Veterans Education; Clarification of Eligibility Requirements for the Montgomery GI BillActive Duty

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AG59

Veterans Education; Clarification of Eligibility Requirements for

the Montgomery GI Bill--Active Duty

AGENCY: Department of Veterans Affairs.

ACTION: Final rules.

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SUMMARY: Generally, someone who receives a commission upon graduating

from a service academy or who receives a commission upon completion of

a program of educational assistance under the Reserve Officers Training

Corps Scholarship Program is not eligible for educational assistance

under the Montgomery GI Bill--Active Duty. However, this does not apply

to those who already had established entitlement under this program

before being commissioned. These amended regulations will make this

policy clear to the public.

EFFECTIVE DATE: July 1, 1985.

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer (225), Assistant

Director for Policy and Program Administration, Education Service,

Veterans Benefits Administration, Department of Veterans Affairs, 810

Vermont Avenue, NW., Washington, DC 20420, 202-233-2092.

SUPPLEMENTARY INFORMATION: On pages 50873 through 50875 of the Federal

Register of September 29, 1993, there was published a Notice of Intent

to amend 38 CFR part 21 in order to clarify certain eligibility

requirements for the Montgomery GI Bill--Active Duty. Interested people

were given 30 days to submit comments, suggestions or objections. VA

received no comments, suggestions or objections. Accordingly, VA is

making the regulations final.

Generally, someone who, after December 31, 1976, receives a

commission upon graduating from a service academy or who receives a

commission upon completion of a program of educational assistance under

the Reserve Officers Training Corps Scholarship Program is not eligible

for educational assistance under the Montgomery GI Bill--Active Duty.

However, this does not apply to those who already had established

entitlement under this program before being commissioned.

For example, there have been instances where someone established

entitlement under the Montgomery GI Bill--Active Duty by entering

active duty as an enlisted person after June 30, 1985; having his or

her pay reduced by $1200; and serving for at least two years. Then the

servicemember was chosen to attend a service academy. Upon graduation

from the academy the individual sought educational assistance under the

Montgomery GI Bill--Active Duty. By amending the appropriate

regulations it will be clear that these individuals maintain their

eligibility for educational assistance.

The Secretary of Veterans Affairs has certified that these amended

regulations will not have a significant economic impact on a

substantial number of small entities as they are defined in the

Regulatory Flexibility Act (RFA), 5 U.S.C. 601-612. Pursuant to 5

U.S.C. 605(b), the amended regulations, therefore, are exempt from the

initial and final regulatory flexibility analyses requirements of

sections 603 and 604.

This certification can be made because the amended regulations

directly affect only individuals. They will have no significant

economic impact on small entities, i.e., small businesses, small

private and nonprofit organizations and small governmental

jurisdictions.

The Department of Veterans Affairs finds that good cause exists for

making the amendments to Secs. 21.7042 and 21.7044, like the provisions

of law they implement, retroactively effective on July 1, 1985.

It is necessary to make the effective date of the regulations July

1, 1985. That date is the first date anyone could qualify for

educational assistance under the Montgomery GI Bill--Active Duty. An

effective date of July 1, 1985, will ensure that everyone who has filed

a claim in the past and to whom these regulations apply would qualify

for educational assistance.

The Catalog of Federal Domestic Assistance number for the

program affected by these amended regulations is 64.124.

List of Subjects in 38 CFR Part 21

Civil rights, Claims, Education, Grant programs-education, Loan

programs-education, Reporting and recordkeeping requirements, Schools,

Veterans, Vocational education, Vocational rehabilitation.

Approved: April 28, 1994.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set out in the preamble, 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 (New

GI Bill)

1. The authority citation for part 21, subpart K continues to read

as follows:

Authority: 38 U.S.C. chapter 30, Pub. L. 98-525; 38 U.S.C.

501(a).

2. Section 21.7042 is amended by revising the introductory text in

paragraph (f)(2) and adding paragraph (f)(3) and its authority citation

to read as follows:

Sec. 21.7042 Basic eligibility requirements.

* * * * *

(f) Restrictions on establishing eligibility. * * *

(2) Except as provided in paragraph (f)(3) of this section, an

individual is not eligible for educational assistance under 38 U.S.C.

ch. 30, if after December 31, 1976, he or she receives a commission as

an officer in the Armed Forces upon--

* * * * *

(3) Paragraph (f)(2) of this section does not apply to a veteran

who has met the requirements for educational assistance under paragraph

(a), (b) or (c) of this section before receiving a commission in the

Armed Forces upon graduation from the United States Military Academy,

the United States Naval Academy, the United States Air Force Academy,

the Coast Guard Academy; or upon completion of a program of educational

assistance under 10 U.S.C. 2107 (the Reserve Officers Training Corps

Scholarship Program).

(Authority: 38 U.S.C. 3011, 3012, 3018)

* * * * *

3. Section 21.7044 is amended by revising paragraph (d),

introductory text, and adding paragraph (e) and its authority citation

to read as follows:

Sec. 21.7044 Persons with 38 U.S.C. ch. 34 eligibility.

* * * * *

(d) Restrictions on establishing eligibility. Except as provided in

paragraph (e) of this section, an individual, who would otherwise be

eligible for educational assistance under paragraphs (a) or (b) of this

section, is not eligible for educational assistance under 38 U.S.C. ch.

30, if after December 31, 1976, he or she receives a commission as an

officer in the Armed Forces--

* * * * *

(e) Exception to restrictions on establishing eligibility.

Paragraph (d) of this section does not apply to a veteran who has met

the requirements for educational assistance under paragraph (a) or (b)

of this section before receiving a commission as an officer in the

Armed Forces upon graduation from the United States Military Academy,

the United States Naval Academy, the United States Air Force Academy,

or the Coast Guard Academy; or upon completion of a program of

educational assistance under 10 U.S.C. 2107 (the Reserve Officers

Training Corps Scholarship Program).

(Authority: 38 U.S.C. 3011, 3012, 3018)

[FR Doc. 94-11147 Filed 5-9-94; 8:45 am]

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