Authority: 38 U.S.C. 3015)

(b) Less than one-half-time training. Except as provided in paragraphs (d) and (e) of this section, the monthly rate of basic educational assistance for a veteran who is pursuing a course on a less than one-half-time basis is the lesser of:

(1) The monthly rate in paragraph (a)(1) of this section, or

(2) The monthly rate of the cost of the course.

Authority: 38 U.S.C. 3032; Pub. L. 98-525, Pub. L. 99-576)

(2) (i) The following monthly rates for training that occurs after September 30, 2000, and before November 1, 2000

(A) $740.00 for full-time training; (B) $555.50 for three-quarter-time training;

(C) $370.00 for one-half-time training and training that is less than one-half but more than one-quarter-time training; and

(D) $185.00 for one-quarter-time training; and

(ii) The following monthly rates for training that occurs after October 31, 2000, and before October 1, 2001

(A) $838.00 for full-time training; (B) $629.00 for three-quarter-time training;

(C) $419.00 for one-half-time training and training that is less than one-half

but more than one-quarter-time training; and

(D) $209.50 for one-quarter-time training.

(Authority: 38 U.S.C. 3015(d), (f))

(d) Increase in basic educational assistance rates ("kicker"). The Secretary concerned may increase the amount of basic educational assistance payable to an individual who has a skill or specialty which the Secretary concerned designates as having a critical shortage of personnel or for which it is difficult to recruit. The increase may not be applied to a servicemember whose monthly rate is determined by paragraph (c)(1) of this section, but it can serve to raise the ceiling on monthly rates stated in paragraphs (b)(1) and (c)(2) of this section. The amount of the increase is set by the Secretary concerned, but

(1) For individuals, other than those pursuing cooperative training before October 9, 1996, or apprenticeship or other on-job training, it may not exceed:

(i) $400 per month for full-time training,

(ii) $300 per month for three-quartertime training.

(iii) $200 per month for one-half-time training or for training which is less than one-half but more than one-quarter-time, or

(iv) $100 per month for one-quartertime training or less.

(2) For individuals pursuing an apprenticeship or other on-job training it may not exceed

(i) $300 per month for the first six months of training.

(ii) $220 per month for the second six months of training, and

(iii) $140 per month for the remaining months of training.

(Authority: 38 U.S.C. 3015, 3032)

(3) For individuals pursuing cooperative training, it may not exceed $320 per month for training received before October 9, 1996.

(Authority: Sec. 108(a)(2), Pub. L. 100-689, 102 Stat. 4170; sec. 5(a), Pub. L. 102-83, 105 Stat. 406)

(e) Increase ("kicker") in basic educational assistance rates for service in the Selected Reserve. (1) The Secretary of the military department concerned may increase the amount of basic educational assistance payable under paragraph (a), (b), or (d) of this section, as appropriate. The increase ("kicker") is payable to a veteran who has a skill or specialty in which there is a critical shortage of personnel or for which it is difficult to recruit, or, in the case of critical units, retain personnel, if the veteran:

(i) Establishes eligibility for educational assistance under $21.7044(a); and

(ii) Meets the criteria of § 21.7540(a)(1) with respect to service in the Selected Reserve.

(2) The Secretary of the military department concerned

(i) Will, for such an increase, set the amount of the increase ("kicker") payable for full-time training, but the increase ("kicker") may not exceed $350 per month;

(ii) May set the amount of the "kicker" payable, for a veteran pursuing a program of education less than full time or pursuing an apprenticeship or other on-job training, at an amount less than the amount described in paragraph (e)(2)(i) of this section.

(Authority: 10 U.S.C. 16131(i)(2))

(f) Concurrent benefits. VA may pay additional educational assistance to a veteran for a dependent concurrently with additional pension or compensation for the same dependent.

(Authority: 38 U.S.C. 3015(d), Pub. L. 98-525)

(g) Two veteran cases. VA may pay additional educational assistance to a veteran for a spouse who is also a vet

eran. This will not bar the payment additional educational assistance o subsistence allowance under §21.260 this part to the spouse for the vetera If the veteran is paid additional ed cational assistance for a child, tha will not bar payment of additional edu cational assistance or subsistence a lowance under $21.260 of this part t the spouse for the same child.

(Authority: 38 U.S.C. 3015(d); Pub. L. 98-525) [53 FR 1757, Jan. 22, 1988, as amended at 5 34987, Aug. 23, 1989; 55 FR 28387, July 11, 199 56 FR 20135, May 2, 1991; 56 FR 31332, July 10 1991; 57 FR 11911, Apr. 8, 1992; 57 FR 57104 Dec. 3, 1992; 61 FR 6789, Feb. 22, 1996; 61 FF 15191, Apr. 5, 1996; 61 FR 24237, May 14, 1996 62 FR 14825, Mar. 28, 1997; 62 FR 55519, Oct. 27 1997; 62 FR 58655, Oct. 30, 1997; 64 FR 31694 June 14, 1999; 65 FR 44980, July 20, 2000; 65 FF 55193, Sept. 13, 2000; 66 FR 32230, June 14, 2001 $21.7138 Rates of supplemental edu cational assistance.

In addition to basic educational as sistance, a veteran or servicemember who is eligible for supplemental edu cational assistance and entitled to it shall be paid supplemental educational assistance at the rate described in this section unless a lesser rate is required by $21.7139 of this part.

(a) Rates for veterans. (1) Except for a veteran pursuing apprenticeship or other on-job training, the rate of supplemental educational assistance payable to a veteran is at least the rate stated in this table.

Authority: 38 U.S.C. 3015(c), 3032(c); Pub. L. 99-576)

(b) Increase in supplemental educational assistance rates ("kicker"). The Secretary concerned may increase the amount of supplemental educational assistance payable to an individual who has a skill or specialty which the Secretary concerned designates as having a critical shortage of personnel or for which it is difficult to recruit. The amount of the increase is set by the Secretary concerned, but

(1) For an individual other than one pursuing an apprenticeship or other onjob training or cooperative training it may not exceed

Authority: 38 U.S.C. 3032(d)) (Jan. 1, 1989)

(i) $300 per month for full-time training.

(ii) $225 per month for three-quartertime training,

(iii) $150 per month for one-half-time training and for training which is less than one-half-time, but more than onequarter-time, or

(iv) $75 per month for one-quartertime training or less.

(2) For an individual pursuing an apprenticeship or other on-job training it may not exceed

(i) $225 per month for the first six months of training,

(ii) $165 per month for the second six months of training, and

(iii) $105 per month for the remaining months of training.

Authority: 38 U.S.C. 3022(b), 3032(c); Pub. L. 99-576)

(3) For an individual pursuing cooperative training, it may not exceed $240 per month.

(Authority: 38 U.S.C. 3022(b), 3032(d)) (Jan. 1, 1989)

(c) Rates of supplemental educational assistance for less than one-half-time training and for servicemembers. The monthly rate of supplemental educational assistance payable to a vet

eran who is training less than halftime or to a servicemember is determined as follows:

(1) The monthly rate of the veteran's or servicemember's basic educational assistance is determined as provided in §§ 21.7136(d), and 21.7137 (b), (c) and (d) of this part.

(2) If the monthly rate of basic educational assistance equals or is greater than the monthly rate of the cost of the course, no supplemental educational assistance is payable.

(3) If the monthly rate of basic educational assistance is less than monthly rate of the cost of the course, the monthly rate of supplemental educational assistance is the lesser of

(i) The monthly rate provided in paragraph (a) of this section, plus the monthly rate provided in paragraph (b) of this section, if appropriate, or

a

or

(a) Withdrawals and nonpunitive grades. Withdrawal from a course or receipt of a nonpunitive grade affects payments to veteran servicemember. VA will not pay benefits to a veteran or servicemember for pursuit of a course from which the veteran or servicemember withdraws or receives a nonpunitive grade which is not used in computing requirements for graduation unless the provisions of this paragraph are met.

(1) The veteran withdraws because he or she is ordered to active duty; or (2) All of the following exist. (i) There are mitigating cumstances; and

cir

(ii) The veteran or servicemember submits a description of the mitigating circumstances in writing to VA within one year from the date VA notifies the veteran or servicemember that he or she must submit a description of the mitigating circumstances, or at a later date if the veteran or servicemember is able to show good cause why the oneyear time limit should be extended to the date on which he or she submitted the description of the mitigating circumstances; and

(iii) The veteran or servicemember submits evidence supporting the existence of mitigating circumstances within one year of the date that evidence is requested by VA, or at a later date if the veteran or servicemember is able to show good cause why the one-year time limit should be extended to the date on which he or she submitted the evidence supporting the existence of mitigating circumstances.

(Authority: 38 U.S.C. 3034, 3680(a); Pub. L. 98525, Pub. L. 102-127)(Aug. 1, 1990)

to

an

(b) No educational assistance for some incarcerated servicemembers. As with servicemembers who are not incarcerated, VA will not pay educational assistance incarcerated servicemember enrolled in a course for which there are no tuition and fees. Furthermore, VA will not pay educational assistance to a servicemember who

(1) Is enrolled in a course where his or her tuition and fees are being paid for by a Federal program (other than one administered by VA) or by a State or local program, and

(2) Is incarcerated in a Federal, State or local prison or jail for conviction of a felony, and has incurred no expenses for supplies, books or equipment.

(Authority: 38 U.S.C. 3034, 3482(g))

(c) No educational assistance for some incarcerated veterans. The VA will pay no educational assistance to a veteran who

(1) Is incarcerated in a Federal, State or local penal institution for conviction of a felony, and

(2) Is enrolled in a course

(i) For which there are no tuition and fees, or

(ii) For which tuition and fees ar being paid by a Federal program (othe than one administered by the VA) c by a State or local program, and

(3) Is incurring no charge for th books, supplies and equipment ne essary for the course.

(Authority: 38 U.S.C. 3034, 3482(g))

(d) Reduced educational assistance fo some incarcerated servicemembers.

(1) VA will pay reduced educationa assistance to a servicemember who

(i) Is incarcerated in a Federal, Stat or local penal institution for convic tion of a felony, and

(ii) Is enrolled in a course where hi or her tuition and fees are being paic for entirely or partly by a Federal program (other than one administered by VA) or by a State or local program and

(iii) If all the tuition and fees ar paid for by such a program, must buy books, supplies or equipment for the

course.

(2) The monthly rate of educationa assistance payable to a servicemember described in this paragraph shall equa the lowest of the following:

(i) The monthly rate of the portion of the tuition and fees that are not paid by a Federal program (other than one administered by VA) or a State or local program plus the monthly rate of any charges to the servicemember for the cost of necessary supplies, books and equipment;

(ii) The monthly rate of the portion of the tuition and fees paid by the servicemember plus the monthly rate of the portion of tuition and fees paid by the Federal, State or local program:

which a Federal program (other than one administered by VA) or a State or local program pays all the charges for tuition and fees, but which requires the eteran to pay for books, supplies and equipment.

(2) The monthly rate of educational assistance payable to such a veteran who is pursuing the course on a onehalf time or greater basis shall be the lesser of the following:

(i) The monthly rate of the portion of the tuition and fees that are not paid by a Federal program (other than one administered by VA) or a State or local program plus the monthly rate of the charge to the veteran for the cost of Becessary supplies, books and equipment, or

(ii) If the veteran has remaining entitlement under 38 U.S.C. chapter 34, monthly rate stated in §21.7137(a) for a veteran with no dependents and the increase provided in §21.7137(d) or (e), if appropriate, plus the monthly rate stated in §21.7138 (a) and (b) for a veteran if the veteran is entitled to supplemental educational assistance, or

(iii) If the veteran has no entitlement under 38 U.S.C. chapter 34, the monthly rate stated in § 21.7136 (a) or (b), as appropriate, and the increase provided in 21.7136(d), (f), or (g), if appropriate, plus the monthly rate stated in § 21.7138 (a) and (b) for a veteran if the veteran is entitled to supplemental educational

assistance.

(3) The monthly rate of educational assistance payable to such a veteran who is pursuing the course on a less than one-half time basis or on a onequarter time basis shall be the lowest of the following:

(1) The monthly rate of the tuition and fees charged for the course,

(i) The monthly rate of the tuition and fees which the veteran must pay plus the monthly rate of the charge to the veteran for the cost of necessary supplies, books and equipment, or (iii) The monthly rate determined by 21.7136(d) or $21.7137(b), as appropriate, plus the monthly rate stated in $21.7138(c) if the veteran is entitled to supplemental educational assistance.

Authority: 38 U.S.C. 3034, 3482(g))

(f) Payment for correspondence courses. The amount of payment due a veteran

or servicemember who is pursuing a correspondence course or the correspondence portion of a correspondence-residence course is 55 percent of the established charge which the educational institution requires nonveterans to pay for the lessons that the veteran or servicemember has had completed and serviced and for which payment is due.

(Authority: 38 U.S.C. 3034, 3686(a)(2))

(g) Failure to work sufficient hours of apprenticeship and other on-job training. (1) For any month in which an eligible veteran pursuing an apprenticeship or other on-job training program fails to complete 120 hours of training, VA will reduce proportionally

(i) The rates specified in §§ 21.7136(b)(2), (c)(2), (d)(3), and (d)(4), and 21.7137(a)(2) and (d)(2); and

(ii) Any increase ("kicker") set by the Secretary of the military department concerned as described in §§ 21.7136(g) and 21.7137(e).

(2) In making the computations required by paragraph (g)(1) of this section, VA will round the number of hours worked to the nearest multiple of eight.

(3) For the purpose of this paragraph "hours worked" include only

(i) The training hours the veteran worked, and

(ii) All hours of the veteran's related training which occurred during the standard workweek and for which the veteran received wages. (See $21.4270(c), footnote 5, as to the requirements for full-time training.)

(Authority: 38 U.S.C. 3034, 3687(b)(3)

[53 FR 1757, Jan. 22, 1988, as amended at 55 FR 28388. July 11, 1990; 56 FR 11672, Mar. 20, 1991; 57 FR 15025, Apr. 24, 1992; 58 FR 26242, May 3, 1993; 60 FR 32272, June 21, 1995; 62 FR 55520, Oct. 27, 1997]

$21.7140 Certifications and release of

payments.

(a) Advance payments and lump-sum payments. VA will apply the provisions of § 21.4138(a) and (b) in making advance payments and lump-sum payments to veterans and servicemembers.

(Authority: 38 U.S.C. 3034 and 3680)