[Federal Register Volume 61, Number 112 (Monday, June 10, 1996)]
[Rules and Regulations]
[Pages 29297-29311]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14369]



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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AE43


Educational Assistance for Members of the Selected Reserve

AGENCIES: Department of Defense, Department of Transportation (Coast 
Guard), and Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the regulations for the Montgomery GI 
Bill--Selected Reserve program to reflect statutory changes by adding 
for certain reservists new types of permissible training such as 
apprenticeship and other on-job training, cooperative training, and 
flight training; by liberalizing the eligibility provisions; and by 
increasing the rates of payment. The regulations are also amended by 
adding additional restatements of statute, interpretive rules, and 
nonsubstantive changes.

DATES: Effective Date: This final rule is effective June 10, 1996.
    Applicability Dates: The restatements of statute and VA's statutory 
interpretations contained in this final rule will be applied 
retroactively from

[[Page 29298]]

the effective dates of the statutory provisions. For more information 
concerning the application of the provisions of this final rule, see 
the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director 
for Policy and Program Administration, Education Service, Veterans 
Benefits Administration, Department of Veterans Affairs, (202) 273-
7187.

SUPPLEMENTARY INFORMATION: In a document published in the Federal 
Register on September 2, 1994 (59 FR 45644), the Department of Defense, 
the Department of Transportation (Coast Guard), and the Department of 
Veterans Affairs proposed to amend the ``Educational Assistance for 
Members of the Selected Reserve'' regulations which are set forth at 38 
CFR Sec. 21.7500 et seq. It was proposed to amend the regulations to 
implement provisions of the Veterans Education and Employment 
Amendments of 1989 (Title IV of Pub. L. 101-237), the National Defense 
Authorization Act for Fiscal Years 1990 and 1991 (Pub. L. 101-189), and 
the Veterans Education and Employment Programs Amendments (Pub. L. 102-
16) that affected the Montgomery GI Bill--Selected Reserve program. 
Interested persons were given 60 days to submit comments. One comment 
was received. The comment, signed by six students at a university, 
urged that the proposed rule be adopted.
    Based on the rationale set forth in the proposed rule document, we 
are adopting the provisions of the proposed rule as a final rule, 
except as otherwise explained below.
    Prior to the effective date of this document, as a prerequisite for 
VA educational assistance, reservists in courses not leading to a 
standard college degree were required to submit to VA a monthly report 
endorsed by the educational institution stating each day of absence 
from scheduled attendance. The proposed rule would have deleted such 
requirements for reservists in a course not leading to a standard 
college degree. We are adopting this portion of the proposal. It was 
proposed with certain exceptions to establish new reporting 
requirements for reservists both in courses leading to a standard 
college degree and in courses not leading to a standard college degree. 
In this regard, it was proposed to require all reservists other than 
those in flight training or correspondence courses to submit a 
verification (without endorsement of educational institutions) of 
continued pursuit of the reservist's program of education before 
monthly benefits were paid. The proposed provisions concerning 
verification of pursuit are not adopted for reservists in courses 
leading to a standard college degree but are adopted for reservists in 
courses (other than flight or correspondence courses) not leading to a 
standard college degree. Experience in similar programs has shown that 
because of frequent changes in enrollment it is necessary to continue 
to obtain monthly reports from the small percentage of reservists in 
courses not leading to a standard college degree. However, the proposed 
provisions concerning verification of pursuit for reservists in courses 
leading to a standard college degree are not adopted because VA simply 
does not have resources at this time to process the verifications.

Restatements of Statutory Provisions and Other Conforming Changes

    Changes are made to the final rule to include restatements of 
statutes and other conforming changes as follows:
    1. Section 21.7636 is amended to reflect that the Persian Gulf 
Supplemental Authorization and Personnel Benefits Act of 1991 (Pub. L. 
102-25), the Veterans' Benefit Act of 1992 (Pub. L. 102-568), and the 
Omnibus Budget Reconciliation Act of 1993 (Pub. L. 103-66) changed the 
monthly rates of educational assistance payable to reservists beginning 
October 1, 1991, for training full time, three quarters time, and half 
time under the Montgomery GI Bill--Selected Reserve program. Section 
21.7636 is also amended by making corresponding changes for training 
one quarter time, which under the regulations is one quarter the amount 
of full time.
    2. Sections 21.7540, 21.7622, 21.7635(r), and 21.7639 (f) and (k) 
are amended to reflect that Public Law 101-189 added with respect to 
training that may be pursued under the Montgomery GI Bill--Selected 
Reserve program certain liberalizing provisions that it applied only to 
a reservist who, after September 30, 1990, makes a new commitment to 
serve six years in the Selected Reserve. Accordingly, those sections of 
the regulations are amended to reflect that such a reservist, if 
otherwise eligible, may pursue under the Montgomery GI Bill--Selected 
Reserve program: a course that is offered by an educational institution 
which is not an institution of higher learning; a correspondence 
course; a program of education leading to a standard college degree 
offered solely by independent study; a refresher, remedial, or 
deficiency course; a cooperative course; an apprenticeship or other on-
job training; and a flight course.
    3. Section 21.7576 is amended to reflect the provisions in Public 
Law 101-189 concerning how VA will apply entitlement charges to flight 
training, correspondence training, cooperative training, and 
apprenticeship or other on-job training.
    4. Changes are made to Secs. 21.7540(b)(3)(iii), 21.7620(c), 
21.7622(f)(vi), and 21.7722 to reflect that Public Law 102-568 changed 
the provisions with respect to approval for VA educational assistance 
to add a requirement that an independent study program must be 
accredited, except that such requirement is not added for a reservist 
who, as of October 29, 1992, was receiving educational assistance for 
pursuit of an independent study program, and who has remained 
continuously enrolled in that program.
    5. Sections 21.7631(a) and 21.7642(e) are amended to reflect that 
the National Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484) provides that a reservist who enters a program of job training 
under the Service Members Occupational Conversion and Training Act of 
1992 (SMOCTA) is barred from receiving educational assistance under the 
Montgomery GI Bill--Selected Reserve program for the same period for 
which SMOCTA assistance is paid.
    6. Section 21.7635(a) is amended to reflect that Public Law 102-568 
provides that when a reservist receives an advance payment of 
educational assistance and dies during the period covered by the 
advance payment, the ending date of educational assistance is the last 
date of the advance payment period.
    7. Section 21.7639(a) is amended to reflect that Public Law 101-237 
repealed certain provisions concerning payment reductions resulting 
from excessive absences.
    8. Section 21.7639 (f)(1) and (2) is amended to reflect that Public 
Law 102-568 repealed certain provisions concerning the rate of payment 
for a program pursued in whole or in part by independent study.
    9. Section 21.7645(e) is amended to reflect that Public Law 102-568 
limits work-study advance payments to 50 times the hourly wage 
specified in the work-study contract for reservists eligible for 
educational assistance under the Montgomery GI Bill--Selected Reserve 
program who participate in VA's work-study program.
    10. Section 21.7672 is amended to reflect that Public Law 102-568 
revised the course measurement provisions that determine whether a 
reservist's

[[Page 29299]]

enrollment under the Montgomery GI Bill--Selected Reserve program is 
full time, three-quarter time, half time, or one-quarter time.
    11. Section 21.7722 is amended to reflect that Public Law 102-568 
specifically allows approval of certain courses for training an 
individual to become a nurse's aide.
    12. Sections 21.7540(b), 21.7620(d), 21.7622(f), 21.7670, and 
21.7722 are amended to reflect that Public Law 103-160 makes graduate 
training available under the Montgomery GI Bill--Selected Reserve 
program.
    13. Section 21.7520(b) is amended to reflect that Public Law 103-
446 contains a provision that requires any entity offering an 
alternative teacher certification program to be considered to be an 
educational institution for VA purposes during the period beginning on 
November 2, 1994, and ending on September 30, 1996.
    14. Section 21.7520(b) is amended to reflect that Public Law 103-
446 prohibits VA from supervising the State approving agencies (SAAs) 
that approve courses for VA training.

Interpretations

    As discussed above, Public Law 102-568 provides that the 
prohibition against VA payment of educational assistance for 
nonaccredited independent study programs does not apply to a reservist 
who, as of October 29, 1992, was receiving educational assistance for 
pursuit of an independent study program, and who has remained 
continuously enrolled in that program. This document adds a definition 
of ``continuously enrolled'' as meaning being in an enrolled status at 
an educational institution for each day during the ordinary school year 
and for consecutive school years. In this regard, continuity of 
enrollment is not considered broken by holiday vacations, vacation 
periods, periods during the school year between terms, quarters, or 
semesters, or by nonenrollment during periods of enrollment outside the 
ordinary school year (e.g., summer sessions). We believe this is 
consistent with its common meaning and the congressional intent. We 
have also provided in Sec. 21.7620(c)(4) that whether or not a 
reservist is ``enrolled'' will be determined by the regularly 
prescribed standards and practices of the educational institution 
offering the course or unit subject. Further, in determining whether 
payment may be made for a nonaccredited course or unit subject offered 
entirely or partly by independent study, we interpret the term 
``independent study program'', consistently with the definition of 
independent study found in Sec. 21.4267, to mean a course or unit 
subject that is offered entirely or partly by independent study as well 
as an entire program of education of which such nonaccredited course or 
unit subject is a required part. We believe that our use of the terms 
``enrolled'' and ``independent study program'' are consistent with 
congressional intent.
    Public Law 102-484 provided exceptions to the general rule that on 
the date a reservist ceases to be in the Selected Reserve, the 
reservist loses eligibility for educational assistance under the 
Montgomery GI Bill--Selected Reserve program. However, as noted above, 
these exceptions do not apply to a reservist who ceases to be a 
reservist because the Secretary of a military department needs to 
reduce the number of members in certain grades or who have completed a 
certain number of years of service, or the number of members who 
possess certain military skills or are serving in designated 
competitive categories. For such a reservist, VA will determine which 
of the rules concerning the ending dates of eligibility apply to the 
reservist. (For example, the rules concerning discharge for disability, 
leaving the Selected Reserves in the middle of a school term, etc., may 
apply to such a reservist). In this regard, Sec. 21.7550 is amended to 
provide that if more than one rule applies, VA will apply the one that 
is the most advantageous to the reservist. We believe that this 
interpretation is in agreement with congressional intent.
    Public Law 102-568 sets forth criteria for measuring full-time 
enrollment for trade courses, technical courses, and undergraduate 
courses. These courses are measured by the educational institution on 
either a clock-hour or a credit-hour basis. The current regulations 
already set forth formulas for converting clock hours into credit 
hours, and vice versa. In our view, the provisions of Public Law 102-
568 require that all hours be measured consistent with the statutory 
measurement criteria applicable to the primary institution. 
Accordingly, the regulations at Sec. 21.7673 are amended to reflect 
this requirement.
    As noted above, Public Law 103-446 contains a provision that 
requires any entity offering an alternative teacher certification 
program to be considered to be an educational institution for VA 
purposes during the period beginning on November 2, 1994, and ending on 
September 30, 1996. This final rule defines ``alternative teacher 
certification program'' as follows:

    The term alternative teacher certification program, for the 
purposes of determining whether an entity offering such a program is 
a school, educational institution, or institution [as elsewhere 
defined in this section], means a program leading to a teacher's 
certificate that allows individuals with a bachelor's degree or 
graduate degree to obtain teacher certification without enrolling in 
an institution of higher learning.

    We believe this is consistent with the congressional intent.
    As noted above, under the provisions of Public Law 102-568 payments 
of educational assistance could under certain circumstances be 
terminated for reservists enrolled in a nonaccredited independent study 
course. This document provides that educational assistance would 
terminate from the date the course loses accreditation. VA believes 
that usually the State approving agency would make its date of 
withdrawal of approval effective on the date of the loss of 
accreditation. Rather than have VA continue to pay benefits to someone 
while waiting for a State approving agency to act, only to have those 
payments become an overpayment when the SAA formally withdraws approval 
retroactively to the effective date of the loss of accreditation, this 
final rule provides that the effective date of termination of payment 
of educational assistance for pursuit of such a course is the date on 
which the course loses its accreditation. VA believes this approach 
accords with the intent of the statutory prohibition concerning payment 
for nonaccredited independent study courses.

Other Nonsubstantive Changes

    Further, this final rule makes nonsubstantive changes to correct 
typographical errors, to clarify provisions, and to update legal 
citations.

Dates of Application

    Restatements of statute and statutory interpretations made by this 
final rule will be applied retroactively from the effective dates of 
the statutory provisions. The dates of application for such changes and 
for certain of the nonsubstantive changes made for clarity, to correct 
typographical errors, or to reflect statutory recodification changes 
are as follows:

December 18, 1989: Secs. 21.7639(a); 21.7640(a)(2); 21.7642 (a)(7), 
(a)(8), and (a)(9); 21.7653; 21.7654; and 21.7672(d).
May 1, 1990: Sec. 21.7645 (a), (b), (c), (d), (e)(1), (f), (g), and 
(h).
September 30, 1990: Secs. 21.7520(b)(19)(i)(E); 21.7576 (a)(1), (b)(5), 
and (b)(7); 21.7620 (b)(1)(i), (b)(1)(ii)(A), (B), (C), and (D), and 
(2);

[[Page 29300]]

21.7639(i); 21.7640(a)(5); and 21.7670(b).
October 1, 1990: Secs. 21.7520 (b)(1), (b)(17), (b)(19)(i)(A), (B), 
(C), and (D), and (ii), (b)(20), (b)(23)(i), (ii), and (iii), (b)(30), 
(b)(31), and (b)(32); 21.7540 (a) and (b); 21.7576 (a)(2), (a)(3), 
(a)(4), (b)(1), (b)(2), (b)(3), (b)(4), and (b)(6); 21.7612; 21.7622 
(f)(1), (f)(2), (f)(4)(i), (ii), (iii), (iv), and (v); 21.7624; 
21.7631(a)(1) and headings for paragraphs (b) and (c); 21.7635 (b)(3), 
(b)(4), (b)(5), and (r); 21.7636(a)(2)(ii) and (b); 21.7639(f), (g), 
(h), (j), and (k); 21.7640 (a)(1), (a)(3), (a)(4), and (b)(1); 21.7674; 
21.7700(a); 21.7720 (a) and (b); 21.7722 (a)(1) and (a)(2); and 
21.7722(b).
October 23, 1992: Secs. 21.7550; 21.7631(g); 21.7635 (w) and (x); 
21.7642(e)(2); and 21.7700(f).
October 29, 1992: Secs. 21.7520 (b)(11) and (b)(34); 21.7620(c); 
21.7622(f)(4)(vi); 21.7635 (a) and (v); 21.7645(e)(2); 21.7670(f); 
21.7700(g); 21.7722(a)(3); and the removal of Sec. 21.7670(d).
July 1, 1993: Secs. 21.7672 (b)(1), (b)(3), (b)(4), (b)(5), (c), (e), 
and (f); and 21.7673.
November 30, 1993: Secs. 21.7620(d); 21.7622(f)(3); 21.7670, heading 
and introductory text; and 21.7622, introductory text and the removal 
of Sec. 21.7722, introductory text, and paragraphs (c), (d), (e), (f), 
(g), (h) (i), (j), (k), (l), (m), (n), and (o).
October 1, 1994: Sec. 21.7620(b)(1)(ii)(E).
November 2, 1994: Secs. 21.7520(b)(23)(iv) and (b)(35); and 21.7700, 
introductory text.

    The effective date for Sec. 21.7636(a)(1) and (a)(3) is June 10, 
1996. However, VA will apply the rates stated in those paragraphs 
retroactively to training completed in the past as stated in those 
paragraphs.
    The amendments to the following are for clarification and for the 
purpose of eliminating typographical errors, or are authority 
citations: Secs. 21.7639 section heading, (b)(1), and (e); 
21.7642(a)(6); and 21.7700, authority citation. The effective date of 
these provisions is June 10, 1996.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act, the information 
collection or recordkeeping requirements included, in whole or in part, 
in this final rule have been approved by the Office of Management and 
Budget (OMB) under OMB control numbers 2900-0073, 2900-0552, and 2900-
0553 (see Secs. 21.7640, 21.7653, and 21.7654).
    As noted above, the proposed reporting requirements for 
verification of pursuit, which were approved under OMB control number 
2900-0553, are not adopted for reservists in courses leading to a 
standard college degree. The reporting burden per response will not 
change. However, fewer reservists will be required to report.
    Under the Paperwork Reduction Act of 1995, no persons are required 
to respond to a collection of information unless it displays a valid 
OMB control number. The valid OMB control numbers assigned to the 
collections of information in these final regulations are displayed at 
the end of the affected sections of the regulations.

Administrative Procedure Act

    In addition to the adoption of provisions based on the proposed 
rule, this final rule consists of changes not subject to the notice and 
comment provisions of 5 U.S.C. 553, i.e., interpretive rules and 
nonsubstantive changes.

Regulatory Flexibility Act

    The Secretary of Defense, the Commandant of the Coast Guard, and 
the Secretary of Veterans Affairs hereby certify that this final rule 
will not have a significant economic impact on a substantial number of 
small entities as they are defined in the Regulatory Flexibility Act, 5 
U.S.C. 601-612. This final rule in large part directly affects only 
individuals. Although it is possible that a small-entity (small-entity 
school) could be affected by this rulemaking, the number of individuals 
affected at the school would in all likelihood be an insignificant 
portion of the student body. Pursuant to 5 U.S.C. 605(b), this final 
rule, therefore, is exempt from the initial and final regulatory 
flexibility analyses requirements of Secs. 603 and 604.

Catalog of Federal Domestic Assistance

    There is no Catalog of Federal Domestic Assistance number for the 
program affected by this final rule.

List of Subjects in 38 CFR Part 21

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

    Approved: May 17, 1996.
Jesse Brown,
Secretary of Veterans Affairs.

    Approved: May 29, 1996.
Al H. Bemis,
Deputy Assistant Secretary of Defense for Reserve Affairs (M&P).

    Approved: May 31, 1996.
R.M. Larrabee,
Rear Admiral, U.S. Coast Guard, Director of Reserve and Training.

    For the reasons set out in the preamble, 38 CFR part 21 (subpart L) 
is amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

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

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

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

    2. In Sec. 21.7520, paragraph (b)(11) is amended by removing 
``Sec. 21.4280(c)'' and adding, in its place, ``Sec. 21.4267(b)''; and 
paragraphs (b)(1), (b)(17), (b)(19), (b)(20), and (b)(23) are revised, 
and paragraphs (b)(30), (b)(31), (b)(32), (b)(33), and (b)(35) are 
added, to read as follows:


Sec. 21.7520  Definitions.

* * * * *
    (b) Other definitions. (1) Attendance. The term attendance means 
the presence of a reservist--
    (i) In the class where the approved course in which he or she is 
enrolled is taught;
    (ii) At a training establishment; or
    (iii) In any other place of instruction, training, or study 
designated by the educational institution or training establishment 
where the reservist is enrolled and is pursuing a program of education.

(Authority: 10 U.S.C. 2131(c)(1), 2136(b); 38 U.S.C. 3474; sec. 
705(a)(1), Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642, Pub. L. 
101-189, 103 Stat. 1456-1458)
* * * * *
    (17) Program of education. A program of education--
    (i) Is any unit course or subject or combination of unit courses or 
subjects pursued by a reservist at an educational institution, required 
by the Administrator of the Small Business Administration as a 
condition to obtaining financial assistance under the provisions of 15 
U.S.C. 636; or
    (ii) Is a combination of subjects or unit courses pursued at an 
educational institution, which combination is

[[Page 29301]]

generally accepted as necessary to meet requirements for a 
predetermined educational, professional, or vocational objective. It 
may consist of subjects or courses which fulfill requirements for more 
than one objective if all objectives pursued are generally recognized 
as being related to a single career field; and
    (iii) Includes an approved full-time program of apprenticeship or 
of other on-job training.

(Authority: 10 U.S.C. 2131; 38 U.S.C. 3452(b); sec. 705(a)(1), Pub. 
L. 98-525, 98 Stat. 2565, 2567; secs. 642(a), (b), (d), 645, Pub. L. 
101-189, 103 Stat. 1456-1458)
* * * * *
    (19) Pursuit.
    (i) The term pursuit means work, while enrolled, toward the 
objective of a program of education. This work must be in accordance 
with approved institutional policy and regulations, and with applicable 
criteria of 10 U.S.C. and 38 U.S.C.; must be necessary to reach the 
program's objective; and must be accomplished through--
    (A) Resident courses;
    (B) Independent study;
    (C) Correspondence courses;
    (D) An apprenticeship or other on-job training program; or
    (E) Flight courses.

(Authority: 10 U.S.C 2131, 2136; 38 U.S.C. 3680(g); sec. 705(a)(1), 
Pub. L. 98-525, 98 Stat. 2565, 2567; secs. 642, 645, Pub. L. 101-
189, 103 Stat. 1456-1458)

    (ii) VA will consider a reservist who qualifies for payment during 
an interval, school closing, or holiday vacation to be in pursuit of a 
program of education during the interval, school closing, or holiday 
vacation.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(g); sec. 705(a)(1), 
Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642(c), (d), Pub. L. 101-
189, 103 Stat. 1457-1458)

    (20) Refresher course. The term refresher course means either:
    (i) A course at the elementary or secondary level to review or 
update material previously covered in a course that has been 
satisfactorily completed; or
    (ii) A course which permits an individual to update knowledge and 
skills or be instructed in the technological advances which have 
occurred in the reservist's field of employment since his or her entry 
on active duty and which is necessary to enable the individual to 
pursue an approved program of education.

(Authority: 10 U.S.C. 2131(b), (c); sec. 705(a)(1), Pub. L. 98-525, 
98 Stat. 2565; secs. 642(a), (b), (d), 645(a), (b), Pub. L. 101-189, 
103 Stat. 1456-1458))
* * * * *
    (23) School, educational institution, institution. The terms 
school, educational institution, and institution mean:
    (i) A vocational school or business school;
    (ii) A junior college, teachers' college, college, normal school, 
professional school, university, or scientific or technical 
institution;
    (iii) A public or private elementary school or secondary school 
which offers courses for adults, provided that the courses lead to an 
objective other than an elementary school diploma, a high school 
diploma, or their equivalents; or
    (iv) Any entity, during the period beginning on November 2, 1994, 
and ending on September 30, 1996, other than an institution of higher 
learning, that provides training required for completion of a State-
approved alternative teacher certification program.

(Authority: 10 U.S.C. 2131(a), (c); 38 U.S.C. 3002, 3452; sec. 
705(a)(1), Pub. L. 98-525, 98 Stat. 2565; sec. 642(a), (b), (d), 
Pub. L. 101-189, 103 Stat. 1456-1458)
* * * * *
    (30) Cooperative course. The term cooperative course means a full-
time program of education which consists of institutional courses and 
alternate phases of training in a business or industrial establishment 
with the training in the business or industrial establishment being 
strictly supplemental to the institutional portion.

(Authority: 10 U.S.C. 2131(e); 38 U.S.C. 3686; sec. 642(b), (d), 
Pub. L. 101-189, 103 Stat. 1456-1458)

    (31) Established charge. The term established charge means the 
lesser of--
    (i) The charge for the correspondence course or courses determined 
on the basis of the lowest extended time payment plan offered by the 
educational institution and approved by the appropriate State approving 
agency; or
    (ii) The actual charge to the reservist.

(Authority: 10 U.S.C. 2131(f); sec. 642(b), (d), Pub. L. 101-189, 
103 Stat. 1456-1458)

    (32) Training establishment. The term training establishment means 
any establishment providing apprentice or other on-job training, 
including those under the supervision of a college, university, any 
State department of education, any State apprenticeship agency, any 
State board of vocational education, any joint apprenticeship 
committee, the Bureau of Apprenticeship and Training established in 
accordance with 29 U.S.C. chapter 4C, or any agency of the Federal 
government authorized to supervise such training.

(Authority: 10 U.S.C. 2131(d), 16136(b); 38 U.S.C. 3452(e); sec. 
642(b), (d), Pub. L. 101-189, 103 Stat. 1456-1458)

    (33) Continuously enrolled. The term continuously enrolled means 
being in an enrolled status at an educational institution for each day 
during the ordinary school year, and for consecutive school years. 
Consequently, continuity of enrollment is not broken by holiday 
vacations, vacation periods, periods during the school year between 
terms, quarters, or semesters, or by nonenrollment during periods of 
enrollment outside the ordinary school year (e.g., summer sessions).

(Authority: 10 U.S.C. 16136(b))
* * * * *
    (35) Alternative teacher certification program. The term 
alternative teacher certification program, for the purposes of 
determining whether an entity offering such a program is a school, 
educational institution, or institution as defined in paragraph 
(b)(23)(iv) of this section, means a program leading to a teacher's 
certificate that allows individuals with a bachelor's degree or 
graduate degree to obtain teacher certification without enrolling in an 
institution of higher learning.

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

    3. In Sec. 21.7540, paragraphs (b) and (c) are redesignated as 
paragraphs (c) and (d), respectively; and paragraph (a) is revised, and 
a new paragraph (b) is added, to read as follows:


Sec. 21.7540  Eligibility for educational assistance.

    (a) Basic eligibility requirements. The Armed Forces will determine 
whether a reservist is eligible to receive benefits pursuant to 10 
U.S.C. chapter 1606 (or 10 U.S.C. chapter 106 as in effect before 
December 1, 1994). To be eligible a reservist--
    (1) Shall:
    (i) Enlist, reenlist, or extend an enlistment as a Reserve for 
service in the Selected Reserve so that the total period of obligated 
service is at least six years from the date of such enlistment, 
reenlistment, or extension; or
    (ii) Be appointed as, or be serving as, a reserve officer and agree 
to serve in the Selected Reserve for a period of not less than six 
years in addition to any other period of obligated service in the 
Selected Reserve to which the person may be subject;
    (2) Must complete his or her initial period of active duty for 
training;
    (3) Must be participating satisfactorily in the Selected Reserve; 
and
    (4) Must not have elected to have his or her service in the 
Selected Reserve

[[Page 29302]]

credited toward establishing eligibility to benefits provided under 38 
U.S.C. chapter 30.

(Authority: 10 U.S.C. 2132; 38 U.S.C. 3033(c); sec. 705(a)(1), Pub. 
L. 98-525, 98 Stat. 2565; sec. 4, Pub. L. 100-48, 101 Stat. 331; 
secs. 643, 645, Pub. L. 101-189, 103 Stat. 1458)

    (b) Eligibility requirements for expanded benefits. (1) A reservist 
shall be eligible to pursue all types of training described in subpart 
L of this part regardless of whether he or she has received a 
baccalaureate degree or equivalent evidence of completion of study if--
    (i) After September 30, 1990, he or she takes one of the actions 
described in paragraph (a)(1)(i) or (a)(1)(ii) of this section;
    (ii) The reservist meets the criteria of paragraphs (a)(2) through 
(a)(4) of this section; and
    (iii) The reservist does not have his or her eligibility limited as 
described in paragraph (c) of this section.
    (2) A reservist shall be eligible to pursue all types of training 
described in subpart L of this part except the training described in 
paragraph (b)(3) of this section if--
    (i) After June 30, 1985, but not after September 30, 1990, he or 
she takes one of the actions described in paragraph (a)(1) or (a)(2) of 
this section;
    (ii) The reservist has not received a baccalaureate degree or the 
equivalent evidence of completion of study;
    (iii) The reservist meets all the other eligibility criteria of 
paragraph (a) of this section; and
    (iv) The reservist does not have his or her eligibility limited by 
paragraph (c) of this section.
    (3) The types of training which a reservist described in paragraph 
(b)(1) of this section may pursue, but which may not be pursued by a 
reservist described in paragraph (b)(2), are:
    (i) A course which is offered by an educational institution which 
is not an institution of higher learning (to determine if a nursing 
course is offered by an institution of higher learning, see 
Sec. 21.7622(f));
    (ii) A correspondence course;
    (iii) A program of education leading to a standard college degree 
offered solely by independent study (but see Sec. 21.7622(f) concerning 
enrollment in a nonaccredited independent study course after October 
28, 1992);
    (iv) A refresher, remedial or deficiency course;
    (v) A cooperative course;
    (vi) An apprenticeship or other on-job training; and
    (vii) A flight course.

(Authority: 10 U.S.C. 2131, 2132, 2136; sec. 705(a)(1), Pub. L. 98-
525, 98 Stat. 2565, 2567; secs. 642, 643, 645, Pub. L. 101-189, 103 
Stat. 1456-1458)
* * * * *
    4. In Sec. 21.7550, paragraph (a), introductory text, is revised, 
and paragraph (d) is added, to read as follows:


Sec. 21.7550  Ending dates of eligibility.

    (a) Time limit on eligibility. Except as provided in Sec. 21.7551 
and paragraphs (a)(3), (b), (c), and (d) of this section, a reservist's 
period of eligibility expires effective the earlier of the following 
dates:
* * * * *
    (d) Unit deactivated. (1) Except as provided in paragraph (d)(3) or 
(d)(4) of this section, the period of eligibility of a reservist, 
eligible for educational assistance under this subpart, who ceases to 
be a member of the Selected Reserve during the period beginning October 
1, 1991, and ending September 30, 1999, under either of the conditions 
described in paragraph (d)(2) of this section, will expire on the date 
10 years after the date the reservist becomes eligible for educational 
assistance.
    (2) The conditions referred to in paragraph (d)(1) of this section 
for ceasing to be a member of the Selected Reserve are:
    (i) The deactivation of the reservist's unit of assignment; and
    (ii) The reservist's involuntarily ceasing to be designated as a 
member of the Selected Reserve pursuant to 10 U.S.C. 10143(a).
    (3) The provisions of paragraphs (d)(1) and (d)(2) of this section 
do not apply if the reservist ceases to be a member of the Selected 
Reserve under adverse conditions, as characterized by the Secretary of 
the military department concerned. The expiration of such a reservist's 
period of eligibility will be on the date the reservist ceases, under 
adverse conditions, to be a member of the Selected Reserve.
    (4) A reservist's period of eligibility will expire if he or she is 
a member of a reserve component of the Armed Forces and (after having 
involuntarily ceased to be a member of the Selected Reserve) is 
involuntarily separated from the Armed Forces under adverse conditions, 
as characterized by the Secretary of the military department concerned. 
The expiration of such a reservist's period of eligibility will be on 
the date the reservist is involuntarily separated under adverse 
conditions from the Armed Forces.

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

    5. In Sec. 21.7576, paragraphs (a), (b)(1), and (b)(2) are revised, 
and paragraphs (b)(3), (b)(4), (b)(5), (b)(6), and (b)(7) are added, to 
read as follows:


Sec. 21.7576  Entitlement charges.

    (a) Overview. VA will make charges against entitlement as stated in 
this section. Charges are based upon the principle that a reservist who 
trains full time for one day should be charged one day of entitlement, 
except for those pursuing:
    (1) Flight training;
    (2) Correspondence training;
    (3) Cooperative training; or
    (4) Apprenticeship or other on-job training.

(Authority: 10 U.S.C. 2131(c); sec. 705(a)(1), Pub. L. 98-525, 98 
Stat. 2565; sec. 642(a), (b), (d), Pub. L. 101-189, 103 Stat. 1456-
1458)

    (b) Determining entitlement charge. * * *
    (1) Except for those pursuing flight training, correspondence 
training, cooperative training, apprenticeship or other on-job 
training, VA will make a charge against entitlement--
    (i) On the basis of total elapsed time (one day for each day of 
pursuit for which the reservist is paid educational assistance) if the 
reservist is pursuing the program of education on a full-time basis; or
    (ii) On the basis of a proportionate rate of elapsed time, if the 
reservist is pursuing the program of education on a three-quarter, one-
half, or one-quarter-time basis.
    (2) VA will compute elapsed time from the commencing date of the 
award of educational assistance to the date of discontinuance. If the 
reservist changes his or her training time after the commencing date of 
the award, VA will--
    (i) Divide the enrollment period into separate periods of time 
during which the reservist's training time remains constant; and
    (ii) Compute the elapsed time separately for each time period.
    (3) For each month that a reservist is paid a monthly educational 
assistance allowance while undergoing apprenticeship or other on-job 
training, VA will make a charge against entitlement of--
    (i) .75 of a month in the case of payments made during the first 
six months of the reservist's pursuit of the program of apprenticeship 
or other on-job training;
    (ii) .55 of a month in the case of payments made during the second 
six months of the reservist's pursuit of the program of apprenticeship 
or other on-job training; and
    (iii) .35 of a month in the case of payments made following the 
first

[[Page 29303]]

twelve months of the reservist's pursuit of the program of 
apprenticeship or other on-job training.
    (4) When a reservist is pursuing a program of education by 
correspondence, VA will make a charge against entitlement for each 
payment made to him or her. The charge will be made in months and 
decimal fractions of a month, as determined by dividing the amount of 
the payment by an amount equal to the rate stated in Sec. 21.7636(a)(1) 
as the rate otherwise applicable to the reservist for full-time 
training.
    (5) When a reservist is pursuing a program of education partly in 
residence and partly by correspondence, VA will make a charge against 
entitlement--
    (i) For the residence portion of the program as provided in 
paragraphs (b)(1) and (b)(2) of this section; and
    (ii) For the correspondence portion of the program as provided in 
paragraph (b)(4) of this section.
    (6) When a reservist is pursuing a program of education through 
cooperative training, VA will make a charge against entitlement of .8 
of a month for each month in which the reservist is receiving payment 
at the rate for cooperative training. If the reservist is pursuing 
cooperative training for a portion of a month, VA will make a charge 
against entitlement on the basis of total elapsed time (.8 of a day for 
each day of pursuit).

(Authority: 10 U.S.C. 2131(c), (d); sec. 705(a)(1), Pub. L. 98-525, 
98 Stat. 2565; sec. 642(b), (d), Pub. L. 101-189, 103 Stat. 1456-
1458)

    (7) When a reservist is pursuing a program of education through 
flight training, VA will make a charge against entitlement at the rate 
of one month for each amount equal to the monthly rate stated in 
Sec. 21.7636(a)(1) as applicable for the month in which the training 
occurred.

(Authority: 10 U.S.C. 16136(c))
* * * * *
    6. In Sec. 21.7612, the introductory text and paragraph (a) are 
revised to read as follows:


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

    An approved program may consist of courses offered by two 
educational institutions concurrently, or courses offered through class 
attendance and by television concurrently. An educational institution 
may contract the actual training to another educational institution, 
provided the course is approved by the State approving agency having 
approval jurisdiction over the educational institution actually 
providing the training.
    (a) Concurrent enrollment. When a reservist cannot schedule his or 
her complete program at one educational institution, VA may approve a 
program of concurrent enrollment. When requesting such a program, the 
reservist must show that his or her complete program of education is 
not available at the educational institution in which he or she will 
pursue the major portion of his or her program (the primary educational 
institution), or that it cannot be scheduled within the period in which 
he or she plans to complete his or her program. A reservist who is 
limited in the types of courses he or she may pursue, as provided in 
Sec. 21.7540 (b)(2) and (b)(3), may pursue courses only at an 
institution of higher learning. If such a reservist cannot complete his 
or her program at one institution of higher learning, VA may approve a 
concurrent enrollment only if both the educational institutions the 
reservist enrolls in are institutions of higher learning.

(Authority: 10 U.S.C. 2131(c), 2136(b); 38 U.S.C. 3680(g); sec. 
705(a)(1), Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642, Pub. L. 
101-189, 103 Stat. 1456-1458)
* * * * *
    7. In Sec. 21.7620, paragraph (a) is amended by removing 
``21.7520(n) of this part'' and adding, in its place, 
``21.7520(b)(17)''; and paragraphs (b) and (c) are revised, and 
paragraph (d) is added, to read as follows:


Sec. 21.7620  Courses included in programs of education.

* * * * *
    (b) Flight training. (1) VA may pay educational assistance for an 
enrollment in a flight training course when--
    (i) An institution of higher learning offers the course for credit 
toward the standard college degree the reservist is pursuing; or
    (ii) When:
    (A) The reservist is eligible to pursue flight training as provided 
in Sec. 21.7540(b)(1) and (b)(3);
    (B) The State approving agency has approved the course;
    (C) A flight school is offering the course;
    (D) The reservist's training meets the requirements of 
Sec. 21.4263(b)(1);
    (E) The reservist meets the requirements of Sec. 21.4263(a); and
    (F) The training for which payment is made occurs after September 
29, 1990.
    (2) VA will not pay educational assistance for an enrollment in a 
flight training course when the reservist is pursuing an ancillary 
flight objective.

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

    (c) Independent study. (1) VA will pay educational assistance to a 
reservist who is limited in the types of courses he or she may pursue, 
as provided in Sec. 21.7540(b)(2) and (b)(3), for an enrollment in any 
course or unit subject offered by independent study only when the 
reservist is enrolled concurrently in one or more courses or unit 
subjects offered by resident training.
    (2) Only a reservist who meets the requirements of 
Sec. 21.7540(b)(1) may be paid educational assistance for an enrollment 
in an independent study course or unit subject leading to a standard 
college degree without a simultaneous enrollment in a course or unit 
subject offered by resident training.
    (3) Except as provided in paragraph (c)(4) of this section and 
subject to the restrictions found in paragraph (c)(1) of this section, 
effective October 29, 1992, VA may pay educational assistance to a 
reservist who is enrolled in a nonaccredited course or unit subject 
offered entirely or partly by independent study only if--
    (i) Successful completion of the nonaccredited course or unit 
subject is required in order for the reservist to complete his or her 
program of education and the reservist:
    (A) Was receiving educational assistance on October 29, 1992, for 
pursuit of the program of education of which the nonaccredited 
independent study course or unit subject forms a part; and
    (B) Has remained continuously enrolled in the program of education 
of which the nonaccredited independent study course or unit subject 
forms a part from October 29, 1992, to the date the reservist enrolls 
in the nonaccredited independent study course or unit subject; or
    (ii)(A) Was enrolled in and receiving educational assistance for 
the nonaccredited independent study course or unit subject on October 
29, 1992; and
    (B) Remains continuously enrolled in that course or unit subject.
    (4) Whether or not the reservist is enrolled will be determined by 
the regularly prescribed standards and practices of the educational 
institution offering the course or unit subject.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680A(a)(4); sec. 313(b), 
Pub. L. 102-568, 106 Stat. 4332)

    (d) Graduate study. VA will pay educational assistance for an 
enrollment in a course or subject leading to a

[[Page 29304]]

graduate degree or certificate when the training occurs after November 
29, 1993.

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

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


Sec. 21.7622  Courses precluded.

* * * * *
    (f) Other courses. (1) A reservist who is limited in the types of 
courses he or she may pursue, as provided in Sec. 21.7540(b)(2) and 
(b)(3), may not receive any educational assistance for pursuit of any 
of the types of training listed in Sec. 21.7540(b)(3).
    (2) VA will not consider the hospital or field work phase of a 
nursing course, including a course leading to a degree in nursing, to 
be provided by an institution of higher learning unless--
    (i) The hospital or fieldwork phase is an integral part of the 
course;
    (ii) Completion of the hospital or fieldwork phase of the course is 
a prerequisite to the successful completion of the course;
    (iii) The student remains enrolled in the institution of higher 
learning during the hospital or fieldwork phase of the course; and
    (iv) The training is under the direction and supervision of the 
institution of higher learning.
    (3) A reservist who is limited in the types of courses he or she 
may pursue, as provided in Sec. 21.7540(b)(2) and (b)(3), may not 
receive educational assistance for an enrollment in a course pursued 
after the reservist has completed the course of instruction required 
for the award of a baccalaureate degree or the equivalent evidence of 
completion of study, unless the reservist is pursuing a course or 
courses leading to a graduate degree or graduate certificate. Such a 
reservist may receive educational assistance while pursuing a course or 
courses leading to a graduate degree or graduate certificate (subject 
to the restrictions in Sec. 21.7620(d)). Equivalent evidence of 
completion of study may include, but is not limited to, a copy of the 
reservist's transcript showing that he or she has received passing 
grades in all courses needed to obtain a baccalaureate degree at the 
institution of higher learning which he or she has been attending.
    (4) No reservist may receive payment of educational assistance from 
VA for:
    (i) An audited course (see Sec. 21.4252(i));
    (ii) A new enrollment in a course during a period when approval has 
been suspended by a State approving agency or VA;
    (iii) Pursuit of a course by a nonmatriculated student except as 
provided in Sec. 21.4252(l);
    (iv) An enrollment in a course at an educational institution for 
which the reservist is an official of such institution authorized to 
sign certificates of enrollment under 10 U.S.C. chapter 1606;
    (v) A new enrollment in a course which does not meet the veteran-
nonveteran ratio requirement as computed under Sec. 21.4201; or
    (vi) Except as provided in Sec. 21.7620(c), an enrollment in a 
nonaccredited independent study course.

(Authority: 10 U.S.C. 16131(c), 16136(b); 38 U.S.C. 3672(a), 3676, 
3680(a); sec. 642(d), Pub. L. 101-189, 103 Stat. 1458)

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


Sec. 21.7624  Overcharges and restrictions on enrollments.

    (a) Overcharges. VA may disapprove an educational institution for 
further enrollments when the educational institution charges or 
receives from a reservist tuition and fees that exceed the established 
charges which the educational institution requires from similarly 
circumstanced nonreservists enrolled in the same course.

(Authority: 10 U.S.C. 2136; 38 U.S.C. 3690; sec. 705(a)(1), Pub. L. 
98-525, 98 Stat. 2565, 2567; secs. 642 (c), (d), 645(a)(1), Pub. L. 
101-189, 103 Stat. 1457-1458)

    (b) Restriction on enrollments. The provisions of Sec. 21.4202(b) 
apply to any determination by VA as to whether to impose restrictions 
on approval of enrollments and whether to discontinue payments to 
reservists already enrolled at an educational institution.

(Authority: 10 U.S.C. 2136; 38 U.S.C. 3690(b); sec. 705(a)(1), Pub. 
L. 98-525, 98 Stat. 2565, 2567; secs. 642 (c), (d), 645(a)(1), Pub. 
L. 101-189, 103 Stat. 1457-1458)

    10. In Sec. 21.7631, paragraph (a)(1) and the headings for 
paragraphs (b) and (c) are revised, and paragraph (g) is added, to read 
as follows:


Sec. 21.7631  Commencing dates.

* * * * *
    (a) * * *
    (1) The date the educational institution certifies under paragraph 
(b) or (c) of this section.
* * * * *
    (b) Certification by educational institution--course or subject 
leads to a standard college degree.
* * * * *
    (c) Certification by educational institution--course does not lead 
to a standard college degree.
* * * * *
    (g) Service Members Occupational Conversion and Training Act of 
1992. If the reservist's educational assistance has been barred or has 
been discontinued because the reservist is training under a job 
training program for which benefits are payable to his or her employer 
under the Service Members Occupational Conversion and Training Act of 
1992, VA will begin or resume paying educational assistance to the 
reservist effective the first day following the last date for which 
benefits are payable under that Act.

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

    11. In Sec. 21.7635, paragraph (v) is redesignated as paragraph 
(x); and paragraph (a) is revised, paragraphs (b)(3), (b)(4), and 
(b)(5) are added, paragraph (r) is revised, and paragraphs (v) and (w) 
are added, to read as follows:


Sec. 21.7635  Discontinuance dates.

 * * * * *
    (a) Death of reservist. (1) If the reservist receives an advance 
payment and dies before the end of the period covered by the advance 
payment, the discontinuance date of educational assistance shall be the 
last date of the period covered by the advance payment.
    (2) In all other cases if the reservist dies while pursuing a 
program of education, the discontinuance date of educational assistance 
shall be the last date of attendance.

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

    (b) * * *
    (3) When a reservist withdraws from a correspondence course, VA 
will terminate educational assistance effective the date the last 
lesson is serviced.
    (4) When a reservist withdraws from an apprenticeship or other on-
job training, VA will terminate educational assistance effective the 
date of last training.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(a); sec. 705(a)(1), 
Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-
189, 103 Stat. 1457-1458)

    (5) When a reservist withdraws from flight training, VA will 
terminate educational assistance effective the date of last 
instruction.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(a); sec. 705(a)(1), 
Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-
189, 103 Stat. 1457-1458)
* * * * *
    (r) Completion of baccalaureate instruction. If a reservist who is 
limited in the types of courses he or she may pursue, as provided in 
Sec. 21.7540 (b)(2) and (b)(3), completes a course of instruction 
required for the award of a

[[Page 29305]]

baccalaureate degree or the equivalent evidence of completion of study 
(see Sec. 21.7622(f)), VA will discontinue educational assistance 
effective the day after the date upon which the required course of 
instruction was completed.

(Authority: 10 U.S.C. 2131; sec. 705(a)(1), Pub. L. 98-525, 98 Stat. 
2565; secs. 642 (a), (b), (d), 645(a), (b), Pub. L. 101-189, 103 
Stat. 1456-1458)
* * * * *
    (v) Independent study course loses accreditation. If the reservist 
is enrolled in a course offered in whole or in part by independent 
study, and the course loses its accreditation (or the educational 
institution offering the course loses its accreditation), the date of 
reduction or discontinuance will be the effective date of the 
withdrawal of accreditation by the accrediting agency, unless the 
provisions of Sec. 21.7620 (c)(3) or (c)(4) apply.

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

    (w) Service Members Occupational Conversion and Training Act of 
1992. If a reservist enters a training program for the purpose of 
obtaining assistance under the Service Members Occupational Conversion 
and Training Act of 1992, the effective date of discontinuance of 
educational assistance shall be the date on which the reservist entered 
the job training program.

(Authority: Sec. 4492(a), Pub. L. 102-484, 106 Stat. 2765-2766)
* * * * *
    12. Section 21.7636 is revised, to read as follows:


Sec. 21.7636  Rates of payment.

    (a) Monthly rate of educational assistance. (1) Except as otherwise 
provided in this section and in Sec. 21.7639, the monthly rate of 
educational assistance payable to a reservist is the amount stated in 
this table:

----------------------------------------------------------------------------------------------------------------
                                                                                 Training time                  
                Period of pursuit of training                ---------------------------------------------------
                                                               Full-time     3/4 time     1/2 time     1/4 time 
----------------------------------------------------------------------------------------------------------------
Oct. 1, 1990-Sept. 30,1991..................................      $140.00      $105.00       $70.00       $35.00
Oct. 1, 1991-Mar. 31, 1993..................................       170.00       128.00        85.00        43.00
Apr. 1, 1993-Sept. 30, 1994.................................       190.00       143.00        95.00        48.00
Oct. 1, 1994-Sept. 30, 1995.................................       192.32       144.74        96.16        48.08
On and after Oct. 1, 1995...................................       197.90       148.42        98.95        49.47
----------------------------------------------------------------------------------------------------------------

    (2) The monthly rate of basic educational assistance payable to a 
reservist who is pursuing an apprenticeship or other on-job training 
full time is the rate stated in these tables:
    (i)

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate                   
                                                             ---------------------------------------------------
                       Training period                          Oct. 1,      Oct. 1,      Apr. 1,      Oct. 1,  
                                                               1990-Sept.   1991-Mar.    1993-Sept.   1994-Sept.
                                                                30, 1991     31, 1993     30, 1994     30, 1995 
----------------------------------------------------------------------------------------------------------------
First six months of pursuit of training.....................      $105.00      $127.50      $142.50       144.24
Second six months of pursuit of training....................        77.00        93.50       104.50       105.78
Remaining pursuit of training...............................        49.00        59.50        66.50        67.31
----------------------------------------------------------------------------------------------------------------


------------------------------------------------------------------------
                                                            Monthly rate
                      Training period                       On and after
                                                            Oct. 1, 1995
------------------------------------------------------------------------
First six months of pursuit of training...................       $148.42
Second six months of pursuit of training..................        108.94
Remaining pursuit of training.............................         69.26
------------------------------------------------------------------------

    (ii) Full-time training will consist of the number of hours which 
constitute the standard workweek of the training establishment, but not 
less than 30 hours unless a lesser number of hours is established as 
the standard workweek for the particular establishment through bona 
fide collective bargaining between employers and employees.
    (3) The monthly rate of educational assistance payable to a 
reservist who is pursuing a cooperative course is the rate stated in 
this table:

------------------------------------------------------------------------
Oct. 1, 1990-  Oct. 1, 1991-  Apr. 1, 1993-  Oct. 1, 1994-              
  Sept. 30,    Mar. 31, 1993    Sept. 30,      Sept. 30,    On and after
     1991                          1994           1995      Oct. 1, 1995
------------------------------------------------------------------------
$112.00......       $136.00        $152.00        $153.86        $158.32
------------------------------------------------------------------------

(Authority: 10 U.S.C. 16131(b), (c); sec. 12009(c), Pub. L. 103-66, 
107 Stat. 416)

    (b) Limitations on payments. VA may withhold final payment until VA 
receives proof of the reservist's enrollment and adjusts the 
reservist's account.

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

    13. In Sec. 21.7639, paragraph (b)(1) introductory text is amended 
by removing the second sentence; the heading of paragraph (e) is 
amended by removing ``Payment for independent'' and adding, in its 
place, ``Independent''; and the section heading, paragraph (a) 
introductory text, the authority citation for paragraph (a), and 
paragraph (f) are revised, and paragraphs (g) through (k) are added, to 
read as follows:


[[Page 29306]]




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

* * * * *
    (a) Absences. A reservist enrolled in a course not leading to a 
standard college degree will have his or her educational assistance 
reduced for any day of absence which occurs before December 18, 1989, 
and which exceeds the maximum allowable absences permitted in this 
paragraph.
* * * * *
(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680; sec. 705(a)(1), Pub. 
L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-189, 
103 Stat. 1457-1458)
* * * * *
    (f) Independent study. (1) A reservist pursuing only independent 
study and whose enrollment begins before July 1, 1993, shall be paid 
educational assistance at the quarter-time rate regardless of the 
number of credit hours the reservist may be pursuing.
    (2) A reservist pursuing only independent study and whose 
enrollment begins after June 30, 1993, shall be paid educational 
assistance on the basis of his or her training time.
    (3) No payments may be made to a reservist who is limited in the 
types of courses he or she may pursue, as provided in 
Sec. 21.7540(b)(2) and (b)(3), and who is pursuing independent study 
unless he or she is concurrently pursuing one or more courses offered 
through resident training at an institution of higher learning.

(Authority: 10 U.S.C. 2131; 10 U.S.C. 2136(b); 38 U.S.C. 3532, 3532 
note, 3680; sec. 705(a)(1), Pub. L. 98-525, 98 Stat. 2565, 2567; 
secs. 642, 645 (a), (b), Pub. L. 101-189, 103 Stat. 1457-1458)

    (g) Payment for correspondence courses. A reservist who is pursuing 
a correspondence course or the correspondence portion of a 
correspondence-residence course shall be paid 55 percent of the 
established charge which the educational institution requires 
nonreservists to pay for the lessons--
    (1) Which the reservist has completed;
    (2) Which the educational institution has serviced; and
    (3) For which payment is due.

(Authority: 10 U.S.C. 2131(f); sec. 642 (b), (d), Pub. L. 101-189, 
103 Stat. 1456-1458)

    (h) Failure to work sufficient hours of apprenticeship and other 
on-job training. (1) For any calendar month in which a reservist 
pursuing an apprenticeship or other on-job training program fails to 
complete 120 hours of training, VA shall reduce the rates specified in 
Sec. 21.7636(a)(2) proportionately. In this computation, VA shall round 
the number of hours worked to the nearest multiple of eight.
    (2) For the purpose of this paragraph, hours worked include only--
    (i) The training hours the reservist worked; and
    (ii) All hours of the reservist's related training which occurred 
during the standard workweek and for which the reservist received 
wages. (See Sec. 21.7636(a)(2)(ii) as to the requirements for full-time 
training.)

(Authority: 10 U.S.C. 2131(d)(2); sec. 642 (b), (d), Pub. L. 101-
189, 103 Stat. 1456-1458)

    (i) Flight training course. A reservist who is pursuing a flight 
training course shall be paid 60 percent of the established charge for 
tuition and fees (other than tuition and fees charged for or 
attributable to solo flying hours) which the flight school requires 
similarly circumstanced nonreservists enrolled in the same course to 
pay.

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

    (j) Membership in the Senior Reserve Officers' Training Corps. A 
reservist may not receive educational assistance for any period for 
which he or she receives financial assistance under 10 U.S.C. 2107 as a 
member of the Senior Reserve Officers' Training Corps.

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

    (k) Course not offered by an institution of higher learning or not 
leading to an identifiable educational, professional, or vocational 
objective. A reservist who is limited in the types of courses he or she 
may pursue, as described in Sec. 21.7540(b)(2) and (b)(3), may not 
receive educational assistance for instruction in a program of 
education unless it is offered at an institution of higher learning. 
The instruction must lead to an identifiable educational, professional, 
or vocational objective, but does not have to lead to a standard 
college degree.

(Authority: 10 U.S.C. 2131(b), 2136(b); sec. 705(a)(1), Pub. L. 98-
525, 98 Stat. 2565, 2567; secs. 642 (b)(1), (c), (d), 645(a), (b), 
Pub. L. 101-189, 103 Stat. 1456-1458)

    14. In Sec. 21.7640, paragraph (d)(1) introductory text is amended 
by removing ``institution of higher learning'' and adding, in its 
place, ``educational institution''; and the section heading and 
paragraph (a) are revised, to read as follows:


Sec. 21.7640  Release of payments.

    (a) Payments are dependent upon certifications, reports, and 
verifications of pursuit. When certifications, reports, or 
verifications of pursuit are mentioned in this paragraph, the 
certifications, reports, and verifications of pursuit are to be made in 
the form prescribed by the Secretary of Veterans Affairs.

    (1) VA will pay educational assistance to a reservist who is 
pursuing a standard college degree only after the educational 
institution has certified his or her enrollment.

    (2) VA will pay educational assistance to a reservist who is 
pursuing a course not leading to a standard college degree (other than 
a correspondence course, a course of flight training, or an 
apprenticeship or other on-job training) only after:

    (i) The educational institution has certified his or her enrollment 
in the form prescribed by the Secretary of Veterans Affairs; and

    (ii) VA has received a report by the reservist, which report is 
endorsed by the educational institution, of--

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

    (B) A verification of pursuit from the reservist of training that 
occurred on or after December 18, 1989.

    (3) VA will pay educational assistance to a reservist pursuing a 
program of apprenticeship or other on-job training only after:

    (i) The training establishment has certified his or her enrollment 
in the training program in the form prescribed by the Secretary of 
Veterans Affairs; and

    (ii) VA has received certification by the reservist and the 
training establishment of the reservist's hours worked.

    (4) VA will pay educational assistance to a reservist who is 
pursuing a correspondence course only after:

    (i) The educational institution has certified his or her enrollment 
in the form prescribed by the Secretary of Veterans Affairs; and

    (ii) VA has received a certification by the reservist, which 
certification is endorsed by the educational institution, as to the 
number of lessons completed and serviced by the educational 
institution.
    (5) VA will pay educational assistance to a reservist who is 
pursuing a flight course only after:
    (i) The educational institution certifies the reservist's 
enrollment in the form prescribed by the Secretary of Veterans Affairs; 
and
    (ii) VA has received a report by the reservist of the flight 
training the reservist has completed, which report is endorsed by the 
educational institution.


[[Page 29307]]


(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680)
* * * * *
    15. In Sec. 21.7642, paragraph (a)(6) is amended by removing ``38'' 
and adding, in its place, ``10''; paragraph (d)(3) is amended by 
removing ``during any period that full salary is being paid to him or 
her as an employee of the United States''; and paragraphs (a)(7) and 
(a)(8) are revised, and paragraphs (a)(9) and (e) are added, to read as 
follows:


Sec. 21.7642  Nonduplication of educational assistance.

    (a) * * *
    (7) Section 903 of the Department of Defense Authorization Act, 
1981;
    (8) The Hostage Relief Act of 1980; or
    (9) The Omnibus Diplomatic Security Act of 1986.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3695; sec. 705(a)(1), Pub. 
L. 98-525, 98 Stat. 2565, 2567; secs. 642(c), (d), Pub. L. 101-189, 
103 Stat. 1457-1458)
* * * * *
    (e) Service Members Occupational Conversion and Training Act of 
1992. A reservist may not receive educational assistance under the 
Montgomery GI Bill--Selected Reserve program during the period for 
which benefits are payable under the Service Members Occupational 
Conversion and Training Act of 1992.

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

    16. Section 21.7645 is added, immediately after the cross-reference 
that follows Sec. 21.7644, to read as follows:


Sec. 21.7645  Work-study allowance.

    (a) Eligibility. Reservists pursuing three-quarter-time or full-
time programs of education or training under 10 U.S.C. chapter 1606 are 
eligible to receive a work-study allowance.

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

    (b) Selection criteria. Whenever feasible, VA will give priority in 
selection for the work-study allowance to veterans with service-
connected disabilities rated at 30 percent or more. VA shall consider 
the following additional selection criteria:
    (1) Need of the reservist to augment his or her educational 
assistance allowance;
    (2) Availability to the reservist of transportation to the place 
where his or her services are to be performed;
    (3) Motivation of the reservist; and
    (4) Compatibility of the work assignment to the reservist's 
physical condition.

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

    (c) Utilization. The service for which the reservist is being paid 
a work-study allowance may be utilized in connection with--
    (1) Outreach services programs as carried out under the supervision 
of a VA employee;
    (2) Preparation and processing of necessary papers and other 
documents at educational institutions or regional offices or facilities 
of VA;
    (3) Hospital and domiciliary care and medical treatment at VA 
facilities;
    (4) Activities relating to the administration of 10 U.S.C. chapter 
1606 (or 10 U.S.C. chapter 106 as in effect before December 1, 1994), 
at Department of Defense facilities, Coast Guard facilities, or 
National Guard facilities; and
    (5) Any other appropriate activity of VA.

(Authority: 38 U.S.C 3485)

    (d) Rate of payment. (1) In return for the reservist's agreement to 
perform services for VA totaling 25 hours times the number of weeks 
contained in an enrollment period, VA will pay an allowance in an 
amount equal to the higher of--
    (i) The hourly minimum wage in effect under section 6(a) of the 
Fair Labor Standards Act of 1938 times the number of hours the 
reservist has agreed to work; or
    (ii) The hourly minimum wage under comparable law of the State in 
which the services are to be performed times the number of hours the 
reservist has agreed to work.
    (2) VA will pay proportionately less to reservists who agree to 
perform a lesser number of hours of services.

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

    (e) Payment in advance. (1) For work-study commencing during the 
period beginning on May 1, 1990, and ending on October 28, 1992, VA 
will pay in advance an amount equal to 40 percent of the total amount 
payable under the contract.
    (2) For work-study commencing after October 28, 1992, VA will pay 
in advance an amount equal to the lesser of the following:
    (i) 40 percent of the total amount payable under the contract; or
    (ii) An amount equal to 50 times the applicable minimum hourly wage 
in effect on the date the contract is signed.

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

    (f) Reservist reduces rate of training. In the event the reservist 
ceases to be at least a three-quarter-time student before completing an 
agreement, the reservist, with the approval of the Director of the VA 
field station or his or her designee, may be permitted to complete the 
unworked portion of an agreement in the same term, quarter, or semester 
in which the reservist ceases to be at least a three-quarter-time 
student or in the immediately following term, quarter, or semester.

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

    (g) Reservist terminates training. (1) If the reservist terminates 
all training before completing an agreement, the Director of the VA 
field station or his or her designee--
    (i) May permit him or her to complete the portion of the agreement 
represented by the money VA has advanced the reservist for which he or 
she has performed no service, but
    (ii) Will not permit him or her to complete that portion of an 
agreement for which no advance has been made.
    (2) The reservist must complete the allowed portion of an agreement 
in the same or immediately following term, quarter, or semester in 
which the reservist terminates training.

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

    (h) Indebtedness for unperformed service. (1) If the reservist has 
received an advance for hours of unperformed service, and VA has 
evidence upon which the Director of the VA Regional Office of 
jurisdiction or his or her designee concludes that the reservist does 
not intend to perform that service, the advance--
    (i) Will be deemed a debt due the United States; and
    (ii) Will be subject to recovery the same as any other debt due the 
United States.
    (2) The amount of indebtedness for each hour of unperformed service 
shall equal the hourly wage that formed the basis for the contract.

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

    17. In Sec. 21.7653, the section heading and paragraphs (c) and (d) 
are revised, and paragraph (e) is added, to read as follows:


Sec. 21.7653  Progress, conduct, and attendance.

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

[[Page 29308]]

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3474; sec. 705(a)(1), Pub. 
L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-189, 
103 Stat. 1457-1458)

    (d) Reports. At times the unsatisfactory progress, conduct, or 
course attendance of a reservist is caused by or results in his or her 
interruption or termination of training. If this occurs, the 
interruption or termination shall be reported in accordance with 
Sec. 21.7656(a). If the reservist continues in training despite making 
unsatisfactory progress, the fact of his or her unsatisfactory progress 
must be reported to VA within the time allowed by paragraphs (d)(1), 
(d)(2), and (d)(3) of this section.
    (1) A reservist's progress may become unsatisfactory as a result of 
the grades he or she receives. The educational institution shall report 
such unsatisfactory progress to VA in time for VA to receive it before 
the earlier of the following dates is reached:
    (i) Thirty days from the date on which the school official who is 
responsible for determining whether a student is making progress first 
receives the final grade report which establishes that the reservist is 
not progressing satisfactorily; or
    (ii) Sixty days from the last day of the enrollment period during 
which the reservist earned the grades that caused him or her to meet 
the unsatisfactory progress standards.
    (2) If the unsatisfactory progress of the reservist is caused 
solely by any factors other than the grades which he or she receives, 
the educational institution shall report the unsatisfactory progress in 
time for VA to receive it within 30 days of the date on which the 
progress of the reservist becomes unsatisfactory.
    (3) The educational institution shall report the unsatisfactory 
conduct or attendance of the reservist to VA in time for VA to receive 
it within 30 days of the date on which the conduct or attendance of the 
reservist becomes unsatisfactory.
    (e) Reentrance after discontinuance. In order for a reservist to 
receive educational assistance following discontinuance for 
unsatisfactory progress, conduct, or attendance, the provisions of this 
paragraph must be met.
    (1) The reservist's subsequent reentrance into a program of 
education may be for the same program, for a revised program, or for an 
entirely different program, depending on the cause of the 
discontinuance and removal of that cause.
    (2) A reservist may reenter following discontinuance because of 
unsatisfactory attendance, conduct, or progress when either of the 
following sets of conditions exists:
    (i) The reservist resumes enrollment at the same educational 
institution in the same program of education and the educational 
institution has both approved the reservist's reenrollment and 
certified it to VA; or
    (ii) In all other cases, VA determines that--
    (A) The cause of the unsatisfactory attendance, conduct, or 
progress in the previous program has been removed and is not likely to 
recur; and
    (B) The program which the reservist now proposes to pursue is 
suitable to his or her aptitudes, interests, and abilities.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3474; sec. 705(a)(1), Pub. 
L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-189, 
103 Stat. 1457-1458)

(Approved by the Office of Management and Budget under control 
number 2900-0552)

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


Sec. 21.7654  Pursuit and absences.

    (a) Verifying pursuit of courses not leading to a standard college 
degree. (1) If a reservist is pursuing a course not leading to a 
standard college degree and the course is neither a flight course nor a 
correspondence course, the reservist must monthly verify pursuit of 
that course. The reservist's verification in the form prescribed by the 
Secretary will attest to the following items as to the period verified, 
when applicable:
    (i) Actual attendance;
    (ii) Continued enrollment in and pursuit of the course;
    (iii) The reservist's unsatisfactory progress, conduct, or 
attendance;
    (iv) Date of interruption or termination of training;
    (v) Changes in the number of credit hours or in the number of clock 
hours of attendance;
    (vi) The award of nonpunitive grades;
    (vii) Any other changes or modifications in the course as certified 
at enrollment.
    (2) The verification of enrollment or the verification of pursuit 
and continued enrollment must--
    (i) Contain the information required by paragraph (a)(1) of this 
section for release of payment;
    (ii) Be signed by the reservist on or after the final date of the 
reporting period; and
    (iii) Show the date on which it was signed.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(g); sec. 705(a)(1), 
Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642 (c), (d), Pub. L. 101-
189, 103 Stat. 1457-1458)

    (b) Additional requirements for apprenticeships and other on-job 
training programs. (1) When a reservist is pursuing an apprenticeship 
or other on-job training, he or she must monthly certify training by 
reporting the number of hours worked.
    (2) The information provided by the reservist must be verified by 
the training establishment.

(Authority: 10 U.S.C. 2136(b); 38 U.S.C. 3680(a); sec. 705(a)(1), 
Pub. L. 98-525, 98 Stat. 2565, 2567; sec. 642(c), (d), Pub. L. 101-
189, 103 Stat. 1457-1458)

(Approved by the Office of Management and Budget under control 
number 2900-0553)

    19. In Sec. 21.7670, paragraph (d) and reserved paragraph (e) are 
removed; paragraph (f) is redesignated as paragraph (d); and the 
heading, introductory text, and newly redesignated paragraph (d) are 
revised to read as follows:


Sec. 21.7670  Measurement of courses leading to a standard, 
undergraduate college degree.

    Except as provided in Sec. 21.7672, VA will measure a reservist's 
courses as stated in this section.
* * * * *
    (d) Other requirements. Notwithstanding any other provision of this 
section, in administering benefits payable under 10 U.S.C. chapter 
1606, VA shall apply the provisions of Sec. 21.4272 (a), (b), (d), (e) 
(except paragraph (e)(4)), (f), (g), and (k).

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

    20. In Sec. 21.7672, the introductory text of paragraph (b)(1) is 
revised, paragraph (b)(2)(ii) is revised, paragraphs (b)(3), (b)(4), 
and (b)(5) are added, and paragraph (c) introductory text, paragraph 
(d), paragraph (e) introductory text, the heading of paragraph (f), 
paragraph (f) introductory text, paragraph (f)(1)(iv), and the 
authority citation for paragraph (f) are revised, to read as follows:


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

* * * * *
    (b) Credit-hour measurement--standard method. (1) For new 
enrollments that begin before July 1, 1993, VA will measure a 
reservist's enrollment in a course not leading to a standard college 
degree on a credit-hour basis when all conditions listed in paragraphs 
(b)(1)(i) and (b)(1)(ii) of this section are met.
* * * * *
    (2) * * *
    (ii) Apply the provisions of Sec. 21.4272(g) if one or more of the

[[Page 29309]]

reservist's courses are offered during a nonstandard term.

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

    (3) For new enrollments beginning on or after July 1, 1993, when a 
course is offered by an institution of higher learning in residence on 
a standard quarter- or semester-hour basis, VA will measure a 
reservist's enrollment in a course not leading to a standard college 
degree on the same credit-hour basis as courses leading to a standard 
undergraduate degree, as provided in Sec. 21.7670.
    (4) For new enrollments beginning on or after July 1, 1993, when a 
course is offered in residence on a standard quarter- or semester-hour 
basis by an educational institution which is not an institution of 
higher learning, VA also will measure on a credit-hour basis as 
provided in Sec. 21.7670 a reservist's enrollment in a course not 
leading to a standard college degree, provided that the educational 
institution requires at least the same number of clock-hours of 
attendance as required in paragraph (f) of this section. If the 
educational institution does not require at least the same number of 
clock-hours of attendance as required in paragraph (f) of this section, 
VA will not apply the provisions of Sec. 21.7670, but will measure the 
course according to paragraph (f) of this section.
    (5) VA will apply the provisions of Sec. 21.4272(g) to new 
enrollments beginning on or after July 1, 1993, if one or more of the 
reservist's courses are offered during a nonstandard term.

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

    (c) Credit-hour measurement--alternate method. The provisions of 
this paragraph apply only to the measurement of new enrollments that 
begin before July 1, 1993. Even though courses not leading to a 
standard college degree do not qualify for credit-hour measurement as 
provided in paragraph (b) of this section, an educational institution 
offering courses not leading to a standard college degree may measure 
those courses on a quarter- or semester-hour basis as indicated for 
collegiate courses in Sec. 21.7670 provided--
* * * * *
    (d) Mixed credit-hour and clock-hour measurement (conversion to 
equivalent clock hours). The provisions of this paragraph apply to 
training occurring on or after December 18, 1989, provided that if the 
training resulted from a new enrollment, the enrollment began before 
July 1, 1993.
    (1) When a course not leading to a standard college degree in which 
the reservist is enrolled cannot qualify for credit-hour measurement 
under either paragraph (b) or (c) of this section, VA will measure the 
course on a combined clock-hour and credit-hour basis when the 
provisions of this paragraph are met.
    (i) The course in which the reservist is enrolled--
    (A) Is offered by an institution of higher learning; and
    (B) Does not lead to a standard college degree; and
    (ii) The institution of higher learning requires as part of the 
reservist's program of education one or more unit subjects for which 
credit is granted toward a standard college degree.
    (2) When measuring a reservist's enrollment during a semester or 
quarter when he or she is pursuing one or more courses which the 
educational institution measures on a credit-hour basis, VA will 
convert the credit to equivalent clock hours as provided in paragraph 
(d)(3) of this section, and combine them with the clock hours of the 
other courses measured by the school on that basis, as provided in 
paragraph (d)(4) of this section.
    (3) VA will--
    (i) Determine the equivalent clock hour factor by dividing the 
number of clock hours which constitute full time for the enrollment as 
stated in paragraph (e) or (f) of this section by the number of credit 
hours which constitute a full-time undergraduate enrollment at the 
educational institution as stated in paragraph (a) of this section; and
    (ii) Except as provided in paragraphs (d)(5) and (d)(6) of this 
section, multiply the number of credit hours in which the reservist is 
enrolled by the equivalent clock hour factor as determined by paragraph 
(d)(3)(i) of this section. This will result in the number of equivalent 
clock hours in which the reservist is enrolled.
    (4) VA will add the number of clock hours in which the reservist is 
enrolled to the number of equivalent clock hours in which he or she is 
enrolled.
    (i) If the course is nonaccredited and shop practice is an integral 
part of the course, the course will be measured as provided in 
paragraph (e)(1) of this section with the total number of clock hours 
and equivalent clock hours considered to be clock hours for the purpose 
of applying that paragraph.
    (ii) If the course is nonaccredited and classroom instruction 
predominates, the course will be measured as provided in paragraph 
(e)(2) of this section with the total number of clock hours and 
equivalent clock hours considered to be clock hours for the purpose of 
applying that paragraph.
    (iii) If the course is accredited and shop practice is an integral 
part of the course, the course will be measured as provided in 
paragraph (f)(1) of this section with the total number of clock hours 
and equivalent clock hours considered to be clock hours for the purpose 
of applying that paragraph.
    (iv) If the course is accredited and classroom instruction 
predominates, the course will be measured as provided in paragraph 
(f)(2) of this section with the total number of clock hours and 
equivalent clock hours considered to be clock hours for the purpose of 
applying that paragraph.
    (5) When the number of class sessions per credit hour is so low 
that Sec. 21.4272 (f)(2)(ii) or (f)(3) would control the way in which 
VA would measure those credit hours, VA will make the calculations 
required by paragraph (d)(3)(ii) of this section by multiplying the 
number of class sessions determined by the equivalent clock hour 
factor.
    (6) When the reservist is attending a nonstandard term, VA will 
make the calculations required by paragraph (d)(3)(ii) of this section 
by determining the equivalent credit hours in which the reservist is 
enrolled as provided in Sec. 21.4272(g), and multiplying the equivalent 
credit hours by the equivalent clock hour factor.
    (7) In calculations required by this paragraph, fractions of an 
equivalent clock hour will be dropped.

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

    (e) Nonaccredited courses--clock-hour measurement for new 
enrollments beginning before July 1, 1993. The provisions of this 
paragraph apply to new enrollments beginning before July 1, 1993. If, 
after having examined the courses in which a reservist is enrolled, VA 
concludes that the reservist's enrollment qualifies neither for credit-
hour measurement as provided in paragraphs (b) and (c) of this section 
nor for a combination of credit-hour and clock-hour measurement as 
provided in paragraph (d) of this section, VA shall measure a 
nonaccredited course not leading to a standard college degree as 
follows. For the purpose of this paragraph, clock hours and class 
sessions mean clock hours and class sessions per week.
* * * * *
    (f) Clock-hour measurement. The provisions of this paragraph apply 
to enrollments before July 1, 1993, in accredited courses not leading 
to a standard college degree, and to all new enrollments on or after 
July 1, 1993, in

[[Page 29310]]

courses not leading to a standard college degree. If VA concludes that 
the courses in which a reservist is enrolled qualify neither for 
credit-hour measurement as provided in paragraph (b) or (c) of this 
section nor for a combination of clock-hour and credit-hour measurement 
as provided in paragraph (d) of this section, VA shall measure those 
courses as follows. (Supervised study shall be excluded from 
measurement of all courses to which this paragraph applies.)
    (1) * * *
    (iv) One-quarter-time training shall be 1 through 10 clock hours 
attendance. For attendance of 6 through 10 clock hours, there shall be 
not more than one quarter hour rest period allowance. For attendance of 
1 through 5 clock hours, there shall be no rest period allowance.
* * * * *
(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3688)

    21. In Sec. 21.7673, paragraph (a)(2) is removed; paragraph (a)(3) 
is redesignated as paragraph (a)(2); and paragraph (a)(1), newly 
redesignated paragraph (a)(2), and paragraph (d) are revised, to read 
as follows:


Sec. 21.7673   Measurement of concurrent enrollments.

    (a) * * *
    (1) If VA measures the course at the primary institution on a 
credit-hour basis (including a course which does not lead to a standard 
college degree, which is being measured on a credit-hour basis as 
provided in Sec. 21.7672(b)), and VA measures the courses at the second 
school on a clock-hour basis, the clock hours will be converted to 
credit hours.
    (2) If VA measures the courses pursued at the primary institution 
on a clock-hour basis, and VA measures the courses pursued at the 
second school on a credit-hour basis, including courses which qualify 
for credit-hour measurement on the basis of Sec. 21.7672(b), VA will 
convert the credit hours to clock hours to determine the reservist's 
training time.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3688)
* * * * *
    (d) Standards for measurement the same. If VA measures the courses 
pursued at both institutions on either a clock-hour basis or a credit-
hour basis, VA will measure the reservist's enrollment by adding 
together the units of measurement for the courses in the second school 
and the units of measurement for courses in the primary institution. 
The standard for full time will be the full-time standard for the 
courses at the primary institution.

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


Sec. 21.7674   [Amended]

    22. In Sec. 21.7674, paragraph (b) is amended by removing 
``21.7720(b)(3) of this part'' and adding, in its place, 
``21.7720(b)(9)'' and by removing ``21.7672 of this part'' and adding, 
in its place, ``21.7672''; and paragraph (c) is amended by removing 
``appropriate, if approved under Sec. 21.7720(b)(4) of this part'' and 
adding, in its place, ``appropriate''.
    23. In Sec. 21.7700, paragraphs (f) and (g) are removed; and the 
introductory text, paragraph (a), and the authority citation are 
revised, to read as follows:


Sec. 21.7700 State approving agencies.

    VA and State approving agencies have the same general 
responsibilities for approving courses for training under 38 U.S.C. 
chapter 1606 (or 10 U.S.C. chapter 106 as in effect before December 1, 
1994) as they do for approving courses for training under 38 U.S.C. 
chapter 30 or 32. Accordingly, in administering 10 U.S.C. chapter 1606 
(or 10 U.S.C. chapter 106 as in effect before December 1, 1994), VA 
will apply the provisions of the following sections:
    (a) Sec. 21.4150--Designation,
* * * * *
(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3670 through 3676)

    24. Section 21.7720 is revised to read as follows:


Sec. 21.7720   Course approval.

    (a) Courses must be approved. (1) A course of education offered by 
an educational institution must be approved by--
    (i) The State approving agency for the State in which the 
educational institution is located; or
    (ii) The State approving agency which has appropriate approval 
authority; or
    (iii) VA, where appropriate.
    (2) In determining when approval authority rests with the State 
approving agency or VA, the provisions of Sec. 21.4250 (b)(3), 
(c)(2)(i), (c)(2)(ii), (c)(2)(iii), and (c)(2)(iv) apply.
    (3) A course approved under 38 U.S.C. chapter 36 is approved for 
purposes of 10 U.S.C. chapter 1606 (or 10 U.S.C. chapter 106 as in 
effect before December 1, 1994).

(Authority: 10 U.S.C. 2131(c), 2136(b); 16131(c)(1), 16136(b); 38 
U.S.C. 3672; sec. 705(a)(1), Pub. L. 98-525, 98 Stat. 2565, 2567; 
sec. 642, Pub. L. 101-189, 103 Stat. 1456-1458)

    (b) Course approval criteria. In administering benefits payable 
under 10 U.S.C. chapter 1606 (or 10 U.S.C. chapter 106 as in effect 
before December 1, 1994), VA and, where appropriate, the State 
approving agencies, shall apply the following sections:
    (1) Sec. 21.4250 (except paragraph (c)(1))--Approval of courses;
    (2) Sec. 21.4251--Period of operation of course;
    (3) Sec. 21.4253 (except those portions of paragraphs (b) and (f) 
that permit approval of a course leading to a high school diploma)--
Accredited courses;
    (4) Sec. 21.4254--Nonaccredited courses;
    (5) Sec. 21.4255--Refund policy--nonaccredited courses;
    (6) Sec. 21.4258--Notice of approval;
    (7) Sec. 21.4259--Suspension or disapproval;
    (8) Sec. 21.4260--Courses in foreign countries;
    (9) Sec. 21.4265 (except paragraphs (a), (e), and (g))--Practical 
training approved as institutional training or on-job training;
    (10) Sec. 21.4266--Courses offered at subsidiary branches or 
extensions; and
    (11) Sec. 21.4267--Approval of independent study.

(Authority: 10 U.S.C. 16131(c)(1), 16136(b); 38 U.S.C. 3670 through 
3676)

    25. Section 21.7722 is revised to read as follows:


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

    (a) The Secretary of Veterans Affairs may not approve an enrollment 
by a reservist in, and a State approving agency may not approve for 
training under 10 U.S.C. chapter 1606 (or 10 U.S.C. chapter 106 as in 
effect before December 1, 1994):
    (1) A bartending or personality development course;
    (2) A course offered by radio;
    (3) Except for enrollments in a nurse's aide course approved 
pursuant to Sec. 21.4253(a)(5), an institutional course for the 
objective of nurse's aide or a nonaccredited nursing course which does 
not meet the licensing requirements in the State where the course is 
offered; or
    (4) Effective October 29, 1992, a nonaccredited course or unit 
subject offered entirely or partly by independent study. However, see 
Secs. 21.7620(c) and 21.7622(f) concerning payment of educational 
assistance to reservists enrolled in such a course.

(Authority: 10 U.S.C. 16131(c)(1), 16136(b); 38 U.S.C. 3452)

    (b) A State approving agency (or VA when acting as a State 
approving agency) may approve the following courses for training under 
10 U.S.C. chapter 1606 (or 10 U.S.C. chapter 106

[[Page 29311]]

as in effect before December 1, 1994), but VA may not approve an 
enrollment in any of these courses by a reservist who is limited in the 
types of courses he or she may pursue, as provided in Sec. 21.7540 
(b)(2) and (b)(3):
    (1) A correspondence course;
    (2) A cooperative course;
    (3) An apprenticeship or other on-job training program;
    (4) A nursing course offered by an autonomous school of nursing;
    (5) A medical or dental specialty course not offered by an 
institution of higher learning;
    (6) A refresher, remedial, or deficiency course; or
    (7) A course or combination of courses consisting solely of 
independent study.

(Authority: 10 U.S.C. 2131(c), 2136(b), 16131(c)(1), 16136(b); 38 
U.S.C. 3670 through 3676; sec. 705(a)(1), Pub. L. 98-525, 98 Stat. 
2565, 2567; sec. 642, Pub. L. 101-189, 103 Stat. 1456-1458)

[FR Doc. 96-14369 Filed 6-7-96; 8:45 am]
BILLING CODE 8320-01-P