Dependents and Veterans Education: Mitigating Circumstances and Other Miscellaneous Amendments

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AG63

Dependents and Veterans Education: Mitigating Circumstances and

Other Miscellaneous Amendments

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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

SUMMARY: This document amends the Vocational Rehabilitation and

Education regulations to standardize the periods for submission of

mitigating circumstances justifying a withdrawal from a course. Failure

to submit mitigating circumstances within the prescribed time period

could result in the creation of overpayments of educational assistance.

This final rule applies to eligible persons receiving Dependents'

Educational Assistance and veterans and servicemembers receiving

educational assistance under the Post-Vietnam Era Veterans' Educational

Assistance Program (VEAP) and the Montgomery GI Bill--Active Duty. This

document also amends such regulations to remove attendance

recordkeeping requirements for educational institutions that do not

have attendance standards.

EFFECTIVE DATE: July 21, 1995.

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director

for Policy and Program Administration, Education Service, Veterans

Benefits Administration, (202) 273-7187.

SUPPLEMENTARY INFORMATION: The proposed rule was published in the

Federal Register of June 24, 1994 (59 FR 32671). Interested persons

were given 60 days to submit comments, suggestions or objections.

VA received one letter from a concerned individual. He urged the

department to adopt the proposed rule. For the reasons stated in the

proposal, VA is adopting the proposed rule as a final rule without any

changes.

The Secretary of Veterans Affairs hereby certifies that these

revised regulations will not have a significant economic impact on a

substantial number of small entities as they are [[Page 32272]] defined

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

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

the initial and final regulatory flexibility analyses requirements of

sections 603 and 604.

Any cost savings for schools which will result from no longer

having to maintain attendance records will not have a significant

economic impact on such schools. Further, other amendments directly

affect only individuals.

These regulations have been reviewed by OMB (the Office of

Management and Budget) under provisions of E.O. 12866.

The Catalog of Federal Domestic Assistance numbers for the

programs affected by this final rule are 64.117, 64.120 and 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: March 29, 1995.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set out in the preamble, 38 CFR part 21, subparts D

and K are amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Benefits; 38 U.S.C.

Chapters 34, 35, and 36

1. The authority citation for subpart D of part 21 continues to

read as follows:

Authority: 38 U.S.C. 501(a).

2. In Sec. 21.4136, paragraph (k)(1)(ii)(C) is revised to read as

follows:

Sec. 21.4136 Rates; educational assistance allowance; 38 U.S.C.

Chapter 34.

* * * * *

(k) Mitigating circumstances.

(1) * * *

(ii) * * *

(C) The veteran submits evidence supporting the existence of

mitigating circumstances within one year of the date that evidence is

requested by VA, or at a later date if the veteran is able to show good

cause why the one-year time limit should be extended to the date on

which he or she submitted the evidence supporting the existence of

mitigating circumstances.

* * * * *

3. In Sec. 21.4137, paragraph (h)(1)(ii)(C) is revised to read as

follows:

Sec. 21.4137 Rates; educational assistance allowance--38 U.S.C.

Chapter 35.

* * * * *

(h) Mitigating circumstances.

(1) * * *

(ii) * * *

(C) The eligible person submits evidence supporting the existence

of mitigating circumstances within one year of the date that evidence

is requested by VA, or at a later date if the eligible person is able

to show good cause why the one-year time limit should be extended to

the date on which he or she submitted the evidence supporting the

existence of mitigating circumstances.

* * * * *

Sec. 21.4234 [Amended]

4. In Sec. 21.4234(d)(2)(iii), remove the phrase ``Secs. 21.4230

and 21.4231'', and add, in its place, the phrase ``Sec. 21.4230''.

5. In Sec. 21.4253, paragraph (d)(5) is revised and an authority

citation is added for paragraph (d) to read as follows:

Sec. 21.4253 Accredited courses.

* * * * *

(d) School qualification. * * *

(5) If the school has a standard of attendance, it maintains

records of attendance for veterans and eligible persons enrolled in

resident courses which are adequate to show the student meets the

school's standard of attendance.

(Authority: 38 U.S.C. 3474, 3675)

* * * * *

Sec. 21.4262 [Amended]

6. In Sec. 21.4262(c)(10), remove the phrase ``as by'' and add, in

its place, the phrase, ``as approved by''.

Subpart K--All Volunteer Force Educational Assistance Program (New

GI Bill)

7. The authority citation for subpart K of part 21 continues to

read as follows:

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

501(a).

Sec. 21.7042 [Amended]

8. In Sec. 21.7042(b)(9), remove the phrase ``subparagraph (8) of

this subparagraph'', and add, in its place, the phrase ``paragraph

(b)(8) of this section''.

9. In Sec. 21.7042(d)(2)(i)(A), remove the phrase ``paragraph

(b)(b)'' and add, in its place, the phrase ``paragraph (b)''.

10. In Sec. 21.7139, paragraphs (b)(2), introductory text, and

(b)(2)(ii) are revised and paragraph (b)(2)(iii) is added to read as

follows:

Sec. 21.7139 Conditions which result in reduced rates.

* * * * *

(b) Withdrawals and nonpunitive grades. * * *

(2) All of the following exist.

(i) * * *

(ii) The veteran or servicemember submits a description of the

mitigating circumstances in writing to VA within one year from the date

VA notifies the veteran or servicemember that he or she must submit a

description of the mitigating circumstances, or at a later date if the

veteran or servicemember is able to show good cause why the one-year

time limit should be extended to the date on which he or she submitted

the description of the mitigating circumstances; and

(iii) The veteran or servicemember submits evidence supporting the

existence of mitigating circumstances within one year of the date that

evidence is requested by VA, or at a later date if the veteran or

servicemember is able to show good cause why the one-year time limit

should be extended to the date on which he or she submitted the

evidence supporting the existence of mitigating circumstances.

* * * * *

[FR Doc. 95-15195 Filed 6-20-95; 8:45 am]

BILLING CODE 8320-01-P