be resolved in accordance with the disputes article of the contract and with appropriate procurement regulations.

(Authority: 41 U.S.C. 602)

[31 FR 6774, May 6, 1966, as amended at 40 FR 42880, Sept. 17, 1975; 43 FR 35296, Aug. 9, 1978; 44 FR 62498, Oct. 31, 1979; 48 FR 37983, Aug. 22, 1983; 51 FR 16316, May 2, 1986; 54 FR 49757, Dec. 1, 1989; 61 FR 20728, May 8, 1996; 61 FR 26114, May 24, 1996]

$21.4154 Report of activities.

(a) State approving agencies must report their activities. Each State approving agency entering into a contract or agreement under §21.4153 of this part must submit a report of its activities to VA. The report may be submitted monthly or quarterly by the State approving agency as provided in the contract or agreement.

(Authority: 38 U.S.C. 3674; Pub. L. 100-323)

(b) Content of the report. The report: (1) Shall be in the form prescribed by the Secretary;

(2) Shall detail the activities of the State approving agencies under the agreement or contract during the preceding month or quarter, as appropriate;

(3) May include, at the option of the State approving agency, a cumulative report of its activities from the beginning of the fiscal year to date;

(4) Shall describe the services performed and the determination made in supervising and ascertaining the qualifications of educational institutions in connection with the programs of the Department of Veterans Affairs; and

(5) Shall include other information as the Secretary may prescribe.

(Authority: 38 U.S.C. 3674A; Pub.

(c) Development, adoption a tion of qualification and standards for employees of St ing agencies. (1) VA shall:

(i) Develop with the State agencies prototype qualifi performance standards;

(ii) Prescribe those sta State approving agency use velopment of qualification formance standards for Sta ing agency personnel carryi proval responsibilities under or agreement as provided in of this part; and

(iii) Review the prototype tion and performance stan the State approving agenci frequently than once every f

(2) In developing and appl ards described in paragrap this section, a State approv may take into consider State's merit system require other local requirements tions. However, no State agency may develop, adop qualification or performance

that do not meet the requirements of paragraph (d)(3) of this section.

(3) The qualification and performance standards adopted by the State approving agency shall describe a level of qualification and performance which shall equal or exceed the level of qualification and performance described in the prototype qualification and performance standards developed by VA with the State approving agencies. The State approving agency may amend or modify its adopted qualification and performance standards annually as circumstances may require.

(4) VA shall provide assistance in developing these standards to a State approving agency that requests it.

4 (5) After November 19, 1989, each State approving agency carrying out a contract or agreement with VA under $21.4153(a) shall:

(i) Apply qualification and performance standards based on the standards developed under this paragraph, and

(ii) Make available to any person, upon request, the criteria used to carry out its functions under a contract or agreement entered into under

(5) Any entity during the period beginning on November 2, 1994, and ending on September 30, 1996, other than an institution of higher learning, that provides training for completion of a State-approved alternative teacher certification program.

(Authority: 38 U.S.C. 3452)

(b) Divisions of the school year. (1) Ordinary School Year is generally a period of 2 semesters or 3 quarters which is not less than 30 nor more than 39 weeks in total length.

(2) Term, any regularly established division of the ordinary school year under which the school operates.

(3) Quarter, a division of the ordinary school year, usually a period from 10 to 13 weeks long.

(4) Semester, a division of the ordinary school year, usually a period from 15 to 19 weeks long.

(5) Summer term, the whole of the period of instruction at a school which takes place between ordinary school years. A summer term may be divided into several summer sessions.

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

(6) Summer session, any division of a summer term.

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

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

(38 U.S.C. 3452(e), 3501(a)(9))

(d) External degree. This term means a standard college degree given by an accredited college or university based on satisfactory completion of a prescribed program of independent study. The program may require occasional attendance for a workshop or seminar and

may include some regular residence course work.

(e) Standard college degree. The term means an associate or higher degree awarded by:

(1) An institution of higher learning that is accredited as a collegiate institution by a recognized regional or national accrediting agency; or

(2) An institution of higher learning that is a candidate for accreditation, as that term is used by the regional or the national accrediting agencies; or

(3) An institution of higher learning upon completion of a course which is accredited by an agency recognized to accredit specialized degree-level programs.

(Authority: 38 U.S.C. 3452)

(f) Undergraduate college degree. The term means a college or university degree obtained through the pursuit of unit subjects which are below the graduate level. Included are associate degrees, bachelors' degrees and first professional degrees.

(g) Standard class session. The term standard class session means the time an educational institution schedules for class each week in a regular quarter or semester for one quarter or one semester hour of credit. It is not less than 1 hour (or one 50-minute period) of academic instruction, 2 hours (or two 50minute periods) of laboratory instruction, or 3 hours (or three 50-minute periods) of workshop training.

(Authority: 38 U.S.C. 3688(c))

(h) Institution of higher learning. This term means:

(1) A college, university, or similar institution, including a technical or business school, offering postsecondary level academic instruction that leads to an associate or higher degree if the school is empowered by the appropriate State education authority under State law to grant an associate or higher degree.

(2) When there is no State law to authorize the granting of a degree, a school which:

(i) Is accredited for degree programs by a recognized accrediting agency, or (ii) Is a recognized candidate for accreditation as a degree-granting school by one of the national or regional ac

crediting associations and has been li censed or chartered by the appropriate State authority as a degree-granting institution.

(3) A hospital offering medical-denta internships or residencies approved in accordance with §21.4265(a) without re gard to whether the hospital grants a post-secondary degree.

(4) An educational institution which (i) Is not located in a State,

(ii) Offers a course leading to a stand ard college degree or the equivalent and

(iii) Is recognized as an institution o higher learning by the secretary o education (or comparable official) of the country in which the educationa institution is located.

(Authority: 38 U.S.C. 3452)

(i) Audited course. The term means any credit course which a student at tends as a listener only with a prior understanding between school officials and the student that such attendance will not result in credit being granted toward graduation. See § 21.4252(i).

(Authority: 38 U.S.C. 3680(a)(3))

(j) Nonpunitive grade. The term means any grade assigned for pursuit of a course, whether upon completion of the course or at the time of withdrawal from the course, which has the effect of excluding the course from any consideration in determining progress toward fulfillment of requirements for graduation. No credit toward the school's requirements for graduation is granted for such a grade, nor does the grade affect any other criteria for graduation by the policies of the school, such as a grade point average. Therefore, it has the same effect as an audited course. See §21.4135(e).

(k) Punitive grade. The term means a grade assigned for pursuit of a course which is used in determining the student's overall progress toward completion of the school's requirements for graduation. Unlike the nonpunitive grade, the punitive grade does affect the criteria to be met by the student for graduation, i.e., it is a factor in computing the student's grade average or grade point average, for example. For this reason it is not the same as an

audited course, since it does have an effect upon the student's ability to meet the school's criteria for graduation. See §21.4135(e).

(1) Drop-add period. The term means a reasonably brief period at the beginning of a term, not to exceed 30 days, officially designated by a school for unrestricted enrollment changes by students.

Authority: 38 U.S.C. 3680(a)(4))

a

(m) Normal commuting distance. Two locations that are within 55 miles of each other are within normal commuting distance. Furthermore, branch, extension or additional facility of a school located more than 55 miles from the school's main campus or parent facility will be considered within Dormal commuting distance only if:

(1) School records show that, prior to the establishment of the additional teaching site, at least 20 students or 5 percent of the enrollment, whichever is the lesser, on the main campus or parent facility were regularly commuting from the area where the additional

teaching site is located; or (2) Other comparable evidence clearly shows that students commute regularly between the two locations.

Authority: 38 U.S.C. 3689(c))

(n) Enrollment. This term means the state of being on that roll, or file of a school which contains the names of active students.

10) Pursuit of a program of education. This term means to work, while enrolled, toward the objective of a proFram of education. This work must be in accordance with approved institution policy and regulations and applicable criteria of Title 38 U.S.C.; must be necessary to reach the program's objective; and must be accomplished through:

(i) Resident courses,

(ii) Independent study courses, (iii) Correspondence courses,

(iv) An apprenticeship or other onthe-job training program,

(v) Flight courses,

(vi) A farm cooperative course, (vii) A cooperative course, or (viii) A graduate program of research in absentia.

(2) The Department of Veterans Affairs will consider a veteran or eligible person who qualifies under §21.4138 for payment during an interval or school closing, or who qualifies under § 21.4205 for payment during a holiday vacation to be in pursuit of a program of education during the interval, school closing or holiday vacation.

(p) Enrollment period. (1) This term means an interval of time during which a veteran or eligible person:

(i) Is enrolled in an educational institution; and

(ii) Is pursuing his or her program of education.

(2) This term applies to each unit course or subject in the veteran's or eligible person's program of education.

(q) Attendance. This term means the presence of a veteran or eligible per

son:

(1) In the class where the approved course is being taught in which he or she is enrolled;

(2) At a training establishment; or

(3) Any other place of instruction, training or study designated by the educational institution or training establishment where the veteran or eligible person is enrolled and is pursuing a program of education.

(Authority: 38 U.S.C. 3680(g))

(r) In residence on a standard quarteror semester-hour basis. This term means study at a site or campus of a college or university, or off-campus at an official resident center, requiring pursuit of regularly scheduled weekly class instruction at the rate of one standard class session per week throughout a standard quarter or semester for one quarter- or one semester-hour credit.

(Authority: 38 U.S.C. 3688(c))

(s) Deficiency course. This term means any secondary level course or subject not previously completed satisfactorily which is specifically required for pursuit of a post-secondary program of education.

(t) Remedial course. This term means a special course designed to overcome a deficiency at the elementary or secondary level in a particular area of study, or a handicap, such as in speech.

(3) Is legally authorized to offer program of education in the St. where the educational institution physically located.

(Authority: 38 U.S.C. 3680A(e))

[31 FR 6774, May 6, 1966]

EDITORIAL NOTE: For FEDERAL REGISTER tations affecting §21.4200, see the List of ( Sections Affected, which appears in Finding Aids section of the printed volt and on GPO Access.

$21.4201 Restrictions on enrollme percentage of students receiving nancial support.

(a) General. Except as otherwise p vided in this section the Department Veterans Affairs shall not approve enrollment in any course for an el ble veteran, not already enrolled, any period during which more than percent of the students enrolled in course are having all or part of th tuition, fees or other charges paid them by the educational institution by the Department of Veterans Affi pursuant to Title 38 U.S.C. This striction may be waived in whole or part.

(Authority: 38 U.S.C. 3473(d))

(b) Affected schools. The requireme of paragraph (a) of this section apply all courses not otherwise exempt waived offered by all educational ins tutions, regardless of whether the stitution is degree-granting, prop etary profit, proprietary nonprofit, eemosynary, public and/or tax-st ported.

(c) Affected courses. (1) The follow! courses or programs are exempt fr the requirements of paragraph (a) this section:

(i) Any farm cooperative course: a (ii) Any course offered by a fly club established, organized and op ated pursuant to regulations of a mi tary department of the Armed Forc as nonappropriated sundry fund activiti which are governmental instrumenta ities.

(2) The provisions of paragraph (a) this section apply to the enrollment a serviceperson in a course leading to high school diploma, equivalen cerificate, or a refresher, remedial deficiency course, but they do n