[Federal Register Volume 62, Number 232 (Wednesday, December 3, 1997)]
[Rules and Regulations]
[Pages 63848-63850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31628]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AH91


Veterans Education: Approval of Correspondence Programs or 
Courses

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the VA-administered educational 
assistance and educational benefits regulations concerning approval of 
programs of education pursued exclusively by correspondence and the 
correspondence portion of correspondence-residence courses for 
Department of Veterans Affairs (VA) training. A number of changes are 
made to conform to statutory changes. The regulations are also amended 
to require that the educational institution offering a correspondence 
program or course certify to the State approving agency (SAA) that at 
least 50 percent of those pursuing the program or course require six 
months or more to complete it based on the six-month period immediately 
preceding the educational institution's application for approval. The 
certification is to enable the SAA to determine whether the program or 
course meets the statutory requirement that at least 50 percent of 
those pursuing the program or course require six months or more to 
complete it. The regulations are also amended to expressly provide that 
the SAA may periodically review the program or course approvals already 
granted and that this determination would be based

[[Page 63849]]

on the records of the school for a two-year period reasonably related 
to the date on which such review is conducted. These periods are 
appropriate to determine compliance with the statutory requirements. 
Further, due to the deletion of the statutory basis for its adoption, 
the requirement that the program or course must require not less than 
six hours preparation per week over any 26-week period is deleted, and 
related requirements for SAAs are changed. In addition, this document 
clarifies that the provisions concerning enrollments in the program or 
course apply not only to eligible veterans, spouses, and surviving 
spouses, but also to reservists. Other changes are made for purposes of 
clarity.

DATES: Effective Date: January 2, 1998.

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

SUPPLEMENTARY INFORMATION: In a document published in the Federal 
Register on July 1, 1997 (62 FR 35464), VA proposed to amend the 
``Administration of Educational Assistance Programs'' regulations which 
are set forth in 38 CFR 21.4001 et seq. It was proposed to amend the 
regulations at Secs. 21.4256 and 21.4279 to reflect amended statutory 
provisions contained in the Veterans' Benefits Improvement Act of 1994, 
Public Law 103-446. These provisions:
     Require that programs of education offered exclusively by 
correspondence or the correspondence portion of a correspondence-
residence course may be approved for VA training only if they are 
offered by an accredited educational institution;
     Negate the prior regulatory requirement providing that the 
normal period required to complete a program of education by 
correspondence or the correspondence portion of a combination 
correspondence-residence course may not be less than six months; and
     Impose a requirement that at least 50 percent of those 
pursuing the program or course shall require six months or more to 
complete it.
    In addition to these statutory requirements, VA proposed to:
     Require an SAA when reviewing an application for a new 
correspondence program or course approval to determine whether it meets 
the course completion requirements based on the six-month period 
immediately preceding the educational institution's application for 
approval;
     Permit SAAs to review periodically correspondence program 
or course approvals already granted to determine whether the completion 
requirement was met by examining a prior two-year period reasonably 
related to the date on which such review is conducted.
     Remove the regulatory requirement that a correspondence 
program or course must require at least six hours of preparation per 
week over any 26-week period;
     Require that correspondence-residence courses would have 
to meet the same course completion criteria as correspondence programs, 
including the time periods during which the SAA will determine whether 
the course completion criterion have been met; and
     Clarify that the provisions concerning enrollments in 
correspondence courses apply not only to eligible veterans, spouses, 
and surviving spouses, but also to reservists.
    Interested persons were given 63 days to submit comments. We 
received no comments. Accordingly, based on the rationale set forth in 
the proposed rule document, we are adopting the provisions of the 
proposed rule as a final rule.

Paperwork Reduction Act of 1995

    Information collection and recordkeeping requirements associated 
with this final rule (38 CFR 21.4256(a)(1), 21.4256(b)(3), and 21.4279) 
have been approved by OMB under the provisions of the Paperwork 
Reduction Act (44 U.S.C. 3501-3520) and have been assigned OMB control 
numbers 2900-0575 and 0576. These regulations require that an 
educational institution offering a program of education by 
correspondence or the correspondence portion of a correspondence-
residence course would have to certify to the SAA that at least 50 
percent of those pursuing the program or course require six months or 
more to complete it in order to have that program or course approved 
for VA training. There is no VA form to collect this information; 
therefore, there is no corresponding form number.
    VA is not authorized to impose a penalty on persons for failure to 
comply with information collection requirements which do not display a 
current OMB control number, if required.

Regulatory Flexibility Act

    The Secretary of Veterans Affairs 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. Although it is possible that small entities could be 
among the educational institutions affected by this rulemaking, this 
final rule would have only a minuscule effect on any educational 
institution. 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 numbers for programs 
affected by this final rule are 64.117, 64.120, and 64.124. This final 
rule will also affect the Montgomery GI Bill--Selected Reserve program, 
for which there is no Catalog of Federal Domestic Assistance number.

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: October 30, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.

    For the reasons set out above, 38 CFR part 21, subpart D, is 
amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Assistance Programs

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

    Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), chs. 30, 32, 
34, 35, 36, unless otherwise noted.

    2. Section 21.4256 is revised to read as follows:


Sec. 21.4256  Correspondence programs and courses.

    (a) Approval of correspondence programs and courses. (1) An 
educational institution desiring to enroll veterans under 38 U.S.C. 
chapter 30 or 32, spouses and/or surviving spouses under 38 U.S.C. 
chapter 35, and/or reservists under 10 U.S.C. chapter 1606 in a program 
of education to be pursued exclusively by correspondence, or in the 
correspondence portion of a combination correspondence-residence

[[Page 63850]]

course, may have the program or course approved only when the 
educational institution meets the requirements of Secs. 21.4252(e), 
21.4253, and 21.4279, as applicable.

(The information collection requirements in this section have been 
approved by the Office of Management and Budget under control number 
2900-0575)

(Authority: 38 U.S.C. 3672(e))

    (2) The application of an educational institution for approval of a 
program of education to be pursued exclusively by correspondence or the 
correspondence portion of a combined correspondence-residence course 
must demonstrate that the program or course is satisfactory in all 
elements. The educational institution must certify to the State 
approving agency that at least 50 percent of those pursuing the program 
or course require six months or more to complete it. For applications 
for approval that are pending approval by the State approving agency on 
February 2, 1995, and for applications received by the State approving 
agency after that date, the required certification shall be based on 
the experience of students who completed the program or course during 
the six-month period immediately preceding the educational 
institution's application for approval.

(Authority: 38 U.S.C. 3672(e))

    (3) State approving agencies have the authority to review 
periodically the length of time needed to complete each approved 
correspondence program or approved correspondence-residence course in 
order to determine whether the program or course should continue to be 
approved. In implementing this authority, a State approving agency will 
examine the results over a prior two-year period reasonably related to 
the date on which such a review is conducted.

(Authority: 38 U.S.C. 3672(e))

    (b) Enrollment agreement. (1) An educational institution offering a 
program of education to be pursued exclusively by correspondence must 
enter into an enrollment agreement with the veteran, spouse, surviving 
spouse, or reservist who wishes to receive educational assistance from 
VA while pursuing the program. The enrollment agreement shall disclose 
fully the obligations of the institution and the veteran, spouse, 
surviving spouse, or reservist, and shall display in a prominent place 
on the agreement the conditions for affirmance, termination, refund, 
and payment of the educational assistance by VA.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(a)(1), 3686(b))

    (2) A copy of the agreement shall be given to the veteran, spouse, 
surviving spouse, or reservist when it is signed.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(b))

    (3) The agreement shall not be effective unless the veteran, 
spouse, surviving spouse, or reservist after the expiration of 10 days 
after the agreement is signed, shall have signed and submitted to VA a 
written statement, with a signed copy to the institution, specifically 
affirming the agreement.

(The information collection requirements in this section have been 
approved by the Office of Management and Budget under control number 
2900-0576)

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(b))

    (c) Mandatory refund policy. (1) Upon notification of the 
educational institution by the veteran, spouse, surviving spouse, or 
reservist of an intention not to affirm the enrollment agreement, any 
fees paid by the individual shall be returned promptly in full to him 
or her.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(c))

    (2) Upon termination of enrollment under an affirmed enrollment 
agreement for training in the accredited course by the veteran, spouse, 
surviving spouse, or reservist, without having completed any lessons, a 
registration fee not in excess of 10 percent of the tuition for the 
course or $50, whichever is less, may be charged him or her. When the 
individual terminates the agreement after completion of less than 25 
percent of the lessons of the course, the institution may retain the 
registration fee plus 25 percent of the tuition. When the individual 
terminates the agreement after completing 25 percent but less than 50 
percent of the lessons, the institution may retain the registration fee 
plus 50 percent of the tuition for the course. If 50 percent or more of 
the lessons are completed, no refund of tuition is required.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(c))

    (3) Where the school either has or adopts an established policy for 
the refund of the unused portion of tuition, fees, and other charges 
subject to proration, which is more favorable to the veteran, spouse, 
surviving spouse, or reservist than the pro rata basis as provided in 
paragraph (b)(2) of this section, such established policy will be 
applicable.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(c))

    (4) Any institution that fails to forward any refund due to the 
veteran, spouse, surviving spouse, or reservist within 40 days after 
receipt of a notice of termination or disaffirmance, shall be deemed, 
prima facie, to have failed to make a prompt refund as required by this 
section.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(c))

    3. In Sec. 21.4279, paragraph (a) introductory text and paragraph 
(a)(4) are revised, and paragraph (a)(5) is added, to read as follows:


Sec. 21.4279  Combination correspondence-residence program.

    (a) Requirements for pursuit. A program of education may be pursued 
partly in residence and partly by correspondence for the attainment of 
a predetermined and identified objective under the following 
conditions:
* * * * *
    (4) The educational institution offering the course is accredited 
by an agency recognized by the Secretary of Education; and
    (5) The State approving agency has approved the correspondence-
residence course and has verified compliance with the requirement of 38 
U.S.C. 3672(e) and Sec. 21.4256(a) that at least 50 percent of those 
pursuing the correspondence-residence course require six months or more 
to complete it.

(The information collection requirements in this section have been 
approved by the Office of Management and Budget under control number 
2900-0575.)

(Authority: 38 U.S.C. 3672(e))
* * * * *
[FR Doc. 97-31628 Filed 12-2-97; 8:45 am]
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