Veterans Education: Implementation of the Veterans' Benefits Act of 1992, the National Defense Authorization Act for Fiscal Year 1993, and the National Defense Authorization Act for Fiscal Year 1994

Federal RegisterFeb 22, 1996

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AG22

Veterans Education: Implementation of the Veterans' Benefits Act

of 1992, the National Defense Authorization Act for Fiscal Year 1993,

and the National Defense Authorization Act for Fiscal Year 1994

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the educational assistance and

educational benefits regulations of the Department of Veterans Affairs

(VA). It makes changes concerning eligibility requirements for

educational assistance and benefits, rates of payment for educational

assistance, measurement of training time, approval of various types of

courses, and educational death benefits. These changes restate

statutory requirements and set forth VA's statutory interpretations.

DATES: This final rule is effective February 22, 1996. However, the

restatements of statute and VA's statutory interpretations contained in

this final rule will be applied retroactively from the effective dates

of the statutory provisions. For more information concerning the

application of statutes and statutory interpretations, see the

SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT:

June C. Schaeffer, Assistant Director for Policy and Program

Administration, Education Service, Veterans Benefits Administration,

202-273-7187.

SUPPLEMENTARY INFORMATION: Regulations concerning VA-administered

educational assistance and educational benefits are contained in 38 CFR

Part 21. The Veterans' Benefits Act of 1992 (Pub. L. 102-568) amends

educational assistance provisions under the Montgomery GI Bill--Active

Duty and amends other provisions that affect work-study under the

Survivors' and Dependents' Educational Assistance program. The National

Defense Authorization Act for Fiscal Year 1993 (Pub. L. 102-484) and

the National Defense Authorization Act for Fiscal Year 1994 (Pub. L.

103-160) also amend provisions concerning educational assistance under

the Montgomery GI Bill--Active Duty. This document contains a number of

changes to the regulations which merely reflect certain changes made by

these public laws. These changes to the regulations are as follows.

Under Pub. L. 102-568, the limit on the amount of money that VA can

pay in advance on a work-study contract has been changed. Formerly,

that limit was 40 percent of the total amount payable under the

contract. Now the limit is the lesser of 40 percent of the total amount

payable under the contract or 50 times the applicable minimum hourly

wage in effect on the date the contract is signed. Changes are made to

38 CFR 21.3145 and 21.7145 to reflect these statutory provisions.

Pub. L. 102-484 includes the Service Members Occupational

Conversion and Training Act (SMOCTA) (sec. 4481 through 4497, Pub. L.

102-484), which forbids receipt of educational assistance under any of

the education programs administered by VA when the veteran,

servicemember, or other eligible person is participating in a job

training program under SMOCTA. Revisions are made to 38 CFR 21.4131,

21.4135, 21.7131, and 21.7135 to reflect these statutory provisions.

Pub. L. 102-568 provides for later ending dates when the veteran

dies during the period covered by an advance payment of educational

assistance. Prior to the effective date of Pub. L. 102-568, educational

assistance was terminated effective the date the veteran died. However,

Pub. L. 102-568 provides that in the event of a death, the effective

date of the termination will be the last date covered by the advance

payment. Revisions are made to 38 CFR 21.4135 and 21.7135 to reflect

these statutory provisions.

Pub. L. 102-568 prohibits State approving agencies from approving

for VA educational assistance a course of education that includes

nonaccredited independent study. It also prohibits VA from approving an

enrollment in an independent study course unless the course is

accredited and leads to a standard college degree. Revisions are made

to 38 CFR 21.4252, 21.7120, 21.7122, 21.7220 and 21.7222 to reflect

these statutory changes. However, under Pub. L. 102-568 these

prohibitions do not apply to any person receiving educational

assistance for pursuit of an independent study program in which the

person was enrolled on the date of enactment of Pub. L. 102-568

(October 29, 1992) who remains ``continuously * * * enrolled'' and

otherwise meets the requirements for eligibility for such assistance in

effect on October 29, 1992. Revisions are made to Secs. 21.4252 and

21.7120 to restate these statutory provisions. Also, the following

definition of ``continuously enrolled'' is added to 38 CFR 21.7020 to

interpret what constitutes ``continuously enrolled'':

[[Page 6781]]

The term continuously enrolled means being in an enrolled status

at an educational institution for each day during the school year,

and for consecutive school years. 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 school year

(e.g., summer sessions).

The Congress did not indicate that a special meaning other than the

common meaning was intended for ``continuously enrolled.'' Therefore,

we have concluded that the Congress intended that we interpret

``continuously enrolled'' consistent with its common meaning and we

have formulated the definition of ``continuously enrolled'' in

accordance with our understanding of the Congressional intent.

Pub. L. 102-568 repealed the special provisions for determining

students' training time while enrolled in independent study, thereby

making the determination of this training time the same as that for

resident training. Consequently, the monthly rates for educational

assistance for independent study and for resident study are based on

the same formula. This eliminates the basis for the provisions in 38

CFR 21.4280 governing independent study course measurement. To reflect

these statutory changes, rules dealing with the approval of independent

study courses are set forth at 38 CFR 21.4267, and 38 CFR 21.4280 is

removed.

Pub. L. 102-568 provides that nonaccredited courses not leading to

a standard college degree will be measured for purposes of determining

training time the same as for accredited courses that are neither

leading to a standard college degree nor offered by an institution of

higher learning. Pub. L. 102-568 also provides that when an institution

of higher learning offers a course that does not lead to a standard

college degree, the students' training time will be determined in the

same manner as for students enrolled in undergraduate courses leading

to a college degree. 38 CFR 21.4271 is removed and revisions are made

to 38 CFR 21.4233, 21.4270, and 21.4272 to reflect these statutory

provisions.

Prior to the effective date of Pub. L. 102-568, nurse's aide

courses could not be approved for VA training, and consequently VA

educational assistance could not be awarded for such training. Pub. L.

102-568 provides criteria for approving some nurse's aide courses.

Changes are made to 38 CFR 21.4265 to reflect this statutory change.

Pub. L. 102-568 changes the criteria for establishing eligibility

for educational assistance under the Montgomery GI Bill--Active Duty,

including detailed changes concerning continuous active duty, service

in the selected reserve, character of service for retirees, and

voluntarily discharged veterans. Accordingly, changes are made to 38

CFR 21.7020, 21.7032, 21.7042, 21.7044, 21.7045, and 21.7050 to reflect

these statutory changes.

Prior to the effective date of Pub. L. 102-568, a death benefit was

payable to survivors of participants in the Montgomery GI Bill--Active

Duty only if the participant died while on active duty. Pub. L. 102-568

now also permits payment of the death benefit if the participant dies

within a year of discharge from active duty. Accordingly, revisions are

made to 38 CFR 21.7280 to reflect this statutory change.

Pub. L. 102-568 also made changes to 38 U.S.C. 3015 concerning the

monthly rates of educational assistance which VA is to pay to veterans

and servicemembers pursuing a full-time program of education under the

Montgomery GI Bill--Active Duty. The final rule changes these rates in

38 CFR 21.7136 and 21.7137 to reflect these statutory changes. These

changes to Secs. 21.7136 and 21.7137 also have the effect of changing

the rates for part-time training, cooperative training, and

apprenticeship and other on-job training. 38 U.S.C. 3032 provides

formulas to determine the monthly rates for those students pursuing

cooperative training and those in apprenticeships and other on-job

training. 38 U.S.C. 3015(a) and (b) further state that the monthly

rates of educational assistance to be paid to part-time students

receiving benefits under the Montgomery GI Bill--Active Duty is to be

determined by regulations prescribed by the Secretary of Veterans

Affairs. The formula for part-time rates was established based on

proposed and final rule making (see 52 FR 25736, July 8, 1987; 53 FR

1756, Jan. 22, 1988). Under this formula, monthly rates for three-

quarter-time and one-half-time students have been set at three-quarters

and one-half of the statutory full-time rate respectively. The monthly

rates payable for less than one-half-time students are the pro-rated

amount of their tuition and fees (not to exceed one-half the statutory

full-time rate for those training less than one-half time and more than

one-quarter time, and not to exceed one-quarter of the full-time rate

for those training one-quarter time).

In addition, this final rule contains an interpretative rule with

respect to how the statutory requirements for accreditation of an

independent study course applies when there is a loss of accreditation.

If an independent study course loses its accreditation (or the

educational institution offering the course loses its accreditation),

it is our view that VA is required under the statutes controlling the

Montgomery GI Bill--Active Duty and Survivors' and Dependents'

Educational Assistance programs, as amended by Pub. L. 102-568, to

discontinue payments for such a course effective the date of the loss

of accreditation. The regulations are amended by adding 38 CFR

21.4135(x) and 21.7135(z) to accomplish this purpose.

This final rule also makes nonsubstantive changes for clarity or to

reflect statutory recodification changes.

The restatements of statute and statutory interpretations contained

in this final rule will be applied retroactively from the effective

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

changes made by this document (and for certain of the nonsubstantive

changes made for clarity or to reflect statutory recodification

changes) are as follows:

October 19, 1984: 38 CFR 21.7020(b)(5), 21.7020(b)(6)(i), and

21.7020(b)(6)(ii).

June 30, 1985 (to apply to training received after August 31,

1993): Sec. 21.7136(a)(2)(ii)(C).

June 30, 1985 (to apply to training received after September 30,

1993): Secs. 21.7020(b)(6)(iii), 21.7020(b)(6)(iv), and 21.7072(b).

October 28, 1986: Secs. 21.7044(a), 21.7044(b)(12), and 21.7050(b).

December 1, 1988: Sec. 21.7042(c).

October 23, 1992: Secs. 21.4131(i), 21.4135(aa), 21.7032(a),

21.7032(f), 21.7042(b), 21.7042(f), 21.7045 (except (a)(1)(i)),

21.7131(j), 21.7135(aa), 21.7136 introductory text, 21.7136(a)(1) (as

redesignated), 21.7136(a)(2)(ii)(B) (as redesignated), and 21.7136(f)

(as redesignated); and the redesignations of paragraphs (a), (b),

(b)(1), (b)(2), (b)(3), (c), (d), and (e) of Sec. 21.7136.

October 29, 1992: Secs. 21.3145, 21.4135(a), 21.4135(x),

21.4234(a), 21.4252(g), 21.4253(a), 21.4254(d), 21.4265(b), 21.4267,

21.7020(b)(42), 21.7042(a), 21.7120(d), 21.7122(e), 21.7135(a),

21.7135(z) (as added), 21.7145, 21.7152, 21.7220, 21.7222, and 21.7280;

the redesignation of Sec. 21.7135(z); and the removal of Sec. 21.4280.

April 1, 1993: Secs. 21.7136(b) (as redesignated), 21.7136(c) (as

redesignated), and 21.7137.

July 1, 1993 (to apply to enrollments for terms, semesters, or

quarters that begin after June 30, 1993): Secs. 21.4233(b), 21.4270(a),

21.4270(b), 21.4270(c)

[[Page 6782]]

footnote 1, 21.4272 introductory text, 21.4272(g), 21.7170, 21.7172(a)

and 21.7172(d); and the removal of Secs. 21.4271, 21.4272(e),

21.4272(f), 21.4272(h), and 21.4272(i).

November 30, 1993: Secs. 21.7044(b)(8) and 21.7045(a)(1)(i).

The Secretary of Veterans Affairs hereby certifies that this final

rule will not have a significant economic impact on a substantial

number of small entities as they are defined in the Regulatory

Flexibility Act, 5 U.S.C. 601-612. This final rule merely restates

statutory changes, sets forth statutory interpretations, and makes

nonsubstantive changes. 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.

This final rule has been reviewed by the Office of Management and

Budget pursuant to the provisions of Executive Order 12866.

The Catalog of Federal Domestic Assistance numbers for the

programs affected by this final rule are 64.117 and 64.120.

List of Subjects in 38 CFR Part 21

Civil rights, Claims, Education, Grant programs-education, Loan

programs-education, Reporting and recordkeeping requirements, Schools,

Veterans, Vocational education, Vocational rehabilitation.

Approved: July 17, 1995.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set out in the preamble, 38 CFR part 21, subparts

C, D, and K are amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart C--Survivors' and Dependents' Educational Assistance Under

38 U.S.C. Chapter 35

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

as follows:

Authority: 38 U.S.C. 501(a); 38 U.S.C. 3500-3566, unless

otherwise noted.

2. In Sec. 21.3145, paragraph (e) is revised to read as follows:

Sec. 21.3145 Work-study allowance.

* * * * *

(e) Payment in advance. VA will pay in advance an amount equal to

the lesser of the following:

(1) 40 percent of the total amount payable under the contract, or

(2) 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, 3537)

* * * * *

Subpart D--Administration of Educational Benefits; 38 U.S.C.

Chapters 34, 35, and 36

3. The authority citation for part 21, subpart D is revised to read

as follows:

Authority: 38 U.S.C. 501(a); 38 U.S.C. ch. 34, 35, 36, unless

otherwise noted.

4. In Sec. 21.4131, paragraph (i) is added, to read as follows:

Sec. 21.4131 Commencing dates.

* * * * *

(i) Service Members Occupational Conversion and Training Act of

1992. If the veteran's or eligible person's educational assistance has

been discontinued because the veteran or eligible person 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, VA will determine the date upon which educational

assistance may be resumed as follows.

(1) When the veteran or eligible person is pursuing a program of

education on the last date for which benefits are payable under that

Act, payments will be resumed on the day following that date.

(2) When the veteran or eligible person is not pursuing a program

of education on the last date for which benefits are payable under that

Act, payments will be resumed on the earliest date otherwise provided

by this section, but not before the 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)

* * * * *

5. In Sec. 21.4135, paragraph (a) is revised; an authority citation

to paragraph (a) is added; and paragraphs (x) and (aa) and their

authority citations are added, to read as follows:

Sec. 21.4135 Discontinuance dates. * * *

(a) Death of veteran or eligible person. (1) If the veteran or

eligible person receives an advance payment pursuant to 38 U.S.C.

3680(d) and dies before the period covered by the advance payment ends,

the discontinuance date of educational assistance shall be the last

date of the period covered by the advance payment.

(2) In all other cases if the veteran or eligible person dies while

pursuing a program of education, the discontinuance date of educational

assistance shall be the last date of attendance.

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

* * * * *

(x) Independent study course loses accreditation. Except as

otherwise provided in Sec. 21.4252(g), if the veteran or eligible

person 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.

(Authority: 38 U.S.C. 3672, 3676, 3680A(a))

* * * * *

(aa) Service Members Occupational Conversion and Training Act of

1992. If an individual 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 individual

entered the job training program.

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

6. In Sec. 21.4233, paragraphs (b)(4), (b)(1), (b)(2) and (b)(3)

are redesignated as paragraphs (b)(1), (b)(2), (b)(3) and (b)(4),

respectively; paragraph (b)(5) is amended by removing

``Sec. 21.4270(a), footnote 6'' and adding, in its place,

``Sec. 21.4270(b)''; and newly redesignated paragraphs (b)(1) and

(b)(2) are revised, to read as follows:

Sec. 21.4233 Combination. * * *

(b) Concurrent enrollment. * * *

(1) If VA measures the courses pursued at both institutions on

either a clock-hour basis or a credit-hour basis, VA will measure the

veteran's or eligible person's enrollment by adding together the units

of measurement in the second school to the units of measurement for the

courses in the primary institution. The standard for full time will be

the full-time standard for the courses at the primary institution.

(2) Where the standards for measurement of the courses pursued

concurrently in the two schools are different, VA will measure the

veteran's or eligible person's enrollment by converting the units of

measurement for courses in the second school to the equivalent in value

expressed in units of measurement required for the courses in the

program of education which the veteran or eligible person is pursuing

at the primary institution.

(Authority: 38 U.S.C. 3688)

* * * * *

[[Page 6783]]

7. In Sec. 21.4234, paragraphs (a)(2)(ii) and (a)(2)(iii) are

revised, and paragraph (a)(2)(iv) is added, to read as follows:

Sec. 21.4234 Change of program.

(a) Definition. * * *

(2) * * *

(ii) A change in the individual's educational, professional or

vocational objective following the successful completion of the

immediately preceding program of education,

(iii) A return to the individual's prior program of education

following a change of program if the individual resumes training in the

program without any loss of credit or standing in that program, or

(iv) An enrollment in a new program of education when that program

leads to a vocational, educational or professional objective in the

same general field as the immediately preceding program of education.

(Authority: 38 U.S.C. 3691)

* * * * *

8. In Sec. 21.4252, paragraph (g) and its authority citation are

added, to read as follows:

Sec. 21.4252 Courses precluded.

* * * * *

(g) Independent study. (1) Effective October 29, 1992, VA may pay

educational assistance to a veteran 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 veteran to complete his or her

program of education; and the veteran--

(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 that program of education

from October 29, 1992, to the date the veteran enrolls in the

nonaccredited independent study course or unit subject; or

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

nonaccredited independent study course or unit subject on October 29,

1992, and remains continuously enrolled in that course or unit subject.

(2) Whether or not the veteran is enrolled will be determined by

the regularly prescribed standards and practices of the educational

institution.

(Authority: 38 U.S.C. 3680A; sec. 313(b), Pub. L. 102-568, 106 Stat.

4331-4332)

* * * * *

9. In Sec. 21.4253, paragraph (a)(3) is revised and paragraph

(a)(5) and an authority citation for paragraph (a) are added, to read

as follows:

Sec. 21.4253 Accredited courses.

(a) General. * * *

(3) The course is conducted under the Act of February 23, 1917 (20

U.S.C. 11 et seq.).

* * * * *

(5) The course is approved by the State as meeting the requirement

of regulations prescribed by the Secretary of Health and Human Services

under sections 1819(f)(2)(A)(i) and 1919(f)(2)(A)(i) of the Social

Security Act (42 U.S.C.1395i-3(f)(2)(A)(i) and 1396r(f)(2)(A)(i)).

(Authority: 38 U.S.C. 3675(a))

* * * * *

10. In Sec. 21.4254, paragraph (d) and its authority citation are

added, to read as follows:

Sec. 21.4254 Nonaccredited courses.

* * * * *

(d) Limitations on course approval. Notwithstanding any other

provision of this section, a State approving agency shall not approve a

nonaccredited course if it is to be pursued in whole or in part by

independent study.

(Authority: 38 U.S.C. 3676(e))

11. In Sec. 21.4265, paragraph (b)(3) is revised and an authority

citation is added, to read as follows:

Sec. 21.4265 Practical training approved as institutional training or

on-job training.

* * * * *

(b) Nursing courses.

* * * * *

(3) Except for enrollment in a nurse's aide course approved

pursuant to Sec. 21.4253(a)(5), VA shall not approve an enrollment in a

nonaccredited nursing course which does not meet the licensing

requirements of the State where the course is offered.

(Authority: 38 U.S.C. 3452, 3688)

* * * * *

12. In subpart D, a new Sec. 21.4267 and its authority citations

are added, to read as follows:

Sec. 21.4267 Approval of independent study.

(a) Overview. Except as provided in Secs. 21.4252(g), 21.7120(c),

and 21.7622(f), VA may not pay educational assistance for a

nonaccredited course which is offered in whole or in part by

independent study. Hence, it is necessary to differentiate independent

study from similar courses.

(Authority: 38 U.S.C. 3014, 3672, 3676(e), 3680A(a))

(b) Definition of independent study. (1) VA considers a course to

be offered entirely by independent study when--

(i) It consists of a prescribed program of study with provision for

interaction either by mail, telephone, or personally between the

student and the regularly employed faculty of the university or

college;

(ii) It is offered without any regularly scheduled, conventional

classroom or laboratory sessions; and

(iii) It is not a course listed in paragraph (c), (d), or (e) of

this section.

(2) VA considers a course to be offered in part by independent

study when--

(i) It is an undergraduate course;

(ii) It is not classified as one of the three types of courses

listed in paragraph (c) of this section;

(iii) It has some weeks when standard class sessions are scheduled;

and

(iv) It consists of independent study as defined in paragraph

(b)(1) of this section during those weeks when there are no regularly

scheduled class sessions.

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

(c) Scope of independent study. VA does not consider any of the

following courses to be courses offered by independent study.

(1) A cooperative course as defined in Sec. 21.4233(a);

(2) A farm cooperative course; or

(3) A course approved as a correspondence course.

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

(d) Undergraduate resident training. VA considers the following

undergraduate courses to be resident training.

(1) A course which meets the requirements for resident

institutional training found in Sec. 21.4265(f);

(2) A course which requires regularly scheduled, standard class

sessions at least once every two weeks and which has a total number of

class sessions equal to the number of credit hours awarded for the

course, times the number of weeks in a standard quarter or semester, as

applicable;

(3) A course of student teaching; and

(4) Flight training which is an integral part of a standard

undergraduate college degree.

(e) Graduate resident training. VA considers a graduate course to

be resident training if the course--

(1) Is offered through regularly scheduled, conventional classroom

or laboratory sessions; or

(2) Consists of research (either on campus or in absentia)

necessary for the preparation of the student's--

[[Page 6784]]

(i) Master's thesis,

(ii) Doctoral dissertation, or

(iii) Similar treatise which is prerequisite to the degree being

pursued; or

(3) Consists of a combination of training as described in

paragraphs (e)(1) and (e)(2) of this section.

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

13. In Sec. 21.4270, paragraphs (a) and (b) and footnote 1 to the

table in paragraph (c) are revised, to read as follows:

Sec. 21.4270 Measurement of courses.

(a) Measurement of trade, technical, and high school courses.

Trade, technical, high school, and high school preparatory courses

shall be measured as stated in this paragraph.

(1) Trade and technical courses. (i) Except as provided in

paragraph (b) of this section, if shop practice is an integral part of

a trade or technical course not leading to a standard college degree--

(A) A full-time enrollment is 22 clock hours per week (exclusive of

supervised study) with not more than 2\1/2\ hours rest period

allowance;

(B) A three-quarter-time enrollment is 16 through 21 clock hours

per week (exclusive of supervised study) with not more than 2 hours

rest period allowance;

(C) A one-half-time enrollment is 11 through 15 clock hours per

week (exclusive of supervised study) with not more than 1\1/4\ hours

rest period allowance;

(D) A less than one-half-time but more than one-quarter-time

enrollment is 6 through 10 clock hours per week (exclusive of

supervised study) with not more than \3/4\ hour rest period allowance;

and

(E) A quarter-time enrollment is 1 through 5 clock hours per week

(exclusive of supervised study).

(ii) Except as provided in paragraph (b) of this section, if theory

and class instruction constitute more than 50 percent of the required

hours in a trade or technical course not leading to a standard college

degree, enrollments will be measured as follows. In measuring net

instruction there will be included customary intervals not to exceed 10

minutes between classes. Shop practice and rest periods are excluded.

Supervised instruction periods in a school's shops and the time

involved in field trips and group instruction may be included in

computing the clock hour requirements.

(A) A full-time enrollment is 18 clock hours net instruction per

week (exclusive of supervised study);

(B) A three-quarter-time enrollment is 13 through 17 clock hours

net instruction per week (exclusive of supervised study);

(C) A one-half-time enrollment is 9 through 12 clock hours net

instruction per week (exclusive of supervised study);

(D) A less than one-half-time but more than one-quarter-time

enrollment is 5 through 8 clock hours net instruction per week

(exclusive of supervised study); and

(E) A quarter-time enrollment is 1 through 4 clock hours net

instruction per week (exclusive of supervised study).

(2) High school courses. If a student is pursuing high school

courses at a rate which would result in an accredited high school

diploma in four ordinary school years, VA considers him or her to be

enrolled full time. Otherwise, for high school enrollments, training

time will be determined as follows. (For the purpose of this paragraph,

a unit is not less than one hundred and twenty 60-minute hours or the

equivalent of study in any subject in one academic year.)

(i) A full-time enrollment is 18 clock hours net instruction per

week or four units per year or the equivalent;

(ii) A three-quarter-time enrollment is 13 through 17 clock hours

net instruction per week or three units per year or the equivalent;

(iii) A one-half-time enrollment is 9 through 12 clock hours net

instruction per week or two units per year or the equivalent;

(iv) A less than one-half-time but more than one-quarter-time

enrollment is 5 through 8 clock hours net instruction per week or one

unit per year or the equivalent; and

(v) A one-quarter-time enrollment is 1 through 4 clock hours net

instruction per week.

(3) Elementary school. For a high school preparatory course pursued

at the elementary school level--

(i) A full-time enrollment is 18 clock hours net instruction per

week;

(ii) A three-quarter-time enrollment is 13 through 17 clock hours

net instruction per week;

(iii) A one-half-time enrollment is 9 through 12 clock hours net

instruction per week;

(iv) A less than one-half-time but more than one-quarter-time

enrollment is 5 through 8 clock hours net instruction per week; and

(v) A one-quarter-time enrollment is 1 through 4 clock hours per

week.

(Authority: 38 U.S.C. 3688(a))

(b) Measurement of non-college degree courses offered by

institutions of higher learning. (1) Notwithstanding the provisions of

paragraph (a)(1) of this section, if a student is enrolled in a course

which is not leading to a standard college degree and which is offered

by an institution of higher learning, VA will measure his or her

enrollment in the same manner as collegiate undergraduate courses are

measured according to the provisions of paragraph (c) of this section.

(2) Notwithstanding the provisions of paragraph (a)(1) of this

section, if a student is enrolled in a course not leading to a standard

college degree which is offered on a standard quarter- or semester-hour

basis by an educational institution which is not an institution of

higher learning, VA shall measure his or her enrollment in the same

manner as collegiate undergraduate courses are measured according to

the provisions of paragraph (c) of this section, provided that the

educational institution requires at least the same minimum number of

hours of weekly attendance as are required by paragraph (a)(1) of this

section for courses offered on a clock-hour basis. If the educational

institution does not require at least the same minimum number of hours

of weekly attendance as are required in paragraph (a)(1) of this

section, VA will not apply the provisions of paragraph (c) of this

section, but will measure the course according to the criteria in

paragraph (a)(1) of this section.

(Authority: 38 U.S.C. 3688(a)(7))

(c) Collegiate graduate, professional and on-the-job training

courses. * * *

\1\ Cooperative courses may be measured on a full-time basis

only.

* * * * *

14. Section 21.4271 is removed and reserved.

15. In Sec. 21.4272, paragraphs (e), (f), (h), and (i) are removed

and reserved; and the introductory text and paragraph (g)(3) are

revised, to read as follows:

Sec. 21.4272 Collegiate course measurement.

VA will measure a college level course in an institution of higher

learning on a credit-hour basis provided all the conditions under

paragraph (a) or (b) of this section are met. See also Sec. 21.4273.

(Authority: 38 U.S.C. 3688)

* * * * *

(g) Course measurement; nonstandard terms. * * *

(3) The quotient resulting from the use of the formula is called

equivalent credit hours. VA treats equivalent credit hours as credit

hours for measurement purposes.

[[Page 6785]]

(Authority: 38 U.S.C. 3688(b))

* * * * *

16. Section 21.4280 is removed and reserved.

Subpart K--All Volunteer Force Educational Assistance Program (New

GI Bill)

17. The authority citation for part 21, subpart K is revised to

read as follows:

Authority: 38 U.S.C. 501(a); 38 U.S.C. ch. 30, unless otherwise

noted.

18. In Sec. 21.7020, paragraphs (b)(5) and (b)(6) are revised, and

paragraph (b)(42) is added, to read as follows:

Sec. 21.7020 Definitions.

* * * * *

(b) Other definitions. * * *

(5) Break in service. (i) Except as provided in paragraph

(b)(5)(ii) of this section, the term break in service means a period of

more than 90 days between the date when an individual is released from

active duty or otherwise receives a complete separation from active

duty service and the date he or she reenters on active duty.

(ii) A period during which an individual is assigned full time by

the Armed Forces to a civilian institution for a course of education

substantially the same as established courses offered to civilians is

not a break in service.

(Authority: 38 U.S.C. 3011, 3021)

(6) Continuous active duty. (i) The term continuous active duty

means active duty served without interruption. An interruption in

service will only be found when the individual receives a complete

separation from active duty.

(ii) A period during which an individual on active duty is assigned

full time by the Armed Forces to a civilian institution for a course of

education substantially the same as established courses offered to

civilians will not interrupt the continuity of the individual's active

duty.

(iii) If an individual, during his or her initial obligated period

of active-duty service, is separated from active duty to pursue a

course of education at a service academy or a post-secondary school

preparatory to enrollment at a service academy, no interruption in

service will be found and the individual's service will be considered

continuous active-duty service, provided he or she--

(A) Commences pursuit of a course of education at a service academy

or post-secondary school,

(B) Fails to complete the course of education, and

(C) Immediately reenters on a period of active duty.

(iv) An individual who is discharged or released from active duty

for a reason stated in paragraph (b)(6)(iv) of this section after

serving not more than 12 months of his or her initial obligated period

of active duty, and who subsequently reenlists or reenters on a period

of active duty, will not be considered to have an interruption in

service. Except as provided in paragraph (b)(6)(v) of this section, the

individual's service during the two periods will be considered

continuous active-duty service for the aggregate length of the two

service periods. However, the individual's discharge or release from

the initial obligated period of service must have been:

(A) For a service-connected disability,

(B) For a medical condition which preexisted such active-duty

service and is not service connected,

(C) For a physical or mental condition not characterized as a

disability and not resulting from the individual's own willful

misconduct which interfered with the individual's performance of duty

as determined by the Secretary concerned, or

(D) Involuntary, for the convenience of the Government as a result

of a reduction in force as determined by the Secretary concerned.

(v) If the second period of active-duty service referred to in

paragraph (b)(6)(iv) of this section is of such nature or character

that, when aggregated with the initial period of service referred to in

that paragraph, it would cause the individual to be divested of

entitlement to educational assistance otherwise established by the

initial period of active duty, the two periods of service will not be

aggregated and will not be considered a single period of continuous

active duty.

(vi) Time lost will not be considered to interrupt the continuity

of service. For the purpose of this section, ``time lost'' includes

excess leave, noncreditable time and not-on-duty time.

(Authority: 38 U.S.C. 3011, 3012)

* * * * *

(42) Continuously enrolled. The term continuously enrolled means

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

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

year (e.g., summer sessions).

(Authority: Sec. 313(b), Pub. L. 102-568, 106 Stat. 4333)

19. In Sec. 21.7032, paragraph (a) and its authority citation are

revised and paragraph (f) and its authority citation are added, to read

as follows:

Sec. 21.7032 Time limits.

(a) Scope of this section. The provisions of this section are

applicable to original applications, formal or informal; to reopened

claims; and, to the extent indicated in paragraph (f) of this section,

to elections to receive educational assistance under 38 U.S.C. chapter

30.

(Authority: 38 U.S.C. 3018B, 3034(a), 3471)

* * * * *

(f) Time limit for completing certain elections. An individual who

seeks to establish eligibility to receive educational assistance under

Sec. 21.7045 must--

(1) Within one year of the date of the VA letter or other written

notice to the individual indicating that additional evidence is needed

in order to complete the claim, submit that evidence to VA. This time

limit may be extended if the individual is able to show good cause for

an extension of the period to the date on which he or she actually

submits the additional evidence; and

(2) Submit the $1,200 VA is required pursuant to Sec. 21.7045(c)(2)

to collect before educational assistance can be awarded. A delay in

submitting the $1,200 may result in a later effective date for the

award to the individual, and in no event will VA accept payment of the

$1,200 from the individual after the last date of eligibility as

determined by Sec. 21.7050 or Sec. 21.7051. See Sec. 21.7131(k).

(Authority: 38 U.S.C. 3018B)

20. In Sec. 21.7042, the introductory text of paragraph (b)(7)(i)

is amended by removing ``as'' and adding, in its place, ``a'' and by

removing ``relesed'' and adding, in its place, ``released''; the

introductory text of paragraph (c)(3)(ii) is amended by removing ``the

individual is'' and adding, in its place, ``have been''; paragraph

(f)(1) is amended by removing ``in Sec. 21.7045(b)'' and adding, in its

place, ``in Sec. 21.7045(b) or (c)''; and the introductory text of

paragraph (a)(3) is revised, paragraph (a)(6) and its authority

citation and paragraph (b)(7)(iii) are added, the introductory text of

paragraph (c)(3) is revised, paragraphs (c)(3)(i), (c)(3)(iii)(A), and

(c)(3)(iii)(B) are revised, and paragraph (c)(3)(iii)(C) is added, to

read as follows:

Sec. 21.7042 Basic eligibility requirements.

* * * * *

(a) Eligibility based solely on active duty. * * *

(3) Except as provided in paragraph (a)(6) of this section, the

individual before completing the service

[[Page 6786]]

requirements of this paragraph must either--

* * * * *

(6) An individual who does not meet the requirements of paragraph

(a)(3) of this section nevertheless is eligible for basic educational

assistance if he or she--

(i) Was on active duty on August 2, 1990, and

(ii) Completes the requirements of a secondary school diploma (or

an equivalency certificate) before October 29, 1994.

(Authority: 38 U.S.C. 3011)

(b) Eligibility based on active duty service and service in the

Selected Reserve. * * *

(7) * * *

(iii) Before completing four years service in the Selected Reserve,

the individual ceases to be a member of the Selected Reserve during the

period beginning on October 1, 1991, and ending on September 30, 1999,

by reason of the inactivation of the individual's unit of assignment or

by reason of involuntarily ceasing to be designated as a member of the

Selected Reserve pursuant to 10 U.S.C. 268(b). However, this exemption

from the four-year service requirement does not apply to a reservist

who ceases to be a member of the Selected Reserve under adverse

conditions as characterized by the Secretary of the military department

concerned, or to a reservist who 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.

(Authority: 10 U.S.C. 16133(b)(1); 38 U.S.C. 3012(b)(1)(B); sec.

4421(b) and (c), Pub. L. 102-484, 106 Stat. 2718)

* * * * *

(c) Eligibility based on withdrawal of election not to enroll. * *

*

(3) The individual must:

(i) Complete the period of service that he or she was obligated to

serve on December 1, 1988, which will include completion of a period of

extension or reenlistment if an individual's initial obligated period

of service was scheduled to end after November 30, 1988, but he or she

extended an enlistment or reenlisted before December 1, 1988; or

* * * * *

(iii) * * *

(A) Discharged or released from active duty for the convenience of

the Government after completing not less than 20 months of that period

of service if such period was less than three years, or 30 months, if

that period was at least three years;

(B) Involuntarily discharged or released from active duty for the

convenience of the Government as a result of a reduction in force as

determined by the Secretary concerned in accordance with regulations

prescribed by the Secretary of Defense; or

(C) Discharged or released from active duty for a physical or

mental condition that was not characterized as a disability and did not

result from the individual's own willful misconduct but did interfere

with the individual's performance of duty, as determined by the

Secretary of the military department concerned in accordance with

regulations prescribed by the Secretary of Defense (or by the Secretary

of Transportation for the Coast Guard when the Coast Guard is not

operating as a service of the Navy).

* * * * *

21. In Sec. 21.7044, paragraph (a)(3)(ii) is amended by removing

``degree. This may be done at any time.'' and adding, in its place,

``degree, which may be done at any time;'' paragraph (a)(4)(i)(E) is

amended by removing ``or;'' and adding, in its place, ``or''; paragraph

(a)(4)(i)(F) is amended by removing ``Navy.'' and adding, in its place,

``Navy;'' and paragraph (a)(4)(i)(F) is further amended by removing its

authority citation; paragraph (a)(5)(iv) is amended by removing

``service;'' and adding, in its place, ``service; and''; and the

heading, paragraph (a)(6), the authority citation for paragraph (a),

and paragraph (b)(8)(ii)(B) are revised, and paragraphs (b)(8)(iii) and

(b)(12) and their authority citations are added, to read as follows:

Sec. 21.7044 Persons with 38 U.S.C. ch. 34 eligibility.

* * * * *

(a) Eligibility based solely on active duty. * * *

(6) The individual must have been on active duty at any time during

the period beginning on October 19, 1984, and ending on July 1, 1985,

and continued on active duty without a break in service.

(Authority: 38 U.S.C. 3011)

(b) Eligibility based on combined active duty service and service

in the Selected Reserve. * * *

(8) * * *

(ii) * * *

(B) For a medical condition which preexisted that period of active

duty and which VA determines is not service connected, or

(iii) Before completing four years service in the Selected Reserve

the individual ceases to be a member of the Selected Reserve during the

period beginning on October 1, 1991, and ending on September 30, 1999,

by reason of the inactivation of the individual's unit of assignment or

by reason of involuntarily ceasing to be designated as a member of the

Selected Reserve pursuant to 10 U.S.C. 268(b). However, this exemption

from the four years service requirement does not apply to a reservist

who ceases to be a member of the Selected Reserve under adverse

conditions as characterized by the Secretary of the military department

concerned, or to a reservist who 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.

(Authority: 10 U.S.C. 16133(b)(1); sec. 4421(b) and (c), Pub. L.

102-484, 106 Stat. 2718)

* * * * *

(12) The individual must have been on active duty at any time

during the period beginning on October 19, 1984, and ending on July 1,

1985, and continued on active duty without a break in service.

(Authority: 38 U.S.C. 3012(a)(1)(B))

* * * * *

22. Section 21.7045 is revised to read as follows:

Sec. 21.7045 Eligibility based on involuntary separation or voluntary

separation.

An individual who fails to meet the eligibility requirements found

in Sec. 21.7042 or Sec. 21.7044 nevertheless will be eligible for

educational assistance as provided in subpart K of this part if he or

she meets the requirements of paragraph (a) and either paragraph (b) or

(c) of this section.

(a) Service requirements. The individual must meet one of the

following sets of service requirements.

(1) The individual must--

(i) Be on active duty or full-time National Guard duty either on

September 30, 1990, or on or after November 30, 1993, and

(ii) After February 2, 1991, be involuntarily separated, as that

term is defined in 10 U.S.C. 1141, with an honorable discharge; or

(2) The individual must--

(i) Be separated from active military, naval, or air service with

an honorable discharge, and

(ii) Receive voluntary separation incentives under 10 U.S.C. 1174a

or 1175.

(Authority: 38 U.S.C. 3018A)

[[Page 6787]]

(b) Additional requirements for those individuals voluntarily

separated after October 22, 1992, or involuntarily separated. An

individual who meets the requirements of paragraph (a)(1) of this

section, or an individual who meets the requirements of paragraph

(a)(2) of this section and was separated after October 22, 1992, must

meet the following additional requirements in order to establish

eligibility for educational assistance.

(1) Required election. (i) If, under Sec. 21.7042(f), the

individual elected not to receive educational assistance under 38

U.S.C. ch. 30, he or she must irrevocably withdraw that election and

make an election to receive educational assistance under 38 U.S.C. ch.

30. The withdrawal and the election must be made:

(A) Before the involuntary or voluntary separation as the case may

be, and

(B) Pursuant to procedures which the Secretary of the military

department concerned provides in accordance with regulations prescribed

by the Secretary of Defense or which the Secretary of Transportation

provides with respect to the Coast Guard when it is not operating as a

service in the Navy; and

(ii) If the individual is a participant (as defined in

Sec. 21.5021(e)) in the educational program provided in 38 U.S.C. ch.

32, the individual must make an irrevocable election to receive

educational assistance under 38 U.S.C. ch. 30 rather than under 38

U.S.C. ch. 32. Such an election must be made:

(A) Before the individual is involuntarily or voluntarily separated

as the case may be, and

(B) Pursuant to procedures which the Secretary of the military

department concerned provides in accordance with regulations prescribed

by the Secretary of Defense or which the Secretary of Transportation

provides with respect to the Coast Guard when it is not operating as a

service in the Navy; or

(iii) If the individual is not described in either paragraph

(b)(1)(i) or (b)(1)(ii) of this section, he or she must make an

irrevocable election to receive educational assistance under 38 U.S.C.

ch. 30. This election must be made:

(A) Before the individual is involuntarily or voluntarily separated

as the case may be, and

(B) Pursuant to procedures which the Secretary of the military

department concerned provides in accordance with regulations prescribed

by the Secretary of Defense or which the Secretary of Transportation

provides with respect to the Coast Guard when it is not operating as a

service in the Navy.

(2) Reduction in basic pay. The basic pay of anyone who makes one

of the irrevocable elections described in paragraph (b)(1) of this

section is required by 38 U.S.C. 3018B to be reduced by $1,200.

(i) If for any reason the basic pay of an individual who received

an involuntary separation is not so reduced by $1,200, the failure to

make the reduction will not affect the individual's eligibility for

educational assistance under 38 U.S.C. ch. 30.

(ii) If the individual is voluntarily separated, such reduction of

the individual's basic pay by $1,200 is a precondition to establishing

eligibility. Hence, educational assistance under 38 U.S.C. ch. 30 may

not be paid to such an individual when the reduction does not occur.

(3) Educational requirement. (i) Before the date on which VA

receives the individual's application for educational assistance under

subpart K of this part, the individual must have successfully completed

either:

(A) The requirements of a secondary school diploma (or equivalency

certificate), or

(B) 12 semester hours (or the equivalent) in a program of education

leading to a standard college degree.

(ii) If a veteran's application for educational assistance is

denied due to failure to meet the requirements of paragraph (b)(3)(i)

of this section at the time of his or her application for educational

assistance, the veteran may reapply if the requirements are

subsequently met.

(Authority: 38 U.S.C. 3018B)

(c) Additional requirements for individuals who are voluntarily

discharged before October 23, 1992. If an individual meets the

requirements of paragraph (a)(2) of this section and is voluntarily

discharged before October 23, 1992, he or she must also meet the

following requirements in order to establish eligibility for

educational assistance.

(1) Required election. (i) If, under Sec. 21.7042(f), the

individual elected not to receive educational assistance under 38

U.S.C. ch. 30, he or she must irrevocably withdraw that election and

make an election to receive educational assistance under 38 U.S.C. ch.

30. The withdrawal and the new election must be made:

(A) Before October 23, 1993, and

(B) In the form and manner prescribed by the Secretary of Veterans

Affairs; and

(ii) If the individual is a participant (as defined in

Sec. 21.5021(e)) in the educational program provided in 38 U.S.C. ch.

32, the individual must make an irrevocable election to receive

educational assistance under 38 U.S.C. ch. 30 rather than under 38

U.S.C. ch. 32. Such an election must be made:

(A) Before October 23, 1993, and

(B) In the form and manner prescribed by the Secretary of Veterans

Affairs.

(iii) If the individual is not described in either paragraph

(c)(1)(i) or (ii) of this section, he or she must make an irrevocable

election to receive educational assistance under 38 U.S.C. ch. 30. This

election must be made:

(A) Before October 23, 1993, and

(B) In the form and manner prescribed by the Secretary of Veterans

Affairs.

(2) $1,200 collection. VA must collect $1,200 from the individual

before awarding educational assistance under 38 U.S.C. ch. 30.

Collection of $1,200 is a precondition to establishing eligibility.

(3) Educational requirement. (i) Before the date on which VA

receives the individual's application for educational assistance under

subpart K of this part, the individual must have successfully completed

either:

(A) The requirements of a secondary school diploma (or equivalency

certificate), or

(B) 12 semester hours (or the equivalent) in a program of education

leading to a standard college degree.

(ii) If a veteran's application for educational assistance under

subpart K of this part is denied due to failure to meet the

requirements of paragraph (c)(3)(i) of this section at the time of his

or her application for educational assistance, the veteran will be

permitted to apply at a later date.

(Authority: 38 U.S.C. 3018B)

Sec. 21.705 [Amended]

23. Section 21.7050(b)(1) is amended by removing ``October 18,

1984'' and adding, in its place, ``June 30, 1985''.

24. In Sec. 21.7072, paragraph (b) heading, paragraph (b)(1)

introductory text, and the authority citation for paragraph (b)(1) are

revised, to read as follows:

Sec. 21.7072 Entitlement to basic educational assistance.

* * * * *

(b) Entitlement: individual discharged for service-connected

disability, a medical condition which preexisted service, hardship, or

involuntarily for the convenience of the Government as a result of a

reduction in force. (1) Except as provided in Sec. 21.7073, when the

provisions of paragraph (b) of this section are met, an eligible

individual is entitled to one month of basic educational assistance (or

equivalent thereof in part-time basic educational assistance) for each

month of the

[[Page 6788]]

individual's continuous active duty service that is after June 30,

1985, and that, in the case of an individual who had no previous

eligibility under 38 U.S.C. ch. 34, is part of the individual's initial

obligated period of active duty. In the case of a veteran to whom the

definition of continuous active duty found in either

Sec. 21.7020(b)(6)(iii) or Sec. 21.7020(b)(6)(iv) applies, the length

of the continuous active duty will be the aggregate length of the

periods of active duty referred to in those paragraphs. Except as

provided in Sec. 21.7073, VA will apply paragraph (b) of this section

when the individual:

* * * * *

(Authority: 38 U.S.C. 3011(f), 3013(a))

* * * * *

25. In Sec. 21.7120, paragraph (d) and its authority citation are

added, to read as follows:

Sec. 21.7120 Courses included in programs of education.

* * * * *

(d) Independent study. (1) Except as provided in paragraph (d)(2)

of this section, effective October 29, 1992, VA may pay educational

assistance to a veteran or servicemember 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 veteran or servicemember to

complete his or her program of education,

(ii) On October 29, 1992, the veteran or servicemember was

receiving educational assistance for pursuit of the program of

education of which the nonaccredited independent study course or unit

subject forms a part, and

(iii) The veteran or servicemember 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 of enrollment by the veteran or servicemember in the

nonaccredited independent study course or unit subject.

(2) Notwithstanding the provisions of paragraph (d)(1) of this

section, VA may pay educational assistance to a veteran or

servicemember for enrollment in a course or unit subject offered by

independent study which, though part of an approved program of

education, is not required in order for the veteran or servicemember to

complete the program of education (i.e., an elective) when--

(i) The veteran or servicemember was enrolled in and receiving

educational assistance for the course or unit subject on October 29,

1992, and

(ii) The veteran or servicemember remains continuously enrolled in

the course or unit subject.

(3) Whether or not the veteran or servicemember is enrolled will be

determined by the regularly prescribed standards and practices of the

educational institution offering the course or unit subject.

(Authority: 38 U.S.C. 3014, 3034, 3076, 3680A(a); sec. 313(b), Pub.

L. 102-568, 106 Stat. 4333)

26. In Sec. 21.7122, paragraphs (e)(5) and (e)(6) and the authority

citation for paragraph (e) are revised, and paragraph (e)(7) is added,

to read as follows:

Sec. 21.7122 Courses precluded.

* * * * *

(e) Other courses. * * *

(5) Except as provided in Sec. 21.4252(j), a course from which the

veteran or servicemember withdrew without mitigating circumstances,

(6) An enrollment in a course offered by a proprietary school when

the veteran or servicemember is an official of the school authorized to

sign certificates of enrollment or monthly certificates of attendance

or monthly certifications of pursuit, an owner of the school, or an

operator of the school, or

(7) Except as provided in Sec. 21.7120(d), an enrollment in a

nonaccredited independent study course.

(Authority: 38 U.S.C. 3002(3), 3034, 3672(a), 3676, 3680(a),

3680A(a))

27. In Sec. 21.7131, paragraph (j) is added, to read as follows:

Sec. 21.7131 Commencing dates.

* * * * *

(j) Service Members Occupational Conversion and Training Act of

1992. If the veteran's educational assistance has been discontinued

because the veteran 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 determine the

date upon which educational assistance may be resumed as follows.

(1) When the veteran is pursuing a program of education on the last

date for which benefits are payable under that Act, payments will be

resumed on the day following that date.

(2) When the veteran is not pursuing a program of education on the

last date for which benefits are payable under that Act, payments will

be resumed on the commencing date as determined by paragraphs (a)

through (i) of this section, but not before the 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)

28. In Sec. 21.7135, paragraph (z) is redesignated as paragraph

(bb); and paragraph (a) and its authority citation are revised, and

paragraphs (z) and (aa) and their authority citations are added, to

read as follows:

Sec. 21.7135 Discontinuance dates.

* * * * *

(a) Death of veteran or servicemember. (1) If the veteran or

servicemember receives an advance payment pursuant to 38 U.S.C. 3680(d)

and dies before the period covered by the advance payment ends, the

discontinuance date of educational assistance shall be the last date of

the period covered by the advance payment.

(2) In all other cases if the veteran or servicemember dies while

pursuing a program of education, the discontinuance date of educational

assistance shall be the last date of attendance.

(Authority: 38 U.S.C. 3014, 3023, 3680)

* * * * *

(z) Independent study course loses accreditation. Except as

otherwise provided in Sec. 21.7120(d), if the veteran or servicemember

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.

(Authority: 38 U.S.C. 3014, 3034, 3676, 3680A(a))

(aa) Service Members Occupational Conversion and Training Act of

1992. If a veteran 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 veteran entered

the job training program.

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

* * * * *

29. In Sec. 21.7136, paragraphs (a), (b), (c), (d) and (e) are

redesignated as paragraphs (b), (c), (d), (e) and (f), respectively;

the introductory text of newly redesignated paragraph (f) is amended by

removing ``Sec. 21.7045(b)(2)'' and adding, in its place,

``Sec. 21.7045(b)(1)(ii) or (c)(1)(ii)''; and introductory text is

added to the section, paragraph (a) is added, newly

[[Page 6789]]

redesignated paragraphs (b) and (c) are revised to read as follows:

Sec. 21.7136 Rates of payment of basic educational assistance.

The monthly rate of educational assistance payable to a veteran or

servicemember depends in part upon the service requirements he or she

met to establish eligibility for that educational assistance.

(a) Service requirements for higher rates. The monthly rate of

basic educational assistance payable to a veteran or servicemember

shall be the rate stated in paragraph (b) of this section when--

(1) The veteran has established eligibility for educational

assistance under Sec. 21.7045; or

(2) The veteran has established eligibility under Sec. 21.7042, and

one of the following sets of circumstances exist.

(i) The veteran's initial obligated period of active duty is at

least three years; or

(ii) The veteran's initial obligated period of active duty is at

least two years and less than three years and either the veteran has

served or is committed to serve in the Selected Reserve for a period of

at least four years, or the veteran was committed to serve in the

Selected Reserve for a period of at least four years but failed to

complete four years service for one of the reasons stated in

Sec. 21.7042(b)(7)(i) or (iii); or

(iii) The veteran's initial obligated period of active duty is at

least two years and less than three years and--

(A) The basic educational assistance is payable for training

received after August 31, 1993;

(B) The veteran's continuous active duty service beginning on the

date of the commencement of his or her initial obligated period of

active duty is at least three years and upon completion of that

continuous period of active duty the veteran either--

(1) Continues on active duty; or

(2) Is discharged from active duty with an honorable discharge; or

(3) Is released after service on active duty characterized by the

Secretary concerned as honorable service and is placed on the retired

list, transferred to the Fleet Reserve or the Fleet Marine Corps

Reserve, placed on the temporary disability retired list; or

(4) Is released from active duty for further service in a reserve

component of the Armed Forces after service on active duty

characterized by the Secretary concerned as honorable service.

(Authority: 38 U.S.C. 3015(a))

(b) Rates. (1) Except as provided in paragraphs (b)(2) and (b)(3)

of this section, the monthly rate of basic educational assistance

payable to a veteran whose service meets the requirements of paragraph

(a) of this section is the rate stated in the following table.

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

Training Monthly rate

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

Full time............................ $400.00.

\3/4\ time........................... 300.00.

\1/2\ time........................... 200.00.

Less than \1/2\ but more than \1/4\ 200.00

time. See Sec. 21.7136(d).

\1/4\ time or less................... 100.00

See Sec. 21.7136(d).

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

(Authority: 38 U.S.C. 3015(c), 3015(f))

(2) If a veteran's service is described in paragraph (a) of this

section, the monthly rate of basic educational assistance payable when

he or she is pursuing an apprenticeship or other on-job training is the

rate stated in the following table.

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

Monthly

Training period rate

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

First six months of pursuit of program....................... $300.00

Second six months of pursuit of program...................... 220.00

Remaining pursuit of program................................. 140.00

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

(Authority: 38 U.S.C. 3015, 3032(c))

(3) If a veteran's service is described in paragraph (a) of this

section, the monthly rate of basic educational assistance payable when

he or she is pursuing a cooperative course is $320.

(Authority: 38 U.S.C. 3015(f), 3032(d))

(c) Rates for some veterans whose initial obligated period of

active duty is less than three years. If a veteran has established

eligibility under Sec. 21.7042, but the veteran's service is not

described in paragraph (a)(2) of this section, the monthly rate of

educational assistance payable to the veteran shall be determined by

this paragraph.

(1) Except as provided in paragraphs (c)(2) and (c)(3) of this

section, the monthly rate of basic educational assistance payable to a

veteran is the amount stated in the following table.

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

Training Monthly rate

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

Full time............................ $325.00.

3/4 time............................. 243.75.

1/2 time............................. 162.50.

Less than 1/2 but more than 1/4 time. 162.50

See Sec. 21.7136(d).

1/4 time or less..................... 81.25

See Sec. 21.7136(d).

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

(Authority: 38 U.S.C. 3015(c))

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

who is pursuing an apprenticeship or other on-job training is the rate

stated in the following table.

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

Monthly

Training period rate

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

First six months of pursuit of program....................... $243.75

Second six months of pursuit of program...................... 178.75

Remaining pursuit of program................................. 113.75

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

(Authority: 38 U.S.C. 3032(c))

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

veteran is $260 when the veteran is pursuing a cooperative course.

(Authority: 38 U.S.C. 3015)

* * * * *

30. In Sec. 21.7137, the heading and paragraphs (a)(1), (a)(2), and

(c) are revised, to read as follows:

Sec. 21.7137 Rates of payment of basic educational assistance for

individuals with remaining entitlement under 38 U.S.C. ch. 34.

(a) Minimum rates. (1) Except as provided in paragraph (a)(2) of

this section, the monthly rate of basic educational assistance will be

the rate stated in the following table.

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

Monthly rate

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

Additional

Training One Two for each

No dependents dependent dependents additional

dependent

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

Full time..................... $588.00.................................. $624.00 $655.00 $16.00

\3/4\ time.................... 441.00................................... 468.00 491.50 12.00

\1/2\ time.................... 294.00................................... 312.00 327.00 8.50

Less than \1/2\ but more than 294.00 See Sec. 21.7137(b).............. ........... ...........

\1/4\ time.

[[Page 6790]]

\1/4\ time or less............ 147.00 See Sec. 21.7137(b).............. ........... ...........

Cooperative................... 441.60................................... 462.00 481.60 9.20

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

(Authority: 38 U.S.C. 3015(c), 3015(f))

(2) For veterans pursuing an apprenticeship or other on-job

training, the monthly rate of basic educational assistance will be the

rate stated in the following table.

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

Monthly rate

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

Additional

Training period No One Two for each

dependents dependent dependents additional

dependent

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

1st 6 mos. of pursuit of program............................ $402.75 $415.13 $426.00 $5.25

2nd 6 mos. of pursuit of program............................ 276.38 285.73 293.43 3.85

3rd 6 mos. of pursuit of program............................ 163.80 169.93 174.65 2.45

Remaining pursuit of program................................ 151.90 157.68 162.93 2.45

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

(Authority: 38 U.S.C. 3015(d), 3015(f))

* * * * *

(c) Rates for servicemembers. The monthly rate of educational

assistance for a servicemember may not exceed the lesser of the

following rates (except as provided in paragraph (d) of this section):

(1) The monthly pro-rated cost of the course.

(2) The following monthly rates--

(i) $588.00 for full-time training,

(ii) $441.00 for three-quarter-time training,

(iii) $294.00 for one-half time training and training that is less

than one-half, but more than one-quarter-time training, and

(iv) $147.00 for one-quarter-time training.

(Authority: 38 U.S.C. 3015(d), 3015(f))

31. In Sec. 21.7145, paragraph (e) is revised, to read as follows:

Sec. 21.7145 Work-study allowance.

* * * * *

(e) Payment in advance. VA will pay in advance an amount equal to

the lesser of the following:

(1) 40 percent of the total amount payable under the contract, or

(2) 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)

32. In Sec. 21.7152, paragraph (b)(3)(ii) is removed; paragraph

(b)(3)(iii) is redesignated as paragraph (b)(3)(ii); and paragraph

(b)(3)(i) is revised, to read as follows:

Sec. 21.7152 Certification of enrollment.

* * * * *

(b) Length of the enrollment period covered by the enrollment

certification.

* * * * *

(3) * * *

(i) The enrollment date, and

* * * * *

33. In Sec. 21.7170, paragraphs (b) and (g) are removed; paragraphs

(c), (d), (e) and (f) are redesignated as paragraphs (b), (c), (d) and

(e), respectively; and the introductory text and paragraph (a) are

revised, to read as follows:

Sec. 21.7170 Course measurement.

In administering benefits payable under 38 U.S.C. chapter 30, VA

shall apply the following sections.

(a) Sec. 21.4270 (except paragraphs (a)(2) and (a)(3) and those

portions of paragraph (c) and footnotes dealing with farm cooperative

training)--Measurement of courses,

(Authority: 38 U.S.C. 3034, 3688)

* * * * *

34. In Sec. 21.7172, paragraphs (a)(1), (a)(2), and (d) are

revised, to read as follows:

Sec. 21.7172 Measurement of concurrent enrollments.

(a) Conversion of units of measurement required. * * *

(1) If VA measures the courses 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), 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, VA will convert the credit hours

to clock hours to determine the veteran's training time.

(Authority: 38 U.S.C. 3034, 3688)

* * * * *

(d) Both courses measured on a credit hour basis or both courses

measured on a clock hour basis. If VA measures the courses pursued at

both institutions on a credit hour basis or on a clock hour basis, VA

will measure the veteran's enrollment by adding together the units of

measurement for the courses at the second school and the units of

measurement for the courses at the primary institution. The standard

for full time will be the full-time standard for the courses at the

primary institution.

(Authority: 38 U.S.C. 3034, 3688)

35. In Sec. 21.7220, paragraph (b) introductory text is revised,

paragraphs (b)(9) and (b)(10) are revised, paragraph (b)(11) is added,

and the authority citation for paragraph (b) is revised, to read as

follows:

Sec. 21.7220 Course approval.

* * * * *

(b) Course approval criteria. In administering benefits payable

under 38 U.S.C. chapter 30, VA and, where appropriate, the State

approving agencies, shall apply the following sections.

* * * * *

(9) Section 21.4265--Practical training approved as institutional

training or on-job training,

(10) Section 21.4266--Courses offered at subsidiary branches or

extensions,

[[Page 6791]]

(11) Section 21.4267--Approval of independent study.

(Authority: 38 U.S.C. 3034, 3476, 3672, 3675, 3676, 3678, 3679,

3680A, 3689)

* * * * *

36. In Sec. 21.7222, paragraph (e) and its authority citation are

revised, to read as follows:

Sec. 21.7222 Courses and enrollments which may not be approved.

* * * * *

(e) Except as provided in Sec. 21.7120(d), an independent study

course which--

(1) Does not lead to a standard college degree, or

(2) Is a nonaccredited course.

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

37. In Sec. 21.7280, paragraph (b)(1) is revised, to read as

follows:

Sec. 21.7280 Death benefit.

* * * * *

(b) Necessary criteria for death benefit. * * *

(1) The individual either--

(i) Dies while on active duty, or

(ii) Dies after October 28, 1992, and his or her date of death is

within one year after the date of his or her last discharge or release

from active duty; and

* * * * *

[FR Doc. 96-3780 Filed 2-21-96; 8:45 am]

BILLING CODE 8320-01-P

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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