[Federal Register Volume 59, Number 170 (Friday, September 2, 1994)]
[Proposed Rules]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20405]


[[Page Unknown]]

[Federal Register: September 2, 1994]


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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.

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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. 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.

SUPPLEMENTARY INFORMATION: The Veterans Employment Amendments of 1989 
(Pub. L. 101-237) and the Department of Defense Authorization Act, 1990 
(Pub. L. 101-189), contain provisions which affect the Montgomery GI 
Bill--Selected Reserve. These include expanding this program to include 
additional types of training, liberalizing the eligibility requirements 
for this program, and permitting recipients of benefits under the 
Montgomery GI Bill--Selected Reserve to participate in VA's work-study 
program. The provisions concerning work-study were further amended by 
Pub. L. 102-16 to permit training at Coast Guard and National Guard 
facilities. Regulations must be amended so that they implement the new 
provisions of law.
    Pub. L. 101-237 permits the Secretary of Veterans Affairs to 
require a reservist to submit a verification of continued pursuit of a 
reservist's program of education before releasing the monthly benefit 
to him or her. This proposal contains regulations which would require 
these verifications from reservists.
    It has been a long-standing requirement of VA that monthly benefits 
would not be released to students training under the Montgomery GI 
Bill--Active Duty until 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. 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. 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

    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

    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--
    (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.
    (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).
* * * * *
    (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--
    (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.

    (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--
    (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,
    (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--
    (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.
    (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).

    (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. 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.

* * * * *
    (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--
    (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).

    (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.

* * * * *
    (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.

    (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).

    (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 
(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).

    (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).

    (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--
    (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--
    (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).

    (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--
    (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--
    (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.

* * * * *
    (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:
    (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:
    (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,
    (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.

* * * * *
    (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--
    (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.
    (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).

    (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;
    (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