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se must

At least one segment is com- beyond the earliest of the following i prior to or during the 9 to 11- dates: ha period.

(1) Two years after the expiration of

the period of eligibility as determined erity: 38 U.S.C. 1682A(e), (repealed,

by $21.3046(a), (b), or (d), or $21.3047; 1. 100-689, section 124(a)))

(2) The date on which the eligible 31764, July 29, 1975, as amended at 44 spouse's or surviving spouse's entitle05, Oct. 31, 1979; 48 FR 37995, Aug. 22, ment is exhausted; or A FR 34984, Aug. 23, 1989; 61 FR 26115,

(3) The date on which the eligible

spouse or surviving spouse completes 501 Eligibility.

the approved program of education

which he or she was pursuing on the General. Any eligible spouse or

date the delimiting period determined ring spouse shall be eligible to re

by $21.3046 (a), (b), or (d), or $21.3047 exan education loan if he or she

pired. the criteria of this section.

(Authority: 38 U.S.C. 3512(f), 3698) rity: 38 U.S.C. 3512(1), 3698)

(d) Exclusions. No eligible spouse or Eligibility criteria. To qualify for

surviving spouse shall be authorized an ucation loan

education loan if he or she has deThe eligible spouse's or surviving e's delimiting period as deter

faulted on a previous education loan

and there is a remaining unliquidated d by $21.3046 (a), (b), or (d), or 147 must have expired;

payment due VA. The eligible spouse or surviving

(Authority: 38 U.S.C. 3512(f), 3698) Hare financial resources that may (61 FR 26115, May 24, 1996, as amended at 62 inably be expected to be expended

FR 51785, Oct. 3, 1997) location needs and which are in

821.4502 Applications. ient to meet the actual costs of dance;

(a) General. An eligible spouse or surExecute a promissory note pay- viving spouse shall make an applicao the Department of Veterans Af- tion for an education loan in the manas provided by $21.4504;

ner prescribed and upon the forms preHave unused entitlement pro- scribed by the Department of Veterans under 38 U.S.C. 3511;

Affairs. The Department of Veterans During the term, quarter, or se

Affairs must receive the application no r for which the loan is granted,

later than the last date of the term, rolled on a full-time basis in pur- quarter, semester, or 6-month period to of the approved program of edu- which all or part of the loan will apply. a in which he or she was enrolled The application shall be certified by be date his or her eligibility ex- the school as to the date required from under $21.3046 (a), (b), or (d), or the school by the Department of VetM7; and

erans Affairs. Have been enrolled in a program ication on a full-time basis

(Authority: 38 U.S.C. 3471) On the date his or her period of

(b) Information. The application shall ility expired under $21.3046 (a),

provide the Department of Veterans (d), or $21.3047; or

Affairs with the following information On the last date of the ordinary and such other information as may be

semester or quarter preceding reasonable upon specific request: late his or her eligibility expired

(1) A statement of nontaxable income $21.3046 (a), (b), or (d), or $21.3047, for the student for the current tax year e delimiting date fell during a

in which the application is received by I break or summer term.

the Department of Veterans Affairs; as

well as a statement of adjusted gross ority: 38 U.S.C. 3512(f), 3698)

income for the student for the current Limitations. The period for which a tax year in which the application for may be granted shall not extend an education loan is received by the

Department of Veterans Affairs less authorized deductions for exemptions, itemized or standard deduction, whichever is greater, and mandatory withholdings such as Federal and State income taxes, social security taxes, etc.

(2) The amount of all funds of the eligible spouse or surviving spouse on hand on the date of the application including cash on hand, money in a bank or savings and loan association account, and certificates of deposit.

(3) The full amount of the tuition for the course to be paid by the eligible spouse or surviving spouse during the period for which the loan is sought.

(4) The amount of reasonably anticipated expenses for room and board to be expended by the eligible spouse or surviving spouse during the period for which the loan is sought, including a reasonable amount, not to exeed 22.5 cents per mile, for commuting normal distances to classes if the student does not reside on campus. Applications may also provide the Department of Veterans Affairs with a statement of the amount of charges for room and board which the school would have made had the school provided the eligible spouse or surviving spouse with room and board. If the school does not provide room and board, the application may provide the Department of Veterans Affairs with a statement of charges for room and board which the eligible spouse or surviving spouse would have received had he or she been provided room and board at the nearest State college or State university which provides room and board.

spouse or surviving spouse,

as in $21.4500(e), which may be rea. expected to be expended for ed needs in any academic year o loan period.

(2) Subtracting the availal sources determined in paragrap of this section from the actual attendance, as defined in $21.450 obtain the net amount by whic exceed the resources available f cation needs. If the available res and the costs are equal, or if sources exceed the costs, no loa be authorized.

(b) Amount. A loan shall be a ized in the amount of the excess over available resources as deter in paragraph (a) of this section s to the following limitations:

(1) If the costs exceed the ava resources by $50 or less no loan sh. granted.

(2) The aggregate of the amount eligible spouse or surviving spous: borrow for an education loan ma exceed $2,500 in any one academic It also may not exceed an amour termined by multiplying the num months of educational assistan which the eligible spouse or surv spouse would be entitled were it ni the expiration of his or her delin period under 38 U.S.C. 3511 times s

(Authority: 38 U.S.C. 3512(1), 3698)

(3) If a student is enrolled in act organized on a term, quarter or se ter basis, no single loan shall be thorized at one time for a period is longer than two consecutive ters. If a student is enrolled in a co not organized on a term, quarter o mester basis, no single loan shal authorized at one time for a pe that is longer than 6 months.

(Authority: 38 U.S.C. 3698(b))

(5) The anticipated reasonable cost of books and supplies required for the courses to be taken during the period for which the loan is sought. [40 FR 31764, July 29, 1975, as amended at 44 FR 62507, Oct. 31, 1979; 48 FR 37996, Aug. 22, 1983; 49 FR 8920, Mar. 9, 1984; 61 FR 26116, May 24, 1996)

$ 21.4503 Determination of loan

amount. (a) General. The amount of the education loan shall be computed by:

(1) Determining the total amount of financial resources of the eligible

(Authority: 38 U.S.C. 3698)

(4) The Department of Veterans fairs shall pay the following maxin amounts for these loan periods:

(i) $1,250 for any semester.

(ii) $830 for any term of 8 week more leading to a standard college gree which is not part of the nor academic year or for a quarter.

(iii) $1660 for two consecutive qu ters.

$270 per month for a course not (ii) For loans of less than $600, 1 year g to a standard college degree if and 7 months after such date for the an 6 months long.

first $50 of the loan plus 1 additional 51660 for a 6-month loan period month for each additional $5 of the on a course not leading to a loan. urd college degree which is 6 or (4) A provision for prepayment of all months long.

or part of the loan, without penalty, at $270 per month for a loan period the option of the borrower. than 6 months based on a course (b) Interest. The promissory note zading to a standard college de- shall advise the student that the loan rhich is 6 or more months long. shall bear interest on the unpaid bal

ance of the loan at a rate comparable rity: 38 U.S.C. 3512(1), 3698(b))

to, but not in excess of, the rate of inlo amount authorized will be paid

terest charged students at such time

on loans insured by the Secretary of Department of Veterans Affairs the eligible spouse or surviving

Education, Department of Education, is certified as being enrolled

under part B of Title IV of the Higher

Education Act of 1965. The rate shall be tually pursuing the course.

determined as of the date the agreeAn eligible spouse or surviving

ment is executed and shall be a fixed may receive more than one loan

amount. ng separate loan periods, subject ragraphs (b)(3) and (b)(7) of this

(Authority: 38 U.S.C. 3698) If the spouse or surviving spouse (c) Security. The loan shall be made material change in economic cir- without security and without endorsetances subsequent to the original ment. cation for a loan, he or she may (d) Default. Whenever VA determines ly for an increase in an author- that a default, in whole or in part, has oan or for a loan, if otherwise occurred on any such loan the eligible led, if no loan was originally spouse or surviving spouse shall be nod. However, the Department of tified that the amount of the default ans Affairs will not decrease or shall be recovered from the eligible e a loan once granted, absent spouse or surviving spouse concerned in the application.

in the same manner as other debt due

the United States. Once a default has 31765, July 29, 1975, as amended at 48 106. Aug. 22, 1983; 49 FR 8439, Mar. 7,

occurred, the eligible spouse's or surI FR 19936, May 13, 1985; 61 FR 26116,

viving spouse's subsequent reentrance 1. 1996)

into training at the half-time or great

er rate shall not be the basis for re504 Promissory note.

scinding the default. A default may General. The agreement by VA to

only be rescinded when VA has been led money pursuant to 38 U.S.C.

to create the default as a result of a D and 3698 to any eligible spouse or

mistake of fact or law. ving spouse shall be in the form of missory note which shall include:

(Authority: 38 U.S.C. 3698 (e)(1)) The full amount of the loan.

(e) Death or disability. If the eligible Agreement to pay a fee not to ex- spouse or surviving spouse dies or be3 percent for an insurance fund comes permanently and totally disist defaults.

abled, even though he or she ceases to A note or other written obligation be permanently and totally disabled iding for repayment of the prin- subsequent to the granting of the loan, amount, and interest on the loan the remaining liability of such person anual installments over a period for an educational loan shall be disining 9 months after the date on charged. b the borrower first ceases to be at (f) Fraud. Material misrepresentation a half-time student and ending: of fact by the eligible spouse or surPor loans of $600 or more, 10 years viving spouse, including emissions of months after such date, or

relevant information, shall render the loan agreement null and void. The de- (iii) The educational ins ferred payment provisions of the agree- elects not to participate in ti ment shall not apply in such a case and gram; or the full amount of any loan balance (iv) There is compelling shall become due and payable imme- that the institution is unable diately. The amount due shall be recov- charge its responsibilities un ered from the eligible spouse or sur- program. viving spouse in the same manner as any other debt due the United States. (Authority: 38 U.S.C. 3512(1), 3698)

(g) Signature. An eligible spouse or (44 FR 62508, Oct. 31, 1979, as amen surviving spouse may sign both the FR 26116, May 24, 1996) loan application and the promissory note required and payment of the

$21.4507 Advertising. amounts authorized will be made to (a) General. No educational such person, notwithstanding his or her tion or training establishment minority, unless the person has a legal clude a statement in advertiser guardian. In such cases the legal guard- brochures intended to solicit s ian must sign and will be paid the loan as to the availability of ed amounts.

loans from the Department of V

Affairs for eligible spouses al (40 FR 31765, July 29, 1975, as amended at 48 FR 37997, Aug. 22, 1983; 52 FR 5963, Feb. 27,

viving spouses, except as prov 1987; 52 FR 7276, Mar. 10, 1987; 61 FR 26116, paragraph (b) of this section. May 24, 1996)

(b) Form. The statement which

mitted shall be as follows: "Cert $21.4505 Check delivery.

gible spouses and surviving i (a) General. Education loans by the may qualify for a maximun Department of Veterans Affairs shall

cational loan of $2,500 per ad be made by a check payable to the eli

year from the Department of V gible spouse or surviving spouse and

Affairs depending upon need. A shall be mailed promptly to the edu

tions for such loans shall be rr cational institution in which the eligi

the Department of Veterans Aff ble spouse or surviving spouse is en

forms prescribed by it." rolled for delivery by the educational

(Authority: 38 U.S.C. 3512(1), 3696, 3698 institution.

[44 FR 62510, Oct. 31, 1979, as amend (b) Delivery and certification. (1) The

FR 26116, May 24, 1996) educational institution, electing to participate in this program, shall de

Subparts F-1-F-3 (Reserv liver an education loan check to the eligible spouse or surviving spouse and shall certify the fact of delivery to the Subpart G-Post-Vietnam Erc Department of Veterans Affairs imme- erans' Educational Assis diately upon delivery. If the delivery is

Under 38 U.S.C. Chapter not made within 30 days after the institution receives the check, it shall re

AUTHORITY: 38 U.S.C. 501(a), chs. 32 turn the check to the Department of less otherwise noted. Veterans Affairs.

SOURCE: 45 FR 31. Jan. 2, 1980, unless (2) The Director of the Department of

wise noted. Veterans Affairs facility of jurisdiction may direct that education loan checks

ADMINISTRATIVE be sent directly to spouses or surviving spouses when:

$21.5001 Administration of benel (i) The educational institution dem

U.S.C. Chapter 32. onstrates an inability to comply with (a) Delegation of authority. Exci these requirements; or

otherwise provided, authority is (ii) The educational institution fails gated to the Under Secretary for to provide adequately for the safe- fits and to supervisory or admin keeping of the checks prior to the de- tive personnel within the jurisdi livery to the student or return to the of the Education Service, Vet Department of Veterans Affairs; or Benefits Administration, designat

him or her to make findings and decisions under 38 U.S.C. Chapter 32 and the applicable regulations, precedents, and instructions, as to the program authorized by subpart G of this part.

(Authority: 38 U.S.C. 512(a))

(b) Administrative provisions. In administering benefits payable under 38 U.S.C. Chapter 32, VA will apply the following sections:

(1) Section 21.4002—Finality of decisions;

(2) Section 21.4003 (except paragraphs (d) and (e)-Revision of decisions; (3) Section 21.4005—Conflicting inter

clude any period during which an individual:

(1) Was assigned full-time by the Armed Forces to a civilian institution for a course of education which was substantially the same as established courses offered to civilians,

(2) Served as a cadet or midshipman at one of the service academies,

(3) Served under the provisions of section 511(d) of Title 10, United States Code, pursuant to an enlistment in the military reserve or national guard,

(4) Served in an excess leave without pay status, or

(5) Served in a status specified in $3.15 of this chapter.


(4) Section 21.4006—False or misleading statements; (5) Section 21.4007–Forfeiture; (6) Section 21.4008—Prevention of overpayments; and

(7) Section 21.4009Overpayments; waiver or recovery.

(Authority: 38 U.S.C. 3202)

(c) State-means each of the several States, territories and possessions of the United States, the District of Columbia, the Commonwealth of Puerto Rico and the Canal Zone.

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(Authority: 38 U.S.C. 101(20))

(d) School, educational institution, institution. The terms, school, educational institution, and institution mean

(1) Any vocational school, business school, correspondence school, junior college, teacher's college, college, normal school, professional school, university or scientific or technical institution;

(2) Any public or private elementary school or secondary school which offers courses for adults; and

(3) An entity, other than an institution of higher learning, that provides training required for completion of a State-approved alternative teacher certification program.


(Authority: 38 U.S.C. 3202(2), 3452(c))

(e) Participant-means a person who is participating in the educational benefits program established under Chapter 32. This includes:

(1) A person who has enrolled in and is making contributions by monthly payroll deduction to the fund.

(2) Those individuals who have contributed to the fund and have not disenrolled (i.e., users or potential users of benefits).

Authority: 38 U.S.C. 3202(1))

(b) Active duty-means full-time duty in the Armed Forces or as a commissioned officer of the regular or Reserve Corps of the Public Health Service or of the National Oceanic and Atmospheric Administration. It does not in

(Authority: 38 U.S.C. 3202)

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