Section 21.4501 - Eligibility(a)General. Any eligible spouse or surviving spouse shall be eligible to receive an education loan if he or she meets the criteria of this section. (Authority: 38 U.S.C. 3512(f) , 3698 )
(b)Eligibility criteria. To qualify for an education loan- (1) The eligible spouse's or surviving spouse's delimiting period as determined by § 21.3046 (a), (b), or (d) , or § 21.3047 must have expired;(2) The eligible spouse or surviving spouse must-(i) Have financial resources that may reasonably be expected to be expended for education needs and which are insufficient to meet the actual costs of attendance;(ii) Execute a promissory note payable to the Department of Veterans Affairs, as provided by § 21.4504 ;(iii) Have unused entitlement provided under 38 U.S.C. 3511 ;(iv) During the term, quarter, or semester for which the loan is granted, be enrolled on a full-time basis in pursuit of the approved program of education in which he or she was enrolled on the date his or her eligibility expired under § 21.3046 (a), (b), or (d) , or § 21.3047 ; and(v) Have been enrolled in a program of education on a full-time basis-(A) On the date his or her period of eligibility expired under § 21.3046 (a), (b), or (d) , or § 21.3047 ; or(B) On the last date of the ordinary term, semester or quarter preceding the date his or her eligibility expired under § 21.3046 (a), (b), or (d) , or § 21.3047 , if the delimiting date fell during a school break or summer term. (Authority: 38 U.S.C. 3512(f) , 3698 )
(c)Limitations. The period for which a loan may be granted shall not extend beyond the earliest of the following dates:(1) Two years after the expiration of the period of eligibility as determined by § 21.3046(a), (b), or (d) , or § 21.3047 ;(2) The date on which the eligible spouse's or surviving spouse's entitlement is exhausted; or(3) The date on which the eligible spouse or surviving spouse completes the approved program of education which he or she was pursuing on the date the delimiting period determined by § 21.3046 (a), (b), or (d) , or § 21.3047 expired. (Authority: 38 U.S.C. 3512(f) , 3698 )
(d)Exclusions. No eligible spouse or surviving spouse shall be authorized an education loan if he or she has defaulted on a previous education loan and there is a remaining unliquidated payment due VA.(Authority: 38 U.S.C. 3512(f) , 3698 )
61 FR 26115, May 24, 1996, as amended at 62 FR 51785, Oct. 3, 1997