Veterans Education: Approval of Correspondence Programs or Courses

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AH91

Veterans Education: Approval of Correspondence Programs or

Courses

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the VA-administered

educational assistance and educational benefits regulations concerning

approval of programs of education pursued exclusively by correspondence

and the correspondence portion of correspondence-residence courses for

Department of Veterans Affairs (VA) training. A number of changes would

be made to conform to statutory changes. Also, it is proposed to

require that the educational institution offering a correspondence

program or course certify to the State approving agency (SAA) that at

least 50 percent of those pursuing the program or course require 6

months or more to complete it based on the 6-month period immediately

preceding the educational institution's application for approval. The

certification is to enable the SAA to determine whether the program or

course meets the statutory requirement that at least 50 percent of

those pursuing the program or course require 6 months or more to

complete it. The regulations would also be amended to expressly

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provide that the SAA may periodically review the program or course

approvals already granted and that this determination would be based on

the records of the school for a 2-year period reasonably related to the

date on which such review is conducted. These periods appear to be

appropriate to determine compliance with the statutory requirements.

Further, it is proposed to remove, due to the deletion of the statutory

basis for its adoption, the requirement that the program or course must

require not less than 6 hours preparation per week over any 26-week

period and would change related requirements for SAAs. In addition,

this document would clarify that the provisions concerning enrollments

in the program or course apply not only to eligible veterans, spouses,

and surviving spouses, but also to reservists. Other changes would be

made for purposes of clarity. This document also requests comments on

proposed collections of information under the Paperwork Reduction Act.

DATES: Comments must be received on or before September 2, 1997.

ADDRESSES: Mail or hand deliver written comments to: Director, Office

of Regulations Management (02D), Department of Veterans Affairs, 810

Vermont Ave., NW, Room 1154, Washington, DC 20420. Comments should

indicate that they are submitted in response to ``RIN 2900-AH91.'' All

written comments will be available for public inspection at the above

address in the Office of Regulations Management, Room 1158, between the

hours of 8 a.m. and 4:30 p.m., Monday through Friday (except holidays).

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

for Policy and Program Administration, Education Service, Veterans

Benefits Administration, 202-273-7187.

SUPPLEMENTARY INFORMATION: Regulations concerning VA-administered

educational assistance and educational benefits are set forth at 38 CFR

part 21. The current regulations regarding programs of education

pursued exclusively by correspondence and combined correspondence-

residence courses that may be approved for VA training are set forth at

Sec. 21.4256. The current regulations:

Provide for approval of courses, whether accredited or

nonaccredited;

Provide that the school offering the course must certify

the normal time period required for completion of the course;

Provide that no more than 20 percent of the students

pursuing the course should be able to complete the course in less than

6 months in order for the course to be certified as requiring 6 months

or more to complete, and provide that this determination shall be based

on the records of the school for the 2 immediately preceding years; and

Provide that the course must require at least 6 hours of

preparation per week over any 26-week period.

With respect to payment of VA educational assistance, the Veterans'

Benefits Improvement Act of 1994, Public Law 103-446, amended statutory

provisions to provide that, as to programs of education offered

exclusively by correspondence or the correspondence portion of a

correspondence-residence course, only programs or courses offered by an

educational institution that is accredited may be approved; and negated

a prior regulatory requirement providing that the normal period

required to complete a program of education by correspondence or the

correspondence portion of a combination correspondence-residence course

may not be less than 6 months and imposed the requirement that at least

50 percent of those pursuing the program or course shall require 6

months or more to complete it. The regulations at Secs. 21.4256 and

21.4279 would be amended to reflect these statutory changes.

Current regulations regarding review of an application for a new

program or course approval provide that an SAA reviewing the

application must determine whether it meets the completion requirements

based on the 2-year period immediately preceding the educational

institution's application for approval. It is proposed to change the 2-

year period to a 6-month period. This is proposed since it appears that

a 6-month period is all that is needed to make a determination under

the statutory requirement that at least 50 percent of those pursuing

the program or course require 6 months or more to complete it. VA is

aware that, in effect, this would require that a correspondence program

or course be offered for at least 6 months before it could be approved,

but it appears that this is the most reasonable choice available to the

Department.

The Department considered, for the programs and courses that are

subject to the statutory completion requirement of 6 months or more,

allowing the SAA to approve, prior to the end of 6 months, programs or

courses that had never been offered before and to evaluate the

completion rate after sufficient time had elapsed. If the completion

rate were unsatisfactory, approval would be withdrawn. VA decided

against this alternative because such an approach could allow payments

to be made to individuals enrolled in courses that subsequently fail to

meet the statutory requirement and thereby cause overpayments.

For correspondence course approvals already granted, the current

rule provides that the determination of whether the completion

requirement has been met shall be based on the records of the school

for the 2 immediately preceding years. To make explicit in Sec. 21.4256

the review process that VA believes accords with the statutory scheme

concerning the responsibilities of SAAs, it is proposed to permit SAAs

to review periodically correspondence program or course approvals

already granted and to determine whether the completion requirement was

met by examining a prior 2-year period reasonably related to the date

on which such review is conducted. It appears that a 2-year period

allows for a review of data over a sufficiently long period to verify

that a decision to continue an approval would be the correct one. This

change would allow for some flexibility. It appears that by application

of this rule, ease of administration would be promoted and the cost of

data provision for the reviews may be reduced, while retaining an

appropriate means of determining compliance with the statutory approval

requirement. Thus, this proposal would retain a 2-year period for

review of approvals already granted but would reduce to 6 months the

review period for new approvals.

VA proposes to remove the current regulatory requirement that a

correspondence program or course must require at least 6 hours of

preparation per week over any 26-week period because the statutory

basis for its adoption was deleted and the amended statute does not

include such a restriction.

Currently, section 21.4279 contains specific rules for approval of

courses that are offered in part by correspondence and in part by

residence. Public Law 103-446 amended the governing statute so that

these correspondence-residence courses have to meet the same approval

criteria as courses offered exclusively by correspondence. The

provisions of section 21.4279 would be amended to conform to the

statute. It is also proposed that these courses would have to meet the

same course completion criteria as correspondence programs, including

the time periods during which the SAA will determine whether course

completion criteria have been met. It appears that it would be prudent

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to adopt the same rules for these courses as for correspondence courses

because the rationale for correspondence courses applies equally to

correspondence-residence courses. Furthermore, it appears that approval

errors would be reduced if correspondence programs and correspondence-

residence courses had to meet the same course completion criteria,

including the time period during which the course completion time

criteria has to be met.

In addition, this document would clarify that the provisions

concerning enrollments in correspondence courses apply not only to

eligible veterans, spouses, and surviving spouses, but also to

reservists. Other changes also would be made for purposes of clarity.

Paperwork Reduction Act of 1995

Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520),

collections of information are set forth in the proposed 38 CFR

21.4256(a)(1), 21.4256(b)(3), and 21.4279. Accordingly, under section

3507(d) of the Act, VA has submitted a copy of this rulemaking action

to the Office of Management and Budget (OMB) for its review of the

proposed collections of information.

OMB assigns control numbers to collections 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.

Comments on the proposed collections of information should be

submitted to the Office of Management and Budget, Attention: Desk

Officer for the Department of Veterans Affairs, Office of Information

and Regulatory Affairs, Washington, DC 20503, with copies to the

Director, Office of Regulations Management (02D), Department of

Veterans Affairs, 810 Vermont Ave., NW, Washington, DC 20420. Comments

should indicate that they are submitted in response to ``RIN 2900-

AH91.''

Title: Certification as to the Completion Time of a Correspondence

Program or Course.

Summary of collection of information: The proposed 38 CFR

21.4256(a)(1) would provide that before an SAA could approve a program

of education offered by correspondence or the correspondence portion of

a correspondence-residence course, the educational institution offering

the program or course would have to certify to the SAA that at least 50

percent of those pursuing the program or course require six months or

more to complete it. The proposed rule would add a provision that the

determination of compliance with the statutory requirement that at

least 50 percent of those pursuing the program or course require 6

months or more to complete it must be based on the experience of

students who completed the program or course during the 6-month period

immediately preceding the educational institution's application for

approval of the program or course. The proposed rule also would permit

the SAA to review periodically the record of an already approved

program or course regarding completion time by examining a prior two-

year period reasonably related to the date on which such review is

conducted.

The provisions of the proposed 38 CFR 21.4279(a) also would require

that a program of education could be pursued in a correspondence-

residence course only if the course met the requirements of

Sec. 21.4256(a) with respect to the length of time it takes students to

complete the course. This is a restatement of statute, except that

through the reference to Sec. 21.4256(a) the experience of the students

in the course during the six-month period immediately preceding the

educational institution's application for approval of the course would

be required to be considered by the SAA when determining whether the

course can be approved.

Description of need for information and proposed use of

information: VA contracts with various agencies of the State

governments to approve courses for VA training. A statute requires that

a program of education pursued exclusively by correspondence or the

correspondence portion of a combined correspondence-residence course

may not be approved unless at least 50 percent of those persons

pursuing such a program or course take six months or more to complete

it. The SAA needs this information to consider approval of such

programs or courses. Although VA occasionally acts as an SAA, VA is not

the primary user of this information.

The States would collect this information when an educational

institution applies for approval of a new correspondence program or

course. The proposed rule would also give States the authority to

periodically review the length of time needed to complete a previously

approved correspondence program or course. VA believes that this

collection of information would be annual or less frequently.

Description of likely respondents: Educational institutions that

offer correspondence programs or courses or combined correspondence-

residence courses and that wish to have those programs or courses

approved for VA training.

Estimated number of respondents: 11.

Estimated frequency of responses: Annually. Some educational

institutions would have to supply the information several times a year

as they develop new programs or courses or as the SAA verifies

compliance with the rule for programs or courses already approved.

Others would supply the information less frequently than annually if

they develop new programs or courses less frequently. VA estimates that

the average frequency would be annually.

Estimated average burden per collection: 3.27 hours.

Estimated total annual reporting and recordkeeping burden: 36

hours. VA estimates that there would be no additional recordkeeping

burden imposed. Officials of schools have records of when the first

lesson in a correspondence course is sent to a student and when the

last lesson was received. Hence, the officials have records showing how

long it took a student to complete the course or program. Usually these

records are stored electronically. Therefore, VA estimates that there

would be no additional recordkeeping burden imposed by the adoption of

this proposed rule. As indicated above, VA anticipates that this

information would have to be supplied to an SAA by an educational

institution an average of annually. VA estimates that to do a search by

computer to determine whether 50 percent of the students over either a

6-month or a 2-year period took 6 months or more to complete a program

or course and then to file such a report with the SAA would take 3.27

hours. This estimate is based on informal discussions with officials of

educational institutions that offer courses or programs by

correspondence. The estimated annual reporting burden is 36 hours.

Title: Affirmation of Enrollment Agreement.

Summary of collection of information: The provisions of the

proposed 38 CFR 21.4256(b)(3) would restate a statutory provision found

in 38 U.S.C. 3686(b). The statute requires that an individual pursuing

a correspondence course must submit to VA a written affirmation of the

enrollment agreement between the individual and the educational

institution offering the course. If VA does not receive this written

affirmation, the enrollment agreement is not effective, and VA may not

award educational assistance to the individual.

Description of need for information and proposed use of

information: This statutory provision provides a consumer

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protection because, in effect, it provides a 10-day period when the

individual can consider whether he or she actually wishes to enroll in

the correspondence course. If the individual does not wish to enroll,

he or she merely does not send in an affirmation to VA. Consequently,

the use this information has for VA is to provide evidence that the

individual has carefully considered the step he or she is taking in

enrolling and to enable VA to comply with a statutory prerequisite for

the awarding of educational assistance for pursuit of a correspondence

course.

Description of likely respondents: Individuals who enroll in

correspondence courses and who wish to receive educational assistance

from VA.

Estimated number of respondents: 3500 per year.

Estimated frequency of responses: Once, upon enrollment in a

correspondence course.

Estimated average burden per collection: 5 minutes.

Estimated total annual reporting and recordkeeping burden: 292

hours. VA estimates that there would be no additional recordkeeping

burden imposed. Individuals are not required to keep a record of the

fact that they have sent in a written affirmation to VA, although, of

course, they may choose to do so. As indicated above, VA anticipates

that this information would have to be supplied once upon enrollment in

a correspondence course. In recent years, an average of 3500 students

per year have enrolled in such courses in all the educational programs

VA administers. VA estimates that it would take each individual an

average of 5 minutes to sign an affirmation and mail it to VA. 3500 x

.083 = 291.67 hours, which rounded gives the estimate of 292 hours.

The Department considers comments by the public on proposed

collections of information in--

Evaluating whether the proposed collections of information

are necessary for the proper performance of the functions of the

Department, including whether the information will have practical

utility;

Evaluating the accuracy of the Department's estimate of

the burden of the proposed collections of information, including the

validity of the methodology and assumptions used;

Enhancing the quality, usefulness, and clarity of the

information to be collected; and

Minimizing the burden of the collections of information on

those who are to respond, including through the use of appropriate

automated, electronic, mechanical, or other technological collection

techniques or other forms of information technology, e.g., permitting

electronic submission of responses.

OMB is required to make a decision concerning the collections of

information contained in this proposed rule between 30 and 60 days

after publication of this document in the Federal Register. Therefore,

a comment to OMB is best assured of having its full effect if OMB

receives it within 30 days of publication. This does not affect the

deadline for the public to comment to the Department on the proposed

regulations.

The Secretary of Veterans Affairs certifies that the adoption of

this proposed 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. Although it is possible

that small entities could be among the educational institutions

affected by this rulemaking, the adoption of this proposed rule would

have only a minuscule effect on any educational institution. Pursuant

to 5 U.S.C. 605(b), this proposed rule, therefore, is exempt from the

initial and final regulatory flexibility analyses requirements of

sections 603 and 604.

(The Catalog of Federal Domestic Assistance numbers for programs

affected by this proposed rule are 64.117, 64.120, and 64.124. This

proposed rule will also affect the Montgomery GI Bill--Selected

Reserve program, 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: June 23, 1997.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set out above, 38 CFR part 21 (subpart D) is

proposed to be amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Assistance Programs

1. The authority citation for part 21, subpart D, is revised to

read as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), chs. 30, 32,

34, 35, 36, unless otherwise noted.

2. Section 21.4256 is revised to read as follows:

Sec. 21.4256 Correspondence programs and courses.

(a) Approval of correspondence programs and courses. (1) An

educational institution desiring to enroll veterans under 38 U.S.C.

chapter 30 or 32, spouses and/or surviving spouses under 38 U.S.C.

chapter 35, and/or reservists under 10 U.S.C. chapter 1606 in a program

of education to be pursued exclusively by correspondence, or in the

correspondence portion of a combination correspondence-residence

course, may have the program or course approved only when the

educational institution meets the requirements of Secs. 21.4252(e),

21.4253, and 21.4279, as applicable.

(Authority: 38 U.S.C. 3672(e))

(2) The application of an educational institution for approval of a

program of education to be pursued exclusively by correspondence or the

correspondence portion of a combined correspondence-residence course

must demonstrate that the program or course is satisfactory in all

elements. The educational institution must certify to the State

approving agency that at least 50 percent of those pursuing the program

or course require 6 months or more to complete it. For applications for

approval that are pending approval by the State approving agency on

February 2, 1995, and for applications received by the State approving

agency after that date, the required certification shall be based on

the experience of students who completed the program or course during

the 6-month period immediately preceding the educational institution's

application for approval.

(Authority: 38 U.S.C. 3672(e))

(3) State approving agencies have the authority to review

periodically the length of time needed to complete each approved

correspondence program or approved correspondence-residence course in

order to determine whether the program or course should continue to be

approved. In implementing this authority, a State approving agency will

examine the results over a prior 2-year

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period reasonably related to the date on which such a review is

conducted.

(Authority: 38 U.S.C. 3672(e))

(b) Enrollment agreement. (1) An educational institution offering a

program of education to be pursued exclusively by correspondence must

enter into an enrollment agreement with the veteran, spouse, surviving

spouse, or reservist who wishes to receive educational assistance from

VA while pursuing the program. The enrollment agreement shall disclose

fully the obligations of the institution and the veteran, spouse,

surviving spouse, or reservist, and shall display in a prominent place

on the agreement the conditions for affirmance, termination, refund,

and payment of the educational assistance by VA.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(a)(1), 3686(b))

(2) A copy of the agreement shall be given to the veteran, spouse,

surviving spouse, or reservist when it is signed.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(b))

(3) The agreement shall not be effective unless the veteran,

spouse, surviving spouse, or reservist after the expiration of 10 days

after the agreement is signed, shall have signed and submitted to VA a

written statement, with a signed copy to the institution, specifically

affirming the agreement.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(b))

(c) Mandatory refund policy. (1) Upon notification of the

educational institution by the veteran, spouse, surviving spouse, or

reservist of an intention not to affirm the enrollment agreement, any

fees paid by the individual shall be returned promptly in full to him

or her.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(c))

(2) Upon termination of enrollment under an affirmed enrollment

agreement for training in the accredited course by the veteran, spouse,

surviving spouse, or reservist, without having completed any lessons, a

registration fee not in excess of 10 percent of the tuition for the

course or $50, whichever is less, may be charged him or her. When the

individual terminates the agreement after completion of less than 25

percent of the lessons of the course, the institution may retain the

registration fee plus 25 percent of the tuition. When the individual

terminates the agreement after completing 25 percent but less than 50

percent of the lessons, the institution may retain the registration fee

plus 50 percent of the tuition for the course. If 50 percent or more of

the lessons are completed, no refund of tuition is required.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(c))

(3) Where the school either has or adopts an established policy for

the refund of the unused portion of tuition, fees, and other charges

subject to proration, which is more favorable to the veteran, spouse,

surviving spouse, or reservist than the pro rata basis as provided in

paragraph (b)(2) of this section, such established policy will be

applicable.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(c))

(4) Any institution that fails to forward any refund due to the

veteran, spouse, surviving spouse, or reservist within 40 days after

receipt of a notice of termination or disaffirmance, shall be deemed,

prima facie, to have failed to make a prompt refund as required by this

section.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3686(c))

3. In Sec. 21.4279, paragraph (a) introductory text and paragraph

(a)(4) are revised, and paragraph (a)(5) is added, to read as follows:

Sec. 21.4279 Combination correspondence-residence program.

(a) Requirements for pursuit. A program of education may be pursued

partly in residence and partly by correspondence for the attainment of

a predetermined and identified objective under the following

conditions:

* * * * *

(4) The educational institution offering the course is accredited

by an agency recognized by the Secretary of Education; and

(5) The State approving agency has approved the correspondence-

residence course and has verified compliance with the requirement of 38

U.S.C. 3672(e) and Sec. 21.4256(a) that at least 50 percent of those

pursuing the correspondence-residence course require 6 months or more

to complete it.

(Authority: 38 U.S.C. 3672(e))

* * * * *

[FR Doc. 97-17216 Filed 6-30-97; 8:45 am]

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