38 CFR §21.182

1. (a)Purpose. The purposes of applicant status are to:
   1. (1)Process a veteran's claim for assistance under Chapter 31 in a timely manner; and
   2. (2)Identify service-disabled veterans whom VA should contact individually to increase their awareness and understanding of how they may benefit from services furnished under Chapter 31.
2. (b)Assignment to applicant status. VA will assign a veteran's records to applicant status when either:
   1. (1)VA receives a formal or informal application from a veteran for services under Chapter 31; or
   2. (2)The Veteran Readiness and Employment (VR&E) Division:
      1. (i)Advises a veteran in writing of the veteran's potential eligibility for Chapter 31 services, or
      2. (ii)Is informed that the veteran has been advised in writing of his or her potential eligibility for Chapter 31 services by other VA elements.
3. (c)Termination of applicant status. Applicant status will be terminated when:
   1. (1)An appointment for an initial evaluation has been kept by the veteran; or
   2. (2)The veteran's service-connected disability is reduced to a noncompensable degree; or
   3. (3)The veteran's service-connected disability is severed; or
   4. (4)The veteran's application is invalid because of fraud or error; or
   5. (5)The veteran withdraws his or her claim, or otherwise indicates that no further assistance is desired.
4. (d)Transfer of terminated cases to discontinued status. Each instance in which a veteran's case is terminated for reasons described in paragraph (c)(4) or (5) of this section shall be placed in discontinued status.