The following rules will govern reduction and discontinuance dates for educational assistance and subsistence allowance.
(a) Death of individual. If an individual dies -
(1) VA will discontinue educational assistance effective the last day of the most recent term, quarter, semester or enrollment period of which the individual received educational assistance.
(2) VA will discontinue subsistence allowance effective the individual's last date of attendance.
(b) Lump-sum payment. When a servicemember accepts a lump-sum payment in lieu of educational assistance, VA will discontinue educational assistance effective the date on which he or she elects to receive the lump-sum payment.
(c) Reduction due to decreased training time.
(1) If a decrease in an individual's training time requires a decrease in educational assistance, the decrease is effective the end of the month in which the individual become a part-time student or the end of the term, whichever is earlier.
(2) When an individual decreases his or her training time from full-time to part-time, VA will decrease his or her subsistence allowance effective the end of the month in which the individual became a part-time student, or the end of the term, whichever is earlier.
(d) Course discontinued, interrupted, terminated or withdrawn from. If an individual withdraws, discontinues, ceases to attend, interrupts or terminates all courses, VA will discontinue educational assistance and subsistence allowance effective the last date of attendance.
(e) False claim. VA will discontinue educational assistance and subsistence allowance effective the first day of the term for which the false claim is submitted.
(f) Withdrawal of accreditation. If an accrediting agency withdraws accreditation from a course in which an individual is enrolled, VA will discontinue educational assistance and subsistence allowance effective the end of the month in which the accrediting agency withdrew accreditation, or the end of the term, whichever is earlier.
(g) Remarriage of surviving spouse. VA will discontinue educational assistance and subsistence allowance effective the last date of attendance before the date on which the surviving spouse remarries.
(h) Divorce. If entitlement has been transferred to the veteran's or servicemember's spouse, and the spouse is subsequently divorced from the veteran or servicemember, the spouse's award of educational assistance and subsistence allowance will end on the last date of attendance before the divorce decree becomes final.
(i) Revocation of transfer. If a veteran or servicemember revokes a transfer of entitlement, the spouse's or dependent child's award of educational assistance will end on the effective date of the revocation. See § 21.5743(e).
(j) Dependent child ceases to be dependent: veteran or servicemember living. If a veteran or servicemember is living and has transferred entitlement to his or her dependent child who is not incapable of self support due to physical or mental incapacity, VA will discontinue the dependent child's award of educational assistance and subsistence allowance whenever the child does not meet the definition of a dependent child found in § 21.5720(c). The effective date of discontinuance is the earliest of the following:
(1) The child's 21st birthday, if on that date -
(i) The veteran or servicemember is not providing over one-half the child's support, or
(ii) The child is not enrolled in a full-time course of study in an institution of higher learning approved by the Secretary of Defense or the Secretary of Education, as the case may be;
(2) The date, following the child's 21st birthday, on which the veteran or servicemember stops providing over one-half the child's support;
(3) The date, following the child's 21st birthday, on which he or she is no longer enrolled in a full-time course of study in an institution of higher learning approved by the Secretary of Defense or the Secretary of Education, as the case may be;
(4) The child's 23rd birthday;
(5) the date the child marries.
(k) Dependent child ceases to be dependent: veteran or servicemember deceased. If a veteran or servicemember is deceased and his or her dependent child is not incapable of self support due to physical or mental incapacity, VA will discontinue the dependent child's award of educational assistance whenever the child does not meet the definition of a dependent child found in § 21.5720(c). The effective date of discontinuance is the earliest of the following:
(1) The day after the child's 21st birthday, if on that date the child is not enrolled in a full-time course of study in an institution of higher learning approved by the Secretary of Defense or the Secretary of Education, as the case may be;
(2) The date following the child's 21st birthday on which he or she is no longer enrolled in a full-time course of study in an institution of higher learning approved by the Secretary of Defense or the Secretary of Education, as the case may be;
(3) The child's 21st birthday; or
(4) The date the child marries.