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(e) Application of sections to this portion of the pilot program. (1) The following sections apply to this portion of the pilot program with amendments as noted:

(i) In $21.5021(e) a participant includes someone whose contributions are being made by the Secretary of Defense.

(ii) In $21.5052(b) the Secretary of Defense may make contributions to the fund and may designate the amount of the contribution.

(iii) In $21.5052(d) the Secretary of Defense may increase or decrease the amount of the contribution.

(iv) In $821.5064 and 21.5065 monthly contributions made by the Secretary of Defense will be returned to him or her instead of being refunded to the veteran.

(v) In $21.5071 the Department of Veterans Affairs will also credit the individual with 1 month of entitlement for each month the Secretary of Defense contributes to the fund on his or her behalf.

(vi) In $21.5138 the references to the individual's contributions include those contributions made on the individual's behalf by the Secretary of Defense.

(2) Except as amended in paragraph (e)(1) of this section $$21.5001 through 21.5041 and S$21.5050 through 21.5270 apply without change to this portion of the pilot program. See $21.5296.

(Authority: Pub. L., 96–342, sec. 903; 38 U.S.C. 3232, 3698(a)(2); Pub. L. 97-35, Pub. L. 99-576)

[47 FR 51747, Nov. 17, 1982, as amended at 49 FR 2109, Jan. 18, 1984; 53 FR 34499, Sept. 7, 1988; 61 FR 29030, June 7, 1996]

$21.5294 Transfer of entitlement.

(a) Qualifying for a transfer of entitlement. Some participants may transfer their entitlement to their spouse or child. To qualify for this portion of the pilot program the individual must:

(1) After June 30, 1981 and before October 1, 1981, reenlist in the Army;

(2) Be a participant;

(3) Possess a critical military specialty as determined by the Secretary of Defense; and

ributions. To qualify for this porof the pilot program the individual

Enlist or reenlist in the Army, 1, Air Force or Marine Corps after mber 30, 1980, and before October 11; Elect or have elected to particiin the Post-Vietnam Era Edunal Assistance Program; and Be chosen for the pilot program he Secretary of Defense or his or esignee.

ority: Sec. 903 Pub. L. 96-342, 94 Stat.

Monthly contributions made by the tary of Defense. (1) The Secretary fense may pay $75 per month as sonthly contribution otherwise red under $21.5052(b) for an indidescribed in paragraph (a) of jection. The individual will not be red to make a contribution for any h to the extent that the contribuotherwise required by $21.5052(b) at month is paid by the Secretary fense. The amount paid by the Secretary efense shall be deposited in the

ority: Sec. 903, Pub. L. 96-342; 94 Stat.

Restrictions on monthly contribui The Secretary of Defense may make a payment under the pilot ram on behalf of any person for month: Before the month in which the in enlisted or reenlisted in the 5. Navy, Air Force or Marine B, or Before December 1980.

hority: Sec. 903, Pub. L. 96-342, 94 Stat.

Refunds. If an individual particing in the pilot program disenrolls, monthly contributions made by Secretary of Defense will be reled to the Secretary of Defense ler than refunded to the individual.

hority: Sec. 903, Pub. L. 96–342; 94 Stat. )

(4) Be chosen for his portion of the pilot program by the Secretary of Defense or his or her designee.

(Authority: Sec. 903, Pub. L. 96 342; 94 Stat. 1115)

(ii) The ending date of the parti pant's eligibility as determined und $21.5041;

(iii) The ending date specified $ 21.4135;

(iv) The date of the death of the pa ticipant on whom the spouse's child's entitlement is based;

(v) The last day of the period auth ized by the participant for the trans of entitlement.

(b) Persons who may receive transferred entitlement. An individual meeting the requirements of paragraph (a) of this section may transfer entitlement earned under $21.5071 for the purpose of allowing another person to receive educational assistance allowance. Entitlement may be transferred only:

(1) To a spouse or child of the participant,

(2) To one person at a time,

(3) If the participant is not receiving educational assistance allowance, and

(4) When the participant states in writing to the Department of Veterans Affairs that the entitlement should be transferred.

(Authority: Sec. 903, Pub. L. 96–342, 94 St 1115)

(d) Application of VA regulations to t portion of the pilot program.

(1) Sections 21.5030 (a) and (b), 21.50 21.5041 and 21.5050 through 21.5067 a $21.5145 apply to the individual who participating in this portion of t pilot program, but they do not apply the individual's spouse or child, per

(Authority: Sec. 903(c), Pub. L. 96-342, 94 Stat. 1115)

(c) Educational assistance allowance. (1) The individual must specify in writing to the Department of Veterans Affairs the period of time he or she wishes the spouse or child to receive educational assistance allowance on the basis of the transfer of entitlement. The Department of Veterans Affairs will not pay educational assistance allowance to a spouse or child for training completed either before or after the period specified by the participant.

(2) The commencing date of an award of educational assistance allowance to a spouse or child will be the earlier of the following dates:

(i) The date of the spouse's or child's entrance or reentrance under $21.4131;

(ii) The first day of the period authorized by the participant for the transfer of entitlement.

(3) The ending date of an award of educational assistance allowance to a spouse or child will be the earliest of the following dates:

(i) The ending date of the spouse's or child's course or period of enrollment as certified by the school or training establishment;

(Authority: Pub. L. 96-342, sec. 903; Pub. 99_576)

(2) The following sections apply this portion of the pilot program w amendments as noted:

(i) In $21.5022 the entitlement used the spouse or child counts toward 1 48-month limitation on receiving be fits under more than one progr which is imposed on the individual.

(ii) In $21.5072 the charge against 1 individual's entitlement will be ma on the basis of payments made to 1 individual's spouse or child.

(iii) In $21.5100 the individua spouse or child may request coi seling, but an incompetent spouse child is not required to be counse before selecting a program of e cation.

(Authority: Pub. L. 96-342, sec. 903, Pub 97-306, Pub. L. 99_576)

(iv) In 8821.5132 through 21.5138 1 erences to payment to the individ apply equally to payment to the spo or child.

(Authority: Sec. 903, Pub. L. 96-342; Pub 97–306, 96 Stat. 1429)

(3) Except as amended in paragra (d)(2) of this section the following s tions apply without change to this p tion of the pilot program:

(i) Sections 21.5001 through 21.5023,

(Authority: 38 U.S.C. 3233; Pub. L. 99-576)

Section 21.5030(c),

period when the veteran has transD) Sections 21.5070 through 21.5130, ferred entitlement to a spouse or child,

The introductory portion of since eligibility cannot be fully deter131,

as

(Authority: 38 U.S.C. 3232; Pub. L. 99-576)

(C) Qualifying period of disability. A veteran's extended period of eligibility shall be based on the period of time that the veteran himself or herself was prevented by reason of physical or mental disability, not the result of the veteran's willful misconduct, from initiating or completing his or her chosen program of education. VA will not consider the disabling effects of chronic alcoholism to be the result of willful misconduct.

mined provided in paragraph Sections 21.5132 through 21.5300. (c)(4)(ii) of this section.

jority: 38 U.S.C. 3698(a)(2))
Section 21.5131 (a) and (b) does not
to this portion of the pilot pro-

ority: Sec. 903, Pub. L. 96-342, 94 Stat.

51748, Nov. 17, 1982; 48 FR 50530, Nov.

49 FR 2110, Jan. 18, 1984; 53 FR 34499, 7. 1988)

296 Extended period of eligi-
ility.
General. A veteran shall be grant-
extension of the applicable de-
ing period, as otherwise deter-
d by $21.5041 provided
The veteran applies for an exten-

The veteran was prevented from
iting or completing the chosen
am of education within the other-
applicable delimiting period be-

of a physical or metal disability did not result from the willful onduct of the veteran. VA will not der the disabling effects of chronoholism to be the result of willful boduct.

ority: 38 U.S.C. 105, 3232; Pub. L. 99-576,
1. 100-689)
Application. (1) Only the veteran
apply for an extended period of
bility pursuant to this section. A
se or child to whom entitlement
be or has been transferred may
upply for, nor receive, an extension
i upon disability of either the vet-
or the spouse or child.
The veteran must apply for the
aded period of eligibility in time
VA to receive the application by
ater of the following dates:
One year from the last date of the
niting period otherwise applicable
le veteran under $21.5041, or
) One year from the termination
of the period of the veteran's men-
ir physical disability.
) No application for an extended pe-
of eligibility should be submitted
Done will be processed during any

(Authority: 38 U.S.C. 105, 3232; Pub. L. 99-576, Pub. L. 100-689)

(1) Evidence must be presented which clearly establishes that the veteran's disability made pursuant of his or her program medically infeasible during the veteran's original period of eligibility as determined by $21.5041. A period of disability following the end of the original disability period will not be a basis for extension.

(2) VA will not consider a veteran who is disabled for a period of 30 days or less as having been prevented from enrolling or reenrolling in the chosen program of education or was forced to discontinue attendance, because of the short disability.

(3) Except as provided in paragraph (c)(4) of this section, a veteran's transfer of entitlement to a spouse or child during a period for which the veteran's disability prevented his or her pursuit of a program of education will not affect the veteran's entitlement to an extension of eligibility under this section.

(4) Since the act of entitlement transfer to a spouse or child indicates that the veteran did not intend to personally use his or her educational assistance during the specified transfer period, a veteran who becomes disabled after transferring entitlement will not be entitled to an extended period of eligibility based on any period of the disability which coincides with the specified transfer period unless

(i) The transferee or transferees did not use any entitlement during this period, and

(ii) The veteran can clearly demonstrate that, notwithstanding his or her decision to transfer entitlement, the veteran would have used the entitlement during all or part of the transfer period and was prevented from doing so solely by reason of his or her disability.

(iii) The date the veteran rest training.

(2) If the veteran is training course not organized on a term, ter or semester basis, his or her tended period of eligibility shall tain the same number of days a number of days from the date di the veteran's original delimiting p that his or her training became cally infeasible to the earlier of th lowing dates:

(i) The date the veteran's trainin came medically feasible, or

(ii) The veteran's delimiting da determined by $21.5041 of this part.

(Authority: 38 U.S.C. 3232; Pub. L. 99–576)

(d) Commencing date. The veteran shall elect the commencing date of an extended period of eligibility. The date chosen

(1) Must be on or after the original date of expiration of eligibility as determined by $21.5041 of this part, and

(2) Must be on or before the 90th day following the date on which the veteran's application for an extension was approved by VA, if the veteran is training during the extended period of eligibility in a course not organized on a term, quarter or semester basis, or

(3) Must be on or before the first day of the first ordinary term, quarter or semester following the 90th day after the veteran's application for an extension was approved by VA if the veteran is training during the extended period of eligibility in a course organized on a term, quarter or semester basis.

(Authority: 38 U.S.C. 3232; Pub. L. 99-57

(f) Discontinuance. If the veter pursuing a course on the date al tended period of eligibility expire determined under this section), VA discontinue the educational assist allowance effective the day befon end of the extended period of bility.

(Authority: 38 U.S.C. 3232; Pub. L. 99–576)

(e) Determining the length of extended periods of eligibility. A veteran's extended period of eligibility shall be based on the qualifying period of disability, and determined as follows:

(1) If the veteran is in training in a course organized on a term, quarter or semester basis, his or her extended period of eligibility shall contain the same number of days as the number of days from the date during the veteran's original delimiting period that his or her training became medically infeasible to the earliest of the following dates:

(i) The commencing date of the ordinary term, quarter or semester following the day the veteran's training became medically feasible,

(ii) The veteran's delimiting date as determined by $21.5041 of this part, or

(Authority: 38 U.S.C. 3232; Pub. L. 99-574

(g) No transfer of entitlement for during the extended period of eligil (1) The veteran may only transfer tlement to a spouse or child for during the original period of eligil as determined by $21.5041 of this pa

(2) If the veteran has establish extended period of eligibility with only the veteran may use rema entitlement during that period,

(3) If the veteran transfers his a entitlement after having receive extension of eligibility, but befor last day of the delimiting period a termined by $21.5041 of this part eligibility of the spouse or child t entitlement ends on the veteran's erwise applicable delimiting date a termined by $21.5041 of this part.

(Authority: 38 U.S.C. 3232; Pub. L. 99-578

(53 FR 34499, Sept. 7, 1988, as amended FR 31584, Aug. 3, 1990)

Subpart H-Educational Assistance Test Program

AUTHORITY: 10 U.S.C. ch. 107; 38 501(a), 3695, 5101, 5113, 5303A: 42 U.S.C.

SEC. 901, Pub. L. 96-342, 94 Stat. 1111-1114, unless otherwise noted.

SOURCE: 51 FR 27026, July 29, 1986, unless otherwise noted.

(3) Enlisted or reenlisted after November 30, 1980, and before October 1, 1981, specifically for benefits under the provisions of 10 U.S.C. 2141 through 2149; Pub. L. 96-342; and

(4) Meets the eligibility requirements for the program as stated in 821.5740.

$21.5701 Establishment of educational

assistance test program. (a) Establishment. The Departments of Army, Navy and Air Force have established an educational assistance test program.

Authority: 10 U.S.C. 2141(a))

(b) Purpose. The purpose of this program is to encourage enlistments and reenlistments for service on active duty in the Armed Forces of the United States during the period from October 1, 1980, through September 30, 1981.

(Authority: 10 U.S.C. 2141(a))

(b) Accredited institution. This term means a civilian college or university or a trade, technical or vocational school in the United States (including the District of Columbia, the Commonwealth of Puerto Rico, Guam and the U.S. Virgin Islands) that,

(1) Provides education on a postsecondary level (including accredited programs conducted at overseas locations) and

(2) Is accredited by

(i) A nationally recognized accrediting agency or association, or

(ii) An accrediting agency or association recognized by the Secretary of Education.

(Authority: 10 U.S.C. 2141(a))

(c) Funding. The Department of Defense is bearing the costs of this program. Participants in the program do not bear any of the costs.

Authority: 10 U.S.C. 2141(a)) 121.5703 Overview.

This program provides subsistence allowance and educational assistance to Selected veterans and servicemembers and, in some cases, to dependents of these veterans and servicemembers. Authority: 10 U.S.C. 2141(b)) 121.5705 Transfer of authority.

The Secretary of Defense delegates the authority to administer the benefit payment portion of this program to the Secretary of Veterans Affairs and his or her designees. See $21.5901. Authority: 10 U.S.C. 2141(b))

(Authority: 10 U.S.C. 2143(c))

(c) Dependent child. This means an unmarried legitimate child (including an adopted child or a stepchild) who either

(1) Has not passed his or her 21st birthday; or

(2) Is incapable of self-support because of a mental or physical incapacity that existed before his or her 21st birthday and is, or was at the time of the veteran's or servicemember's death, in fact, dependent on him or her for over one-half of his or her support; or

(3) Has not passed his or her 23rd birthday; is enrolled in a full-time course of study in an institution of higher learning aproved by the Secretary of Defense or the Secretary of Education, as the case may be; and is, or was at the time of the veteran's or servicemember's death, in fact, dependent upon him or her for over one half of his or her support.

GENERAL

121.5720 Definitions.

For the purpose of regulations in the $21.5700, 21.5800 and 21.5900 series and payment of benefits under the eduCational assistance and subsistence alowance program, the following definitions apply: (a) Veteran. This term means a person

(1) Is not on active duty. (2) Served as a member of the Air Force, Army, Navy or Marine Corps.

(Authority: 10 U.S.C. 1072(2)(D), 2147(d)(1))

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