

(b)(23)(iv) of this section, means a program leading to a teacher's

certificate that allows individuals with a bachelor's degree or

graduate degree to obtain teacher certification without enrolling in an

institution of higher learning.

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3452(c))

3. In Sec. 21.7540, paragraphs (b) and (c) are redesignated as

paragraphs (c) and (d), respectively; and paragraph (a) is revised, and

a new paragraph (b) is added, to read as follows:

Sec. 21.7540 Eligibility for educational assistance.

(a) Basic eligibility requirements. The Armed Forces will determine

whether a reservist is eligible to receive benefits pursuant to 10

U.S.C. chapter 1606 (or 10 U.S.C. chapter 106 as in effect before

December 1, 1994). To be eligible a reservist--

(1) Shall:

(i) Enlist, reenlist, or extend an enlistment as a Reserve for

service in the Selected Reserve so that the total period of obligated

service is at least six years from the date of such enlistment,

reenlistment, or extension; or

(ii) Be appointed as, or be serving as, a reserve officer and agree

to serve in the Selected Reserve for a period of not less than six

years in addition to any other period of obligated service in the

Selected Reserve to which the person may be subject;

(2) Must complete his or her initial period of active duty for

training;

(3) Must be participating satisfactorily in the Selected Reserve;

and

(4) Must not have elected to have his or her service in the

Selected Reserve

[[Page 29302]]

credited toward establishing eligibility to benefits provided under 38

U.S.C. chapter 30.

(Authority: 10 U.S.C. 2132; 38 U.S.C. 3033(c); sec. 705(a)(1), Pub.

L. 98-525, 98 Stat. 2565; sec. 4, Pub. L. 100-48, 101 Stat. 331;

secs. 643, 645, Pub. L. 101-189, 103 Stat. 1458)

(b) Eligibility requirements for expanded benefits. (1) A reservist

shall be eligible to pursue all types of training described in subpart

L of this part regardless of whether he or she has received a

baccalaureate degree or equivalent evidence of completion of study if--

(i) After September 30, 1990, he or she takes one of the actions

described in paragraph (a)(1)(i) or (a)(1)(ii) of this section;

(ii) The reservist meets the criteria of paragraphs (a)(2) through

(a)(4) of this section; and

(iii) The reservist does not have his or her eligibility limited as

described in paragraph (c) of this section.

(2) A reservist shall be eligible to pursue all types of training

described in subpart L of this part except the training described in

paragraph (b)(3) of this section if--

(i) After June 30, 1985, but not after September 30, 1990, he or

she takes one of the actions described in paragraph (a)(1) or (a)(2) of

this section;

(ii) The reservist has not received a baccalaureate degree or the

equivalent evidence of completion of study;

(iii) The reservist meets all the other eligibility criteria of

paragraph (a) of this section; and

(iv) The reservist does not have his or her eligibility limited by

paragraph (c) of this section.

(3) The types of training which a reservist described in paragraph

(b)(1) of this section may pursue, but which may not be pursued by a

reservist described in paragraph (b)(2), are:

(i) A course which is offered by an educational institution which

is not an institution of higher learning (to determine if a nursing

course is offered by an institution of higher learning, see

Sec. 21.7622(f));

(ii) A correspondence course;

(iii) A program of education leading to a standard college degree

offered solely by independent study (but see Sec. 21.7622(f) concerning

enrollment in a nonaccredited independent study course after October

28, 1992);

(iv) A refresher, remedial or deficiency course;

(v) A cooperative course;

(vi) An apprenticeship or other on-job training; and

(vii) A flight course.

(Authority: 10 U.S.C. 2131, 2132, 2136; sec. 705(a)(1), Pub. L. 98-

525, 98 Stat. 2565, 2567; secs. 642, 643, 645, Pub. L. 101-189, 103

Stat. 1456-1458)

* * * * *

4. In Sec. 21.7550, paragraph (a), introductory text, is revised,

and paragraph (d) is added, to read as follows:

Sec. 21.7550 Ending dates of eligibility.

(a) Time limit on eligibility. Except as provided in Sec. 21.7551

and paragraphs (a)(3), (b), (c), and (d) of this section, a reservist's

period of eligibility expires effective the earlier of the following

dates:

* * * * *

(d) Unit deactivated. (1) Except as provided in paragraph (d)(3) or

(d)(4) of this section, the period of eligibility of a reservist,

eligible for educational assistance under this subpart, who ceases to

be a member of the Selected Reserve during the period beginning October

1, 1991, and ending September 30, 1999, under either of the conditions

described in paragraph (d)(2) of this section, will expire on the date

10 years after the date the reservist becomes eligible for educational

assistance.

(2) The conditions referred to in paragraph (d)(1) of this section

for ceasing to be a member of the Selected Reserve are:

(i) The deactivation of the reservist's unit of assignment; and

(ii) The reservist's involuntarily ceasing to be designated as a

member of the Selected Reserve pursuant to 10 U.S.C. 10143(a).

(3) The provisions of paragraphs (d)(1) and (d)(2) of this section

do not apply if the reservist ceases to be a member of the Selected

Reserve under adverse conditions, as characterized by the Secretary of

the military department concerned. The expiration of such a reservist's

period of eligibility will be on the date the reservist ceases, under

adverse conditions, to be a member of the Selected Reserve.

(4) A reservist's period of eligibility will expire if he or she is

a member of a reserve component of the Armed Forces and (after having

involuntarily ceased to be a member of the Selected Reserve) is

involuntarily separated from the Armed Forces under adverse conditions,

as characterized by the Secretary of the military department concerned.

The expiration of such a reservist's period of eligibility will be on

the date the reservist is involuntarily separated under adverse

conditions from the Armed Forces.

(Authority: 10 U.S.C. 16133)

5. In Sec. 21.7576, paragraphs (a), (b)(1), and (b)(2) are revised,

and paragraphs (b)(3), (b)(4), (b)(5), (b)(6), and (b)(7) are added, to

read as follows:

Sec. 21.7576 Entitlement charges.

(a) Overview. VA will make charges against entitlement as stated in

this section. Charges are based upon the principle that a reservist who

trains full time for one day should be charged one day of entitlement,

except for those pursuing:

(1) Flight training;

(2) Correspondence training;

(3) Cooperative training; or

(4) Apprenticeship or other on-job training.

(Authority: 10 U.S.C. 2131(c); sec. 705(a)(1), Pub. L. 98-525, 98

Stat. 2565; sec. 642(a), (b), (d), Pub. L. 101-189, 103 Stat. 1456-

1458)

(b) Determining entitlement charge. * * *

(1) Except for those pursuing flight training, correspondence

training, cooperative training, apprenticeship or other on-job

training, VA will make a charge against entitlement--

(i) On the basis of total elapsed time (one day for each day of

pursuit for which the reservist is paid educational assistance) if the

reservist is pursuing the program of education on a full-time basis; or

(ii) On the basis of a proportionate rate of elapsed time, if the

reservist is pursuing the program of education on a three-quarter, one-

half, or one-quarter-time basis.

(2) VA will compute elapsed time from the commencing date of the

award of educational assistance to the date of discontinuance. If the

reservist changes his or her training time after the commencing date of

the award, VA will--

(i) Divide the enrollment period into separate periods of time

during which the reservist's training time remains constant; and

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

(3) For each month that a reservist is paid a monthly educational

assistance allowance while undergoing apprenticeship or other on-job

training, VA will make a charge against entitlement of--

(i) .75 of a month in the case of payments made during the first

six months of the reservist's pursuit of the program of apprenticeship

or other on-job training;

(ii) .55 of a month in the case of payments made during the second

six months of the reservist's pursuit of the program of apprenticeship

or other on-job training; and

(iii) .35 of a month in the case of payments made following the

first

[[Page 29303]]

twelve months of the reservist's pursuit of the program of

apprenticeship or other on-job training.

(4) When a reservist is pursuing a program of education by

correspondence, VA will make a charge against entitlement for each

payment made to him or her. The charge will be made in months and

decimal fractions of a month, as determined by dividing the amount of

the payment by an amount equal to the rate stated in Sec. 21.7636(a)(1)

as the rate otherwise applicable to the reservist for full-time

training.

(5) When a reservist is pursuing a program of education partly in

residence and partly by correspondence, VA will make a charge against

entitlement--

(i) For the residence portion of the program as provided in

paragraphs (b)(1) and (b)(2) of this section; and

(ii) For the correspondence portion of the program as provided in

paragraph (b)(4) of this section.

(6) When a reservist is pursuing a program of education through

cooperative training, VA will make a charge against entitlement of .8

of a month for each month in which the reservist is receiving payment

at the rate for cooperative training. If the reservist is pursuing

cooperative training for a portion of a month, VA will make a charge

against entitlement on the basis of total elapsed time (.8 of a day for

each day of pursuit).

(Authority: 10 U.S.C. 2131(c), (d); sec. 705(a)(1), Pub. L. 98-525,

98 Stat. 2565; sec. 642(b), (d), Pub. L. 101-189, 103 Stat. 1456-

1458)

(7) When a reservist is pursuing a program of education through

flight training, VA will make a charge against entitlement at the rate

of one month for each amount equal to the monthly rate stated in

Sec. 21.7636(a)(1) as applicable for the month in which the training

occurred.

(Authority: 10 U.S.C. 16136(c))

* * * * *

6. In Sec. 21.7612, the introductory text and paragraph (a) are

revised to read as follows:

Sec. 21.7612 Programs of education combining two or more types of

courses.

An approved program may consist of courses offered by two

educational institutions concurrently, or courses offered through class

attendance and by television concurrently. An educational institution

may contract the actual training to another educational institution,

provided the course is approved by the State approving agency having

approval jurisdiction over the educational institution actually

providing the training.

(a) Concurrent enrollment. When a reservist cannot schedule his or

her complete program at one educational institution, VA may approve a

program of concurrent enrollment. When requesting such a program, the

reservist must show that his or her complete program of education is

not available at the educational institution in which he or she will

pursue the major portion of his or her program (the primary educational

institution), or that it cannot be scheduled within the period in which

he or she plans to complete his or her program. A reservist who is

limited in the types of courses he or she may pursue, as provided in

Sec. 21.7540 (b)(2) and (b)(3), may pursue courses only at an

institution of higher learning. If such a reservist cannot complete his

or her program at one institution of higher learning, VA may approve a

concurrent enrollment only if both the educational institutions the

reservist enrolls in are institutions of higher learning.

(Authority: 10 U.S.C. 2131(c), 2136(b); 38 U.S.C. 3680(g); sec.

705(a)(1), Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642, Pub. L.

101-189, 103 Stat. 1456-1458)

* * * * *

7. In Sec. 21.7620, paragraph (a) is amended by removing

``21.7520(n) of this part'' and adding, in its place,

``21.7520(b)(17)''; and paragraphs (b) and (c) are revised, and

paragraph (d) is added, to read as follows:

Sec. 21.7620 Courses included in programs of education.

* * * * *

(b) Flight training. (1) VA may pay educational assistance for an

enrollment in a flight training course when--

(i) An institution of higher learning offers the course for credit

toward the standard college degree the reservist is pursuing; or

(ii) When:

(A) The reservist is eligible to pursue flight training as provided

in Sec. 21.7540(b)(1) and (b)(3);

(B) The State approving agency has approved the course;

(C) A flight school is offering the course;

(D) The reservist's training meets the requirements of

Sec. 21.4263(b)(1);

(E) The reservist meets the requirements of Sec. 21.4263(a); and

(F) The training for which payment is made occurs after September

29, 1990.

(2) VA will not pay educational assistance for an enrollment in a

flight training course when the reservist is pursuing an ancillary

flight objective.

(Authority: 10 U.S.C. 16131, 16136(c)(1); 38 U.S.C. 3034)

(c) Independent study. (1) VA will pay educational assistance to a

reservist who is limited in the types of courses he or she may pursue,

as provided in Sec. 21.7540(b)(2) and (b)(3), for an enrollment in any

course or unit subject offered by independent study only when the

reservist is enrolled concurrently in one or more courses or unit

subjects offered by resident training.

(2) Only a reservist who meets the requirements of

Sec. 21.7540(b)(1) may be paid educational assistance for an enrollment

in an independent study course or unit subject leading to a standard

college degree without a simultaneous enrollment in a course or unit

subject offered by resident training.

(3) Except as provided in paragraph (c)(4) of this section and

subject to the restrictions found in paragraph (c)(1) of this section,

effective October 29, 1992, VA may pay educational assistance to a

reservist who is enrolled in a nonaccredited course or unit subject

offered entirely or partly by independent study only if--

(i) Successful completion of the nonaccredited course or unit

subject is required in order for the reservist to complete his or her

program of education and the reservist:

(A) Was receiving educational assistance on October 29, 1992, for

pursuit of the program of education of which the nonaccredited

independent study course or unit subject forms a part; and

(B) Has remained continuously enrolled in the program of education

of which the nonaccredited independent study course or unit subject

forms a part from October 29, 1992, to the date the reservist enrolls

in the nonaccredited independent study course or unit subject; or

(ii)(A) Was enrolled in and receiving educational assistance for

the nonaccredited independent study course or unit subject on October

29, 1992; and

(B) Remains continuously enrolled in that course or unit subject.

(4) Whether or not the reservist is enrolled will be determined by

the regularly prescribed standards and practices of the educational

institution offering the course or unit subject.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680A(a)(4); sec. 313(b),

Pub. L. 102-568, 106 Stat. 4332)

(d) Graduate study. VA will pay educational assistance for an

enrollment in a course or subject leading to a

[[Page 29304]]

graduate degree or certificate when the training occurs after November

29, 1993.

(Authority: 10 U.S.C. 16131(c))

8. In Sec. 21.7622, paragraph (f) is revised, to read as follows:

Sec. 21.7622 Courses precluded.

* * * * *

(f) Other courses. (1) A reservist who is limited in the types of

courses he or she may pursue, as provided in Sec. 21.7540(b)(2) and

(b)(3), may not receive any educational assistance for pursuit of any

of the types of training listed in Sec. 21.7540(b)(3).

(2) VA will not consider the hospital or field work phase of a

nursing course, including a course leading to a degree in nursing, to

be provided by an institution of higher learning unless--

(i) The hospital or fieldwork phase is an integral part of the

course;

(ii) Completion of the hospital or fieldwork phase of the course is

a prerequisite to the successful completion of the course;

(iii) The student remains enrolled in the institution of higher

learning during the hospital or fieldwork phase of the course; and

(iv) The training is under the direction and supervision of the

institution of higher learning.

(3) A reservist who is limited in the types of courses he or she

may pursue, as provided in Sec. 21.7540(b)(2) and (b)(3), may not

receive educational assistance for an enrollment in a course pursued

after the reservist has completed the course of instruction required

for the award of a baccalaureate degree or the equivalent evidence of

completion of study, unless the reservist is pursuing a course or

courses leading to a graduate degree or graduate certificate. Such a

reservist may receive educational assistance while pursuing a course or

courses leading to a graduate degree or graduate certificate (subject

to the restrictions in Sec. 21.7620(d)). Equivalent evidence of

completion of study may include, but is not limited to, a copy of the

reservist's transcript showing that he or she has received passing

grades in all courses needed to obtain a baccalaureate degree at the

institution of higher learning which he or she has been attending.

(4) No reservist may receive payment of educational assistance from

VA for:

(i) An audited course (see Sec. 21.4252(i));

(ii) A new enrollment in a course during a period when approval has

been suspended by a State approving agency or VA;

(iii) Pursuit of a course by a nonmatriculated student except as

provided in Sec. 21.4252(l);

(iv) An enrollment in a course at an educational institution for

which the reservist is an official of such institution authorized to

sign certificates of enrollment under 10 U.S.C. chapter 1606;

(v) A new enrollment in a course which does not meet the veteran-

nonveteran ratio requirement as computed under Sec. 21.4201; or

(vi) Except as provided in Sec. 21.7620(c), an enrollment in a

nonaccredited independent study course.

(Authority: 10 U.S.C. 16131(c), 16136(b); 38 U.S.C. 3672(a), 3676,

3680(a); sec. 642(d), Pub. L. 101-189, 103 Stat. 1458)

9. Section 21.7624 is revised, to read as follows:

Sec. 21.7624 Overcharges and restrictions on enrollments.

(a) Overcharges. VA may disapprove an educational institution for

further enrollments when the educational institution charges or

receives from a reservist tuition and fees that exceed the established

charges which the educational institution requires from similarly

circumstanced nonreservists enrolled in the same course.

(Authority: 10 U.S.C. 2136; 38 U.S.C. 3690; sec. 705(a)(1), Pub. L.

98-525, 98 Stat. 2565, 2567; secs. 642 (c), (d), 645(a)(1), Pub. L.

101-189, 103 Stat. 1457-1458)

(b) Restriction on enrollments. The provisions of Sec. 21.4202(b)

apply to any determination by VA as to whether to impose restrictions

on approval of enrollments and whether to discontinue payments to

reservists already enrolled at an educational institution.

(Authority: 10 U.S.C. 2136; 38 U.S.C. 3690(b); sec. 705(a)(1), Pub.

L. 98-525, 98 Stat. 2565, 2567; secs. 642 (c), (d), 645(a)(1), Pub.

L. 101-189, 103 Stat. 1457-1458)

10. In Sec. 21.7631, paragraph (a)(1) and the headings for

paragraphs (b) and (c) are revised, and paragraph (g) is added, to read

as follows:

Sec. 21.7631 Commencing dates.

* * * * *

(a) * * *

(1) The date the educational institution certifies under paragraph

(b) or (c) of this section.

* * * * *

(b) Certification by educational institution--course or subject

leads to a standard college degree.

* * * * *

(c) Certification by educational institution--course does not lead

to a standard college degree.

* * * * *

(g) Service Members Occupational Conversion and Training Act of

1992. If the reservist's educational assistance has been barred or has

been discontinued because the reservist is training under a job

training program for which benefits are payable to his or her employer

under the Service Members Occupational Conversion and Training Act of

1992, VA will begin or resume paying educational assistance to the

reservist effective the first day following the last date for which

benefits are payable under that Act.

(Authority: Sec. 4492(a), Pub. L. 102-484, 106 Stat. 2765-2766)

11. In Sec. 21.7635, paragraph (v) is redesignated as paragraph

(x); and paragraph (a) is revised, paragraphs (b)(3), (b)(4), and

(b)(5) are added, paragraph (r) is revised, and paragraphs (v) and (w)

are added, to read as follows:

Sec. 21.7635 Discontinuance dates.

* * * * *

(a) Death of reservist. (1) If the reservist receives an advance

payment and dies before the end of the period covered by the advance

payment, the discontinuance date of educational assistance shall be the

last date of the period covered by the advance payment.

(2) In all other cases if the reservist dies while pursuing a

program of education, the discontinuance date of educational assistance

shall be the last date of attendance.

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3680(e))

(b) * * *

(3) When a reservist withdraws from a correspondence course, VA

will terminate educational assistance effective the date the last

lesson is serviced.

(4) When a reservist withdraws from an apprenticeship or other on-

job training, VA will terminate educational assistance effective the

date of last training.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(a); sec. 705(a)(1),

Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-

189, 103 Stat. 1457-1458)

(5) When a reservist withdraws from flight training, VA will

terminate educational assistance effective the date of last

instruction.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(a); sec. 705(a)(1),

Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-

189, 103 Stat. 1457-1458)

* * * * *

(r) Completion of baccalaureate instruction. If a reservist who is

limited in the types of courses he or she may pursue, as provided in

Sec. 21.7540 (b)(2) and (b)(3), completes a course of instruction

required for the award of a

[[Page 29305]]

baccalaureate degree or the equivalent evidence of completion of study

(see Sec. 21.7622(f)), VA will discontinue educational assistance

effective the day after the date upon which the required course of

instruction was completed.

(Authority: 10 U.S.C. 2131; sec. 705(a)(1), Pub. L. 98-525, 98 Stat.

2565; secs. 642 (a), (b), (d), 645(a), (b), Pub. L. 101-189, 103

Stat. 1456-1458)

* * * * *

(v) Independent study course loses accreditation. If the reservist

is enrolled in a course offered in whole or in part by independent

study, and the course loses its accreditation (or the educational

institution 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, unless the

provisions of Sec. 21.7620 (c)(3) or (c)(4) apply.

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3680A(a)(4))

(w) Service Members Occupational Conversion and Training Act of

1992. If a reservist enters a training program for the purpose of

obtaining assistance under the Service Members Occupational Conversion

and Training Act of 1992, the effective date of discontinuance of

educational assistance shall be the date on which the reservist entered

the job training program.

(Authority: Sec. 4492(a), Pub. L. 102-484, 106 Stat. 2765-2766)

* * * * *

12. Section 21.7636 is revised, to read as follows:

Sec. 21.7636 Rates of payment.

(a) Monthly rate of educational assistance. (1) Except as otherwise

provided in this section and in Sec. 21.7639, the monthly rate of

educational assistance payable to a reservist is the amount stated in

this table:

----------------------------------------------------------------------------------------------------------------

Training time

Period of pursuit of training ---------------------------------------------------

Full-time 3/4 time 1/2 time 1/4 time

----------------------------------------------------------------------------------------------------------------

Oct. 1, 1990-Sept. 30,1991.................................. $140.00 $105.00 $70.00 $35.00

Oct. 1, 1991-Mar. 31, 1993.................................. 170.00 128.00 85.00 43.00

Apr. 1, 1993-Sept. 30, 1994................................. 190.00 143.00 95.00 48.00

Oct. 1, 1994-Sept. 30, 1995................................. 192.32 144.74 96.16 48.08

On and after Oct. 1, 1995................................... 197.90 148.42 98.95 49.47

----------------------------------------------------------------------------------------------------------------

(2) The monthly rate of basic educational assistance payable to a

reservist who is pursuing an apprenticeship or other on-job training

full time is the rate stated in these tables:

(i)

----------------------------------------------------------------------------------------------------------------

Monthly rate

---------------------------------------------------

Training period Oct. 1, Oct. 1, Apr. 1, Oct. 1,

1990-Sept. 1991-Mar. 1993-Sept. 1994-Sept.

30, 1991 31, 1993 30, 1994 30, 1995

----------------------------------------------------------------------------------------------------------------

First six months of pursuit of training..................... $105.00 $127.50 $142.50 144.24

Second six months of pursuit of training.................... 77.00 93.50 104.50 105.78

Remaining pursuit of training............................... 49.00 59.50 66.50 67.31

----------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------

Monthly rate

Training period On and after

Oct. 1, 1995

------------------------------------------------------------------------

First six months of pursuit of training................... $148.42

Second six months of pursuit of training.................. 108.94

Remaining pursuit of training............................. 69.26

------------------------------------------------------------------------

(ii) Full-time training will consist of the number of hours which

constitute the standard workweek of the training establishment, but not

less than 30 hours unless a lesser number of hours is established as

the standard workweek for the particular establishment through bona

fide collective bargaining between employers and employees.

(3) The monthly rate of educational assistance payable to a

reservist who is pursuing a cooperative course is the rate stated in

this table:

------------------------------------------------------------------------

Oct. 1, 1990- Oct. 1, 1991- Apr. 1, 1993- Oct. 1, 1994-

Sept. 30, Mar. 31, 1993 Sept. 30, Sept. 30, On and after

1991 1994 1995 Oct. 1, 1995

------------------------------------------------------------------------

$112.00...... $136.00 $152.00 $153.86 $158.32

------------------------------------------------------------------------

(Authority: 10 U.S.C. 16131(b), (c); sec. 12009(c), Pub. L. 103-66,

107 Stat. 416)

(b) Limitations on payments. VA may withhold final payment until VA

receives proof of the reservist's enrollment and adjusts the

reservist's account.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680(g))

13. In Sec. 21.7639, paragraph (b)(1) introductory text is amended

by removing the second sentence; the heading of paragraph (e) is

amended by removing ``Payment for independent'' and adding, in its

place, ``Independent''; and the section heading, paragraph (a)

introductory text, the authority citation for paragraph (a), and

paragraph (f) are revised, and paragraphs (g) through (k) are added, to

read as follows:

[[Page 29306]]

Sec. 21.7639 Conditions which result in reduced rates or no payment.

* * * * *

(a) Absences. A reservist enrolled in a course not leading to a

standard college degree will have his or her educational assistance

reduced for any day of absence which occurs before December 18, 1989,

and which exceeds the maximum allowable absences permitted in this

paragraph.

* * * * *

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680; sec. 705(a)(1), Pub.

L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-189,

103 Stat. 1457-1458)

* * * * *

(f) Independent study. (1) A reservist pursuing only independent

study and whose enrollment begins before July 1, 1993, shall be paid

educational assistance at the quarter-time rate regardless of the

number of credit hours the reservist may be pursuing.

(2) A reservist pursuing only independent study and whose

enrollment begins after June 30, 1993, shall be paid educational

assistance on the basis of his or her training time.

(3) No payments may be made to a reservist who is limited in the

types of courses he or she may pursue, as provided in

Sec. 21.7540(b)(2) and (b)(3), and who is pursuing independent study

unless he or she is concurrently pursuing one or more courses offered

through resident training at an institution of higher learning.

(Authority: 10 U.S.C. 2131; 10 U.S.C. 2136(b); 38 U.S.C. 3532, 3532

note, 3680; sec. 705(a)(1), Pub. L. 98-525, 98 Stat. 2565, 2567;

secs. 642, 645 (a), (b), Pub. L. 101-189, 103 Stat. 1457-1458)

(g) Payment for correspondence courses. A reservist who is pursuing

a correspondence course or the correspondence portion of a

correspondence-residence course shall be paid 55 percent of the

established charge which the educational institution requires

nonreservists to pay for the lessons--

(1) Which the reservist has completed;

(2) Which the educational institution has serviced; and

(3) For which payment is due.

(Authority: 10 U.S.C. 2131(f); sec. 642 (b), (d), Pub. L. 101-189,

103 Stat. 1456-1458)

(h) Failure to work sufficient hours of apprenticeship and other

on-job training. (1) For any calendar month in which a reservist

pursuing an apprenticeship or other on-job training program fails to

complete 120 hours of training, VA shall reduce the rates specified in

Sec. 21.7636(a)(2) proportionately. In this computation, VA shall round

the number of hours worked to the nearest multiple of eight.

(2) For the purpose of this paragraph, hours worked include only--

(i) The training hours the reservist worked; and

(ii) All hours of the reservist's related training which occurred

during the standard workweek and for which the reservist received

wages. (See Sec. 21.7636(a)(2)(ii) as to the requirements for full-time

training.)

(Authority: 10 U.S.C. 2131(d)(2); sec. 642 (b), (d), Pub. L. 101-

189, 103 Stat. 1456-1458)

(i) Flight training course. A reservist who is pursuing a flight

training course shall be paid 60 percent of the established charge for

tuition and fees (other than tuition and fees charged for or

attributable to solo flying hours) which the flight school requires

similarly circumstanced nonreservists enrolled in the same course to

pay.

(Authority: 10 U.S.C. 16131(g))

(j) Membership in the Senior Reserve Officers' Training Corps. A

reservist may not receive educational assistance for any period for

which he or she receives financial assistance under 10 U.S.C. 2107 as a

member of the Senior Reserve Officers' Training Corps.

(Authority: 10 U.S.C. 16134)

(k) Course not offered by an institution of higher learning or not

leading to an identifiable educational, professional, or vocational

objective. A reservist who is limited in the types of courses he or she

may pursue, as described in Sec. 21.7540(b)(2) and (b)(3), may not

receive educational assistance for instruction in a program of

education unless it is offered at an institution of higher learning.

The instruction must lead to an identifiable educational, professional,

or vocational objective, but does not have to lead to a standard

college degree.

(Authority: 10 U.S.C. 2131(b), 2136(b); sec. 705(a)(1), Pub. L. 98-

525, 98 Stat. 2565, 2567; secs. 642 (b)(1), (c), (d), 645(a), (b),

Pub. L. 101-189, 103 Stat. 1456-1458)

14. In Sec. 21.7640, paragraph (d)(1) introductory text is amended

by removing ``institution of higher learning'' and adding, in its

place, ``educational institution''; and the section heading and

paragraph (a) are revised, to read as follows:

Sec. 21.7640 Release of payments.

(a) Payments are dependent upon certifications, reports, and

verifications of pursuit. When certifications, reports, or

verifications of pursuit are mentioned in this paragraph, the

certifications, reports, and verifications of pursuit are to be made in

the form prescribed by the Secretary of Veterans Affairs.

(1) VA will pay educational assistance to a reservist who is

pursuing a standard college degree only after the educational

institution has certified his or her enrollment.

(2) VA will pay educational assistance to a reservist who is

pursuing a course not leading to a standard college degree (other than

a correspondence course, a course of flight training, or an

apprenticeship or other on-job training) only after:

(i) The educational institution has certified his or her enrollment

in the form prescribed by the Secretary of Veterans Affairs; and

(ii) VA has received a report by the reservist, which report is

endorsed by the educational institution, of--

(A) Each day of absence that occurred before December 18, 1989; or

(B) A verification of pursuit from the reservist of training that

occurred on or after December 18, 1989.

(3) VA will pay educational assistance to a reservist pursuing a

program of apprenticeship or other on-job training only after:

(i) The training establishment has certified his or her enrollment

in the training program in the form prescribed by the Secretary of

Veterans Affairs; and

(ii) VA has received certification by the reservist and the

training establishment of the reservist's hours worked.

(4) VA will pay educational assistance to a reservist who is

pursuing a correspondence course only after:

(i) The educational institution has certified his or her enrollment

in the form prescribed by the Secretary of Veterans Affairs; and

(ii) VA has received a certification by the reservist, which

certification is endorsed by the educational institution, as to the

number of lessons completed and serviced by the educational

institution.

(5) VA will pay educational assistance to a reservist who is

pursuing a flight course only after:

(i) The educational institution certifies the reservist's

enrollment in the form prescribed by the Secretary of Veterans Affairs;

and

(ii) VA has received a report by the reservist of the flight

training the reservist has completed, which report is endorsed by the

educational institution.

[[Page 29307]]

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680)

* * * * *

15. In Sec. 21.7642, paragraph (a)(6) is amended by removing ``38''

and adding, in its place, ``10''; paragraph (d)(3) is amended by

removing ``during any period that full salary is being paid to him or

her as an employee of the United States''; and paragraphs (a)(7) and

(a)(8) are revised, and paragraphs (a)(9) and (e) are added, to read as

follows:

Sec. 21.7642 Nonduplication of educational assistance.

(a) * * *

(7) Section 903 of the Department of Defense Authorization Act,

1981;

(8) The Hostage Relief Act of 1980; or

(9) The Omnibus Diplomatic Security Act of 1986.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3695; sec. 705(a)(1), Pub.

L. 98-525, 98 Stat. 2565, 2567; secs. 642(c), (d), Pub. L. 101-189,

103 Stat. 1457-1458)

* * * * *

(e) Service Members Occupational Conversion and Training Act of

1992. A reservist may not receive educational assistance under the

Montgomery GI Bill--Selected Reserve program during the period for

which benefits are payable under the Service Members Occupational

Conversion and Training Act of 1992.

(Authority: Sec. 4492(a), Pub. L. 102-484, 106 Stat. 2765-2766)

16. Section 21.7645 is added, immediately after the cross-reference

that follows Sec. 21.7644, to read as follows:

Sec. 21.7645 Work-study allowance.

(a) Eligibility. Reservists pursuing three-quarter-time or full-

time programs of education or training under 10 U.S.C. chapter 1606 are

eligible to receive a work-study allowance.

(Authority: 38 U.S.C. 3485)

(b) Selection criteria. Whenever feasible, VA will give priority in

selection for the work-study allowance to veterans with service-

connected disabilities rated at 30 percent or more. VA shall consider

the following additional selection criteria:

(1) Need of the reservist to augment his or her educational

assistance allowance;

(2) Availability to the reservist of transportation to the place

where his or her services are to be performed;

(3) Motivation of the reservist; and

(4) Compatibility of the work assignment to the reservist's

physical condition.

(Authority: 38 U.S.C. 3485)

(c) Utilization. The service for which the reservist is being paid

a work-study allowance may be utilized in connection with--

(1) Outreach services programs as carried out under the supervision

of a VA employee;

(2) Preparation and processing of necessary papers and other

documents at educational institutions or regional offices or facilities

of VA;

(3) Hospital and domiciliary care and medical treatment at VA

facilities;

(4) Activities relating to the administration of 10 U.S.C. chapter

1606 (or 10 U.S.C. chapter 106 as in effect before December 1, 1994),

at Department of Defense facilities, Coast Guard facilities, or

National Guard facilities; and

(5) Any other appropriate activity of VA.

(Authority: 38 U.S.C 3485)

(d) Rate of payment. (1) In return for the reservist's agreement to

perform services for VA totaling 25 hours times the number of weeks

contained in an enrollment period, VA will pay an allowance in an

amount equal to the higher of--

(i) The hourly minimum wage in effect under section 6(a) of the

Fair Labor Standards Act of 1938 times the number of hours the

reservist has agreed to work; or

(ii) The hourly minimum wage under comparable law of the State in

which the services are to be performed times the number of hours the

reservist has agreed to work.

(2) VA will pay proportionately less to reservists who agree to

perform a lesser number of hours of services.

(Authority: 38 U.S.C. 3485)

(e) Payment in advance. (1) For work-study commencing during the

period beginning on May 1, 1990, and ending on October 28, 1992, VA

will pay in advance an amount equal to 40 percent of the total amount

payable under the contract.

(2) For work-study commencing after October 28, 1992, VA will pay

in advance an amount equal to the lesser of the following:

(i) 40 percent of the total amount payable under the contract; or

(ii) An amount equal to 50 times the applicable minimum hourly wage

in effect on the date the contract is signed.

(Authority: 38 U.S.C. 3485)

(f) Reservist reduces rate of training. In the event the reservist

ceases to be at least a three-quarter-time student before completing an

agreement, the reservist, with the approval of the Director of the VA

field station or his or her designee, may be permitted to complete the

unworked portion of an agreement in the same term, quarter, or semester

in which the reservist ceases to be at least a three-quarter-time

student or in the immediately following term, quarter, or semester.

(Authority: 38 U.S.C. 3485)

(g) Reservist terminates training. (1) If the reservist terminates

all training before completing an agreement, the Director of the VA

field station or his or her designee--

(i) May permit him or her to complete the portion of the agreement

represented by the money VA has advanced the reservist for which he or

she has performed no service, but

(ii) Will not permit him or her to complete that portion of an

agreement for which no advance has been made.

(2) The reservist must complete the allowed portion of an agreement

in the same or immediately following term, quarter, or semester in

which the reservist terminates training.

(Authority: 38 U.S.C. 3485)

(h) Indebtedness for unperformed service. (1) If the reservist has

received an advance for hours of unperformed service, and VA has

evidence upon which the Director of the VA Regional Office of

jurisdiction or his or her designee concludes that the reservist does

not intend to perform that service, the advance--

(i) Will be deemed a debt due the United States; and

(ii) Will be subject to recovery the same as any other debt due the

United States.

(2) The amount of indebtedness for each hour of unperformed service

shall equal the hourly wage that formed the basis for the contract.

(Authority: 38 U.S.C. 3485)

17. In Sec. 21.7653, the section heading and paragraphs (c) and (d)

are revised, and paragraph (e) is added, to read as follows:

Sec. 21.7653 Progress, conduct, and attendance.

* * * * *

(c) Satisfactory attendance. In order to receive educational

assistance for pursuit of a program of education, a reservist must

maintain satisfactory course attendance. VA will discontinue

educational assistance if the reservist does not maintain satisfactory

course attendance. Attendance is unsatisfactory if the reservist does

not attend according to the regularly prescribed standards of the

educational institution in which he or she is enrolled.

[[Page 29308]]

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3474; sec. 705(a)(1), Pub.

L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-189,

103 Stat. 1457-1458)

(d) Reports. At times the unsatisfactory progress, conduct, or

course attendance of a reservist is caused by or results in his or her

interruption or termination of training. If this occurs, the

interruption or termination shall be reported in accordance with

Sec. 21.7656(a). If the reservist continues in training despite making

unsatisfactory progress, the fact of his or her unsatisfactory progress

must be reported to VA within the time allowed by paragraphs (d)(1),

(d)(2), and (d)(3) of this section.

(1) A reservist's progress may become unsatisfactory as a result of

the grades he or she receives. The educational institution shall report

such unsatisfactory progress to VA in time for VA to receive it before

the earlier of the following dates is reached:

(i) Thirty days from the date on which the school official who is

responsible for determining whether a student is making progress first

receives the final grade report which establishes that the reservist is

not progressing satisfactorily; or

(ii) Sixty days from the last day of the enrollment period during

which the reservist earned the grades that caused him or her to meet

the unsatisfactory progress standards.

(2) If the unsatisfactory progress of the reservist is caused

solely by any factors other than the grades which he or she receives,

the educational institution shall report the unsatisfactory progress in

time for VA to receive it within 30 days of the date on which the

progress of the reservist becomes unsatisfactory.

(3) The educational institution shall report the unsatisfactory

conduct or attendance of the reservist to VA in time for VA to receive

it within 30 days of the date on which the conduct or attendance of the

reservist becomes unsatisfactory.

(e) Reentrance after discontinuance. In order for a reservist to

receive educational assistance following discontinuance for

unsatisfactory progress, conduct, or attendance, the provisions of this

paragraph must be met.

(1) The reservist's subsequent reentrance into a program of

education may be for the same program, for a revised program, or for an

entirely different program, depending on the cause of the

discontinuance and removal of that cause.

(2) A reservist may reenter following discontinuance because of

unsatisfactory attendance, conduct, or progress when either of the

following sets of conditions exists:

(i) The reservist resumes enrollment at the same educational

institution in the same program of education and the educational

institution has both approved the reservist's reenrollment and

certified it to VA; or

(ii) In all other cases, VA determines that--

(A) The cause of the unsatisfactory attendance, conduct, or

progress in the previous program has been removed and is not likely to

recur; and

(B) The program which the reservist now proposes to pursue is

suitable to his or her aptitudes, interests, and abilities.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3474; sec. 705(a)(1), Pub.

L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-189,

103 Stat. 1457-1458)

(Approved by the Office of Management and Budget under control

number 2900-0552)

18. Section 21.7654 is revised, to read as follows:

Sec. 21.7654 Pursuit and absences.

(a) Verifying pursuit of courses not leading to a standard college

degree. (1) If a reservist is pursuing a course not leading to a

standard college degree and the course is neither a flight course nor a

correspondence course, the reservist must monthly verify pursuit of

that course. The reservist's verification in the form prescribed by the

Secretary will attest to the following items as to the period verified,

when applicable:

(i) Actual attendance;

(ii) Continued enrollment in and pursuit of the course;

(iii) The reservist's unsatisfactory progress, conduct, or

attendance;

(iv) Date of interruption or termination of training;

(v) Changes in the number of credit hours or in the number of clock

hours of attendance;

(vi) The award of nonpunitive grades;

(vii) Any other changes or modifications in the course as certified

at enrollment.

(2) The verification of enrollment or the verification of pursuit

and continued enrollment must--

(i) Contain the information required by paragraph (a)(1) of this

section for release of payment;

(ii) Be signed by the reservist on or after the final date of the

reporting period; and

(iii) Show the date on which it was signed.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(g); sec. 705(a)(1),

Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-

189, 103 Stat. 1457-1458)

(b) Additional requirements for apprenticeships and other on-job

training programs. (1) When a reservist is pursuing an apprenticeship

or other on-job training, he or she must monthly certify training by

reporting the number of hours worked.

(2) The information provided by the reservist must be verified by

the training establishment.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(a); sec. 705(a)(1),

Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642(c), (d), Pub. L. 101-

189, 103 Stat. 1457-1458)

(Approved by the Office of Management and Budget under control

number 2900-0553)

19. In Sec. 21.7670, paragraph (d) and reserved paragraph (e) are

removed; paragraph (f) is redesignated as paragraph (d); and the

heading, introductory text, and newly redesignated paragraph (d) are

revised to read as follows:

Sec. 21.7670 Measurement of courses leading to a standard,

undergraduate college degree.

Except as provided in Sec. 21.7672, VA will measure a reservist's

courses as stated in this section.

* * * * *

(d) Other requirements. Notwithstanding any other provision of this

section, in administering benefits payable under 10 U.S.C. chapter

1606, VA shall apply the provisions of Sec. 21.4272 (a), (b), (d), (e)

(except paragraph (e)(4)), (f), (g), and (k).

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3688(b))

20. In Sec. 21.7672, the introductory text of paragraph (b)(1) is

revised, paragraph (b)(2)(ii) is revised, paragraphs (b)(3), (b)(4),

and (b)(5) are added, and paragraph (c) introductory text, paragraph

(d), paragraph (e) introductory text, the heading of paragraph (f),

paragraph (f) introductory text, paragraph (f)(1)(iv), and the

authority citation for paragraph (f) are revised, to read as follows:

Sec. 21.7672 Measurement of courses not leading to a standard college

degree.

* * * * *

(b) Credit-hour measurement--standard method. (1) For new

enrollments that begin before July 1, 1993, VA will measure a

reservist's enrollment in a course not leading to a standard college

degree on a credit-hour basis when all conditions listed in paragraphs

(b)(1)(i) and (b)(1)(ii) of this section are met.

* * * * *

(2) * * *

(ii) Apply the provisions of Sec. 21.4272(g) if one or more of the

[[Page 29309]]

reservist's courses are offered during a nonstandard term.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3688)

(3) For new enrollments beginning on or after July 1, 1993, when a

course is offered by an institution of higher learning in residence on

a standard quarter- or semester-hour basis, VA will measure a

reservist's enrollment in a course not leading to a standard college

degree on the same credit-hour basis as courses leading to a standard

undergraduate degree, as provided in Sec. 21.7670.

(4) For new enrollments beginning on or after July 1, 1993, when a

course is offered in residence on a standard quarter- or semester-hour

basis by an educational institution which is not an institution of

higher learning, VA also will measure on a credit-hour basis as

provided in Sec. 21.7670 a reservist's enrollment in a course not

leading to a standard college degree, provided that the educational

institution requires at least the same number of clock-hours of

attendance as required in paragraph (f) of this section. If the

educational institution does not require at least the same number of

clock-hours of attendance as required in paragraph (f) of this section,

VA will not apply the provisions of Sec. 21.7670, but will measure the

course according to paragraph (f) of this section.

(5) VA will apply the provisions of Sec. 21.4272(g) to new

enrollments beginning on or after July 1, 1993, if one or more of the

reservist's courses are offered during a nonstandard term.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3688(a)(7))

(c) Credit-hour measurement--alternate method. The provisions of

this paragraph apply only to the measurement of new enrollments that

begin before July 1, 1993. Even though courses not leading to a

standard college degree do not qualify for credit-hour measurement as

provided in paragraph (b) of this section, an educational institution

offering courses not leading to a standard college degree may measure

those courses on a quarter- or semester-hour basis as indicated for

collegiate courses in Sec. 21.7670 provided--

* * * * *

(d) Mixed credit-hour and clock-hour measurement (conversion to

equivalent clock hours). The provisions of this paragraph apply to

training occurring on or after December 18, 1989, provided that if the

training resulted from a new enrollment, the enrollment began before

July 1, 1993.

(1) When a course not leading to a standard college degree in which

the reservist is enrolled cannot qualify for credit-hour measurement

under either paragraph (b) or (c) of this section, VA will measure the

course on a combined clock-hour and credit-hour basis when the

provisions of this paragraph are met.

(i) The course in which the reservist is enrolled--

(A) Is offered by an institution of higher learning; and

(B) Does not lead to a standard college degree; and

(ii) The institution of higher learning requires as part of the

reservist's program of education one or more unit subjects for which

credit is granted toward a standard college degree.

(2) When measuring a reservist's enrollment during a semester or

quarter when he or she is pursuing one or more courses which the

educational institution measures on a credit-hour basis, VA will

convert the credit to equivalent clock hours as provided in paragraph

(d)(3) of this section, and combine them with the clock hours of the

other courses measured by the school on that basis, as provided in

paragraph (d)(4) of this section.

(3) VA will--

(i) Determine the equivalent clock hour factor by dividing the

number of clock hours which constitute full time for the enrollment as

stated in paragraph (e) or (f) of this section by the number of credit

hours which constitute a full-time undergraduate enrollment at the

educational institution as stated in paragraph (a) of this section; and

(ii) Except as provided in paragraphs (d)(5) and (d)(6) of this

section, multiply the number of credit hours in which the reservist is

enrolled by the equivalent clock hour factor as determined by paragraph

(d)(3)(i) of this section. This will result in the number of equivalent

clock hours in which the reservist is enrolled.

(4) VA will add the number of clock hours in which the reservist is

enrolled to the number of equivalent clock hours in which he or she is

enrolled.

(i) If the course is nonaccredited and shop practice is an integral

part of the course, the course will be measured as provided in

paragraph (e)(1) of this section with the total number of clock hours

and equivalent clock hours considered to be clock hours for the purpose

of applying that paragraph.

(ii) If the course is nonaccredited and classroom instruction

predominates, the course will be measured as provided in paragraph

(e)(2) of this section with the total number of clock hours and

equivalent clock hours considered to be clock hours for the purpose of

applying that paragraph.

(iii) If the course is accredited and shop practice is an integral

part of the course, the course will be measured as provided in

paragraph (f)(1) of this section with the total number of clock hours

and equivalent clock hours considered to be clock hours for the purpose

of applying that paragraph.

(iv) If the course is accredited and classroom instruction

predominates, the course will be measured as provided in paragraph

(f)(2) of this section with the total number of clock hours and

equivalent clock hours considered to be clock hours for the purpose of

applying that paragraph.

(5) When the number of class sessions per credit hour is so low

that Sec. 21.4272 (f)(2)(ii) or (f)(3) would control the way in which

VA would measure those credit hours, VA will make the calculations

required by paragraph (d)(3)(ii) of this section by multiplying the

number of class sessions determined by the equivalent clock hour

factor.

(6) When the reservist is attending a nonstandard term, VA will

make the calculations required by paragraph (d)(3)(ii) of this section

by determining the equivalent credit hours in which the reservist is

enrolled as provided in Sec. 21.4272(g), and multiplying the equivalent

credit hours by the equivalent clock hour factor.

(7) In calculations required by this paragraph, fractions of an

equivalent clock hour will be dropped.

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3688(e))

(e) Nonaccredited courses--clock-hour measurement for new

enrollments beginning before July 1, 1993. The provisions of this

paragraph apply to new enrollments beginning before July 1, 1993. If,

after having examined the courses in which a reservist is enrolled, VA

concludes that the reservist's enrollment qualifies neither for credit-

hour measurement as provided in paragraphs (b) and (c) of this section

nor for a combination of credit-hour and clock-hour measurement as

provided in paragraph (d) of this section, VA shall measure a

nonaccredited course not leading to a standard college degree as

follows. For the purpose of this paragraph, clock hours and class

sessions mean clock hours and class sessions per week.

* * * * *

(f) Clock-hour measurement. The provisions of this paragraph apply

to enrollments before July 1, 1993, in accredited courses not leading

to a standard college degree, and to all new enrollments on or after

July 1, 1993, in

[[Page 29310]]

courses not leading to a standard college degree. If VA concludes that

the courses in which a reservist is enrolled qualify neither for

credit-hour measurement as provided in paragraph (b) or (c) of this

section nor for a combination of clock-hour and credit-hour measurement

as provided in paragraph (d) of this section, VA shall measure those

courses as follows. (Supervised study shall be excluded from

measurement of all courses to which this paragraph applies.)

(1) * * *

(iv) One-quarter-time training shall be 1 through 10 clock hours

attendance. For attendance of 6 through 10 clock hours, there shall be

not more than one quarter hour rest period allowance. For attendance of

1 through 5 clock hours, there shall be no rest period allowance.

* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3688)

21. In Sec. 21.7673, paragraph (a)(2) is removed; paragraph (a)(3)

is redesignated as paragraph (a)(2); and paragraph (a)(1), newly

redesignated paragraph (a)(2), and paragraph (d) are revised, to read

as follows:

Sec. 21.7673 Measurement of concurrent enrollments.

(a) * * *

(1) If VA measures the course at the primary institution on a

credit-hour basis (including a course which does not lead to a standard

college degree, which is being measured on a credit-hour basis as

provided in Sec. 21.7672(b)), and VA measures the courses at the second

school on a clock-hour basis, the clock hours will be converted to

credit hours.

(2) If VA measures the courses pursued at the primary institution

on a clock-hour basis, and VA measures the courses pursued at the

second school on a credit-hour basis, including courses which qualify

for credit-hour measurement on the basis of Sec. 21.7672(b), VA will

convert the credit hours to clock hours to determine the reservist's

training time.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3688)

* * * * *

(d) Standards for measurement the same. If VA measures the courses

pursued at both institutions on either a clock-hour basis or a credit-

hour basis, VA will measure the reservist's enrollment by adding

together the units of measurement for the courses in the second school

and the units of measurement for courses in the primary institution.

The standard for full time will be the full-time standard for the

courses at the primary institution.

(Authority 10 U.S.C. 16136(b); 38 U.S.C. 3688)

Sec. 21.7674 [Amended]

22. In Sec. 21.7674, paragraph (b) is amended by removing

``21.7720(b)(3) of this part'' and adding, in its place,

``21.7720(b)(9)'' and by removing ``21.7672 of this part'' and adding,

in its place, ``21.7672''; and paragraph (c) is amended by removing

``appropriate, if approved under Sec. 21.7720(b)(4) of this part'' and

adding, in its place, ``appropriate''.

23. In Sec. 21.7700, paragraphs (f) and (g) are removed; and the

introductory text, paragraph (a), and the authority citation are

revised, to read as follows:

Sec. 21.7700 State approving agencies.

VA and State approving agencies have the same general

responsibilities for approving courses for training under 38 U.S.C.

chapter 1606 (or 10 U.S.C. chapter 106 as in effect before December 1,

1994) as they do for approving courses for training under 38 U.S.C.

chapter 30 or 32. Accordingly, in administering 10 U.S.C. chapter 1606

(or 10 U.S.C. chapter 106 as in effect before December 1, 1994), VA

will apply the provisions of the following sections:

(a) Sec. 21.4150--Designation,

* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3670 through 3676)

24. Section 21.7720 is revised to read as follows:

Sec. 21.7720 Course approval.

(a) Courses must be approved. (1) A course of education offered by

an educational institution must be approved by--

(i) The State approving agency for the State in which the

educational institution is located; or

(ii) The State approving agency which has appropriate approval

authority; or

(iii) VA, where appropriate.

(2) In determining when approval authority rests with the State

approving agency or VA, the provisions of Sec. 21.4250 (b)(3),

(c)(2)(i), (c)(2)(ii), (c)(2)(iii), and (c)(2)(iv) apply.

(3) A course approved under 38 U.S.C. chapter 36 is approved for

purposes of 10 U.S.C. chapter 1606 (or 10 U.S.C. chapter 106 as in

effect before December 1, 1994).

(Authority: 10 U.S.C. 2131(c), 2136(b); 16131(c)(1), 16136(b); 38

U.S.C. 3672; sec. 705(a)(1), Pub. L. 98-525, 98 Stat. 2565, 2567;

sec. 642, Pub. L. 101-189, 103 Stat. 1456-1458)

(b) Course approval criteria. In administering benefits payable

under 10 U.S.C. chapter 1606 (or 10 U.S.C. chapter 106 as in effect

before December 1, 1994), VA and, where appropriate, the State

approving agencies, shall apply the following sections:

(1) Sec. 21.4250 (except paragraph (c)(1))--Approval of courses;

(2) Sec. 21.4251--Period of operation of course;

(3) Sec. 21.4253 (except those portions of paragraphs (b) and (f)

that permit approval of a course leading to a high school diploma)--

Accredited courses;

(4) Sec. 21.4254--Nonaccredited courses;

(5) Sec. 21.4255--Refund policy--nonaccredited courses;

(6) Sec. 21.4258--Notice of approval;

(7) Sec. 21.4259--Suspension or disapproval;

(8) Sec. 21.4260--Courses in foreign countries;

(9) Sec. 21.4265 (except paragraphs (a), (e), and (g))--Practical

training approved as institutional training or on-job training;

(10) Sec. 21.4266--Courses offered at subsidiary branches or

extensions; and

(11) Sec. 21.4267--Approval of independent study.

(Authority: 10 U.S.C. 16131(c)(1), 16136(b); 38 U.S.C. 3670 through

3676)

25. Section 21.7722 is revised to read as follows:

Sec. 21.7722 Courses and enrollments which may not be approved.

(a) The Secretary of Veterans Affairs may not approve an enrollment

by a reservist in, and a State approving agency may not approve for

training under 10 U.S.C. chapter 1606 (or 10 U.S.C. chapter 106 as in

effect before December 1, 1994):

(1) A bartending or personality development course;

(2) A course offered by radio;

(3) Except for enrollments in a nurse's aide course approved

pursuant to Sec. 21.4253(a)(5), an institutional course for the

objective of nurse's aide or a nonaccredited nursing course which does

not meet the licensing requirements in the State where the course is

offered; or

(4) Effective October 29, 1992, a nonaccredited course or unit

subject offered entirely or partly by independent study. However, see

Secs. 21.7620(c) and 21.7622(f) concerning payment of educational

assistance to reservists enrolled in such a course.

(Authority: 10 U.S.C. 16131(c)(1), 16136(b); 38 U.S.C. 3452)

(b) A State approving agency (or VA when acting as a State

approving agency) may approve the following courses for training under

10 U.S.C. chapter 1606 (or 10 U.S.C. chapter 106

[[Page 29311]]

as in effect before December 1, 1994), but VA may not approve an

enrollment in any of these courses by a reservist who is limited in the

types of courses he or she may pursue, as provided in Sec. 21.7540

(b)(2) and (b)(3):

(1) A correspondence course;

(2) A cooperative course;

(3) An apprenticeship or other on-job training program;

(4) A nursing course offered by an autonomous school of nursing;

(5) A medical or dental specialty course not offered by an

institution of higher learning;

(6) A refresher, remedial, or deficiency course; or

(7) A course or combination of courses consisting solely of

independent study.

(Authority: 10 U.S.C. 2131(c), 2136(b), 16131(c)(1), 16136(b); 38

U.S.C. 3670 through 3676; sec. 705(a)(1), Pub. L. 98-525, 98 Stat.

2565, 2567; sec. 642, Pub. L. 101-189, 103 Stat. 1456-1458)

[FR Doc. 96-14369 Filed 6-7-96; 8:45 am]

BILLING CODE 8320-01-P