§ 21.4134 - Suspension and discontinuance.

(a) Suspension and discontinuance despite course approval. Even though a State approving agency has approved a course offered by a school, the Director of the Department of Veterans Affairs facility of jurisdiction:

(1) May suspend payment of educational assistance allowance to any or all veterans and eligible persons enrolled in the course, and

(2) After following the procedures in § 21.4207 may discontinue payment of educational assistance to any or all veterans and eligible persons enrolled in the course.

(b) Evidence requirements for individual suspensions. The Director of the Department of Veterans Affairs facility of jurisdiction may suspend or discontinue payments of educational assistance allowance to a veteran or eligible person, even if the Director continues payment to other veterans or eligible persons enrolled in the course. Before the Director can do this, he or she must have evidence showing either that:

(1) The program of education or any course in which the veteran or eligible person is enrolled fails to meet any of the requirements of chapter 1606 of title 10 U.S.C. or chapter 30, 32, 34, 35 or 36 of title 38 U.S.C., or

(2) The educational institution offering the veteran's or eligible person's course has violated or failed to meet any of the requirements of chapter 1606 of title 10 U.S.C. or chapter 30, 32, 34, 35 or 36 of title 38 U.S.C., and

(3) The violation or failure results in erroneous payment of educational assistance to the veteran or eligible person.

(c) Evidence requirements for mass suspension of payments. Before suspending payments to all veterans and eligible persons enrolled in a course the Director must have evidence to support the suspension. The evidence must show that a substantial pattern of veterans and eligible persons enrolled in the course are not entitled to the educational assistance they are receiving because:

(1) One or more of the course approval requirements of chapter 36, title 38 U.S.C. are not met, or

(2) The educational institution offering the course has violated one or more of the recordkeeping or reporting requirements of Chapter 1606 of Title 10 U.S.C. or Chapter 30, 32, 34, 35 or 36 of Title 38 U.S.C.

(d) Notification. (1) The Director may suspend educational assistance allowance as provided in this section only after:

(i) He or she notifies the State approving agency concerned and the educational institution in writing of any failure to meet the approval requirements and any violation of recordkeeping or reporting requirements.

(ii) The educational institution:

(A) Refuses to take corrective action, or

(B) Does not take corrective action within 60 days (or 90 days if permitted by the Director); and

(iii) The Director notifies each veteran and eligible person as provided in § 21.4133.

(2) If an educational institution believes it cannot complete corrective action within 60 days, it may ask the Director for additional time (not to exceed 30 days) to take corrective action.

(e) Action following suspension. If following a suspension of payments the Director is convinced that the educational institution will not take corrective action and that the State approving agency will not disapprove the course, he or she will refer the facts to the facility Committee on Educational Allowances. See §§ 21.4207 and 21.4208.