Federal Register, Volume 62 Issue 60 (Friday, March 28, 1997)

[Federal Register Volume 62, Number 60 (Friday, March 28, 1997)]
[Rules and Regulations]
[Pages 14823-14826]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7832]

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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21

RIN 2900-AI55

Veterans Education: Increase in Rates Payable Under the
Montgomery GI Bill--Active Duty

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: By statute, the monthly rates of basic educational assistance
payable to veterans and servicemembers under the Montgomery GI Bill--
Active Duty must be adjusted each fiscal year. In accordance with the
statutory formula, the regulations governing rates of basic educational
assistance payable under the Montgomery GI Bill--Active Duty for fiscal
year 1997 (October 1, 1996, through September 30, 1997) are changed to
show a 2.7% increase in these rates. Furthermore, the Veterans'
Benefits Improvements Act of 1996 provides that the lower rate of
educational assistance payable to veterans pursuing cooperative
training was abolished for most veterans training under the Montgomery
GI Bill--Active Duty effective October 9, 1996. They will be paid at
the same rate as those veterans pursuing residence training. The
regulations are changed to conform to statutory requirements.

DATES: This final rule is effective March 28, 1997. However, the
changes in rates are applied retroactively to conform to statutory
requirements. For more information concerning the dates of application,
see the SUPPLEMENTARY INFORMATION section.

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

SUPPLEMENTARY INFORMATION: Under the formula mandated by 38 U.S.C.
3015(g) for fiscal year 1997, the rates of basic educational assistance
under the Montgomery GI Bill--Active Duty payable to students pursuing
a program of education full time must be increased by the percentage
that the total of the monthly Consumer Price Index-W for July 1, 1995,
through June 30, 1996, exceeds the total of the monthly Consumer Price
Index-W for July 1, 1994, through June 30, 1995. This is 2.7%.
It should be noted that some veterans will receive an increase in
monthly

[[Page 14824]]

payments that will be less than 2.7%. The increase does not apply to
additional amounts payable by the Secretary of Defense to individuals
with skills or a specialty in which there is a critical shortage of
personnel (so-called ``kickers''). It does not apply to amounts payable
for dependents. Veterans who previously had eligibility under the
Vietnam Era GI Bill receive monthly payments that are in part based
upon basic educational assistance and in part based upon the rates
payable under the Vietnam Era GI Bill. Only that portion attributable
to basic educational assistance is increased by 2.7%.
Although 38 U.S.C. 3015(g) requires only that the full-time rates
be increased, these revisions include increases for other training
also. Monthly rates payable to veterans in apprenticeship or other on-
job training are set by statute at a given percentage of the full-time
rate. Hence, any rise in the full-time rate automatically requires an
increase in the rates for such training.
38 U.S.C. 3015 (a) and (b) require that the Department of Veterans
Affairs (VA) pay part-time students at appropriately reduced rates.
Since the first student became eligible for assistance under the
Montgomery GI Bill--Active Duty in 1985, VA has paid three-quarter-time
students and one-half-time students at 75% and 50% of the full-time
rate, respectively. Students pursuing a program of education at less
than one-half but more than one-quarter-time have had their payments
limited to 50% or less of the full-time rate. Similarly, students
pursuing a program of education at one-quarter-time or less have had
their payments limited to 25% or less of the full-time rate. Changes
are made consistent with the authority and formula described in this
paragraph.
Before the enactment on October 9, 1996, of the Veterans' Benefits
Improvements Act of 1996 (Pub. L. 104-275), a veteran pursuing a
cooperative course under the Montgomery GI Bill--Active Duty was paid
educational assistance at 80% of the monthly rate payable to a
similarly circumstanced veteran in residence training, provided he or
she was not previously eligible for educational assistance under the
Vietnam Era GI Bill. This statutory provision was reflected in the
regulations. The Veterans' Benefits Improvements Act of 1996 eliminated
this different rate so that, effective October 9, 1996, veterans in
cooperative training who were not previously eligible for educational
assistance under the Vietnam Era GI Bill receive the same monthly rate
as veterans in residence training. However, veterans training under the
Montgomery GI Bill--Active Duty who were previously eligible under the
Vietnam Era GI Bill receive educational assistance that is in part
based upon the rates payable under the Vietnam Era GI Bill. Since a
lower rate was payable for cooperative training under the Vietnam Era
GI Bill than was payable for residence training, there will continue to
be a lower rate payable under the Montgomery GI Bill--Active Duty to
these veterans for cooperative training. 38 CFR 21.7136 and 21.7137 are
changed accordingly.
Nonsubstantive changes also are made for the purpose of clarity.
The changes set forth in this final rule are effective from the
date of publication, but the changes in rates are applied retroactively
from October 1, 1996, or October 9, 1996, as respectively set out in
the regulations, in accordance with the applicable statutory provisions
discussed above.
Substantive changes made by this final rule merely reflect
statutory requirements and adjustments made based on previously
established formulas. Accordingly, there is a basis for dispensing with
prior notice and comment and delayed effective date provisions of 5
U.S.C. 552 and 553.
The Secretary of Veterans Affairs hereby certifies 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, and does not directly affect small
entities. This final rule directly affects only individuals. Pursuant
to 5 U.S.C. 605(b), this final rule, therefore, is exempt from the
initial and final regulatory flexibility analyses requirements of
sections 603 and 604.

The Catalog of Federal Domestic Assistance number for the
program affected by this final rule is 64.124.

List of Subjects in 38 CFR Part 21

Administrative practice and procedure, Armed forces, Civil rights,
Claims, Colleges and universities, Conflict of interests, Defense
Department, Education, Employment, Grant programs-education, Grant
programs-veterans, Health care, Loan programs-education, Loan programs-
veterans, Manpower training programs, Reporting and recordkeeping
requirements, Schools, Travel and transportation expenses, Veterans,
Vocational education, Vocational rehabilitation.

Approved: January 27, 1997.
Jesse Brown,
Secretary of Veterans Affairs.

For the reasons set out above, 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
(Montgomery GI Bill--Active Duty)

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

Authority: 38 U.S.C. 501(a), chs. 30, 36, unless otherwise
noted.

2. In Sec. 21.7136, paragraphs (b), (c)(1), (c)(2), (c)(3), (d)(1)
introductory text, (d)(2) introductory text, (d)(5), (d)(6), and (f)(3)
are revised, to read as follows:

Sec. 21.7136 Rates of payment of basic educational assistance.

* * * * *
(b) Rates. (1) Except as elsewhere provided in this section or in
Sec. 21.7139, the monthly rate of basic educational assistance payable
for training that occurs after September 30, 1996, and before October
1, 1997, to a veteran whose service is described in paragraph (a) of
this section is the rate stated in the following table.

------------------------------------------------------------------------
Monthly
Training rate
------------------------------------------------------------------------
Full time.................................................... $427.87
\3/4\ time................................................... 320.90
\1/2\ time................................................... 213.94
Less than \1/2\ but more than \1/4\ time..................... 213.94
\1/4\ time or less........................................... 106.97
------------------------------------------------------------------------

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

(2) If a veteran's service is described in paragraph (a) of this
section, the monthly rate payable to the veteran for pursuit of
apprenticeship or other on-job training that occurs after September 30,
1996, and before October 1, 1997, is the rate stated in the following
table.

------------------------------------------------------------------------
Monthly
Training period rate
------------------------------------------------------------------------
First six months of pursuit of training...................... $320.90
Second six months of pursuit of training..................... 235.33
Remaining pursuit of training................................ 149.75
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))

(3) If a veteran's service is described in paragraph (a) of this
section, the monthly rate of basic educational assistance payable to
the veteran for pursuit of a cooperative course is:

[[Page 14825]]

(i) $342.30 for training that occurs after September 30, 1996, and
before October 9, 1996; and
(ii) $427.87 for training that occurs on or after October 9, 1996.

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

(c) * * *
(1) Except as elsewhere provided in this section or in
Sec. 21.7139, the monthly rate of basic educational assistance payable
to a veteran for training that occurs after September 30, 1996, and
before October 1, 1997, is the rate stated in the following table.

------------------------------------------------------------------------
Monthly
Training rate
------------------------------------------------------------------------
Full time.................................................... $347.65
\3/4\ time................................................... 260.74
\1/2\ time................................................... 173.83
Less time \1/2\ but more than \1/4\ time..................... 173.83
\1/4\ time or less........................................... 86.91
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))

(2) The monthly rate of educational assistance payable to a veteran
for pursuit of apprenticeship or other on-job training that occurs
after September 30, 1996, and before October 1, 1997, is the rate
stated in the following table.

------------------------------------------------------------------------
Monthly
Training period rate
------------------------------------------------------------------------
First six months of pursuit of training...................... $260.74
Second six months of pursuit of training..................... 191.21
Remaining pursuit of training................................ 121.68
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))

(3) The monthly rate of basic educational assistance payable to a
veteran for pursuit of a cooperative course is:
(i) $278.12 for training that occurs after September 30, 1996, and
before October 9, 1996; and
(ii) $347.65 for training that occurs on or after October 9, 1996.

(Authority: 38 U.S.C. 3015)
(d) * * *
(1) For individuals, other than those pursuing cooperative training
before October 9, 1996, or apprenticeship or other on-job training, it
may not exceed:
* * * * *
(2) For individuals who first become members of the Armed Forces
after November 28, 1989 (other than those pursuing cooperative training
before October 9, 1996, or apprenticeship or other on-job training), it
may not exceed:
* * * * *
(5) For individuals who first become members of the Armed Forces
before November 29, 1989, and who are pursuing cooperative training, it
may not exceed $320 per month for training received before October 9,
1996.
(6) For individuals who first become members of the Armed Forces
after November 28, 1989, and who are pursuing cooperative training, it
may not exceed $560 per month for training received before October 9,
1996.

(Authority: Sec. 108(a)(2), Pub. L. 100-689, 102 Stat. 4170; Sec.
5(a), Pub. L. 102-83, 105 Stat. 406)
* * * * *
(f) * * *
(3) For a veteran pursuing cooperative training VA will multiply
the rate determined by paragraph (e)(2)(i) of this section by .8 for
training received before October 9, 1996.
* * * * *
3. In Sec. 21.7137, paragraph (c)(2) introductory text is amended
by removing ``1995, and before October 1, 1996'' and adding, in its
place, ``1996, and before October 1, 1997''; paragraph (c)(2)(i) is
amended by removing ``$604.62'' and adding, in its place, ``$615.87'';
paragraph (c)(2)(ii) is amended by removing ``$453.96'' and adding, in
its place, ``$462.40''; paragraph (c)(2)(iii) is amended by removing
``$302.31'' and adding, in its place, ``$309.94''; paragraph (c)(2)(iv)
is amended by removing ``$151.15'' and adding, in its place,
``$153.97''; and paragraphs (a)(1), (a)(2), (d)(1) introductory text,
and (d)(3) are revised and paragraph (a)(3) is added, to read as
follows:

Sec. 21.7137 Rates of payment of basic educational assistance for
individuals with remaining entitlement under 38 U.S.C. ch. 34.

(a) Minimum rates. (1) Except as elsewhere provided in this
section, the monthly rate of basic educational assistance for training
that occurs after September 30, 1996, and before October 1, 1997, is
the rate stated in the following table.

----------------------------------------------------------------------------------------------------------------
Monthly rate
---------------------------------------------------
Additional
Training No. One Two for each
dependents dependent dependents additional
dependent
----------------------------------------------------------------------------------------------------------------
Full time................................................... $615.87 $651.87 $682.87 $16.00
\3/4\ time.................................................. 462.40 488.90 512.40 12.00
\1/2\ time.................................................. 309.94 325.94 341.44 8.50
Less than \1/2\ but more than \1/4\ time.................... 309.94 ........... ........... ...........
\1/4\ time or less.......................................... 153.97 ........... ........... ...........
----------------------------------------------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015 (e), (f), and (g))

(2) For veterans pursuing apprenticeship or other on-job training,
the monthly rate of basic educational assistance for training that
occurs after September 30, 1996, and before October 1, 1997, is the
rate stated in the following table.

[[Page 14826]]

Remaining pursuit of program................................ 161.65 167.43 172.68 2.45
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(Authority: 38 U.S.C. 3015(e), (f), (g))
(3) The monthly rate payable to a veteran who is pursuing a
cooperative course is the rate stated in the following table.

----------------------------------------------------------------------------------------------------------------
Monthly rate
---------------------------------------------------
Additional
Training period No One Two for each
dependents dependent dependents additional
dependent
----------------------------------------------------------------------------------------------------------------
Oct. 1, 1996-Oct. 8, 1996................................... $463.90 $484.30 $503.90 $9.20
On or after Oct. 9, 1996.................................... 579.87 605.37 629.87 11.50
----------------------------------------------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015)
* * * * *
(d) * * *
(1) For individuals, other than those pursuing cooperative training
before October 9, 1996, or apprenticeship or other on-job training, it
may not exceed:
* * * * *
(3) For individuals pursuing cooperative training, it may not
exceed $320 per month for training received before October 9, 1996.

(Authority: Sec. 108(a)(2), Pub. L. 100-689, 102 Stat. 4170; sec.
5(a), Pub. L. 102-83, 105 Stat. 406)
* * * * *
[FR Doc. 97-7832 Filed 3-27-97; 8:45 am]
BILLING CODE 8320-01-P