[Federal Register Volume 61, Number 39 (Tuesday, February 27, 1996)]
[Rules and Regulations]
[Pages 7217-7218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4196]



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DEPARTMENT OF DEFENSE

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AG23


Veterans Education: Implementation of the Veterans' Benefits Act 
of 1992 and the Department of Defense Authorization Act for Fiscal Year 
1993 in the Post-Vietnam Era Veterans' Educational Assistance Program

AGENCIES: Department of Defense and Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This final rule amends the educational assistance and 
educational benefits regulations of the Department of Veterans Affairs 
(VA). It makes changes concerning measurement of training time, 
duplication of benefits, advance payment for work study, and permission 
for some service members who participated in the Post-Vietnam Era 
Veterans' Educational Assistance Program (VEAP) to instead elect to 
receive benefits under the Montgomery GI Bill--Active Duty. These 
changes restate statutory requirements.

EFFECTIVE DATES: The effective dates of the changes made by this final 
rule are as follows:

October 23, 1992: Sec. 21.5058.
October 29, 1992: Secs. 21.5023, 21.5145, 21.5231, and 21.5250.
July 1, 1993: Sec. 21.5270.

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

SUPPLEMENTARY INFORMATION: Regulations concerning VA-administered 
educational assistance and educational benefits are contained in 38 CFR 
Part 21. The Veterans' Benefits Act of 1992 (Pub. L. 102-568) amends 
educational assistance provisions under VEAP and amends other 
provisions that affect work-study under that program. The National 
Defense Authorization Act for Fiscal Year 1993 (Pub. L. 102-484) allows 
some VEAP participants to receive benefits under the Montgomery GI 
Bill--Active Duty. This document contains a number of changes to the 
regulations which merely reflect certain changes made by these public 
laws. These changes to the regulations are as follows.
    Under Public Law 102-568, the limit on the amount of money that VA 
can pay in advance on a work-study contract has been changed. Formerly, 
that limit was 40 percent of the total amount payable under the 
contract. Now the limit is the lesser of 40 percent of the total amount 
payable under the contract or 50 times the applicable minimum hourly 
wage in effect on the date the contract is signed. Changes are made to 
38 CFR 21.5145 to reflect these statutory provisions.
    Public Law 102-484, among other things, provides that a veteran who 
has been discharged under the Voluntary Separation Incentive or Special 
Separation Benefit programs before October 23, 1992, was eligible on or 
before October 23, 1993 to elect to receive educational assistance 
under the Montgomery GI Bill--Active Duty in lieu of any other 
educational assistance, including VEAP. Changes are made to 
Sec. 21.5058 to reflect these statutory changes.
    Previously, Sec. 21.5023 allowed for veterans receiving assistance 
under the Government Employees' Training Act (GETA) also to receive 
assistance under VEAP if the VEAP training occurred other than during 
duty hours. However, under Pub. L. 102-568 payment under VEAP is now 
prohibited for veterans receiving assistance under GETA regardless of 
whether the veteran is a full-time or part-time employee. Changes are 
made to Sec. 21.5023 to reflect this statutory change.
    Several provisions of Public Law 102-568 apply to VEAP. These are 
prohibition of receipt of educational assistance while the veterans is 
training under the Service Members Occupational Conversion and Training 
Act; a change in the ending date of the award of educational assistance 
when the veterans die during the period covered by an advanced payment 
of educational assistance; prohibition of approval of a nonaccredited 
course offered by independent study and prohibition of approval of an 
enrollment in such a course; and measurement of nonaccredited courses 
not leading to a standard college degree. Changes are made to 38 CFR 
21.5231, 21.5250, and 21.5270 to reflect these changes.
    The effective dates of the various changes made by this final rule 
reflect the effective dates of the corresponding statutory changes.
    Nonsubstantive changes are made for purposes of clarity.
    This final rule reflects statutory changes and, therefore, is not 
subject to the provisions of 5 U.S.C. 552, or 553, including the notice 
and comment provisions.
    The Secretary of Veterans Affairs and the Secretary of Defense 
hereby certify that this final rule will not have a significant 
economic impact on a substantial number of small entities as they are 
defined in the Regulatory Flexibility Act, 5 U.S.C. 601-612. The 
changes made by the final rule restate statutory changes. Pursuant to 5 
U.S.C. 605(b), this final rule, therefore, is exempt from the initial 
and final regulatory flexibility analyses requirements of Secs. 603 and 
604.

    The Catalog of Federal Domestic Assistance number for the 
program affected by this final rule is 64.120.

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: October 11, 1995.
Jesse Brown,
Secretary of Veterans Affairs.
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 G 
is amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart G--Post-Vietnam Era Veterans' Educational Assistance Under 
38 U.S.C. Chapter 32

    1. The authority citation for part 21, subpart G is revised to read 
as follows:

    Authority: 38 U.S.C. 501(a), Chapter 32, unless otherwise noted.


Sec. 21.5023  [Amended]

    2. In Sec. 21.5023, paragraph (b) is amended by removing ``and 
whose full salary is being paid to him or her while so training''.


Sec. 21.5058  [Amended]

    3. In Sec. 21.5058, paragraph (a) is amended by adding the heading 
``General.''
    4. In Sec. 21.5058 paragraphs (b) and (c) are revised to read as 
follows: 

[[Page 7218]]



Sec. 21.5058  Resumption of participation.

* * * * *
    (b) Disenrollment in order to participate in other educational 
programs. A person who elects to disenroll in order to receive 
educational assistance allowance under 38 U.S.C. chapter 34 or to 
receive an officer adjustment benefit payable under Sec. 21.4703 may 
not reenroll if he or she has negotiated a check under the provisions 
of law governing the program elected in lieu of the Post-Vietnam Era 
Veterans' Educational Assistance Program. A person who elects to 
disenroll in order to receive educational assistance under the 
Montgomery GI Bill--Active Duty, as provided in Sec. 21.7045, may not 
reenroll.

(Authority: 38 U.S.C. 3018A, 3018B, 3202(1), 3222)

    (c) Reenrollment permitted following some disenrollments. (1) 
Except as provided in paragraph (b) of this section, a person who has 
disenrolled may reenroll, but will have to qualify again for minimum 
participation as described in Sec. 21.5052(a).
    (2) If a person does reenroll, he or she may ``repurchase'' 
entitlement by tendering previously refunded contributions which he or 
she received upon disenrollment, subject to the conditions of 
Sec. 21.5052(f).

(Authority: 38 U.S.C. 3221, 3222)

    5. In Sec. 21.5145, paragraph (e) is revised to read as follows:


Sec. 21.5145  Work-study program.

* * * * *
    (e) Payment in advance. VA will pay in advance an amount equal to 
the lesser of the following:
    (1) 40 percent of the total amount payable under the contract; or
    (2) An amount equal to 50 times the applicable minimum hourly wage 
in effect on the date contract is signed.

(Authority: 38 U.S.C. 3241, 3485)
* * * * *


Sec. 21.5231  [Amended]

    6. Section 21.5231, is amended by removing ``in the same manner as 
it is applied in the administration of chapters 34 and 36''.
    7. In Sec. 21.5250, the introductory text of paragraph (a) and 
paragraph (a)(3) are revised, and paragraph (a)(16) is added, to read 
as follows:


Sec. 21.5250  Courses.

    (a) In administering benefits payable under 38 U.S.C. chapter 32, 
VA and, where appropriate, the State approving agencies shall apply the 
following sections.
* * * * *
    (3) Section 21.4252--Courses precluded.
* * * * *
    (16) Section 21.4267--Approval of independent study.
* * * * *
    8. In Sec. 21.5270, paragraphs (b) and (j) are removed and 
reserved; and the introductory text and paragraph (c) are revised, to 
read as follows:


Sec. 21.5270  Assessment and pursuit of courses.

    In the administration of benefits payable under 38 U.S.C. chapter 
32, VA shall apply the following sections.
* * * * *
    (c) Section 21.4272--Collegiate course measurement.

(Authority: 38 U.S.C. 3241, 3688)
* * * * *
[FR Doc. 96-4196 Filed 2-26-96; 8:45 am]
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