[Federal Register Volume 64, Number 113 (Monday, June 14, 1999)]
[Rules and Regulations]
[Pages 31693-31695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-14916]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AJ37


Veterans Education: Increase in Educational Assistance Rates

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 a 
statutory formula. The Veterans Benefits Assistance Act of 1998 
provides an increase of approximately 20% that supersedes the otherwise 
applicable statutory increase for Fiscal Year 1999 (October 1, 1998, 
through September 30, 1999). The regulations governing rates of basic 
educational assistance payable under the Montgomery GI Bill--Active 
Duty are changed to show the rates indicated in the Act for Fiscal Year 
1999. Regular annual adjustments to these rates will resume commencing 
with Fiscal Year 2000.

DATES: Effective Date: 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: As provided by the Veterans Benefits Act of 
1998 (Pub. L. 105-178, Subtitle B), 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 
approximately 20%.
    It should be noted that some veterans will receive an increase in 
monthly payments that will be less than 20%. 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 20%.
    Public Law 105-178, Subtitle B increases the full-time rates for 
institutional training. These increased rates result in proportionate 
increases in the benefits payable for other types of training whose 
rates are based on the

[[Page 31694]]

institutional training rates. For example, monthly rates payable to 
veterans in apprenticeship or other on-job training are set by statute 
at a given percentage of the full-time institutional rate.
    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 
institutional 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 institutional 
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 institutional rate. Changes are made consistent with the 
authority and formula described in this paragraph.
    Nonsubstantive changes also are made for the purpose of clarity.
    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 numbers for the 
programs affected by this final rule in 64.117 and 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 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 4, 1998.
Togo D. West, Jr.,
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, continues 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), and (c)(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, 1998, and before October 
1, 1999, 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..................................................      $528.00
\3/4\ time.................................................       396.00
\1/2\ time.................................................       264.00
Less than \1/2\ but more than \1/4\ time...................       264.00
\1/4\ time.................................................       132.00
------------------------------------------------------------------------

(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, 
1998, and before October 1, 1999, is the rate stated in the following 
table:

------------------------------------------------------------------------
                                                               Monthly
                      Training period                            rate
------------------------------------------------------------------------
First six months of pursuit of training....................      $396.00
Second six months of pursuit of training...................       290.40
Remaining pursuit of training..............................       184.80
------------------------------------------------------------------------

(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:
    (i) $439.85 for training that occurs after September 30, 1997, and 
before October 1, 1998; and
    (ii) $528.00 for training that occurs on or after October 1, 1998, 
and before October 1, 1999.

(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, 1998, and 
before October 1, 1999, is the rate stated in the following table.

------------------------------------------------------------------------
                                                               Monthly
                          Training                               rate
------------------------------------------------------------------------
Full time..................................................      $429.00
\3/4\ time.................................................       321.75
\1/2\ time.................................................       214.50
Less than \1/2\ but more than \1/4\ time...................       214.50
\1/4\ time or less.........................................       107.25
------------------------------------------------------------------------

(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, 1998, and before October 1, 1999, is the rate 
stated in the following table:

------------------------------------------------------------------------
                                                               Monthly
                      Training period                            rate
------------------------------------------------------------------------
First six months of pursuit of training....................      $321.75
Second six months of pursuit of training...................       235.95
Remaining pursuit of training..............................       150.15
------------------------------------------------------------------------

(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) $357.38 for training that occurs after September 30, 1997, and 
before October 1, 1998; and
    (ii) $429.00 for training that occurs on or after October 1, 1998, 
and before October 1, 1999.

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

    3. In Sec. 21.7137, paragraph (c)(2) introductory text is amended 
by removing ``1997, and before October 1, 1998'' and adding, in its 
place ``1998, and before October 1, 1999''; paragraph (c)(2)(i) is 
amended by removing ``$627.85'' and adding, in its place ``$716.00''; 
paragraph (c)(2)(ii) is amended by removing ``$471.39'' and adding, in 
its place, ``$537.50''; paragraph (c)(2)(iii) is amended by removing 
``$313.93'' and adding, in its place ``$358.00''; paragraph (c)(2)(iv) 
is amended by removing ``$156.96'' and adding, in its place 
``$179.00''; and paragraph (a) is revised to read as follows:

[[Page 31695]]

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, 1998, and before October 1, 1999, is 
the rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
Full time...................................................      $716.00      $752.00      $783.00       $16.00
\3/4\ time..................................................       537.50       564.00       587.50        12.00
\1/2\ time..................................................       358.00       376.00       391.50         8.50
Less than \1/2\ but more than \1/4\ time....................       358.00  ...........  ...........  ...........
\1/4\ time or less..........................................       179.00  ...........  ...........  ...........
----------------------------------------------------------------------------------------------------------------

(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, 1998, and before October 1, 1999, is the 
rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program........................      $498.75      $511.13      $522.00        $5.25
2nd six months of pursuit of program........................       346.78       356.13       363.83         3.85
3rd six months of pursuit of program........................       208.60       214.73       219.45         2.45
Remaining pursuit of program................................       196.70       202.48       207.73         2.45
----------------------------------------------------------------------------------------------------------------

(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, 1997-Sept. 30, 1998.................................      $627.85      $663.85      $694.85       $16.00
On or after Oct. 1, 1998, and before Oct. 1, 1999...........       716.00       752.00       783.00        16.00
----------------------------------------------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015)
* * * * *
[FR Doc. 99-14916 Filed 6-11-99; 8:45 am]
BILLING CODE 8320-01-P