[Federal Register Volume 63, Number 97 (Wednesday, May 20, 1998)]
[Proposed Rules]
[Pages 27701-27703]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13366]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI31


Advance Payments and Lump-Sum Payments of Educational Assistance

AGENCIES: Defense; Coast Guard, Transportation; and Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the educational assistance 
regulations of the Department of Veterans Affairs (VA) dealing with the 
advance payment and lump-sum payment of educational assistance. VA is 
proposing to amend these regulations by removing provisions that no 
longer apply and by making other changes for the purpose of 
clarification. This will make these regulations easier to use.

DATES: Comments must be received on or before July 20, 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-AI31''. All 
written comments received will be available for public inspection at 
the above address in the Office of Regulations Management between the 
hours of 8:00 a.m. to 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: For many decades VA by statute has permitted 
veterans, servicemembers, eligible persons, and reservists to receive 
an advance payment of educational assistance provided that they request 
such a payment and certain other requirements are met. These payments 
have covered educational assistance scheduled to be paid to the 
individual during the first month or fraction of a month and the 
following month in a term or school year. Similarly, some individuals 
in some of the educational programs VA administers are able in certain 
circumstances to receive a lump-sum payment covering the educational 
assistance due for an entire term.
    The regulations governing these payments have accumulated obsolete 
provisions over the years, and have been written in a way that is not 
always easy to understand. This proposed rule removes these obsolete 
provisions and makes other clarifying changes. Moreover, VA may make 
advance payments under many of the educational programs the department 
administers. The rules governing advance payments are the same for all 
of those educational programs. There appears to be no need to repeat 
those rules in each subpart of part 21, 38 CFR. Consequently, VA is 
proposing to replace the repetition of those rules with references to 
the complete statement of the advance payment rules that are proposed 
in subpart D.
    Current regulations allow VA to make lump-sum payments to trainees 
in both the Survivors' and Dependents' Educational Assistance program 
(DEA) and in the Montgomery GI Bill--Active Duty (MGIB). The rules for 
making these payments are the same for both programs. There appears to 
be no need to repeat these rules in both of the affected subparts of 
Part 21, 38 CFR. Consequently, VA is proposing to replace the 
repetition of those rules with references to the complete statement of 
the lump-sum payment rules that are proposed in subpart D. There are no 
substantive changes in this proposed rule.

Paperwork Reduction Act

    The Office of Management and Budget (OMB) has determined that the 
proposed 38 CFR 21.4138(a) would constitute a collection of information 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). 
Accordingly, under Sec. 3507(d) of the Act VA has submitted a copy of 
this rulemaking action to OMB for its review.
    Title: Request for an Advance Payment of Educational Assistance.
    Summary of collection of information: The collection of information 
in the proposed revisions to Sec. 21.4138(a) in this rulemaking 
proceeding implements a statutory provision that mandates that an 
individual who wishes to receive an advance payment of educational 
assistance must ask for it.
    Description of need for information and proposed use of 
information: The information required in Sec. 21.4138(a) is needed so 
that VA may make advance payments of educational assistance to those 
who want such payments.
    Description of likely respondents. Veterans, reservists, and 
eligible persons receiving educational assistance under the programs VA 
administers.
    Estimated number of respondents: 75,000 each year.
    Estimated frequency of responses: Occasionally, when a veteran, 
reservist, or eligible person wants an advance payment of educational 
assistance at the start of an enrollment period.
    Estimated total annual reporting and recordkeeping burden: 6,250 
hours of reporting burden. VA does not believe that there will be 
additional recordkeeping burden.
    Estimated average burden per respondent: 5 minutes.
    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.
    The Department of Defense (DOD) and VA are jointly issuing this 
proposed rule insofar as it relates to the Post-Vietnam Era Veterans' 
Educational Assistance program. This program is funded by DOD and 
administered by VA. DOD, the Department of Transportation (Coast 
Guard), and VA are jointly issuing this proposed rule insofar as it 
relates to the Montgomery GI Bill--Selected Reserve. This program is 
funded by DOD and the Coast Guard, and is administered by

[[Page 27702]]

VA. The remainder of this proposed rule is issued solely by VA.
    The signers of this document hereby certify that this regulatory 
amendment 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 adoption of this proposed rule 
would not make substantive changes. It would remove provisions that no 
longer apply and make other changes for purposes of clarification.

    The Catalog of Federal Domestic Assistance numbers for the 
programs affected by this proposed rule are 64.117, 64.120, and 
64.124. The proposed rule will also affect the Montgomery GI Bill--
Selected Reserve 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: May 12, 1998.
Togo D. West, Jr.,
Secretary.

    Approved: March 16, 1998.
Norman G. Lezy,
Lieutenant General, USAF, Deputy Assistant Secretary (Military 
Personnel Policy), Department of Defense.
    Approved: February 26, 1998.
G.F. Woolever,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human 
Resources.

    For the reasons set out in the preamble, 38 CFR part 21 is proposed 
to be amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Assistance Programs

    1. The authority citation for subpart D continues to read as 
follows:

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

    2. In Sec. 21.4138, the introductory text is removed; paragraphs 
(c) and (d) are removed and reserved; and paragraphs (a) and (b) are 
revised to read as follows:


Sec. 21.4138  Certifications and release of payments.

    (a) Advance payments. (1) VA will make payments of educational 
assistance in advance when:
    (i) The veteran, servicemember, reservist, or eligible person has 
specifically requested such a payment;
    (ii) The student is enrolled for half time or more;
    (iii) The educational institution at which the veteran, 
servicemember, reservist, or eligible person is accepted or enrolled 
has agreed to and can satisfactorily carry out the provisions of 38 
U.S.C. 3680(d)(4)(B) and (C) and (5) pertaining to receipt, delivery, 
or return of checks and certifications of delivery and enrollment;
    (iv) The Director of the VA field facility of jurisdiction has not 
acted under paragraph (a)(4) of this section to prevent advance 
payments being made to the veteran's, servicemember's, reservist's, or 
eligible person's educational institution;
    (v) There is no evidence in the veteran's, servicemember's, 
reservist's, or eligible person's claim file showing that he or she is 
not eligible for an advance payment;
    (vi) The period for which the veteran, servicemember, reservist, or 
eligible person has requested a payment either--
    (A) Is preceded by an interval of nonpayment for 30 days or more; 
or
    (B) Is the beginning of a school year that is preceded by a period 
of nonpayment of 30 days or more; and
    (vii) The educational institution or the veteran, servicemember, 
reservist, or eligible person has submitted the certification required 
by Sec. 21.7151.
    (2) The amount of the advance payment to a veteran, reservist, or 
eligible person is the educational assistance for the month or fraction 
thereof in which the term or course will begin plus the educational 
assistance for the following month. The amount of the advance payment 
to a servicemember is the amount payable for the entire term, quarter, 
or semester, as applicable.
    (3) VA will mail advance payments to the educational institution 
for delivery to the veteran, servicemember, reservist, or eligible 
person. The educational institution will not deliver the advance 
payment check more than 30 days in advance of the first date of the 
period for which VA makes the advance payment.
    (4) The Director of the VA field station of jurisdiction may direct 
that advance payments not be made to individuals attending an 
educational institution if:
    (i) The educational institution demonstrates an inability to comply 
with the requirements of paragraph (a)(3) of this section;
    (ii) The educational institution fails to provide adequately for 
the safekeeping of the advance payment checks before delivery to the 
veteran, servicemember, reservist, or eligible person or return to VA; 
or
    (iii) The Director determines, based on compelling evidence, that 
the educational institution has demonstrated its inability to discharge 
its responsibilities under the advance payment program.

(Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3034, 3680(d))

    (b) Lump-sum payments. A lump-sum payment is a payment of all 
educational assistance due for an entire quarter, semester, or term. VA 
will make a lump-sum payment to:
    (1) A veteran or servicemember pursuing a program of education at 
less than the half-time rate under 38 U.S.C. chapter 30;
    (2) A servicemember pursuing a program of education at the half-
time rate or greater under 38 U.S.C. chapter 30, provided that VA did 
not make an advance payment to the servicemember for the term for which 
a lump-sum payment would otherwise be due; and
    (3) An eligible person pursuing a program of education at less than 
the half-time rate under 38 U.S.C. chapter 35.

(Authority: 38 U.S.C. 3034(c), 3680(f))
* * * * *

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

    3. The authority citation for part 21, subpart G continues to read 
as follows:

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

    4. Section 21.5135 is revised to read as follows.


Sec. 21.5135  Advance payments.

    VA will apply the provisions of Sec. 21.4138(a) in making advance 
payments to veterans and servicemembers.

(Authority: 38 U.S.C. 3241, 3680)

Subpart K--All Volunteer Force Educational Assistance Program 
(Montgomery GI Bill--Active Duty)

    5. The authority citation for part 21, subpart K continues to read 
as follows:

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

    6. In Sec. 21.7140, paragraph (b) is removed; paragraphs (c), (d), 
(e), (f), and

[[Page 27703]]

(g) are redesignated as paragraphs (b), (c), (d), (e), and (f), 
respectively; and paragraph (a) is revised, to read as follows:


Sec. 21.7140  Certifications and release of payments.

    (a) Advance payments and lump-sum payments. VA will apply the 
provisions of Sec. 21.4138 (a) and (b) in making advance payments and 
lump-sum payments to veterans and servicemembers.

(Authority: 38 U.S.C. 3034 and 3680)
* * * * *

Subpart L Educational Assistance for Members of the Selected 
Reserve

    7. 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, unless otherwise 
noted.

    8. In Sec. 21.7640, the authority citations for paragraphs (b), 
(c), (e), and (f) are amended by removing ``; Pub. L. 98-525''; and 
paragraph (e) is amended by removing ``paragraph (d) of this section'' 
and adding, in its place, ``Sec. 21.4138(a)''; and paragraph (d) is 
revised to read as follows:


Sec. 21.7640  Release of payments.

* * * * *
    (d) Advance payments. VA will apply the provisions of 
Sec. 21.4138(a) in making advance payments to reservists.

(Authority: 10 U.S.C. 16136(b), 38 U.S.C. 3680)
* * * * *
[FR Doc. 98-13366 Filed 5-19-98; 8:45 am]
BILLING CODE 8320-01-P