ave duty. During this period of servin the Selected Reserve the indimal must satisfactorily participate training as prescribed by the Secary concerned.

thority: 38 U.S.C. 3012(a)(1); Pub. L. 100Pub. L. 101-237)

The individual must, after comtion of all service described in this agraph

) Be discharged from service with honorable discharge, or

1) Be placed on the retired list, or ii) Be transferred to the Standby erve or an element of the Ready Ree other than the Selected Reserve r service in the Selected Reserve racterized by the Secretary conbed as honorable service, or

Continue on active duty, or Continue in the Selected Reserve. An individual is exempt from servtwo years on active duty as prod in paragraph (b)(3) of this section in the individual is discharged or reed from the Armed Forces during se two years

For a service-connected disability,

For a medical condition which existed such service on active duty which VA determines is not service nected, or (July 1, 1985)

Under 10 U.S.C. 1173 (hardship charge), or

In the case of an individual disrged or released after 20 months of service, for the convenience of the vernment, or

Involuntarily, for convenience of Government as a result of a reducin force as determined by the Secary of the military department conned in accordance with regulations scribed by the Secretary of Defense by the Secretary of Transportation th respect to the Coast Guard when is not operating as a service in the wy, or

vi) For a physical or mental condiin that was not characterized as a sability and did not result from the dividual's own willful misconduct but d interfere with the individual's perrmance of duty, as determined by the cretary of each military department accordance with regulations preribed by the Secretary of Defense or

by the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 100-689, Pub. L. 101510) (Oct. 19, 1984)

(7) An individual is exempt from serving four years in the Selected Reserve as provided in paragraph (b)(4) of this section when

(i) After completion of the active duty service required by this paragraph the individual serves a continuous period of service in the Selected Reserve and is discharged or released from service in the Selected Reserve

(B) For a medical condition which preexisted the individual's becoming a member of the Selected Reserve and which VA determines is not service connected, or (July 1, 1985)

(C) Under 10 U.S.C. 1173 (hardship discharge), or

(D) After a minimum of 30 months of such service for the convenience of the Government, or

(E) Involuntarily for the convenience of the Government as a result of a reduction in force, as determined by the Secretary of the military department concerned in accordance with regulations prescribed by the Secretary of Defense or by the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy, or

(F) For a physical or mental condition that was not characterized as a disability and did not result from the individual's own willful misconduct but did interfere with the individual's performance of duty, as determined by the Secretary of each military department in accordance with regulations prescribed by the Secretary of Defense or by the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 100-689, Pub. L. 101510) (Oct. 19, 1984)

(ii) The individual is obligated at the beginning of the two years active duty

(B) For a medical condition which preexisted that period of active duty and which VA determines is not service connected; or (Oct. 1, 1987)

(C) For a physical or mental condition that was not characterized as a disability and did not result from the individual's own willful misconduct but did interfere with the individual's performance of duty, as determined by the Secretary of each military department in accordance with regulations prescribed by the Secretary of Defense or by the Secretary of Transportation with respect to the Coast Guard when it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3012(b)(1)(B)(i))

(iii) Before completing four years service in the Selected Reserve, the individual ceases to be a member of the Selected Reserve during the period beginning on October 1, 1991, and ending on September 30, 1999, by reason of the inactivation of the individual's unit of assignment or by reason of involuntarily ceasing to be designated as a member of the Selected Reserve pursuant to 10 U.S.C. 268(b). However, this exemption from the four-year service requirement does not apply to a reservist who ceases to be a member of the Selected Reserve under adverse conditions as characterized by the Secretary of the military department concerned, or to a reservist who after having involuntarily ceased to be a member of the Selected Reserve is involuntarily separated from the Armed Forces under adverse conditions as characterized by the Secretary of the military department concerned.

(Authority: 10 U.S.C. 16133(b)(1); 38 U.S.C. 3012(b)(1)(B); sec. 4421(b) and (c), Pub. L. 102484, 106 Stat. 2718)

(8) For purposes of determining continuity of Selected Reserve service, the

Secretary concerned may prescribe by regulation a maximum period of tim during which the individual is consid ered to have continuous service in th Selected Reserve even though he o she

(i) Is unable to locate a unit of th Selected Reserve of the individual] Armed Force that the individual is eli gible to join or that has a vacancy, o (ii) Is not attached to a unit of th Selected Reserve for any reason pre scribed by the Secretary concerned b regulation other than those stated i paragraph (b)(8)(i) of this section.

(9) Any decision as to the continuit of an individual's service in the Se lected Reserve made by the Depart ment of Defense or the Department Transportation under regulations de scribed in paragraph (b)(8) of this se tion shall be binding upon VA.

(Authority: 38 U.S.C. 3011, 3012; Pub. L. 9 525, Pub. L. 100-689) (July 1, 1985, Oct. 1, 198

(10) An individual whose active dut meets the definition of that term foun in §21.7020(b)(1)(iv), and who wishes t become entitled to basic educationa assistance, must have elected to do s before July 9, 1997. For an individua electing while on active duty, this elec tion must have been made in the mar ner prescribed by the Secretary of De fense. For individuals not on activ duty, this election must have been sub mitted in writing to VA.

(Authority: Sec. 107(b), Pub. L. 104-275, 11 Stat. 3329-3330)

(11) An individual who does not mee the requirements of paragraph (b)(2) c this section nevertheless is eligible fo basic educational assistance if he o she

(i) Was on active duty on August 2 1990; and

(ii) Completed the requirements of secondary school diploma (or a equivalency certificate) before Octobe 29, 1994.

(Authority: 38 U.S.C. 3012)

(c) Eligibility based on withdrawal o election not to enroll. As stated in para graph (f) of this section, a veteran o servicemember who elects not to enrol in this educational assistance program

fenerally not eligible for educational istance. However, such a person y establish eligibility by meeting requirements of this paragraph. 1) The individual must withdraw an etion not to enroll. Only someone > meets the provisions of this subagraph may make this withdrawal. th a withdrawal is irrevocable. The hdrawal may only be made during period beginning on December 1, , and ending on June 30, 1989, by a ricemember who

) Must have first become a member he Armed Forces or first entered on ive duty as a member of the Armed ces during the period beginning y 1, 1985, and ending June 30, 1988;

As of the day of withdrawal of the tion must have served continuously active duty without a break in servsince the date the individual first ame a member of the Armed Forces first entered on active duty as a mber of the Armed Forces;

ii) Must be serving on active duty the day he or she withdraws the tion;

y) Withdraws the election in the n prescribed by the Secretary of Dese or in the case of the Coast Guard the Secretary of Transportation respect to the Coast Guard when not operating as a service in the vy.

The individual must continue to re the period of service that the inidual was obligated to serve on Deaber 1, 1988.

The individual must:

Complete the period of service it he or she was obligated to serve December 1, 1988, which will include mpletion of a period of extension or nlistment if an individual's initial ligated period of service was schedd to end after November 30, 1988, but or she extended an enlistment or relisted before December 1, 1988; or ii) Before completing the period of rvice he or she was obligated to serve December 1, 1988, have been disarged or released from active duty

(A) A service-connected disability, or (B) A medical condition which eexisted that period of service and hich the Secretary determines is not rvice connected, or

(C) Hardship (10 U.S.C. 1173); or

(iii) Before completing the period of service he or she was obligated to serve on December 1, 1988, have been

(A) Discharged or released from active duty for the convenience of the Government after completing not less than 20 months of that period of service if such period was less than three years, or 30 months, if that period was at least three years;

(B) Involuntarily discharged or released from active duty for the convenience of the Government as a result of a reduction in force as determined by the Secretary concerned in accordance with regulations prescribed by the Secretary of Defense; or

(C) Discharged or released from active duty for a physical or mental condition that was not characterized as a disability and did not result from the individual's own willful misconduct but did interfere with the individual's performance of duty, as determined by the Secretary of the military department concerned in accordance with regulations prescribed by the Secretary of Defense (or by the Secretary of Transportation for the Coast Guard when the Coast Guard is not operating as a service of the Navy).

(4) Before completing the service he or she was obligated to serve on December 1, 1988, the individual—

(i) Must complete the requirements of a secondary school diploma (or an equivalency certificate) or

(ii) Successfully complete (or otherwise receive academic credit for) 12 semester hours (or the equivalent) in a program of education leading to a standard college degree.

(5) Upon completion of the period of service he or she was obligated to serve on December 1, 1988, the individual must

(i) Be discharged from service with an honorable discharge, be placed on the retired list, be transferred to the Fleet Reserve or Fleet Marine Corps Reserve, or be placed on the temporary disability retired list; or

(ii) Continue on active duty; or

(iii) Be released from active duty for further service in a reserve component of the Armed Forces after service on

active duty characterized by the Secretary concerned as honorable service.

(Authority: 38 U.S.C. 3018; Pub. L. 102-16) (Mar. 22, 1991)

(d) Dual eligibility. (1) An individual who has established eligibility under paragraph (a) of this section through serving at least two years of continuous active duty of an initial obligated period of active duty of less than three years, as provided in paragraph (a)(2) of this section, may attempt to establish eligibility under paragraph (b) of this section through service in the Selected Reserve. If this veteran fails to establish eligibility under paragraph (b) of this section, he or she will retain eligibility established under paragraph (a) of this section.

(2) An individual must elect, in writing, whether he or she wishes service in the Selected Reserve to be credited towards establishing eligibility under 38 U.S.C. chapter 30 or under 10 U.S.C. chapter 1606 when:

(i) The individual:

(A) Is a veteran who has established eligibility for basic educational assistance through meeting the provisions of paragraph (b) of this section; and

(B) Also is a reservist who has established eligibility for benefits under 10 U.S.C. chapter 1606 through meeting the requirements of § 21.7540; or

(ii) The individual is a member of the National Guard or Air National Guard who has established eligibility for basic educational assistance under 38 U.S.C. chapter 30 through activation under a provision of law other than 32 U.S.C. 316, 502, 503, 504, or 505.

(3) An election under this paragraph (d) to have Selected Reserve service credited towards eligibility for payment of educational assistance under 38 U.S.C. chapter 30 or under 10 U.S.C. chapter 1606 is irrevocable when the veteran either negotiates the first check or receives the first payment by electronic funds transfer of the educational assistance elected.

(4) If a veteran is eligible to receive educational assistance under both 38 U.S.C. chapter 30 and 10 U.S.C. chapter 1606, he or she may receive educational assistance alternately or consecutively under each of these chapters to the extent that the educational assistance is

based on service not irrevocably cre ited to one or the other chapter as pr vided in paragraphs (d)(1) through (d)( of this section.

(Authority: 10 U.S.C. 16132, 38 U.S.C. 3033(

(e) Eligibility to receive educational a sistance while serving a qualifying peri of active duty.

(1) An individual on active duty wh does not have sufficient active du service to establish eligibility und paragraph (a) of this section, neverth less is eligible to receive basic ed cational assistance when he or she

(i) After June 30, 1985, either— (A) First becomes a member of th Armed Forces, or

(B) First enters on active duty as member of the Armed Forces;

(ii) Has completed the requiremen of a secondary school diploma (or a equivalency certificate) before begi ning training;

(iii) Serves at least two years of co tinuous active duty in the Arme Forces; and

(iv) Remains on active duty.

(2) Subject to paragraph (e)(3) of th section, VA will consider an individu to have met the requirements of para graph (b) of this section when he she

(i) Has met the active duty requir ments of paragraph (b) of this sectio (ii) Is committed to serve 4 years the Selected Reserve; and

(iii) Before beginning the training fo which he or she wishes to receive ed cational assistance

(A) Has completed the requirement of a high school diploma (or equiva lency certificate), or

(B) Has successfully completed th equivalent of 12 semester hours or th equivalent in a program of educatio leading to a standard college degree.

(Authority: 38 U.S.C. 3011, 3012, 3016)

(3) An individual who establishe basic eligibility under this paragrap shall lose that eligibility if, upon dis charge or release from active duty, h or she is unable to establish eligibility under any of the other paragraphs o this section. The effective date for tha

of eligibility is the date the veti was discharged or released from ¡ve duty.

hority: 38 U.S.C. 3011, 3012, 3016; Pub. L. 25)

) Restrictions on establishing eligity. (1) An individual who, after June 1985, first becomes a member of the med Forces or first enters on active y as a member of the Armed Forces, y elect not to receive educational istance under 38 U.S.C. ch. 30. This ction must be made at the time the ividual initially enters on active ty as a member of the Armed Forces. (individual who makes such an elecn is not eligible for educational astance under 38 U.S.C. ch. 30 unless he she withdraws the election as proled in paragraph (c) of this section or §21.7045(b) or (c) of this part.

athority: 38 U.S.C. 3018, 3018A; Pub. L. 100Pub. L. 101-510) (Nov. 5, 1990)

(2) Except as provided in paragraph (4) of this section, an individual is t eligible for educational assistance der 38 U.S.C. chapter 30 if after Dember 31, 1976, he or she receives a mmission as an officer in the Armed rces upon graduation from:

1) The United States Military Acad13:

i) The United States Naval Acad;

iii) The United States Air Force ademy; or

(iv) The United States Coast Guard cademy.

(3) Except as provided in paragraph X4) of this section, an individual who ter December 31, 1976, receives a comission as an officer in the Armed orces upon completion of a program f educational assistance under 10 L.B.C. 2107 is not eligible for eduational assistance under 38 U.S.C. hapter 30, if the individual enters on ctive duty

(1) Before October 1, 1996; or

(ii) After September 30, 1996, and hile participating in that program reeived more than $2,000 for each year of articipation.

Authority: 38 U.S.C. 3011(c), 3012(d))

(4) Paragraphs (f)(2) and (f)(3) of this section do not apply to a veteran who has met the requirements for educational assistance under paragraph (a), (b) or (c) of this section before receiving a commission in the Armed Forces upon graduation from the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy; or upon completion of a program of educational assistance under 10 U.S.C. 2107 (the Senior Reserve Officers Training Corps Scholarship Program).

(Authority: 38 U.S.C. 3011, 3012, 3018)

(g) Reduction in basic pay. (1) Except as elsewhere provided in this paragraph, the basic pay of any individual described in paragraph (a), (b), or (c) of this section shall be reduced by $100 for each of the first 12 months that the individual is entitled to basic pay. If the individual does not serve 12 months, it shall be reduced by $100 for each month that the individual is entitled to basic pay.

(2) The basic pay of an individual who withdraws an election not to receive educational assistance under 38 U.S.C. ch. 30 as described in paragraph (c) of this section shall be reduced by (i) $1,200, or

(ii) In the case of an individual whose discharge or release from active duty prevents the reduction of the individual's basic pay by $1,200, an amount less than $1,200.

(3) The basic pay of any individual who makes the election described in paragraph (e)(1) of this section and who does not withdraw that election will not be subject to the reduction described in either paragraph (g)(1) or paragraph (g)(2) of this section.

(4) The individual who makes the election described in either paragraph (a)(7) or (b)(10) of this section shall have his or her basic pay reduced by $1,200 in a manner prescribed by the Secretary of Defense. To the extent that basic pay is not so reduced before the individual's discharge or release from active duty, VA will collect from the individual an amount equal to the difference between $1,200 and the total amount of the reductions described in

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