Custom Federal Regulations Service™

This is supplemental material

for Book G of your set of

Federal Regulations

Title 38, Part 21

Vocational Rehabilitation and Education

Veterans Benefits Administration

Supplement No. 76

Covering period of Federal Register issues

through August 3, 2007

Copyright © 2007 Jonathan Publishing

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GENERAL INSTRUCTIONS

Custom Federal Regulations Service™

Supplemental Materials for Book G

Code of Federal Regulations

Title 38, Part 21

Vocational Rehabilitation and Education

Veterans Benefits Administration

Supplement No. 76

5 August 2007

Covering the period of Federal Register issues

through August 3, 2007

When Book G was originally prepared, it was current through final regulations published in the Federal Register of 25 February 1992. These supplemental materials are designed to keep your regulations up to date. You should file the attached pages immediately, and record the fact that you did so on the Supplement Filing Record which is at page G-8 of Book G, Vocational Rehabilitation and Education.

To ensure accuracy and timeliness of your materials,

it is important that you follow these simple procedures:

1. Always file your supplemental materials immediately upon receipt.

2. Before filing, always check the Supplement Filing Record (page G-8) to be sure that all prior supplements have been filed. If you are missing any supplements, contact the Veterans Benefits Administration at the address listed on page G-2.

3. After filing, enter the relevant information on the Supplement Filing Record sheet (page G-8)—the date filed, name/initials of filer, and date through which the Federal Register is covered.

4. If as a result of a failure to file, or an undelivered supplement, you have more than one supplement to file at a time, be certain to file them in chronological order, lower number first.

5. Always retain the filing instructions (simply insert them at the back of the book) as a backup record of filing and for reference in case of a filing error.

6. Be certain that you permanently discard any pages indicated for removal in the filing instructions in order to avoid confusion later.

To execute the filing instructions, simply remove and throw away the pages listed under Remove These Old Pages, and replace them in each case with the corresponding pages from this supplement listed under Add These New Pages. Occasionally new pages will be added without removal of any old material (reflecting new regulations), and occasionally old pages will be removed without addition of any new material (reflecting rescinded regulations)—in these cases the word None will appear in the appropriate column.

FILING INSTRUCTIONS

Book G, Supplement No. 76

August 5, 2007


Remove these Add these Section(s)

old pages new pages Affected

Do not file this supplement until you confirm that all prior supplements have been filed

21.7500-1 to 21.7500-2 21.7500-1 to 21.7500-2 Authority citation

21.7635-2 to 21.7639-1 21.7635-2 to 21.7639-1 §§21.7635–21.7636

21.7640-2 to 21.7642-1 21.7640-2 to 21.7642-1 §21.7640

Be sure to complete the

Supplement Filing Record (page G-8)

when you have finished filing this material.

HIGHLIGHTS

Book G, Supplement No. 76

August 5, 2007

Supplement Highlights references: Where substantive changes are made in the text of regulations, the paragraphs of Highlights sections are cited at the end of the relevant section of text. Thus, if you are reading §3.263, you will see a note at the end of that section which reads: “Supplement Highlights references—6(2).” This means that paragraph 2 of the Highlights section in Supplement No. 6 contains information about the changes made in §3.263. By keeping and filing the Highlights sections, you will have a reference source explaining all substantive changes in the text of the regulations.

Supplement frequency: This Book G (Rehabilitation and Education) was originally supplemented six times a year, in February, April, June, August, October, and December. Beginning 1 August 1995, supplements will be issued every month during which a final rule addition or modification is made to the parts of Title 38 covered by this book. Supplements will be numbered consecutively as issued.

Modifications in this supplement include the following:

1. On 19 July 2007, the VA published a final rule, effective that same date, to increase the monthly rates of basic educational assistance payable under the Montgomery GI Bill–Selected Reserve program for fiscal years 2005 and 2006 in accordance with statutory requirements, increase the percentage of basic educational assistance payable to reservists pursuing apprenticeship or other on-the-job training in accordance with the Veterans Benefits Act of 2004, and remove obsolete education break-pay provisions. Changes:

· In §21.7635, revised paragraph (c)(3);

· In §21.7636, revised paragraphs (a)(1), (a)(2)(i), and (a)(3); and

· In §21.7640, revised paragraph (b).

G76–XXX

21.7500-XXX §21.7500—Establishment and purpose of educational assistance program 21.7500-XXX

Subpart L—Educational Assistance for Members

of the Selected Reserve

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

Source: 53 FR 34740, Sept. 8, 1988, unless otherwise noted.

21.7500 Establishment and purpose of educational assistance program 21.7500-1

Definitions

21.7520 Definitions 21.7520-1

Claims and applications

21.7530 Applications, claims and time limits 21.7530-1

Eligibility

21.7540 Eligibility for educational assistance 21.7540-1

21.7550 Ending dates of eligibility 21.7550-1

21.7551 Extended period of eligibility 21.7551-1

Entitlement

21.7570 Entitlement 21.7570-1

21.7576 Entitlement charges 21.7576-1

Counseling

21.7600 Counseling 21.7600-1

21.7603 Travel expenses 21.7603-1

Programs of education

21.7610 Selection of a program of education 21.7610-1

21.7612 Programs of education combining two or more types of courses 21.7612-1

21.7614 Changes of program 21.7614-1

Courses

21.7620 Courses included in programs of education 21.7620-1

21.7622 Courses precluded 21.7622-1

21.7624 Overcharges and restrictions on enrollment 21.7624-1

Payments–educational assistance

21.7630 Educational assistance 21.7630-1

21.7631 Commencing dates 21.7631-1

21.7633 Suspension or discontinuance of payments 21.7633-1

21.7635 Discontinuance dates 21.7635-1

21.7636 Rates of payment 21.7636-1

21.7639 Conditions which result in reduced rates or no payment 21.7639-1

21.7640 Release of payments 21.7640-1

21.7642 Nonduplication of educational assistance 21.7642-1

21.7644 Overpayments 21.7644-1

Pursuit of courses and required reports

21.7650 Pursuit 21.7650-1

21.7652 Certifications of enrollment and verification of pursuit 21.7652-1

21.7653 Progress, conduct, and attendance 21.7653-1

21.7654 Pursuit and absences 21.7654-1

21.7656 Other required reports 21.7656-1

21.7658 False, late or missing reports 21.7658-1

21.7659 Reporting fee 21.7659-1

Course assessment

21.7670 Measurement of courses leading to a standard,

undergraduate college degree 21.7670-1

21.7672 Measurement of courses not leading to a standard college degree 21.7672-1

21.7673 Measurement of concurrent enrollment 21.7673-1

21.7674 Measurement of practical training courses 21.7674-1

State approving agencies

21.7700 State approving agencies 21.7700-1

Approval of courses

21.7720 Course approval 21.7720-1

21.7722 Courses and enrollments which may not be approved 21.7722-1

Administrative

21.7801 Delegation of authority 21.7801-1

21.7802 Finality of decisions 21.7802-1

21.7803 Revision of decisions 21.7803-1

21.7805 Conflicting interests 21.7805-1

21.7807 Examination of records 21.7807-1

(No. 76 8/5/07)

21.7635-XXX §21.7635—Discontinuance dates 21.7635-XXX

(c) Reduction in the rate of pursuit of the course. If the reservist reduces the rate of training by withdrawing from part of a course, but continues training in part of the course, the provisions of this paragraph apply.

(1) If the reduction in the rate of training occurs other than on the first date of the term, VA will reduce the reservist’s educational assistance effective on the date the reduction occurred when:

(i) A nonpunitive grade is assigned for the part of the course from which he or she withdraws, and

(A) The reservist withdraws because he or she is ordered to active duty, or

(B) The withdrawal occurs with mitigating circumstances; or

(ii) A punitive grade is assigned for the part of the course from which the reservist 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) The reservist:

(A) Receives a nonpunitive grade for the part of the course from which he or she withdraws, and

(B) Withdraws without mitigating circumstances, and

(C) Does not withdraw because he or she is ordered to active duty. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3680(a); Pub. L. 102-127) (Aug. 1, 1990)

(3) A reservist, who enrolls in several subjects and reduces his or her rate of pursuit by completing one or more of them while continuing training in the others, may receive an interval payment based on the subjects completed if the requirements of §21.4138(f) are met. If those requirements are not met, VA will reduce the reservist’s educational assistance effective the date the subject or subjects were completed. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3680; Pub. L. 98-525, Pub. L. 100-689) [Paragraph (c) is effective retroactively to Nov. 18, 1988]

(d) Nonpunitive grade.

(1) If the reservist receives a nonpunitive grade in a particular course, for any reason other than a withdrawal from it, VA will reduce his or her educational assistance effective the first date of enrollment for the term in which the grade applies when no mitigating circumstances are found.

(2) If the reservist receives a nonpunitive grade for a particular course for any reason other than a withdrawal from it, VA will reduce the reservist’s educational assistance effective the last date of attendance when mitigating circumstances are found. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3680; Pub. L. 98-525, Pub. L. 100-689) (Nov. 18, 1988) [Paragraph (d) is effective retroactively to Nov. 18, 1988]

(e) Discontinued by VA. If VA discontinues payment to a reservist following the procedures stated in §21.4211(d) and (g), the date of discontinuance of payment of educational assistance will be:

(1) The date on which payments first were suspended by the Director of a VA facility as provided in §21.4210, if the discontinuance was preceded by suspension.

(2) The end of the month in which the decision to discontinue, made by VA under §21.7633 or §21.4211(d) and (g), is effective, if the Director of a VA facility did not suspend payments before the discontinuance. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3690; Pub. L. 98-525)

(f) Disapproved by State approving agency. If a State approving agency disapproves a course in which a reservist is enrolled, the date of discontinuance of payment of educational assistance will be:

(1) The date on which payments first were suspended by the Director of a VA facility as provided in §21.4210 if disapproval was preceded by such a suspension.

(2) The end of the month in which disapproval is effective or VA receives notice of the disapproval, whichever is later, provided that the Director of a VA facility did not suspend payments before the disapproval. (Authority: 10 U.S.C. 16131(b), 38 U.S.C. 3672(a), 3690; Pub. L. 98-525)

(g) Disapproval by VA. If VA disapproves a course in which a reservist is enrolled, the effective date of discontinuance of payment of educational assistance will be:

(1) The date on which the Director of a VA facility first suspended payments, as provided in §21.4210, if such a suspension preceded the disapproval.

(2) The end of the month in which the disapproval occurred, provided that the Director of a VA facility did not suspend payments before the disapproval. (Authority: 10 U.S.C. 16131(b), 38 U.S.C. 3671(b), 3672(a), 3690; Pub. L. 98-525)

(h) Unsatisfactory progress. If a reservist’s progress is unsatisfactory, his or her educational assistance shall be discontinued effective the earlier of the following:

(1) The date the educational institution discontinues the reservist’s enrollment, or

(2) The date on which the reservist’s progress becomes unsatisfactory according to the educational institution’s regularly established standards of progress. (Authority: 10 U.S.C. 16131(b), 38 U.S.C. 3474; Pub. L. 98-525)

(i) False or misleading statements. If educational assistance is paid as the result of false or misleading statements, see §21.7658 of this part. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3690; Pub. L. 98-525)

(j) Conflicting interests (not waived). If an institution of higher learning and VA have conflicting interests as provided in §21.4005 and §21.7805 of this part, and VA does not grant the waiver, the date of discontinuance shall be 30 days after the date of the letter notifying the reservist. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3683; Pub. L. 98-525)

(k) Incarceration in prison or penal institution for conviction of a felony.

(1) The provisions of this paragraph apply to a reservist whose educational assistance must be discontinued or who becomes restricted to payment of educational assistance at a reduced rate under §21.7639(d) of this part.

(2) The reduced rate or discontinuance will be effective the latest of the following dates:

(i) The first day on which all or part of the reservist’s tuition and fees were paid by a Federal, State or local program,

(ii) The date the reservist is incarcerated in prison or penal institution, or

(iii) The commencing date of the award as determined by §21.7631 of this part. (Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3482(g); Pub. L. 98-525)

(l) Exhaustion of entitlement. If a reservist exhausts his or her 36 months of entitlement, the discontinuance date shall be the date the entitlement is exhausted. (Authority: 10 U.S.C. 16131(c); Pub. L. 98-525)

(m) End of eligibility period. If the reservist’s eligibility period ends while the reservist is receiving educational assistance, the date of discontinuance shall be the date on which eligibility ends as determined by §21.7550 and §21.7551 of this part. (Authority: 10 U.S.C. 16133; Pub. L. 98-525)

(n) Required certifications not received after certification of enrollment.

(1) If VA does not timely receive a required certification of attendance for a reservist enrolled in a course not leading to a standard college degree, VA will terminate payments effective the last date of the last period for which a certification of the reservist’s attendance was received. If VA later receives the certification, VA will make any adjustment on the basis of facts found.