[Federal Register Volume 60, Number 173 (Thursday, September 7, 1995)]
[Rules and Regulations]
[Pages 46533-46535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22004]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AG98


Veterans Education: Increases in Rates Payable in the Educational 
Assistance Test Program

AGENCY: Department of Defense and Department of Veterans Affairs.

ACTION: Final rule.

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

SUMMARY: The law provides that rates of subsistence allowance and 
educational assistance payable under the Educational Assistance Test 
Program shall be adjusted annually by the Secretary of Defense based 
upon the average actual cost of attendance at public institutions of 
higher education in the twelve-month period since the rates were last 
adjusted. After consultation with the Department of Education, the 
Department of Defense has concluded that the rates for the 1991-92 
academic year should be increased by 6% over the rates payable for the 
1990-91 academic year; the rates for the 1992-93 academic year should 
be increased by 8% over the rates payable for the 1991-92 academic 
year; the rates for the 1993-94 academic year should be increased by 7% 
over the rates payable for the 1992-93 academic year; and the rates for 
the 1994-95 academic year should be increased by 8% over the rates 
payable for the 1993-94 academic year. The regulations dealing with 
these rates are amended accordingly.

EFFECTIVE DATE: September 7, 1995.

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director 
for Policy and Program Administration, Education Service, Veterans 
Benefits Administration, 202-273-7187.

SUPPLEMENTARY INFORMATION: The law (10 U.S.C. 2145) provides that the 
Secretary of Defense shall adjust the amount of educational assistance 
which may be provided in any academic year under the Educational 
Assistance Test Program, and the amount of subsistence allowance 
authorized under that program. The adjustment is to be based upon the 
twelve-month increase in the average actual cost of attendance at 
public institutions of higher education. As required by law, the 
Department of Defense has consulted with the Department of Education. 
The Department of Defense has concluded that these costs increased by 
6% in the 1990-91 academic year, by 8% in the 1991-92 academic year, by 
7% in the 1992-93 academic year, and by 8% in the 1993-94 academic 
year. Accordingly, this revision changes 38 CFR 21.5820 and 21.5822 to 
reflect each increase in the rates payable in the subsequent academic 
year.

Administrative Procedure Act

    Pursuant to 5 U.S.C. 553 there is good cause for finding that 
notice and public procedure are impractical, unnecessary, and contrary 
to the public interest and there is good cause for dispensing with a 30 
day delay of the effective date. The rates of subsistence allowance and 
educational assistance payable under the Educational Assistance Test 
program are determined based on a statutory formula and, in essence, 
the calculation of rates merely constitute a non discretionary 
ministerial act.
    The Secretary of Veterans Affairs and the Secretary of Defense have 
certified that these amended regulations, if promulgated, 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 the 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 amended regulations 
directly 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.
    There is no Catalog of Federal Domestic Assistance number for the 
program affected by these regulations.

List of Subjects in 38 CFR Part 21

    Civil rights, claims, Education, Grant programs-education, Loan 
programs-education, Reporting and record keeping requirements, Schools, 
Veterans, Vocational education, Vocational rehabilitation.

    Approved: December 27, 1994.
Jesse Brown,
Secretary of Veterans Affairs.

    Approved: August 28, 1995.

Samuel E. Ebbesen,
Lieutenant General, USA, Deputy Assistant Secretary (Military Personnel 
Policy), Department of Defense.

    For the reasons set out in the preamble, 38 CFR part 21, subpart H 
is amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart H--Educational Assistance Test Program

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

    Authority: 10 U.S.C. Ch. 107, Pub. L. 96-342.

    2. In Sec. 21.5820, paragraph (b) is revised to read as follows:


Sec. 21.5820  Educational assistance.

* * * * *
    (b) Amount of educational assistance. (1) The amount of educational 
assistance shall be adjusted annually by regulation.
    (i) For the 1991-92 standard academic year the amount of this 
assistance may not exceed $2,087.
    (ii) For the 1992-93 standard academic year the amount of this 
assistance may not exceed $2,254.
    (iii) For the 1993-94 standard academic year the amount of this 
assistance may not exceed $2,412.
    (iv) For the 1994-95 standard academic year the amount of this 
assistance may not exceed $2,605.
    (2) The amount of educational assistance payable to a 
servicemember, veteran, spouse or dependent child of a living 
servicemember or veteran for an 

[[Page 46534]]
enrollment period shall be the lesser of the following:
    (i) The total charges for educational expenses the eligible 
individual incurs during the enrollment period.
    (ii) For the 1991-92 standard academic year an amount determined 
by:
    (A) Multiplying the number of whole months in the enrollment period 
by $231.89 for a full-time student or by $115.94 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$7.73 for a full-time student or by $115.94 for a part-time student; 
and
    (C) Adding the two results. If the enrollment period is as long or 
longer than a standard academic year, this amount will be decreased by 
1 cents for a full-time student and increased by 4 cents for a part-
time student.
    (iii) For the 1992-93 standard academic year an amount determined 
by:
    (A) Multiplying the number of whole months in the enrollment period 
by $250.44 for a full-time student or by $125.22 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$8.35 for a full-time student or by $4.17 for a part-time student; and
    (C) Adding the two results. If the enrollment period is as long or 
longer than a standard academic year, this amount will be increased by 
4 cents for a full-time student and increased by 2 cents for a part-
time student.
    (iv) For the 1993-94 standard academic year an amount determined 
by:
    (A) Multiplying the number of whole months in the enrollment period 
by $268.00 for a full-time student or by $134.00 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$8.93 for a full-time student or by $4.47 for a part-time student; and
    (C) Adding the two results.
    (v) For the 1994-95 standard academic year an amount determined by:
    (A) Multiplying the number of whole months in the enrollment period 
by $289.44 for a full-time student or by $144.72 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$9.65 for a full-time student or by $4.82 for a part-time student; and
    (C) Adding the two results. If the enrollment period is as long or 
longer than a standard academic year, this amount will be increased by 
4 cents for a full-time student and increased by 2 cents for a part-
time student.
    (3) The amount of educational assistance payable to each surviving 
spouse or dependent child of a decreased servicemember or veteran for 
an enrollment period shall be the lesser of the following:
    (i) The total charges for educational expenses the eligible 
individual incurs during the enrollment period.
    (ii) For the 1991-92 standard academic year an amount determined 
by:
    (A) Multiplying the number of whole months in the enrollment period 
by $231.89 for a full-time student or by $115.94 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$7.73 for a full-time student or by $3.86 for a part-time student;
    (C) Adding the two results. If the enrollment period is as long or 
longer than a standard academic year, this amount will be decreased by 
1 cents for a full-time student and increased by 4 cents for a part-
time student; and
    (D) Dividing the amount determined in paragraph (b)(3)(ii)(C) of 
this section by the number of the deceased veteran's dependents 
receiving educational assistance for that enrollment period. If one or 
more dependents is receiving educational assistance for part of the 
enrollment period, the amount calculated in paragraph (b)(3)(ii)(C) of 
this section will be prorated on a daily basis. The amount for each day 
when more than one dependent is receiving educational assistance will 
be divided by the number of dependents receiving educational assistance 
on that day. The total amount for the days when only one dependent is 
receiving educational assistance will not be divided.
    (iii) For the 1992-93 standard academic year an amount determined 
by:
    (A) Multiplying the number of whole months in the enrollment period 
by $250.44 for full-time student or by $125.22 for a part-time student;
    (B) Multiplying any additional days in the enrollment period by 
$8.35 for a full-time student or by $4.17 for a part-time student;
    (C) Adding the two results. If the enrollment period is as long or 
longer than a standard academic year, this amount will be increased by 
4 cents for a full-time student and increased by 2 cents for a part-
time student; and
    (D) Dividing the amount determined in paragraph (b)(3)(iii)(C) of 
this section by the number of the deceased veteran's dependents 
receiving educational assistance for that enrollment period. If one or 
more dependents is receiving educational assistance for part of the 
enrollment period, the amount calculated in paragraph (b)(3)(iii)(C) of 
this section will be prorated on a daily basis. The amount for each day 
when more than one dependent is receiving educational assistance will 
be divided by the number of dependents receiving educational assistance 
on that day. The total amount for the days when only one dependent is 
receiving educational assistance will not be divided.
    (iv) For the 1993-94 standard academic year an amount determined 
by:
    (A) Multiplying the number of whole months in the enrollment period 
by $268.00 for a full-time student or by $134.00 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$8.93 for a full-time student or by $4.47 for a part-time student;
    (C) Adding the two results; and
    (D) Dividing the amount determined in paragraph (b)(3)(iv)(C) of 
this section by the number of the deceased veteran's dependents 
receiving educational assistance for that enrollment period. If one or 
more dependents is receiving educational assistance for part of the 
enrollment period, the amount calculated in paragraph (b)(3)(iv)(C) of 
this section will be prorated on a daily basis. The amount for each day 
when more than one dependent is receiving educational assistance will 
be divided by the number of dependents receiving educational assistance 
on that day. The total amount for the days when only one dependent is 
receiving educational assistance will not be divided.
    (v) For the 1994-95 standard academic year an amount determined by:
    (A) Multiplying the number of whole months in the enrollment period 
by $289.44 for a full-time student or by $144.72 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$9.65 for a full-time student or by $4.82 for a part-time student;
    (C) Adding the two results. If the enrollment period is as long or 
longer than a standard academic year, this amount will be increased by 
4 cents for a full-time student and increased by 2 cents for a part-
time student; and
    (D) Dividing the amount determined in paragraph (b)(3)(v)(C) of 
this section by the number of the deceased veteran's dependents 
receiving educational assistance for that enrollment period. If one or 
more dependents is receiving educational assistance for part of the 
enrollment period, the amount calculated in paragraph (b)(3)(v)(C) of 
this section will be prorated on a daily basis. The amount for each day 
when more than one dependent is receiving educational assistance will 
be divided by the number of dependents receiving 

[[Page 46535]]
educational assistance on that day. The total amount for the days when 
only one dependent is receiving educational assistance will be divided.
* * * * *
    3. In Sec. 21.5822, paragraphs (b)(1)(i), (b)(1)(ii), (b)(2)(i), 
and (b)(2)(ii) are revised, to read as follows:


Sec. 21.5822  Subsistence allowance.

* * * * *
    (b) Amount of subsistence allowance. (1) * * *
    (i) If a person is pursuing a course of instruction on a full-time 
basis, his or her subsistence allowance is:
    (A) $520 per month for training pursued during the 1991-92 academic 
year;
    (B) $562 per month for training pursued during the 1992-93 academic 
year;
    (C) $601 per month for training pursued during the 1993-94 academic 
year; and
    (D) $649 per month for training pursued during the 1994-95 academic 
year.
    (ii) If a person is pursuing a course of instruction on other than 
a full-time basis, his or her subsistence allowance is:
    (A) $260 per month for training pursued during the 1991-92 academic 
year;
    (B) $281 per month for training pursued during the 1992-93 academic 
year;
    (C) $300.50 per month for training pursued during the 1993-94 
academic year; and
    (D) $324.50 per month for training pursued during the 1994-95 
academic year.
* * * * *
    (2) * * *
    (i) VA shall determine the monthly rate of subsistence allowance 
payable to a person for a day during which he or she is pursuing a 
course of instruction full-time as follows:
    (A) For the 1991-92 academic year VA will divide $520 per month by 
the number of the deceased veteran's dependents pursuing a course of 
instruction on that day;
    (B) For the 1992-93 academic year VA will divide $562 per month by 
the number of the deceased veteran's dependents pursuing a course of 
instruction on that day;
    (C) For the 1993-94 academic year VA will divide $601 per month by 
the number of the deceased veteran's dependents pursuing a course of 
instruction on that day; and
    (D) For the 1994-95 academic year VA will divide $649 per month by 
the number of the deceased veteran's dependents pursuing a course of 
instruction on that day.
    (ii) VA shall determine the monthly rate of subsistence allowance 
payable to a person for a day during which he or she is pursuing a 
course of instruction on other than full-time basis as follows:
    (A) For the 1991-92 academic year VA will divide $281 per month by 
the number of the deceased veteran's dependents pursuing a course of 
instruction on that day;
    (B) For the 1992-93 academic year VA will divide $281 per month by 
the number of the deceased veteran's dependents pursuing a course of 
instruction on that day;
    (C) For the 1993-94 academic year VA will divide $300.50 per month 
by the number of the deceased veteran's dependents pursuing a course of 
instruction on that day; and
    (D) For the 1994-95 academic year VA will divide $324.50 per month 
by the number of the deceased veteran's dependents pursuing a course of 
instruction on that day.
* * * * *
[FR Doc. 95-22004 Filed 9-6-95; 8:45 am]
BILLING CODE 8320-01-P