[Federal Register Volume 63, Number 236 (Wednesday, December 9, 1998)]
[Rules and Regulations]
[Pages 67778-67779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32646]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AJ42


Dependents Education: Increase in Educational Assistance Rates

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: A provision of the Internal Revenue Service Restructuring and 
Reform Act of 1998 provides for an increase of approximately 20% in 
educational assistance rates payable under Survivors' and Dependents' 
Educational Assistance (DEA) effective October 1, 1998. The regulations 
governing those rates are changed to show the rates indicated in the 
Act.

DATES: Effective Dates: This final rule is effective October 1, 1998.

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

SUPPLEMENTARY INFORMATION: The Internal Revenue Service Restructuring 
and Reform Act of 1998 (Pub. L. 105-206) amended sections 3532, 3534, 
and 3542 of title 38, U.S. Code to provide an increase of approximately 
20% in educational assistance rates payable under DEA effective October 
1, 1998. Changes are made to the regulations governing rates payable 
under DEA to reflect the statutory changes.
    Nonsubstantive changes also are made for the purpose of clarity.
    Substantive changes made by this final rule merely reflect 
statutory requirements. 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 64.117.

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: December 2, 1998.
Togo D. West, Jr.,
Secretary of Veterans Affairs.

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

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart C--Survivors' and Dependents' Educational Assistance Under 
38 U.S.C. Chapter 35

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

    Authority: 38 U.S.C. 501(a), 512, 3500-3566, unless otherwise 
noted.

    2. In Sec. 21.3045, paragraph (h) is revised to read as follows:


Sec. 21.3045  Entitlement charges.

* * * * *
    (h) Entitlement charge for correspondence courses. The charge 
against entitlement for pursuit of a course exclusively by 
correspondence will be 1 month for each:
    (1) $404 paid after December 31, 1989, and before October 1, 1998, 
to a spouse or surviving spouse as an educational assistance allowance;
    (2) $485 paid after September 30, 1998.

(Authority: 38 U.S.C. 3686(a))
* * * * *
    3. In Sec. 21.3131, paragraph (a) is revised to read as follows:


Sec. 21.3131  Rates--educational assistance allowance--38 U.S.C. 
chapter 35.

    (a) Rates. Except as provided in Sec. 21.3132, educational 
assistance allowance is payable at the following rates effective 
October 1, 1998:

------------------------------------------------------------------------
             Type of course                        Monthly rate
------------------------------------------------------------------------
Institutional:
    Full-time..........................  $485.
    \3/4\ time.........................  $365.
    \1/2\ time.........................  $242.
    Less than \1/2\ but more than \1/4\  $242.
     time \1\.
    \1/4\ time or less \1\.............  $121.
Cooperative training (other than farm    $485
 cooperative) (Full time only).
Apprentice or on-job (full time only)
 \2\:
    First six months...................  $353.
    Second six months..................  $264.
    Third six months...................  $175.
    Fourth six months and thereafter...  $88.
Farm cooperative:
    Full time..........................  $392.

[[Page 67779]]

 
    \3/4\ time.........................  $294.
    \1/2\ time.........................  $196.
Correspondence.........................  55 percent of the established
                                          charge for the number of
                                          lessons completed by the
                                          eligible spouse or surviving
                                          spouse and serviced by the
                                          school--Allowance paid
                                          quarterly.\3\
------------------------------------------------------------------------
\1\ If an eligible person under 38 U.S.C. chapter 35 pursuing
  independent study on a less than one-half-time basis completes his or
  her program before the designated completion time, his or her award
  will be recomputed to permit payment of tuition and fees not to exceed
  $242 or $121, as appropriate, per month, if the maximum allowance is
  not initially authorized.
\2\ See footnote 5 of Sec.  21.4270(c) for measurement of full time and
  Sec.  21.3132(c) for proportionate reduction in award for completion
  of less than 120 hours per month.
\3\ Established charge means the charge for the course or courses
  determined on the basis of the lowest extended time payment plan
  offered by the institution and approved by the appropriate State
  Approving agency or the actual cost to the eligible spouse of
  surviving spouse, whichever is less. VA considers the continuity of an
  enrollment broken when there are more than 6 months between the
  servicing of the lessons.


(Authority: 38 U.S.C. 3532(a), 3542(a), 3687(b)(2))
* * * * *


Sec. 21.3300  [Amended]

    4. In Sec. 21.3300, paragraph (c) is amended by removing ``$119'' 
and adding, in its place, ``$152''.


Sec. 21.3333  [Amended]

    5. In Sec. 21.3333, paragraph (a) is amended by removing ``$404'' 
and adding, in its place, ``$485'', and by removing ``$127'' both 
places it appears and adding, in its place, ``$152''; and paragraph 
(b)(1) is amended by removing ``$13.46'' and adding, in its place, 
``$16.16'', and by removing ``$404'' and adding, in its place, 
``$485''.

[FR Doc. 98-32646 Filed 12-8-98; 8:45 am]
BILLING CODE 8320-01-P