---
kind: "section"
citation: "38 C.F.R. § 21.9676"
title: "38"
number: "21.9676"
heading: "Conditions that result in reduced rates or no payment—for provisions effective after July 31, 2011."
url: "https://uscodex.org/cfr/38/21.9676"
---

# §21.9676. Conditions that result in reduced rates or no payment—for provisions effective after July 31, 2011.


After July 31, 2011, the payment rates as established in §§ [21.9641](/cfr/38/21.9641.md) and [21.9655](/cfr/38/21.9655.md) will be reduced in accordance with this section whenever the circumstances described in this section arise.

- (a) **Withdrawals and nonpunitive grades.** Except as provided in this [paragraph (a)](#a), VA will not pay educational assistance for an eligible individual's pursuit of a course from which the eligible individual withdraws or receives a nonpunitive grade that is not used in computing the requirements for graduation. VA may pay educational assistance for a course from which the eligible individual withdraws or receives a nonpunitive grade if—
  - (1) The individual withdraws because he or she is ordered to active-duty service or, in the case of an individual serving on active duty, he or she is ordered to a new duty location or assignment, or ordered to perform an increased amount of work; or
  - (2) There are mitigating circumstances; and
    - (i) The eligible individual submits a description of the mitigating circumstances in writing to VA within one year from the date VA notifies the eligible individual that a description is needed, or at a later date if the eligible individual 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 description of the mitigating circumstances; and
    - (ii) The eligible individual submits evidence supporting the existence of mitigating circumstances within one year of the date VA requested the evidence, or at a later date if the eligible individual 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.
- (b) **No monthly housing allowance for some incarcerated individuals.** An individual who is incarcerated in a Federal, State, local, or other penal institution or correctional facility due to a felony conviction will not receive a monthly housing allowance.
- (c) **Reduced educational assistance for some incarcerated individuals.**
  - (1) An individual who is incarcerated in a Federal, State, local, or other penal institution or correctional facility due to a felony conviction will receive—
    - (i) The net costs for tuition and fees not paid by any other form of financial assistance, not to exceed the amounts specified in [§ 21.9641(b)](/cfr/38/21.9641.md?p=b); and
    - (ii) The amount of necessary books, supplies, and equipment not paid by any other form of financial assistance, not to exceed $1,000 each academic year.
  - (2) The amounts payable under [paragraph (c)(1)](#c-1) of this section will be prorated based on the individual's eligibility percentage as determined in [§ 21.9641(a)](/cfr/38/21.9641.md?p=a).
- (d) **No educational assistance for certain enrollments.** VA will not pay educational assistance for—
  - (1) An enrollment in an audited course (see [§ 21.4252(i)](/cfr/38/21.4252.md?p=i));
  - (2) A new enrollment in a course during a period when the approval has been suspended by a State approving agency or VA;
  - (3) An enrollment in a course by a nonmatriculated student except as provided in [§ 21.4252(l)](/cfr/38/21.4252.md?p=l);
  - (4) An enrollment in a course certified to VA by the individual taking the course;
  - (5) A new enrollment in a course which does not meet the supported students versus nonsupported students ratio requirement as computed under [§ 21.4201](/cfr/38/21.4201.md); and
  - (6) An enrollment in a course offered under contract for which VA approval is prohibited by [§ 21.4252(m)](/cfr/38/21.4252.md?p=m).
- (e) **Authority.**
  - (1) [Paragraph (a)](#a) of this section issued under the authority of 38 U.S.C. [3034(a)](/usc/38/3034.md?p=a), [3323(a)](/usc/38/3323.md?p=a), [3680(a)](/usc/38/3680.md?p=a);
  - (2) [Paragraph (c)](#c) of this section issued under the authority of 38 U.S.C. [3034(a)](/usc/38/3034.md?p=a), [3323(a)](/usc/38/3323.md?p=a), [3482(g)](/usc/38/3482.md?p=g); and
  - (3) [Paragraph (d)](#d) of this section issued under the authority of 38 U.S.C. [501(a)](/usc/38/501.md?p=a), [3034(a)](/usc/38/3034.md?p=a), [3323(a)](/usc/38/3323.md?p=a).

## Notes

### Amendments

[90 FR 5353, Jan. 16, 2025]

### Authority

Authority: 38 U.S.C. 501(a), 512, chs. 33, 36 and as noted in specific sections.

### Source

Source: 74 FR 14671, Mar. 31, 2009, unless otherwise noted.

### Amendments

[90 FR 5353, Jan. 16, 2025]