[Federal Register Volume 63, Number 61 (Tuesday, March 31, 1998)]
[Proposed Rules]
[Pages 15341-15344]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-8332]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI68


Reservists Education: Monthly Verification of Enrollment and 
Other Reports

AGENCIES: Department of Defense, Department of Transportation (Coast 
Guard), and Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the educational assistance and 
educational benefit regulations of the Department of Veterans Affairs 
(VA). It proposes to expand the current requirement that some 
reservists receiving educational assistance under the Montgomery GI 
Bill--Selected Reserve (MGIB-SR) verify their pursuit of a program of 
education monthly to include those reservists who are pursuing a 
standard college degree. At the same time the document proposes 
reducing the number of reports VA receives from educational 
institutions. It appears that this would be a cost-effective way to 
reduce overpayments.

DATES: Comments must be received on or before June 1, 1998.

ADDRESSES: Mail or hand deliver written comments to Director, Office of 
Regulations Management (02D), Department of Veterans Affairs, 810 
Vermont Avenue NW., Room 1154, Washington, DC 20420. Comments should 
indicate that they are submitted in response to ``RIN 2900-AI68.'' All 
written comments will be available for public inspection at the above 
address in the Office of Regulations Management, Room 1158, between the 
hours of 8 a.m. and 4:30 p.m., Monday through Friday (except holidays).

    Comments on the collection of information contained in this 
proposal should be submitted to the Office of Management and Budget, 
Attention: Desk Officer for the Department of Veterans Affairs, Office 
of Information and Regulatory Affairs, Washington, DC 20503, with 
copies mailed or hand delivered to the Director, Office of Regulations 
Management (02D), Department of Veterans Affairs, 810 Vermont Avenue 
NW, Room 1154, Washington, DC 20420. Comments should indicate that they 
are submitted in response to ``RIN 2900-AI68.'' All written comments to 
VA will be available for public inspection at the above address in the 
Office of Regulations Management, Room 1158, between the hours of 8 
a.m. and 4:30 p.m., Monday through Friday (except holidays).

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education 
Advisor, Education Service, Veterans Benefits Administration (202) 273-
7187.

SUPPLEMENTARY INFORMATION: VA is required by statute (38 U.S.C. 
3680(g)) to withhold payments of educational assistance until VA 
receives proof of an individual's pursuit of a program of education. 
The statute goes on to state that VA may accept the individual's 
monthly certification of enrollment in and satisfactory pursuit of a 
program of education as satisfactory proof. Currently, regulations 
governing the MGIB-SR require such a monthly certification from a 
reservist pursuing a course not leading to a standard college degree, 
but this is not required from a reservist who is pursuing a standard 
college degree.
    VA analyzes its information collection burdens periodically to see 
if they are cost-effective. In 1997 an analysis was done of the monthly 
certification process. The analysis included an examination of the 
verification process in other VA education programs such as the 
Montgomery GI Bill--Active Duty (MGIB) where students pursuing a 
standard college degree are required to verify their continued pursuit 
monthly.
    The analysis found that if monthly verifications were eliminated 
entirely, the current establishment of debt in the education programs 
VA administers would increase from $5.6 million to $14 million 
annually. While the cost of processing verifications would be 
eliminated, the cost of collecting debts would increase. Conversely, 
the analysis projected that if monthly verifications were required in 
all the education programs VA administers, the establishment of debt in 
those programs would decrease from $5.6 million to $2.4 million 
annually, while the costs of processing those verifications would 
increase by $0.3 million annually. Accordingly, it would appear that 
overpayments of educational assistance

[[Page 15342]]

under MGIB-SR could be effectively reduced by expanding the monthly 
verification process to include reservists enrolled in courses leading 
to a standard college degree. This proposed rule would require 
reservists pursuing a standard college degree to verify pursuit of a 
program of education each month.
    Current regulations provide that if a reservist reduces his or her 
rate of training, and has mitigating circumstances for such a 
reduction, the effective date for the corresponding reduction in the 
monthly rate of the reservist's educational assistance will be the end 
of the month in which the reduction in the rate of training took place. 
However, VA is required by statute to make the reduction in the monthly 
rate of educational assistance on the effective date of the reduction 
in the rate of training, if the reduction is pursuant to a report 
received from the reservist as part of his or her monthly verification 
of training. Thus, it appears that adopting a monthly verification 
requirement would require a change in the regulation governing the 
effective dates of reductions in educational assistance. Such a change 
is included in this proposal.
    Current regulations provide that when a reservist interrupts or 
terminates training or when he or she changes the number of hours of 
credit or attendance, the educational institution must report this fact 
to VA. The purpose of this report is to help determine the reservist's 
training time. VA considers a reservist to be a half-time, three-
quarter-time, full-time, etc., student on the basis of the number of 
his or her credit hours or clock hours of attendance. Payments, in 
turn, are based on the training time. For example, a full-time student 
receives twice the monthly educational assistance that a half-time 
student does. VA needs to know changes in the number of the reservist's 
hours of credit or attendance so that his or her payments may 
accurately reflect the training time.
    However, occasionally a reservist will enroll in more hours than 
the minimum needed to be considered a full-time student. The reservist 
may withdraw from a course or add a course and still be considered a 
full-time student. It appears that in those instances VA does not need 
a report of the change in hours, because payment to the student will 
not be affected. Accordingly, it is proposed that in these instances 
the educational institution need not report the changes provided the 
reservist is enrolled in a standard term.
    Similarly, VA is proposing that a reservist who is a full-time 
student and who changes his or her enrollment but remains a full-time 
student need not report the change on the monthly verification of 
pursuit.

Paperwork Reduction Act of 1995

    The Office of Management and Budget (OMB) has determined that the 
proposed 38 CFR 21.7654 and 21.7656(a) and the proposed 38 CFR 
21.7656(b) would constitute collections of information under the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). Accordingly, 
under section 3507(d) of the Act VA has submitted a copy of this 
rulemaking action to OMB for its review.
    Title: Monthly Verification of Pursuit of Training under the 
Montgomery GI Bill--Selected Reserve.
    Summary of collection of information: The collection of information 
in the proposed revisions to Secs. 21.7654 and 21.7656(a) in this 
rulemaking proceeding implements a statutory provision that permits, 
but does not require, VA to require reports showing a reservist's 
satisfactory pursuit of a program of education before releasing a 
payment of educational assistance. The statute specifically allows a 
monthly certification received from the reservist to satisfy this 
requirement.
    Description of need for information and proposed use of 
information: The information required in Secs. 21.7654 and 21.7656(a) 
is needed to help VA determine whether educational assistance should 
continue to be paid to a reservist and to verify the correct monthly 
rate of educational assistance payable to a reservist. The monthly rate 
is based on the reservist's training time which in turn is based on the 
number of credit hours in which the reservist is enrolled.
    Description of likely respondents: The respondents will be 
reservists eligible to receive educational assistance under the 
Montgomery GI Bill--Selected Reserve.
    Estimated number of respondents: 82,400.
    Estimated frequency of responses: Monthly while the reservist 
continues to pursue a program of education.
    Estimated total annual reporting and recordkeeping burden: 48,067 
hours of reporting burden. VA estimates that there would be no 
recordkeeping burden.
    Estimated average burden per respondent: .58 hour.
    Title: Report of Change in Enrollment for Reservists Training under 
the Montgomery GI Bill--Selected Reserve.
    Summary of collection of information: The collection of information 
in the proposed revisions to Sec. 21.7656(b) in this rulemaking 
proceeding implements a statutory provision that requires an 
educational institution to report without delay changes, including 
interruptions and terminations, in a reservist's enrollment. This 
proposed rule would reduce the information collection burden currently 
placed on educational institutions by eliminating some reports that the 
current regulation requires.
    Description of need for information and proposed use of 
information: The information required in Sec. 21.7656(b) is needed to 
help VA determine the monthly rate of educational assistance payable to 
a reservist. The monthly rate is based on the student's training time 
which in turn is based on the number of credit hours in which the 
reservist is enrolled.
    Description of likely respondents. Educational institutions make 
this report.
    Estimated number of respondents: 7,481.
    Estimated frequency of responses: Occasionally, when a reservist 
changes her or his pursuit of a program of education, unless the 
reservist was a full-time student both before and after the change.
    Estimated total annual reporting and recordkeeping burden: 13,570 
hours of reporting burden. VA does not believe that there will be 
additional recordkeeping burden.
    Estimated average burden per respondent: 1.81 hours.
    The Department considers comments by the public on proposed 
collections of information in--
     Evaluating whether the proposed collection(s) of 
information are necessary for the proposed performance of the functions 
of the Department, including whether the information will have 
practical utility;
     Evaluating the accuracy of the Department's estimate of 
the burden of the proposed collections of information, including the 
validity of the methodology and assumptions used;
     Minimizing the burden of the collection of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    OMB is required to make a decision concerning the collection of 
information contained in this proposed rule between 30 and 60 days 
after publication of this document in the Federal Register. Therefore, 
a comment to OMB is best assured of having its full effect if OMB 
receives it within 30 days of publication.

[[Page 15343]]

    The Secretary of Defense, the Commandant of the Coast Guard, and 
the Secretary of Veterans Affairs hereby certify that this proposed 
rule, if adopted, 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. This proposed rule may 
affect some educational institutions that are small entities. However, 
educational institutions are paid a reporting fee for making required 
reports to VA. Furthermore, VA does not believe that a burden of less 
than two hours annually would result in a significant economic impact. 
Pursuant to 5 U.S.C. 605(b), this proposed rule, therefore, is exempt 
from both the initial and final regulatory flexibility analysis 
requirements of sections 603 and 604.
    There is no Catalog of Federal Domestic Assistance number for the 
program affected by this proposed rule.

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 programs, Loan programs-education, Loan 
programs-veterans, Manpower training programs, Reporting and 
recordkeeping requirements, Schools, Travel and transportation 
expenses, Veterans, Vocational education, Vocational rehabilitation.

    Approved: March 17, 1998.
Togo D. West, Jr.,
Acting Secretary.
    Approved: August 13, 1997.
Al H. Bemis,
Deputy Assistant Secretary of Defense for Reserve Affairs (Manpower and 
Personnel).
    Approved: November 4, 1997.
G.F. Woolever,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human 
Resources.
    For the reasons set out above, 38 CFR part 21, subpart L, is 
amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart L--Educational Assistance for Members of the Selected 
Reserve

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

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

    2. In Sec. 21.7635, paragraph (c)(1) is revised to read as follows:


Sec. 21.7635  Discontinuance dates.

* * * * *
    (c) * * *
    (1) If the reduction in the rate of training occurs other than on 
the first date of the term, VA will reduce the reservist's educational 
assistance effective on the date the reduction occurred when:
* * * * *
    3. In Sec. 21.7654, paragraph (b) is redesignated as paragraph (c); 
paragraph (a) is revised; and introductory text and a new paragraph (b) 
are added to read as follows:


Sec. 21.7654  Pursuit and absences.

    Except as provided in this section, a reservist must submit a 
verification to VA each month of his or her enrollment during the 
period for which the reservist is to be paid. This verification shall 
be in a form prescribed by the Secretary.
    (a) Exceptions to the monthly verification requirement. A reservist 
does not have to submit a monthly verification as described in the 
introductory text of this section when the reservist--
    (1) Is enrolled in a correspondence course; or
    (2) Has received an advance payment for the training completed 
during a month.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680(a), 3680(g))

    (b) Items to be reported on all monthly verifications. (1) The 
monthly verification for all reservists will include a report on the 
following items when applicable:
    (i) Continued enrollment in and actual pursuit of the course;
    (ii) The date of interruption or termination of training;
    (iii) Except as provided in Sec. 21.7656(a), changes in the number 
of credit hours or in the number of clock hours of attendance;
    (iv) Nonpunitive grades; and
    (v) Any other changes or modifications in the course as certified 
at enrollment.
    (2) The verification of enrollment must:
    (i) Contain the information required for release of payment;
    (ii) If required or permitted by the Secretary to be submitted on 
paper, be signed by the reservist on or after the final date of the 
reporting period, or if permitted by the Secretary to be submitted by 
telephone in a manner designated by the Secretary, be submitted in the 
form and manner prescribed by the Secretary on or after the final date 
of the reporting period; and
    (iii) If submitted on paper, clearly show the date on which it was 
signed.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680(g))
* * * * *
    4. In Sec. 21.7656, the introductory text is removed, paragraphs 
(a), (a)(1), (a)(2), (a)(3), and (b) are redesignated as paragraphs 
(b), (b)(3), (b)(4), (b)(5), and (c), respectively; the section 
heading, newly redesignated paragraphs (b), (b)(3) and the authority 
citation at the end of paragraph (b) are revised; and new paragraphs 
(a), (b)(1), and (b)(2) are added, to read as follows:


Sec. 21.7656  Other required reports.

    (a) Reports from reservists. (1) A reservist enrolled full time in 
a program of education for a standard term, quarter, or semester must 
report without delay to VA:
    (i) A change in his or her credit hours or clock hours of 
attendance if that change would result in less than full-time 
enrollment;
    (ii) Any change in his or her pursuit that would result in less 
than full-time enrollment; and
    (iii) Any interruption or termination of his or her attendance.
    (2) A reservist not described in paragraph (a)(1) of this section 
must report without delay to VA:
    (i) Any change in his or her credit hours or clock hours of 
attendance;
    (ii) Any change in his or her pursuit; and
    (iii) Any interruption or termination of his or her attendance.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3684)

    (b) Interruptions, terminations, or changes in hours of credit or 
attendance. (1) Except as provided in paragraph (b)(2) of this section, 
an educational institution must report without delay to VA each time a 
reservist:
    (i) Interrupts or terminates his or her training for any reason; or
    (ii) Changes his or her credit hours or clock hours of attendance.
    (2) An educational institution does not need to report a change in 
a reservist's hours of credit or attendance when:
    (i) The reservist is enrolled full time in a program of education 
for a standard term, quarter, or semester before the change; and
    (ii) The reservist continues to be enrolled full time after the 
change.
    (3) If the change in status or change in number of credit hours or 
clock hours of attendance occurs on a day other than one indicated by 
paragraph (b)(4) or (b)(5) of this section, the educational

[[Page 15344]]

institution will initiate a report of the change in time for VA to 
receive it within 30 days of the date on which the change occurs.
* * * * *
(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3684)
* * * * *
[FR Doc. 98-8332 Filed 3-30-98; 8:45 am]
BILLING CODE 8320-01-P