DEPARTMENT OF TRANSPORTATION Coast Guard DEPARTMENT OF VETERANS AFFAIRS 38 CFR Part 21

DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AE43

Reservists Education; The Veterans Education and Employment

Amendments of 1989, the Department of Defense Authorization Act,

1990, and the Montgomery GI Bill--Selected Reserve

AGENCY: Department of Veterans Affairs, Department of Defense and

Department of Transportation.

ACTION: Proposed regulations.

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

SUMMARY: The Veterans Education and Employment Amendments of 1989 and

the Department of Defense Authorization Act, 1990, contain provisions

which change significantly the Montgomery GI Bill--Selected Reserve.

These two acts expand this program by adding new types of permissible

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

training, and flight training. Furthermore, the eligibility provisions

are significantly liberalized. For instance, the attainment of a

baccalaureate degree or equivalent evidence of completion of study will

no longer bar some reservists from training under the Montgomery GI

Bill--Selected Reserve. This proposal will acquaint the public with the

way in which VA (Department of Veterans Affairs), the Department of

Defense, and the Department of Transportation intend to implement these

provisions of these two acts.

DATES: Comments must be received on or before November 1, 1994.

Comments will be available for public inspection until November 14,

1994. With two exceptions VA, the Department of Defense and the

Department of Transportation propose to make these amended regulations

effective on the same date as the provisions of law they implement.

Accordingly, it is proposed to make the amendments to Secs. 21.7639(a),

21.7642(a)(7), (8) and (9), 21.7653 and 21.7672(d) retroactively

effective on December 18, 1989. It is proposed to make the new

paragraphs Secs. 21.7576(b)(7), 21.7576(b)(5) and 21.7639(j), the

amendment to Sec

n propose to make these amended regulations

effective on the same date as the provisions of law they implement.

Accordingly, it is proposed to make the amendments to Secs. 21.7639(a),

21.7642(a)(7), (8) and (9), 21.7653 and 21.7672(d) retroactively

effective on December 18, 1989. It is proposed to make the new

paragraphs Secs. 21.7576(b)(7), 21.7576(b)(5) and 21.7639(j), the

amendment to Sec. 21.7620(b) and those portions of the amendments to

Secs. 21.7520(b)(19), 21.7576(a) and 21.7622(f) which deal with flight

training retroactively effective on September 30, 1990. It is proposed

to make the new section, Sec. 21.7645, retroactively effective on May

1, 1990. It is proposed to make the amendments to Secs. 21.7654(a) and

(b) and 21.7640(a)(1) effective on the date they have received final

approval from all three Departments. Finally, it is proposed to make

all other new sections and paragraphs and the amendments to all other

regulations, including those portions of Secs. 21.7520(b)(19),

21.7576(a) and 21.7622(f) which do not deal with flight training

retroactively effective on October 1, 1990.

ADDRESSES: Send written comments to: Secretary of Veterans Affairs

(271A), Department of Veterans Affairs, 810 Vermont Avenue NW,

Washington, DC 20420. All written comments received will be available

for public inspection only in the Veterans Services Unit, room 119 of

the above address between the hours of 8 a.m. to 4:30 p.m., Monday

through Friday (except holidays) until November 14, 1994. A copy of any

comments that concern information collection requirements should also

be sent to the Office of Management and Budget at the address contained

in the Paperwork Reduction section of this preamble.

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

for Policy and Program Administration, Education Service, Veterans

Benefits Administration, (202) 273-7187.

they submitted a monthly verification that they

are continuing to pursue their programs of education. During 1989 VA

conducted a study to determine whether this monthly self-verification

was cost-effective. The study found that not only was it cost-effective

for the Montgomery GI Bill--Active Duty, but that it also would be

cost-effective in the other educational programs which VA administers.

The study discovered that over 50% of the overpayments in a sample of

non-Montgomery GI Bill--Active Duty cases would not have occurred if

all educational programs had monthly self-verification of pursuit.

Accordingly, VA, the Department of Defense and the Coast Guard are

proposing amendments to Secs. 21.7640 and 21.7654 which would extend

monthly self-verification of pursuit to the Montgomery GI Bill--

Selected Reserve. At the same time the requirement that an educational

institution verify pursuit at least annually is being eliminated.

It has been a long-standing requirement of law that a reservist

maintain satisfactory progress and conduct in order to receive

educational assistance. In order that this provision of law be met,

Sec. 21.7653 has required that educational institutions report to VA

whenever a reservist is not making satisfactory progress or conduct.

Pub. L. 101-237 amended 38 U.S.C. 3474 to provide that VA would not pay

educational assistance to a reservist who has an unsatisfactory

attendance record. Since each educational institution with an

attendance standard is responsible for enforcing it, VA, the Department

of Defense and the Coast Guard are proposing to amend Sec. 21.7653 to

require that educational institutions report to VA whenever a

reservist's attendance is unsatisfactory.

The Department of Veterans Affairs, the Department of Defense and

the Department of Transportation have determined that these amended

regulations do not contain a major rule as that term is defined by E.O.

12291, entitled Federal Regulation

oast Guard are proposing to amend Sec. 21.7653 to

require that educational institutions report to VA whenever a

reservist's attendance is unsatisfactory.

The Department of Veterans Affairs, the Department of Defense and

the Department of Transportation have determined that these amended

regulations do not contain a major rule as that term is defined by E.O.

12291, entitled Federal Regulation. The regulations will not have a

$100 million annual effect on the economy, and will not cause a major

increase in costs or prices for anyone. They will have no significant

adverse effects on competition, employment, investment, productivity,

innovation, or on the ability of United States-based enterprises to

compete with foreign-based enterprises in domestic or export markets.

The Secretary of Veterans Affairs, the Secretary of Defense and the

Secretary of Transportation have certified that these amended

regulations, if promulgated, will not have a significant economic

impact on a substantial number of small entities as they are defined in

the Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612. Pursuant to 5

U.S.C. 605(b), the amended regulations, therefore, are exempt from the

initial and final regulatory flexibility analyses requirements of

sections 603 and 604.

This certification can be made because the regulations affect only

individuals. They will have no significant economic impact on small

entities, i.e., small businesses, small private and nonprofit

organizations and small governmental jurisdictions.

VA, the Department of Defense and the Department of Transportation

find that good cause exists for making the amendments to

Secs. 21.7639(a), 21.7642(a)(7), (8) and (9), 21.7652 and 21.7672(d),

like the provisions of law they implement, retroactively effective on

December 18, 1989. VA, the Department of Defense and the Department of

Transportation find that good cause exists for making the new

paragraphs Sec. 21.7576(b)(7), 21.7635(b)(5) and 21.7639(j), the

amendments to Sec

se exists for making the amendments to

Secs. 21.7639(a), 21.7642(a)(7), (8) and (9), 21.7652 and 21.7672(d),

like the provisions of law they implement, retroactively effective on

December 18, 1989. VA, the Department of Defense and the Department of

Transportation find that good cause exists for making the new

paragraphs Sec. 21.7576(b)(7), 21.7635(b)(5) and 21.7639(j), the

amendments to Sec. 21.7620(b) and those portions of the amendments to

Secs. 21.752)(b)(19), 21.7576(a) and 21.7622(f) which deal with flight

training, like the provisions of law they implement, retroactively

effective on September 30, 1990. VA, the Department of Defense, the

Department of Transportation find that good cause exists for making the

new Sec. 21.7645, like the provisions of law it implements,

retroactively effective on May 1, 1990. VA, the Department of Defense

and the Department of Transportation find that good cause exists for

making the remainder of the amendments to the regulations (excluding

the amendments to Secs. 21.7654(a) and (b) and 21.7640(a)(1) but

including those portions of Secs. 21.7520(b)(19), 21.7576(a) and

21.7622(f) which do not deal with flight training), like the provisions

of law they implement, retroactively effective on October 1, 1990.

These provisions are intended to achieve a benefit for the reservist.

The maximum benefits intended in the provisions of law implemented by

the above proposed regulatory amendments will be achieved through

prompt implementation. Hence, a delayed effective date would be

contrary to statutory design; would complicate administration of these

provisions of law; and might result in the denial of a benefit to a

reservist who is entitled to it.

These regulations have been reviewed by the Office of Management

and Budget pursuant to Executive Order 12866.

Paperwork Reduction Act

ill be achieved through

prompt implementation. Hence, a delayed effective date would be

contrary to statutory design; would complicate administration of these

provisions of law; and might result in the denial of a benefit to a

reservist who is entitled to it.

These regulations have been reviewed by the Office of Management

and Budget pursuant to Executive Order 12866.

Paperwork Reduction Act

The information collection contained in the proposed revisions to

Sec. 21.7640 is identical to that used in the administration of the

Montgomery GI Bill--Active Duty. The revisions to Sec. 21.7640 account

for 36,973 hours of the information collection approved under 2900-

2073. This is estimated to average 10 minutes per response.

Proposed Sec. 21.7654 also contains information collection

requirements which will result in a reporting burden. The reporting

burden is estimated to average 5 minutes per response for a total of

67,258 hours.

The proposed Sec. 21.7653(d) contains information collection

requirements which will result in a reporting burden. The reporting

burden is estimated to average 5 minutes per response for a total of

517 hours.

The average estimated time for response for all these reporting

burdens includes the time for reviewing instructions, gathering and

maintaining the data needed, and completing and reviewing the

collection of information.

As required by section 3504(h) of the Paperwork Reduction Act, VA

is submitting to the Office of Management and Budget (OMB) a request

that it approve this information collection requirement. Organizations

and individuals desiring to submit comments for consideration by OMB on

these proposed information collection requirements should address them

to the Office of Information and Regulatory Affairs, OMB, room 3002,

New Executive Office Building, Washington, DC 20503, Attention: Joseph

F. Lackey.

The Catalog of Federal Domestic Assistance number for the

program affected by these regulations is 12.609.

List of Subjects in 38 CFR Part 21

for consideration by OMB on

these proposed information collection requirements should address them

to the Office of Information and Regulatory Affairs, OMB, room 3002,

New Executive Office Building, Washington, DC 20503, Attention: Joseph

F. Lackey.

The Catalog of Federal Domestic Assistance number for the

program affected by these regulations is 12.609.

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.

Editorial note: This document was received at the Office of the

Federal Register on August 16, 1994.

Approved: April 22, 1993.

Jesse Brown,

Secretary of Veterans Affairs.

Approved: June 1, 1993.

C. L. Rhinard, Jr.,

Acting Chief, Office of Readiness and Reserve, United States Coast

Guard.

Approved: January 28, 1993.

Robert M. Alexander,

Lieutenant General, USAF, Deputy Assistant Secretary (Military Manpower

& Personnel Policy).

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart L--Educational Assistance for Members of the Selected

Reserve

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

is proposed to be amended as set forth below.

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

as follows:

Authority: 72 Stat. 1114; 38 U.S.C. 501(a).

2. In Sec. 21.7520 paragraphs (b)(1), (b)(17), (b)(19), (b)(20),

(b)(23) and their authority citations are revised and paragraphs

(b)(30), (b)(31), (b)(32) and (b)(33) and their authority citations are

added to read as follows.

Sec. 21.7520 Definitions.

* * * * *

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

presence of a reservist--

72 Stat. 1114; 38 U.S.C. 501(a).

2. In Sec. 21.7520 paragraphs (b)(1), (b)(17), (b)(19), (b)(20),

(b)(23) and their authority citations are revised and paragraphs

(b)(30), (b)(31), (b)(32) and (b)(33) and their authority citations 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; Pub. L.

98-525, Pub. L. 101-189) (Oct. 1, 1990).

* * * * *

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

(i) Is any unit course or subject or combination of 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 course pursued at an

educational institution. The combination is 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; Pub. L. 98-525, Pub. L. 101-189) (Oct.

1, 1990).

* * * * *

(19) Pursuit.

jective. 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; Pub. L. 98-525, Pub. L. 101-189) (Oct.

1, 1990).

* * * * *

(19) Pursuit.

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

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

with approved institutional policy and regulations, and applicable

criteria of title 10, United States Code; 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; Pub. L. 98-525, Pub. L. 101-189,

Pub. L. 101-237) (Sept. 30, 1990, Oct. 1, 1990).

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

an interval or school closing, or who qualifies for payment during a

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); Pub. L. 98-525)

(Oct. 19, 1984).

(20) Refresher course. The term refresher course means--

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

or update material previously covered in a course that has been

satisfactorily completed, or

(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); Pub. L. 98-525, Pub. L. 101-189)

(Oct. 1, 1990).

* * * * *

urse 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); Pub. L. 98-525, Pub. L. 101-189)

(Oct. 1, 1990).

* * * * *

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

school, educational institution, and institution mean any--

(i) Vocational school or business school;

(ii) Junior college, teachers' college, college, normal school,

professional school, university or scientific or technical institution

which confers undergraduate degrees; or

(iii) 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.

(Authority: 38 U.S.C. 2131(a), (c); Pub. L. 98-525, Pub. L. 101-189)

(Oct. 1, 1990).

* * * * *

(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); Pub. L. 101-189) (Oct. 1, 1990).

(31) Date of affirmance. The term date of affirmance means the

date, eleven or more days after a reservist signs an enrollment

agreement for a correspondence course, upon which the reservist signs

and submits to VA a written affirmance of the enrollment agreement.

(Authority: (10 U.S.C. 2136, 38 U.S.C. 3686(b); Pub. L. 101-189)

(Oct. 1, 1990).

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

lesser of--

term date of affirmance means the

date, eleven or more days after a reservist signs an enrollment

agreement for a correspondence course, upon which the reservist signs

and submits to VA a written affirmance of the enrollment agreement.

(Authority: (10 U.S.C. 2136, 38 U.S.C. 3686(b); Pub. L. 101-189)

(Oct. 1, 1990).

(32) 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 cost to the reservist.

(Authority: 10 U.S.C. 2131(f); Pub. L. 101-189) (Oct. 1, 1990).

(33) Training establishment. The term training establishment means

any establishment providing apprentice or other on-job training,

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

State department of education, or any State apprenticeship agency or

any State board of vocational education, or any joint apprenticeship

committee, or 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); Pub. L. 101-189) (Oct. 1, 1990).

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

paragraphs (c) and (d) respectively, paragraph (a) and its authority

citation are revised and paragraph (b) and its authority citation are

added to read as follows:

Sec. 21.7540 Eligibility for educational assistance.

l

Government authorized to supervise such training.

(Authority: 10 U.S.C. 2131(d); Pub. L. 101-189) (Oct. 1, 1990).

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

paragraphs (c) and (d) respectively, paragraph (a) and its authority

citation are revised and paragraph (b) and its authority citation are

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 106. To be eligible a reservist must--

(1) 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

(2) 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.

(3) Complete his or her initial period of active duty for training;

(4) Be participating satisfactorily in the Selected Reserve; and

(5) Not have elected to have his or her service in the Selected

Reserve credited toward establishing eligibility to benefits provided

under 38 U.S.C. chapter 30.

(Authority: 38 U.S.C. 3033(c), 10 U.S.C. 2132; Pub. L. 99-525, Pub.

L. 99-576, Pub. L. 100-689, Pub. L. 101-189, sec. 642(d)) (Oct. 1,

1990).

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

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

subpart regardless of whether he or she has received a baccalaureate

degree or equivalent evidence of completion of study if--

38 U.S.C. 3033(c), 10 U.S.C. 2132; Pub. L. 99-525, Pub.

L. 99-576, Pub. L. 100-689, Pub. L. 101-189, sec. 642(d)) (Oct. 1,

1990).

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

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

subpart 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) or (2) of this section,

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

paragraph (a) 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 this subpart (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 (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 offered solely by independent study,

(iv) A refresher, remedial or deficiency course,

st 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 offered solely by independent study,

(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. 2132; Pub. L. 101-189, sec. 642(d)) (Oct. 1,

1990).

* * * * *

4. 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) and authority

citations for paragraphs (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. Except for those pursuing flight training, correspondence

training or apprenticeship or other on-job training, charges are based

upon the principle that a reservist who trains full time for one day

should be charged one day of entitlement.

(Authority: 10 U.S.C. 2131(c); Pub. L. 98-525, Pub. L. 101-189, Pub.

L. 101-237) (Sept. 30, 1990, Oct. 1, 1990).

(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--

time for one day

should be charged one day of entitlement.

(Authority: 10 U.S.C. 2131(c); Pub. L. 98-525, Pub. L. 101-189, Pub.

L. 101-237) (Sept. 30, 1990, Oct. 1, 1990).

(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,

(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 less than one-half time basis.

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

award of educational assistance to 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 twelve months of the reservist's pursuit of the program of

apprenticeship or other on-job training.

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 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 $140.

(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); Pub. L. 98-525, Pub. L. 101-189)

(Oct. 1, 1990).

nt 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); Pub. L. 98-525, Pub. L. 101-189)

(Oct. 1, 1990).

(7) For a reservist pursuing flight training, VA will make a charge

against entitlement at the rate of one month for each $140 paid to the

reservist.

(Authority: 10 U.S.C. 2136(c); Pub. L. 101-237) (Sept. 30, 1990).

* * * * *

5. In Sec. 21.7612 the introductory text, paragraph (a) and its

authority citation 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 (3) may pursue courses only at an institution

of higher learning

on 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 (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); Pub. L.

98-525, Pub. L. 101-189) (Oct. 1, 1990).

* * * * *

6. In Sec. 21.7620 paragraph (b) is revised 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 is

provided in Sec. 21.7540(b) (1) and (3),

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

(C) A flight school is offering the course,

(D) The reservist is pursuing a vocational objective in the field

of aviation, and

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

29, 1990, and before October 1, 1994.

(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. 2131; Pub. L. 101-237) (Sept. 30, 1990).

* * * * *

7. In Sec. 21.7622 paragraph (f) and its authority citation are

revised to read as follows.

Sec. 21.7622 Courses precluded.

* * * * *

1990, and before October 1, 1994.

(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. 2131; Pub. L. 101-237) (Sept. 30, 1990).

* * * * *

7. In Sec. 21.7622 paragraph (f) and its authority citation are

revised to read as follows.

Sec. 21.7622 Courses precluded.

* * * * *

(f) Other courses. (1) A reservist who, as provided in

Sec. 21.7540(b)(2) is not eligible to pursue all types of training, may

not receive any educational assistance for pursuit of any of the types

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

(i) VA will not consider the hospital or fieldwork phase of a

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

be provided by an institution of higher learning unless--

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

course,

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

a prerequisite to the successful completion of the course,

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

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

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

institution of higher learning.

(ii) A reservist who, as provided in Sec. 21.7540(b)(2) is not

eligible to pursue all types of training, 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.

(2) No reservist is entitled to receive payment of educational

assistance from VA for--

n Sec. 21.7540(b)(2) is not

eligible to pursue all types of training, 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.

(2) No reservist is entitled to receive payment of educational

assistance from VA for--

(i) An enrollment in a course leading to any degree or certificate

above the baccalaureate level,

(ii) An audited course (see Sec. 21.4252(i)),

(iii) New enrollments in a course during periods when approval has

been suspended by a State approving agency or VA,

(iv) Certain courses being pursued by nonmatriculated students as

provided in Sec. 21.4252(l),

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

the reservist is an owner, operator or official of the school

authorized to sign certificates of enrollment under 10 U.S.C. ch. 106,

or

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

nonveteran ratio requirement, as computed under Sec. 21.4201.

(Authority: 10 U.S.C. 2131(c), 2136(b), 38 U.S.C. 3672(a), 3680(a);

Pub. L. 98-525, Pub. L. 101-189, sec. 642(d), Pub. L. 101-237)

(Sept. 30, 1990) (Oct. 1, 1990).

8. Section 21.7624 is revised to read as follows:

Sec. 21.7624 Overcharges--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; Pub. L. 98-525, Pub. L.

101-189) (Oct. 1, 1990).

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; Pub. L. 98-525, Pub. L.

101-189) (Oct. 1, 1990).

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

apply to any determination VA may make as to whether restrictions on

approval of enrollments would exist at an educational institution.

(Authority: 10 U.S.C. 2136, 38 U.S.C. 3690(b); Pub. L. 98-525, Pub.

L. 101-189) (Oct. 1, 1990).

9. In Sec. 21.7631 paragraph (a)(1) is revised and an authority

citation is added, and the headings for paragraphs (b) and (c) are

revised 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.

(Authority: 10 U.S.C. 2136(b), 38 U.S.C. 3672; Pub. L. 101-189)

(Oct. 1, 1990).

* * * * *

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

subject leads to a standard college degree.

* * * * *

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

to a standard college degree. * * *

* * * * *

10. In Sec. 21.7635 paragraph (r) and its authority citation are

revised and paragraphs (b)(3), (b)(4) and (b)(5) are added and

authority citations for paragraphs (b)(4) and (b)(5) are added to read

as follows:

Sec. 21.7635 Discontinuance dates.

* * * * *

llege degree.

* * * * *

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

to a standard college degree. * * *

* * * * *

10. In Sec. 21.7635 paragraph (r) and its authority citation are

revised and paragraphs (b)(3), (b)(4) and (b)(5) are added and

authority citations for paragraphs (b)(4) and (b)(5) are added to read

as follows:

Sec. 21.7635 Discontinuance dates.

* * * * *

(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); Pub. L. 98-525,

Pub. L. 101-189) (Oct. 1, 1990).

(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); Pub. L. 101-237)

(Sept. 30, 1990).

* * * * *

(r) Completion of baccalaureate instruction. If the reservist is

not eligible to pursue all the types of training in this subpart as

provided in Sec. 21.7540(b) (2) and (3) and completes a course of

instruction required for the award of a baccalaureate degree or the

equivalent evidence of completion of study, 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; Pub. L. 98-525, Pub. L. 101-189, sec.

642(d)) (Oct. 1, 1990).

* * * * *

11. In Sec. 21.7636 an authority citation is added for paragraph

(b)(1) and paragraphs (a), (b)(1), (b)(4) and (b)(5) and the authority

citations for paragraphs (a) and (b) are revised to read as follows:

Sec. 21.7636 Rates of payment.

n which the

required course of instruction was completed.

(Authority: 10 U.S.C. 2131; Pub. L. 98-525, Pub. L. 101-189, sec.

642(d)) (Oct. 1, 1990).

* * * * *

11. In Sec. 21.7636 an authority citation is added for paragraph

(b)(1) and paragraphs (a), (b)(1), (b)(4) and (b)(5) and the authority

citations for paragraphs (a) and (b) are revised to read as follows:

Sec. 21.7636 Rates of payment.

(a) Monthly rates 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:

(i) $140 per month for each month of full-time pursuit of a program

of education;

(ii) $105 per month for each month of three-quarter-time pursuit of

a program of education;

(iii) $70 per month for each month of half-time pursuit of a

program of education; and

(iv) $35 per month for each month of quarter-time pursuit of a

program of education.

(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 this table:

(i) Training period and monthly rate

First six months of pursuit of training--$105

Second six months of pursuit of training--$77

Remaining pursuit of training--$49.

(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 $112.

(Authority: 10 U.S.C. 2131(b), (c); Pub. L. 98-525, Pub. L. 101-189)

(Oct. 1, 1990).

s 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 $112.

(Authority: 10 U.S.C. 2131(b), (c); Pub. L. 98-525, Pub. L. 101-189)

(Oct. 1, 1990).

(b) Limitations on payments. (1) No payments may be made to a

reservist who is not eligible to pursue all types of training in this

subpart, as provided in Sec. 21.7540(b)(2) and (3), and who is pursuing

independent study if he or she is not concurrently pursuing one or more

courses offered through resident training at an institution of higher

learning.

(Authority: 10 U.S.C. 2131, 2136(b), 38 U.S.C. 3680; Pub. L. 98-525,

Pub. L. 101-189, sec. 642(d)) (Oct. 1, 1990).

* * * * *

(4) A reservist who is restricted in the types of training he or

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

receive educational assistance after he or she has completed the course

of instruction required for the award of a baccalaureate degree or the

equivalent evidence of completion of study.

(5) A reservist who is restricted in the types of training he or

she may pursue, as described in Sec. 21.7540(b)(2) and (3), may only

receive educational assistance for instruction in a program of

education which is offered at an institution of higher learning. While

the instruction does not have to lead to a standard college degree, it

must lead to an identifiable educational, professional or vocational

objective.

(Authority: 10 U.S.C. 2131(b), 2136(b), 38 U.S.C. 3680; Pub. L. 98-

525, Pub. L. 101-189, sec. 642(d)) (Oct. 1, 1990).

12. In Sec. 21.7639 paragraph (a) introductory text and paragraph

ch is offered at an institution of higher learning. While

the instruction does not have to lead to a standard college degree, it

must lead to an identifiable educational, professional or vocational

objective.

(Authority: 10 U.S.C. 2131(b), 2136(b), 38 U.S.C. 3680; Pub. L. 98-

525, Pub. L. 101-189, sec. 642(d)) (Oct. 1, 1990).

12. In Sec. 21.7639 paragraph (a) introductory text and paragraph

(f) are revised, an authority citation is added to paragraph (a)

introductory text, and the authority citation for paragraph (f) is

revised and paragraphs (g), (h), (i) and (j) and their authority

citations are added to read as follows:

Sec. 21.7639 Conditions which result in reduced rates.

* * * * *

(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; Pub. L. 98-525, Pub.

L. 101-237) (Dec. 18, 1989).

* * * * *

(f) Completion of baccalaureate requirements. As provided in

Sec. 21.7636(b)(4) no educational assistance may be paid to a reservist

who is restricted in the types of training he or she may pursue as

provided in Sec. 21.7540(b)(2) and (3), and who has completed a course

of instruction required for a baccalaureate degree or the equivalent

evidence of completion of study. 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.

(Authority: 10 U.S.C. 2131; Pub. L. 98-525, Pub. L. 101-189, sec.

642(d)) (Oct. 1, 1990).

f study. 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.

(Authority: 10 U.S.C. 2131; Pub. L. 98-525, Pub. L. 101-189, sec.

642(d)) (Oct. 1, 1990).

(g) Payment for independent study. A reservist pursuing only

independent study shall be paid educational assistance at the quarter-

time rate regardless of the number of credit hours the reservist may be

pursuing. See Sec. 21.7636(a).

(Authority: 10 U.S.C. 2136(b), 38 U.S.C. 3034(b); Pub. L. 101-189)

(Oct. 1, 1990).

(h) 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); Pub. L. 101-189) (Oct. 1, 1990).

(i) 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) proportionally. 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); Pub. L. 101-189) (Oct. 1, 1990).

) 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); Pub. L. 101-189) (Oct. 1, 1990).

(j) Payment for a 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. 2131(g); Pub. L. 101-237) (Sept. 30, 1990).

13. In Sec. 21.7640 paragraph (a) is revised, the authority

citation for paragraph (a) is revised and in paragraph (d)(1) the

phrase ``institution of higher learning'' is revised to read

``educational institution''.

Sec. 21.7640 Certifications and release of payments.

(a) Payments are dependent upon certifications. A reservist must be

pursuing a program of education in order to receive payments. To ensure

that this is the case, the provisions of this paragraph must be met.

(1) VA will pay educational assistance to a reservist (other than

one pursuing a program of apprenticeship or other on-job training or a

correspondence course, a flight training course, or one who qualifies

for an advance payment) only after--

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

as provided in Sec. 21.7652; and

(ii) VA has received from the individual a verification of the

enrollment or a verification of pursuit and continued enrollment, as

appropriate. Generally, this verification will be required monthly,

resulting in monthly payments.

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

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

as provided in Sec. 21.7652; and

(ii) VA has received from the individual a verification of the

enrollment or a verification of pursuit and continued enrollment, as

appropriate. Generally, this verification will be required monthly,

resulting in monthly payments.

(2) 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 as provided in Sec. 21.7652; and

(ii) VA has received from the reservist and the training

establishment a certification of hours worked. Generally, this

certification will be required monthly, resulting in a monthly payment.

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

pursuing a correspondence course or the correspondence portion of a

combined correspondence-residence course only after--

(i) The educational institution has certified his or her

enrollment, as provided in Sec. 21.7652;

(ii) VA has received from the reservist a certification as to the

number of lessons completed and serviced by the educational institution

and for which payment is due; and

(iii) VA has received from the educational institution a

certification or an endorsement on the reservist's certificate, as to

the number of lessons completed by the reservist and serviced by the

educational institution. Generally, this certification will be required

quarterly, resulting in quarterly payments.

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

pursuing a flight course only after--

eived from the educational institution a

certification or an endorsement on the reservist's certificate, as to

the number of lessons completed by the reservist and serviced by the

educational institution. Generally, this certification will be required

quarterly, resulting in quarterly payments.

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

pursuing a flight course only after--

(i) The flight school has certified his or her enrollment as

provided in Sec. 21.7652;

(ii) VA has received from the flight school a certification as to

the number of training hours completed and the charges for each hour of

training. Generally these certifications are submitted monthly,

resulting in monthly payments.

(Authority: 10 U.S.C. 2131, 2136(b), 38 U.S.C. 3680(b) Pub. L. 98-

525, Pub. L. 101-189) (Sept. 30, 1990, Oct. 1, 1990).

14. In Sec. 21.7642 paragraphs (a)(7) and (8) and the authority

citation for paragraph (a) are revised and paragraph (a)(9) is 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; Pub. L. 98-525, Pub.

L. 101-237) (Dec. 18, 1989).

* * * * *

15. Section 21.7645 and its authority citations are added to read

as follows:

Sec. 21.7645 Work-study allowances.

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

time programs of education or training under chapter 106 are eligible

to receive a work-study allowance.

(Authority: 38 U.S.C. 3485; Pub. L. 101-237) (May 1, 1990).

525, Pub.

L. 101-237) (Dec. 18, 1989).

* * * * *

15. Section 21.7645 and its authority citations are added to read

as follows:

Sec. 21.7645 Work-study allowances.

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

time programs of education or training under chapter 106 are eligible

to receive a work-study allowance.

(Authority: 38 U.S.C. 3485; Pub. L. 101-237) (May 1, 1990).

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

selection for 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; Pub. L. 101-237) (May 1, 1990).

(c) Utilization. The services 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. ch. 106

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; Pub. L. 101-237, Pub. L. 102-16) (May 1,

1990) (Mar. 22, 1991).

(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--

l

Guard facilities; and

(5) Any other appropriate activity of VA.

(Authority: 38 U.S.C. 3485; Pub. L. 101-237, Pub. L. 102-16) (May 1,

1990) (Mar. 22, 1991).

(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; Pub. L. 101-237) (May 1, 1990).

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

40 percent of the total amount payable under the contract.

(Authority: 38 U.S.C. 3485; Pub. L. 101-237) (May 1, 1990).

(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 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; Pub. L. 101-237) (May 1, 1990).

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

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

field station or designee--

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; Pub. L. 101-237) (May 1, 1990).

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

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

field station or 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; Pub. L. 101-237) (May 1, 1990).

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

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

evidence that he or she does not intend to perform that service, the

advance--

(i) Will be 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; Pub. L. 101-237) (May 1, 1990).

16. In Sec. 21.7653 the title of the section is revised, paragraphs

(c) and (d) and their authority citations are revised and paragraph (e)

and its authority citation are added to read as follows:

Sec. 21.7653. Progress, conduct and attendance.

* * * * *

d service

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

(Authority: 38 U.S.C. 3485; Pub. L. 101-237) (May 1, 1990).

16. In Sec. 21.7653 the title of the section is revised, paragraphs

(c) and (d) and their authority citations are revised and paragraph (e)

and its authority citation are 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.

(Authority: 10 U.S.C. 2136(b), 38 U.S.C. 3474; Pub. L. 101-237)

(Dec. 18, 1989).

(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)

and (2) 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:

fact of his or her unsatisfactory progress

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

and (2) 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

received the final grade report which establishes that the reservist

either 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, conduct or attendance of the

reservist is caused by any factors other than the grades which he or

she receives, the educational institution shall report the

unsatisfactory progress, conduct or attendance of the reservist to VA

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

progress, conduct or attendance of the reservist becomes

unsatisfactory.

(Authority: 10 U.S.C. 2136(b), 38 U.S.C. 3474; Pub. L. 98-525, Pub.

L. 101-189, Pub. L. 101-237) (Oct. 1, 1990) (Dec. 18, 1989).

(e) Reentrance after discontinuance. (1) Reentrance may be for the

same program, for a revised program, or for an entirely different

program depending on the cause of the discontinuance and the removal of

that cause.

(2) A reservist may be reentered following discontinuance because

of unsatisfactory attendance, conduct or progress when either of the

following sets of conditions exists:

9).

(e) Reentrance after discontinuance. (1) Reentrance may be for the

same program, for a revised program, or for an entirely different

program depending on the cause of the discontinuance and the removal of

that cause.

(2) A reservist may be reentered 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; Pub. L. 101-237)

(Dec. 18, 1989).

17. Section 21.7654 is revised to read as follows:

Sec. 21.7654 Pursuit and absences.

As stated in Sec. 21.7640(a) except when a reservist is pursuing a

correspondence course or a flight training course, a reservist must

submit a verification to VA each month of his or her enrollment during

the period for which the reservist is to be paid. This verification

shall be in the form prescribed by the Secretary.

(a) Requirements for all reservists. (1) The periodic verification

by all reservists 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,

scribed by the Secretary.

(a) Requirements for all reservists. (1) The periodic verification

by all reservists 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); Pub. L. 101-237).

(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 certify training monthly by

reporting the number of hours worked.

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

the training establishment. See Sec. 21.7640.

(Authority: 38 U.S.C. 2136(b), 38 U.S.C. 3680(a); Pub. L. 101-189)

(Oct. 1, 1990).

18. In Sec. 21.7672 paragraph (d) and its authority citation are

revised to read as follows:

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

degree.

* * * * *

hours worked.

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

the training establishment. See Sec. 21.7640.

(Authority: 38 U.S.C. 2136(b), 38 U.S.C. 3680(a); Pub. L. 101-189)

(Oct. 1, 1990).

18. In Sec. 21.7672 paragraph (d) and its authority citation are

revised to read as follows:

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

degree.

* * * * *

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

equivalent clock hours). (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 paragraph (d)(1) 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 shall--

ester 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 shall--

(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 paragraph (d)(5) and (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. The result will be compared to paragraph (e) or (f) to

determine the reservist's training time.

(5) When the number of class sessions per credit hours is so low

that Sec. 21.4272(f)(2)(ii) or (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.

er 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: 38 U.S.C. 3688(e); Pub. L. 101-237) (Dec. 18, 1989).

19. In Sec. 21.7700 paragraph (a) is revised and an authority

citation is added to read as follows:

Sec. 21.7700 State approving agencies.

* * * * *

(a) Sec. 21.4150--Designation.

(Authority: 10 U.S.C. 2136(b), 38 U.S.C. 3670, 3671, 3672, 3674;

Pub. L. 101-189) (Oct. 1, 1990).

* * * * *

20. In Sec. 21.7720 paragraphs (a), (b)(1) introductory text,

(b)(1)(i), (b)(1)(vi) and (b)(1)(ix) are revised; paragraph (b)(1)(x)

is added and the authority citations for paragraphs (a) and (b) are

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. In determining when it is appropriate

for VA to approve a course, VA will apply the provisions of

Sec. 21.4250(b)(3) and (c)(2)(i), (ii), (iii) and (iv).

(2) A course approved under 38 U.S.C. ch. 36 is approved for

purposes of 10 U.S.C. ch. 106 provided it is not a course of

instruction beyond the baccalaureate degree level.

(Authority: 10 U.S.C. 2131(c), 2136(b), 38 U.S.C. 3672; Pub. L. 98-

525, Pub. L. 101-189) (Oct. 1, 1990).

for VA to approve a course, VA will apply the provisions of

Sec. 21.4250(b)(3) and (c)(2)(i), (ii), (iii) and (iv).

(2) A course approved under 38 U.S.C. ch. 36 is approved for

purposes of 10 U.S.C. ch. 106 provided it is not a course of

instruction beyond the baccalaureate degree level.

(Authority: 10 U.S.C. 2131(c), 2136(b), 38 U.S.C. 3672; Pub. L. 98-

525, Pub. L. 101-189) (Oct. 1, 1990).

(b) Course approval criteria. (1) In administering benefits payable

under 10 U.S.C. ch. 106, VA and, where appropriate, the State approving

agencies, shall apply the following sections:

(i) Sec. 21.4250 (except paragraph (c)(1))--Approval of courses.

* * * * *

(vi) Sec. 21.4258--Notice of approval;

* * * * *

(ix) Sec. 21.4265 (except paragraphs (a), (e) and (g))--Practical

training approved as institutional training or on-job training;

(x) Sec. 21.4266--Courses offered at subsidiary branches or

extensions.

(Authority: 10 U.S.C. 2131(c), 2136(b); Pub. L. 101-189) (Oct. 1,

1990).

21. In Sec. 21.7722 the introductory text is removed; paragraphs

(c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n) and (o) are

removed and reserved; paragraphs (a) and (b) are revised and their

authority citations are added to read as follows:

Sec. 21.7722 Courses and enrollments which may not be approved.

(a) Courses and enrollments which may not be approved. 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. ch. 106--

(1) A bartending or personality development course;

(2) A course offered by radio;

(3) A course offered by a graduate school leading to a graduate

degree or a graduate certificate;

(4) A medical, dental, or an osteopathic internship or residency;

erans 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. ch. 106--

(1) A bartending or personality development course;

(2) A course offered by radio;

(3) A course offered by a graduate school leading to a graduate

degree or a graduate certificate;

(4) A medical, dental, or an osteopathic internship or residency;

(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.

(Authority: 10 U.S.C. 2131(c), 2136(b), 38 U.S.C. 3473; Pub. L. 98-

525, Pub. L. 101-189, Pub. L. 101-237) (Sept. 30, 1990) (Oct. 1,

1990).

(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. ch. 106, but VA may not approve an enrollment by a reservist

who is not eligible to pursue all types of training in this subpart as

provided in Sec. 21.7540(b)(2) and (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, 2136(b); Pub. L. 101-189) (Oct. 1,

1990).

* * * * *

[FR Doc. 94-20405 Filed 9-1-94; 8:45 am]

BILLING CODE 8320-01-P