38 C.F.R. § 21.7656
(a) Reports from reservists.
(1) A reservist enrolled full time in a program of education for a standard term, quarter, or semester must report without delay to VA:
(2) A reservist not described in paragraph (a)(1) of this section must report without delay to VA:
(iii) Any interruption or termination of his or her attendance.
(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3684)
(b) Interruptions, terminations or changes in hours of credit or attendance. When a reservist interrupts or terminates his or her training for any reason, including unsatisfactory conduct or progress, or when he or she changes the number of hours of credit or attendance, the educational institution must report this fact to VA.
(1) Except as provided in paragraph (b)(2) of this section, an educational institution must report without delay to VA each time a reservist:
(2) An educational institution does not need to report a change in a reservist's hours of credit or attendance when:
(5) If the change in status or change in the number of hours of credit or attendance occurs during the 30 days of a drop-add period, the educational institution must report the change in status or change in the number of hours of credit or attendance to VA in time for VA to receive the report within 30 days from the last date of the drop-add period or 60 days from the first day of the enrollment period, whichever occurs first.
(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3684.)
(c) Nonpunitive grades. An educational institution may assign a nonpunitive grade for a course or subject in which the reservist is enrolled even though the reservist does not withdraw from the course or subject. When this occurs, the educational institution must report the assignment of the nonpunitive grade in time for VA to receive it before the earlier of the following dates is reached:
(2) 60 days from the last day of the enrollment period for which the nonpunitive grade is assigned.
(Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3684; Pub. L. 98-525)
(Approved by the Office of Management and Budget under control numbers 2900-0612 and 2900-0597)
[53 FR 34740, Sept. 8, 1988, as amended at 65 FR 61101, Oct. 16, 2001]