[Federal Register Volume 68, Number 110 (Monday, June 9, 2003)]
[Rules and Regulations]
[Pages 34319-34326]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-14282]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AL17


Increase in Rates Payable Under the Montgomery GI Bill--Active 
Duty and Survivors' and Dependents' Educational Assistance Program

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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

SUMMARY: This document amends the regulations governing rates of 
educational assistance payable under the Montgomery GI Bill--Active 
Duty and Survivors' and Dependents' Educational Assistance programs to 
reflect increases required by statutory provisions. These include 
increases that were effective October 1, 2001, and January 1, 2002, in 
both programs. For the Montgomery GI Bill--Active Duty program, these 
also include increases for the fiscal years beginning October 1, 2002, 
and October 1, 2003, under statutory provisions setting rates that for 
those two years are not to be adjusted by the Consumer Price Index-W.

DATES: Effective Date: This final rule is effective June 9, 2003.
    Applicability Dates: The changes in rates are applied to conform to 
the respective statutory requirements. For more information concerning 
the dates of applicability, see the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Lynn M. Cossette, Education Advisor, 
Education Service, Veterans Benefit Administration, (202) 273-7294.

SUPPLEMENTARY INFORMATION: Under the formula mandated by 38 U.S.C. 3015 
(as in effect on October 1, 2001) for Fiscal Year 2002, the rates of 
basic educational assistance under the Montgomery GI Bill--Active Duty 
(MGIB) payable to students pursuing a program of education full time 
were increased effective October 1, 2001, by 3.4%, which is the 
percentage by which the total of the monthly Consumer Price Index-W 
(CPI-W) for July 1, 2000, through June 30, 2001, exceeds the total of 
the monthly CPI-W for July 1, 1999, through June 30, 2000.
    In addition, the Veterans Education and Benefits Expansion Act of 
2001 (Pub. L. 107-103) increased the monthly rate of MGIB benefits in 
three steps. The effective date of step one is January 1, 2002. Step 
two is effective October 1, 2002, for Fiscal Year 2003 and step three 
is effective October 1, 2003, for Fiscal Year 2004. During Fiscal Years 
2003 and 2004, the MGIB rates are not

[[Page 34320]]

adjusted by the CPI-W, since this statute removes the authority to 
adjust by the CPI-W for those two years. CPI-W adjustments will resume 
October 1, 2004, with the beginning of Fiscal Year 2005. We are 
changing the regulations governing rates payable under the MGIB to 
reflect the increase effective October 1, 2001, attributable to the 
CPI-W and the step increases provided for in Pub. L. 107-103.
    It should be noted that these MGIB increases do not affect all 
educational assistance payable under the MGIB. The increases don't 
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''). They don't apply to 
amounts payable for dependents. Veterans who previously had eligibility 
under the Veterans' Educational Assistance program (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.
    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 MGIB 
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.
    In addition, 38 U.S.C. 3032(c) requires that monthly rates payable 
to veterans in apprenticeship or other on-the-job training must be set 
at a given percentage of the full-time rate. Hence, we are changing 
those regulations to reflect increases effective October 1, 2001, 
January 1, 2002, October 1, 2002, and October 1, 2003, in accordance 
with the increase attributable to the CPI-W and the applicable 
provisions of Pub. L. 107-103.
    By statute, the monthly rates of basic educational assistance 
payable under the Survivors' and Dependents' Educational Assistance 
(DEA) program must be adjusted each fiscal year. In accordance with the 
statutory formula, the regulations governing rates of educational 
assistance payable under the DEA program for Fiscal Year 2002 (October 
1, 2001, through September 30, 2002) are changed to show a 3.4% 
increase in these rates. The 3.4% increase is based on the percentage 
by which the total of the monthly CPI-W for July 1, 2000, through June 
30, 2001, exceeds the total of the monthly CPI-W for July 1, 1999, 
through June 30, 2000.
    Pub. L. 107-103 further increased the DEA program rates for the 
months during Fiscal Year 2002 that follow December 2001. That Act 
provides that beginning on January 1, 2002, the rates of basic 
educational assistance under the DEA program must be increased beyond 
the increase that went into effect on October 1, 2001. Changes are made 
to the regulations governing rates payable under the DEA program to 
reflect both rate increases.
    Nonsubstantive changes also are made for the purpose of clarity.
    The changes set forth in this final rule are effective from the 
date of publication, but the changes in the rates are applied in 
accordance with the applicable statutory provisions discussed above.

Administrative Procedure Act

    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.

Executive Order 12866

    This document has been reviewed by the Office of Management and 
Budget under Executive Order 12866.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3521).

Regulatory Flexibility Act

    The initial and final regulatory flexibility analyses requirements 
of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 
601-612, are not applicable to this rule, because the agency is not 
required to publish a notice of proposed rulemaking for this rule. Even 
so, 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. This final rule directly affects only individuals and 
does not directly affect small entities. Therefore, this final rule is 
also exempt pursuant to 5 U.S.C. 605(b) from the initial and final 
regulatory flexibility analyses requirements of sections 603 and 604.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that 
agencies prepare an assessment of anticipated costs and benefits before 
developing any rule that may result in an expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector, of 
$100 million or more in any given year. This rule will have no 
consequential effect on State, local or tribal governments.

Catalog of Federal Domestic Assistance Program Numbers

    The Catalog of Federal Domestic Assistance numbers for the programs 
affected by this final rule are 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: March 7, 2003.
Anthony J. Principi,
Secretary of Veterans Affairs.


0
For the reasons set out above, 38 CFR part 21 (subparts C and K) is 
amended as follows:

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

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

0
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.

0
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 of a spouse or surviving spouse for pursuit of a 
course

[[Page 34321]]

exclusively by correspondence will be 1 month for each of the following 
amounts paid as an educational assistance allowance:
    (1) $588 paid after October 31, 2000, and before October 1, 2001;
    (2) $608 paid after September 30, 2001, and before January 1, 2002; 
and
    (3) $670 paid after December 31, 2001.


(Authority: 38 U.S.C. 3534(b), 3564, 3686(a)).

* * * * *

0
3. Section 21.3131 is amended by:
0
a. Revising paragraph (a)
0
b. Redesignating paragraphs (b), (c), and (d) as paragraphs (c), (d), 
and (e), respectively.
0
c. Adding a new paragraph (b).
    The revision and addition 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 for pursuit of 
education or training that occurs after September 30, 2001, and before 
January 1, 2002:

----------------------------------------------------------------------------------------------------------------
               Type of course                                            Monthly rate
----------------------------------------------------------------------------------------------------------------
Institutional:
    Full time..............................  $608.00
    \3/4\ time.............................  456.00
    \1/2\ time.............................  304.00
    Less than \1/2\ but more than \1/4\      304.00
     time \1\.
    \1/4\ time or less \1\.................  152.00
Cooperative training (other than farm
 cooperative) (Full time only).
Apprenticeship or on-the-job (full time      608.00
 only) \2\:
    First six months.......................  443.00
    Second six months......................  331.00
    Third six months.......................  219.00
    Fourth six months and thereafter.......  111.00
Farm cooperative:
    Full time..............................  491.00
    \3/4\ time.............................  368.00
    \1/2\ time.............................  246.00
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 $304.00 or $152.00, 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 or 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), (d))


    (b) Rates. Except as provided in Sec.  21.3132, educational 
assistance allowance is payable at the following rates for pursuit of 
education or training that occurs after December 31, 2001, and before 
October 1, 2002:

----------------------------------------------------------------------------------------------------------------
               Type of course                                            Monthly rate
----------------------------------------------------------------------------------------------------------------
Institutional:
    Full time..............................  $670.00
    \3/4\ time.............................  503.00
    \1/2\ time.............................  335.00
    Less than \1/2\ but more than \1/4\      335.00
     time \1\.
    \1/4\ time or less \1\.................  167.50
Cooperative training (other than farm
 cooperative) (Full time only).
Apprenticeship or on-the-job (full time
 only) \2\:
    First six months.......................  488.00
    Second six months......................  365.00
    Third six months.......................  242.00
    Fourth six months and thereafter.......  122.00
Farm cooperative:
    Full time..............................  541.00
    \3/4\ time.............................  406.00
    \1/2\ time.............................  271.00
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 $335.00 or $167.50, as appropriate, per month, if the
  maximum allowance is not initially authorized.

[[Page 34322]]

 
\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 or 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), (d))

* * * * *

0
4. In Sec.  21.3300, paragraph (c) is revised to read as follows:


Sec.  21.3300  Special restorative training.

* * * * *
    (c) Duration of special restorative training. VA may provide 
special restorative training in excess of 45 months where an additional 
period of time is needed to complete the training. Entitlement, 
including any authorized in excess of 45 months, may be expended 
through an accelerated program requiring a rate of payment for tuition 
and fees in excess of--
    (1) $190.00 a month for the period beginning October 1, 2001, and 
ending December 31, 2001;
    (2) $210.00 a month for months after December 31, 2001.

(Authority: 38 U.S.C. 3541(b), 3542)

* * * * *

0
5. Section 21.3333 is amended by:
0
a. Revising paragraph (a).
0
b. In paragraph (b)(1), removing ``Effective November 1, 2000''; 
removing ``$19.60'' and adding, in its place, ``$20.28''; and removing 
``$588'' and adding, in its place, ``$608.00 for the period October 1, 
2001, through December 31, 2001, and for each $22.33 that the special 
training allowance exceeds the basic monthly rate of $670.00 for months 
beginning January 1, 2002''.
    The revision reads as follows:


Sec.  21.3333  Rates.

    (a) Rates. Special training allowance is payable at the following 
monthly rates, except as provided in paragraph (c) of this section.
    (1) For special restorative training that occurs after September 
30, 2001, and before January 1, 2002.

------------------------------------------------------------------------
             Course               Monthly  rate     Accelerated charges
------------------------------------------------------------------------
Special restorative training...         $608.00   If costs for tuition
                                                   and fees average in
                                                   excess of $190.00 per
                                                   month, rate may be
                                                   increased by such
                                                   amount in excess of
                                                   $190.00.
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3542)


    (2) For special restorative training that occurs after December 31, 
2002:

------------------------------------------------------------------------
             Course               Monthly  rate     Accelerated charges
------------------------------------------------------------------------
Special restorative training...         $670.00   If costs for tuition
                                                   and fees average in
                                                   excess of $210.00 per
                                                   month, rate may be
                                                   increased by such
                                                   amount in excess of
                                                   $210.00.
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3542)

* * * * *

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

0
6. 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.


0
7. Section 21.7136 is amended by:
0
a. Revising paragraphs (b) and (c)(1) through (c)(5).
0
b. Adding paragraphs (c)(6) through (c)(9).
    The revisions and additions 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, 2001, and before January 
1, 2002, 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....................................................    $672.00
\3/4\ time...................................................     504.00
\1/2\ time...................................................     336.00
Less than \1/2\ time but more than \1/4\ time................     336.00
\1/4\ time...................................................     168.00
------------------------------------------------------------------------


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


    (2) 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 December 31, 2001, and before October 1, 
2002, 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....................................................    $800.00
\3/4\ time...................................................     600.00
\1/2\ time...................................................     400.00
Less than \1/2\ but more than \1/4\ time.....................     400.00
\1/4\ time or less...........................................     200.00
------------------------------------------------------------------------


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


    (3) 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, 2002, and before October 1, 
2003, 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....................................................    $900.00
\3/4\ time...................................................     675.00
\1/2\ time...................................................     450.00
Less than \1/2\ but more than \1/4\ time.....................     450.00
\1/4\ time or less...........................................     225.00
------------------------------------------------------------------------


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



[[Page 34323]]


    (4) 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, 2003, and before October 1, 
2004, 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....................................................    $985.00
\3/4\ time...................................................     738.75
\1/2\ time...................................................     492.50
Less than \1/2\ but more than \1/4\ time.....................     492.50
\1/4\ time or less...........................................     246.25
------------------------------------------------------------------------


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


    (5) 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 apprenticeship or other on-the-job training 
that occurs after September 30, 2001, and before January 1, 2002, is 
the rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                            rate
------------------------------------------------------------------------
First six months of training.................................    $504.00
Second six months of training................................     369.60
Remaining pursuit of training................................     235.20
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (6) 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 apprenticeship or other on-the-job training 
that occurs after December 31, 2001, and before October 1, 2002, is the 
rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                            rate
------------------------------------------------------------------------
First six months of training.................................    $600.00
Second six months of training................................     440.00
Remaining pursuit of training................................     280.00
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (7) 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 apprenticeship or other on-the-job training 
that occurs after September 30, 2002, and before October 1, 2003, is 
the rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                            rate
------------------------------------------------------------------------
First six months of training.................................    $675.00
Second six months of training................................     495.00
Remaining pursuit of training................................     315.00
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (8) 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 apprenticeship or other on-the-job training 
that occurs after September 30, 2003, and before October 1, 2004, is 
the rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                       Training period                            rate
------------------------------------------------------------------------
First six months of training.................................    $738.75
Second six months of training................................     541.75
Remaining pursuit of training................................     344.75
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (9) 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) $672.00 for training that occurs after September 30, 2001, and 
before January 1, 2002;
    (ii) $800.00 for training that occurs after December 31, 2001, and 
before
    October 1, 2002;
    (iii) $900.00 for training that occurs after September 30, 2002, 
and before October 1, 2003; and
    (iv) $985.00 for training that occurs after September 30, 2003, and 
before
    October 1, 2004.

(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, 2001, and before 
January 1, 2002, is the rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
Full time....................................................    $546.00
\3/4\ time...................................................     409.50
\1/2\ time...................................................     273.00
Less than \1/2\ but more than \1/4\ time.....................     273.00
\1/4\ time or less...........................................     136.50
------------------------------------------------------------------------


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


    (2) 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 December 31, 2001, and before 
October 1, 2002, is the rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
Full time....................................................    $650.00
\3/4\ time...................................................     487.50
\1/2\ time...................................................     325.00
Less than \1/2\ but more than \1/4\ time.....................     325.00
\1/4\ time or less...........................................     162.50
------------------------------------------------------------------------


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


    (3) 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, 2002, and before 
October 1, 2003, is the rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
Full time....................................................    $732.00
\3/4\ time...................................................     549.00
\1/2\ time...................................................     366.00
Less than \1/2\ but more than \1/4\ time.....................     366.00
\1/4\ time or less...........................................     183.00
------------------------------------------------------------------------


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


    (4) 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, 2003, and before 
October 1, 2004, is the rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
Full time....................................................    $800.00
\3/4\ time...................................................     600.00
\1/2\ time...................................................     400.00
Less than \1/2\ but more than \1/4\ time.....................     400.00
\1/4\ time or less...........................................     200.00
------------------------------------------------------------------------


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


    (5) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of apprenticeship or other on-the-job training that 
occurs after September 30, 2001, and before January 1, 2002, is the 
rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
First six months of training.................................    $409.50
Second six months of training................................     300.30
Remaining pursuit of training................................     191.10
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))



[[Page 34324]]


    (6) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of apprenticeship or other on-the-job training that 
occurs after December 31, 2001, and before October 1, 2002, is the rate 
stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
First six months of training.................................    $487.50
Second six months of training................................     357.50
Remaining pursuit of training................................     227.50
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (7) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of apprenticeship or other on-the-job training that 
occurs after September 30, 2002, and before October 1, 2003, is the 
rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
First six months of training.................................    $549.00
Second six months of training................................     402.00
Remaining pursuit of training................................     256.20
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (8) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of apprenticeship or other on-the-job training that 
occurs after September 30, 2003, and before October 1, 2004, is the 
rate stated in the following table:

------------------------------------------------------------------------
                                                                Monthly
                           Training                               rate
------------------------------------------------------------------------
First six months of training.................................    $600.00
Second six months of training................................     440.00
Remaining pursuit of training................................     280.00
------------------------------------------------------------------------


(Authority: 38 U.S.C. 3015, 3032(c))


    (9) The monthly rate of basic educational assistance payable to a 
veteran for pursuit of a cooperative course is:
    (i) $546.00 for training that occurs after September 30, 2001, and 
before January 1, 2002;
    (ii) $650.00 for training that occurs after December 31, 2001, and 
before October 1, 2002;
    (iii) $732.00 for training that occurs after September 30, 2002, 
and before October 1, 2003; and
    (iv) $800.00 for training that occurs after September 30, 2003, and 
before October 1, 2004.

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

* * * * *

0
8. In Sec.  21.7137, the section heading and paragraphs (a) and (c)(2) 
are revised to read as follows:


Sec.  21.7137  Rates of payment of basic educational assistance for 
individuals with remaining entitlement under 38 U.S.C. chapter 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, 2001, and before January 1, 2002, is 
the rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                    Additional
                    Training                                                            Two          for each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Full time.......................................         $860.00         $896.00         $927.00          $16.00
\3/4\ time......................................          645.50          672.00          695.50           12.00
\1/2\ time......................................          430.00          448.00          463.50            8.50
Less than \1/2\ but more than \1/4\ time........          430.00          430.00          430.00            0
\1/4\ time or less..............................          215.00          215.00          215.00            0
----------------------------------------------------------------------------------------------------------------


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


    (2) Except as elsewhere provided in this section, the monthly rate 
of basic educational assistance for training that occurs after December 
31, 2001, and before October 1, 2002, is the rate stated in the 
following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                    Additional
                    Training                                                            Two          for each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Full time.......................................         $988.00        $1024.00        $1055.00          $16.00
\3/4\ time......................................          741.50          768.00          791.50           12.00
\1/2\ time......................................          494.00          512.00          527.50            8.50
Less than \1/2\ but more than \1/4\ time........          494.00          494.00          494.00            0
\1/4\ time or less..............................          247.00          247.00          247.00            0
----------------------------------------------------------------------------------------------------------------


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


    (3) Except as elsewhere provided in this section, the monthly rate 
of basic educational assistance for training that occurs after 
September 30, 2002, and before October 1, 2003, is the rate stated in 
the following table:

[[Page 34325]]



----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                    Additional
                    Training                                                            Two          for each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Full time.......................................        $1088.00        $1124.00        $1155.00          $16.00
\3/4\ time......................................          816.50          843.00          866.50           12.00
\1/2\ time......................................          544.00          562.00          577.50            8.50
Less than \1/2\ but more than \1/4\ time........          544.00          544.00          544.00            0
\1/4\ time or less..............................          272.00          272.00          272.00            0
----------------------------------------------------------------------------------------------------------------


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


    (4) Except as elsewhere provided in this section, the monthly rate 
of basic educational assistance for training that occurs after 
September 30, 2003, and before October 1, 2004, is the rate stated in 
the following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                    Additional
                    Training                                                            Two          for each
                                                  No  dependents  One  dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Full time.......................................        $1173.00        $1209.00        $1240.00          $16.00
\3/4\ time......................................          880.25          906.75          930.25           12.00
\1/2\ time......................................          586.50          604.50          620.00            8.50
Less than \1/2\ but more than \1/4\ time........          586.50          586.50          586.50            0
\1/4\ time or less..............................          293.25          293.25          293.25            0
----------------------------------------------------------------------------------------------------------------


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


    (5) For veterans pursuing apprenticeship or other on-the-job 
training, the monthly rate of basic educational assistance for training 
that occurs after September 30, 2001, and before January 1, 2002, is 
the rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                             Monthly rate
                                                     -----------------------------------------------------------
                                                                                                      Additional
                   Training period                                                          Two         for each
                                                      No  dependents  One  dependent    dependents    additional
                                                                                                       dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program................         $606.75         $619.13         $630.00  $5.25
2nd six months of pursuit of program................          425.98          435.33          443.03   3.85
3rd six months of pursuit of program................          259.00          265.13          269.85   2.45
Remaining pursuit of program........................          247.10          252.88          258.13   2.45
----------------------------------------------------------------------------------------------------------------


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


    (6) For veterans pursuing apprenticeship or other on-the-job 
training, the monthly rate of basic educational assistance for training 
that occurs after December 31, 2001, and before October 1, 2002, is the 
rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                 Training period                                                        Two            each
                                                   No dependents   One dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program............         $702.75         $715.13         $726.00           $5.25
2nd six months of pursuit of program............          496.38          505.73          513.43            3.85
3rd six months of pursuit of program............          303.80          309.93          314.65            2.45
Remaining pursuit of program....................          291.90          297.68          302.93            2.45
----------------------------------------------------------------------------------------------------------------


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


    (7) For veterans pursuing apprenticeship or other on-the-job 
training, the monthly rate of basic educational assistance for training 
that occurs after September 30, 2002, and before October 1, 2003, is 
the rate stated in the following table:

[[Page 34326]]



----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                    Training                                                            Two            each
                                                   No dependents   One dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program............         $777.75         $790.13         $801.00           $5.25
2nd six months of pursuit of program............          551.38          560.73          568.43            3.85
3rd six months of pursuit of program............          338.80          344.93          349.65            2.45
Remaining pursuit of program....................          326.90          332.68          337.93            2.45
----------------------------------------------------------------------------------------------------------------


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


    (8) For veterans pursuing apprenticeship or other on-the-job 
training, the monthly rate of basic educational assistance for training 
that occurs after September 30, 2003, and before October 1, 2004, is 
the rate stated in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                    Training                                                            Two            each
                                                   No dependents   One dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
1st six months of pursuit of program............         $841.50         $853.88         $864.75           $5.25
2nd six months of pursuit of program............          598.13          607.48          615.18            3.85
3rd six months of pursuit of program............          368.55          374.68          379.40            2.45
Remaining pursuit of program....................          356.65          362.43          367.68            2.45
----------------------------------------------------------------------------------------------------------------


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


    (9) The monthly rate of basic educational assistance payable to a 
veteran who is pursuing a cooperative course is the rate stated in the 
following table:

----------------------------------------------------------------------------------------------------------------
                                                                           Monthly rate
                                                 ---------------------------------------------------------------
                                                                                                  Additional for
                 Training period                                                        Two            each
                                                   No dependents   One dependent    dependents      additional
                                                                                                     dependent
----------------------------------------------------------------------------------------------------------------
Oct. 1, 2001-Dec. 31, 2001......................         $860.00         $896.00         $927.00          $16.00
Jan. 1, 2002-Sept. 30, 2002.....................          988.00         1024.00         1055.00           16.00
Oct. 1, 2002-Sept. 30, 2003.....................         1088.00         1124.00         1155.00           16.00
Oct. 1, 2003-Sept. 30, 2004.....................         1173.00         1209.00         1240.00           16.00
----------------------------------------------------------------------------------------------------------------


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

* * * * *
    (c) * * *
    (2)(i) The following monthly rates for training that occurs after 
September 30, 2001, and before January 1, 2002--
    (A) $860.00 for full-time training;
    (B) $645.50 for three-quarter-time training;
    (C) $430.00 for one-half-time training and training that is less 
than one-half but more than one-quarter-time training; and
    (D) $215.00 for one-quarter-time training.

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


    (ii) The following monthly rates for training that occurs after 
December 30, 2001, and before October 1, 2002--
    (A) $988.00 for full-time training;
    (B) $741.50 for three-quarter-time training;
    (C) $494.00 for one-half-time training and training that is less 
than one-half but more than one-quarter-time training; and
    (D) $247.00 for one-quarter-time training.
    (iii) The following monthly rates for training that occurs after 
September 30, 2002, and before October 1, 2003--
    (A) $1088.00 for full-time training;
    (B) $816.50 for three-quarter-time training;
    (C) $544.00 for one-half-time training and training that is less 
than one-half but more than one-quarter-time training; and
    (D) $272.00 for one-quarter-time training.
    (iv) The following monthly rates for training that occurs after 
September 30, 2003, and before October 1, 2004--
    (A) $1173.00 for full-time training;
    (B) $880.25 for three-quarter-time training;
    (C) $586.50 for one-half-time training and training that is less 
than one-half but more than one-quarter-time training; and
    (D) $293.25 for one-quarter-time training.

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

* * * * *
[FR Doc. 03-14282 Filed 6-6-03; 8:45 am]
BILLING CODE 8320-01-P