Veterans Education: Increase in Rates Payable Under the Montgomery GI BillActive Duty, 1995-96

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AH79

Veterans Education: Increase in Rates Payable Under the

Montgomery GI Bill--Active Duty, 1995-96

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 the

statutory formula, the regulations governing rates of basic educational

assistance payable under the Montgomery GI Bill--Active Duty for fiscal

year 1996 (October 1, 1995 through September 30, 1996) are changed to

show a 2.9% increase in these rates.

EFFECTIVE DATE: October 1, 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: Under the formula mandated by 38 U.S.C.

3015(g) for fiscal year 1996, 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 the percentage

that the total of the monthly Consumer Price Index-W for July 1, 1994,

through June 30, 1995, exceeds the total of the monthly Consumer Price

Index-W for July 1, 1993, through June 30, 1994. Under this formula,

the changes to the regulations governing monthly rates reflect a 2.9%

increase.

It should be noted that some veterans will receive an increase in

monthly payments that will be less than 2.9%. 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

supplemental educational assistance. It also 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 2.9%.

Although 38 U.S.C. 3015(g) requires only that the full-time rates

be increased, these revisions include increases for other training

also. Monthly rates payable to veterans in apprenticeship or other on-

job training or cooperative training are set by statute at a given

percentage of the full-time rate. Hence, any rise in the full-time rate

automatically requires an increase in the rates for these types of

training.

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

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 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 rate. Changes

are made consistent with the authority and formula described in this

paragraph.

The changes set forth in this final rule are applied retroactively

from the effective date of the statutory changes.

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. This final rule directly affects

only individuals and does not directly affect small entities. 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.

The Catalog of Federal Domestic Assistance number for the

program affected by this final rule is 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, Entitlement programs--education,

Entitlement 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: May 1, 1996.

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. 501(a), chs. 30, 36, unless otherwise

noted.

2. In Sec. 21.7136, paragraph (b)(3) is amended by removing

``$323.90'' and adding, in its place, ``$333.30'' and by removing

``1994, and before October 1, 1995'' and adding, in its place, ``1995,

and before October 1, 1996''; paragraph (c)(3) is amended by removing

``$263.18'' and adding, in its place, ``$270.81'' and by removing

``1994, and before October 1, 1995'' and adding, in its place, ``1995,

and before October 1, 1996''; and paragraphs (b)(1), (b)(2), (c)(1),

and (c)(2) are revised, to read as follows:

Sec. 21.7136 Rates of payment of basic educational assistance.

* * * * *

(b) Rates. (1) Except as provided in paragraphs (b)(2), (b)(3), and

(d) of this section, the monthly rate of basic educational assistance

payable for training that occurs after September 30,

[[Page 24238]]

1995, and before October 1, 1996, to a veteran whose service is

described in paragraph (a) of this section is the rate stated in the

following table.

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Monthly

Training rate

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Full time..................................................... $416.62

\3/4\ time.................................................... 312.46

\1/2\ time.................................................... 208.31

Less than \1/2\ but more than \1/4\ time...................... 208.31

\1/4\ time or less............................................ 104.15

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(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 an

apprenticeship or other on-job training that occurs after September 30,

1995, and before October 1, 1996, is the rate stated in the following

table.

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

Monthly

Training period rate

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First six months of pursuit of program........................ $312.46

Second six months of pursuit of program....................... 229.14

Remaining pursuit of program.................................. 145.82

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

* * * * *

(c) * * *

(1) Except as provided in paragraphs (c)(2), (c)(3), and (d) of

this section, the monthly rate of basic educational assistance payable

to a veteran for training that occurs after September 30, 1995, and

before October 1, 1996, is the rate stated in the following table.

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

Monthly

Training rate

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Full time..................................................... $338.51

\3/4\ time.................................................... 253.88

\1/2\ time.................................................... 169.25

Less than \1/2\ but more than \1/4\ time...................... 169.25

\1/4\ time or less............................................ 84.62

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

(2) The monthly rate of educational assistance payable to a veteran

for pursuit of an apprenticeship or other on-job training that occurs

after September 30, 1995, and before October 1, 1996, is the rate

stated in the following table.

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

Monthly

Training period rate

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

First six months of pursuit of program........................ $253.88

Second six months of pursuit of program....................... 186.18

Remaining pursuit of program.................................. 118.48

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

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

* * * * *

3. In Sec. 21.7137, paragraph (c)(2) introductory text is amended

by removing ``1994, and before October 1, 1995'' and adding, in its

place, ``1995, and before October 1, 1996''; paragraph (c)(2)(i) is

amended by removing ``$592.88'' and adding, in its place, ``$604.62'';

paragraph (c)(2)(ii) is amended by removing ``$445.16'' and adding, in

its place, ``$453.96''; paragraph (c)(2)(iii) is amended by removing

``$296.44'' and adding, in its place, ``$302.31''; paragraph (c)(2)(iv)

is amended by removing ``$148.22'' and adding, in its place,

``$151.15''; and paragraphs (a)(1) and (a)(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. ch. 34.

(a) Minimum rates. * * *

(1) Except as provided in paragraphs (a)(2), (b), and (c) of this

section, the monthly rate of basic educational assistance for training

that occurs after September 30, 1995, and before October 1, 1996, is

the rate stated in the following table.

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Monthly rate

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Additional

Training No One Two for each

dependents dependent dependents additional

dependent

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Full time................................................... $604.62 $640.62 $671.62 $16.00

3/4 time.................................................... 453.96 480.46 503.96 12.00

1/2 time.................................................... 302.31 320.31 335.81 8.50

Less than 1/2 but more than 1/4 time........................

(3) 302.31

1/4 time....................................................

(3) 151.15

Cooperative................................................. 454.90 475.30 494.90 9.20

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

(2) For veterans pursuing an apprenticeship or other on-job

training, the monthly rate of basic educational assistance for training

that occurs after September 30, 1995, and before October 1, 1996, is

the rate stated in the following table.

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Monthly rate

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Additional

Training period No One Two for each

dependents dependent dependents additional

dependent

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1st 6 months of pursuit of program.......................... $415.21 $427.59 $438.46 $5.25

2nd 6 months of pursuit of program.......................... 285.52 294.87 302.57 3.85

3rd 6 months of pursuit of program.......................... 169.62 175.74 180.47 2.45

Remaining pursuit of program................................ 157.72 163.49 168.74 2.45

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[[Page 24239]]

(Authority: 38 U.S.C. 3015(d), (f), (g))

* * * * *

[FR Doc. 96-11970 Filed 5-13-96; 8:45 am]

BILLING CODE 8320-01-P