96-3780. Veterans Education: Implementation of the Veterans' Benefits Act of 1992, the National Defense Authorization Act for Fiscal Year 1993, and the National Defense Authorization Act for Fiscal Year 1994  

  • [Federal Register Volume 61, Number 36 (Thursday, February 22, 1996)]
    [Rules and Regulations]
    [Pages 6780-6791]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-3780]
    
    
    
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    DEPARTMENT OF VETERANS AFFAIRS
    
    38 CFR Part 21
    
    RIN 2900-AG22
    
    
    Veterans Education: Implementation of the Veterans' Benefits Act 
    of 1992, the National Defense Authorization Act for Fiscal Year 1993, 
    and the National Defense Authorization Act for Fiscal Year 1994
    
    AGENCY: Department of Veterans Affairs.
    
    ACTION: Final rule.
    
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    SUMMARY: This document amends the educational assistance and 
    educational benefits regulations of the Department of Veterans Affairs 
    (VA). It makes changes concerning eligibility requirements for 
    educational assistance and benefits, rates of payment for educational 
    assistance, measurement of training time, approval of various types of 
    courses, and educational death benefits. These changes restate 
    statutory requirements and set forth VA's statutory interpretations.
    
    DATES: This final rule is effective February 22, 1996. However, the 
    restatements of statute and VA's statutory interpretations contained in 
    this final rule will be applied retroactively from the effective dates 
    of the statutory provisions. For more information concerning the 
    application of statutes and statutory interpretations, see the 
    SUPPLEMENTARY INFORMATION section.
    
    FOR FURTHER INFORMATION CONTACT:
    June C. Schaeffer, Assistant Director for Policy and Program 
    Administration, Education Service, Veterans Benefits Administration, 
    202-273-7187.
    
    SUPPLEMENTARY INFORMATION: Regulations concerning VA-administered 
    educational assistance and educational benefits are contained in 38 CFR 
    Part 21. The Veterans' Benefits Act of 1992 (Pub. L. 102-568) amends 
    educational assistance provisions under the Montgomery GI Bill--Active 
    Duty and amends other provisions that affect work-study under the 
    Survivors' and Dependents' Educational Assistance program. The National 
    Defense Authorization Act for Fiscal Year 1993 (Pub. L. 102-484) and 
    the National Defense Authorization Act for Fiscal Year 1994 (Pub. L. 
    103-160) also amend provisions concerning educational assistance under 
    the Montgomery GI Bill--Active Duty. This document contains a number of 
    changes to the regulations which merely reflect certain changes made by 
    these public laws. These changes to the regulations are as follows.
        Under Pub. L. 102-568, the limit on the amount of money that VA can 
    pay in advance on a work-study contract has been changed. Formerly, 
    that limit was 40 percent of the total amount payable under the 
    contract. Now the limit is the lesser of 40 percent of the total amount 
    payable under the contract or 50 times the applicable minimum hourly 
    wage in effect on the date the contract is signed. Changes are made to 
    38 CFR 21.3145 and 21.7145 to reflect these statutory provisions.
        Pub. L. 102-484 includes the Service Members Occupational 
    Conversion and Training Act (SMOCTA) (sec. 4481 through 4497, Pub. L. 
    102-484), which forbids receipt of educational assistance under any of 
    the education programs administered by VA when the veteran, 
    servicemember, or other eligible person is participating in a job 
    training program under SMOCTA. Revisions are made to 38 CFR 21.4131, 
    21.4135, 21.7131, and 21.7135 to reflect these statutory provisions.
        Pub. L. 102-568 provides for later ending dates when the veteran 
    dies during the period covered by an advance payment of educational 
    assistance. Prior to the effective date of Pub. L. 102-568, educational 
    assistance was terminated effective the date the veteran died. However, 
    Pub. L. 102-568 provides that in the event of a death, the effective 
    date of the termination will be the last date covered by the advance 
    payment. Revisions are made to 38 CFR 21.4135 and 21.7135 to reflect 
    these statutory provisions.
        Pub. L. 102-568 prohibits State approving agencies from approving 
    for VA educational assistance a course of education that includes 
    nonaccredited independent study. It also prohibits VA from approving an 
    enrollment in an independent study course unless the course is 
    accredited and leads to a standard college degree. Revisions are made 
    to 38 CFR 21.4252, 21.7120, 21.7122, 21.7220 and 21.7222 to reflect 
    these statutory changes. However, under Pub. L. 102-568 these 
    prohibitions do not apply to any person receiving educational 
    assistance for pursuit of an independent study program in which the 
    person was enrolled on the date of enactment of Pub. L. 102-568 
    (October 29, 1992) who remains ``continuously * * * enrolled'' and 
    otherwise meets the requirements for eligibility for such assistance in 
    effect on October 29, 1992. Revisions are made to Secs. 21.4252 and 
    21.7120 to restate these statutory provisions. Also, the following 
    definition of ``continuously enrolled'' is added to 38 CFR 21.7020 to 
    interpret what constitutes ``continuously enrolled'':
    
    
    [[Page 6781]]
    
        The term continuously enrolled means being in an enrolled status 
    at an educational institution for each day during the school year, 
    and for consecutive school years. Continuity of enrollment is not 
    broken by holiday vacations; vacation periods; periods during the 
    school year between terms, quarters, or semesters; or by 
    nonenrollment during periods of enrollment outside the school year 
    (e.g., summer sessions).
    
    The Congress did not indicate that a special meaning other than the 
    common meaning was intended for ``continuously enrolled.'' Therefore, 
    we have concluded that the Congress intended that we interpret 
    ``continuously enrolled'' consistent with its common meaning and we 
    have formulated the definition of ``continuously enrolled'' in 
    accordance with our understanding of the Congressional intent.
        Pub. L. 102-568 repealed the special provisions for determining 
    students' training time while enrolled in independent study, thereby 
    making the determination of this training time the same as that for 
    resident training. Consequently, the monthly rates for educational 
    assistance for independent study and for resident study are based on 
    the same formula. This eliminates the basis for the provisions in 38 
    CFR 21.4280 governing independent study course measurement. To reflect 
    these statutory changes, rules dealing with the approval of independent 
    study courses are set forth at 38 CFR 21.4267, and 38 CFR 21.4280 is 
    removed.
        Pub. L. 102-568 provides that nonaccredited courses not leading to 
    a standard college degree will be measured for purposes of determining 
    training time the same as for accredited courses that are neither 
    leading to a standard college degree nor offered by an institution of 
    higher learning. Pub. L. 102-568 also provides that when an institution 
    of higher learning offers a course that does not lead to a standard 
    college degree, the students' training time will be determined in the 
    same manner as for students enrolled in undergraduate courses leading 
    to a college degree. 38 CFR 21.4271 is removed and revisions are made 
    to 38 CFR 21.4233, 21.4270, and 21.4272 to reflect these statutory 
    provisions.
        Prior to the effective date of Pub. L. 102-568, nurse's aide 
    courses could not be approved for VA training, and consequently VA 
    educational assistance could not be awarded for such training. Pub. L. 
    102-568 provides criteria for approving some nurse's aide courses. 
    Changes are made to 38 CFR 21.4265 to reflect this statutory change.
        Pub. L. 102-568 changes the criteria for establishing eligibility 
    for educational assistance under the Montgomery GI Bill--Active Duty, 
    including detailed changes concerning continuous active duty, service 
    in the selected reserve, character of service for retirees, and 
    voluntarily discharged veterans. Accordingly, changes are made to 38 
    CFR 21.7020, 21.7032, 21.7042, 21.7044, 21.7045, and 21.7050 to reflect 
    these statutory changes.
        Prior to the effective date of Pub. L. 102-568, a death benefit was 
    payable to survivors of participants in the Montgomery GI Bill--Active 
    Duty only if the participant died while on active duty. Pub. L. 102-568 
    now also permits payment of the death benefit if the participant dies 
    within a year of discharge from active duty. Accordingly, revisions are 
    made to 38 CFR 21.7280 to reflect this statutory change.
        Pub. L. 102-568 also made changes to 38 U.S.C. 3015 concerning the 
    monthly rates of educational assistance which VA is to pay to veterans 
    and servicemembers pursuing a full-time program of education under the 
    Montgomery GI Bill--Active Duty. The final rule changes these rates in 
    38 CFR 21.7136 and 21.7137 to reflect these statutory changes. These 
    changes to Secs. 21.7136 and 21.7137 also have the effect of changing 
    the rates for part-time training, cooperative training, and 
    apprenticeship and other on-job training. 38 U.S.C. 3032 provides 
    formulas to determine the monthly rates for those students pursuing 
    cooperative training and those in apprenticeships and other on-job 
    training. 38 U.S.C. 3015(a) and (b) further state that the monthly 
    rates of educational assistance to be paid to part-time students 
    receiving benefits under the Montgomery GI Bill--Active Duty is to be 
    determined by regulations prescribed by the Secretary of Veterans 
    Affairs. The formula for part-time rates was established based on 
    proposed and final rule making (see 52 FR 25736, July 8, 1987; 53 FR 
    1756, Jan. 22, 1988). Under this formula, monthly rates for three-
    quarter-time and one-half-time students have been set at three-quarters 
    and one-half of the statutory full-time rate respectively. The monthly 
    rates payable for less than one-half-time students are the pro-rated 
    amount of their tuition and fees (not to exceed one-half the statutory 
    full-time rate for those training less than one-half time and more than 
    one-quarter time, and not to exceed one-quarter of the full-time rate 
    for those training one-quarter time).
        In addition, this final rule contains an interpretative rule with 
    respect to how the statutory requirements for accreditation of an 
    independent study course applies when there is a loss of accreditation. 
    If an independent study course loses its accreditation (or the 
    educational institution offering the course loses its accreditation), 
    it is our view that VA is required under the statutes controlling the 
    Montgomery GI Bill--Active Duty and Survivors' and Dependents' 
    Educational Assistance programs, as amended by Pub. L. 102-568, to 
    discontinue payments for such a course effective the date of the loss 
    of accreditation. The regulations are amended by adding 38 CFR 
    21.4135(x) and 21.7135(z) to accomplish this purpose.
        This final rule also makes nonsubstantive changes for clarity or to 
    reflect statutory recodification changes.
        The restatements of statute and statutory interpretations contained 
    in this final rule will be applied retroactively from the effective 
    dates of the statutory provisions. The dates of application for such 
    changes made by this document (and for certain of the nonsubstantive 
    changes made for clarity or to reflect statutory recodification 
    changes) are as follows:
        October 19, 1984: 38 CFR 21.7020(b)(5), 21.7020(b)(6)(i), and 
    21.7020(b)(6)(ii).
        June 30, 1985 (to apply to training received after August 31, 
    1993): Sec. 21.7136(a)(2)(ii)(C).
        June 30, 1985 (to apply to training received after September 30, 
    1993): Secs. 21.7020(b)(6)(iii), 21.7020(b)(6)(iv), and 21.7072(b).
        October 28, 1986: Secs. 21.7044(a), 21.7044(b)(12), and 21.7050(b).
        December 1, 1988: Sec. 21.7042(c).
        October 23, 1992: Secs. 21.4131(i), 21.4135(aa), 21.7032(a), 
    21.7032(f), 21.7042(b), 21.7042(f), 21.7045 (except (a)(1)(i)), 
    21.7131(j), 21.7135(aa), 21.7136 introductory text, 21.7136(a)(1) (as 
    redesignated), 21.7136(a)(2)(ii)(B) (as redesignated), and 21.7136(f) 
    (as redesignated); and the redesignations of paragraphs (a), (b), 
    (b)(1), (b)(2), (b)(3), (c), (d), and (e) of Sec. 21.7136.
        October 29, 1992: Secs. 21.3145, 21.4135(a), 21.4135(x), 
    21.4234(a), 21.4252(g), 21.4253(a), 21.4254(d), 21.4265(b), 21.4267, 
    21.7020(b)(42), 21.7042(a), 21.7120(d), 21.7122(e), 21.7135(a), 
    21.7135(z) (as added), 21.7145, 21.7152, 21.7220, 21.7222, and 21.7280; 
    the redesignation of Sec. 21.7135(z); and the removal of Sec. 21.4280.
        April 1, 1993: Secs. 21.7136(b) (as redesignated), 21.7136(c) (as 
    redesignated), and 21.7137.
        July 1, 1993 (to apply to enrollments for terms, semesters, or 
    quarters that begin after June 30, 1993): Secs. 21.4233(b), 21.4270(a), 
    21.4270(b), 21.4270(c) 
    
    [[Page 6782]]
    footnote 1, 21.4272 introductory text, 21.4272(g), 21.7170, 21.7172(a) 
    and 21.7172(d); and the removal of Secs. 21.4271, 21.4272(e), 
    21.4272(f), 21.4272(h), and 21.4272(i).
        November 30, 1993: Secs. 21.7044(b)(8) and 21.7045(a)(1)(i).
        The Secretary of Veterans Affairs hereby certifies that this final 
    rule will not have a significant economic impact on a substantial 
    number of small entities as they are defined in the Regulatory 
    Flexibility Act, 5 U.S.C. 601-612. This final rule merely restates 
    statutory changes, sets forth statutory interpretations, and makes 
    nonsubstantive changes. Pursuant to 5 U.S.C. 605(b), this final rule, 
    therefore, is exempt from the initial and final regulatory flexibility 
    analyses requirements of Secs. 603 and 604.
        This final rule has been reviewed by the Office of Management and 
    Budget pursuant to the provisions of Executive Order 12866.
    
        The Catalog of Federal Domestic Assistance numbers for the 
    programs affected by this final rule are 64.117 and 64.120.
    
    List of Subjects in 38 CFR Part 21
    
        Civil rights, Claims, Education, Grant programs-education, Loan 
    programs-education, Reporting and recordkeeping requirements, Schools, 
    Veterans, Vocational education, Vocational rehabilitation.
    
        Approved: July 17, 1995.
    Jesse Brown,
    Secretary of Veterans Affairs.
    
        For the reasons set out in the preamble, 38 CFR part 21, subparts 
    C, D, and K are amended as set forth below.
    
    PART 21--VOCATIONAL REHABILITATION AND EDUCATION
    
    Subpart C--Survivors' and Dependents' Educational Assistance Under 
    38 U.S.C. Chapter 35
    
        1. The authority citation for part 21, subpart C is revised to read 
    as follows:
    
        Authority: 38 U.S.C. 501(a); 38 U.S.C. 3500-3566, unless 
    otherwise noted.
    
        2. In Sec. 21.3145, paragraph (e) is revised to read as follows:
    
    
    Sec. 21.3145  Work-study allowance.
    
    * * * * *
        (e) Payment in advance. VA will pay in advance an amount equal to 
    the lesser of the following:
        (1) 40 percent of the total amount payable under the contract, or
        (2) An amount equal to 50 times the applicable minimum hourly wage 
    in effect on the date the contract is signed.
    
    (Authority: 38 U.S.C. 3485, 3537)
    * * * * *
    
    Subpart D--Administration of Educational Benefits; 38 U.S.C. 
    Chapters 34, 35, and 36
    
        3. The authority citation for part 21, subpart D is revised to read 
    as follows:
    
        Authority: 38 U.S.C. 501(a); 38 U.S.C. ch. 34, 35, 36, unless 
    otherwise noted.
    
        4. In Sec. 21.4131, paragraph (i) is added, to read as follows:
    
    
    Sec. 21.4131  Commencing dates.
    
    * * * * *
        (i) Service Members Occupational Conversion and Training Act of 
    1992. If the veteran's or eligible person's educational assistance has 
    been discontinued because the veteran or eligible person is training 
    under a job training program for which benefits are payable to his or 
    her employer under the Service Members Occupational Conversion and 
    Training Act, VA will determine the date upon which educational 
    assistance may be resumed as follows.
        (1) When the veteran or eligible person is pursuing a program of 
    education on the last date for which benefits are payable under that 
    Act, payments will be resumed on the day following that date.
        (2) When the veteran or eligible person is not pursuing a program 
    of education on the last date for which benefits are payable under that 
    Act, payments will be resumed on the earliest date otherwise provided 
    by this section, but not before the day following the last date for 
    which benefits are payable under that Act.
    
    (Authority: Sec. 4492(a), Pub. L. 102-484, 106 Stat. 2765-2766)
    * * * * *
        5. In Sec. 21.4135, paragraph (a) is revised; an authority citation 
    to paragraph (a) is added; and paragraphs (x) and (aa) and their 
    authority citations are added, to read as follows:
    
    
    Sec. 21.4135  Discontinuance dates. * * *
    
        (a) Death of veteran or eligible person. (1) If the veteran or 
    eligible person receives an advance payment pursuant to 38 U.S.C. 
    3680(d) 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.
        (2) In all other cases if the veteran or eligible person dies while 
    pursuing a program of education, the discontinuance date of educational 
    assistance shall be the last date of attendance.
    
    (Authority: 38 U.S.C. 3680)
    * * * * *
        (x) Independent study course loses accreditation. Except as 
    otherwise provided in Sec. 21.4252(g), if the veteran or eligible 
    person is enrolled in a course offered in whole or in part by 
    independent study, and the course loses its accreditation (or the 
    educational institution offering the course loses its accreditation), 
    the date of reduction or discontinuance will be the effective date of 
    the withdrawal of accreditation by the accrediting agency.
    
    (Authority: 38 U.S.C. 3672, 3676, 3680A(a))
    * * * * *
        (aa) Service Members Occupational Conversion and Training Act of 
    1992. If an individual enters a training program for the purpose of 
    obtaining assistance under the Service Members Occupational Conversion 
    and Training Act of 1992, the effective date of discontinuance of 
    educational assistance shall be the date on which the individual 
    entered the job training program.
    
    (Authority: Sec. 4492(a), Pub. L. 102-484, 106 Stat. 2765-2766)
    
        6. In Sec. 21.4233, paragraphs (b)(4), (b)(1), (b)(2) and (b)(3) 
    are redesignated as paragraphs (b)(1), (b)(2), (b)(3) and (b)(4), 
    respectively; paragraph (b)(5) is amended by removing 
    ``Sec. 21.4270(a), footnote 6'' and adding, in its place, 
    ``Sec. 21.4270(b)''; and newly redesignated paragraphs (b)(1) and 
    (b)(2) are revised, to read as follows:
    
    
    Sec. 21.4233  Combination. * * *
    
        (b) Concurrent enrollment. * * *
        (1) If VA measures the courses pursued at both institutions on 
    either a clock-hour basis or a credit-hour basis, VA will measure the 
    veteran's or eligible person's enrollment by adding together the units 
    of measurement in the second school to the units of measurement for the 
    courses in the primary institution. The standard for full time will be 
    the full-time standard for the courses at the primary institution.
        (2) Where the standards for measurement of the courses pursued 
    concurrently in the two schools are different, VA will measure the 
    veteran's or eligible person's enrollment by converting the units of 
    measurement for courses in the second school to the equivalent in value 
    expressed in units of measurement required for the courses in the 
    program of education which the veteran or eligible person is pursuing 
    at the primary institution.
    
    (Authority: 38 U.S.C. 3688)
    * * * * * 
    
    [[Page 6783]]
    
        7. In Sec. 21.4234, paragraphs (a)(2)(ii) and (a)(2)(iii) are 
    revised, and paragraph (a)(2)(iv) is added, to read as follows:
    
    
    Sec. 21.4234  Change of program.
    
        (a) Definition. * * *
        (2) * * *
        (ii) A change in the individual's educational, professional or 
    vocational objective following the successful completion of the 
    immediately preceding program of education,
        (iii) A return to the individual's prior program of education 
    following a change of program if the individual resumes training in the 
    program without any loss of credit or standing in that program, or
        (iv) An enrollment in a new program of education when that program 
    leads to a vocational, educational or professional objective in the 
    same general field as the immediately preceding program of education.
    
    (Authority: 38 U.S.C. 3691)
    * * * * *
        8. In Sec. 21.4252, paragraph (g) and its authority citation are 
    added, to read as follows:
    
    
    Sec. 21.4252  Courses precluded.
    
    * * * * *
        (g) Independent study. (1) Effective October 29, 1992, VA may pay 
    educational assistance to a veteran who is enrolled in a nonaccredited 
    course or unit subject offered entirely or partly by independent study 
    only if--
        (i) Successful completion of the nonaccredited course or unit 
    subject is required in order for the veteran to complete his or her 
    program of education; and the veteran--
        (A) Was receiving educational assistance on October 29, 1992, for 
    pursuit of the program of education of which the nonaccredited 
    independent study course or unit subject forms a part, and
        (B) Has remained continuously enrolled in that program of education 
    from October 29, 1992, to the date the veteran enrolls in the 
    nonaccredited independent study course or unit subject; or
        (ii) Was enrolled in and receiving educational assistance for the 
    nonaccredited independent study course or unit subject on October 29, 
    1992, and remains continuously enrolled in that course or unit subject.
        (2) Whether or not the veteran is enrolled will be determined by 
    the regularly prescribed standards and practices of the educational 
    institution.
    
    (Authority: 38 U.S.C. 3680A; sec. 313(b), Pub. L. 102-568, 106 Stat. 
    4331-4332)
    * * * * *
        9. In Sec. 21.4253, paragraph (a)(3) is revised and paragraph 
    (a)(5) and an authority citation for paragraph (a) are added, to read 
    as follows:
    
    
    Sec. 21.4253  Accredited courses.
    
        (a) General. * * *
        (3) The course is conducted under the Act of February 23, 1917 (20 
    U.S.C. 11 et seq.).
    * * * * *
        (5) The course is approved by the State as meeting the requirement 
    of regulations prescribed by the Secretary of Health and Human Services 
    under sections 1819(f)(2)(A)(i) and 1919(f)(2)(A)(i) of the Social 
    Security Act (42 U.S.C.1395i-3(f)(2)(A)(i) and 1396r(f)(2)(A)(i)).
    
    (Authority: 38 U.S.C. 3675(a))
    * * * * *
        10. In Sec. 21.4254, paragraph (d) and its authority citation are 
    added, to read as follows:
    
    
    Sec. 21.4254  Nonaccredited courses.
    
    * * * * *
        (d) Limitations on course approval. Notwithstanding any other 
    provision of this section, a State approving agency shall not approve a 
    nonaccredited course if it is to be pursued in whole or in part by 
    independent study.
    
    (Authority: 38 U.S.C. 3676(e))
    
        11. In Sec. 21.4265, paragraph (b)(3) is revised and an authority 
    citation is added, to read as follows:
    
    
    Sec. 21.4265  Practical training approved as institutional training or 
    on-job training.
    
    * * * * *
        (b) Nursing courses.
    * * * * *
        (3) Except for enrollment in a nurse's aide course approved 
    pursuant to Sec. 21.4253(a)(5), VA shall not approve an enrollment in a 
    nonaccredited nursing course which does not meet the licensing 
    requirements of the State where the course is offered.
    
    (Authority: 38 U.S.C. 3452, 3688)
    * * * * *
        12. In subpart D, a new Sec. 21.4267 and its authority citations 
    are added, to read as follows:
    
    
    Sec. 21.4267  Approval of independent study.
    
        (a) Overview. Except as provided in Secs. 21.4252(g), 21.7120(c), 
    and 21.7622(f), VA may not pay educational assistance for a 
    nonaccredited course which is offered in whole or in part by 
    independent study. Hence, it is necessary to differentiate independent 
    study from similar courses.
    
    (Authority: 38 U.S.C. 3014, 3672, 3676(e), 3680A(a))
    
        (b) Definition of independent study. (1) VA considers a course to 
    be offered entirely by independent study when--
        (i) It consists of a prescribed program of study with provision for 
    interaction either by mail, telephone, or personally between the 
    student and the regularly employed faculty of the university or 
    college;
        (ii) It is offered without any regularly scheduled, conventional 
    classroom or laboratory sessions; and
        (iii) It is not a course listed in paragraph (c), (d), or (e) of 
    this section.
        (2) VA considers a course to be offered in part by independent 
    study when--
        (i) It is an undergraduate course;
        (ii) It is not classified as one of the three types of courses 
    listed in paragraph (c) of this section;
        (iii) It has some weeks when standard class sessions are scheduled; 
    and
        (iv) It consists of independent study as defined in paragraph 
    (b)(1) of this section during those weeks when there are no regularly 
    scheduled class sessions.
    
    (Authority: 38 U.S.C. 3676(e), 3680A(a))
    
        (c) Scope of independent study. VA does not consider any of the 
    following courses to be courses offered by independent study.
        (1) A cooperative course as defined in Sec. 21.4233(a);
        (2) A farm cooperative course; or
        (3) A course approved as a correspondence course.
    
    (Authority: 38 U.S.C. 3676(e), 3680A(a))
    
        (d) Undergraduate resident training. VA considers the following 
    undergraduate courses to be resident training.
        (1) A course which meets the requirements for resident 
    institutional training found in Sec. 21.4265(f);
        (2) A course which requires regularly scheduled, standard class 
    sessions at least once every two weeks and which has a total number of 
    class sessions equal to the number of credit hours awarded for the 
    course, times the number of weeks in a standard quarter or semester, as 
    applicable;
        (3) A course of student teaching; and
        (4) Flight training which is an integral part of a standard 
    undergraduate college degree.
        (e) Graduate resident training. VA considers a graduate course to 
    be resident training if the course--
        (1) Is offered through regularly scheduled, conventional classroom 
    or laboratory sessions; or
        (2) Consists of research (either on campus or in absentia) 
    necessary for the preparation of the student's--
    
    [[Page 6784]]
    
        (i) Master's thesis,
        (ii) Doctoral dissertation, or
        (iii) Similar treatise which is prerequisite to the degree being 
    pursued; or
        (3) Consists of a combination of training as described in 
    paragraphs (e)(1) and (e)(2) of this section.
    
    (Authority: 38 U.S.C. 3676(e), 3680A(a))
    
        13. In Sec. 21.4270, paragraphs (a) and (b) and footnote 1 to the 
    table in paragraph (c) are revised, to read as follows:
    
    
    Sec. 21.4270  Measurement of courses.
    
        (a) Measurement of trade, technical, and high school courses. 
    Trade, technical, high school, and high school preparatory courses 
    shall be measured as stated in this paragraph.
        (1) Trade and technical courses. (i) Except as provided in 
    paragraph (b) of this section, if shop practice is an integral part of 
    a trade or technical course not leading to a standard college degree--
        (A) A full-time enrollment is 22 clock hours per week (exclusive of 
    supervised study) with not more than 2\1/2\ hours rest period 
    allowance;
        (B) A three-quarter-time enrollment is 16 through 21 clock hours 
    per week (exclusive of supervised study) with not more than 2 hours 
    rest period allowance;
        (C) A one-half-time enrollment is 11 through 15 clock hours per 
    week (exclusive of supervised study) with not more than 1\1/4\ hours 
    rest period allowance;
        (D) A less than one-half-time but more than one-quarter-time 
    enrollment is 6 through 10 clock hours per week (exclusive of 
    supervised study) with not more than \3/4\ hour rest period allowance; 
    and
        (E) A quarter-time enrollment is 1 through 5 clock hours per week 
    (exclusive of supervised study).
        (ii) Except as provided in paragraph (b) of this section, if theory 
    and class instruction constitute more than 50 percent of the required 
    hours in a trade or technical course not leading to a standard college 
    degree, enrollments will be measured as follows. In measuring net 
    instruction there will be included customary intervals not to exceed 10 
    minutes between classes. Shop practice and rest periods are excluded. 
    Supervised instruction periods in a school's shops and the time 
    involved in field trips and group instruction may be included in 
    computing the clock hour requirements.
        (A) A full-time enrollment is 18 clock hours net instruction per 
    week (exclusive of supervised study);
        (B) A three-quarter-time enrollment is 13 through 17 clock hours 
    net instruction per week (exclusive of supervised study);
        (C) A one-half-time enrollment is 9 through 12 clock hours net 
    instruction per week (exclusive of supervised study);
        (D) A less than one-half-time but more than one-quarter-time 
    enrollment is 5 through 8 clock hours net instruction per week 
    (exclusive of supervised study); and
        (E) A quarter-time enrollment is 1 through 4 clock hours net 
    instruction per week (exclusive of supervised study).
        (2) High school courses. If a student is pursuing high school 
    courses at a rate which would result in an accredited high school 
    diploma in four ordinary school years, VA considers him or her to be 
    enrolled full time. Otherwise, for high school enrollments, training 
    time will be determined as follows. (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.)
        (i) A full-time enrollment is 18 clock hours net instruction per 
    week or four units per year or the equivalent;
        (ii) A three-quarter-time enrollment is 13 through 17 clock hours 
    net instruction per week or three units per year or the equivalent;
        (iii) A one-half-time enrollment is 9 through 12 clock hours net 
    instruction per week or two units per year or the equivalent;
        (iv) A less than one-half-time but more than one-quarter-time 
    enrollment is 5 through 8 clock hours net instruction per week or one 
    unit per year or the equivalent; and
        (v) A one-quarter-time enrollment is 1 through 4 clock hours net 
    instruction per week.
        (3) Elementary school. For a high school preparatory course pursued 
    at the elementary school level--
        (i) A full-time enrollment is 18 clock hours net instruction per 
    week;
        (ii) A three-quarter-time enrollment is 13 through 17 clock hours 
    net instruction per week;
        (iii) A one-half-time enrollment is 9 through 12 clock hours net 
    instruction per week;
        (iv) A less than one-half-time but more than one-quarter-time 
    enrollment is 5 through 8 clock hours net instruction per week; and
        (v) A one-quarter-time enrollment is 1 through 4 clock hours per 
    week.
    
    (Authority: 38 U.S.C. 3688(a))
    
        (b) Measurement of non-college degree courses offered by 
    institutions of higher learning. (1) Notwithstanding the provisions of 
    paragraph (a)(1) of this section, if a student is enrolled in a course 
    which is not leading to a standard college degree and which is offered 
    by an institution of higher learning, VA will measure his or her 
    enrollment in the same manner as collegiate undergraduate courses are 
    measured according to the provisions of paragraph (c) of this section.
        (2) Notwithstanding the provisions of paragraph (a)(1) of this 
    section, if a student is enrolled in a course not leading to a standard 
    college degree which is offered on a standard quarter- or semester-hour 
    basis by an educational institution which is not an institution of 
    higher learning, VA shall measure his or her enrollment in the same 
    manner as collegiate undergraduate courses are measured according to 
    the provisions of paragraph (c) of this section, provided that the 
    educational institution requires at least the same minimum number of 
    hours of weekly attendance as are required by paragraph (a)(1) of this 
    section for courses offered on a clock-hour basis. If the educational 
    institution does not require at least the same minimum number of hours 
    of weekly attendance as are required in paragraph (a)(1) of this 
    section, VA will not apply the provisions of paragraph (c) of this 
    section, but will measure the course according to the criteria in 
    paragraph (a)(1) of this section.
    
    (Authority: 38 U.S.C. 3688(a)(7))
    
        (c) Collegiate graduate, professional and on-the-job training 
    courses. * * *
    
        \1\ Cooperative courses may be measured on a full-time basis 
    only.
    
    * * * * *
        14. Section 21.4271 is removed and reserved.
        15. In Sec. 21.4272, paragraphs (e), (f), (h), and (i) are removed 
    and reserved; and the introductory text and paragraph (g)(3) are 
    revised, to read as follows:
    
    
    Sec. 21.4272  Collegiate course measurement.
    
        VA will measure a college level course in an institution of higher 
    learning on a credit-hour basis provided all the conditions under 
    paragraph (a) or (b) of this section are met. See also Sec. 21.4273.
    
    (Authority: 38 U.S.C. 3688)
    * * * * *
        (g) Course measurement; nonstandard terms. * * *
        (3) The quotient resulting from the use of the formula is called 
    equivalent credit hours. VA treats equivalent credit hours as credit 
    hours for measurement purposes.
    
    
    [[Page 6785]]
    
    (Authority: 38 U.S.C. 3688(b))
    * * * * *
        16. Section 21.4280 is removed and reserved.
    
    Subpart K--All Volunteer Force Educational Assistance Program (New 
    GI Bill)
    
        17. The authority citation for part 21, subpart K is revised to 
    read as follows:
    
        Authority: 38 U.S.C. 501(a); 38 U.S.C. ch. 30, unless otherwise 
    noted.
    
        18. In Sec. 21.7020, paragraphs (b)(5) and (b)(6) are revised, and 
    paragraph (b)(42) is added, to read as follows:
    
    
    Sec. 21.7020  Definitions.
    
    * * * * *
        (b) Other definitions. * * *
        (5) Break in service. (i) Except as provided in paragraph 
    (b)(5)(ii) of this section, the term break in service means a period of 
    more than 90 days between the date when an individual is released from 
    active duty or otherwise receives a complete separation from active 
    duty service and the date he or she reenters on active duty.
        (ii) A period during which an individual is assigned full time by 
    the Armed Forces to a civilian institution for a course of education 
    substantially the same as established courses offered to civilians is 
    not a break in service.
    
    (Authority: 38 U.S.C. 3011, 3021)
    
        (6) Continuous active duty. (i) The term continuous active duty 
    means active duty served without interruption. An interruption in 
    service will only be found when the individual receives a complete 
    separation from active duty.
        (ii) A period during which an individual on active duty is assigned 
    full time by the Armed Forces to a civilian institution for a course of 
    education substantially the same as established courses offered to 
    civilians will not interrupt the continuity of the individual's active 
    duty.
        (iii) If an individual, during his or her initial obligated period 
    of active-duty service, is separated from active duty to pursue a 
    course of education at a service academy or a post-secondary school 
    preparatory to enrollment at a service academy, no interruption in 
    service will be found and the individual's service will be considered 
    continuous active-duty service, provided he or she--
        (A) Commences pursuit of a course of education at a service academy 
    or post-secondary school,
        (B) Fails to complete the course of education, and
        (C) Immediately reenters on a period of active duty.
        (iv) An individual who is discharged or released from active duty 
    for a reason stated in paragraph (b)(6)(iv) of this section after 
    serving not more than 12 months of his or her initial obligated period 
    of active duty, and who subsequently reenlists or reenters on a period 
    of active duty, will not be considered to have an interruption in 
    service. Except as provided in paragraph (b)(6)(v) of this section, the 
    individual's service during the two periods will be considered 
    continuous active-duty service for the aggregate length of the two 
    service periods. However, the individual's discharge or release from 
    the initial obligated period of service must have been:
        (A) For a service-connected disability,
        (B) For a medical condition which preexisted such active-duty 
    service and is not service connected,
        (C) For a physical or mental condition not characterized as a 
    disability and not resulting from the individual's own willful 
    misconduct which interfered with the individual's performance of duty 
    as determined by the Secretary concerned, or
        (D) Involuntary, for the convenience of the Government as a result 
    of a reduction in force as determined by the Secretary concerned.
        (v) If the second period of active-duty service referred to in 
    paragraph (b)(6)(iv) of this section is of such nature or character 
    that, when aggregated with the initial period of service referred to in 
    that paragraph, it would cause the individual to be divested of 
    entitlement to educational assistance otherwise established by the 
    initial period of active duty, the two periods of service will not be 
    aggregated and will not be considered a single period of continuous 
    active duty.
        (vi) Time lost will not be considered to interrupt the continuity 
    of service. For the purpose of this section, ``time lost'' includes 
    excess leave, noncreditable time and not-on-duty time.
    
    (Authority: 38 U.S.C. 3011, 3012)
    * * * * *
        (42) Continuously enrolled. The term continuously enrolled means 
    being in an enrolled status at an educational institution for each day 
    during the school year, and for consecutive school years. Continuity of 
    enrollment is not broken by holiday vacations; vacation periods; 
    periods during the school year between terms, quarters, or semesters; 
    or by nonenrollment during periods of enrollment outside the school 
    year (e.g., summer sessions).
    
    (Authority: Sec. 313(b), Pub. L. 102-568, 106 Stat. 4333)
    
        19. In Sec. 21.7032, paragraph (a) and its authority citation are 
    revised and paragraph (f) and its authority citation are added, to read 
    as follows:
    
    
    Sec. 21.7032  Time limits.
    
        (a) Scope of this section. The provisions of this section are 
    applicable to original applications, formal or informal; to reopened 
    claims; and, to the extent indicated in paragraph (f) of this section, 
    to elections to receive educational assistance under 38 U.S.C. chapter 
    30.
    
    (Authority: 38 U.S.C. 3018B, 3034(a), 3471)
    * * * * *
        (f) Time limit for completing certain elections. An individual who 
    seeks to establish eligibility to receive educational assistance under 
    Sec. 21.7045 must--
        (1) Within one year of the date of the VA letter or other written 
    notice to the individual indicating that additional evidence is needed 
    in order to complete the claim, submit that evidence to VA. This time 
    limit may be extended if the individual is able to show good cause for 
    an extension of the period to the date on which he or she actually 
    submits the additional evidence; and
        (2) Submit the $1,200 VA is required pursuant to Sec. 21.7045(c)(2) 
    to collect before educational assistance can be awarded. A delay in 
    submitting the $1,200 may result in a later effective date for the 
    award to the individual, and in no event will VA accept payment of the 
    $1,200 from the individual after the last date of eligibility as 
    determined by Sec. 21.7050 or Sec. 21.7051. See Sec. 21.7131(k).
    
    (Authority: 38 U.S.C. 3018B)
    
        20. In Sec. 21.7042, the introductory text of paragraph (b)(7)(i) 
    is amended by removing ``as'' and adding, in its place, ``a'' and by 
    removing ``relesed'' and adding, in its place, ``released''; the 
    introductory text of paragraph (c)(3)(ii) is amended by removing ``the 
    individual is'' and adding, in its place, ``have been''; paragraph 
    (f)(1) is amended by removing ``in Sec. 21.7045(b)'' and adding, in its 
    place, ``in Sec. 21.7045(b) or (c)''; and the introductory text of 
    paragraph (a)(3) is revised, paragraph (a)(6) and its authority 
    citation and paragraph (b)(7)(iii) are added, the introductory text of 
    paragraph (c)(3) is revised, paragraphs (c)(3)(i), (c)(3)(iii)(A), and 
    (c)(3)(iii)(B) are revised, and paragraph (c)(3)(iii)(C) is added, to 
    read as follows:
    
    
    Sec. 21.7042  Basic eligibility requirements.
    
    * * * * *
        (a) Eligibility based solely on active duty. * * *
        (3) Except as provided in paragraph (a)(6) of this section, the 
    individual before completing the service 
    
    [[Page 6786]]
    requirements of this paragraph must either--
    * * * * *
        (6) An individual who does not meet the requirements of paragraph 
    (a)(3) of this section nevertheless is eligible for basic educational 
    assistance if he or she--
        (i) Was on active duty on August 2, 1990, and
        (ii) Completes the requirements of a secondary school diploma (or 
    an equivalency certificate) before October 29, 1994.
    
    (Authority: 38 U.S.C. 3011)
    
        (b) Eligibility based on active duty service and service in the 
    Selected Reserve. * * *
        (7) * * *
        (iii) Before completing four years service in the Selected Reserve, 
    the individual ceases to be a member of the Selected Reserve during the 
    period beginning on October 1, 1991, and ending on September 30, 1999, 
    by reason of the inactivation of the individual's unit of assignment or 
    by reason of involuntarily ceasing to be designated as a member of the 
    Selected Reserve pursuant to 10 U.S.C. 268(b). However, this exemption 
    from the four-year service requirement does not apply to a reservist 
    who ceases to be a member of the Selected Reserve under adverse 
    conditions as characterized by the Secretary of the military department 
    concerned, or to a reservist who after having involuntarily ceased to 
    be a member of the Selected Reserve is involuntarily separated from the 
    Armed Forces under adverse conditions as characterized by the Secretary 
    of the military department concerned.
    
    (Authority: 10 U.S.C. 16133(b)(1); 38 U.S.C. 3012(b)(1)(B); sec. 
    4421(b) and (c), Pub. L. 102-484, 106 Stat. 2718)
    * * * * *
        (c) Eligibility based on withdrawal of election not to enroll. * * 
    *
        (3) The individual must:
        (i) Complete the period of service that he or she was obligated to 
    serve on December 1, 1988, which will include completion of a period of 
    extension or reenlistment if an individual's initial obligated period 
    of service was scheduled to end after November 30, 1988, but he or she 
    extended an enlistment or reenlisted before December 1, 1988; or
    * * * * *
        (iii) * * *
        (A) Discharged or released from active duty for the convenience of 
    the Government after completing not less than 20 months of that period 
    of service if such period was less than three years, or 30 months, if 
    that period was at least three years;
        (B) Involuntarily discharged or released from active duty for the 
    convenience of the Government as a result of a reduction in force as 
    determined by the Secretary concerned in accordance with regulations 
    prescribed by the Secretary of Defense; or
        (C) Discharged or released from active duty for a physical or 
    mental condition that was not characterized as a disability and did not 
    result from the individual's own willful misconduct but did interfere 
    with the individual's performance of duty, as determined by the 
    Secretary of the military department concerned in accordance with 
    regulations prescribed by the Secretary of Defense (or by the Secretary 
    of Transportation for the Coast Guard when the Coast Guard is not 
    operating as a service of the Navy).
    * * * * *
        21. In Sec. 21.7044, paragraph (a)(3)(ii) is amended by removing 
    ``degree. This may be done at any time.'' and adding, in its place, 
    ``degree, which may be done at any time;'' paragraph (a)(4)(i)(E) is 
    amended by removing ``or;'' and adding, in its place, ``or''; paragraph 
    (a)(4)(i)(F) is amended by removing ``Navy.'' and adding, in its place, 
    ``Navy;'' and paragraph (a)(4)(i)(F) is further amended by removing its 
    authority citation; paragraph (a)(5)(iv) is amended by removing 
    ``service;'' and adding, in its place, ``service; and''; and the 
    heading, paragraph (a)(6), the authority citation for paragraph (a), 
    and paragraph (b)(8)(ii)(B) are revised, and paragraphs (b)(8)(iii) and 
    (b)(12) and their authority citations are added, to read as follows:
    
    
    Sec. 21.7044  Persons with 38 U.S.C. ch. 34 eligibility.
    
    * * * * *
        (a) Eligibility based solely on active duty. * * *
        (6) The individual must have been on active duty at any time during 
    the period beginning on October 19, 1984, and ending on July 1, 1985, 
    and continued on active duty without a break in service.
    
    (Authority: 38 U.S.C. 3011)
    
        (b) Eligibility based on combined active duty service and service 
    in the Selected Reserve. * * *
        (8) * * *
        (ii) * * *
        (B) For a medical condition which preexisted that period of active 
    duty and which VA determines is not service connected, or
        (iii) Before completing four years service in the Selected Reserve 
    the individual ceases to be a member of the Selected Reserve during the 
    period beginning on October 1, 1991, and ending on September 30, 1999, 
    by reason of the inactivation of the individual's unit of assignment or 
    by reason of involuntarily ceasing to be designated as a member of the 
    Selected Reserve pursuant to 10 U.S.C. 268(b). However, this exemption 
    from the four years service requirement does not apply to a reservist 
    who ceases to be a member of the Selected Reserve under adverse 
    conditions as characterized by the Secretary of the military department 
    concerned, or to a reservist who after having involuntarily ceased to 
    be a member of the Selected Reserve is involuntarily separated from the 
    Armed Forces under adverse conditions as characterized by the Secretary 
    of the military department concerned.
    
    (Authority: 10 U.S.C. 16133(b)(1); sec. 4421(b) and (c), Pub. L. 
    102-484, 106 Stat. 2718)
    * * * * *
        (12) The individual must have been on active duty at any time 
    during the period beginning on October 19, 1984, and ending on July 1, 
    1985, and continued on active duty without a break in service.
    
    (Authority: 38 U.S.C. 3012(a)(1)(B))
    * * * * *
        22. Section 21.7045 is revised to read as follows:
    
    
    Sec. 21.7045  Eligibility based on involuntary separation or voluntary 
    separation.
    
        An individual who fails to meet the eligibility requirements found 
    in Sec. 21.7042 or Sec. 21.7044 nevertheless will be eligible for 
    educational assistance as provided in subpart K of this part if he or 
    she meets the requirements of paragraph (a) and either paragraph (b) or 
    (c) of this section.
        (a) Service requirements. The individual must meet one of the 
    following sets of service requirements.
        (1) The individual must--
        (i) Be on active duty or full-time National Guard duty either on 
    September 30, 1990, or on or after November 30, 1993, and
        (ii) After February 2, 1991, be involuntarily separated, as that 
    term is defined in 10 U.S.C. 1141, with an honorable discharge; or
        (2) The individual must--
        (i) Be separated from active military, naval, or air service with 
    an honorable discharge, and
        (ii) Receive voluntary separation incentives under 10 U.S.C. 1174a 
    or 1175.
    
    (Authority: 38 U.S.C. 3018A)
    
    
    [[Page 6787]]
    
        (b) Additional requirements for those individuals voluntarily 
    separated after October 22, 1992, or involuntarily separated. An 
    individual who meets the requirements of paragraph (a)(1) of this 
    section, or an individual who meets the requirements of paragraph 
    (a)(2) of this section and was separated after October 22, 1992, must 
    meet the following additional requirements in order to establish 
    eligibility for educational assistance.
        (1) Required election. (i) If, under Sec. 21.7042(f), the 
    individual elected not to receive educational assistance under 38 
    U.S.C. ch. 30, he or she must irrevocably withdraw that election and 
    make an election to receive educational assistance under 38 U.S.C. ch. 
    30. The withdrawal and the election must be made:
        (A) Before the involuntary or voluntary separation as the case may 
    be, and
        (B) Pursuant to procedures which the Secretary of the military 
    department concerned provides in accordance with regulations prescribed 
    by the Secretary of Defense or which the Secretary of Transportation 
    provides with respect to the Coast Guard when it is not operating as a 
    service in the Navy; and
        (ii) If the individual is a participant (as defined in 
    Sec. 21.5021(e)) in the educational program provided in 38 U.S.C. ch. 
    32, the individual must make an irrevocable election to receive 
    educational assistance under 38 U.S.C. ch. 30 rather than under 38 
    U.S.C. ch. 32. Such an election must be made:
        (A) Before the individual is involuntarily or voluntarily separated 
    as the case may be, and
        (B) Pursuant to procedures which the Secretary of the military 
    department concerned provides in accordance with regulations prescribed 
    by the Secretary of Defense or which the Secretary of Transportation 
    provides with respect to the Coast Guard when it is not operating as a 
    service in the Navy; or
        (iii) If the individual is not described in either paragraph 
    (b)(1)(i) or (b)(1)(ii) of this section, he or she must make an 
    irrevocable election to receive educational assistance under 38 U.S.C. 
    ch. 30. This election must be made:
        (A) Before the individual is involuntarily or voluntarily separated 
    as the case may be, and
        (B) Pursuant to procedures which the Secretary of the military 
    department concerned provides in accordance with regulations prescribed 
    by the Secretary of Defense or which the Secretary of Transportation 
    provides with respect to the Coast Guard when it is not operating as a 
    service in the Navy.
        (2) Reduction in basic pay. The basic pay of anyone who makes one 
    of the irrevocable elections described in paragraph (b)(1) of this 
    section is required by 38 U.S.C. 3018B to be reduced by $1,200.
        (i) If for any reason the basic pay of an individual who received 
    an involuntary separation is not so reduced by $1,200, the failure to 
    make the reduction will not affect the individual's eligibility for 
    educational assistance under 38 U.S.C. ch. 30.
        (ii) If the individual is voluntarily separated, such reduction of 
    the individual's basic pay by $1,200 is a precondition to establishing 
    eligibility. Hence, educational assistance under 38 U.S.C. ch. 30 may 
    not be paid to such an individual when the reduction does not occur.
        (3) Educational requirement. (i) Before the date on which VA 
    receives the individual's application for educational assistance under 
    subpart K of this part, the individual must have successfully completed 
    either:
        (A) The requirements of a secondary school diploma (or equivalency 
    certificate), or
        (B) 12 semester hours (or the equivalent) in a program of education 
    leading to a standard college degree.
        (ii) If a veteran's application for educational assistance is 
    denied due to failure to meet the requirements of paragraph (b)(3)(i) 
    of this section at the time of his or her application for educational 
    assistance, the veteran may reapply if the requirements are 
    subsequently met.
    
    (Authority: 38 U.S.C. 3018B)
    
        (c) Additional requirements for individuals who are voluntarily 
    discharged before October 23, 1992. If an individual meets the 
    requirements of paragraph (a)(2) of this section and is voluntarily 
    discharged before October 23, 1992, he or she must also meet the 
    following requirements in order to establish eligibility for 
    educational assistance.
        (1) Required election. (i) If, under Sec. 21.7042(f), the 
    individual elected not to receive educational assistance under 38 
    U.S.C. ch. 30, he or she must irrevocably withdraw that election and 
    make an election to receive educational assistance under 38 U.S.C. ch. 
    30. The withdrawal and the new election must be made:
        (A) Before October 23, 1993, and
        (B) In the form and manner prescribed by the Secretary of Veterans 
    Affairs; and
        (ii) If the individual is a participant (as defined in 
    Sec. 21.5021(e)) in the educational program provided in 38 U.S.C. ch. 
    32, the individual must make an irrevocable election to receive 
    educational assistance under 38 U.S.C. ch. 30 rather than under 38 
    U.S.C. ch. 32. Such an election must be made:
        (A) Before October 23, 1993, and
        (B) In the form and manner prescribed by the Secretary of Veterans 
    Affairs.
        (iii) If the individual is not described in either paragraph 
    (c)(1)(i) or (ii) of this section, he or she must make an irrevocable 
    election to receive educational assistance under 38 U.S.C. ch. 30. This 
    election must be made:
        (A) Before October 23, 1993, and
        (B) In the form and manner prescribed by the Secretary of Veterans 
    Affairs.
        (2) $1,200 collection. VA must collect $1,200 from the individual 
    before awarding educational assistance under 38 U.S.C. ch. 30. 
    Collection of $1,200 is a precondition to establishing eligibility.
        (3) Educational requirement. (i) Before the date on which VA 
    receives the individual's application for educational assistance under 
    subpart K of this part, the individual must have successfully completed 
    either:
        (A) The requirements of a secondary school diploma (or equivalency 
    certificate), or
        (B) 12 semester hours (or the equivalent) in a program of education 
    leading to a standard college degree.
        (ii) If a veteran's application for educational assistance under 
    subpart K of this part is denied due to failure to meet the 
    requirements of paragraph (c)(3)(i) of this section at the time of his 
    or her application for educational assistance, the veteran will be 
    permitted to apply at a later date.
    
    (Authority: 38 U.S.C. 3018B)
    
    
    Sec. 21.705  [Amended]
    
        23. Section 21.7050(b)(1) is amended by removing ``October 18, 
    1984'' and adding, in its place, ``June 30, 1985''.
        24. In Sec. 21.7072, paragraph (b) heading, paragraph (b)(1) 
    introductory text, and the authority citation for paragraph (b)(1) are 
    revised, to read as follows:
    
    
    Sec. 21.7072  Entitlement to basic educational assistance.
    
    * * * * *
        (b) Entitlement: individual discharged for service-connected 
    disability, a medical condition which preexisted service, hardship, or 
    involuntarily for the convenience of the Government as a result of a 
    reduction in force. (1) Except as provided in Sec. 21.7073, when the 
    provisions of paragraph (b) of this section are met, an eligible 
    individual is entitled to one month of basic educational assistance (or 
    equivalent thereof in part-time basic educational assistance) for each 
    month of the 
    
    [[Page 6788]]
    individual's continuous active duty service that is after June 30, 
    1985, and that, in the case of an individual who had no previous 
    eligibility under 38 U.S.C. ch. 34, is part of the individual's initial 
    obligated period of active duty. In the case of a veteran to whom the 
    definition of continuous active duty found in either 
    Sec. 21.7020(b)(6)(iii) or Sec. 21.7020(b)(6)(iv) applies, the length 
    of the continuous active duty will be the aggregate length of the 
    periods of active duty referred to in those paragraphs. Except as 
    provided in Sec. 21.7073, VA will apply paragraph (b) of this section 
    when the individual:
    * * * * *
    (Authority: 38 U.S.C. 3011(f), 3013(a))
    * * * * *
        25. In Sec. 21.7120, paragraph (d) and its authority citation are 
    added, to read as follows:
    
    
    Sec. 21.7120  Courses included in programs of education.
    
    * * * * *
        (d) Independent study. (1) Except as provided in paragraph (d)(2) 
    of this section, effective October 29, 1992, VA may pay educational 
    assistance to a veteran or servicemember who is enrolled in a 
    nonaccredited course or unit subject offered entirely or partly by 
    independent study only if--
        (i) Successful completion of the nonaccredited course or unit 
    subject is required in order for the veteran or servicemember to 
    complete his or her program of education,
        (ii) On October 29, 1992, the veteran or servicemember was 
    receiving educational assistance for pursuit of the program of 
    education of which the nonaccredited independent study course or unit 
    subject forms a part, and
        (iii) The veteran or servicemember has remained continuously 
    enrolled in the program of education of which the nonaccredited 
    independent study course or unit subject forms a part from October 29, 
    1992, to the date of enrollment by the veteran or servicemember in the 
    nonaccredited independent study course or unit subject.
        (2) Notwithstanding the provisions of paragraph (d)(1) of this 
    section, VA may pay educational assistance to a veteran or 
    servicemember for enrollment in a course or unit subject offered by 
    independent study which, though part of an approved program of 
    education, is not required in order for the veteran or servicemember to 
    complete the program of education (i.e., an elective) when--
        (i) The veteran or servicemember was enrolled in and receiving 
    educational assistance for the course or unit subject on October 29, 
    1992, and
        (ii) The veteran or servicemember remains continuously enrolled in 
    the course or unit subject.
        (3) Whether or not the veteran or servicemember is enrolled will be 
    determined by the regularly prescribed standards and practices of the 
    educational institution offering the course or unit subject.
    
    (Authority: 38 U.S.C. 3014, 3034, 3076, 3680A(a); sec. 313(b), Pub. 
    L. 102-568, 106 Stat. 4333)
    
        26. In Sec. 21.7122, paragraphs (e)(5) and (e)(6) and the authority 
    citation for paragraph (e) are revised, and paragraph (e)(7) is added, 
    to read as follows:
    
    
    Sec. 21.7122  Courses precluded.
    
    * * * * *
        (e) Other courses. * * *
        (5) Except as provided in Sec. 21.4252(j), a course from which the 
    veteran or servicemember withdrew without mitigating circumstances,
        (6) An enrollment in a course offered by a proprietary school when 
    the veteran or servicemember is an official of the school authorized to 
    sign certificates of enrollment or monthly certificates of attendance 
    or monthly certifications of pursuit, an owner of the school, or an 
    operator of the school, or
        (7) Except as provided in Sec. 21.7120(d), an enrollment in a 
    nonaccredited independent study course.
    
    (Authority: 38 U.S.C. 3002(3), 3034, 3672(a), 3676, 3680(a), 
    3680A(a))
    
        27. In Sec. 21.7131, paragraph (j) is added, to read as follows:
    
    
    Sec. 21.7131  Commencing dates.
    
    * * * * *
        (j) Service Members Occupational Conversion and Training Act of 
    1992. If the veteran's educational assistance has been discontinued 
    because the veteran is training under a job training program for which 
    benefits are payable to his or her employer under the Service Members 
    Occupational Conversion and Training Act of 1992, VA will determine the 
    date upon which educational assistance may be resumed as follows.
        (1) When the veteran is pursuing a program of education on the last 
    date for which benefits are payable under that Act, payments will be 
    resumed on the day following that date.
        (2) When the veteran is not pursuing a program of education on the 
    last date for which benefits are payable under that Act, payments will 
    be resumed on the commencing date as determined by paragraphs (a) 
    through (i) of this section, but not before the day following the last 
    date for which benefits are payable under that Act.
    
    (Authority: Sec. 4492(a), Pub. L. 102-484, 106 Stat. 2765-2766)
    
        28. In Sec. 21.7135, paragraph (z) is redesignated as paragraph 
    (bb); and paragraph (a) and its authority citation are revised, and 
    paragraphs (z) and (aa) and their authority citations are added, to 
    read as follows:
    
    
    Sec. 21.7135  Discontinuance dates.
    
    * * * * *
        (a) Death of veteran or servicemember. (1) If the veteran or 
    servicemember receives an advance payment pursuant to 38 U.S.C. 3680(d) 
    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.
        (2) In all other cases if the veteran or servicemember dies while 
    pursuing a program of education, the discontinuance date of educational 
    assistance shall be the last date of attendance.
    
    (Authority: 38 U.S.C. 3014, 3023, 3680)
    * * * * *
        (z) Independent study course loses accreditation. Except as 
    otherwise provided in Sec. 21.7120(d), if the veteran or servicemember 
    is enrolled in a course offered in whole or in part by independent 
    study, and the course loses its accreditation (or the educational 
    institution offering the course loses its accreditation), the date of 
    reduction or discontinuance will be the effective date of the 
    withdrawal of accreditation by the accrediting agency.
    
    (Authority: 38 U.S.C. 3014, 3034, 3676, 3680A(a))
    
        (aa) Service Members Occupational Conversion and Training Act of 
    1992. If a veteran enters a training program for the purpose of 
    obtaining assistance under the Service Members Occupational Conversion 
    and Training Act of 1992, the effective date of discontinuance of 
    educational assistance shall be the date on which the veteran entered 
    the job training program.
    
    (Authority: Sec. 4492(a), Pub. L. 102-484, 106 Stat. 2765-2766)
    * * * * *
        29. In Sec. 21.7136, paragraphs (a), (b), (c), (d) and (e) are 
    redesignated as paragraphs (b), (c), (d), (e) and (f), respectively; 
    the introductory text of newly redesignated paragraph (f) is amended by 
    removing ``Sec. 21.7045(b)(2)'' and adding, in its place, 
    ``Sec. 21.7045(b)(1)(ii) or (c)(1)(ii)''; and introductory text is 
    added to the section, paragraph (a) is added, newly 
    
    [[Page 6789]]
    redesignated paragraphs (b) and (c) are revised to read as follows:
    
    
    Sec. 21.7136  Rates of payment of basic educational assistance.
    
        The monthly rate of educational assistance payable to a veteran or 
    servicemember depends in part upon the service requirements he or she 
    met to establish eligibility for that educational assistance.
        (a) Service requirements for higher rates. The monthly rate of 
    basic educational assistance payable to a veteran or servicemember 
    shall be the rate stated in paragraph (b) of this section when--
        (1) The veteran has established eligibility for educational 
    assistance under Sec. 21.7045; or
        (2) The veteran has established eligibility under Sec. 21.7042, and 
    one of the following sets of circumstances exist.
        (i) The veteran's initial obligated period of active duty is at 
    least three years; or
        (ii) The veteran's initial obligated period of active duty is at 
    least two years and less than three years and either the veteran has 
    served or is committed to serve in the Selected Reserve for a period of 
    at least four years, or the veteran was committed to serve in the 
    Selected Reserve for a period of at least four years but failed to 
    complete four years service for one of the reasons stated in 
    Sec. 21.7042(b)(7)(i) or (iii); or
        (iii) The veteran's initial obligated period of active duty is at 
    least two years and less than three years and--
        (A) The basic educational assistance is payable for training 
    received after August 31, 1993;
        (B) The veteran's continuous active duty service beginning on the 
    date of the commencement of his or her initial obligated period of 
    active duty is at least three years and upon completion of that 
    continuous period of active duty the veteran either--
        (1) Continues on active duty; or
        (2) Is discharged from active duty with an honorable discharge; or
        (3) Is released after service on active duty characterized by the 
    Secretary concerned as honorable service and is placed on the retired 
    list, transferred to the Fleet Reserve or the Fleet Marine Corps 
    Reserve, placed on the temporary disability retired list; or
        (4) 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.
    
    (Authority: 38 U.S.C. 3015(a))
    
        (b) Rates. (1) Except as provided in paragraphs (b)(2) and (b)(3) 
    of this section, the monthly rate of basic educational assistance 
    payable to a veteran whose service meets the requirements of paragraph 
    (a) of this section is the rate stated in the following table.
    
    ------------------------------------------------------------------------
                   Training                           Monthly rate          
    ------------------------------------------------------------------------
    Full time............................  $400.00.                         
    \3/4\ time...........................  300.00.                          
    \1/2\ time...........................  200.00.                          
    Less than \1/2\ but more than \1/4\    200.00                           
     time.                                 See Sec.  21.7136(d).            
    \1/4\ time or less...................  100.00                           
                                           See Sec.  21.7136(d).            
    ------------------------------------------------------------------------
    
    (Authority: 38 U.S.C. 3015(c), 3015(f))
    
        (2) If a veteran's service is described in paragraph (a) of this 
    section, the monthly rate of basic educational assistance payable when 
    he or she is pursuing an apprenticeship or other on-job training is the 
    rate stated in the following table.
    
    ------------------------------------------------------------------------
                                                                    Monthly 
                           Training period                            rate  
    ------------------------------------------------------------------------
    First six months of pursuit of program.......................    $300.00
    Second six months of pursuit of program......................     220.00
    Remaining pursuit of program.................................     140.00
    ------------------------------------------------------------------------
    
    (Authority: 38 U.S.C. 3015, 3032(c))
    
        (3) If a veteran's service is described in paragraph (a) of this 
    section, the monthly rate of basic educational assistance payable when 
    he or she is pursuing a cooperative course is $320.
    
    (Authority: 38 U.S.C. 3015(f), 3032(d))
    
        (c) Rates for some veterans whose initial obligated period of 
    active duty is less than three years. If a veteran has established 
    eligibility under Sec. 21.7042, but the veteran's service is not 
    described in paragraph (a)(2) of this section, the monthly rate of 
    educational assistance payable to the veteran shall be determined by 
    this paragraph.
        (1) Except as provided in paragraphs (c)(2) and (c)(3) of this 
    section, the monthly rate of basic educational assistance payable to a 
    veteran is the amount stated in the following table.
    
    ------------------------------------------------------------------------
                   Training                           Monthly rate          
    ------------------------------------------------------------------------
    Full time............................  $325.00.                         
    3/4 time.............................  243.75.                          
    1/2 time.............................  162.50.                          
    Less than 1/2 but more than 1/4 time.  162.50                           
                                           See Sec.  21.7136(d).            
    1/4 time or less.....................  81.25                            
                                           See Sec.  21.7136(d).            
    ------------------------------------------------------------------------
    
    (Authority: 38 U.S.C. 3015(c))
    
        (2) The monthly rate of educational assistance payable to a veteran 
    who is pursuing an apprenticeship or other on-job training is the rate 
    stated in the following table.
    
    ------------------------------------------------------------------------
                                                                    Monthly 
                           Training period                            rate  
    ------------------------------------------------------------------------
    First six months of pursuit of program.......................    $243.75
    Second six months of pursuit of program......................     178.75
    Remaining pursuit of program.................................     113.75
    ------------------------------------------------------------------------
    
    (Authority: 38 U.S.C. 3032(c))
    
        (3) The monthly rate of basic educational assistance payable to a 
    veteran is $260 when the veteran is pursuing a cooperative course.
    
    (Authority: 38 U.S.C. 3015)
    * * * * *
        30. In Sec. 21.7137, the heading and paragraphs (a)(1), (a)(2), and 
    (c) are revised, to read as follows:
    
    
    Sec. 21.7137  Rates of payment of basic educational assistance for 
    individuals with remaining entitlement under 38 U.S.C. ch. 34.
    
        (a) Minimum rates. (1) Except as provided in paragraph (a)(2) of 
    this section, the monthly rate of basic educational assistance will be 
    the rate stated in the following table.
    
    ----------------------------------------------------------------------------------------------------------------
                                                                      Monthly rate                                  
                                   ---------------------------------------------------------------------------------
                                                                                                          Additional
               Training                                                            One          Two        for each 
                                                  No dependents                 dependent    dependents   additional
                                                                                                          dependent 
    ----------------------------------------------------------------------------------------------------------------
    Full time.....................  $588.00..................................      $624.00      $655.00       $16.00
    \3/4\ time....................  441.00...................................       468.00       491.50        12.00
    \1/2\ time....................  294.00...................................       312.00       327.00         8.50
    Less than \1/2\ but more than   294.00 See Sec.  21.7137(b)..............  ...........  ...........             
     \1/4\ time.                                                                                                    
    
    [[Page 6790]]
                                                                                                                    
    \1/4\ time or less............  147.00 See Sec.  21.7137(b)..............  ...........  ...........             
    Cooperative...................  441.60...................................       462.00       481.60         9.20
    ----------------------------------------------------------------------------------------------------------------
    
    
    
    (Authority: 38 U.S.C. 3015(c), 3015(f))
    
        (2) For veterans pursuing an apprenticeship or other on-job 
    training, the monthly rate of basic educational assistance will be the 
    rate stated in the following table.
    
    ----------------------------------------------------------------------------------------------------------------
                                                                                     Monthly rate                   
                                                                 ---------------------------------------------------
                                                                                                          Additional
                           Training period                             No          One          Two        for each 
                                                                   dependents   dependent    dependents   additional
                                                                                                          dependent 
    ----------------------------------------------------------------------------------------------------------------
    1st 6 mos. of pursuit of program............................      $402.75      $415.13      $426.00        $5.25
    2nd 6 mos. of pursuit of program............................       276.38       285.73       293.43         3.85
    3rd 6 mos. of pursuit of program............................       163.80       169.93       174.65         2.45
    Remaining pursuit of program................................       151.90       157.68       162.93         2.45
    ----------------------------------------------------------------------------------------------------------------
    
    (Authority: 38 U.S.C. 3015(d), 3015(f))
    * * * * *
        (c) Rates for servicemembers. The monthly rate of educational 
    assistance for a servicemember may not exceed the lesser of the 
    following rates (except as provided in paragraph (d) of this section):
        (1) The monthly pro-rated cost of the course.
        (2) The following monthly rates--
        (i) $588.00 for full-time training,
        (ii) $441.00 for three-quarter-time training,
        (iii) $294.00 for one-half time training and training that is less 
    than one-half, but more than one-quarter-time training, and
        (iv) $147.00 for one-quarter-time training.
    
    (Authority: 38 U.S.C. 3015(d), 3015(f))
    
        31. In Sec. 21.7145, paragraph (e) is revised, to read as follows:
    
    
    Sec. 21.7145  Work-study allowance.
    
    * * * * *
        (e) Payment in advance. VA will pay in advance an amount equal to 
    the lesser of the following:
        (1) 40 percent of the total amount payable under the contract, or
        (2) An amount equal to 50 times the applicable minimum hourly wage 
    in effect on the date the contract is signed.
    
    (Authority: 38 U.S.C. 3485)
    
        32. In Sec. 21.7152, paragraph (b)(3)(ii) is removed; paragraph 
    (b)(3)(iii) is redesignated as paragraph (b)(3)(ii); and paragraph 
    (b)(3)(i) is revised, to read as follows:
    
    
    Sec. 21.7152  Certification of enrollment.
    
    * * * * *
        (b) Length of the enrollment period covered by the enrollment 
    certification.
    * * * * *
        (3) * * *
        (i) The enrollment date, and
    * * * * *
        33. In Sec. 21.7170, paragraphs (b) and (g) are removed; paragraphs 
    (c), (d), (e) and (f) are redesignated as paragraphs (b), (c), (d) and 
    (e), respectively; and the introductory text and paragraph (a) are 
    revised, to read as follows:
    
    
    Sec. 21.7170  Course measurement.
    
        In administering benefits payable under 38 U.S.C. chapter 30, VA 
    shall apply the following sections.
        (a) Sec. 21.4270 (except paragraphs (a)(2) and (a)(3) and those 
    portions of paragraph (c) and footnotes dealing with farm cooperative 
    training)--Measurement of courses,
    
    (Authority: 38 U.S.C. 3034, 3688)
    * * * * *
        34. In Sec. 21.7172, paragraphs (a)(1), (a)(2), and (d) are 
    revised, to read as follows:
    
    
    Sec. 21.7172  Measurement of concurrent enrollments.
    
        (a) Conversion of units of measurement required. * * *
        (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 veteran's training time.
    
    (Authority: 38 U.S.C. 3034, 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, 3688)
        35. In Sec. 21.7220, paragraph (b) introductory text is revised, 
    paragraphs (b)(9) and (b)(10) are revised, paragraph (b)(11) is added, 
    and the authority citation for paragraph (b) is revised, to read as 
    follows:
    
    
    Sec. 21.7220  Course approval.
    
    * * * * *
        (b) Course approval criteria. In administering benefits payable 
    under 38 U.S.C. chapter 30, VA and, where appropriate, the State 
    approving agencies, shall apply the following sections.
    * * * * *
        (9) Section 21.4265--Practical training approved as institutional 
    training or on-job training,
        (10) Section 21.4266--Courses offered at subsidiary branches or 
    extensions, 
    
    [[Page 6791]]
    
        (11) Section 21.4267--Approval of independent study.
    
    (Authority: 38 U.S.C. 3034, 3476, 3672, 3675, 3676, 3678, 3679, 
    3680A, 3689)
    * * * * *
        36. In Sec. 21.7222, paragraph (e) and its authority citation are 
    revised, to read as follows:
    
    
    Sec. 21.7222  Courses and enrollments which may not be approved.
    
    * * * * *
        (e) Except as provided in Sec. 21.7120(d), an independent study 
    course which--
        (1) Does not lead to a standard college degree, or
        (2) Is a nonaccredited course.
    
    (Authority: 38 U.S.C. 3676, 3680A)
    
        37. In Sec. 21.7280, paragraph (b)(1) is revised, to read as 
    follows:
    
    
    Sec. 21.7280  Death benefit.
    
    * * * * *
        (b) Necessary criteria for death benefit. * * *
        (1) The individual either--
        (i) Dies while on active duty, or
        (ii) Dies after October 28, 1992, and his or her date of death is 
    within one year after the date of his or her last discharge or release 
    from active duty; and
    * * * * *
    [FR Doc. 96-3780 Filed 2-21-96; 8:45 am]
    BILLING CODE 8320-01-P
    
    

Document Information

Effective Date:
2/22/1996
Published:
02/22/1996
Department:
Veterans Affairs Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-3780
Dates:
This final rule is effective February 22, 1996. However, the restatements of statute and VA's statutory interpretations contained in this final rule will be applied retroactively from the effective dates of the statutory provisions. For more information concerning the application of statutes and statutory interpretations, see the SUPPLEMENTARY INFORMATION section.
Pages:
6780-6791 (12 pages)
RINs:
2900-AG22: Veterans' Education; Implementation of the Veterans' Benefits Act of 1992 and the National Defense Authorization Act for 1993
RIN Links:
https://www.federalregister.gov/regulations/2900-AG22/veterans-education-implementation-of-the-veterans-benefits-act-of-1992-and-the-national-defense-auth
PDF File:
96-3780.pdf
CFR: (35)
38 CFR 21.7042(b)(7)(i)
38 CFR 21.7020(b)(6)(iii)
38 CFR 21.5021(e))
38 CFR 21.705
38 CFR 21.3145
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