[Federal Register Volume 59, Number 89 (Tuesday, May 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11079]


[[Page Unknown]]

[Federal Register: May 10, 1994]


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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21

RIN 2900-AF30

 

Veterans Benefits; Eligibility for the Montgomery GI Bill--Active 
Duty

AGENCY: Department of Veterans Affairs.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: The National Defense Authorization Act for Fiscal Year 1991 
provides additional ways in which an individual may become eligible for 
the Montgomery GI Bill--Active Duty. These regulations will acquaint 
the public with the way in which VA (the Department of Veterans 
Affairs) will administer these new provisions of law.

EFFECTIVE DATE: The amendments to the following regulations, like the 
sections of law they implement, are retroactively effective on October 
19, 1984: Secs. 21.7042(a)(5) (v) and (vi), 21.7042(b)(6) (v) and (vi), 
21.7042(b)(7)(i)(E) and (F), 21.7044(a)(4)(ii)(E) and (F), 
21.7044(b)(7)(v) and (vi), 21.7044(b)(8)(i)(E) and (F) and 
21.7072(b)(1)(iii) (D) and (E). The amendments to the remainder of the 
regulations, as well as the new sections Secs. 21.7045 and 21.7073, 
like the sections of law they implement, are retroactively effective on 
November 5, 1990.

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer (225), Assistant 
Director for Policy and Program Administration, Education Service, 
Veterans Benefits Administration, Department of Veterans Affairs, 810 
Vermont Avenue, NW., Washington, DC 20420, 202-233-2092.

SUPPLEMENTARY INFORMATION: On pages 39488 through 39493 of the Federal 
Register of July 23, 1993, there was published a notice of intent to 
amend 38 CFR part 21 in order to implement those provisions of the 
National Defense Authorization Act for Fiscal Year 1991 (Pub. L. 101-
510) which affect the Montgomery GI Bill--Active Duty. Interested 
people were given 30 days to submit comments, suggestions or 
objections. VA received no comments, suggestions or objections.
    In the proposal VA would have redesignated several sections and 
adopted a new Sec. 21.7073. However, after considering the fact that 
there are references to the current Secs. 21.7073, 21.7074 and 21.7075 
in various VA publications, all of which would have to be revised, VA 
has decided instead to include the material which was proposed as a new 
Sec. 21.7073 in the current Sec. 21.7073. This made many of the 
revisions which were proposed to Sec. 21.7072 unnecessary since those 
revisions merely inserted references to the newly designated sections. 
The current Secs. 21.7074 and 21.7075 will retain their present 
designations. None of the changes from the proposal are substantive. VA 
is adopting the remainder of the proposal without change.
    Sections 561, 562 and 563 of Public Law 101-510 contain provisions 
that will enable additional individuals to become eligible for the 
Montgomery GI Bill--Active Duty. This is done both by creating a new 
class of eligible veterans and by providing an additional type of 
discharge which will qualify veterans for the program. These 
regulations implement these sections of the act.
    The Secretary of Veterans Affairs has certified that these amended 
regulations will not have a significant economic impact on a 
substantial number of small entities as they are defined in the 
Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612. Pursuant to 5 
U.S.C. 605(b), the amended regulations, therefore, are exempt from the 
initial and final regulatory flexibility analyses requirements of 
sections 603 and 604.
    This certification can be made because the regulations affect only 
individuals. They will have no significant economic impact on small 
entities, i.e., small businesses, small private and nonprofit 
organizations and small governmental jurisdictions.
    VA finds that good cause exists for making the amendments to 
Secs. 21.7042(a)(5), 21.7042(b)(6), 21.7042(b)(7), 21.7044(a)(4), 
21.7044(b)(7), 21.7044(b)(8) and 21.7072(b)(1), like the provision of 
law they implement, retroactively effective on October 19, 1984. VA 
finds that good cause exists for making the remainder of the amendments 
as well as the new sections, Secs. 21.7045 and 21.7073a, like the 
provisions of law they implement, retroactively effective on November 
5, 1990. These regulations are intended to achieve a benefit for 
individuals. The maximum benefits intended in the legislation will be 
achieved through prompt implementation. Hence, a delayed effective date 
would be contrary to statutory design, would complicate administration 
of the provision of law, and might result in the denial of a benefit to 
someone who is entitled to it.

    The Catalog of Federal Domestic Assistance number for this 
program is 64.124.

List of Subjects in 38 CFR Part 21

    Civil rights, Claims, Education, Grant programs-education, Loan 
programs-education, Reporting and recordkeeping requirements, Schools, 
Veterans, Vocational education, Vocational rehabilitation.

    Approved: April 28, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
    For the reasons set out in the preamble, 38 CFR part 21, subpart K 
is amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart K--All Volunteer Force Educational Assistance Program (New 
GI Bill)

    1. The authority citation for part 21, subpart K continues to read 
as follows:

    Authority: 38 U.S.C. chapter 30, Pub. L. 98-525; 38 U.S.C. 501.

    2. In Sec. 21.7020 paragraph (b)(1)(iii) and its authority citation 
are added to read as follows:


Sec. 21.7020  Definitions.

* * * * *
    (b) Other definitions.
    (1) * * *
    (iii) When referring to individuals who, before November 30, 1989, 
had never served on active duty (as that term is defined by Sec. 3.6b 
of this title), the term ``active duty'' when used in this subpart 
includes full-time National Guard duty first performed after November 
29, 1989, by a member of the Army National Guard of the United States 
or the Air National Guard of the United States in the servicemember's 
status as a member of the National Guard of a State for the purpose of 
organizing, administering, recruiting, instructing or training the 
National Guard.

(Authority: 38 U.S.C. 3002(7); Pub. L. 101-510, sec. 563(b)) (Nov. 
5, 1990)
* * * * *
    3. In Sec. 21.7042 the introductory text is revised and its 
authority citation is added; paragraph (a)(5)(v) is revised, paragraph 
(a)(5)(vi) is added and the authority citation for paragraph (a) is 
revised; paragraph (b)(6)(v) is revised, paragraph (b)(6)(vi) is added 
and an authority citation for paragraph (b)(6) is added; paragraph 
(b)(7)(i)(E) is revised, paragraph (b)(7)(i)(F) and an authority 
citation for paragraph (b)(7)(i) are added and paragraph (f)(1) is 
revised and the authority citation for paragraph (f)(1) is revised to 
read as follows:


Sec. 21.7042  Basic eligibility requirements.

    An individual must meet the requirements of this section, 
Sec. 21.7044 or Sec. 21.7045 in order to be eligible for basic 
educational assistance. In determining whether an individual has met 
the service requirements of this section, VA will exclude any period 
during which the individual is not entitled to credit for service for 
the periods of time specified in Sec. 3.15.

(Authority: 38 U.S.C. 3011, 3012, 3018A; Pub. L. 101-510) (Nov. 5, 
1990)
* * * * *
    (a) Eligibility based solely on active duty. * * *
    (5) * * *
    (v) Involuntarily for the convenience of the government as a result 
of a reduction in force, as determined by the Secretary of the military 
department concerned in accordance with regulations prescribed by the 
Secretary of Defense or by the Secretary of Transportation with respect 
to the Coast Guard when it is not operating as a service in the Navy, 
or
    (vi) For a physical or mental condition that was not characterized 
as a disability and did not result from the individual's own willful 
misconduct but did interfere with the individual's performance of duty, 
as determined by the Secretary of each military department in 
accordance with regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation with respect to the Coast Guard when 
it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
100-689, Pub. L. 101-510) (Oct. 19, 1984)

    (b) Eligibility based on active duty service and service in the 
Selected Reserve.
    (6) * * *
    (v) Involuntarily, for convenience of the Government as a result of 
a reduction in force as determined by the Secretary of the military 
department concerned in accordance with regulations prescribed by the 
Secretary of Defense or by the Secretary of Transportation with respect 
to the Coast Guard when it is not operating as a service in the Navy, 
or
    (vi) For a physical or mental condition that was not characterized 
as a disability and did not result from the individual's own willful 
misconduct but did interfere with the individual's performance of duty, 
as determined by the Secretary of each military department in 
accordance with regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation with respect to the Coast Guard when 
it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
100-689, Pub. L. 101-510) (Oct. 19, 1984)

    (7) * * *
    (i) * * *
    (E) Involuntarily for the convenience of the Government as a result 
of a reduction in force, as determined by the Secretary of the military 
department concerned in accordance with regulations prescribed by the 
Secretary of Defense or by the Secretary of Transportation with respect 
to the Coast Guard when it is not operating as a service in the Navy, 
or
    (F) For a physical or mental condition that was not characterized 
as a disability and did not result from the individual's own willful 
misconduct but did interfere with the individual's performance of duty, 
as determined by the Secretary of each military department in 
accordance with regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation with respect to the Coast Guard when 
it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
100-689, Pub. L. 101-510) (Oct. 19, 1984)
* * * * *
    (f) Restrictions on establishing eligibility. (1) An individual 
who, after June 30, 1985, first becomes a member of the Armed Forces or 
first enters on active duty as a member of the Armed Forces, may elect 
not to receive educational assistance under 38 U.S.C. ch. 30. This 
election must be made at the time the individual initially enters on 
active duty as a member of the Armed Forces. An individual who makes 
such an election is not eligible for educational assistance under 38 
U.S.C. ch. 30 unless he or she withdraws the election as provided in 
paragraph (c) of this section or in Sec. 21.7045(b) of this part.

(Authority: 38 U.S.C. 3018, 3018A; Pub. L. 100-689, Pub. L. 101-510) 
(Nov. 5, 1990)
* * * * *
    4. In Sec. 21.7044 paragraph (a)(4)(ii)(E) is revised, paragraph 
(a)(4)(ii)(F) is added and the authority citation for paragraph (a)(4) 
is revised; paragraph (b)(7)(v) is revised and paragraph (b)(7)(vi) and 
an authority citation for paragraph (b)(7) are added; paragraph 
(b)(8)(i)(E) is revised and paragraph (b)(8)(i)(F) and an authority 
citation for paragraph (b)(8)(i) are added to read as follows:


Sec. 21.7044  Persons with 38 U.S.C. ch. 34 eligibility.

* * * * *
    (a) Eligibility based solely on active duty. * * *
    (4) * * *
    (ii) * * *
    (E) Involuntarily for convenience of the government as a result of 
a reduction in force, as determined by the Secretary of the military 
department concerned in accordance with regulations prescribed by the 
Secretary of Defense or by the Secretary of Transportation with respect 
to the Coast Guard when it is not operating as a service in the Navy, 
or;
    (F) For a physical or mental condition that was not characterized 
as a disability and did not result from the individual's own willful 
misconduct but did interfere with the individual's performance of duty, 
as determined by the Secretary of each military department in 
accordance with regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation with respect to the Coast Guard when 
it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
100-689, Pub. L. 101-510) (Oct. 19, 1984)
* * * * *
    (b) Eligibility based on combined active duty service and service 
in the Selected Reserve.
* * * * *
    (7) * * *
    (v) Involuntarily, for the convenience of the government as a 
result of a reduction in force as determined by the Secretary of the 
military department concerned in accordance with regulations prescribed 
by the Secretary of Defense or by the Secretary of Transportation with 
respect to the Coast Guard when it is not operating as a service in the 
Navy, or
    (vi) For a physical or mental condition that was not characterized 
as a disability and did not result from the individual's own willful 
misconduct but did interfere with the individual's performance of duty, 
as determined by the Secretary of each military department in 
accordance with regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation with respect to the Coast Guard when 
it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3012; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
100-689, Pub. L. 101-510) (Oct. 19, 1984)

    (8) * * *
    (i) * * *
    (E) Is discharged involuntarily for the convenience of the 
government as a result of a reduction in force, as determined by the 
Secretary of the military department concerned in accordance with 
regulations prescribed by the Secretary of Defense or by the Secretary 
of Transportation with respect to the Coast Guard when it is not 
operating as a service in the Navy, or
    (F) Is discharged for a physical or mental condition that was not 
characterized as a disability and did not result from the individual's 
own willful misconduct but did interfere with the individual's 
performance of duty, as determined by the Secretary of each military 
department in accordance with regulations prescribed by the Secretary 
of Defense or by the Secretary of Transportation with respect to the 
Coast Guard when it is not operating as a service in the Navy; or

(Authority: 38 U.S.C. 3012; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
100-689, Pub. L. 101-510) (Oct. 19, 1984)
* * * * *
    5. Section 21.7045 and its authority citations are added to read as 
follows:


Sec. 21.7045  Eligibility based on involuntary separation.

    An individual who fails to meet the eligibility requirements found 
in Sec. 21.7042 or Sec. 21.7044 nevertheless will be eligible for 
educational assistance if he or she meets the requirements of this 
section.
    (a) Service requirements. The individual must--
    (1) Be on active duty or full-time National Guard duty on September 
30, 1990, and
    (2) After February 2, 1991, be involuntarily separated, as that 
term is defined in 10 U.S.C. 1141, with an honorable discharge.

(Authority: 10 U.S.C. 1141, 38 U.S.C. 3018A; Pub. L. 101-510) (Nov. 
5, 1990)

    (b) Required election. (1) If the individual elected not to receive 
educational assistance under 38 U.S.C. ch. 30, as provided in 
Sec. 21.7042(f), he or she must irrevocably withdraw that election. The 
withdrawal must--
    (i) Occur before the involuntary separation, and
    (ii) Be pursuant to procedures which the Secretary of each military 
department shall provide in accordance with regulations prescribed by 
the Secretary of Defense or which the Secretary of Transportation shall 
provide with respect to the Coast Guard when it is not operating as a 
service in the Navy.
    (2) If the individual is a participant in the educational program 
provided in 38 U.S.C. ch. 32, the individual must make an irrevocable 
election to receive educational assistance under 38 U.S.C. ch. 30 
rather than under 38 U.S.C. ch. 32. Such an election must--
    (i) Occur before the individual is involuntarily separated, and
    (ii) Be pursuant to procedures which the Secretary of each military 
department shall provide in accordance with regulations prescribed by 
the Secretary of Defense or which the Secretary of Transportation shall 
provide with respect to the Coast Guard when it is not operating as a 
service in the Navy.
    (3) If the individual is not described in either paragraph (b)(1) 
or (b)(2) of this section, he or she must make an irrevocable election 
to receive educational assistance under 38 U.S.C. ch. 30. This election 
must--
    (i) Occur before the individual is involuntarily separated, and
    (ii) Be pursuant to procedures which the Secretary of each military 
department shall provide in accordance with regulations prescribed by 
the Secretary of Defense or which the Secretary of Transportation shall 
provide with respect to the Coast Guard when it is not operating as a 
service in the Navy.

(Authority: 38 U.S.C. 3018A(a); Pub. L. 101-510) (Nov. 5, 1990)

    (c) Reduction in basic pay. The basic pay of anyone who makes one 
of the irrevocable elections described in paragraph (b) of this section 
must be reduced by $1,200. If through error or other reason the basic 
pay of an individual described in paragraphs (a) and (b) of this 
section is not reduced by $1,200, the failure to make the reduction 
will not affect the individual's eligibility for educational assistance 
under 38 U.S.C. ch. 30.

(Authority: 38 U.S.C. 3018A(b); Pub. L. 101-510) (Nov. 5, 1990)

    (d) Educational requirement. (1) Before the date on which VA 
receives the individual's application for benefits, the individual must 
have completed successfully either--
    (i) The requirements of a secondary school diploma (or equivalency 
certificate), or
    (ii) 12 semester hours (or the equivalent) in a program of 
education leading to a standard college degree.
    (2) If a veteran has not met the requirements of paragraph (d)(1) 
of this section at the time of his or her application for educational 
assistance, he or she will be permitted to apply at a later date after 
those requirements are met.

(Authority: 38 U.S.C. 3018A(a); Pub. L. 101-510) (Nov. 5, 1990)

    6. In Sec. 21.7072 paragraph (b)(1)(iii)(D) is revised, paragraph 
(b)(1)(iii)(E) is added and the authority citation for paragraph (b)(1) 
is revised to read as follows:


Sec. 21.7072  Entitlement to basic educational assistance.

* * * * *
    (b) Entitlement: individual discharged for service-connected 
disability, a medical condition which preexisted service, hardship or 
involuntarily for the convenience of the government as a result of a 
reduction in force. (1) * * *
    (iii) * * *
    (D) Involuntarily for convenience of the government as a result of 
a reduction in force, as determined by the Secretary of the military 
department concerned in accordance with regulations prescribed by the 
Secretary of Defense or by the Secretary of Transportation with respect 
to the Coast Guard when it is not operating as a service in the Navy, 
or;
    (E) For a physical or mental condition that was not characterized 
as a disability and did not result from the individual's own willful 
misconduct but did interfere with the individual's performance of duty, 
as determined by the Secretary of each military department in 
accordance with regulations prescribed by the Secretary of Defense or 
by the Secretary of Transportation with respect to the Coast Guard when 
it is not operating as a service in the Navy.

(Authority: 38 U.S.C. 3013(a))
* * * * *
    7. Section 21.7073 is revised to read as follows:


Sec. 21.7073  Entitlement for some individuals who establish 
eligibility during the open period or who establish eligibility before 
involuntary separation.

    (a) Individuals who establish eligibility during the open period. 
(1) The provisions of this paragraph apply to a veteran or 
servicemember who:
    (i) Establishes eligibility by withdrawing an election not to 
enroll as provided in Sec. 21.7042(c);
    (ii) Has less than $1,200 deducted from his or her military pay; 
and
    (iii) Before completing the period of service which the individual 
was obligated to service on December 1, 1988, the individual:
    (A) Is discharged or released from active duty for a service-
connected disability, a medical condition which preexisted that 
service, or hardship; or
    (B) Is discharged or released from active duty for the convenience 
of the Government after completing not less than 20 months of that 
period of service, if that period was less than three years, or 30 
months, if that period was at least three years; or
    (C) Is involuntarily discharged or released from active duty for 
convenience of the Government as a result of a reduction in force, as 
determined by the Secretary concerned in accordance with regulations 
prescribed by the Secretary of Defense or by the Secretary of 
Transportation with respect to the Coast Guard when it is not operating 
as a service in the Navy.

(Authority: 38 U.S.C. 3301(c))

    (2) A veteran described in paragraph (a)(1) of this section is 
entitled to a number of months of basic educational assistance (or 
equivalent thereof in part-time basic educational assistance) equal to 
the lesser of:
    (i) A number of months determined by multiplying 36 by a fraction 
the numerator of which is the amount by which the basic pay of the 
individual has been reduced as provided in Sec. 21.7042(e)(2) and the 
denominator of which is $1,200, or
    (ii) The number of months the veteran has served on continuous 
active duty after June 30, 1985.

(Authority: 38 U.S.C. 3013(c))

    (b) Individuals who establish eligibility following involuntary 
separation. (1) The provisions of this paragraph apply to a veteran who 
establishes eligibility by meeting the provisions of Sec. 21.7045 of 
this part.

(Authority: 38 U.S.C. 3018A)

    (2) A veteran described in paragraph (b)(1) of this section is 
entitled to a number of months of basic educational assistance (or 
equivalent thereof in part-time basic educational assistance) equal to 
the lesser of--
    (i) 36 months, or
    (ii) The number of months the veteran served on active duty.

(Authority: 38 U.S.C. 3013)

    8. In Sec. 21.7136 paragraph (a)(1) and its authority citation are 
revised, the introductory text of paragraph (c) is revised, and 
paragraphs (d) (1) and (2) and (e) and the authority citations for 
paragraphs (d) and (e) are added to read as follows:


Sec. 21.7136  Rates of payment of basic educational assistance.

    (a) Rates. (1) Except as otherwise provided in this section and 
Sec. 21.7137, the monthly rate of the basic educational assistance 
payable to a veteran is the rate stated in these tables. The rates in 
these tables and the other rates in this paragraph also apply to a 
veteran who formerly was eligible under 38 U.S.C. ch. 34, and who has 
received a record-purpose charge against his or her entitlement under 
that chapter equal to the entitlement he or she had remaining on 
December 31, 1989. The rates in these tables as well as the other rates 
listed in this paragraph always apply to a veteran who establishes 
eligibility under Sec. 21.7045 before an involuntary separation, 
regardless of the length of the veteran's initial obligated period of 
active duty or whether or not the veteran was once eligible for 
educational assistance allowance under 38 U.S.C. ch. 34.
    (i) For training which occurred before October 1, 1991, the 
following table applies.

------------------------------------------------------------------------
              Training                           Monthly rate           
------------------------------------------------------------------------
Full time..........................  $300.                              
\3/4\ time.........................  225.                               
\1/2\ time.........................  150.                               
Less than \1/2\ but more than \1/4\  150 See Sec. 21.7136 (d) or (e).   
 time.                                                                  
\1/4\ time.........................  75 See Sec. 21.7136 (d) or (e).    
------------------------------------------------------------------------

    (ii) For training which occurs after September 30, 1991, the 
following table applies.

------------------------------------------------------------------------
             Training                            Monthly rate           
------------------------------------------------------------------------
Full time..........................  $350.00.                           
\3/4\ time.........................  262.50.                            
\1/2\ time.........................  175.00.                            
Less than \1/2\ but more than \1/4\  175.00 See Sec. 21.7136 (d) or (e).
 time.                                                                  
\1/4\ time or less.................  87.50 See Sec. 21.7136 (d) or (e). 
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015)
* * * * *
    (c) Increase in basic educational assistance rates (``kicker''). 
The Secretary concerned may increase the amount of basic educational 
assistance payable to an individual who has a skill or specialty which 
the Secretary concerned designates as having a critical shortage of 
personnel or for which it is difficult to recruit. The amount of the 
increase is set by the Secretary concerned, but (except as provided in 
paragraph (e) of this section)--
* * * * *
    (d) Less than one-half-time training and rates for servicemembers. 
The monthly rate for a veteran who is pursuing a course on a less than 
one-half time basis or the monthly rate for a servicemember who is 
pursuing a program of education is the lesser of--
    (1) The monthly rate stated in either paragraph (a) or (b) of this 
section (as determined by the veteran's or servicemember's initial 
obligated period of active duty) plus any additional amounts that may 
be due under paragraph (c) or (e) of this section, or
    (2) The monthly rate of the cost of the course.
* * * * *
(Authority: 38 U.S.C. 3015, 3032)

    (e) Increase in basic educational assistance rates (``kicker'') for 
those eligible under Sec. 21.7045. A veteran who formerly was eligible 
to receive educational assistance under 38 U.S.C. ch. 32, and becomes 
eligible for educational assistance under 38 U.S.C. ch. 30 as described 
in Sec. 21.7045(b)(2), may receive an increase in basic educational 
assistance allowance (kicker). The increase will be determined as 
follows.
    (1) The basis of the increase will be that portion of the amount of 
money--
    (i) Which remains in the VEAP fund after the veteran has been paid 
all assistance due him or her under 38 U.S.C. ch. 32 and refunded all 
of his or her contributions to the VEAP fund, and--
    (ii) Which represents the Secretary of Defense's additional 
contributions for the veteran as stated in Sec. 21.5132(b)(3) of this 
part.
    (2) For a student pursuing a program of education by residence 
training--
    (i) VA will determine the monthly rate of the increase by dividing 
the amount of money described in paragraph (e)(1) of this section by 
the number of months of entitlement to educational assistance under 38 
U.S.C. chapter 30 which the veteran has at the time his eligibility for 
benefits under 38 U.S.C. chapter 30 is first established;
    (ii) VA will use the monthly rate of the increase determined in 
paragraph (e)(2)(i) of this section if the veteran is pursuing his or 
her program full time;
    (iii) VA will multiply the monthly rate determined by paragraph 
(e)(2)(i) of this section by .75 for a student pursuing his or her 
program three-quarter time;
    (iv) VA will multiply the monthly rate determined by paragraph 
(e)(2)(i) of this section by .5 for a student pursuing his or her 
program half time; and
    (v) VA will multiply the monthly rate determined by paragraph 
(e)(2)(i) of this section by .25 for a student pursuing his or her 
program less than one-half time.
    (3) For a veteran pursuing cooperative training VA will multiply 
the rate determined by paragraph (e)(2)(i) of this section by .8.
    (4) For a veteran pursuing a program of apprenticeship or other on-
job training VA will multiply the monthly rate determined by paragraph 
(e)(2)(i) of this section
    (i) By .75 for a veteran in the first six months of pursuit of 
training,
    (ii) By .55 for a veteran in the second six months of pursuit of 
training, and
    (ii) By .35 for a veteran in the remaining months of pursuit of 
training.

(Authority: 38 U.S.C. 3015(e))

[FR Doc. 94-11079 Filed 5-9-94; 8:45 am]
BILLING CODE 8320-01-P