[Federal Register Volume 73, Number 247 (Tuesday, December 23, 2008)]
[Proposed Rules]
[Pages 78876-78910]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-29723]



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Part II





Department of Veterans Affairs





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38 CFR Part 21



Post-9/11 GI Bill; Proposed Rule

  Federal Register / Vol. 73, No. 247 / Tuesday, December 23, 2008 / 
Proposed Rules  

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AN10


Post-9/11 GI Bill

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to establish 
regulations regarding a new educational assistance program for 
individuals who serve on active duty after September 10, 2001. The new 
program, known as the Post-9/11 GI Bill, was authorized by title V of 
the Supplemental Appropriations Act, 2008 (Post-9/11 Veterans 
Educational Assistance Act of 2008). These proposed regulations are 
designed to implement the provisions of the Post-9/11 Veterans 
Educational Assistance Act of 2008 that govern the Post-9/11 GI Bill.

DATES: Comments must be received on or before January 22, 2009.

ADDRESSES: Written comments may be submitted through 
www.Regulations.gov; by mail or hand-delivery to the Director, 
Regulations Management (02REG), Department of Veterans Affairs, 810 
Vermont Ave., NW., Room 1068, Washington, DC 20420; or by fax to (202) 
273-9026. Comments should indicate that they are submitted in response 
to ``RIN 2900-AN10--Post-9/11 GI Bill.'' Copies of comments received 
will be available for public inspection in the Office of Regulation 
Policy and Management, Room 1063B, between the hours of 8 a.m. and 4:30 
p.m., Monday through Friday (except holidays). Please call (202) 461-
4902 for an appointment. (This is not a toll-free number.) In addition, 
during the comment period, comments may be viewed online at 
www.Regulations.gov through the Federal Docket Management System 
(FDMS).

FOR FURTHER INFORMATION CONTACT: Brandye R. Terrell, Regulation 
Development Team Leader (225C), Education Service, Veterans Benefits 
Administration, Department of Veterans Affairs, 810 Vermont Ave., NW., 
Washington, DC 20420. Telephone: (202) 461-9822. (This is not a toll-
free telephone number.)

SUPPLEMENTARY INFORMATION: 

I. Post-9/11 GI Bill

    This document proposes to amend VA's Vocational Rehabilitation and 
Education regulations in 38 CFR part 21 by adding a new subpart P and 
updating subparts B, C, D, G, K, and L to implement the provisions of 
the ``Post-9/11 Veterans Educational Assistance Act of 2008,'' Public 
Law 110-252, title V, which established a new educational assistance 
program. Many of the provisions of the new program, known as the 
``Post-9/11 GI Bill,'' are codified in chapter 33 of title 38, U.S.C. 
Chapter 33 provides guidance on the administration of the Post-9/11 GI 
Bill educational assistance program. The new program becomes effective 
on August 1, 2009. VA intends to use these proposed regulations to 
govern and administer educational assistance allowances payable under 
the Post-9/11 GI Bill. The following paragraphs provide a brief 
explanation of how each section of new chapter 33 affects the 
provisions of educational assistance under the Post-9/11 GI Bill, with 
references to the respective proposed rules concerned.

Section 3301. Definitions

    Section 3301 defines certain terms relevant to the Post-9/11 GI 
Bill. VA proposes to define active duty, advance payment, educational 
assistance, enrollment period, entry level or skill training, 
established charges, institution of higher learning, interval, lump sum 
payment, program of education, pursuit, and transferor based on statute 
or existing regulations for sections authorized under 38 U.S.C. 3323 to 
govern the administration of the program.
    The term ``academic year'' is used in section 3313 to set a period 
of time for which VA may pay the maximum book stipend of up to $1,000, 
and in section 3317 to set a period of time for which colleges and 
universities (who voluntarily agree to enter into an agreement with VA) 
must provide specific information. VA proposes to define academic year 
to mean a span of time of not more than 12 months during which the 
institution of higher learning offers periods of instruction and 
includes all divisions of the school year as defined in Sec.  
21.4200(b)(2) through (b)(5). If an institution of higher learning has 
an academic year lasting longer than 12 months, VA will consider the 
academic year for that institution to be August 1st of each calendar 
year through July 31st of the subsequent calendar year.
    ``Program of education'' as defined in 38 U.S.C. 3301 and 3452(b) 
includes any unit course or combination of courses or subjects pursued 
by an individual. In several sections of existing regulations governing 
the administration of other educational assistance programs, the terms 
``course'' and ``program of education'' have often been used 
synonymously. Using the terms interchangeably for purposes of 38 U.S.C. 
chapter 33 could be confusing to the reader. Section 3313 of title 38, 
U.S.C., provides a formula for determining entitlement charge. The 
formula includes the term ``course.'' The term, as used in this section 
is not interchangeable with program of education. The term ``course'' 
is also used in 38 U.S.C. 3314 governing payment of tutorial 
assistance. In this instance, the term ``course'' is specifically 
required to be part of an approved program of education. The use of the 
term ``course'' in these instances requires that VA clearly distinguish 
between course and program of education. VA proposes to define the term 
``course'' to mean a unit of instruction required for an approved 
program of education that provides the individual with the knowledge 
and skills necessary to meet the requirements of the selected 
educational objective.
    Section 3313 specifically excludes payment of the monthly housing 
allowance to individuals pursuing a program of education offered 
through distance learning. VA proposes to define the term ``distance 
learning'' to mean the pursuit of a program of education via distance 
education as codified in Department of Education statute 20 U.S.C. 
1003(6).
    Section 3313(f)(4) provides VA with a formula for calculating 
entitlement charge for eligible individuals pursuing training at half-
time or less. The formula requires that VA divide the number of course 
hours pursued by an individual by the number of course hours required 
to be full-time at the institution of higher learning. The result of 
the formula is a percentage that will be used to determine entitlement 
charge. As this formula is unique to the new program, VA proposes to 
use the term ``rate of pursuit'' to identify the result of the 
calculation.
    Terms specific to the Post-9/11 GI Bill are included in proposed 
Sec.  21.9505.

Section 3311. Educational Assistance for Service in the Armed Forces 
Commencing on or After September 11, 2001: Entitlement

    Section 3311 specifies service requirements for establishing 
eligibility for educational assistance under chapter 33, the qualifying 
categories of discharges and releases, and the types of service that 
will not be considered active duty for purposes of establishing 
eligibility. Rules regarding these statutory provisions are included in 
proposed Sec. Sec.  21.9505 and 21.9520.

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Section 3312. Educational Assistance: Duration

    Section 3312 provides a maximum of 36 months (or its equivalent for 
part-time training) of educational assistance to individuals meeting 
the eligibility requirements contained in section 3311, to be used 
during the individual's period of eligibility. This section 
incorporates a 48-month limitation in 38 U.S.C. 3695 on the total 
period in which an individual can receive educational assistance by 
combining two or more educational assistance programs administered by 
VA. In addition, section 3312 provides that there will be no charge 
against an eligible individual's entitlement to educational assistance 
under chapter 33 if the individual discontinued training because he or 
she was ordered to active duty under 10 U.S.C. 688, 12301(a), 12301(d), 
12301(g), 12302, or 12304, was ordered to a new duty location, or was 
required to perform an increased amount of work in his or her unit, and 
failed to receive credit toward the completion of his or her 
educational, professional, or vocational objective. The period for 
which receipt of educational assistance allowance is not charged 
against an individual's entitlement shall not exceed the portion of the 
period of enrollment in the course or courses for which the individual 
failed to receive credit or lost training time. Rules regarding these 
statutory provisions are included in proposed Sec. Sec.  21.9550 and 
21.9560(d).

Section 3313. Educational Assistance: Amount; Payment

    Section 3313 provides that eligible individuals may receive 
educational assistance for pursuit of any program of education approved 
for purposes of 38 U.S.C. chapter 30 and offered by an institution of 
higher learning. The maximum amount of educational assistance payable 
for an individual's pursuit of an approved program of education will 
depend, in part, upon the individual's length of creditable active duty 
service as shown in the following chart:

------------------------------------------------------------------------
                                                               Maximum
  Service requirements  (aggregate service on active  duty    percentage
                       after 9/10/01)                         of amounts
                                                               payable
------------------------------------------------------------------------
At least 36 months \1\.....................................          100
At least 30 continuous days (Must be discharged due to               100
 service-connected disability).............................
At least 30 months, but less than 36 months \1\............           90
At least 24 months, but less than 30 months \1\............       \3\ 80
At least 18 months, but less than 24 months \2\............       \3\ 70
At least 12 months, but less than 18 months \2\............           60
At least 6 months, but less than 12 months \2\.............           50
At least 90 days, but less than 6 months \2\...............           40
------------------------------------------------------------------------
\1\ Includes entry level and skill training.
\2\ Excludes entry level and skill training.
\3\ If the service requirements are met at both the 80 and 70 percentage
  level, the maximum percentage of 70 must be applied to amounts
  payable.

    Section 3313 directs VA to charge an individual's entitlement to 
educational benefits under chapter 33 for payments of educational 
assistance (established charges; monthly housing allowance; lump sum 
for books, supplies, equipment, and other educational costs). An 
eligible individual, other than an individual on active duty, is 
entitled to receive educational assistance equal to the amount of the 
school's established charges, up to the maximum amount of established 
charges regularly charged to full-time, undergraduate, in-State 
students by the public institution of higher learning having the 
highest rate of regularly-charged established charges in the State in 
which the individual is enrolled, as well as a prorated amount for 
books, supplies, equipment, and other educational costs (not to exceed 
$1,000 for an entire academic year), which are paid in a lump sum for 
the quarter, semester, or term. In addition, an individual, other than 
an individual on active duty, whose rate of pursuit for a program of 
education (distance learning programs are specifically excluded by 38 
U.S.C. 3313(c)(1)(B)) is greater than half-time is entitled to a 
monthly housing allowance equal to the amount of the basic allowance 
for housing payable under 37 U.S.C. 403 for a member of the military 
with dependents in pay grade E-5, using the ZIP code area wherein all, 
or a majority, of the institution of higher learning in which the 
individual is enrolled is located. The actual amounts payable to, or on 
behalf of, an eligible individual must be multiplied by the maximum 
percentage correlating to the individual's creditable length of service 
(as shown in the chart above). Additionally, the actual lump sum amount 
payable for books, supplies, equipment, and other educational costs 
must be multiplied by the percentage correlating to the individual's 
rate of pursuit if the individual's rate of pursuit is 50 percent or 
less.
    An individual on active duty is eligible to receive educational 
assistance equal to the amount of the school's established charges or 
the portion of established charges not covered by military tuition 
assistance under 10 U.S.C. 2007(a) or (b), whichever is less.
    In the event that an individual is pursuing an approved program of 
education at more than one institution of higher learning, VA proposes 
to use the primary institution of higher learning (institution from 
which degree will be granted) to determine the in-State maximum for 
established charges and the monthly housing allowance. If the 
individual is only pursuing distance education courses at the primary 
school, VA proposes to determine the monthly housing allowance payable 
using the ZIP code of the institution of higher learning where resident 
courses are being pursued.
    While the statute provides that eligible individuals may receive 
educational assistance for pursuit of any program of education that is 
approved for the purposes of 38 U.S.C. chapter 30 and offered by an 
institution of higher learning as defined in 38 U.S.C. 3452(f), it does 
not address the maximum amounts payable for individuals pursuing 
training in a foreign country. The statutory definition of institution 
of higher learning includes educational institutions that are not 
located in States but offer courses leading to a standard degree (or 
its equivalent) that is recognized by the Secretary of the Department 
of Education (or comparable official) of the country or other 
jurisdiction in which the institution is located. VA proposes to pay 
individuals in pursuit of an approved program of education located at a 
foreign branch of a State-side institution in the same manner as in-
State students using the maximum amounts payable for the State in which 
that institution's main campus is located. VA also proposes to set the 
maximum amount of established charges payable for individuals in 
pursuit of an approved program of education at a foreign institution at 
the average amount of established charges regularly charged full-time 
undergraduate in-State students by public institutions of higher 
learning throughout the United States during the preceding academic 
year. Further, VA proposes to set the maximum monthly housing allowance 
payable for individuals in pursuit of an approved program of education 
at a foreign institution at the average monthly amount of the basic 
allowance for housing payable under 37 U.S.C. 403 for a member of the 
military with

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dependents in pay grade E-5 residing in the continental United States.
    Section 3313(d)(3) requires VA to establish regulations for 
determining the number of months of entitlement of an individual to 
chapter 33 educational assistance that are chargeable based on payments 
made to the individual for pursuit of an approved program of education. 
Except for lump sum stipends for books, supplies, equipment, and other 
educational costs that an individual receives for a certified period of 
enrollment, VA proposes to charge entitlement based on rate of pursuit 
and enrollment dates similar to the method used to calculate 
entitlement charge under 38 U.S.C. chapter 30. VA will compute the 
individual's rate of pursuit from the beginning date of the educational 
assistance award to the ending date. If the individual's rate of 
pursuit is half-time or less, VA is required to calculate the amount of 
entitlement to charge as a percentage of a month equal to the number of 
course hours the individual is pursuing divided by the number of course 
hours required for full-time pursuit at the institution of higher 
learning. For the purpose of consistency in determining the amount of 
entitlement to charge, VA proposes to use the same formula to calculate 
every individual's rate of pursuit, up to and including for full-time 
training.
    The amount payable to an individual for a lump sum for books, 
supplies, equipment, and other educational costs (also referred to as 
the book stipend) is limited to up to $1,000 each academic year. The 
book stipend must be paid proportionally based on the fraction of the 
academic year that term, quarter, or semester the individual is 
attending represents. If the individual is only eligible to receive a 
lump sum payment for the book stipend for the certified period of 
enrollment, VA proposes to limit the entitlement charge to one day for 
each $33 received by the individual, with any remaining amount rounded 
to the nearest amount evenly divisible by $33. Individuals who receive 
payment of established charges or the monthly housing allowance will 
not receive an additional entitlement charge for the book stipend. The 
formula used to determine entitlement charge for the book stipend will 
only be used if the individual does not receive any other payment under 
38 U.S.C. 3313. Using this formula would be most advantageous to the 
individual because it would allow the individual to receive educational 
assistance for books, supplies, equipment, and other educational costs 
while maximizing entitlement use.
    A servicemember pursuing an approved program of education would be 
entitled to receive the lesser of: (1) the amount of the school's 
established charges which similarly circumstanced nonveterans are 
required to pay; or (2) the portion of the established charges not 
covered by military tuition assistance.
    VA would pay the appropriate amount of established charges as a 
lump sum sent directly to the institution of higher learning on the 
individual's behalf. VA would make all other payments directly to the 
individual. Rules regarding these provisions are included in proposed 
Sec. Sec.  21.9560, 21.9640, and 21.9680.

Section 3314. Tutorial Assistance

    Section 3314 permits an eligible individual in pursuit of an 
approved program of education to receive tutorial assistance, subject 
to the conditions applicable to veterans under 38 U.S.C. 3492, if the 
instructor of the course certifies that assistance is essential to 
correct a deficiency, and the course is required for satisfactory 
pursuit of the program of education. Section 3492 requires that the 
individual must be in pursuit of a program of education on at least a 
half-time basis. Chapter 33 does not recognize the training times used 
in the administration of other educational assistance programs. 
Therefore, VA proposes to permit an individual with a rate of pursuit 
of at least 50 percent to qualify for tutorial assistance as that 
percent represents a course load that is equivalent with half-time 
training in other educational assistance programs. An individual who 
receives tutorial assistance would not be charged entitlement for 
chapter 33 educational assistance. An individual's receipt of tutorial 
assistance would be limited to $100 per month for up to 12 months or up 
to a maximum of $1,200. Rules regarding these provisions are included 
in proposed Sec. Sec.  21.9560(d) and 21.9685.

Section 3315. Licensure and Certification Tests

    Section 3315 permits an eligible individual to receive 
reimbursement for the actual cost of taking one licensing or 
certification test on or after August 1, 2009, up to a maximum of 
$2,000, and no charge would be made against the individual's 
entitlement to chapter 33 educational assistance. Rules regarding this 
provision are consistent with statute and existing regulations for 
sections authorized under 38 U.S.C. 3323 to govern the administration 
of the program and are included in proposed Sec. Sec.  21.9560, 
21.9625, 21.9665, and 21.9680.

Section 3316. Supplemental Educational Assistance: Members With 
Critical Skills or Specialty; Members Serving Additional Service

    Section 3316 provides that the Secretary of the military department 
concerned, pursuant to regulations prescribed by the Secretary of 
Defense, may increase the amount of educational assistance payable to 
an individual who is entitled to receive: (1) an increase (``kicker'') 
based on a skill or specialty in which there is a critical shortage of 
personnel, for which there is difficulty recruiting, or, in the case of 
critical units, for which there is difficulty in retaining personnel; 
or (2) a supplemental educational assistance increase based on 
additional years of service as authorized by subchapter III of 38 
U.S.C. chapter 30. These increases are at the sole discretion of the 
Secretary of the military department concerned.
    Section 3316 provides that the amount of the increased or 
supplemental educational assistance payable will be equal to the 
monthly amount of the increase authorized under 38 U.S.C. 3015(d) or 
3022, respectively. Those sections require that the monthly amount of 
the additional assistance be reduced for individuals not pursuing full-
time training. Section 3316 does not provide a method for adjusting the 
amount of the individual's additional educational assistance; 
therefore, VA proposes to proportionally reduce the monthly amount of 
the increase (``kicker'') or supplemental educational assistance 
payable under the Post-9/11 GI Bill by the percentage corresponding to 
the individual's rate of pursuit as determined by dividing the number 
of course hours the individual is pursuing by the number of course 
hours required for full-time pursuit. Any amount payable under this 
section will be paid as an increase to the monthly housing allowance, 
but can only be paid if the individual is eligible for the housing 
allowance for that term, quarter, or semester. Rules regarding these 
provisions are included in proposed Sec. Sec.  21.9525, 21.9555, 
21.9650, and 21.9655.

Section 3317. Public-Private Contributions for Additional Educational 
Assistance

    Section 3317 establishes the ``Yellow Ribbon G.I. Education 
Enhancement Program'' (referred to as the ``Yellow Ribbon Program''), 
which permits an institution of higher learning, at the school's 
option, to enter into an agreement with VA allowing the two parties to 
provide matching funds to cover a portion of the outstanding

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amount of established charges not covered under any other provision of 
38 U.S.C. chapter 33. VA would match each dollar funded by the school, 
but the combined amounts may not exceed the remainder of the full cost 
of the school's established charges. This program would only be 
available to individuals entitled to the 100 percent benefit rate 
(based on service requirements) who are pursuing training at an 
institution of higher learning located in the United States or at a 
branch of such institution that is located outside the United States.
    VA proposes to enter into an agreement with any institution of 
higher learning located in the United States seeking to participate in 
the Yellow Ribbon Program. For the sake of equality, VA proposes to 
require institutions to agree to--
     Provide contributions to eligible individuals who apply 
for such program at that institution (in a manner prescribed by the 
institution) on a first-come-first-served basis, regardless of the rate 
at which the individual is pursuing training (i.e., full-time versus 
less than full-time), in any given academic year;
     Make contributions toward the program on behalf of the 
individual in the form of a waiver;
     State the maximum number of individuals for whom 
contributions will be made in any given academic year; and
     Waive the same percentage of unmet established charges for 
all eligible individuals in any given academic year.
    Additionally, VA proposes to require each participating institution 
of higher learning to commit to provide contributions for eligible 
individuals for the entire academic year specified in the agreement.
    The most current list of colleges and universities participating in 
the Yellow Ribbon Program would be made available at VA's GI Bill Web 
site at http://www.gibill.va.gov. The list would include specific 
information regarding each school's agreement with VA. Proposed rules 
regarding the Yellow Ribbon Program provision are provided in Sec.  
21.9700.

Section 3318. Additional Assistance: Relocation or Travel Assistance 
for Individual Relocating or Traveling Significant Distance for Pursuit 
of a Program of Education

    Section 3318 permits an individual eligible for educational 
assistance under this chapter to receive a one-time-only payment of 
$500 if the individual resides in a county (or similar entity utilized 
by the Bureau of the Census) with less than 7 persons per square mile 
(as determined by the most recent decennial Census) and, in order to 
pursue a program of education under the Post-9/11 GI Bill, either: (1) 
Relocates at least 500 miles; or (2) travels by air to physically 
attend school if no other method of transportation is available due to 
an absence of roads or other infrastructure. If the individual requests 
payment for the rural relocation benefit, VA proposes to confirm that 
the individual physically relocated at least 500 miles by using a 
commonly available internet search engine for mapping, using the 
individual's resident address as the beginning point and the address of 
the institution of higher learning as the ending point. If the 
individual indicates that he or she was required to travel by air to 
reach the institution of higher learning for which he or she is 
enrolled, VA proposes to verify that the individual actually traveled 
by air by requesting that the individual provide an airline receipt for 
travel with a departure and destination airport within reasonable 
commuting distance from the individual's home of residence and the 
institution of higher learning, respectively.
    Section 3318 also authorizes VA to accept an individual's DD Form 
214 (Certification of Release or Discharge), the individual's most 
recent Federal income tax return, or other evidence as prescribed by 
regulation as proof of residence. VA proposes to accept the following 
additional documents as proof of residence: The most recent State 
income tax return, a rental/lease agreement, a mortgage document, or a 
current real property assessment. VA further proposes to accept the 
above-mentioned documents (excluding the DD Form 214) in the name of 
the transferor or, in the case of a child, a parent in the event that a 
dependent eligible for assistance under this program as a result of 
being granted transferred entitlement cannot personally produce 
adequate proof of residence because he or she lives with the transferor 
or, in the case of a child, a parent.
    In view of the nature of this one-time-only payment, VA proposes to 
make no charge against the individual's entitlement to chapter 33 
educational assistance. Rules regarding this provision are included in 
proposed Sec. Sec.  21.9660 and 21.9680(c).

Section 3319. Authority to Transfer Unused Education Benefits to Family 
Members

    Section 3319 provides that the Secretary of Defense may authorize 
the Secretary of each military department, at such Secretary's sole 
discretion, to permit individuals who meet certain service requirements 
and are eligible for educational assistance under the Post-9/11 GI Bill 
to transfer up to 36 months of their entitlement to educational 
assistance to a designated dependent or dependents. The Secretary of 
the Defense may limit the number of months of entitlement that may be 
transferred, but in no case may the Secretary limit the number of 
months to less than 18 months.
    The statute further provides the--
     Eligibility criteria for both the individual transferring 
the entitlement and the dependent;
     Administrative provisions (including designations, 
revocations, and modifications of transferred entitlement);
     Special provisions in the event of an overpayment of 
educational assistance allowance; and
     Limitations on using transferred entitlement as marital 
property, or the asset of a marital estate, subject to division in a 
divorce or other civil proceeding.
    Subject to the transferor's (individual who transfers the 
entitlement) 15-year period of eligibility, a spouse is entitled to use 
transferred entitlement in the same manner as the transferor and 
receive the same amounts that would be payable to the transferor. A 
child is entitled to use transferred entitlement in the same manner as 
the transferor and receive the same amounts that would be payable to 
the transferor as if the transferor was not on active duty. The child 
is not subject to the transferor's 15-year period of eligibility nor 
may the child use any transferred entitlement after reaching the age of 
26 years. A spouse may use the transferred entitlement for pursuit of 
the requirements of a secondary school diploma or equivalency 
certificate; a child can only do so if he or she has reached 18 years 
of age.
    For consistency among all educational assistance programs 
administered by VA, VA proposes to adopt the provisions of existing 
regulations governing transfer of entitlement in the event that section 
3319 does not address such provisions. Rules regarding the transfer of 
entitlement provisions are included in proposed Sec. Sec.  21.9530, 
21.9570, 21.9625, 21.9635, and 21.9570.

Section 3321. Time Limitation for Use of and Eligibility for 
Entitlement

    Section 3321 provides that an individual's period of eligibility 
for educational assistance will generally terminate 15 years from the 
last date of

[[Page 78880]]

discharge or release from active duty of at least 90 continuous days. 
However, if the individual is eligible for educational assistance under 
this program due to a discharge or release from active duty of at least 
30 days for a service-connected disability, the individual's period of 
eligibility will terminate effective 15 years from his or her date of 
discharge or release from active duty.
    Section 3321 does not address the period of eligibility for 
individuals who established eligibility based on a minimum of 90 
aggregate days of active duty service who do not have a period of 
service consisting of 90 continuous days. VA proposes to establish a 
15-year period of eligibility for these individuals beginning on the 
date of discharge or release from active duty for the last period of 
service used to meet the minimum service requirements under chapter 33.
    If an individual's eligibility is established as a result of a 
corrective action to an individual's military records by a competent 
military authority, the individual's period of eligibility will 
terminate effective 15 years from the date of the corrective action. 
This section also provides that VA, under certain conditions, will 
extend an individual's period of eligibility in the event the 
individual was captured and forcibly detained by a foreign government 
or power, or was prevented from initiating or completing the chosen 
program of education within the original period of eligibility because 
of a physical or mental disability that did not result from the 
individual's willful misconduct.
    Rules regarding these provisions are included in proposed 
Sec. Sec.  21.9530 and 21.9535.

Section 3322. Bar to Duplication of Educational Assistance Benefits

    Section 3322 prohibits concurrent receipt of educational assistance 
under the Post-9/11 GI Bill and any other educational assistance 
programs administered by VA (excluding the receipt of supplemental 
educational assistance, or an increase (``kicker'') payable as a result 
of eligibility under the Montgomery GI Bill--Active Duty program, or 
the Montgomery GI Bill--Selected Reserve program). If an individual is 
eligible for more than one program administered by VA, the individual 
must elect under which program he or she wishes to receive educational 
assistance. VA proposes to amend Sec. Sec.  21.3022, 21.4022, 21.5022, 
21.7143, and 21.7642 to include a reference to chapter 33 of title 38, 
U.S.C., and add a provision prohibiting duplication of educational 
assistance in Sec.  21.9690 of the proposed subpart P. Updating each of 
the aforementioned sections and adding Sec.  21.9690 will make it clear 
to the reader that an individual may not concurrently receive payment 
for training under the Post-9/11 GI Bill and any other educational 
assistance program administered by VA.
    Section 3322 also prohibits a period of service counted for 
purposes of repayment of an education loan under chapter 109 of title 
10, U.S.C., from being counted as a qualifying period of service for 
eligibility under the Post-9/11 GI Bill. In addition, it prohibits an 
individual who serves in the Selected Reserve from receiving credit for 
that service under more than one of the following educational 
assistance programs: the Post-9/11 GI Bill, the Montgomery GI Bill--
Active Duty program, the Montgomery GI Bill--Selected Reserve program, 
or the Reserve Educational Assistance Program. These restrictions are 
included under the definition of active duty in proposed Sec.  21.9505.

Section 3323. Administration

    Section 3323 requires VA to adhere to the provisions of section 
3034(a)(1), which includes the provisions of 3470, 3471, 3474, 3476, 
3482(a), 3483, and 3485 of title 38, U.S.C., and subchapters I and II 
(with the exception of secs. 3680(c) 3680(f), and 3687) of chapter 36 
of the same title in administering the Post-9/11 GI Bill in the 
instance that 38 U.S.C. chapter 33 does not address the subject matters 
covered under those sections.
    Some of the sections listed in the preceding paragraph generally 
apply to all educational assistance programs administered by VA and, 
therefore, exist in current VA regulations. VA proposes to revise 38 
CFR 21.1029, 21.1031, and 21.1032 to include a reference to the 
proposed subpart P and update authority citations as necessary. 
Furthermore, VA proposes to revise multiple sections in 38 CFR part 21, 
subpart D to do one or more of the following:
     Update the authority citations to include chapter 33 
authority;
     Amend the referenced sections to include chapter 33; and
     Remove references to chapter 34 because that educational 
assistance program expired on December 31, 1989.
    In addition, 38 U.S.C. 501, 503, 511, 512, 513, 5101, 5103, 5103A, 
and 5113 (applicable generally with respect to benefits administered by 
VA) are applicable to the administration of the Post-9/11 GI Bill. 
Sections 501, 503, 511, 512, and 513 include provisions related to VA's 
authority to prescribe rules and regulations to carry out the laws 
administered by the Department, determinations on administrative errors 
or equitable relief, finality of decisions by the Secretary, the 
Secretary's delegation of authority, and the Secretary's authority to 
enter into certain contracts or agreements. Sections 5101, 5103, and 
5103A include provisions relating to the filing of claims for benefits, 
VA's duty to notify claimants of required information and evidence, and 
VA's duty to assist claimants in obtaining benefits, which are 
applicable to any individual applying for any benefit administered by 
the Secretary. Section 5113(a) sets forth effective date provisions 
that are applicable, specifically, to education benefits under chapters 
30, 31, 32, 34, and 35 of title 38, U.S.C. We note that section 5113 
was not amended to include chapter 33 in this list. However, we believe 
Congress intended that the effective date provisions applicable to 
other VA educational assistance programs should be applied as well to 
educational assistance under the Post-9/11 GI Bill, chapter 33. We 
believe there is sufficient authority provided to the Secretary under 
section 3323(c)(1) of title 38, U.S.C., which states that ``the 
Secretary shall prescribe regulations for the administration of this 
chapter,'' to enable VA to prescribe regulations consistent with other 
educational assistance program regulations that are based on the 
authority provided in section 5113. Accordingly, section 5113 is listed 
as an authority in several places (along with section 3323(c)) that 
relate to effective dates.
    Section 3485 contains provisions for the administration of the 
work-study allowance. That section requires that individuals be 
pursuing training in an approved program of education at a rate of at 
least three-quarters of that required of a full-time student. Chapter 
33 does not recognize the training times used in the administration of 
other educational assistance programs. Therefore, VA proposes to permit 
individuals with a rate of pursuit of at least 75 percent to qualify 
for work-study allowance as that percent represents a course load that 
is equivalent with three-quarter time training in other educational 
assistance programs. Rules regarding this provision are included in 
Sec.  21.9670.
    Sections 3685 and 3690 of title 38, U.S.C., include provisions on 
overpayments to individuals in receipt of educational assistance and 
overcharges by educational institutions, discontinuance of allowances, 
examination of records, and misleading statements. Although these 
provisions are applicable to chapter 33 benefits, VA

[[Page 78881]]

proposes to clarify when the individual and when the institution of 
higher learning will be liable for any overpayments. Further, VA 
proposes to determine the amount of an overpayment for an individual in 
receipt of chapter 33 benefits as follows--(1) An individual who does 
not complete all courses in the certified period of enrollment for 
which he or she received payment, and who does not substantiate 
mitigating circumstances for not completing such enrollment, will be 
charged an overpayment equal to the amount of all educational 
assistance paid for that certified period of enrollment.
    (2) An individual who does not complete all courses in the 
certified period of enrollment, but who substantiates mitigating 
circumstances for not completing such courses, will be charged an 
overpayment equal to the prorated amount of educational assistance to 
which he or she is entitled.
    (i) VA will determine the prorated amount of the established 
charges by dividing the amount the individual was paid by the number of 
days in the certified enrollment period, and multiplying the result by 
the number of days from the beginning date of the enrollment period 
through the last date of attendance. The result of this calculation 
will equal the amount the individual is due. The difference between the 
amount of educational assistance paid and the amount of educational 
assistance the individual is due will be established as an overpayment.
    (ii) VA will determine the prorated amount of the monthly housing 
allowance by determining the amount the individual was entitled to 
while enrolled and subtracting that amount from the total amount paid. 
The difference between the amount of the monthly housing allowance paid 
and the amount of the monthly housing allowance the individual is due 
will be established as an overpayment.
    (iii) Individuals who have substantiated mitigating circumstances 
will not be charged an overpayment for the lump sum payment for books, 
supplies, equipment, and other educational costs (``book stipend'').
    Rules regarding these provisions are included in Sec.  21.9695.

Section 3324. Allocation of Administration and Costs

    Section 3324 provides that the Secretary of Veterans Affairs shall 
administer the Post-9/11 GI Bill and directs that educational 
assistance payments under this program be made from funds appropriated 
to, or otherwise made available to, VA for the payment of readjustment 
benefits. VA is not proposing regulations for the provisions included 
in this section.

II. Applicability of the Post-9/11 GI Bill to Individuals Under the 
Montgomery GI Bill Program

    Certain individuals who, as of August 1, 2009, are currently making 
contributions for or are already entitled to benefits under the 
provisions of 38 U.S.C. chapter 30, or would have been entitled to 
chapter 30 benefits if they had not declined participation upon entry 
into active duty service; or who are entitled to benefits under chapter 
107, 1606, or 1607 of title 10, U.S.C.; and who, as of the date of 
election, meet the eligibility requirements under 38 U.S.C. chapter 33, 
would be eligible to elect participation in the chapter 33 program. The 
individual would have to make an irrevocable election of chapter 33 by 
relinquishing entitlement to benefits under either chapter 30 of title 
38, U.S.C., or chapter 107, 1606, or 1607 of title 10, U.S.C. If the 
individual was making contributions under chapter 30 at the time of the 
election, the contributions would cease as of the month following.
    An individual who relinquishes entitlement under the provisions of 
chapter 30 and, as of August 1, 2009, had used entitlement but retains 
unused entitlement under that chapter would have a number of months of 
entitlement available to him or her under chapter 33 that equals the 
number of unused months remaining to him or her under chapter 30, 
including any months of transferred chapter 30 entitlement revoked by 
the individual in an irrevocable election. An individual who exhausted 
all chapter 30 entitlement prior to August 1, 2009, may not elect 
chapter 33 by relinquishing entitlement under chapter 30 (as that 
individual is no longer entitled under chapter 30). Individuals who are 
entitled to but have not used chapter 30 benefits, individuals who 
would have been eligible under chapter 30 had they not declined 
participation, and individuals who are making contributions towards 
chapter 30 and who have not used any entitlement under chapter 30 would 
be eligible to receive 36 months of entitlement under chapter 33.
    If an eligible individual requests educational assistance for a 
program of education that is not available to the individual under the 
provisions of 38 U.S.C. chapter 33 (e.g. , on-the-job training, flight 
training, reimbursement of national test fees), but is available under 
the chapter the individual relinquished, VA would provide educational 
assistance at the rate payable under the provisions of the relinquished 
chapter to the eligible individual for pursuit of any program of 
education that meets the approval criteria under--
    (1) 38 U.S.C. chapter 30, if the individual was eligible under that 
chapter; or
    (2) 10 U.S.C. chapter 1606, if the individual was eligible under 
that chapter; or
    (3) 10 U.S.C. chapter 1607, if the individual was eligible under 
that chapter.
    If an individual receives educational assistance for a program of 
education under the provisions of a relinquished chapter, the 
entitlement charge would be made against the individual's entitlement 
under chapter 33.
    An individual eligible for educational assistance under chapter 33 
by reason of relinquishing eligibility under another educational 
assistance program and, at the time of the chapter 33 election, the 
individual was also eligible for supplemental educational assistance 
under subchapter III of chapter 30 of title 38, U.S.C., a Montgomery GI 
Bill--Active Duty kicker provided under 38 U.S.C. 3015(d), or a 
Montgomery GI Bill--Selected Reserve kicker provided under 10 U.S.C. 
16131(i), will remain entitled to such increased amount(s) under 38 
U.S.C. chapter 33. The increased amount(s) would be paid to the 
individual as a lump sum in an amount equal to the quarter, semester, 
or term, as applicable, equivalent of the monthly amount to which the 
individual was entitled at the time of the election of chapter 33.
    We propose regulations providing that an eligible individual who 
makes an irrevocable election to receive educational assistance under 
chapter 33 by relinquishing entitlement under section 3011 or 3012 of 
chapter 30 may be entitled to receive a refund of the amount of his or 
her individual contributions to chapter 30 up to $1,200. The refund of 
contributions may only be paid to the individual who made the 
contributions and as an increase to the monthly housing allowance 
payable under Sec.  21.9640(b)(1)(ii) or (b)(2)(ii) at the time his or 
her entitlement exhausts.
    Rules regarding these statutory provisions are included in proposed 
Sec. Sec.  21.9550, 21.9560, 21.9590, 21.9645, 21.9650(b), and 21.9655.

III. Nonsubstantive Changes

    Public Law 98-525 (Department of Defense Authorization Act, 1985) 
terminated eligibility for persons receiving educational assistance 
under

[[Page 78882]]

chapter 34, effective December 31, 1989. For historical purposes, VA 
did not immediately update existing regulations to remove references to 
chapter 34 upon its expiration. However, VA proposes to remove 
references to chapter 34 in any section that is being updated for the 
Post-9/11 GI Bill and currently references chapter 34.

Paperwork Reduction Act of 1995

    This proposed rule contains no new collections of information under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521) (``Act''). 
The existing collections of information under the Paperwork Reduction 
Act referenced in this proposed rule are approved under one of the 
following Office of Management and Budget (OMB) control numbers:
     2900-0154--Application for VA Education Benefits.
     2900-0073--VA Enrollment Certification.
     2900-0074--Request for Change of Program or Place of 
Training.
     2900-0156--Notice of Change in Student Status.
     2900-0465--Student Verification of Enrollment.
    In 38 CFR 21.9680(c), there are provisions requiring individuals to 
submit a request for the rural relocation benefit in writing. However, 
those provisions do not constitute a collection of information under 
the Act because VA anticipates that information will be collected from 
fewer than 10 persons annually. The rural relocation benefit is only 
available to individuals relocating more than 500 miles or by air from 
a county (or similar entity utilized by the Bureau of the Census) with 
less than 7 persons per square mile.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any given year. This proposed rule would have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Executive Order 12866 and Congressional Review Act

    This is an economically significant regulatory action under 
Executive Order 12866 and constitutes a major rule under the 
Congressional Review Act.
    Executive Order 12866 directs agencies to assess all costs and 
benefits of available regulatory alternatives and, when regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity). Executive 
Order 12866 classifies a ``significant regulatory action'' requiring 
review by OMB as any regulatory action that is likely to result in a 
rule that may: (1) Have an annual effect on the economy of $100 million 
or more, or adversely affect in a material way the economy, a sector of 
the economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal governments or 
communities; (2) create a serious inconsistency or interfere with an 
action taken or planned by another agency; (3) materially alter the 
budgetary impact of entitlements, grants, user fees, or loan programs 
or the rights and obligations of entitlement recipients; or (4) raise 
novel legal or policy issues arising out of legal mandates, the 
President's priorities, or the principles set forth in the Executive 
Order.
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this proposed rule and has concluded that it is 
a significant regulatory action under Executive Order 12866 because it 
is likely to result in a rule that may have an annual effect on the 
economy of $100 million or more and may raise novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the Executive Order. This proposed rule is 
also a major rule under the Congressional Review Act because it is 
likely to result in an annual effect on the economy of $100 million or 
more.
    VA has attempted to follow OMB circular A-4 to the extent feasible 
in this analysis. The circular first calls for a discussion of the need 
for the regulation. The Post-9/11 GI Bill was established to provide 
educational assistance to members of the Armed Forces who serve on 
active duty after September 10, 2001. The preamble above discusses the 
need for the regulation in more detail.
    The impact of this regulation is primarily to the federal budget. 
Eligible individuals may receive an educational assistance allowance 
for established charges not to exceed the highest amount charged full-
time in-State undergraduate students by the most expensive public 
institution in the State where the student is enrolled (or the national 
average of the most expensive in-State public institutions for 
individuals training at a foreign institution not associated with an 
institution located inside the United States), a monthly housing 
allowance up to the monthly amount payable under section 403 of title 
37, United States Code, for a member with dependents in pay grade E-5 
residing in the military housing area that encompasses all or the 
majority portion of the ZIP code area in which the institution is 
located, and a book stipend of up to $1,000 each academic year. 
Individuals may also qualify for a work-study allowance, tutorial 
assistance, reimbursement of a licensing or certification test, and a 
rural relocation benefit. Individuals eligible for 100 percent of the 
benefit may also receive additional funds under the Yellow Ribbon 
Program to cover established charges not otherwise covered under 
chapter 33.
    The effective date of the chapter 33 program is August 1, 2009; 
therefore, full year benefit costs begin in FY 2010. VA estimates the 
benefit cost of the program will be $1.2 billion in FY 2009, 
approximately $28.1 billion for five years, and $78.1 billion through 
2018.
    Due to the short length of time to implement this new benefit 
program and the lack of an existing payment system that will support 
the types of payments authorized under the new program, VA plans to 
utilize manual processing of claims in a preexisting system with 
limited functionality until an in-house Information Technology Systems 
(IT) solution can be developed. As a result, VA estimates discretionary 
costs of $78.8 million in FY 2009 and $452.6 million over ten years for 
IT and minor construction needs, supplies, equipment (including 
computers); increased rent; and salaries to support additional 
personnel. FY 2009 costs are offset by additional funding in the amount 
of $100 million dollars made available to VA in chapter 3 of title I of 
the Supplemental Appropriations Act, 2008.

Regulatory Flexibility Act

    The Secretary of Veterans Affairs hereby certifies that this 
proposed rule, if adopted, would 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. Although this proposed 
rule would affect some small entities that are testing organizations or 
educational institutions, any economic impact on them would be minor 
because these functions are currently being carried out for other 
educational assistance programs. Therefore, pursuant to 5 U.S.C. 
605(b), this proposed rule would be exempt from the initial and final 
regulatory flexibility

[[Page 78883]]

analyses requirements of sections 603 and 604.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this proposed rule are 64.117, Survivors and 
Dependents Educational Assistance; 64.120, Post-Vietnam Era Veterans' 
Educational Assistance; 64.124, All-Volunteer Force Educational 
Assistance; and 64.125, Vocational and Educational Counseling for 
Servicemembers and Veterans. The proposed rule would also affect the 
Montgomery GI Bill--Selected Reserve program and the Reserve 
Educational Assistance Program (REAP), for which there are no Catalog 
of Federal Domestic Assistance numbers.

List of Subjects in 38 CFR Part 21

    Administrative practice and procedure, Armed forces, Civil rights, 
Claims, Colleges and universities, Conflict of interests, 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: September 26, 2008.
James B. Peake,
Secretary of Veterans Affairs.

    For the reasons set out in the preamble, VA proposes to amend 38 
CFR part 21 (subparts B, C, D, G, K, and L, and add subpart P) as 
follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart B--Claims and Applications for Educational Assistance

    1. The authority citation for part 21, subpart B continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), ch.51, and as noted in specific 
sections.

    2. Amend Sec.  21.1029 by:
    a. In the introductory text, removing ``and L,'' and adding, in its 
place, ``L, and P,'';
    b. Revising the authority citation at the end of paragraph (e).
    The revision reads as follows:


Sec.  21.1029  Definitions.

* * * * *
    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))

* * * * *
    3. Amend Sec.  21.1030 by revising the authority citation at the 
end of paragraphs (a), (b) and (c) to read as follows:


Sec.  21.1030   Claims.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 501(a), 3034(a), 3241(a), 
3323(a), 3471, 3513, 5101(a))

* * * * *


Sec.  21.1031   [Amended]

    4. Amend Sec.  21.1031(b)(1) introductory text by removing ``or L'' 
and adding, in its place, ``L, or P''.


Sec.  21.1032   [Amended]

    5. Amend Sec.  21.1032(a)(1) introductory text by removing ``or L'' 
and adding, in its place, ``L, or P''.
    6. Revise Sec.  21.1033(c) to read as follows:


Sec.  21.1033   Time limits.

* * * * *
    (c) Time limit for filing a claim for an extended period of 
eligibility under 10 U.S.C. chapter 1606, or 38 U.S.C. chapter 30, 32, 
33, or 35. VA must receive a claim for an extended period of 
eligibility provided by Sec.  21.3047, Sec.  21.5042, Sec.  21.7051, 
Sec.  21.7551, or Sec.  21.9535 by the later of the following dates:
    (1) One year from the date on which the spouse's, surviving 
spouse's, veteran's, reservist's, or other eligible individual's 
original period of eligibility ended; or
    (2) One year from the date on which the spouse's, surviving 
spouse's, veteran's, reservist's, or other eligible individual's 
physical or mental disability no longer prevented him or her from 
beginning or resuming a chosen program of education.

(Authority: 10 U.S.C. 16133(b); 38 U.S.C. 3031(d), 3232(a), 3321, 
3512)

* * * * *

Subpart C--Survivors' and Dependents' Educational Assistance Under 
38 U.S.C. Chapter 35

    7. The authority citation for part 21, subpart C continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), 512, 3500-3566, and as noted in 
specific sections.

    8. Amend Sec.  21.3022 by:
    a. Revising paragraphs (a) through (i).
    b. Adding paragraph (j).
    c. Revising the authority citation at the end of the section.
    The revisions and addition read as follows:


Sec.  21.3022   Nonduplication--programs administered by VA.

* * * * *
    (a) 38 U.S.C. chapter 30 (Montgomery GI Bill--Active Duty);
    (b) 38 U.S.C. chapter 31 (Vocational Rehabilitation and 
Employment);
    (c) 38 U.S.C. chapter 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (d) 38 U.S.C. chapter 33 (Post-9/11 GI Bill);
    (e) 10 U.S.C. chapter 1606 (Montgomery GI Bill--Selected Reserve);
    (f) 10 U.S.C. chapter 1607 (Reserve Educational Assistance 
Program);
    (g) 10 U.S.C. chapter 107 (Educational Assistance Test Program);
    (h) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note.);
    (i) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 
note.); and
    (j) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3322, 3681)

Subpart D--Administration of Educational Assistance Programs

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

    Authority: 10 U.S.C. 2141 note, ch. 1606; 38 U.S.C. 501(a), chs. 
30, 32, 33, 34, 35, 36, and as noted in specific sections.

    10. Amend Sec.  21.4005 by:
    a. Removing ``chapter 30, 32, 34, 35, or 36'' each place it appears 
and adding, in each place, ``chapter 30, 32, 33, 35, or 36''; removing 
``chapters 30, 32, 34, 35, or 36'' each place it appears and adding, in 
each place, ``chapters 30, 32, 33, 35, or 36''; removing ``chapter 30, 
32, or 35'' and adding, in each place, ``chapter 30, 32, 33, or 35''.
    b. Revising paragraph (a)(1)(ii) and (a)(2)(ii).
    c. Revising the authority citation at the end of paragraphs (a) and 
(b).
    d. Revising paragraph (e) heading.
    The revisions read as follows:


Sec.  21.4005   Conflicting interests.

* * * * *
    (a) * * *
    (1) * * *
    (ii) Offering a licensing or certification test that is approved 
for payment of educational assistance under 10 U.S.C.

[[Page 78884]]

chapter 1606, or 38 U.S.C. chapter 30, 32, 33, or 35 to veterans, 
reservists, or eligible individuals who take that test.
    (2) * * *
    (ii) Offering a licensing or certification test that is approved 
for payment of educational assistance under 10 U.S.C. chapter 1606, or 
38 U.S.C. chapter 30, 32, 33, or 35 to veterans, reservists, or 
eligible individuals who take that test.
* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3683, 3689)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3683, 3689)

* * * * *
    (e) Notice to veterans, reservists, and eligible individuals.
* * * * *
    11. Amend Sec.  21.4006 by revising the authority citation at the 
end of paragraphs (a), (a)(2), and (b) to read as follows:


Sec.  21.4006   False or misleading statements.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)

* * * * *
    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690)

* * * * *
    12. Amend Sec.  21.4008 by revising the authority citation at the 
end of paragraphs (a) and (b) to read as follows:


Sec.  21.4008   Prevention of overpayments.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690(b))


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3690(b))


    13. Amend Sec.  21.4009 by revising the authority citation at the 
end of paragraphs (b) through (j) to read as follows:


Sec.  21.4009   Waiver or recovery of overpayments.

* * * * *
    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685)


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (f) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (g) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))


    (j) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 
3323(a), 3685, 3689(d))

* * * * *
    14. Amend Sec.  21.4020 by:
    a. Revising paragraph (a)(4) and (5); and
    b. Revising the authority citation at the end of paragraphs (a) and 
(b).
    The revisions read as follows:


Sec.  21.4020   Two or more programs.

    (a) * * *
    (4) 38 U.S.C. chapters 30, 32, 33, 34, 35, and 36;
    (5) 10 U.S.C. chapters 107, 1606, and 1607;
* * * * *

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3034(a), 
3241(a), 3323(a), 3695(a))


    (b) * * *

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3034(a), 
3241(a), 3323(a), 3695(b))

* * * * *
    15. Revise Sec.  21.4022 to read as follows:


Sec.  21.4022   Nonduplication--programs administered by VA.

    A veteran, reservist, or eligible individual who is eligible for 
educational assistance allowance or subsistence allowance under more 
than one of the provisions of law listed in this paragraph, whether 
based on his or her own service or the service of another person, 
cannot receive such benefits concurrently. The individual must elect 
under which program he or she will receive benefits for the particular 
period or periods during which education or training is to be pursued.
    (a) 38 U.S.C. 30 (Montgomery GI Bill--Active Duty);
    (b) 38 U.S.C. 31 (Vocational Rehabilitation and Employment 
Program);
    (c) 38 U.S.C. 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (d) 38 U.S.C. 33 (Post-9/11 GI Bill)
    (e) 38 U.S.C. 35 (Survivors' and Dependents' Educational 
Assistance);
    (f) 10 U.S.C. 1606 (Montgomery GI Bill--Selected Reserve);
    (g) 10 U.S.C. 1607 (Reserve Educational Assistance Program);
    (h) 10 U.S.C. 107 (Educational Assistance Test Program);
    (i) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
    (j) The Hostage Relief Act of 1980 (Pub. L. 96-449), 5 U.S.C. 5661 
note);
    (k) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).

(Authority: 10 U.S.C. 16136(b), 16166(b); 38 U.S.C. 3322, 3681)


    16. Amend Sec.  21.4145 by:
    a. In paragraph (a)(1), removing ``chapter 30 or 32'' and adding, 
in its place, ``chapter 30, 32 or 33''; and
    b. Revising the authority citation at the end of paragraphs (a), 
(c), (d), (e), (f), and (h).
    c. Adding an authority citation at the end of paragraph (b).
    d. Adding an authority citation at the end of paragraph (g).
    The revisions and additions read as follows:


Sec.  21.4145   Work study allowance.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537, 5101(a))


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (f) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (g) * * *

[[Page 78885]]


(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3104(a)(4), 
3241(a), 3323(a), 3485, 3537)

* * * * *


Sec.  21.4146  [Amended]

    17. Amend Sec.  21.4146, paragraph (a), by removing ``chapters 30, 
32, 35, or 36'' and adding, in its place, ``chapters 30, 32, 33, 35, or 
36''.
    18. Amend Sec.  21.4153 by revising paragraph (c)(4)(i) and the 
authority citation following paragraph (c)(4)(i) to read as follows:


Sec.  21.4153  Reimbursement of expenses.

* * * * *
    (c) * * *
    (4) * * *
    (i) The work has a direct relationship to the requirements of 10 
U.S.C. chapter 1606, or 38 U.S.C. chapter 30, 32, 33, 35, or 36; and

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3674)

* * * * *


Sec.  21.4200  [Amended]

    19. Amend Sec.  21.4200 by:
    a. In the introductory text, removing ``subparts C, F, G, H, K, and 
L'' and adding, in its place, ``subparts C, G, H, K, L, and P''.
    20. Amend Sec.  21.4201 by:
    a. In paragraph (a), removing ``the Department of Veterans Affairs 
pursuant to Title 38 U.S.C.'' and adding, in its place, ``VA under 
title 38, U.S.C., or under title10, U.S.C.''.
    b. In paragraph (c)(4), removing ``chapters 30, 31, 32, 34, 35 and 
36, title 38, United States Code, and chapter 1606, title 10, United 
States Code'' and adding, in its place, ``38 U.S.C. chapters 30, 31, 
32, 33, 35 and 36, and 10 U.S.C. chapter 1606''.
    c. In paragraph (e)(2) introductory text, removing ``United States 
Code or under chapter 1606, title 10, United States Code'' and adding, 
in its place, ``U.S.C., or under title 10, U.S.C.''.
    d. In paragraph (f)(1)(ii), removing ``chapters 30, 31, 32, 34, 35, 
or 36, title 38, U.S.C., or chapter 1606, title 10 U.S.C.'' and by 
adding, in its place, ``38 U.S.C. chapters 30, 31, 32, 33, 35 and 36, 
and 10 U.S.C. chapter 1606''.
    e. In paragraph (g)(2) introductory text, removing ``either under 
Chapter 1606, Title 10, U.S.C., or under Chapters 30, 32, 34, or 36, 
Title 38 U.S.C.'' and adding, in its place, ``under 10 U.S.C. chapter 
1606 or under 38 U.S.C. chapter 30, 32, 33, or 36''.
    f. Revising the authority citation at the end of paragraphs (a), 
(c)(4) introductory text, (c)(4)(ii), (d), (e)(2)(i), (e)(2)(iv), 
(e)(3), (f)(1) introductory text, (f)(1)(ii), (f)(2), (g)(2), 
(g)(2)(ii), (g)(5), and (h).
    The revisions read as follows:


Sec.  21.4201  Restrictions on enrollment; percentage of students 
receiving financial support.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (c) * * *
    (4) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (ii) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (e) * * *
    (2) * * *
    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (iv) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (3) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (f) * * *
    (1) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (ii) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    (g) * * *
    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (ii) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (5) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))

* * * * *
    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3680A(d))


    21. Amend Sec.  21.4206 by:
    a. In the introductory text and in paragraph (a), removing 
``chapter 30, 32, 34, 35 or 36'' and adding, in its place, ``chapter 
30, 32, 33, 35 or 36''.
    b. In paragraph (e)(1), removing ``chapters 30, 32, 34, 35 and 36 
of title 38 U.S.C.'' and adding, in its place, ``chapters 30, 32, 33, 
35 and 36 of title 38, U.S.C.''.
    c. Revising the authority citation at the end of paragraphs (a) 
through (d).
    d. Removing the authority citation at the end of paragraph (e)(1) 
and by revising the authority citation at the end of the paragraph (e).
    e. Adding an information collection approval parenthetical at the 
end of the section.
    The revisions and addition read as follows:


Sec.  21.4206  Reporting fee.

* * * * *
    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3684(c))


(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-
0073)
* * * * *
    22. Amend Sec.  21.4209 by:
    a. In paragraph (a)(1), removing ``chapter 30, 32, 34, 35, or 36'' 
and adding, in its place, ``chapter 30, 32, 33, 35, or 36''.
    b. In paragraph (c), removing ``veterans under 38 U.S.C. chapter 30 
or 32,'' and adding, in its place, ``veterans under 38 U.S.C. chapter 
30, 32, or 33,''.
    c. Revising the authority citation at the end of paragraphs (a) 
through (c), and (f).
    The revisions read as follows:


Sec.  21.4209  Examination of records.

    (a) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3323(a), 3689, 
3690)


    (b) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3323(a), 3689, 
3690)


    (c) * * *

[[Page 78886]]


(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3323(a), 3690)

* * * * *
    (f) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3323(a), 3689, 
3690)

* * * * *
    23. Amend Sec.  21.4210 by:
    a. Revising paragraph (a)(1).
    b. In paragraph (b)(1)(i), removing ``chapter 30, 32, 34, 35, or, 
36'' and adding, in its place, ``chapter 30, 32, 33, 35, or 36''.
    c. In paragraph (d)(2)(ii), removing ``chapters 30, 32, 34, 35, and 
36'' and adding, in its place, ``chapters 30, 32, 33, 35, and 36''.
    d. Revising paragraph (d)(4)(ii).
    e. Revising the authority citation at the end of paragraphs (a), 
(b)(1)(ii), (c), (d), (e)(2), and (f) through (i).
    The revisions read as follows:


Sec.  21.4210  Suspension and discontinuance of educational assistance 
payments and of enrollments or reenrollments for pursuit of approved 
courses.

    (a) Overview; explanation of terms used in Sec. Sec.  21.4210 
through 21.4216. (1) VA may pay educational assistance to a reservist 
under 10 U.S.C. chapter 1606 for the reservist's pursuit of a course 
approved in accordance with the provisions of 38 U.S.C. chapter 36. VA 
may pay educational assistance under 38 U.S.C. chapter 32 or 35 to a 
veteran or eligible person for the individual's pursuit of a course 
approved in accordance with the provisions of 38 U.S.C. chapter 36; or 
if the individual has taken a licensing or certification test approved 
in accordance with the provisions of 38 U.S.C. chapter 36. VA may pay 
educational assistance under 38 U.S.C. chapter 30 to a veteran or 
servicemember for the individual's pursuit of a course approved in 
accordance with the provisions of 38 U.S.C. chapter 36; if the 
individual has taken a licensing or certification test approved in 
accordance with the provisions of 38 U.S.C. chapter 36 or if the 
individual is entitled to be paid benefits (tuition assistance top-up) 
to meet all or a portion of an educational institution's charges for 
education or training that the military department concerned has not 
covered under tuition assistance. VA may pay educational assistance 
under 38 U.S.C. chapter 33 to an eligible individual or, as 
appropriate, to the individual's institution of higher learning on his 
or her behalf, for the individual's pursuit of a course or program of 
education if the course or program of education is offered by an 
institution of higher learning and approved under 38 U.S.C. chapter 30 
in accordance with the provisions of 38 U.S.C. chapter 36; if the 
individual has taken a licensing or certification test approved in 
accordance with the provisions of 38 U.S.C. chapter 36, or if an 
individual is entitled to be paid educational assistance to meet all or 
a portion of the institution of higher learning's established charges 
that the military department concerned has not covered by tuition 
assistance under 10 U.S.C. 2007(a) or (c). Except for tuition 
assistance top-up, where courses do not need to be approved, a State 
approving agency designated by VA, or in some instances VA, approves 
the course or test for payment purposes. Notwithstanding such approval, 
VA, as provided in paragraphs (b), (c), and (d) of this section, may 
suspend, discontinue, or deny payment of benefits to any or all 
otherwise eligible individuals for pursuit of a course or training 
approved under 38 U.S.C. chapter 36, and for taking a licensing or 
certification test approved under 38 U.S.C. chapter 36.
* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3452, 3471, 3690)


    (b) * * *
    (1) * * *
    (ii) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689, 3690)

* * * * *
    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)


    (d) * * *
    (4) * * *
    (ii) Has instituted a policy or practice with respect to the 
payment of tuition, fees, or other established charges that 
substantially denies to veterans, servicemembers, reservists, or other 
eligible persons the benefits of advance payment of educational 
assistance authorized to such individuals under Sec. Sec.  21.4138(a), 
21.7140(a), 21.7640(d), or 21.9680; or
* * * * *

(Authority: 16136(b); 38 U.S.C. 512(a), 3034(a), 3241(a), 3323(a), 
3680A(d), 3684, 3685, 3689, 3690, 3696, 5301)


    (e) * * *
    (2) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)

* * * * *
    (f) * * *

(Authority: 10 U.S.C. 16136(b); 31 U.S.C. 3801-3812; 38 U.S.C. 
3034(a), 3241(a), 3323(a), 3689, 3690)


    (g) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689, 3690)


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3690)


    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3683(b))


    24. Amend Sec.  21.4211 by:
    a. Removing ``chapter 30, 32, 34, 35, or 36'' each place it appears 
and adding, in each place, ``chapter 30, 32, 33, 35, or 36''.
    b. Revising the authority citation at the end of paragraphs (a) 
through (e).
    The revisions read as follows:


Sec.  21.4211  Composition, jurisdiction, and duties of the Committee 
on Educational Allowances.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 512(a), 3034(a), 3323(a), 
3241(a), 3689(d), 3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3323(a), 3241(a), 
3689(d), 3690)


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3323(a), 3241(a), 
3689(d), 3690)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3323(a), 3241(a), 
3689(d), 3690)


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3323(a), 3241(a), 
3689(d), 3690)


    25. Amend Sec.  21.4212 by revising the authority citation at the 
end of the section to read as follows:


Sec.  21.4212   Referral to Committee on Educational Allowances.

* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    26. Amend Sec.  21.4213 by revising the authority citation at the 
end of the section to read as follows:


Sec.  21.4213   Notices of hearing by Committee on Educational 
Allowances.

* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    27. Amend Sec.  21.4214 by revising the authority citation for 
paragraphs (a) through (p) to read as follows:


Sec.  21.4214   Hearing rules and procedures for Committee on 
Educational Allowances.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)



[[Page 78887]]


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (f) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (g) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (h) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (i) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (j) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (k) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (l) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (m) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (n) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (o) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (p) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    28. Amend Sec.  21.4215 by revising the authority citation for 
paragraphs (a) through (e) to read as follows:


Sec.  21.4215  Decision of Director of VA Regional Processing Office of 
Jurisdiction.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (d) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    (e) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    29. Amend Sec.  21.4216 by revising the authority citation for 
paragraphs (a) and (c) to read as follows:


Sec.  21.4216  Review of decision of director of VA Regional Processing 
Office of jurisdiction.

    (a) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241(a), 3323(a), 
3689(d), (e), 3690; Pub. L. 122 Stat. 2375)

* * * * *
    (c) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C 3034(a), 3241(a), 3323(a), 
3689(d), 3690)


    30. Amend Sec.  21.4233 by revising the authority citation at the 
end of paragraph (e) to read as follows:


Sec.  21.4233  Combination.

* * * * *
    (e) * * *

(Authority: 10 U.S.C. 16136(c); 38 U.S.C. 3002(8), 3034(d), 3241(b), 
3323(a), 3452(c), 3501(a)(6), 3675, 3676)


    31. Amend Sec.  21.4234 by:
    a. Removing ``veteran or eligible person'' each time it appears, 
and adding, in its place, ``veteran, reservist, or eligible person''.
    b. Revising paragraph (c).
    c. In paragraph (d)(1)(i), removing ``veteran or eligible spouse or 
surviving spouse'' and adding, in its place, ``veteran or eligible 
person other than a child receiving educational assistance under 38 
U.S.C. chapter 35''.
    d. In paragraph (d)(1)(iii) and (d)(2)(iii), removing ``child'', 
and adding, in each place, ``child receiving educational assistance 
under 38 U.S.C. chapter 35''.
    e. Revising the authority citation at the end of paragraphs 
(a)(2)(iv), (a)(2)(v), (b), (c), (d)(3), (d)(4), and (e).
    The revisions read as follows:


Sec.  21.4234  Change of program.

    (a) * * *
    (2) * * *
    (iv) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (v) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (b) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (c) Optional change of program. A spouse or surviving spouse 
eligible to receive educational assistance under 38 U.S.C. chapter 35 
may make one optional change of program if his or her previous course 
was not interrupted due to his or her own misconduct, neglect, or lack 
of application.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (d) * * *
    (3) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (4) * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034(a), 3241, 3323(a), 
3691)


    (e) * * *

(Authority: 10 U.S.C. 510(h), 16136(b), 16166(b); 38 U.S.C. 3034(a), 
3241, 3323(a), 3691)

* * * * *
    32. Amend Sec.  21.4236 by revising the authority citation at the 
end of paragraphs (b), (c), and (d) to read as follows:


Sec.  21.4236  Tutorial assistance.

* * * * *
    (b) * * *

(Authority: 10 U.S.C. 16131(h); 38 U.S.C. 3019, 3234, 3314, 3492, 
3533(b))


    (c) * * *

(Authority: 10 U.S.C. 16131(h); 38 U.S.C. 3019, 3314, 3492, 3533(b))


    (d) * * *

(Authority: 10 U.S.C. 16131(h); 38 U.S.C. 3019, 3314, 3492, 3533(b))


    33. Amend Sec.  21.4250 by:
    a. In paragraph (c)(2)(ii), removing ``Chapter 1606 or 38 U.S.C. 
Chapters 30, 32, 35, or 36'' and adding, in its place, ``chapter 1606 
or 38 U.S.C. chapter 30, 32, 33, 35, or 36''.
    b. In paragraph (c)(2)(iii), removing ``chapters 30, 32, or 35'' 
and adding, in its place, ``chapter 30, 32, 33, or 35''.
    c. Revising the authority citation at the end of paragraphs (a) and 
(c).
    The revisions read as follows:


Sec.  21.4250  Course and licensing and certification test approval; 
jurisdiction and notices.

    (a) * * *

(Authority: 38 U.S.C. 3014(b), 3313(e), 3315, 3670, 3672(a))

* * * * *
    (c) * * *

(Authority: 10 U.S.C. 16136; 38 U.S.C. 3034, 3241, 3314, 3323(a), 
3476, 3523, 3672, 3673, 3689)

* * * * *
    34. Amend Sec.  21.4252 by revising the authority citation at the 
end of paragraph (c) to read as follows:


Sec.  21.4252  Courses precluded; erroneous, deceptive, or misleading 
practices.

* * * * *

[[Page 78888]]

    (c) * * *

(Authority: 10 U.S.C. 16131(f); 38 U.S.C. 3034, 3241(b), 3323(a), 
3523(b), 3680A(b))

Subpart G--Post-Vietnam Era Veterans' Educational Assistance Under 
38 U.S.C. Chapter 32

    35. The authority citation for part 21, subpart G continues to read 
as follows:

    Authority: 38 U.S.C. 501(a), chs. 32, 36, and as noted in 
specific sections.

    36. Amend Sec.  21.5022 by revising paragraphs (a) and (b)(1)(i) 
through (b)(1)(ix) and the authority citation at the end of the section 
to read as follows:


Sec.  21.5022  Eligibility under more than one program.

    (a) Concurrent benefits under more than one program. (1) An 
individual cannot receive educational assistance under 38 U.S.C. 
chapter 32 concurrently with benefits under--
    (i) 38 U.S.C. chapter 30 (Montgomery GI Bill--Active Duty);
    (ii) 38 U.S.C. chapter 31 (Vocational Rehabilitation and 
Employment);
    (iii) 38 U.S.C. chapter 33 (Post-9/11 GI Bill);
    (iv) 38 U.S.C. chapter 35 (Survivors' and Dependents' Educational 
Assistance);
    (v) 10 U.S.C. chapter 1606 (Montgomery GI Bill--Selected Reserve);
    (vi) 10 U.S.C. chapter 1607 (Reserve Educational Assistance 
Program);
    (vii) 10 U.S.C. chapter 107 (Educational Assistance Test Program);
    (viii) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
    (ix) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 
note); or
    (x) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).

(Authority: 38 U.S.C. 3322(a), 3681(b), 3695)


    (2) Election. If an individual is eligible for benefits under 38 
U.S.C. chapter 32 and one or more of the programs listed in (a)(1)(i) 
through (a)(1)(x) of this section, he or she must elect in writing 
under which program he or she is claiming benefits. The eligible person 
may make a new election at any time, but may not elect more than once 
in any calendar month.

(Authority: 38 U.S.C. 3033(a), 3322(a))


    (b) * * *
    (1) * * *
    (i) 38 U.S.C. chapter 30 (Montgomery GI Bill--Active Duty);
    (ii) 38 U.S.C. chapter 33 (Post-9/11 GI Bill);
    (iii) 38 U.S.C. chapter 35 (Survivors' and Dependents' Educational 
Assistance);
    (iv) 10 U.S.C. chapter 1606 (Montgomery GI Bill--Selected Reserve);
    (v) 10 U.S.C. chapter 1607 (Reserve Educational Assistance 
Program);
    (vi) 10 U.S.C. chapter 107 (Educational Assistance Test Program);
    (vii) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
    (viii) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 
5561 note); or
    (ix) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).
* * * * *

(Authority: 38 U.S.C. 3034(a), 3231, 3323(a))

Subpart K--All Volunteer Force Educational Assistance Program 
(Montgomery GI Bill--Active Duty)

    37. The authority citation for part 21, subpart K continues to read 
as follows:


    Authority: 38 U.S.C. 501(a), chs. 30, 36, and as noted in 
specific sections.

    38. Amend Sec.  21.7143 by revising paragraphs (a) and (b) to read 
as follows:


Sec.  21.7143  Nonduplication of educational assistance.

    (a) Payments of educational assistance shall not be duplicated. (1) 
Except for receipt of a Montgomery GI Bill--Selected Reserve kicker 
provided under 10 U.S.C. 16131(i), a veteran is barred from 
concurrently receiving educational assistance under 38 U.S.C. chapter 
30 and--
    (i) 38 U.S.C. chapter 31 (Vocational Rehabilitation and 
Employment);
    (ii) 38 U.S.C. chapter 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (iii) 38 U.S.C. chapter 33 (Post-9/11 GI Bill);
    (iv) 38 U.S.C. chapter 35 (Survivors' and Dependents' Educational 
Assistance);
    (v) 10 U.S.C. chapter 1606 (Montgomery GI Bill--Selected Reserve);
    (vi) 10 U.S.C. chapter 1607 (Reserve Educational Assistance 
Program);
    (vii) 10 U.S.C. chapter 107 (Educational Assistance Test Program);
    (viii) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
    (ix) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 
note); or
    (x) The Omnibus Diplomatic Security and Antiterrorism Act of 1986 
(Pub. L. 99-399).
    (b) Election. If an individual is eligible for benefits under 38 
U.S.C. chapter 30 and one or more of the programs listed in (a)(1)(i) 
through (a)(1)(x) of this section, he or she must elect in writing 
under which program he or she is claiming benefits. The eligible person 
may make a new election at any time, but may not elect more than once 
in any calendar month.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3033(a), 3681(b))

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

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

    Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), 512, ch. 36, 
and as noted in specific sections.

    40. Amend Sec.  21.7642 by revising paragraph (a) to read as 
follows:


Sec.  21.7642  Nonduplication of educational assistance.

    (a) Payments of educational assistance shall not be duplicated. A 
reservist is barred from receiving educational assistance concurrently 
under 10 U.S.C. chapter 1606 and any of the following provisions of 
law--
    (1) 38 U.S.C. 30 (Montgomery GI Bill--Active Duty);
    (2) 38 U.S.C. 31 (Vocational Rehabilitation and Employment);
    (3) 38 U.S.C. 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (4) 38 U.S.C. 33 (Post-9/11 GI Bill);
    (5) 38 U.S.C. 35 (Survivors' and Dependents' Educational 
Assistance);
    (6) 10 U.S.C. 1607 (Reserve Educational Assistance Program);
    (7) 10 U.S.C. 107 (Educational Assistance Test Program);
    (8) Section 903 of the Department of Defense Authorization Act, 
1981 (Pub. L. 96-342, 10 U.S.C. 2141 note);
    (9) The Hostage Relief Act of 1980 (Pub. L. 96-449, 5 U.S.C. 5561 
note); or
    (10) The Omnibus Diplomatic Security Act of 1986 (Pub. L. 99-399).

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3033(a), 3241(a), 3322(a), 
3681)

* * * * *
    41. Add new subpart P to read as follows:

Subpart P--Post-9/11 GI Bill

Sec.
21.9500 Introduction.

Definitions

21.9505 Definitions.

Claims and Applications

21.9510 Claims, VA's duty to assist, and time limits.

Eligibility

21.9520 Basic eligibility.

[[Page 78889]]

21.9525 Eligibility for increased and supplemental educational 
assistance.
21.9530 Eligibility time limit.
21.9535 Extended period of eligibility.

Entitlement

21.9550 Entitlement.
21.9555 Entitlement to supplemental educational assistance.
21.9560 Entitlement charges.

Transfer of Entitlement to Basic Educational Assistance to Dependents

21.9570 Transfer of entitlement.

Counseling

21.9580 Counseling.
21.9585 Travel Expenses.

Approved Programs of Education and Courses

21.9590 Approved programs of education and courses.
21.9600 Overcharges.

Payments--Educational Assistance

21.9620 Educational assistance.
21.9625 Beginning dates.
21.9630 Suspension or discontinuance of payments.
21.9635 Discontinuance dates.
21.9640 Rates of payment of educational assistance.
21.9645 Refund of basic contribution to chapter 30.
21.9650 Increase in educational assistance.
21.9655 Rates of supplemental educational assistance.
21.9660 Rural relocation benefit.
21.9665 Reimbursement for licensing or certification tests.
21.9670 Work-study allowance.
21.9675 Conditions that result in reduced rates or no payment.
21.9680 Certifications and release of payments.
21.9685 Tutorial assistance.
21.9690 Nonduplication of educational assistance.
21.9695 Overpayments.
21.9700 Yellow Ribbon Program.

Pursuit of Courses

21.9710 Pursuit.
21.9715 Advance payment certification.
21.9720 Certification of enrollment.
21.9725 Progress and conduct.
21.9730 Pursuit and verifications.
21.9735 Other required reports.
21.9740 False, late, or missing reports.
21.9745 Reporting fee.

Course Assessment

21.9750 Course measurement.
21.9755 Measurement of concurrent enrollments.

Approval of Courses

21.9765 Course approval.

Administrative

21.9770 Administrative.

    Authority: 38 U.S.C. 501(a), 512, chs. 33, 36 and as noted in 
specific sections.

Subpart P--Post-9/11 GI Bill


Sec.  21.9500  Introduction.

    An educational assistance program is established for individuals 
who served on active duty after September 10, 2001. This educational 
assistance program is effective August 1, 2009.

(Authority: Pub. L. 110-252, 122 Stat. 2357, 2378)

Definitions


Sec.  21.9505  Definitions.

    For the purposes of this subpart (governing the administration and 
payment of educational assistance under 38 U.S.C. chapter 33) the 
following definitions apply. (See also additional definitions in 
Sec. Sec.  21.1029 and 21.4200.)
    Academic year means a span of time of not more than 12 months 
during which the institution of higher learning offers periods of 
instruction and includes all divisions of the school year as defined in 
Sec.  21.4200(b)(2) through (b)(5). If an institution of higher 
learning has an academic year lasting longer than 12 months, VA will 
consider the academic year for that institution to be August 1st of 
each calendar year through July 31st of the subsequent calendar year.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    Active duty means full-time duty in the regular components of the 
Armed Forces or under a call or order to active duty under 10 U.S.C. 
688, 12301(a), 12301(d), 12301(g), 12302, or 12304. Active duty does 
not include--
    (1) Full-time duty as a commissioned officer of the Regular or 
Reserve Corps of the Public Health Service;
    (2) Full-time duty as a commissioned officer of the National 
Oceanic and Atmospheric Administration;
    (3) Full-time National Guard Duty performed under 32 U.S.C. orders;
    (4) Any period during which the individual--
    (i) Was assigned full-time by the Armed Forces to a civilian 
institution to pursue a program of education that was substantially the 
same as programs of education offered to civilians;
    (ii) Served as a cadet or midshipmen at one of the service 
academies; or
    (iii) Served under the provisions of 10 U.S.C. 12103(d) pursuant to 
an enlistment in the Army National Guard, Air National Guard, Army 
Reserve, Naval Reserve, Air Force Reserve, Marine Corps Reserve, or 
Coast Guard Reserve;
    (5) A period of service--
    (i) Required by an officer pursuant to an agreement under 10 U.S.C. 
2107(b);
    (ii) Required by an officer pursuant to an agreement under 10 
U.S.C. 4348, 6959, or 9348;
    (iii) That was terminated because the individual is considered a 
minor by the Armed Forces, was erroneously enlisted, or received a 
defective enlistment agreement; or
    (iv) Counted for purposes of repayment of an education loan under 
10 U.S.C. chapter 109; or
    (6) A period of Selected Reserve service used to establish 
eligibility under 38 U.S.C. chapter 30 or 10 U.S.C. chapter 1606 or 
1607.

(Authority: 38 U.S.C. 101(21)(A), 3301(1), 3311(d), 3322(b) and (c))


    Advance payment means an amount of educational assistance payable 
under Sec.  21.9640(b)(1)(ii) or (b)(2)(ii) for the month or fraction 
of the month in which the individual's quarter, semester, or term will 
begin plus the amount for the following month.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(d))


    Course means a unit of instruction required for an approved program 
of education that provides an individual with the knowledge and skills 
necessary to meet the requirements of the selected educational 
objective.

(Authority: 38 U.S.C. 3323(c))


    Distance learning means the pursuit of a program of education via 
distance education as defined in 20 U.S.C. 1003(6).

(Authority: 20 U.S.C. 1003(6); 38 U.S.C. 3323(c))


    Educational assistance means the monetary benefit payable under 38 
U.S.C. chapter 33 to, or on behalf of, individuals who meet the 
eligibility requirements for pursuit of an approved program of 
education under 38 U.S.C. chapter 33.

(Authority: 38 U.S.C. 3313)


    Enrollment period means a term, quarter, or semester during which 
the institution of higher learning offers instruction.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(g))


    Entry level and skill training means--
    (1) Basic Combat Training and Advanced Individual Training for 
members of the Army;
    (2) Recruit Training (Boot Camp) and Skill Training (``A'' School) 
for members of the Navy;
    (3) Basic Military Training and Technical Training for members of 
the Air Force;
    (4) Recruit Training and Marine Corps Training (School of Infantry 
Training) for members of the Marine Corps; and

[[Page 78890]]

    (5) Basic Training for members of the Coast Guard.

(Authority: 38 U.S.C. 3301(2))


    Established charges means the actual charge for tuition and fees 
that similarly circumstanced nonveterans enrolled in the program of 
education are required to pay.

(Authority: 38 U.S.C. 3313(h))

    Fees means any mandatory charges (other than tuition) that are 
universally applied by the institution of higher learning to each and 
every student enrolled in an undergraduate program for that quarter, 
semester, or term.

(Authority: 38 U.S.C. 501(a), 3323(c))


    Institution of higher learning (IHL) means a college, university, 
or similar institution, including a technical or business school, 
offering postsecondary level academic instruction that leads to an 
associate or higher degree if the school is empowered by the 
appropriate State education authority under State law to grant an 
associate or higher degree. When there is no State law to authorize the 
granting of such a degree, the school may be recognized as an 
institution of higher learning if it is accredited for degree programs 
by a recognized accrediting agency. Such term shall also include a 
hospital offering educational programs at the postsecondary level 
without regard to whether the hospital grants a postsecondary degree. 
Such term shall also include an educational institution that offers 
courses leading to a standard college degree or its equivalent, and is 
not located in a State but is recognized as an educational institution 
by the secretary of education (or comparable official) of the country 
or other jurisdiction in which the institution is located.

(Authority: 38 U.S.C. 3034(a), 3313(b), 3323(a), 3452(f))


    Interval means a period of time between regularly scheduled 
individual terms, semesters, or quarters.

(Authority: 38 U.S.C. 3034(a)(1), 3323(a), 3680)


    Lump sum payment means an amount of educational assistance paid for 
the entire term, quarter, or semester.

(Authority: 38 U.S.C. 3323(c))


    Program of education means a curriculum or combination of courses 
pursued at an institution of higher learning that are accepted as 
necessary to meet the requirements for a predetermined and identified 
educational, professional, or vocational objective. Such term also 
means any curriculum or combination of courses pursued at an 
institution of higher learning that are accepted as necessary to meet 
the requirements for more than one predetermined and identified 
educational, professional, or vocational objective if all the 
objectives pursued are generally recognized as being reasonably related 
to a single career field.

(Authority: 38 U.S.C. 3034(a), 3301, 3323(a), 3452(b))


    Pursuit means to work, during a certified enrollment period, 
towards the objective of a program of education. This work must be in 
accordance with approved institutional policy and applicable criteria 
of title 38, U.S.C.; and must be necessary to reach the program's 
objective.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(g))


    Rate of pursuit means the measurement obtained by dividing the 
number of course (credit or clock) hours an individual is enrolled in 
by the number of course (credit or clock) hours considered to be full-
time training at the institution of higher learning. The resulting 
percentage will be the individual's rate of pursuit not to exceed 100 
percent. For the purpose of this subpart, VA will consider any rate of 
pursuit higher than 50 percent to be more than half-time training.

(Authority: 38 U.S.C. 3323, 3680)


    Transferor means an individual who is entitled to educational 
assistance under the Post-9/11 GI Bill based on his or her own active 
duty service and who is approved by the military department to transfer 
all or a portion of his or her entitlement to one or more dependents.

(Authority: 38 U.S.C. 3319)

Claims and Applications


Sec.  21.9510  Claims, VA's duty to assist, and time limits.

    The provisions of subpart B of this part apply to claims filed for 
educational assistance under 38 U.S.C. chapter 33 with respect to VA's 
responsibilities upon receipt of claim, VA's duty to assist claimants 
in obtaining evidence, and time limits.

(Authority: 38 U.S.C. 3323(c), 5101, 5102, 5103, 5103A)

Eligibility


Sec.  21.9520  Basic eligibility.

    An individual may establish eligibility for educational assistance 
under 38 U.S.C. chapter 33 based on active duty service after September 
10, 2001, if he or she--
    (a) Serves a minimum of 90 aggregate days (excluding entry level 
and skill training) and, after completion of such service--
    (1) Continues on active duty;
    (2) Is discharged from service with an honorable discharge;
    (3) Is placed on the retired list, temporary disability retired 
list, or transferred to the Fleet Reserve or the Fleet Marine Corps 
Reserve;
    (4) Is released from service characterized as honorable for further 
service in a reserve component; or
    (5) Is discharged or released from service for--
    (i) A medical condition that preexisted such service and is not 
determined to be service-connected;
    (ii) Hardship, as determined by the Secretary of the military 
concerned; or
    (iii) A physical or mental condition that interfered with the 
individual's performance of duty but was not characterized as a 
disability and did not result from the individual's own misconduct;
    (b) Serves a minimum of 30 continuous days and, after completion of 
such service, is discharged due to a service-connected disability; or
    (c) Makes an irrevocable election to receive benefits under 38 
U.S.C. chapter 33 instead of receiving benefits under 38 U.S.C. chapter 
30 or 10 U.S.C. chapter 1606 or 1607 after meeting the service 
requirements in paragraph (a) or (b) of this section.

(Authority: 38 U.S.C. 3311; Pub. L. 110-252, Stat. 2375-2376)

Sec.  21.9525  Eligibility for increased and supplemental educational 
assistance.

    (a) Increased assistance for members with critical skills or 
specialty. The Secretary of the military department concerned, pursuant 
to regulations prescribed by the Secretary of Defense, may increase the 
amount of educational assistance payable under Sec.  21.9640(b)(1)(ii) 
or (b)(2)(ii) to an individual who has a skill or specialty in which 
there is a critical shortage of personnel, for which there is 
difficulty recruiting, or, in the case of critical units, for which 
there is difficulty in retaining personnel.
    (b) Supplemental assistance for members serving additional service. 
The Secretary of the military department concerned, pursuant to 
regulations prescribed by the Secretary of Defense, may supplement the 
amount of educational assistance payable under Sec.  21.9640(b)(1)(ii) 
or (b)(2)(ii) to an individual who meets the following service 
requirements.
    (1) Individuals with active duty service only. Supplemental 
educational assistance may be offered to an individual who serves 5 or 
more

[[Page 78891]]

consecutive years on active duty in the Armed Forces in addition to the 
years counted to qualify for educational assistance, without a break in 
such service, and--
    (i) Continues on active duty without a break;
    (ii) Is discharged from service with an honorable discharge;
    (iii) Is placed on the retired list;
    (iv) Is transferred to the Fleet Reserve or the Fleet Marine Corps 
Reserve;
    (v) Is placed on the temporary disability retired list; or
    (vi) Is released from active duty for further service in a reserve 
component of the Armed Forces after service on active duty 
characterized by the Secretary concerned as honorable service.
    (2) Individuals with Selected Reserve service. (i) Supplemental 
educational assistance may be offered to an individual who--
    (A) Serves 2 or more consecutive years on active duty in the Armed 
Forces in addition to the years on active duty counted to qualify for 
educational assistance;
    (B) Serves 4 or more consecutive years of duty in the Selected 
Reserve in addition to the years of duty in the Selected Reserve 
counted to qualify the individual for educational assistance; and
    (C) After completion of such service--
    (1) Is discharged from service with an honorable discharge;
    (2) Is placed on the retired list;
    (3) Is transferred to the Fleet Reserve or Fleet Marine Corps 
Reserve;
    (4) Is placed on the temporary disability retired list;
    (5) Continues on active duty; or
    (6) Continues in the Selected Reserve.
    (ii) The Secretary concerned may, pursuant to regulations 
prescribed by the Secretary of Defense, determine the maximum period of 
time during which the individual is considered to have continuous 
service in the Selected Reserve even though the individual--
    (A) Is unable to locate a unit of the Selected Reserve for which he 
or she is eligible;
    (B) Is unable to locate a unit of the Selected Reserve that has a 
vacancy; or
    (C) For any other reason other than those stated in paragraph 
(b)(2)(ii)(A) and (B) above.
    (iii) Any decision as to the continuity of an individual's service 
in the Selected Reserve made by the Secretary of Defense will be 
binding upon VA.

(Authority: 38 U.S.C. 3021, 3022, 3023, 3316)

Sec.  21.9530  Eligibility time limit.

    (a) Except as provided in paragraphs (b) through (e) of this 
section, an individual's period of eligibility for educational 
assistance will terminate effective 15 years from the date of the last 
discharge or release from active duty of at least--
    (1) 90 continuous days; or
    (2) 30 continuous days if the individual is released for a service-
connected disability.
    (b) In the case of an individual who establishes eligibility and 
does not meet one of the service requirements specified in paragraph 
(a) of this section, the individual's period of eligibility for 
educational assistance will terminate effective 15 years from the date 
of discharge for the last period of service used to meet the minimum 
service requirements for eligibility as stated in Sec.  21.9520.
    (c) Amendment of military records. If an individual's eligibility 
for educational assistance is established as a result of a correction 
of military records under 10 U.S.C. 1552, a change, correction, or 
modification of a discharge or dismissal under 10 U.S.C. 1553, or other 
corrective action by a competent military authority, the individual's 
period of eligibility will terminate effective 15 years from the date 
of the change, correction, modification, or other corrective action.

(Authority: 38 U.S.C. 3311(c), 3321)


    (d) Time limit for spouse using transferred entitlement. (1) Unless 
the transferor dies while on active duty, the ending date of the 
spouse's period of eligibility for entitlement transferred under Sec.  
21.9570 is the earliest of the following--
    (i) The transferor's ending date as determined under this section;
    (ii) The ending date specified by the transferor, if the transferor 
specified the period for which the transfer was effective; or
    (iii) The effective date of the transferor's revocation of 
transferred entitlement as determined under Sec.  21.9570(f).
    (2) If the transferor dies while on active duty, the ending date of 
the spouse's period of eligibility is the earliest of the following--
    (i) The date 15 years from the transferor's date of death;
    (ii) The ending date specified by the transferor, if the transferor 
specified the period for which the transfer was effective; or
    (iii) The effective date of the transferor's revocation of 
transferred entitlement as determined under Sec.  21.9570(f).

(Authority: 38 U.S.C. 3319)


    (e) Time limit for child using transferred entitlement. (1) The 
ending date of the child's period of eligibility for entitlement 
transferred under Sec.  21.9570 is the earliest of the following--
    (i) The ending date specified by the transferor, if the transferor 
specified the period for which the transfer was effective;
    (ii) The effective date of the transferor's revocation of 
transferred entitlement as determined under Sec.  21.9570(f); or
    (iii) The day the child turns 26.
    (2) [Reserved]

(Authority: 38 U.S.C. 3319)

Sec.  21.9535  Extended period of eligibility.

    VA will extend an individual's period of eligibility in accordance 
with the following provisions.
    (a) Disability extension. (1) VA will grant an extension of the 
period of eligibility, as determined in Sec.  21.9530 provided--
    (i) The individual applies for the extension within the time 
specified in Sec.  21.1033(c); and
    (ii) The medical evidence clearly establishes that the individual 
was prevented from initiating or completing the chosen program of 
education within the original period of eligibility because of a 
physical or mental disability that did not result from the individual's 
willful misconduct. VA will not consider the disabling effects of 
chronic alcoholism to be the result of willful misconduct. VA will not 
consider an individual's disability for a period of 30 days or less as 
having prevented the individual from initiating or completing a chosen 
program, unless the evidence establishes that the individual was 
prevented from enrolling or reenrolling in the chosen program or was 
forced to discontinue attendance due to the short-term disability.
    (2) Length of extension. An individual's extended period of 
eligibility shall be for the length of time that the individual was 
prevented from initiating or completing his or her chosen program of 
education. This will be determined as follows--
    (i) If the individual is pursuing a program of education organized 
on a term, quarter, or semester basis, his or her extended period of 
eligibility shall contain the same number of days as the number of days 
from the date the individual was prevented from initiating or 
completing training during his or her original period of eligibility to 
the earliest of--
    (A) The beginning date of the ordinary term, quarter, or semester 
following the day the individual's training became medically feasible;

[[Page 78892]]

    (B) The last date of the individual's original period of 
eligibility as determined in Sec.  21.9530; or
    (C) The date the individual resumed training.
    (ii) If the individual is pursuing a program of education that is 
not organized on a term, quarter, or semester basis, his or her 
extended period of eligibility will contain the same number of days as 
the number of days from the date the individual was prevented from 
initiating or completing training during his or her original period of 
eligibility to the earliest of--
    (A) The date the individual's training became medically feasible; 
or
    (B) The last date of the individual's original period of 
eligibility as determined in Sec.  21.9530.
    (b) Forcibly detained extension. (1) VA will grant an extension of 
the period of eligibility, as determined in Sec.  21.9530, equal to the 
period of time the individual--
    (i) Was captured and forcibly detained by a foreign government or 
power, and
    (ii) Was hospitalized at a military, civilian, or medical facility 
immediately following release from the foreign government or power.
    (2) [Reserved]

(Authority: 38 U.S.C. 3321)

Entitlement


Sec.  21.9550  Entitlement.

    (a) Subject to the provisions of Sec.  21.4020 and this section, an 
eligible individual is entitled to a maximum of 36 months of 
educational assistance (or its equivalent in part-time educational 
assistance) under 38 U.S.C. chapter 33.
    (b)(1) An individual who, as of August 1, 2009, has used 
entitlement under 38 U.S.C. chapter 30, but who retains unused 
entitlement under that chapter, makes an irrevocable election to 
receive educational assistance under the provisions of 38 U.S.C. 
chapter 33 instead of educational assistance under the provisions of 
chapter 30, he or she will be limited to one month (or partial month) 
of entitlement under chapter 33 for each month (or partial month) of 
unused entitlement under chapter 30 (including any months of chapter 30 
entitlement previously transferred to a dependent that the individual 
has revoked).
    (2) An individual, who as of August 1, 2009, was eligible under 38 
U.S.C. chapter 30 but had not used any entitlement under that program, 
was making contributions towards chapter 30, or was a servicemember who 
would have been eligible for chapter 30 if he or she had not declined 
participation, will receive 36 months of entitlement under chapter 33.
    (3) An individual who, as of August 1, 2009, has exhausted all 
entitlement, to which he or she was eligible under chapter 30, will not 
receive entitlement under chapter 33 based on his or her previous 
chapter 30 eligibility.
    (c) Except as provided in Sec. Sec.  21.9560(e), 21.9570(m), and 
21.9635(o), no individual is entitled to more than 36 months of full-
time educational assistance.

(Authority: 38 U.S.C. 3034(a), 3312(a), 3323(a), 3695; Pub. L. 110-
252, 122 Stat. 2377)

Sec.  21.9555  Entitlement to supplemental educational assistance.

    In determining the entitlement of an individual who is eligible for 
supplemental educational assistance, VA will--
    (a) Calculate the individual's entitlement to 38 U.S.C. chapter 33 
educational assistance on the day he or she establishes eligibility for 
supplemental educational assistance; and
    (b) Credit the individual with the same number of months and days 
of entitlement to supplemental educational assistance as the number 
calculated in paragraph (a) of this section.

(Authority: 38 U.S.C. 3023, 3316)

Sec.  21.9560  Entitlement charges.

    (a) Overview. Except as provided in paragraphs (c) through (f) of 
this section, VA will base entitlement charges on the principle that an 
eligible individual who is paid educational assistance for one day of 
full-time pursuit should be charged one day of entitlement.
    (b) Determining entitlement charge. (1) VA will make a charge 
against entitlement as follows:
    (i) Full-time pursuit. If the individual is pursuing a program of 
education on a full-time basis, the entitlement charge will be one of 
the following--
    (A) During any period in which VA pays established charges to the 
institution of higher learning on the individual's behalf, the 
entitlement charge will be one day for each day of the certified 
enrollment period;
    (B) During any period in which VA does not pay established charges 
to the institution of higher learning on the individual's behalf but 
pays a monthly housing allowance to the individual, the entitlement 
charge will be one day for each day of the certified enrollment period 
and/or interval period for which the individual receives the monthly 
housing allowance; or
    (C) During any period in which VA does not pay established charges 
to the institution of higher learning on the individual's behalf or a 
monthly housing allowance to the individual but makes a lump sum 
payment to the individual for books, supplies, equipment, and other 
educational costs, VA will make an entitlement charge of 1 day for 
every $33 paid, with any remaining amount rounded to the nearest amount 
evenly divisible by $33.
    (ii) Less than full-time pursuit. If the individual is pursuing a 
program of education on a less than a full-time basis, the entitlement 
charge will be one of the following--
    (A) During any period in which VA pays established charges to the 
institution of higher learning on the individual's behalf, the 
individual will be charged a percentage of a day for each day of the 
certified enrollment period determined by dividing the number of course 
hours the individual is pursuing by the number of course hours required 
for full-time pursuit (rounded to the nearest hundredth);
    (B) During any period in which VA does not pay established charges 
to the institution of higher learning on the individual's behalf but 
pays a monthly housing allowance to the individual, the individual will 
be charged a percentage of a day for each day of the certified 
enrollment period and/or interval period for which the individual 
receives the monthly housing allowance determined by dividing the 
number of course hours the individual is pursuing by the number of 
course hours required for full-time pursuit (rounded to the nearest 
hundredth); or
    (C) During any period in which VA does not pay established charges 
to the institution of higher learning on the individual's behalf or a 
monthly housing allowance to the individual but makes a lump sum 
payment to the individual for books, supplies, equipment, and other 
educational costs, VA will make an entitlement charge of 1 day for 
every $33 paid, with any remaining amount rounded to the nearest amount 
evenly divisible by $33.

(Authority: 38 U.S.C. 3313)


    (2) If the individual changes his or her rate of pursuit after the 
beginning date of the award, VA will--
    (i) Divide the certified enrollment period into separate periods of 
time so that the individual's rate of pursuit is constant within each 
period; and
    (ii) Compute the rate of pursuit separately for each time period.
    (c) Individuals eligible for, or in receipt of, educational 
assistance other than that authorized under chapter 33. If an 
individual elected 38 U.S.C. chapter 33 by relinquishing educational 
assistance under another program but receives educational assistance 
for a

[[Page 78893]]

program of education that is approved under the relinquished chapter 
but not approved under 38 U.S.C. chapter 33, VA will make a charge 
against entitlement equivalent to the entitlement charge--
    (1) That would be made under the provisions of Sec.  21.7076, if 
the individual relinquished eligibility under 38 U.S.C. chapter 30;
    (2) That would be made under the provisions of Sec.  21.7576 if the 
individual relinquished eligibility under 10 U.S.C. chapter 1606; or
    (3) That would be made under 10 U.S.C. chapter 1607 if the 
individual relinquished eligibility under 10 U.S.C. chapter 1607.
    (d) No entitlement charge. VA will not make a charge against an 
individual's entitlement--
    (1) For an approved licensing or certification test as provided 
under Sec.  21.9665; or

(Authority: 38 U.S.C. 3315)


    (2) For tutorial assistance as provided under Sec.  21.9685; or

(Authority: 38 U.S.C. 3314)


    (3) For the rural relocation benefit as provided under Sec.  
21.9660; or

(Authority: 38 U.S.C. 3318)


    (4) For pursuit of a course or courses when the individual--
    (i) Had to discontinue the course or courses as a result of being 
ordered to--
    (A) Active duty service under 10 U.S.C. 12301(a), 12301(d), 
12301(g), 12302, or 12304; or
    (B) A new duty location or assignment or to perform an increased 
amount of work; and
    (ii) Did not receive credit or lost training time for any portion 
of the period of enrollment in the course or courses for which the 
eligible individual was pursuing to complete his or her approved 
educational, professional, or vocational objective as a result of 
having to discontinue pursuit.

(Authority: 38 U.S.C. 3312(c))


    (e) Interruption to conserve entitlement. An individual may not 
interrupt a certified period of enrollment for the purpose of 
conserving entitlement. An educational institution may not certify a 
period of enrollment for a fractional part of the normal term, quarter, 
or semester if the individual is enrolled for the entire term, quarter, 
or semester. VA will make a charge against entitlement for the entire 
period of certified enrollment, if the individual is otherwise eligible 
for educational assistance, except when educational assistance is 
interrupted for any of the following conditions:
    (1) Enrollment is terminated;
    (2) The individual cancels his or her enrollment and does not 
negotiate an educational assistance check for any part of the certified 
period of enrollment;
    (3) The individual interrupts his or her enrollment at the end of 
any term, quarter, or semester within a certified period of enrollment 
and does not negotiate a check for educational assistance for the 
succeeding term, quarter, or semester; or
    (4) The individual requests interruption or cancellation for any 
break when a school was closed during a certified period of enrollment, 
and VA continued payments under an established policy based upon an 
Executive Order of the President or an emergency situation regardless 
of whether or not the individual negotiated a check for educational 
assistance for any part of the certified enrollment period.

(Authority: 38 U.S.C. 3323(c))


    (f) Overpayment cases. VA will make a charge against entitlement 
for an overpayment only if the overpayment is discharged in bankruptcy, 
is waived and not recovered, or is compromised.
    (1) If the overpayment is discharged in bankruptcy or is waived and 
not recovered, the charge against entitlement will be the appropriate 
rate for the elapsed period covered by the overpayment (exclusive of 
interest, administrative costs of collection, court costs and marshal 
fees).
    (2) If the overpayment is compromised and the compromise offer is 
less than the amount of interest, administrative costs of collection, 
court costs and marshal fees, the charge against entitlement will be at 
the appropriate rate for the elapsed period covered by the overpayment 
(exclusive of interest, administrative costs of collection, court costs 
and marshal fees).
    (3) If the overpayment is compromised and the compromise offer is 
equal to or greater than the amount of interest, administrative costs 
of collection, court costs and marshal fees, the charge against 
entitlement will be determined by--
    (i) Subtracting from the sum paid in the compromise offer the 
amount attributable to interest, administrative costs of collection, 
court costs and marshal fees;
    (ii) Subtracting the remaining amount of the overpayment balances 
as determined in paragraph (f)(3)(i) of this section from the amount of 
the original overpayment (exclusive of interest, administrative costs 
of collection, court costs and marshal fees);
    (iii) Dividing the result obtained in paragraph (f)(3)(i) of this 
section from the amount of the original overpayment (exclusive of 
interest, administrative costs of collection, court costs and marshal 
fees); and
    (iv) Multiplying the percentage obtained in paragraph (f)(3)(iii) 
of this section by the amount of entitlement otherwise chargeable for 
the period of the original overpayment.

(Authority: 38 U.S.C. 3034(a), 38 U.S.C. 3323(a), 3685)

Transfer of Entitlement to Basic Educational Assistance to Dependents


Sec.  21.9570  Transfer of entitlement.

    An individual entitled to educational assistance under 38 U.S.C. 
chapter 33 based on his or her own active duty service, and who is 
approved by a service department to transfer entitlement, may transfer 
up to a total of 36 months of his or her entitlement to a dependent (or 
among dependents). A transferor may not transfer an amount of 
entitlement that is greater than the entitlement he or she has 
available at the time of transfer.
    (a) Application of sections in subpart P to individuals in receipt 
of transferred entitlement. In addition to the rules in this section, 
the following sections apply to a dependent in the same manner as they 
apply to the individual from whom entitlement was transferred.
    (1) Definitions. Section 21.9505--Definitions;

(Authority: 38 U.S.C. 3319)


    (2) Claims and applications. Section 21.9510--Claims, VA's duty to 
assist, and time limits.

(Authority: 38 U.S.C. 3319)


    (3) Eligibility.
    (i) Section 21.9530--Eligibility time limit, paragraphs (d) and (e) 
only; and
    (ii) Section 21.9535--Extended period of eligibility, except that 
extensions to dependents are subject to the transferor's right to 
revoke or modify transfer at any time and that VA may only extend a 
child's ending date to the date the child attains age 26.

(Authority: 38 U.S.C. 3319)


    (4) Entitlement.
    (i) Section 21.9550--Entitlement;
    (ii) Section 21.9560--Entitlement charges.

(Authority: 38 U.S.C. 3319)


    (5) Counseling.
    (i) Section 21.9580--Counseling;
    (ii) Section 21.9585--Travel expenses.

(Authority: 38 U.S.C. 3319)


    (6) Approved programs of education and courses.

[[Page 78894]]

    (i) Section 21.9590--Approved programs of education and courses;
    (ii) Section 21.9600--Overcharges.

(Authority: 38 U.S.C. 3319)


    (7) Payments--Educational assistance.
    (i) Section 21.9620--Educational assistance;
    (ii) Section 21.9625--Beginning dates, except for paragraphs (e) 
and (h);
    (iii) Section 21.9630--Suspension or discontinuance of payments;
    (iv) Section 21.9635--Discontinuance dates, except for paragraphs 
(n) and (o);
    (v) Section 21.9640--Rates of payment of educational assistance;
    (vi) Section 21.9650--Increase in educational assistance;
    (vii) Section 21.9655--Rates of supplemental educational 
assistance;
    (viii) Section 21.9660--Rural relocation benefit;
    (ix) Section 21.9665--Reimbursement for licensing or certification 
tests;
    (x) Section 21.9670--Work-study allowance;
    (xi) Section 21.9675--Conditions that result in reduced rates or no 
payment;
    (xii) Section 21.9680--Certifications and release of payments;
    (xiii) Section 21.9685--Tutorial assistance;
    (xiv) Section 21.9690--Nonduplication of educational assistance; 
and
    (xv) Section 21.9695--Overpayments, except that the dependent and 
transferor are jointly and severally liable for any amount of 
overpayment of educational assistance to the dependent.

(Authority: 38 U.S.C. 3319)


    (xvi) Section 21.9700--Yellow Ribbon Program

(Authority: 38 U.S.C. 3317)


    (8) Pursuit of courses.
    (i) Section 21.9710--Pursuit;
    (ii) Section 21.9715--Advance payment certification;
    (iii) Section 21.9720--Certification of enrollment;
    (iv) Section 21.9725--Progress and conduct;
    (v) Section 21.9730--Pursuit and verifications;
    (vi) Section 21.9735--Other required reports;
    (vii) Section 21.9740--False, late, or missing reports; and
    (viii) Section 21.9745--Reporting fee.

(Authority: 38 U.S.C. 3319)


    (9) Course assessment.
    (i) Section 21.9750--Course; and
    (ii) Section 21.9755--Measurement of concurrent enrollments.

(Authority: 38 U.S.C. 3319)


    (10) Administrative. Sec.  21.9770--Administrative

(Authority: 38 U.S.C. 3319)


    (b) Eligible dependents.
    (1) An individual transferring entitlement under this section may 
transfer entitlement to:
    (i) The individual's spouse;
    (ii) One or more of the individual's children; or
    (iii) A combination of the individuals referred to in paragraphs 
(b)(1)(i) and (ii) of this section.
    (2) A spouse must meet the definition of spouse in Sec.  3.50(a).
    (3) A child must meet the definition of child in Sec.  3.57.
    (4) A stepchild, who meets VA's definition of child in Sec.  3.57 
and is temporarily not living with the transferor, remains a member of 
the transferor's household if the actions and intentions of the 
stepchild and transferor establish that normal family ties have been 
maintained during the temporary absence.

(Authority: 38 U.S.C. 3319)


    (c) Timeframe during which an individual may transfer entitlement. 
An individual approved by his or her military department to transfer 
entitlement may do so at any time while serving as a member of the 
Armed Forces, subject to the transferor's 15-year period of eligibility 
as provided in Sec.  21.9530.

(Authority: 38 U.S.C. 3319)


    (d) Designating dependents; designating the amount to transfer; and 
period of transfer.
    (1) An individual transferring entitlement under this section must:
    (i) Designate the dependent or dependents to whom such entitlement 
is being transferred;
    (ii) Designate the number of months of entitlement to be 
transferred to each dependent; and
    (iii) Specify the beginning date and ending date of the period for 
which the transfer is effective for each dependent.
    (2) VA will accept the transferor's designations as shown on any 
document signed by the transferor that shows the information required 
in paragraphs (d)(1)(i) through (d)(1)(iii) of this section.

(Authority: 38 U.S.C. 3020)


    (e) Maximum months of entitlement transferable.
    (1) The maximum amount of entitlement a transferor may transfer is 
the lesser of:
    (i) Thirty-six months of his or her entitlement; or
    (ii) The maximum amount authorized by the Secretary of the service 
department concerned; or
    (iii) The amount of entitlement he or she has available at the time 
of transfer.
    (2) The transferor may transfer up to the maximum amount of 
transferable entitlement:
    (i) To one dependent; or
    (ii) Divided among his or her designated dependents in any manner 
he or she chooses.

(Authority: 38 U.S.C. 3319)


    (f) Revocation of transferred entitlement.
    (1) A transferor may revoke any unused portion of transferred 
entitlement at any time by submitting a written notice to both the 
Secretary of Veterans Affairs and the Secretary of the military 
department concerned that initially approved the transfer of 
entitlement. VA will accept a copy of the written notice addressed to 
the military department as sufficient written notification to VA.
    (2) The revocation will be effective the later of--
    (i) The date VA receives the notice of revocation; or
    (ii) The date the military department concerned receives the notice 
of revocation.

(Authority: 38 U.S.C. 3319)


    (g) Modifying a transfer of entitlement.
    (1) A transferor may modify the designations he or she made under 
paragraph (d) of this section at any time. Any modification made will 
apply only with respect to unused transferred entitlement. The 
transferor must submit a written notice to both the Secretary of 
Veterans Affairs and the Secretary of the military department concerned 
that initially approved the transfer of entitlement. VA will accept a 
copy of the written notice addressed to the military department as 
sufficient written notification to VA.
    (2) The modification will be effective the later of--
    (i) The date VA receives the notice of modification; or
    (ii) The date the military department concerned receives the notice 
of modification.

(Authority: 38 U.S.C. 3319)


    (h) Prohibition on treatment of transferred entitlement as marital 
property. Entitlement transferred under this section may not be treated 
as marital property, or the asset of a marital estate, subject to 
division in a divorce or other civil proceeding.

(Authority: 38 U.S.C. 3319)


    (i) Entitlement charge to transferor. VA will reduce the 
transferor's entitlement at the rate of 1 month of

[[Page 78895]]

entitlement for each month of transferred entitlement used by a 
dependent or dependents.

(Authority: 38 U.S.C. 3319)


    (j) Secondary school diploma (or equivalency certificate). Children 
who have reached age 18 and spouses may use transferred entitlement to 
pursue and complete the requirements of a secondary school diploma (or 
equivalency certificate).

(Authority: 38 U.S.C. 3319)


    (k) Rate of payment of educational assistance. VA will apply the 
rules in Sec.  21.9640 (and Sec.  21.9655 when applicable) to determine 
the educational assistance rate that would apply to the transferor. VA 
will pay the dependent and/or the dependent's institution of higher 
learning the amounts of educational assistance payable under 38 U.S.C. 
chapter 33 in the same manner and at the same rate as if the transferor 
were enrolled in the dependent's program of education, except that VA 
will--
    (1) Exclude the transferor's kicker if the transferor is eligible 
for such an increase (Sec.  21.9650) due to his or her own eligibility 
under 38 U.S.C. chapter 30 or 10 U.S.C. chapter 1606; and
    (2) Disregard the fact that either the transferor or the dependent 
is (or both are) on active duty, and pay the veteran rate to a 
dependent child.

(Authority: 38 U.S.C. 3319)


    (l) Transferor fails to complete required service contract that 
afforded participation in the transferability program.
    (1) Dependents are not eligible for transferred entitlement if the 
transferor fails to complete the amount of service he or she agreed to 
serve in the Armed Forces in order to participate in the 
transferability program, unless the transferor did not complete the 
service due to:
    (i) His or her death;
    (ii) A service-connected disability;
    (iii) A medical condition that preexisted such service on active 
duty and that the Secretary of the military department concerned 
determines is not service-connected;
    (iv) A hardship, as determined by the Secretary of the military 
concerned; or
    (v) A physical or mental condition that was not characterized as a 
disability and did not result from the individual's own willful 
misconduct but interfered with the individual's performance of duty, as 
determined by the Secretary of the military department concerned.
    (2) VA will treat all payments of educational assistance to 
dependents as overpayments if the transferor does not complete the 
required service unless the transferor does not complete the required 
service due to one of the reasons stated in paragraph (l)(1)(i) through 
(iv) of this section.

(Authority: 38 U.S.C. 3034(a), 3319)


    (m) Dependent is eligible for educational assistance under this 
section and is eligible for educational assistance under 38 U.S.C. 
chapter 33 based on his or her own service. Dependents who are eligible 
for payment of educational assistance through transferred entitlement 
and are eligible for payment under 38 U.S.C. chapter 33 based on their 
own active service:
    (1) May receive educational assistance payable under this section 
and educational assistance payable based on their own active duty 
service for the same course; and
    (2) Are not subject to the 48 months limit on training provided for 
in Sec.  21.4020 when combining transferred entitlement with their own 
entitlement earned under 38 U.S.C. chapter 33 as long as the only 
educational assistance paid is under 38 U.S.C. chapter 33. If the 
dependent is awarded educational assistance under another program 
listed in Sec.  21.4020 (other than 38 U.S.C. chapter 33), the 48 
months limit on training will apply.

(Authority: 38 U.S.C. 3034(a), 3319, 3322, 3323(a), 3695)

Counseling


Sec.  21.9580  Counseling.

    An individual may receive counseling from VA before beginning 
training and during training. VA will apply the provisions of Sec.  
21.7100 to beneficiaries under 38 U.S.C. chapter 33 in the same manner 
as they are applied to individuals under 38 U.S.C. chapter 30.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3697A)

Sec.  21.9585  Travel expenses.

    VA will not pay for any costs of travel to and from the place of 
counseling regardless of whether the individual requests educational 
and vocational counseling or whether the counseling is required.

(Authority: 38 U.S.C. 111, 3323(c))

Approved Programs of Education and Courses


Sec.  21.9590  Approved programs of education and courses.

    (a) Payments of educational assistance are based on pursuit of a 
program of education. In order to receive educational assistance under 
38 U.S.C. chapter 33, an eligible individual must-
    (1) Be pursuing an approved program of education;
    (2) Be pursuing refresher or deficiency courses;
    (3) Be pursuing other preparatory or special education or training 
courses necessary to enable the individual to pursue an approved 
program of education;
    (4) Have taken an approved licensing or certification test, for 
which he or she is requesting reimbursement; or
    (5) Be an individual who has taken a course for which the 
individual received tuition assistance provided under a program 
administered by the Secretary of a military department under 10 U.S.C. 
2007(a) or (c), for which the individual is requesting educational 
assistance for the amount of established charges not covered by 
military tuition assistance.

(Authority: 38 U.S.C. 3313, 3323(a), 3689)


    (b) Approval of the selected program of education. Subject to 
paragraph (a), VA will approve a program of education under 38 U.S.C. 
chapter 33 selected by the individual if:
    (1) The program meets the definition of a program of education in 
Sec.  21.9505;
    (2) Except for a program consisting of a licensing or certification 
test, the program has an educational objective as described in Sec.  
21.7020(b)(13);
    (3) The courses, subjects, or licensing or certification tests in 
the program are approved for VA training; and
    (4) Except for a program consisting of a licensing or certification 
test designed to help the individual maintain employment in a vocation 
or profession, the individual is not already qualified for the 
objective of the program.

(Authority: 38 U.S.C.3034(a), 3323(a), 3471, 3689)


    (c) Change of program. In determining whether an individual may 
change his or her selected program of education, VA will apply the 
provisions of Sec.  21.4234.
    (d) Programs not authorized under 38 U.S.C. chapter 33. If an 
individual elected to receive benefits under 38 U.S.C. chapter 33 by 
relinquishing eligibility under 38 U.S.C. chapter 30; or 10 U.S.C. 
chapter 1606 or 1607, and the eligible individual requests educational 
assistance for a program of education that is not authorized to be 
available to the individual under the provisions of 38 U.S.C. chapter 
33, but is available under the chapter the individual relinquished, VA 
will provide educational assistance at the rate payable under the 
provisions of the relinquished chapter to the eligible individual for 
pursuit of any program of

[[Page 78896]]

education that meets the approval criteria under--
    (1) 38 U.S.C. chapter 30, if the individual was eligible under that 
chapter;
    (2) 10 U.S.C. chapter 1606, if the individual was eligible under 
that chapter; or
    (3) 10 U.S.C. chapter 1607, if the individual was eligible under 
that chapter.

(Authority: Pub. L. 110-252, 122 Stat. 2377)

Sec.  21.9600  Overcharges.

    (a) Overcharges by educational institutions may result in the 
disapproval of enrollments. VA may disapprove an institution of higher 
learning for further enrollments if the institution of higher learning 
charges or receives from an individual tuition and fees that exceed the 
established charges that the institution of higher learning requires 
from similarly circumstanced individuals enrolled in the same course.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690(a))


    (b) Overcharges by organizations or entities offering licensing or 
certification tests may result in disapproval of tests. VA may 
disapprove an organization or entity offering a licensing or 
certification test when the organization or entity offering the test 
charges or receives from an individual fees that exceed the established 
fees that the organization or entity requires from similarly 
circumstanced individuals taking the same test.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3689(d), 3690(a))

Payments--Educational Assistance


Sec.  21.9620  Educational assistance.

    VA will pay educational assistance for an eligible individual's 
pursuit of an approved program of education. The eligible individual 
and/or the individual's educational institution will receive payment 
amounts in accordance with the formulas listed in Sec.  21.9640. The 
maximum amounts of educational assistance payable under 38 U.S.C. 
chapter 33 will be published in the ``Notices'' section of the Federal 
Register by the first of August of each calendar year. The maximum 
amounts payable may also be obtained by visiting the GI Bill Web site 
at http://www.gibill.va.gov or by calling VA's customer service 
department toll-free at 1-888-442-4551.

(Authority: 38 U.S.C. 3313, 3314, 3315, 3316, 3317)

Sec.  21.9625  Beginning dates.

    VA will determine the beginning date of an award or increased award 
of educational assistance under this section, but in no case will the 
beginning date be earlier than August 1, 2009. When more than one 
paragraph in this section applies, VA will award educational assistance 
using the latest of the applicable beginning dates.

(Authority: 38 U.S.C. 3313, 3316, 3323(a), 5110, 5111, 5113)


    (a) Entrance or reentrance including change of program or 
institution of higher learning. When an eligible individual enters or 
reenters into training (including a reentrance following a change of 
program or institution of higher learning), the beginning date of his 
or her award of educational assistance will be determined as follows:
    (1) For other than a licensing or certification test. (i) If the 
award is the first award of educational assistance for the program of 
education the eligible individual is pursuing, the beginning date will 
be the latest of--
    (A) The date the institution of higher learning certifies under 
paragraph (b) or (c) of this section;
    (B) One year before the date of claim as determined by Sec.  
21.1029(b);
    (C) The effective date of the approval of the program of education; 
or
    (D) One year before the date VA receives approval notice for the 
program of education.
    (ii) If the award is the second or subsequent award of educational 
assistance for the program of education the eligible individual is 
pursuing, the effective date of the award will be the latest of--
    (A) The date the institution of higher learning certifies under 
paragraph (b) or (c) of this section;
    (B) The effective date of the approval of the program of education; 
or
    (C) One year before the date VA receives the approval notice for 
the program of education.

(Authority: 38 U.S.C. 3034(a), 3313, 3316, 3323(a), 3672, 5103)


    (2) For a licensing or certification test. VA will award 
educational assistance for the cost of a licensing or certification 
test only when the eligible individual takes such test on or after 
August 1, 2009--
    (i) While the test is approved under 38 U.S.C. chapter 36;
    (ii) While the individual is eligible for educational assistance 
under this subpart; and
    (iii) No more than one year before the date VA receives a claim for 
reimbursement of the cost of the test.

(Authority: 38 U.S.C. 3034(a), 3315, 3323(a), 3452(b), 3689)


    (b) Certification for program of education that leads to a standard 
college degree. (1) When the individual enrolls in a course offered by 
independent study or distance learning, the beginning date of the award 
or increased award of educational assistance will be the date the 
eligible individual begins pursuit of the course according to the 
regularly established practices of the institution of higher learning.
    (2) When the individual enrolls in a resident course, the beginning 
date of the award or increased award of educational assistance will be 
the first scheduled date of classes for the term, quarter, or semester 
in which the eligible individual is enrolled, except as provided in 
paragraphs (b)(3), (b)(4), and (b)(5) of this section.
    (3) When the individual enrolls in a resident course whose first 
scheduled class begins after the calendar week when, according to the 
school's academic calendar, classes are scheduled to begin for the 
term, quarter, or semester, the beginning date of the award or 
increased award of educational assistance allowance will be the actual 
date of the first class scheduled for that particular course.
    (4) When the individual enrolls in a resident course, the beginning 
date of the award will be the date of reporting provided that--
    (i) The published standards of the school require the eligible 
individual to register before reporting; and
    (ii) The published standards of the school require the eligible 
individual to report no more than 14 days before the first scheduled 
date of classes for the term, quarter, or semester for which the 
eligible individual has registered.
    (5) When the eligible individual enrolls in a resident course and 
the first day of classes is more than 14 days after the date of 
registration, the beginning date of the award or increased award of 
educational assistance will be the first day of classes.

(Authority: 38 U.S.C. 3313, 3316, 3323)


    (c) Certification for program of education that does not lead to a 
standard college degree. (1) When an eligible individual enrolls at an 
institution of higher learning for a program of education that is 
offered in residence but that does not lead to a standard college 
degree, the beginning date of the award of educational assistance will 
be as stated in paragraph (b) of this section.

(Authority: 38 U.S.C. 3313(b), 3323)


    (2) When an eligible individual enrolls at an institution of higher

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learning for a program of education that is offered by correspondence, 
the beginning date of the award of educational assistance will be the 
later of--
    (i) The date the first lesson was sent, or
    (ii) The date of affirmance (as defined in Sec.  21.7020(b)(36)).

(Authority: 38 U.S.C. 3313, 3316, 3323)


    (d) Liberalizing laws and VA issues. When a liberalizing law or VA 
issue affects the beginning date of an eligible individual's award of 
educational assistance, the beginning date will be adjusted in 
accordance with the facts found, but not earlier than the effective 
date of the act or administrative issue.

(Authority: 38 U.S.C. 3323(c), 5113)


    (e) Correction of military records. As determined in Sec.  21.9530, 
the eligibility of a veteran may arise because the nature of the 
veteran's discharge or release is changed by appropriate military 
authority. In these cases, the beginning date of the veteran's 
educational assistance will be in accordance with facts found, but not 
earlier than the date the nature of the discharge or release was 
changed.

(Authority: 38 U.S.C.3323(c))


    (f) Individuals in a penal institution. If an eligible individual 
is not receiving, or is receiving a reduced rate, of educational 
assistance under Sec.  21.9675 (based on incarceration in a Federal, 
State, or local penal institution due to a felony conviction), the rate 
will be increased or assistance will begin effective the earlier of the 
following:
    (1) The date the tuition and fees are no longer being paid under 
another Federal, State, or local program; or
    (2) The date the individual is released from the penal institution.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3482(g))


    (g) Increase (``kicker'') based on critical skills or specialty. If 
an eligible individual is entitled to an increase (``kicker'') in the 
monthly rate of educational assistance, the effective date of that 
increase ('kicker'') will be the later of--
    (1) The beginning date of an eligible individual's award as 
determined by paragraphs (a) through (e) of this section; or
    (2) The first date on which the eligible individual is entitled to 
the increase (``kicker'') as determined by the Secretary of the 
military department concerned.

(Authority: 10 U.S.C. 16131(i); 38 U.S.C. 3015(d), 3316(a))


    (h) Increase in percentage of maximum amount payable based on 
length of active duty service requirements. If an eligible individual 
is entitled to an increase in the percentage of the maximum amount of 
educational assistance payable as a result of meeting additional length 
of active duty service requirements, the effective date of that 
increase will be the later of--
    (1) The beginning date of the eligible individual's award as 
determined by paragraphs (a) through (e) of this section; or
    (2) The first day of the term, quarter, or semester following the 
term, quarter, or semester in which the eligible individual becomes 
entitled to an increase in the percentage of the maximum amount 
payable.

(Authority: 38 U.S.C. 3311, 3313)


    (i) Spouse eligible for transferred entitlement. If a spouse is 
eligible for transferred entitlement under Sec.  21.9570, the beginning 
date of the award of educational assistance will be no earlier than the 
latest of the following dates--
    (1) The date the Secretary of the military department concerned 
approves the transferor to transfer entitlement;
    (2) The date the transferor completes 6 years of service in the 
Armed Forces;
    (3) The date the transferor specified in his or her designation of 
transfer; or
    (4) The date the spouse first meets the definition of spouse in 
Sec.  3.50(a) of this chapter.

(Authority: 38 U.S.C. 3319)


    (j) Child eligible for transferred entitlement. If a child is 
eligible for transferred entitlement under Sec.  21.9570, the beginning 
date of the award of educational assistance will be no earlier than the 
latest of the following dates--
    (1) The date the Secretary of the service department concerned 
approves the transferor to transfer entitlement;
    (2) The date the transferor completes 10 years of service in the 
Armed Forces;
    (3) The date the transferor specified in his or her designation of 
transfer;
    (4) The date the child first meets the definition of child in Sec.  
3.57 of this chapter; or
    (5) Either--
    (i) The date the child completes the requirements of a secondary 
school diploma (or equivalency certificate); or
    (ii) The date the child attains age 18.

(Authority: 38 U.S.C. 3319)

Sec.  21.9630   Suspension or discontinuance of payments.

    VA may suspend or discontinue payment of educational assistance in 
accordance with Sec. Sec.  21.4210 through 21.4216.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690)

Sec.  21.9635   Discontinuance dates.

    The effective date of a reduction or discontinuance of educational 
assistance will be as stated in this section. If more than one type of 
reduction or discontinuance is involved, VA will reduce or discontinue 
educational assistance using the earliest of the applicable dates.
    (a) Death of eligible individual. (1) If the eligible individual 
receives a lump sum payment under Sec.  21.9640(b)(1)(iii), 
(b)(2)(iii), (c)(1)(ii), or (c)(2)(ii) and dies before the end of the 
period covered by the lump sum payment, the discontinuance date of 
educational assistance for the purpose of that lump sum payment will be 
the last date of the period covered by the lump sum payment.
    (2) If the institution of higher learning receives a lump sum 
payment for established charges on behalf of an eligible individual and 
the individual dies before the end of the period covered by the lump 
sum payment, the discontinuance date for the purpose of that lump sum 
payment will be the last date of the period covered by the lump sum 
payment. The institution of higher learning will be required to return 
to VA any portion of the established charges paid by VA that would 
normally be refunded to a similarly circumstanced individual according 
to the regularly established practices of the institution of higher 
learning.
    (3) If the eligible individual receives an advance payment of the 
monthly housing allowance pursuant to Sec.  21.9680(b)(2) and dies 
before the period covered by the advance payment ends, the 
discontinuance date of educational assistance shall be the last date of 
the period covered by the advance payment.
    (4) For all other payments, if the eligible individual dies while 
pursuing a program of education, the discontinuance date of educational 
assistance will be the end of the month during which the individual 
last attended.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(d), 3680(e))


    (b) First instance of withdrawal of course. In the first instance 
of a withdrawal from a course or courses for which the eligible 
individual received educational assistance, VA will consider any 
mitigating circumstances for the withdrawal with respect to a course or 
courses totaling no more than six semester hours or the equivalent. In 
determining whether a withdrawal is the first instance of withdrawal, 
VA will

[[Page 78898]]

not consider a course or courses dropped during an institution of 
higher learning's drop-add period in accordance with Sec.  21.4200(l). 
If mitigating circumstances are applicable, VA will terminate or reduce 
educational assistance effective the end of the month during which the 
withdrawal occurred.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a)(1))


    (c) Withdrawal or unsatisfactory completion of all courses. (1) If 
the eligible individual, for reasons other than being called or ordered 
to active duty service, withdraws from all courses or receives all 
nonpunitive grades and, in either case, there are no mitigating 
circumstances, VA will terminate educational assistance effective the 
first date of the term in which the withdrawal occurs or the first date 
of the term for which nonpunitive grades are assigned.
    (2) If the eligible individual withdraws from all courses with 
mitigating circumstances or withdraws from all courses for which a 
punitive grade is or will be assigned, VA will terminate educational 
assistance for--
    (i) Residence training effective the last date of attendance; and
    (ii) Independent study or distance learning effective on the 
official date of change in status under the practices of the 
institution of higher learning.
    (3) When an eligible individual withdraws from an approved 
correspondence course offered by an institution of higher learning, VA 
will terminate educational assistance effective the date the last 
lesson was serviced.

(Authority: 38 U.S.C. 3323, 3680(a))


    (d) Reduction in the rate of pursuit of a program of education. If 
the eligible individual reduces the rate of pursuit by withdrawing from 
one or more courses in a program of education but continues training in 
one or more courses, VA will apply the provisions of this paragraph.
    (1) If the reduction in the rate of pursuit occurs other than on 
the first date of the term, VA will reduce the eligible individual's 
educational assistance effective the end of the month during which the 
reduction occurred when the circumstances in either paragraph (d)(1)(i) 
or (d)(1)(ii) of this section apply--
    (i) A nonpunitive grade is assigned for the course from which the 
eligible individual withdraws and the withdrawal occurs with mitigating 
circumstances.
    (ii) A punitive grade is assigned for the course from which the 
eligible individual withdraws.
    (2) VA will reduce educational assistance effective the first date 
of the enrollment in which the reduction occurs when--
    (i) The reduction occurs on the first date of the term; or
    (ii) A nonpunitive grade is assigned for the course from which the 
eligible individual withdraws, and--
    (A) The eligible individual does not withdraw because he or she is 
called to active duty service, and
    (B) The withdrawal occurs without mitigating circumstances.
    (3) An eligible individual enrolled in several courses within a 
program of education, who reduces his or her rate of pursuit by 
completing one or more of the courses while continuing training in 
others, may receive an interval payment based on the total number of 
enrolled courses he or she completed if the requirements of Sec.  
21.9680(b)(6) are met. If those requirements are not met, VA will 
reduce the eligible individual's educational assistance effective the 
end of the month during which the individual completed each course (or 
courses).

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    (e) End of course or period of enrollment. If an eligible 
individual's course or period of enrollment ends, the effective date of 
reduction or discontinuance of the individual's award of educational 
assistance will be the ending date of the course or period of 
enrollment as certified by the institution of higher learning.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    (f) Nonpunitive grade. (1) If an eligible individual does not 
officially withdraw from a particular course and the individual 
receives a nonpunitive grade for that course, VA will reduce the 
individual's educational assistance effective the first date of 
enrollment for the term in which the grade applies unless mitigating 
circumstances are found.
    (2) If an eligible individual does not officially withdraw from a 
particular course and the individual receives a nonpunitive grade for 
that course, VA will reduce the individual's educational assistance 
effective the end of the month during which the student last attended 
when mitigating circumstances are found.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680)


    (g) Discontinued by VA. If VA discontinues payment to an eligible 
individual following procedures stated in Sec.  21.4210(d) and (g), the 
discontinuance date of payment of educational assistance will be--
    (1) The date the Director of the Regional Processing Office of 
jurisdiction first suspended payments provided in Sec.  21.4210, if the 
discontinuance was preceded by suspension; or
    (2) The end of the month in which the decision to discontinue, made 
by VA under Sec.  21.9640 or Sec.  21.4210(d) and (g), is effective, if 
the Director of the Regional Processing Office of jurisdiction did not 
suspend payments before the discontinuance.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690)


    (h) Disapproved by State approving agency. If a State approving 
agency disapproves a program of education in which an eligible 
individual is enrolled, the discontinuance date of payment of 
educational assistance will be--
    (1) The date the Director of the Regional Processing Office of 
jurisdiction first suspended payments provided in Sec.  21.4210 if 
disapproval was preceded by such a suspension; or
    (2) The end of the month in which the disapproval is effective or 
VA receives notice of the disapproval, whichever is later, provided the 
Director of the Regional Processing Office of jurisdiction did not 
suspend payments before the disapproval.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3672(a), 3690)


    (i) Disapproval by VA. If VA disapproves a program of education in 
which an eligible individual is enrolled, the discontinuance date of 
educational assistance will be--
    (1) The date the Director of the Regional Processing Office of 
jurisdiction first suspended payments, as provided in Sec.  21.4210, if 
such suspension preceded the disapproval; or
    (2) The end of the month in which the disapproval occurred, 
provided that the Director of the Regional Processing Office of 
jurisdiction did not suspend payments before the disapproval.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3671(b), 3672(a), 3690)


    (j) Unsatisfactory progress. If an eligible individual's progress 
is unsatisfactory, his or her educational assistance will be 
discontinued effective the earlier of the following:
    (1) The end of the month during which the institution of higher 
learning discontinues the eligible individual's enrollment; or
    (2) The end of the month during which the eligible individual's 
progress becomes unsatisfactory according to the institution of higher 
learning's regularly

[[Page 78899]]

established standards of progress, conduct, or attendance.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)


    (k) False or misleading statements. Payments may not be based on 
false or misleading statements, claims, or reports. If educational 
assistance is paid as the result of an individual submitting false or 
misleading statements, claims, or reports, VA will apply the provisions 
of Sec.  21.4006 and 21.4007 in the same manner as they apply to 
veterans under 38 U.S.C. chapter 30.

(Authority: 38 U.S.C 3034(a), 3323(a), 3690)


    (l) Conflicting interests (not waived). If a conflict of interest 
exists between an officer or employee of VA and an institution of 
higher learning, or an officer or employee of a State approving agency 
and an institution of higher learning, as provided in Sec.  21.4005, 
and VA does not grant a waiver, the discontinuance date of educational 
assistance will be 30 days after the date of the letter notifying the 
eligible individual of the conflicting interests.

(Authority: 38 U.S.C.3034(a), 3323(a), 3683)


    (m) Incarceration in prison or other penal institution due to 
conviction of a felony.
    (1) The provisions of this paragraph apply to an eligible 
individual whose educational assistance must be discontinued or who 
becomes restricted to payment of educational assistance at a reduced 
rate under Sec.  21.9675(c) (based on incarceration in a Federal, 
State, or local penal institution due to a felony conviction).
    (2) The reduced rate or discontinuance will be effective the latest 
of the following--
    (i) The first day of the enrollment period for which all or part of 
the eligible individual's tuition and fees were paid by a Federal, 
State, or local program;
    (ii) The first day of the enrollment period in which the eligible 
individual is incarcerated in prison or other penal institution; or
    (iii) The beginning date of the award as determined by Sec.  
21.9625.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3482(g))


    (n) Reduction or termination due to active duty status. (1) The 
discontinuance date for an eligible individual who reduces or 
terminates training as a result of being called or ordered to serve on 
active duty under section 688, 12301(a), 12301(d), 12301(g), 12302, or 
12304 of title 10, or in the case of an individual serving on active 
duty, being ordered to a new duty location or assignment or to perform 
an increased amount of work is--
    (i) For established charges, the last date of the certified 
enrollment period,
    (ii) For the monthly housing allowance, the end of the month during 
which the reduction or withdrawal occurred, and
    (iii) For the ``book stipend'', the last date of the period covered 
by the book stipend payment.
    (2) This reduction does not apply to brief periods of active duty 
for training if the institution of higher learning permits absence for 
active duty for training without considering the individual's pursuit 
of a program of education to be interrupted.

(Authority: 38 U.S.C. 3313(e))


    (o) Exhaustion of entitlement. (1) If an individual enrolled in an 
institution of higher learning that regularly operates on the quarter 
or semester system exhausts his or her entitlement under 38 U.S.C. 
chapter 33, the effective discontinuance date will be the last day of 
the quarter or semester in which the entitlement is exhausted.
    (2) If an individual enrolled in an institution of higher learning 
that does not regularly operate on the quarter or semester system 
exhausts his or her entitlement under 38 U.S.C. chapter 33 after the 
individual has completed more than half of the course, the ending date 
will be the earlier of the following--
    (i) The last day of the course, or
    (ii) 12 weeks from the day the entitlement is exhausted.
    (3) If an individual enrolled in an institution of higher learning 
that does not regularly operate on the quarter or semester system 
exhausts his or her entitlement under 38 U.S.C. chapter 33 before the 
individual has completed more than half of the course, the effective 
ending date will be the date the entitlement was exhausted.

(Authority: 38 U.S.C. 3031(f), 3312, 3321)


    (p) End of period of eligibility. If an eligible individual is 
enrolled in an institution of higher learning on the date of expiration 
of his or her period of eligibility as determined under Sec.  21.9530, 
the effective ending date will be the day preceding the end of the 
period of eligibility.

(Authority: 38 U.S.C. 3321)


    (q) Required verifications not received after certification of 
enrollment. (1) If VA does not receive the required verification of 
attendance in a timely manner for an eligible individual enrolled in a 
course or courses at an institution of higher learning in a program of 
education not leading to a standard college degree, VA will terminate 
payments effective the last date of the last period for which 
verification of the eligible individual's attendance was received. If 
VA later receives the verification, VA will make any adjustment on the 
basis of the facts found.
    (2) If VA does not receive verification of enrollment within 60 
days of the first day of the term, quarter, semester, or course for 
which the advance payment was made, VA will determine the actual facts 
and make an adjustment, if required. If the eligible individual failed 
to enroll, VA will terminate the award of educational assistance 
effective the beginning date of the enrollment period.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680)


    (r) Administrative or payee error. (1) When an administrative error 
or error in judgment by VA, the Department of Defense, or the 
Department of Homeland Security with respect to the Coast Guard when it 
is not operating as a service in the Navy, is the sole cause of an 
erroneous award, the award will be reduced or terminated effective the 
date of last payment.
    (2) When a payee receives an erroneous award of educational 
assistance as the result of providing false information or withholding 
information necessary to determine eligibility to the award, the 
effective date of the reduction or discontinuance will be the effective 
date of the award, or the day before the act, whichever is later. The 
date of the reduction or discontinuance will not be before the last 
date on which the individual was entitled to payment of educational 
assistance.

(Authority: 38 U.S.C. 3323(c), 5112(b), 5113)


    (s) Forfeiture for fraud. If an eligible individual must forfeit 
his or her educational assistance due to fraud, the ending date of 
payment of educational assistance will be the later of--
    (1) The effective date of the award; or
    (2) The day before the date of the fraudulent act.

(Authority: 38 U.S.C. 3323(c), 5112, 6103)


    (t) Forfeiture for treasonable acts or subversive activities. If an 
eligible individual must forfeit his or her educational assistance due 
to treasonable acts or subversive activities, the ending date of 
payment of educational assistance will be the later of--
    (1) The effective date of the award; or
    (2) The day before the date the individual committed the 
treasonable act or subversive activities for which the individual was 
convicted.

(Authority: 38 U.S.C. 3323(c), 6104, 6105)



[[Page 78900]]


    (u) Change in law or VA issue or interpretation. If there is a 
change in the applicable law or VA issue, or in VA's application of the 
law or issue, VA will use the provisions of Sec.  3.114(b) of this 
chapter to determine the ending date of the eligible individual's 
educational assistance.

(Authority: 38 U.S.C. 3323(c), 5112, 5113)


    (v) Reduction following the loss of increase (``kicker'') for 
Selected Reserve service. If an eligible individual is entitled to an 
increase (``kicker'') in the monthly rate of educational assistance due 
to service in the Selected Reserve and loses that entitlement, the 
effective date for the reduction in the monthly rate payable is the 
date that the Secretary of the military department concerned determines 
that the eligible individual is no longer eligible to the increase 
(``kicker'').

(Authority: 10 U.S.C. 16131; 38 U.S.C. 3316(a))


    (w) Election to receive educational assistance allowance under 
another educational assistance program. If an individual is eligible 
under more than one educational assistance program, VA will terminate 
educational assistance under 38 U.S.C. chapter 33 effective the first 
date for which the eligible individual elects to receive educational 
assistance under 10 U.S.C. chapter 1606, or 1607, or under 38 U.S.C. 
chapter 30, 31, 32, or 35, or the Hostage Relief Act of 1980.

(Authority: 38 U.S.C. 3322(a))


    (x) Independent study course loses accreditation. If the eligible 
individual is enrolled in a course offered in whole or in part by 
independent study, and the course loses its accreditation (or the 
institution of higher learning offering the course loses its 
accreditation), the date of reduction or discontinuance will be the 
effective date of the withdrawal of accreditation by the accrediting 
agency.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3676, 3680A(a))


    (y) Dependent exhausts transferred entitlement. The ending date of 
an award of educational assistance to a dependent who exhausts the 
entitlement transferred to him or her is the date he or she exhausts 
the entitlement.

(Authority: 38 U.S.C. 3319)


    (z) Transferor revokes transfer of entitlement. If the transferor 
revokes a transfer of unused entitlement, the date of discontinuance 
for the dependent's entitlement is the effective date of the revocation 
of transfer as determined under Sec.  21.9570.

(Authority: 38 U.S.C. 3319)


    (aa) Transferor fails to complete additional active duty service 
requirement. VA will discontinue each award of educational assistance 
given to a dependent, effective the first date of each such award 
when--
    (1) The transferor fails to complete the additional active duty 
service requirement that afforded him or her the opportunity to 
transfer entitlement of educational assistance; and
    (2) The military department discharges the transferor for a reason 
other than one of the reasons stated in Sec.  21.9570.

(Authority: 38 U.S.C. 3319)


    (bb) Spouse with transferred entitlement and transferor divorce. If 
a spouse with transferred entitlement and the transferor divorce, the 
date of discontinuance for the spouse's entitlement is the later of the 
ending date of the enrollment period or the date of the divorce.

(Authority: 38 U.S.C. 101(31), 103, 3319)


    (cc) Child with transferred entitlement marries. If a child with 
transferred entitlement marries, the date of discontinuance for the 
child's entitlement is the later of the ending date of the enrollment 
period or the date the child marries.

(Authority: 38 U.S.C. 101(4), 3319)


    (dd) Stepchild with transferred entitlement no longer member of 
transferor's household. If a stepchild with transferred entitlement 
ceases to be a member of the transferor's household, the date of 
discontinuance for the stepchild's discontinuance is the later of the 
end of the enrollment period or the date the stepchild was no longer a 
member of the transferor's household. See Sec.  21.9570, Transfer of 
entitlement.

(Authority: 38 U.S.C. 101(4), 3319)


    (ee) Other reasons for discontinuance. If an eligible individual's 
educational assistance must be discontinued for any reason other than 
those stated in paragraphs (a) through (dd) of this section, VA will 
determine the ending date of educational assistance based on the facts 
found.

(Authority: 38 U.S.C. 3323(c), 5112(a), 5113)

Sec.  21.9640  Rates of payment of educational assistance.

    VA will determine the amount of educational assistance payable 
under 38 U.S.C. chapter 33 as provided in this section.
    (a) Percentage of maximum amounts payable. Except as provided in 
paragraph (d), VA will apply the applicable percentage of the maximum 
amounts payable under this section for pursuit of an approved program 
of education, in accordance with the following table--

------------------------------------------------------------------------
                                                              Percentage
 Aggregate length of  creditable active duty service  after   of maximum
                          09/10/01                             amounts
                                                               payable
------------------------------------------------------------------------
At least 36 months \1\.....................................          100
At least 30 continuous days (Must be discharged due to               100
 service-connected disability).............................
At least 30 months, but less than 36 months \1\............           90
At least 24 months, but less than 30 months \1\............       \3\ 80
At least 18 months, but less than 24 months \2\............       \3\ 70
At least 12 months, but less than 18 months \2\............           60
At least 6 months, but less than 12 months \2\.............           50
At least 90 days, but less than 6 months \2\...............           40
------------------------------------------------------------------------
\1\ Includes entry level and skill training.
\2\ Excludes entry level and skill training.
\3\ If the service requirements are met at both the 80 and 70 percentage
  level, the maximum percentage of 70 must be applied to amounts
  payable.


(Authority: 38 U.S.C. 3311, 3313)


    (b) Maximum amounts payable for training at more than half-time. An 
individual, other than one on active duty, who is pursuing a program of 
education at more than half-time (at a rate of pursuit of more than 50 
percent) and who--
    (1) Is enrolled at an institution of higher learning located in the 
United States or at a branch of such institution that is located 
outside the United States, may receive--
    (i) A lump sum amount for established charges paid directly to the 
institution of higher learning for the entire quarter, semester, or 
term, as applicable. The amount payable will be the lowest of--
    (A) The established charges for the program of education;
    (B) The maximum amount of established charges regularly charged 
full-time undergraduate in-State students by the public institution of 
higher learning having the highest rate of regularly-charged 
established charges in the State of the primary institution of higher 
learning in which the individual is enrolled or, if the individual is 
enrolled at a branch located outside the United States, in the State 
where the main campus of the institution of higher learning is located; 
or
    (C) The lesser amount of paragraph (A) or (B) of this section, 
divided by the number of days in the individual's

[[Page 78901]]

quarter, semester, or term, as applicable, to determine the 
individual's daily rate which will then be multiplied by the 
individual's remaining months and days of entitlement to educational 
assistance as provided under Sec.  21.9550;
    (ii) Except for individuals pursuing a program of education offered 
entirely through distance learning, a monthly housing allowance if the 
individual's rate of pursuit is greater than 50 percent (see Sec.  
21.9750 on measurement of rate of pursuit). The monthly housing 
allowance will be equal to the monthly amount of the basic allowance 
for housing payable under 37 U.S.C. 403 for a member of the military 
with dependents in pay grade E-5 using the ZIP code area in which all, 
or a majority, of the primary institution of higher learning in which 
the individual is enrolled is located or, if the individual is only 
pursuing distance learning courses at the primary institution of higher 
learning, the ZIP code area in which all, or a majority of the 
institution of higher learning in which the individual is enrolled in 
one or more resident courses is located, multiplied by the percentage 
payable to the individual based on length of service; and
    (iii) An amount for books, supplies, equipment, and other 
educational costs (referred to as the ``book stipend'') payable as a 
lump sum for each quarter, semester, or term. The amount payable to an 
eligible individual with remaining entitlement is equal to--
    (A) $1,000, multiplied by
    (B) The fraction that is the portion of a complete academic year 
under the program of education that such quarter, semester, or term 
constitutes.
    (2) Is enrolled at an institution of higher learning not located in 
the United States, may receive--
    (i) A lump sum amount for established charges paid directly to the 
institution of higher learning for the entire quarter, semester, or 
term, as applicable. The amount payable will be the lowest of--
    (A) The established charges for the program of education in United 
States dollars as determined by using the conversion rate effective the 
first day of the enrollment period;
    (B) The average amount of established charges regularly charged 
full-time undergraduate in-State students by public institutions of 
higher learning throughout the United States during the preceding 
academic year; or
    (C) The lesser amount of paragraph (A) or (B) of this section, 
divided by the number of days in the individual's quarter, semester, or 
term, as applicable, to determine the individual's daily rate which 
will then be multiplied by the individual's remaining months and days 
of entitlement to educational assistance as provided under Sec.  
21.9550;
    (ii) Except for individuals pursuing a program of education offered 
entirely through distance learning, a monthly housing allowance if the 
individual's rate of pursuit is greater than 50 percent (see Sec.  
21.9750 on measurement of rate of pursuit). The monthly housing 
allowance will be equal to the average monthly amount of the basic 
allowance for housing payable under 37 U.S.C. 403 for a member of the 
military with dependents in pay grade E-5 residing in the continental 
United States; and
    (iii) An amount for books, supplies, equipment, and other 
educational costs (referred to as the ``book stipend'') payable as a 
lump sum for the certified enrollment period. The amount payable to an 
eligible individual with remaining entitlement is equal to--
    (A) $1,000, multiplied by
    (B) The fraction that is the portion of a complete academic year 
under the program of education that such certified enrollment period 
constitutes.
    (c) Maximum amounts payable for training at half-time or less. An 
individual, other than one on active duty, who is pursuing a program of 
education at half-time or less (at a rate of pursuit of 50 percent or 
less) and who--
    (1) Is enrolled at an institution of higher learning located in the 
United States or at a branch of such institution that is located 
outside the United States, may receive--
    (i) A lump sum amount for the established charges paid directly to 
the institution of higher learning for the entire quarter, semester, or 
term, as applicable. The amount payable will be the lowest of--
    (A) The established charges that similarly circumstanced 
nonveterans enrolled in the program of education would be required to 
pay; or
    (B) The maximum amount of established charges regularly charged 
full-time undergraduate in-State students by the public institution of 
higher learning having the highest rate of regularly-charged 
established charges in the State of the primary institution of higher 
learning in which the individual is enrolled or, if the individual is 
enrolled at a branch located outside the United States, in the State 
where the main campus of the institution of higher learning is located; 
or
    (C) The lesser amount of paragraph (A) or (B) of this section , 
divided by the number of days in the individual's quarter, semester, or 
term, as applicable, to determine the individual's daily rate which 
will then be multiplied by the individual's remaining months and days 
of entitlement to educational assistance as provided under Sec.  
21.9550; and
    (ii) An amount for books, supplies, equipment, and other 
educational costs (referred to as the ``book stipend'') payable as a 
lump sum for the certified enrollment period. The amount payable to an 
eligible individual with remaining entitlement is equal to--
    (A) $1,000, multiplied by
    (B) The fraction that is the portion of a complete academic year 
under the program of education that such certified enrollment period 
constitutes, multiplied by--
    (C) The percentage equal to the individual's rate of pursuit as 
determined by dividing the number of course hours the individual is 
pursuing by the number of course hours required for full-time pursuit.
    (2) Is enrolled in an institution of higher learning not located in 
the United States, may receive--
    (i) A lump sum amount for established charges paid directly to the 
institution of higher learning for the entire quarter, semester, or 
term, as applicable. The amount payable will be the lowest of--
    (A) The established charges for the program of education in United 
States dollars as determined by using the conversion rate effective the 
first day of the enrollment period;
    (B) The average amount of established charges regularly charged 
full-time undergraduate in-State students by public institutions of 
higher learning throughout the United States during the preceding 
academic year; or
    (C) The lesser amount of paragraph (A) or (B) of this section, 
divided by the number of days in the individual's quarter, semester, or 
term, as applicable, to determine the individual's daily rate which 
will then be multiplied by the individual's remaining months and days 
of entitlement to educational assistance as provided under Sec.  
21.9550; and
    (ii) An amount for books, supplies, equipment, and other 
educational costs (referred to as the ``book stipend'') payable as a 
lump sum for the certified enrollment period. The amount payable to an 
eligible individual with remaining entitlement is equal to--
    (A) $1,000, multiplied by
    (B) The fraction that is the portion of a complete academic year 
under the program of education that such certified enrollment period 
constitutes, multiplied by
    (C) The percentage equal to the individual's rate of pursuit as 
determined by dividing the number of course hours the individual is 
pursuing

[[Page 78902]]

by the number of course hours required for full-time pursuit.
    (d) Amounts payable for individuals on active duty. Individuals on 
active duty who are pursuing a program of education may receive a lump 
sum amount for established charges paid directly to the institution of 
higher learning for the entire quarter, semester, or term, as 
applicable. The amount payable will be the lowest of--
    (1) The established charges that similarly circumstanced 
nonveterans enrolled in the program of education would be required to 
pay;
    (2) That portion of the established charges not covered by military 
tuition assistance under 10 U.S.C. 2007(a) or (b) for which the 
individual has stated to VA that he or she wishes to receive payment; 
or
    (3) The lesser amount of paragraph (1) or (2) of this section, 
divided by the number of days in the individual's quarter, semester, or 
term, as applicable, to determine the individual's daily rate, 
multiplied by the individual's remaining months and days of entitlement 
to educational assistance as provided under Sec.  21.9550.
    (e) Publication of educational assistance rates. VA will publish 
the maximum amounts payable in the ``Notices'' section of the Federal 
Register and on the GI Bill Web site at http://www.gibill.va.gov by the 
first of August of each calendar year.

(Authority: 38 U.S.C. 3313, 3323(c))

Sec.  21.9645  Refund of basic contribution to chapter 30.

    (a)(1) An individual who makes an irrevocable election to receive 
educational assistance under this chapter by relinquishing eligibility 
under chapter 30 will be entitled to receive a refund of the amount of 
contributions he or she paid towards chapter 30, up to $1,200, if the 
individual, as of the date of the individual's election, meets the 
requirements for entitlement to educational assistance under this 
chapter and meets one of the following requirements as of August 1, 
2009--
    (i) He or she is eligible for basic educational assistance under 38 
U.S.C. chapter 30 and has remaining entitlement under that chapter;
    (ii) He or she is eligible for basic educational assistance under 
38 U.S.C. chapter 30 but has not used any entitlement under that 
chapter; or
    (iii) He or she is a member of the Armed Forces who is eligible to 
receive educational assistance under 38 U.S.C. chapter 30 because the 
individual has met the requirements of Sec.  21.7042(a) or (b) and is 
making contributions as provided in Sec.  21.7042(g).
    (2) [Reserved]
    (b) Amount of refund. The amount of any payment made under this 
section to the individual who made the contributions will be equal to 
the total amount of contributions toward basic educational assistance 
made by the individual as provided in Sec.  21.7042(g), multiplied by 
the fraction of either--
    (1) The number of months of entitlement under 38 U.S.C. chapter 30 
remaining to the individual at the time of the election and the number 
of months, if any, of transferred entitlement under 38 U.S.C. chapter 
30 that the individual revoked; or
    (2) 36 months for the individual under Sec.  21.9645(a)(iii) who is 
still making contributions; divided by
    (3) 36 months.
    (c) Timing of Payment. The amount payable under this section will 
only be paid to the individual who made the contributions as an 
increase to the monthly housing allowance payable under Sec.  
21.9640(b)(1)(ii) or (b)(2)(ii) at the time his or her entitlement 
exhausts.

(Authority: Pub. L. 110-252, Stat. 2377-2378)

Sec.  21.9650  Increase in educational assistance.

    The Secretary of the military department concerned may increase the 
amount of basic educational assistance payable to an individual who has 
a skill or specialty in which there is a critical shortage of 
personnel, for which there is difficulty recruiting, or, in the case of 
critical units, for which there is difficulty retaining personnel, as 
determined by the Secretary of the military department concerned.
    (a) Chapter 33 increase (``kicker'') amount. (1) The amount of the 
increase is set by the Secretary of the military department concerned, 
but the amount of any such increase may not exceed--
    (i) $950.00 per month for full-time training; or
    (ii) A percentage of the full-time training amount under paragraph 
(a)(i) of this section based on the individual's rate of pursuit of 
training.
    (2) The increase (``kicker'') amount payable under paragraph (a) of 
this section will only be paid to the individual as part of the monthly 
housing allowance if the individual is entitled to receive a monthly 
housing allowance under Sec.  21.9650(b)(2) for that term, quarter, or 
semester.

(Authority: 38 U.S.C. 3316(a))


    (b) Chapter 30 increase (``kicker'') amount. (1) An individual 
eligible under 38 U.S.C. chapter 33 by reason of an irrevocable 
election under Sec.  21.9520(c) who, on the date of election, was 
entitled to an increase (``kicker'') of the amount of educational 
assistance under 38 U.S.C. 3015(d) remains entitled to such increase 
under 38 U.S.C. chapter 33.
    (2) The increase (``kicker'') amount is set by the Secretary of the 
military department concerned, but the amount of any such increase may 
not exceed--
    (i) $950.00 per month for full-time training; or
    (ii) A percentage of the full-time training amount under paragraph 
(b)(2)(i) of this section based on the individual's rate of pursuit of 
training.
    (3) The increase (``kicker'') amount payable under paragraph (b) of 
this section will be paid to the individual as a lump sum in an amount 
for the entire quarter, semester, or term, as applicable, based on the 
monthly amount to which the individual was entitled at the time of the 
election of chapter 33.

(Authority: 38 U.S.C. 3015(d); Pub. L. 110-252, Stat. 2378)


    (c) Chapter 1606 increase (``kicker'') amount. (1) An individual 
who is eligible for educational assistance under 38 U.S.C. chapter 33 
by reason of an irrevocable election under Sec.  21.9520(c) and, on the 
date of election, was entitled to an increase (``kicker'') of the 
amount of educational assistance under 10 U.S.C. 16131(i) remains 
entitled to such increase under 38 U.S.C. chapter 33.
    (2) The increase (``kicker'') amount is set by the Secretary of the 
military department concerned, but the amount of any such increase may 
not exceed--
    (i) $350.00 per month for full-time training; or
    (ii) A percentage of the full-time training amount under paragraph 
(c)(2)(i) of this section based on the individual's rate of pursuit of 
training.
    (3) The increase (``kicker'') amount payable under paragraph (c) of 
this section will be paid to the individual as a lump sum in an amount 
for the entire quarter, semester, or term, as applicable, based on the 
monthly amount to which the individual was entitled at the time of the 
election of chapter 33.

(Authority: 10 U.S.C. 16131(i); Pub. L. 110-252, Stat. 2378)

Sec.  21.9655  Rates of supplemental educational assistance.

    In addition to basic educational assistance, an individual who is 
eligible for supplemental educational assistance and entitled to it 
will be paid supplemental educational assistance at the rate described 
in this section unless a lesser rate is required by Sec.  21.9675.
    (a) Individuals eligible for supplemental educational assistance

[[Page 78903]]

under chapter 33. (1) The monthly amount of supplemental educational 
assistance payable to an individual whose initial eligibility for 
educational assistance is acquired under 38 U.S.C. chapter 33 is set by 
the Secretary of the military department concerned, but may not exceed 
$300 per month for full-time training. Individuals pursuing training at 
less than full-time will receive a percentage of the amount set by the 
Secretary of the military department concerned based on the 
individual's rate of pursuit of training.
    (2) The increase payable under paragraph (a) of this section will 
only be paid to the individual as part of the monthly housing allowance 
if the individual is entitled to receive a monthly housing allowance 
under Sec.  21.9650(b)(2) for that term, quarter, or semester.

(Authority: 38 U.S.C. 3316)


    (b) Individuals who were eligible for supplemental educational 
assistance under 38 U.S.C. chapter 30. (1) An individual who is 
eligible for educational assistance under 38 U.S.C. chapter 33 by 
reason of an irrevocable election under Sec.  21.9520(c) and was 
entitled to supplemental educational assistance under subchapter III of 
38 U.S.C. chapter 30 remains entitled to such additional amount under 
chapter 33.
    (2) The amount of the increase is set by the Secretary of the 
military department concerned, but may not exceed $300 per month for 
full-time training. Individuals pursuing training at less than full-
time will receive a percentage of the amount set by the Secretary of 
the military department concerned based on the individual's rate of 
pursuit of training.
    (3) The supplemental increase amount payable under paragraph (b) of 
this section will be paid to the individual as a lump sum in an amount 
for the entire quarter, semester, or term, as applicable, based on the 
monthly amount to which the individual was entitled at the time of the 
election of chapter 33.

(Authority: 38 U.S.C. 3021; Pub. L. 110-252, 122 Stat. 2378)

Sec.  21.9660  Rural relocation benefit.

    An individual eligible for educational assistance under this 
chapter is entitled to receive a one-time payment of $500 if the 
individual--
    (1) Resides in a county (or similar entity utilized by the Bureau 
of the Census) with less than 7 persons per square mile (as determined 
by the most recent decennial Census); and
    (2) Either--
    (i) Physically relocates at least 500 miles in order to pursue a 
program of education for which the individual receives educational 
assistance under this chapter; or
    (ii) Travels by air to physically attend an institution of higher 
learning for pursuit of an approved program of education under this 
chapter if no other land-based method of transportation is available 
due to an absence of roads or other infrastructure; and
    (iii) Has provided documentation required in Sec.  21.9680(c).

(Authority: 38 U.S.C. 3318)

Sec.  21.9665  Reimbursement for licensing or certification tests.

    An eligible individual is entitled to receive reimbursement for 
taking one licensing or certification test. The amount of educational 
assistance VA will pay as reimbursement for an approved licensing or 
certification test taken on or after August 1, 2009, is the lesser of 
the following:
    (a) The fee that the licensing or certification organization 
offering the test charges for taking the test; or
    (b) $2,000.

(Authority: 38 U.S.C. 3315)

Sec.  21.9670  Work-study allowance.

    An eligible individual pursuing a program of education under 38 
U.S.C. chapter 33 at a rate of pursuit of at least 75 percent may 
receive a work-study allowance in accordance with the provisions of 
Sec.  21.4145.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3485)

Sec.  21.9675  Conditions that result in reduced rates or no payment.

    The payment rates as established in Sec. Sec.  21.9640 and 21.9655 
will be reduced in accordance with this section whenever the 
circumstances described in this section arise.
    (a) Withdrawals and nonpunitive grades. Except as provided in this 
paragraph, VA will not pay educational assistance for an eligible 
individual's pursuit of a course from which the eligible individual 
withdraws or receives a nonpunitive grade that is not used in computing 
the requirements for graduation. VA may pay educational assistance for 
a course from which the eligible individual withdraws or receives a 
nonpunitive grade if--
    (1) The individual withdraws because he or she is ordered to active 
duty service; or
    (2) There are mitigating circumstances, and
    (i) The eligible individual submits a description of the mitigating 
circumstances in writing to VA within one year from the date VA 
notifies the eligible individual that a description is needed, or at a 
later date if the eligible individual is able to show good cause why 
the one-year time limit should be extended to the date on which he or 
she submitted the description of the mitigating circumstances; and
    (ii) The eligible individual submits evidence supporting the 
existence of mitigating circumstances within one year of the date VA 
requested the evidence, or at a later date if the eligible individual 
is able to show good cause why the one-year time limit should be 
extended to the date on which he or she submitted the evidence 
supporting the existence of mitigating circumstances.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    (b) No educational assistance for some incarcerated individuals. VA 
will not pay educational assistance to an eligible individual who is 
incarcerated in a Federal, State, or local penal institution due to a 
felony conviction and has incurred no expenses for books, supplies, or 
equipment if--
    (1) The individual is enrolled in a course for which there is no 
tuition and fees;
    (2) The individual is enrolled in a course and the tuition and fees 
for the course are being paid in full by a Federal (other than one 
administered by VA), State, or local program.
    (c) Reduced educational assistance for some incarcerated 
individuals. (1) VA will reduce the amount of educational assistance 
paid to an eligible individual who is incarcerated in a Federal, State, 
or local penal institution due to a felony conviction if--
    (i) The individual is enrolled in a course for which the tuition 
and fees are paid entirely by a Federal (other than one administered by 
VA), State, or local program, but the individual is required to 
purchase books, supplies, or equipment for the course; or
    (ii) The individual is enrolled in a course for which the tuition 
and fees are paid partially by a Federal (other than one administered 
by VA), State, or local program, whether or not the individual is 
required to purchase books, supplies, or equipment for the course.
    (2) The amount of educational assistance payable for pursuit of an 
approved program of education by an eligible individual, as described 
in this paragraph, will be the lesser of the following--
    (i) The amount equal to any portion of tuition and fees charged for 
the course that are not paid by a Federal (other than one administered 
by VA), State, or local program plus an amount

[[Page 78904]]

equal to any charges to the eligible individual for the cost of 
necessary books, supplies, and equipment; or
    (ii) The amount of tuition and fees otherwise payable to the 
individual based on the individual's length of creditable service as 
determined in Sec.  21.9640(a) and the individual's rate of pursuit, 
plus an amount equal to any charges to the eligible individual for the 
cost of necessary books, supplies, and equipment.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3482(g))


    (d) No educational assistance for certain enrollments. VA will not 
pay educational assistance for--
    (1) An enrollment in an audited course (See Sec.  21.4252(i));
    (2) A new enrollment in a course during a period when the approval 
has been suspended by a State approving agency or VA;
    (3) An enrollment in a course by a nonmatriculated student except 
as provided in Sec.  21.4252(l);
    (4) An enrollment in a course at an institution of higher learning 
for which the individual is an official of such institution authorized 
to sign certificates of enrollment;
    (5) A new enrollment in a course which does not meet the veteran-
nonveteran ratio requirement as computed under Sec.  21.4201; and
    (6) An enrollment in a course offered under contract for which VA 
approval is prohibited by Sec.  21.4252(m).

(Authority: 38 U.S.C. 501(a), 3034(a), 3323(a))

Sec.  21.9680  Certifications and release of payments.

    (a) Payee. (1) VA will make payment of the appropriate amount of 
established charges (including top-up payments), as determined under 
Sec.  21.9640, directly to the institution of higher learning as a 
lump-sum payment for the entire quarter, semester, or term, as 
applicable;
    (2) VA will make all other payments to the eligible individual or a 
duly appointed fiduciary. VA will make direct payment to the eligible 
individual even if he or she is a minor.
    (3) Eligible individuals are subject to the verification of 
enrollment provisions of Sec.  21.9730 before VA will make a continuing 
payment to the eligible individual.
    (4) The assignment of educational assistance is prohibited. In 
administering this provision, VA will apply the provisions of Sec.  
21.4146 to 38 U.S.C. chapter 33.

(Authority: 38 U.S.C. 3034(a), 3313(g), 3323(a), 3680, 5301)


    (b) Payments.
    (1) VA will pay educational assistance for an eligible individual's 
enrollment in an approved program (other than one seeking tuition 
assistance top-up, one seeking reimbursement for taking an approved 
licensing or certification test, or one who qualifies for an advance 
payment of the monthly housing allowance) only after the educational 
institution has certified the individual's enrollment as provided in 
Sec.  21.9720 and the eligible individual has complied with any 
requirement for verification of enrollment as set forth in Sec.  
21.9730.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(g), 3689)


(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-
0073.)

    (2) Advance payments. VA will apply the provisions of this section 
in making advance payments of the monthly housing allowance to eligible 
individuals.
    (i) VA will make payments of the monthly housing allowance in 
advance when:
    (A) The eligible individual has specifically requested such a 
payment;
    (B) The individual is enrolled at a rate of pursuit greater than 
half-time;
    (C) The institution of higher learning at which the eligible 
individual is accepted or enrolled has agreed to and can satisfactorily 
carry out the provisions of 38 U.S.C. 3680(d)(4)(B), (d)(4)(C), and 
(d)(5) pertaining to receipt, delivery, and return of checks, and 
certifications of delivery and enrollment;
    (D) The Director of the VA Regional Processing Office of 
jurisdiction has not acted under paragraph (b)(2)(iv) of this section 
to prevent advance payments being made to the eligible individual's 
institution of higher learning;
    (E) There is no evidence in the eligible individual's claim file 
showing that he or she is not eligible for an advance payment;
    (F) The period for which the eligible individual has requested a 
payment either--
    (1) Is preceded by an interval of nonpayment of 30 days or more; or
    (2) Is the beginning of a school year that is preceded by a period 
of nonpayment of 30 days or more; and
    (G) The institution of higher learning or the eligible individual 
has submitted the certification required by Sec.  21.9715.
    (ii) The amount of the advance payment to an eligible individual is 
the amount payable for the monthly housing allowance for the month or 
fraction thereof in which the term or course will begin plus the amount 
of the monthly housing allowance for the following month.
    (iii) VA will mail advance payments to the institution of higher 
learning for delivery to the eligible individual. The institution of 
higher learning will not deliver the advance payment check more than 30 
days in advance of the first date of the enrollment period for which VA 
makes the advance payment.
    (iv) The Director of the VA Regional Processing Office of 
jurisdiction may direct that advance payments not be made to 
individuals attending an institution of higher learning if:
    (A) The institution of higher learning demonstrates an inability to 
comply with the requirements of paragraph (b)(2)(iii) of this section;
    (B) The institution of higher learning fails to provide adequately 
for the safekeeping of the advance payment checks before delivery to 
the eligible individual or return to VA; or
    (C) The Director determines, based on compelling evidence, that the 
institution of higher learning has demonstrated its inability to 
discharge its responsibilities under the advance payment program.

(Authority: 38 U.S.C. 3034, 3323, 3680)


    (3) Lump sum payments. VA will make a lump-sum payment for the 
entire quarter, semester, or term:
    (i) To an institution of higher learning, on behalf of an eligible 
individual, for the appropriate amount of established charges;
    (ii) To an eligible individual for the appropriate amount for 
books, supplies, equipment, and other educational costs; and
    (iii) To an eligible individual entitled to the $500 rural 
relocation benefit.

(Authority: 38 U.S.C. 3034(a), 3313, 3318, 3323(a), 3680(f))


    (4) VA will pay educational assistance for tuition assistance top-
up only after the individual has submitted to VA a copy of the form(s) 
that the military service with jurisdiction requires for tuition 
assistance and that had been presented to the educational institution, 
covering the course or courses for which the eligible individual wants 
tuition assistance top-up. If the form(s) submitted do not contain the 
amount of tuition assistance charged to the individual, VA may delay 
payment until VA obtains that information from the educational 
institution. Examples of these forms include:
    (i) DA Form 2171, Request for Tuition Assistance--Army Continuing 
Education System;
    (ii) AF Form 1227, Authority for Tuition Assistance--Education 
Services Program;

[[Page 78905]]

    (iii) NAVMC 10883, Application for Tuition Assistance, and either 
NAVEDTRA 1560/5, Tuition Assistance Authorization, or NAVMC (page 2), 
Tuition Assistance Authorization;
    (iv) Department of Homeland Security, USCG CG-4147, Application for 
Off-Duty Assistance; and
    (v) Request for Top-Up: eArmyU Program.

(Authority: 38 U.S.C. 5101(a))


(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-
0698)

    (5) VA will pay educational assistance to an eligible individual as 
reimbursement for taking an approved licensing or certification test 
only after the eligible individual has submitted to VA a copy of his or 
her official test results and, if not included in the results, a copy 
of another official form (such as a receipt or registration form) that 
together must include:
    (i) The name of the test;
    (ii) The name and address of the organization or entity issuing the 
license or certificate;
    (iii) The date the eligible individual took the test; and
    (iv) The cost of the test.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3689)


(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-
0695)

    (6) Payment for intervals and temporary school closings. VA may 
authorize payment for an interval or for a temporary school closing 
that occurs within a certified enrollment period. If a school closing 
that is or may be temporary occurs during an interval, VA will apply 
any applicable provisions in paragraphs (6)(i) through (6)(v) of this 
section concerning intervals and in paragraph (6)(vi) of this section 
concerning temporary school closings. For the purposes of this 
paragraph, interval means a period without instruction between 
consecutive school terms, quarters, or semesters or a period without 
instruction between a summer term and a term, quarter, or semester. 
(See definitions of divisions of the school year in Sec.  21.4200(b).)
    (i) Payment for intervals. In determining whether a student will be 
paid for an interval, VA will first review the provisions of paragraph 
(b)(6)(ii) of this section. If none of the provisions apply, VA will 
review the provisions of paragraph (b)(6)(iii), (iv), and (v) of this 
section to determine if payments may be made for the interval. In 
determining the length of a summer term, VA will disregard a fraction 
of a week consisting of 3 days or less, and will consider 4 days or 
more to be a full week.
    (ii) Restrictions on payment for intervals. VA will make no payment 
for an interval if--
    (A) The individual's rate of pursuit is half-time or less on the 
last day of the certified enrollment period preceding the interval;
    (B) The individual is on active duty;
    (C) The individual requests, prior to authorization of an award or 
prior to negotiating the check, that no benefits be paid for the 
interval period;
    (D) The individual's entitlement applicable to such payment will be 
exhausted by receipt of such payment, and it is to the advantage of the 
individual not to receive payment;
    (E) The interval occurs between school years at a school that is 
not organized on a term, quarter, or semester basis; or
    (F) The individual withdraws from all courses in the term, quarter, 
semester, or summer session preceding the interval, or discontinues 
training before the scheduled start of an interval in an institution of 
higher learning not organized on a term, quarter, or semester basis.
    (iii) Payment for intervals between periods of enrollment at 
different schools. If the individual transfers from one approved school 
for the purpose of enrolling in and pursuing a similar course at the 
second school, VA may make payments for an interval that does not 
exceed 30 days. If the student does not enroll in a similar course at 
the second school, VA may not make payments for the interval.
    (iv) Payment for intervals that occur at the same school. (A) If 
the individual remains enrolled at the same school, VA may make payment 
for an interval which does not exceed 8 weeks and which occurs between:
    (1) Semesters or quarters,
    (2) A semester or quarter and a term that is at least as long as 
the interval,
    (3) A semester or quarter and a summer term that is at least as 
long as the interval,
    (4) Consecutive terms (other than semesters or quarters) provided 
that both terms are at least as long as the interval, or
    (5) A term and summer term provided that both the term and the 
summer term are at least as long as the interval.
    (B) If the individual remains enrolled at the same school, VA may 
make payment for an interval that does not exceed 30 days and that 
occurs between summer sessions within a summer term.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680)


    (v) Payment for intervals that occur between overlapping 
enrollments. (A) If a student is enrolled in overlapping enrollment 
periods whether before or after an interval (either at the same or 
different schools), VA will determine whether the student is entitled 
to payment for the interval between the overlapping enrollment periods, 
and which dates the interval and enrollment periods will be considered 
to begin and end, as follows:
    (1) By treating the ending date of each enrollment period as though 
it were the individual's last date of training before the interval,
    (2) By treating the beginning date of each enrollment period as 
though it were the individual's first date of training after the 
interval,
    (3) By examining the interval payment that would be made to the 
individual on the basis of the various combinations of beginning and 
ending dates, and
    (4) By choosing the ending date and beginning date that result in 
the highest payment rate as the start and finish of the interval for VA 
measurement purposes.
    (B) VA will not reduce the interval rate of payment as a result of 
training the individual may take during the interval, but VA will 
increase the interval rate of payment if warranted by such training.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(a))


    (vi) Payment for temporary school closings. VA may authorize 
payment for temporary school closings that are due to emergencies 
(including strikes) or established policy based upon an Executive Order 
of the President. If a school closing that is or may be temporary 
occurs in whole or in part during an interval, VA will first review the 
provisions of paragraph (b)(6)(ii) through (v) of this section to 
determine if payment may be continued during the interval.
    (A) If payment would not be inconsistent with the provisions of 
paragraph (b)(6)(ii) through (v) of this section, a determination to 
authorize payment for a period of a temporary school closing, or to not 
authorize payment if it appears that either the school closing will not 
be temporary or payment would not otherwise be in accord with this 
section, or both, will be made by:
    (1) The Director of the VA Regional Processing Office of 
jurisdiction if:
    (i) The reason for the school closing does not result in the 
closing of a school or schools in the jurisdiction of the Director of 
another VA Regional Processing Office, and
    (ii) If the reason for the closing is a strike, and the strike 
lasts, or is anticipated to last, 30 days or less.

[[Page 78906]]

    (2) The Director of Education Service if:
    (i) The reason for the school closing results in the closing of 
schools in the jurisdiction of more than one Director of a VA Regional 
Processing Office, or
    (ii) The reason for the closing is a strike, and the strike lasts, 
or is anticipated to last, more than 30 days.
    (B) A school that disagrees with a decision made under paragraph 
(b)(6)(vi) of this section may request an administrative review. The 
review request must be submitted in writing and received by the 
Director of the VA Regional Processing Office of jurisdiction within 
one year of the date of VA's letter notifying the school of the 
decision. A review of the decision will include the evidence of record 
and any other pertinent evidence the school may wish to submit. The 
affirmation or reversal of the initial decision based on an 
administrative review is final. The review will be conducted by the--
    (1) Director, Education Service, if the Director of the VA Regional 
Processing Office of jurisdiction made the initial decision to continue 
or discontinue payments; or
    (2) Under Secretary for Benefits, if the Director, Education 
Service, made the initial decision to continue or discontinue payments.

(Authority: 38 U.S.C. 512, 3034(a), 3323(a), 3680(a))


    (c) Rural relocation benefit.
    VA will make the $500 rural relocation benefit payment after--
    (1) The educational institution has certified the individual's 
enrollment as provided in Sec.  21.9680;
    (2) The individual has provided--
    (i) Request for benefit. An individual must submit a request for 
the rural relocation benefit in writing;
    (ii) Proof of residence. (A) An individual must provide proof of 
his or her place of residence by submitting any of the following 
documents bearing his or her name:
    (1) DD Form 214, Certification of Release or Discharge from Active 
Duty; or
    (2) The most recent Federal income tax return; or
    (3) The most recent State income tax return; or
    (4) Rental/lease agreement; or
    (5) Mortgage document; or
    (6) Current real property assessment.
    (B) An individual using entitlement granted under Sec.  21.9570 
who, because he or she resides with the transferor or, in the case of a 
child, a parent, cannot provide any of the documents in paragraph 
(c)(2)(i) of this section, may submit any document in paragraph 
(c)(2)(i)(A)(2) through (6) of this section bearing the name of the 
transferor or, in the case of a child, a parent as proof of residence; 
and
    (iii) Proof of relocation. An individual traveling by air must 
provide an airline receipt for travel with a departure and destination 
airport within reasonable distance from the home of residence and the 
institution of higher learning, respectively; and
    (3) VA has determined that the individual resided in a county (or 
similar entity utilized by the Bureau of the Census) with less than 
seven persons per square mile based on the most recent decennial census 
prior to relocation, and either:
    (i) If traveling by land, physically relocated at least 500 miles, 
confirmed by means of a commonly available internet search engine for 
mapping upon entering the individual's resident address provided in 
paragraph (c)(2) as the beginning point and the address of the 
institution of higher learning as the ending point; or
    (ii) If traveling by air, was unable to travel to the institution 
of higher learning by land due to the absence of road or other 
infrastructure.

(Authority: 38 U.S.C. 3318)


    (d) Apportionments prohibited. VA will not apportion educational 
assistance.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680)


    (e) Accrued benefits. Educational assistance remaining due and 
unpaid on the date of the individual's death is payable under the 
provisions of Sec.  3.1000 of this chapter.

(Authority: 38 U.S.C. 5121)

Sec.  21.9685  Tutorial assistance.

    (a) An individual who is eligible to receive benefits under 38 
U.S.C. chapter 33 may receive additional monetary assistance for 
tutorial services. VA will pay the individual this assistance if the 
tutorial assistance is necessary for the eligible individual to 
complete his or her program of education successfully, and the 
individual--
    (1) Is enrolled in and pursuing a postsecondary program of 
education at a rate of pursuit of at least 50 percent at an institution 
of higher learning; and
    (2) The professor or other person teaching, leading, or giving the 
course certifies that--
    (i) Tutorial assistance is essential to correct a deficiency of the 
individual in such course; and
    (ii) The course is required as part of, or is prerequisite or 
indispensable to the satisfactory pursuit of, an approved program of 
education.
    (b) Limits on tutorial assistance. (1) VA will authorize the cost 
of tutorial assistance in an amount not to exceed $100 per month.
    (2) The total amount of all tutorial assistance provided under this 
section will not exceed $1,200.

(Authority: 38 U.S.C. 3034(a), 3314, 3323(a), 3492)


(The Office of Management and Budget has approved the information 
collection provisions in this section under control numbers 2900-
0171)


Sec.  21.9690  Nonduplication of educational assistance.

    (a) Except for receipt of a Montgomery GI Bill--Active Duty kicker 
provided under 38 U.S.C. 3015(d) or a Montgomery GI Bill--Selected 
Reserve kicker provided under 10 U.S.C. 16131(i), an eligible 
individual is barred from receiving educational assistance under 38 
U.S.C. chapter 33 concurrently with educational assistance provided 
under--
    (1) 10 U.S.C. 1606 (Montgomery GI Bill--Selected Reserve);
    (2) 10 U.S.C. 1607 (Reserve Educational Assistance Program);
    (3) 10 U.S.C. 107 (Section 901, Educational Assistance Test 
Program);
    (4) 38 U.S.C. 30 (Montgomery GI Bill--Active Duty);
    (5) 38 U.S.C. 31 (Vocational Rehabilitation and Employment 
Program);
    (6) 38 U.S.C. 32 (Post-Vietnam Era Veterans' Educational 
Assistance);
    (7) 38 U.S.C. 35 (Survivors' and Dependents' Educational 
Assistance); or
    (8) Hostage Relief Act of 1980.

(Authority: 38 U.S.C. 3034(a), 3322, 3323(a), 3681; section 901, 
Pub. L. 96-342)


    (b) Election of benefits. An individual who is eligible for 
educational assistance under more than one program listed in paragraph 
(a) of this section must elect in writing which benefit he or she 
wishes to receive. The eligible individual may make a new election at 
any time, but may not elect more than once in a calendar month.

(Authority: 38 U.S.C. 3034(a), 3322, 3323(a), 3681)


    (c) Nonduplication--Federal program. Payment of educational 
assistance is prohibited to an otherwise eligible reservist--
    (1) For a unit course or courses that are being paid for entirely 
or partly by the Armed Forces during any period in which he or she is 
on active duty service; or
    (2) For a unit course or courses that are being paid for entirely 
or partly by the United States under the Government Employees' Training 
Act.

[[Page 78907]]


(Authority: 38 U.S.C. 3034(a), 3323(a), 3681)

Sec.  21.9695  Overpayments.

    (a) Prevention of overpayments. In administering educational 
assistance payable under 38 U.S.C. chapter 33, VA will apply the 
provisions of Sec. Sec.  21.4008 and 21.4009 to eligible individuals 
and, when appropriate, to institutions of higher learning.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690(b))


    (b) Liability for overpayments. (1) An overpayment of educational 
assistance paid to an eligible individual, or paid to the institution 
of higher learning on behalf of the eligible individual, constitutes a 
liability of that individual unless--
    (i) The overpayment was waived as provided in Sec. Sec.  1.957 and 
1.962 of this chapter, or
    (ii) The overpayment results from an administrative error or an 
error in judgment. See Sec.  21.9635(r).
    (2) The amount of the overpayment of educational assistance paid to 
the eligible individual, or paid to the institution of higher learning 
on behalf of the eligible individual, constitutes a liability of the 
institution of higher learning if VA determines that the overpayment is 
the result of willful or negligent--
    (i) False certification by the institution of higher learning; or
    (ii) Failure to certify excessive absences from a course, 
discontinuance of a course, or interruption of a course by the eligible 
individual.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3685)


    (ii) In determining whether an overpayment should be recovered from 
an institution of higher learning, VA will apply the provisions of 
Sec.  21.4009 (except paragraph (a)(1)) to overpayments of educational 
assistance under 38 U.S.C. chapter 33.
    (3) VA will determine the amount of an overpayment as follows--
    (i) For an individual who does not complete all courses in the 
certified period of enrollment for which he or she received payment, 
and who does not substantiate mitigating circumstances for not 
completing such enrollment, VA will establish an overpayment equal to 
the amount of all educational assistance paid for that certified period 
of enrollment.
    (ii) For an individual who does not complete all courses in the 
certified period of enrollment, but who substantiates mitigating 
circumstances for not completing such courses, VA will prorate the 
amount of educational assistance to which he or she is entitled.
    (A) VA will determine the prorated amount of the established 
charges by dividing the amount the individual was paid by the number of 
days in the certified enrollment period, and multiplying the result by 
the number of days from the beginning date of the enrollment period 
through the last date of attendance. The result of this calculation 
will equal the amount the individual is due. The difference between the 
amount of educational assistance paid and the amount of educational 
assistance the individual is due will be established as an overpayment.
    (B) VA will determine the prorated amount of the monthly housing 
allowance by determining the amount the individual was entitled to 
while enrolled and subtracting that amount from the total amount paid. 
The difference between the amount of the monthly housing allowance paid 
and the amount of the monthly housing allowance the individual is due 
will be established as an overpayment.
    (C) Individuals who have substantiated mitigating circumstances 
will not be charged an overpayment for the lump sum payment for books, 
supplies, equipment, and other educational costs (``book stipend'').

(Authority: 38 U.S.C. 3034(a), 3323, 3685, 5302)

Sec.  21.9700  Yellow Ribbon Program.

    (a) Establishment. Pursuant to 38 U.S.C. 3317, there is established 
the ``Yellow Ribbon G.I. Education Enhancement Program'', known as the 
``Yellow Ribbon Program,'' that permits an institution of higher 
learning (IHL), at the IHL's option, to enter into an agreement with VA 
to allow the two parties to provide matching funds to cover a portion 
of the outstanding amount of established charges not covered under any 
other provision of 38 U.S.C. chapter 33.
    (b) Eligible individuals. This program is only available to 
individuals entitled to the 100 percent educational assistance rate 
(based on service requirements) as shown in the chart in Sec.  
21.9640(a) or to their designated dependents using entitlement 
transferred under Sec.  21.9570, who are pursuing training at an IHL 
located in the United States or at a branch of such IHL that is located 
outside the United States.
    (c) Agreements. VA will enter into an agreement with an IHL located 
in the United States seeking to participate in the Yellow Ribbon 
Program based on a general agreement format developed by VA in which 
the IHL must agree to the following--
    (1) Provide contributions for the entire academic year specified in 
the agreement to eligible individuals who apply for such program at 
that institution (in a manner prescribed by the institution) on a 
first-come-first-served basis, regardless of the rate at which the 
individual is pursuing training (i.e., full-time versus less than full-
time), in any given academic year;
    (2) Make contributions toward the program on behalf of the 
individual in the form of a waiver;
    (3) State the maximum number of individuals for whom contributions 
will be made in any given academic year; and
    (4) Waive the same percentage of unmet established charges for all 
eligible individuals in any given academic year.
    (d) Matching Contributions. VA will match each dollar waived by the 
school; however, the combined amount of contributions under the Yellow 
Ribbon Program may not exceed the remaining amount of established 
charges not covered under any other provision of 38 U.S.C. chapter 33.
    (e) Outreach. The most current list of colleges and universities 
participating in the Yellow Ribbon Program will be available at VA's GI 
Bill Web site at http://www.gibill.va.gov. The list will include 
specific information on each school's agreement with VA.

(Authority: 38 U.S.C. 3317)

Pursuit of Courses


Sec.  21.9710  Pursuit.

    Except for an eligible individual seeking tuition assistance top-up 
or reimbursement for taking an approved licensing or certification 
test, an individual's educational assistance depends upon his or her 
pursuit of a program of education. Verification of this pursuit is 
accomplished by various certifications.

(Authority: 38 U.S.C. 3323(c))

Sec.  21.9715  Advance payment certification.

    All certifications required by this section shall be in a form 
specified by the Secretary and shall contain such information as 
specified by the Secretary. An advance payment under this chapter is 
only permissible to an individual whose rate of pursuit is greater than 
half-time, and who is entitled to the monthly housing allowance as 
provided in Sec.  21.9640(b)(1)(ii) or (b)(2)(ii).
    (a) Certification needed before an advance payment can be made. In 
order for an individual to receive an advance payment of the monthly 
housing allowance, an application or other

[[Page 78908]]

document must be signed by the individual or the enrollment 
certification must be signed by an authorized official of the 
institution of higher learning.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(d))


    (b) Advance payments. All verifications required by this paragraph 
shall be in a form specified by the Secretary and shall contain such 
information as specified by the Secretary.
    (1) For each eligible individual receiving an advance payment, an 
institution of higher learning must--
    (i) Verify enrollment for the individual; and
    (ii) Verify the delivery of the advance payment check to the 
individual.
    (2) Once the institution of higher learning has initially verified 
the enrollment of the individual, the individual, not the institution 
of higher learning, must make subsequent verifications in order to 
release further payment for that enrollment as provided in Sec.  
21.9730.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680(d))

Sec.  21.9720  Certification of enrollment.

    Except as stated in Sec.  21.9680, an institution of higher 
learning must certify an eligible individual's enrollment before he or 
she may receive educational assistance.
    (a) Institutions of higher learning must certify most enrollments. 
VA does not, as a condition of payment of tuition assistance top-up or 
advance payment, require institutions of higher learning to certify the 
enrollments of eligible individuals who either are seeking tuition 
assistance top-up or, in the cases described in Sec.  21.9715, are 
seeking an advance payment. VA does not require organizations or 
entities offering a licensing or certification test to certify that the 
eligible individual took the test. In all other cases, the institution 
of higher learning must certify the eligible individual's enrollment 
before he or she may receive educational assistance. This certification 
must be in a form specified by the Secretary and contain such 
information as specified by the Secretary.

(Authority: 38 U.S.C. 3014(b), 3031, 3034(a), 3323(a), 3482(g), 
3680, 3687, 3689, 5101(a))


    (b) Length of the enrollment period covered by the enrollment 
certification. (1) Institutions of higher learning organized on a term, 
quarter, or semester basis generally will report enrollment for the 
term, quarter, semester, ordinary school year, or ordinary school year 
plus summer term. If the certification covers two or more terms, the 
institution of higher learning will report each term, quarter, or 
semester separately.
    (2) Institutions of higher learning organized on a year-round basis 
will report enrollment for the length of the course. The certification 
will include a report of the dates during which the institution of 
higher learning closes for any intervals designated in its approval 
data as breaks between school years.
    (3) When an eligible individual enrolls in a distance learning 
program leading to a standard college degree, the institution of higher 
learning's certification will include--
    (i) The enrollment date; and
    (ii) The ending date for the period being certified. If the 
institution of higher learning has no prescribed maximum time for 
completion, the certification must include an ending date based on the 
educational institution's estimate for completion.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3684)


(Approved by the Office of Management and Budget under control 
number 2900-0073)


Sec.  21.9725  Progress and conduct.

    (a) Satisfactory pursuit of program. In order to receive payments 
of educational assistance under 38 U.S.C. chapter 33 for pursuit of a 
program of education, an individual must maintain satisfactory 
progress. VA will discontinue payments of educational assistance if the 
individual does not maintain satisfactory progress. Progress is 
unsatisfactory if the individual does not satisfactorily progress 
according to the regularly prescribed standards of the institution of 
higher education he or she is attending.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)


    (b) Satisfactory conduct. In order to receive educational 
assistance for pursuit of a program of education, an individual must 
maintain satisfactory conduct according to the regularly prescribed 
standards and practices of the institution of higher learning in which 
he or she is enrolled. If the individual will no longer be retained as 
a student or will not be readmitted as a student by the institution of 
higher learning in which he or she is enrolled, VA will discontinue 
educational assistance, unless further development establishes that the 
institution of higher learning's action is wrongfully retaliatory in 
nature.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)


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

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)


    (d) Reentrance after discontinuance. (1) An eligible individual may 
be reentered following discontinuance because of unsatisfactory 
attendance, conduct, or progress when either:
    (i) The individual resumes enrollment at the same institution of 
higher learning in the same program of education and the institution of 
higher learning has both approved the individual's reenrollment and 
certified it to VA; or
    (ii) VA determines that--
    (A) The cause of the unsatisfactory attendance, conduct or progress 
has been removed, and
    (B) The program that the individual now proposes to pursue is 
suitable to his or her aptitudes, interests, and abilities.
    (2) Reentrance may be for the same program, a revised program, or 
an entirely different program depending on the cause of the 
discontinuance and the removal of that cause.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3474)

Sec.  21.9730  Pursuit and verifications.

    Except as provided in this section under paragraph (a), an 
individual receiving a monthly housing allowance must submit 
verification to VA each month of his or her enrollment during the 
period for which the individual is to be paid. This verification shall 
be in a form prescribed by the Secretary.
    (a) Exceptions to the monthly verification requirement. An 
individual does not have to submit a monthly verification as described 
in the introductory text of this section when the individual--
    (1) Is enrolled in a correspondence course;
    (2) Is not eligible for the monthly housing allowance for the 
enrollment period; or
    (3) Has received an advance payment for the training completed 
during a month.
    (b) Items to be reported on all monthly verifications. (1) The 
monthly verification for all eligible individuals will include a report 
on the following items when applicable:
    (i) Continued enrollment in and actual pursuit of the course;
    (ii) The individual's unsatisfactory conduct, progress, or 
attendance;

[[Page 78909]]

    (iii) The date of interruption or termination of training;
    (iv) Changes in the number of credit hours or in the number of 
clock hours of attendance other than those described in Sec.  
21.9735(a);
    (v) Nonpunitive grades; and
    (vi) Any other changes or modifications in the course as certified 
at enrollment.
    (2) The verification of enrollment must--
    (i) Contain the information required for release of payment;
    (ii) If required or permitted by the Secretary to be submitted on 
paper, be signed by the eligible individual on or after the final date 
of the reporting period, or if permitted by the Secretary to be 
submitted by telephone or through VA's Web site in a manner designated 
by the Secretary, be submitted in the form and manner prescribed by the 
Secretary on or after the final date of the reporting period; and
    (iii) If submitted on paper, clearly show the date on which it was 
signed.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3684)


(The Office of Management and Budget has approved the information 
collection requirements in this section under control numbers 2900-
0465.)


Sec.  21.9735  Other required reports.

    VA will apply the provisions of Sec.  21.7156 to individuals and 
institutions of higher learning under 38 U.S.C. chapter 33 as those 
provisions are applied to veterans and educational institutions under 
38 U.S.C. chapter 30.

(Authority: 38 U.S.C. 3034(a), 3323(a))

Sec.  21.9740  False, late, or missing reports.

    (a) Eligible individual. Payments may not be based on false or 
misleading statements, claims or reports. VA will apply the provisions 
of Sec. Sec.  21.4006 and 21.4007 to any individual who submits false 
or misleading claims, statements, or reports in connection with 
benefits payable under 38 U.S.C. chapter 33 in the same manner as they 
are applied to people who make similar false or misleading claims for 
benefits payable under 38 U.S.C. chapter 36.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3680, 3690, 6103)


    (b) Institution of higher learning. (1) VA may hold an institution 
of higher learning liable for overpayments that result from the 
institution of higher learning's willful or negligent failure to report 
excessive absences from a course, discontinuance of a course, or 
interruption of a course by an individual or from willful or negligent 
false certification by the institution of higher learning. See Sec.  
21.9695(b).
    (2) If an institution of higher learning willfully and knowingly 
submits a false report or certification, VA may disapprove that 
institution of higher learning's courses for further enrollments and 
may discontinue educational assistance to eligible individuals already 
enrolled. In doing so, VA will apply Sec. Sec.  21.4210 through 
21.4216.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3690)

Sec.  21.9745  Reporting fee.

    In determining the amount of the reporting fee payable to 
institutions of higher learning for furnishing required reports, VA 
will apply the provisions of Sec.  21.4206 in the same manner as they 
are applied in the administration of 38 U.S.C. chapter 36.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3684)

Course Assessment


Sec.  21.9750  Course measurement.

    VA will calculate an individual's rate of pursuit of an approved 
program of education during the individual's period of enrollment as 
follows.
    (a) Measurement of courses leading to an undergraduate college 
degree. (1) If the courses are measured in credit hours, then the 
number of credit hours the individual is taking in a term, quarter, or 
semester will be divided by the minimum number of credit hours 
considered to be full-time pursuit in a term, quarter, or semester at 
the institution of higher learning as provided in paragraph (a)(2) of 
this section. The resulting percentage will be the individual's rate of 
pursuit. For the purpose of this chapter, VA will consider any rate of 
pursuit higher than 50 percent to be more than half-time training.
    (2) Fourteen credit hours are full-time unless the institution of 
higher learning certifies that all undergraduate students enrolled for 
13 credit hours, or for 12 credit hours, are charged full-time tuition 
or are considered full-time for other administrative purposes.
    (b) Measurement of courses not leading to a standard college 
degree. Courses not leading to a standard college degree may be 
measured on either a clock-hour basis, or a credit-hour basis, or a 
combination of both. VA must determine the proper basis for measurement 
by considering whether the courses are accredited, whether the course 
could be credited toward a standard college degree, and whether the 
course is offered on a standard quarter or semester-hour basis. If 
credit-hour measurement is appropriate, VA should determine the 
individual's rate of pursuit in the same manner as a course leading to 
a standard undergraduate degree as described in paragraph (a) of this 
section. If it is not appropriate to measure an individual's enrollment 
on a credit-hour basis, VA will measure the enrollment on a clock-hour 
basis as described in paragraph (b)(1) of this section. If the 
individual's enrollment includes a combination of credit-hour and 
clock-hour courses at the same institution of higher learning, the 
institution of higher learning should indicate the basis for full-time 
training. VA will use the rate of pursuit more favorable to the 
individual after measuring all of the individual's courses by applying 
the formulas in Sec.  21.9755 to convert clock-hours to credit-hours 
and credit-hours to clock-hours, and comparing the results.
    (1) Clock-hour measurement. If VA concludes that the courses in 
which an eligible individual is enrolled do not qualify for credit-hour 
measurement, VA will measure those courses as follows:
    (i) If shop practice is an integral part of the course at the 
institution of higher learning, full-time training will be 22 clock 
hours (or more) of attendance per week, with not more than 2\1/2\ hours 
rest period allowance; or
    (ii) If the majority of the course consists of theory and class 
instruction, full-time training is 18 clock hours (or more) of net 
instruction per week.
    (2) To determine the rate of pursuit, divide the number of clock 
hours per week the individual will be in attendance by the number of 
clock hours per week for full-time pursuit. The resulting percentage 
will be the individual's rate of pursuit. For the purpose of this 
chapter, VA will consider any rate of pursuit higher than 50 percent to 
be more than half-time training.
    (c) In administering benefits payable for approved programs under 
38 U.S.C. chapter 33, VA will also apply the following sections. 
References in these sections to Sec.  21.4270 should be deemed to refer 
to Sec.  21.9750:
    (1) Section 21.4272 (except paragraph (d))--Collegiate course 
measurement;
    (2) Section 21.4273 (except those portions of paragraphs (a)(2) and 
(b) specifying training times should be deemed to specify a rate of 
pursuit)--Collegiate graduate;
    (3) Section 21.4274--Law courses; and
    (4) Section 21.4275--Practical training courses; measurement.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3688)


    (d) High school courses. If an individual using transferred 
entitlement is eligible for pursuit of the

[[Page 78910]]

requirements of a secondary school diploma or equivalency certificate, 
VA will determine the rate of pursuit as follows:
    (1) If an individual is pursuing high school courses at a rate that 
would result in an accredited high school diploma in four ordinary 
school years, VA considers him or her to be enrolled full-time; or
    (2) If an individual is pursuing a secondary school diploma or 
equivalency certificate other than as in paragraph (d)(1) of this 
section, VA will consider full-time enrollment to be 18 clock hours of 
net instruction per week, four units per year, or the equivalent. (For 
the purpose of this paragraph, a unit is not less than one hundred and 
twenty 60-minute hours or the equivalent of study in any subject in one 
academic year.) VA will consider an individual's enrollment in more 
than 9 clock hours per week, or more than two units per year or the 
equivalent, to be equal a rate of pursuit of more than 50 percent for 
the purpose of this chapter.

(Authority: 38 U.S.C. 3319(h))

Sec.  21.9755  Measurement of concurrent enrollments.

    (a) Conversion of units of measurement required. Where an eligible 
individual enrolls concurrently in courses offered by two schools and 
the standards for the measurement of the courses pursued concurrently 
in the two schools are different, VA will measure the individual's 
enrollment by converting the units of measurement for courses in the 
second school to their equivalent in units of measurement required for 
the courses in the program of education that the eligible individual is 
pursuing at the primary institution. This conversion will be 
accomplished as follows:
    (1) If VA measures the courses at the primary institution on a 
credit-hour basis (including a course which does not lead to a standard 
college degree, which is being measured on a credit-hour basis), and VA 
measures the courses at the second school on a clock-hour basis, the 
clock hours will be converted to credit hours.
    (2) If VA measures the courses pursued at the primary institution 
on a clock-hour basis, and VA measures the courses pursued at the 
second school on a credit-hour basis, VA will convert the credit hours 
to clock hours to determine the eligible individual's rate of pursuit.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3688)


    (3) If VA measures the courses pursued at the primary institution 
on a clock-hour basis, and
    (i) VA measures the courses pursued at the second school on a mixed 
basis, the courses pursued at the second school that VA can measure on 
credit-hour basis for at least one program at the second school will be 
converted to clock hours and the resulting clock hours added to 
determine the eligible individual's rate of pursuit; or
    (ii) VA measures the courses pursued at the second school on a 
credit-hour basis, VA will convert the credit hours to clock hours to 
determine the eligible individual's rate of pursuit.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3688)


    (b) Conversion of clock hours to credit hours. If the provisions of 
paragraph (a) of this section require VA to convert clock hours to 
credit hours, it will do so by--
    (1) Dividing the number of credit hours which VA considers to be 
full-time at the institution of higher learning whose courses are 
measured on a credit-hour basis by the number of clock hours which are 
full-time at the institution of higher learning whose courses are 
measured on a clock-hour basis; and
    (2) Multiplying each clock hour of attendance by the decimal 
determined in paragraph (b)(1) of this section. VA will drop all 
fractional hours.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3688)


    (c) Conversion of credit hours to clock hours. If the provisions of 
paragraph (a) of this section require VA to convert credit hours to 
clock hours, it will do so by--
    (1) Dividing the number of clock hours which VA considers to be 
full-time at the institution of higher learning whose courses are 
measured on a clock-hour basis by the number of credit hours which are 
full-time at the institution of higher learning whose courses are 
measured on a credit-hour basis; and
    (2) Multiplying each credit hour by the number determined in 
paragraph (c)(1) of this section. VA will drop all fractional hours.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3688)


    (d) Both courses measured on a credit-hour basis or both courses 
measured on a clock-hour basis. If VA measures the courses pursued at 
both institutions on a credit-hour basis or on a clock-hour basis, VA 
will measure the veteran's enrollment by adding together the units of 
measurement for the courses at the second school and the units of 
measurement for the courses at the primary institution. The standard 
for full-time will be the full-time standard for the courses at the 
primary institution.

(Authority: 38 U.S.C. 3034(a), 3323(a), 3688)

Approval of Courses


Sec.  21.9765  Course approval.

    VA may provide educational assistance for pursuit of a course or 
courses at an institution of higher learning that is approved under 38 
U.S.C. chapter 30 in accordance with Sec. Sec.  21.7220 and 21.7222.

(Authority: 38 U.S.C. 3034(a), 3313(b), 3323(a))

Administrative


Sec.  21.9770  Administrative.

    In administering chapter 33, VA will apply the sections noted in 
paragraphs (a) through (f) of this section. For the purpose of 
application, the term ``veteran'' as used in these sections is deemed 
to mean ``an eligible individual under 38 U.S.C. chapter 33,'' and the 
term ``38 U.S.C chapter 30'' as used in these sections is deemed to 
mean ``38 U.S.C. chapter 33''.
    (a) Section 21.7301--Delegations of authority;
    (b) Section 21.7302--Finality of decisions;
    (c) Section 21.7303--Revision of decisions;
    (d) Section 21.7305--Conflicting interests;
    (e) Section 21.7307--Examination of records; and
    (f) Section 21.7310--Civil rights.

(Authority: 38 U.S.C. 511, 512(a), 3034(a), 3323(a), 3690, 3696)


[FR Doc. E8-29723 Filed 12-22-08; 8:45 am]
BILLING CODE 8320-01-P