[Federal Register Volume 64, Number 189 (Thursday, September 30, 1999)]
[Rules and Regulations]
[Pages 52650-52652]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25284]


=======================================================================
-----------------------------------------------------------------------

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; 
Miscellaneous Nonsubstantive Changes

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

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: This document amends the educational assistance regulations 
dealing with the advance payment and lump-sum payment of educational 
assistance. We are amending 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. In 
addition, this document makes nonsubstantive changes for the purpose of 
clarification in the educational assistance regulations concerning 
eligibility for the Montgomery GI Bill--Active Duty program.

DATES: Effective Date: September 30, 1999.

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

SUPPLEMENTARY INFORMATION: In the Federal Register of May 20, 1998 (63 
FR 27701), the Department of Veterans Affairs (VA), the Department of 
Defense (DOD), and the Department of Transportation (Coast Guard) 
proposed amending the educational assistance regulations concerning 
advance payments and lump-sum payments of educational assistance. We 
proposed removing obsolete provisions and clarifying other provisions.
    Interested persons were given 60 days in which to submit comments 
to VA. We received no comments. Based on the rationale set forth in the 
proposed rule and this document, the provisions of the proposed rule 
are adopted without change, except that nonsubstantive changes are made 
for the purpose of clarification and authority citations are changed.
    DOD and VA are jointly issuing this final rule insofar as it 
relates to the Post-

[[Page 52651]]

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 final 
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 VA. VA alone is issuing the remainder of this final rule.

Paperwork Reduction Act

    The collection of information contained in this final rule in 38 
CFR 21.4138(a) has been approved by the Office of Management and Budget 
(OMB) under the provisions of the Paperwork Reduction Act (44 U.S.C. 
3501-3520) and has been assigned OMB control number 2900-0604. The 
collection of information implements a statutory provision that 
mandates that an individual who wishes to receive an advance payment of 
educational assistance must ask for it. We received no comments on the 
proposed collection of information.
    OMB assigns a control number for each collection of information it 
approves. VA may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The valid OMB control number 
assigned to the collection of information in this final rule is 
displayed at the end of the affected section of the regulations.

Administrative Procedure Act

    Under 5 U.S.C. 553, there is a basis for dispensing with a 30-day 
delay of the effective date since the changes made by this final rule 
are nonsubstantive.

Executive Order 12866

    This final rule has been reviewed by OMB under Executive Order 
12866.

Regulatory Flexibility Act

    The signers of this document hereby certify 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. The adoption of this final rule does not make 
substantive changes. It removes provisions that no longer apply and 
makes other changes for purposes of clarification.
    The Catalog of Federal Domestic Assistance numbers for programs 
affected by this final rule are 64.117, 64.120, and 64.124. The final 
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: March 25, 1999.
Togo D. West, Jr.,
Secretary of Veterans Affairs.

    Approved: April 29, 1999.
Curtis B. Taylor,
Colonel, U.S. Army, Principal Director, (Military Personnel Policy)
    Department of Defense.

    Approved: May 27, 1999.
F. L. Ames
Read Admiral, U.S. Coast Guard, Assistant Commandant For Human 
Resources.

    For the reasons set out in the preamble, 38 CFR part 21 is 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 is revised to read as 
follows:

    Authority: 10 U.S.C. 2141 note, 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; paragraphs (a) and (b) are 
revised; and a parenthetical is added to the end of the section, 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 of 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.


[[Page 52652]]


(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))
* * * * *
(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0604)

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), chs. 32, 36, 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), chs. 30, 36, unless otherwise 
noted.

    6. The heading of Sec. 21.7040 is revised to read as follows:


Sec. 21.7040  Categories of basic eligibility.

    7. The heading of Sec. 21.7042 and the parenthetical at the end of 
the section are revised to read as follows:


Sec. 21.7042  Basic eligibility requirements.

* * * * *
(The Office of Management and Budget has approved the information 
collection requirements in this section under control number 2900-
0594)
    8. In Sec. 21.7140, paragraph (b) is removed; paragraphs (c), (d), 
(e), (f), and (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

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

    Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), 512, ch. 36, 
unless otherwise noted.

    10. In Sec. 21.7640, the authority citations for paragraphs (b), 
(c), (e), and (f) are amended by removing ``; Pub. L. 98-525''; 
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. 99-25284 Filed 9-29-99; 8:45 am]
BILLING CODE 8320-01-P