the course on the total of the credit hours and credit-hour equivalency.

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

[31 FR 6774, May 6, 1966, as amended at 32 FR 13407, Sept. 23, 1967; 41 FR 47930, Nov. 1, 1976; 43 FR 35307, Aug. 9, 1978; 43 FR 49982, Oct. 26, 1978; 48 FR 37992, Aug. 22, 1983; 50 FR 21605, May 28, 1985; 51 FR 6412, Feb. 24, 1986; 54 FR 13065, Mar. 30, 1989; 54 FR 33894, Aug. 17, 1989; 61 FR 6784, Feb. 22, 1996]

$21.4273 Collegiate graduate.

(a) In residence. (1) The Department of Veterans Affairs will measure a nonaccredited graduate or advanced professional course (other than a law course) as provided in §21.4272. The Department of Veterans Affairs will measure a nonaccredited law course as stated in §21.4274.

(2) An accredited graduate or advanced professional course, including law as specified in § 21.4274, pursued in residence at an institution of higher learning will be measured in accordance with §21.4272 unless it is the established policy of the school to consider less than 14 semester hours or the equivalent as full-time enrollment, or the course includes research, thesis preparation, or a comparable prescribed activity beyond that normally required for the preparation of ordinary classroom assignments. In either case a responsible official of the school will certify that the veteran or eligible person is pursuing the course full, three-quarter, one-half, less than onehalf but more than one-quarter, or one quarter or less time.

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

(b) In absentia. A responsible official of the school will certify a program of research pursued by a veteran or eligible person in absentia as full, threefourths, one-half, less than one-half but more than one-quarter, or one-quarter or less time, and the activity will be assessed by the Department of Veterans Affairs accordingly when:

(1) The research activity is defined and organized so as to enable the certifying official to evaluate the time required for its successful pursuit, and

(2) The time certified for the research activity is independent of the time devoted to any employment situation in

which the veteran or eligible perso might be engaged.

(c) Undergraduate or combination. If graduate student is enrolled in bot graduate and undergraduate course concurrently, or solely in unde: graduate courses, VA will measur such an enrollment using the prov sions of $21.4272 or the graduat school's assessment of training tim whichever will result in a highe monthly rate for the veteran.

(Authority: 38 U.S.C. 3668(b); Pub. L. 102-56 [31 FR 6774, May 6, 1966, as amended at 31 F 8293, June 14, 1966; 32 FR 4411, Mar. 23, 196 50 FR 21606, May 28, 1985; 61 FR 28755, June 1996]

$21.4274 Law courses.

(a) Accredited. A law course in an ac credited law school leading to a stane ard professional law degree will be a sessed as provided in §21.4273(a).

(b) Nonaccredited. A law course lea ing to a professional law degree, com pletion of which will satisfy State edt cational requirements for admission t legal practice, pursued in a nonaccred ited law school which requires for a mission to the course at least 60 stand ard semester units of credit or th equivalent in quarter units of credit will be assessed on the basis of 12 clas sessions per week for full-time attend ance. If the course does not meet thes requirements it will be assessed on th basis of clock hours of attendance pe week.

[36 FR 18304, Sept. 11, 1971, as amended at 3 FR 19371, July 20, 1973; 41 FR 47931, Nov. 1 1976]

§ 21.4275 Practical training courses

measurement.

(a) Medical and dental residencies an osteopathic internships and residencies VA will measure medical and denta residencies, and osteopathic intern ships and residencies as provided i $21.4270(c) of this part if they are ad credited and approved in accordanc with § 21.4265(a) of this part.

(Authority: 38 U.S.C. 3688(b); Pub. L. 99-576) (b) Nursing courses. (1) Courses for th objective of registered nurse or reg istered professional nurse will be meas ured on the basis of credit hours o

k hours of attendance, whichever is opriate. The clock hours of attendmay include academic class time, ical training, and supervised study ods.

Courses offered by schools which to the objective of practical nurse, tical trained nurse, or licensed tical nurse will be measured on it hours or clock hours of attend+ per week whichever is appro

te.

Medical and dental specialty ses. (1) Medical and dental spety courses offered by a school ther accredited or nonaccredited, 1 be measured on the basis of credit rs or clock hours of attendance, chever is appropriate.

Medical and dental specialty rses offered in hospitals, clinics, oratories or medical centers which accredited by a nationally recoged accrediting agency shall be measd on the basis of clock hours of atdance per week.

D Medical and dental assistants ses for the Department of Veterans rs. Programs approved in accorde with the provisions of § 21.4265(d) be measured on a clock-hour basis appropriate in accordance with 4270, however, the program will be arded as full-time instructional ning: Provided, The combined total the classroom and other formal inaction portion of the program and job-training portion of the program aires 30 or more clock hours of atodance per week.

e) Professional training courses. Nondically related professional training rses, such as the clinical pastoral rse, shall be measured in semester rs of attendance or clock hours of endance per week, whichever is appriate.

Other practical training courses. ese courses will be measured in seEster hours of credit or clock hours of endance per week, whichever is apopriate, if approved under § 21.4265(f).

§21.4265 for approval.)

FR 26684, June 29, 1976, as amended at 43 25429. June 13, 1978; 49 FR 39545, Oct. 9, 4:54 FR 33894, Aug. 17, 1989]

(a) Satisfactory pursuit of program. Entitlement to benefits for a program of education is subject to the requirement that the veteran or eligible person, having commenced the pursuit of such program, continues to maintain satisfactory progress. If the veteran or eligible person does not maintain satisfactory progress, educational benefits will be discontinued by the Department of Veterans Affairs. Progress is unsatisfactory if the veteran or eligible person does not satisfactorily progress according to the regularly prescribed standards and practices of the institution he or she is attending.

(b) Satisfactory conduct. Entitlement to a program of education is subject to the requirement that the veteran or eligible person, having commenced the pursuit of such program, continues to maintain satisfactory conduct in accordance with the regularly prescribed standards and practices of the institution in which he or she is enrolled. If the veteran or eligible person will no longer be retained as a student or will not be readmitted as a student by the institution in which he or she is enrolled, educational benefits will be discontinued, unless further development establishes that the action of the school is of a retaliatory nature. See § 21.4253.

(c) Satisfactory attendance. Entitlement to benefits for a program of education is subject to the requirement that the veteran or eligible person, having commenced the pursuit of such program, continues to maintain satisfactory attendance in accordance with the regularly prescribed standards and practices of the institution in which he or she is enrolled. If the veteran or eligible person will no longer be retained as a student or will not be readmitted as a student by the institution in which he or she is enrolled, educational benefits will be discontinued.

$21.4278 Reentrance after discontinu

ance.

(a) Conditions permitting reentrance after discontinuance. A veteran or eligible person may be reentered following discontinuance because of unsatisfactory conduct, progress or attendance only when either of the following sets of conditions exist:

(1) The veteran or eligible person is resuming enrollment at the same educational institution in the same program of education and the educational institution has

(i) Approved the veteran's or eligible person's reenrollment, and

(ii) Certified it to the Department of Veterans Affairs; or

(2) All of the following exist:

(i) The cause of unsatisfactory conduct, progress or attendance has been removed,

(ii) VA determines that the program which the veteran or eligible person now proposes to pursue is suitable to his or her aptitudes, interests and abilities, and

(iii) If a proposed change of program is involved, the change meets the requirements for approval under

§§ 21.4234, 21.5232, 21.7114 and 21.7614 of this part.

(2) It is the practice of the inst tion to permit a student to pursu part of his or her course by correspo ence in partial fulfillment of the quirements for the attainment of specified objective.

(3) The total credit established correspondence does not exceed maximum for which the institut will grant credit toward the speci objective.

(4) The educational institution of ing the course is accredited by an ag cy recognized by the Secretary of E cation; and

(5) The State approving agency 1 approved the correspondence-reside course and has verified complia with the requirement of 38 U.S 3672(e) and §21.4256(a) that at least percent of those pursuing the c respondence-residence course requ six months or more to complete it. (The information collection requirement: this section have been approved by the Of of Management and Budget under cont number 2900-0575.)

(Authority: 38 U.S.C. 3672(e))

(b) Payment for pursuit of a C respondence-residence program. The ra of educational assistance payable to spouse or surviving spouse under U.S.C. Chapter 35 for the residence p tion of a correspondence-residen course or program shall be computed set forth in §§ 21.3131(a) and 21.4270.

(1) The charges for that portion the course or program pursued exc sively by correspondence will be in a cordance with §21.3131(a) with 1 mon entitlement charged for each $404

cost reimbursed.

(Authority: 38 U.S.C. 3534)

(2) The charges for the residence p tion of the program must be separa from those for the correspondence p tion.

[38 FR 7394, Mar. 21, 1973, as amended at FR 45237, Dec. 31, 1974; 43 FR 35308, Aug. 1978; 50 FR 19936, May 13, 1985; 61 FR 292 June 10, 1996; 62 FR 63850, Dec. 3, 1997] $21.4280 [Reserved]

Subpart E [Reserved]

Subpart F-Education Loans

THORITY: 38 U.S.C. 501, 3537, 3698, 3699, ss otherwise noted.

4500 Definitions.

General. These definitions shall be cable for subpart F of part 21.

Education loan. A loan made by Department of Veterans Affairs to aligible spouse or surviving spouse suant to 38 U.S.C. 3512(f) and 3698. ) Academic year. The 9 month period Ly from August or September to or June, which includes generally semesters or three quarters.

} Loan period. (1) The Department Veterans Affairs will make loans nally for a quarter, semester, sumterm or two consecutive quarters. The Department of Veterans Afmay grant a loan to an eligible ise or surviving spouse attending a rse not organized on a term, quaror semester basis if the course reres at least 6 months at the fulle rate to complete. A loan will be ited for not more than 6 months at ne.

ority: 38 U.S.C. 3512(f), 3698)

The Director of the Department of rans Affairs facility of jurisdiction waive the requirement that such a se must take at least 6 months to plete. Such a waiver of the length le course shall be granted by the ctor only if a school requests one A course and the Director finds

During the previous 2 years at t 75 percent of the students ened in the course completed it.

) During the previous 2 years at 75 percent of the persons coming the course found employment e occupational category for which course is designed to provide train

The default rate on all Departt of Veterans Affairs education s ever made to students at the eduonal institution does not exceed 5 ent or 5 cases, whichever is great

The default rate on all loans ever e to students pursuant to loan proas administered by the Department

of Education does not exceed 5 percent or five cases, whichever is greater.

(E) The course is at least 3 months long.

(F) The course is approved for fulltime attendance only.

(G) No more than 35 percent of the students attending the course are receiving educational assistance from the Department of Veterans Affairs.

(H) The Field Director for the region in which the Department of Veterans Affairs facility is located concurs in the waiver.

(ii) If a school disagrees with a decision of a Director of a Department of Veterans Affairs facility, it may, within 1 year from the date of the letter from the Director informing the school of the decision, request that the decision be reviewed by the Director, Education Service. The Director of the Department of Veterans Affairs facility shall forward all requests to the Director, Education Service, who shall consider all evidence submitted by the school. He or she has the authority to affirm or reverse a decision of a Department of Veterans Affairs facility, but shall not grant a waiver if the requirements of paragraph (d)(2)(i) of this section are not met.

(iii) A waiver will remain in effect until the date on which the course fails to meet one of the requirements of paragraph (d)(2)(i) of this section. A school which has received a waiver for a course must notify the Director of the Department of Veterans Affairs facility of jurisdiction within 30 days of the date on which one of those requirements is not met.

(Authority: 38 U.S.C. 3512(f), 3698(c))

(e) Total amount of financial resources. This term means the total of the following:

(1) The annual adjusted effective income of the eligible spouse or surviving spouse, less Federal income taxes paid or payable by the veteran or other eligible person with respect to such income, as described in paragraph (h) of this section.

(2) The amount of cash assets of the eligible spouse or surviving spouse, as described in § 21.4502(b)(2).

(3) The amount of financial assistance received by the eligible spouse or

surviving spouse under the provisions of Title IV of the Higher Education Act of 1965, as amended.

(4) Educational assistance received or receivable for the loan period by the eligible spouse or surviving spouse under 38 U.S.C. chapter 35. This amount shall be exclusive of an education loan.

(5) Financial assistance received by the eligible spouse or surviving spouse under any scholarship or grant other than the one specified in paragraph (e)(3) of this section.

(6) Department of Veterans Affairs work-study allowance received or receivable by the eligible spouse or surviving spouse under 38 U.S.C.3537.

(f) Actual cost of attendance. The term actual cost of attendance means: (1) The actual charge per student for tuition, fees, and books;

(2) An allowance for commuting (this allowance will be based on 22.5¢ per mile for distances not exceeding normal commuting distance);

(3) An allowance for other expenses reasonably related to attendance at the institution at which the eligible spouse or surviving spouse is enrolled; and

(4) A room and board allowance that shall be determined as follows:

(i) If the educational institution actually provides the eligible spouse or surviving spouse with room and board, the allowance shall equal the actual charges to him or her for room and board;

(ii) If the educational institution provides some students with room and board, but does not provide room and board for the eligible spouse or surviving spouse, the room and board allowance shall equal either the actual expenses incurred by the eligible spouse or surviving spouse for room and board, or the amount for room and board that the educational institution would have charged the eligible spouse or surviving spouse, had the educational institution provided him or her with room and board, whichever is less; and

(iii) If the educational institution does not provide any students with room and board, the room and board allowance shall equal either the actual expenses incurred by the eligible spouse or surviving spouse for room and board or the amount the eligible

spouse or surviving spouse would ha been charged for room and board h he or she been provided room and boa by the nearest State college or Sta university that provides room al board, whichever is less.

(g) Loan fee. This shall be a fee c lected by discounting the amount any loan granted to an eligible spou or surviving spouse by an appropria amount. The fee shall be collected f each separate loan authorized. T amount of the fee shall be 3 percent the total loan amount.

(h) Annual adjusted effective incom This income shall include:

(1) Nontaxable income for the st dent only for the current tax year i which the application for the educatic loan is received by the Department Veterans Affairs. This includes incon from sources such as Department Veterans Affairs compensation pension, disability retirement, uner ployment compensation, welfare pa ments, social security benefits, etc.

al

(2) Adjusted gross income (wages, sa ary, dividends, interest, rental, bus ness, etc.) for the student only for th current tax year in which the applic tion for the education loan is receive by the Department of Veterans Affair less:

(i) Authorized deductions for exem tions;

(ii) Itemized or standard deduction whichever is greater;

(iii) Mandatory withholdings such a Federal and State income taxes, socia security taxes, etc.

(Authority: 38 U.S.C. 3512(f), 3698(b))

(i) School term. This phrase means: (1) In the case of an institution higher learning operating on a quarte system, three consecutive quarter within an ordinary school year;

(2) In the case of an institution higher learning operating on a seme ter system, two consecutive semester within an ordinary school year; or

(3) In the case of an educational in stitution not an institution of highe learning or in the case of an institutio of higher learning not operating on quarter or semester system, a period 9 to 11 months provided:

(i) The program of education is d vided into segments, and