Veterans Education: Reduction in Required Reports

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI58

Veterans Education: Reduction in Required Reports

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the educational assistance and

educational benefits regulations of the Department of Veterans Affairs

(VA). It proposes to change the nature of the information to be

reported by veterans and servicemembers receiving educational

assistance under the Montgomery GI Bill--Active Duty program and the

number of reports required of educational institutions in which these

veterans and servicemembers are enrolled. It appears that these changes

would streamline the operation of this program and reduce the

information collection burden for this program, while maintaining the

program's integrity. This document also requests Paperwork Reduction

Act comments concerning the collections of information contained in

this document.

DATES: Comments must be received on or before November 17, 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-AI58''. All

written comments received will be available for public inspection at

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

between the hours of 8:00 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: This document proposes to amend the ``ALL

VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM (MONTGOMERY GI BILL--

ACTIVE DUTY)'' regulations set forth at 38 CFR Part 21, Subpart K.

Except for correspondence course enrollments, a veteran or

servicemember receiving educational assistance under these provisions

is required to verify, after the fact, pursuit of a program of

education each month (referred to below as monthly verification).

Current regulations specify the information that must be reported in

the monthly verification. Except in advance payment and lump sum

payment cases, VA does not pay educational assistance until VA receives

this monthly verification.

Since pursuit of a program of education is a necessary prerequisite

to receipt of educational assistance under the educational programs VA

administers, current regulations also require (see Sec. 21.7156) a

veteran or servicemember to report, on a ``without delay'' basis

(referred to below as ``without delay'' reporting), each change in her

or his hours of credit being pursued and any changes in the status of

his or her pursuit of the program. This duty to provide ``without

delay'' reporting is in addition to the monthly verification described

above. Further, under Sec. 21.7156 educational institutions also are

required ``without delay'' or within specified time frames (all

reporting required of educational institutions ``without delay'' or

within specified time frames is referred to below as ``without delay''

reporting) to report changes in the number of hours of credit pursued

and changes in attendance.

The common purpose of these information collections is to allow VA

to determine whether a veteran or servicemember continues to be

entitled to educational assistance and, if so, to release the monthly

payment to the veteran or servicemember.

However, it does not appear necessary to obtain monthly

verification from a veteran who has received an advance payment for the

month in question. Advance payments are not submitted by VA directly to

the veteran. Instead, they are delivered to the educational institution

where the veteran is pursuing a program of education. If the veteran

does not begin training, the educational institution returns the

payment to VA instead of delivering it to the veteran. Accordingly, it

appears that no useful purpose is served by requiring a veteran to

provide a monthly verification concerning pursuit of a program of

education for a month for which he or she has received an advance

payment. Therefore, it is proposed to amend Sec. 21.7154 to eliminate

the requirement that the veteran provide monthly verification for those

monthly periods for which

[[Page 48970]]

advance payments have been made through the institution. If the veteran

does have a change in status or enrollment during that period after

receipt of the payment, he or she, and the educational institution,

still would remain obligated to provide VA notification by ``without

delay'' reporting (see Sec. 21.7156).

By statute (38 U.S.C. 3034(c)) VA is required to make lump-sum

payments to veterans and servicemembers for an entire term, quarter, or

semester when the veteran or servicemember is attending less than half-

time. Inasmuch as these individuals do not receive payments each month,

it appears that monthly verification is not needed to release such a

payment. Again, the veteran or servicemember and the educational

institution would still be obligated to provide VA ``without delay''

reporting of any relevant changes in status or enrollment that may

occur after the release of the lump-sum payment (see Sec. 21.7156).

Therefore, it appears that no useful purpose is served by requiring

these individuals to provide monthly verification. Accordingly, it is

proposed to amend Sec. 21.7154 to eliminate this requirement.

Furthermore, under the current Sec. 21.7154 a veteran is required

to certify in the monthly verification actual class attendance. Before

December 18, 1989, VA was required by statute to reduce an individual's

monthly educational assistance if that individual were pursuing a

course not leading to a standard college degree and had excessive

absences. VA is no longer required by statute to make those reductions.

Accordingly, it appears that actual attendance certification is no

longer necessary to be included in a monthly verification. It is

proposed to amend Sec. 21.7154 to eliminate this requirement.

With respect to veterans in courses not leading to a standard

college degree, the regulations require monthly certification of

attendance from a veteran. Some have questioned whether the regulations

require the veteran's certification also to contain a report from the

educational institution. In those cases in which no status change

occurred during the previous month, the educational institution's

verification was not intended to be included. It is unnecessary and

delays receipt of the document by VA. In cases where a change occurs,

the educational institution must submit that information within the

time frames for ``without delay'' reporting, but may do so separately.

Accordingly, it is proposed to change Sec. 21.7156 to more clearly set

forth the intended meaning.

Occasionally, a veteran or servicemember will enroll in more hours

than the minimum required to be a full-time student under the statute.

Often such a student, provided he or she is enrolled in a standard

term, quarter, or semester, will add or drop courses with no effect on

his or her status as a full-time student and payment to the student

will not be affected. It is proposed that under these circumstances,

neither the student nor the educational institution would be required

to report the changes. Such reporting would not appear to be necessary

since the changes would not affect payment to the student. However,

when the student is enrolled in a nonstandard term, VA is proposing to

continue to require such a student and the educational institution to

report all credit hour changes by ``without delay'' reporting. Under

the regulatory criteria for determining what constitutes a full-time

enrollment in a nonstandard term, complicated computation is necessary

in each individual case. Since the student may not be able readily to

make those calculations, he or she would be less likely to be able to

ascertain whether the change in credit hour status should be reported

to VA.

Additional changes are included in the proposed rule 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

21.7154, 21.7156(a), and 21.7156(b). 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 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 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-AI58.''

Title: Monthly verification of pursuit.

Summary of collection of information: The collection of information

in the proposed Secs. 21.7154 and 21.7156(a) would implement a

statutory provision that permits, but does not require, VA to require

reports showing an eligible veteran's satisfactory pursuit of a program

of education before releasing a payment of educational assistance. The

statute specifically allows a monthly certification received from the

veteran to satisfy this requirement. VA estimates that adoption of the

proposed changes to Sec. 21.7154 would annually eliminate at least 500

reports that individuals are currently required to submit and also

would shorten other reports, and thereby reduce the total annual

reporting burden on individuals by 5,739 hours.

Description of need for information and proposed use of

information: The information that would be required under Secs. 21.7154

and 21.7156(a) is needed to help VA determine whether educational

assistance should continue to be paid to a veteran and to verify the

correct monthly rate of educational assistance payable to a veteran.

The monthly rate is based on the student's training time, which in turn

is based on the number of credit hours in which the student is

enrolled.

Description of likely respondents: Veterans eligible to receive

educational assistance under the Montgomery GI Bill--Active Duty

program.

Estimated number of respondents: 318,129.

Estimated frequency of responses: Monthly while the veteran

continues to pursue a program of education, provided the veteran has

not been paid in a lump sum.

Estimated average burden per collection: 5 minutes.

Estimated total annual reporting and recordkeeping burden: 185,571

hours of reporting burden. VA estimates that there will be no

recordkeeping burden.

Title: Report of Change in Enrollment.

Summary of collection of information: The collection of information

in the proposed revisions to Sec. 21.7156(b) would implement a

statutory provision that requires an educational institution to report

without delay changes, including interruptions and terminations, in a

veteran's or servicemember's enrollment. VA estimates that adoption of

these proposed changes would annually eliminate 21,841 reports that

educational institutions are currently required to submit and reduce

the total annual reporting burden on educational institutions by 1,830

hours.

Description of need for information and proposed use of

information: The

[[Page 48971]]

information required in Sec. 21.7156(b) is needed to help VA determine

the monthly rate of educational assistance payable to a veteran or

servicemember. The monthly rate is based on the student's training

time, which in turn is based on the number of credit hours in which the

student is enrolled.

Description of likely respondents: Educational institutions.

Estimated number of respondents: 7,481.

Estimated frequency of responses: Occasionally, when a veteran or

servicemember changes her or his pursuit of a program of education,

unless the individual was a full-time student both before and after the

change.

Estimated average burden per collection: 5 minutes.

Estimated total annual reporting and recordkeeping burden: 52,230

hours of reporting burden. VA does not believe that there will be

additional recordkeeping burden.

The Department considers comments by the public on proposed

collections of information in--

Evaluating whether the proposed collections of information

are necessary for the proposed 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;

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 proposed

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 on the proposed regulations.

Executive Order 12866

This proposed rule has been reviewed by OMB under Executive Order

12866.

Regulatory Flexibility Act

The Secretary of Veterans Affairs hereby certifies that this

proposed rule, if promulgated, would 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. The adoption of the

proposed rule would have only minuscule effects on the activity of 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 number for the

program affected by this proposed 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, 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: September 5, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

For the reasons set out above, 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

(Montgomery GI Bill--Active Duty)

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

read as follows:

Authority: 38 U.S.C. 501(a), 38 U.S.C. chs. 30, 36, unless

otherwise noted.

2. In Sec. 21.7154, paragraphs (a) and (b) are redesignated as

paragraphs (b) and (c), respectively; newly redesignated paragraph

(b)(2)(i) is amended by removing ``payment,'' and adding, in its place,

``payment;''; newly redesignated paragraph (b)(2)(ii) is amended by

removing ``period, and'' and adding, in its place, ``period; and'';

paragraph (a) is added, and the introductory text for the section, the

paragraph heading for newly redesignated paragraph (b), and newly

redesignated paragraph (b)(1) are revised, to read as follows:

Sec. 21.7154 Pursuit and absences.

Except as provided in this section, an individual must submit a

verification to VA each month of his or her enrollment during the

period for which the individual is to be paid. This verification shall

be in a form prescribed by the Secretary.

(a) Exceptions to the monthly verification requirement. An

individual does not have to submit a monthly verification as described

in the introductory text of this section when the individual--

(1) Is enrolled in a correspondence course;

(2) Has received a lump-sum payment for the training completed

during a month; or

(3) Has received an advance payment for the training completed

during a month.

(Authority: 38 U.S.C. 3034, 3684)

(b) Items to be reported on all monthly verifications. (1) The

monthly verification for all veterans and servicemembers will include a

report on the following items when applicable:

(i) Continued enrollment in and actual pursuit of the course;

(ii) The individual's unsatisfactory conduct, progress, or

attendance;

(iii) The date of interruption or termination of training;

(iv) Changes in the number of credit hours or in the number of

clock hours of attendance other than those described in

Sec. 21.7156(a);

(v) Nonpunitive grades; and

(vi) Any other changes or modifications in the course as certified

at enrollment.

* * * * *

3. In Sec. 21.7156, the introductory text and paragraph (a)

introductory text are removed; paragraphs (a)(1), (a)(2), (a)(3), (b),

and (c) are redesignated as paragraphs (b)(3), (b)(4), (b)(5), (c), and

(d), respectively; newly redesignated paragraph (c)(2) is amended by

removing ``(b)(1)'' and adding, in its place, ``(c)(1)''; and the

section heading is revised, paragraphs (a), (b)(1), and (b)(2) are

added, and newly redesignated paragraph (b)(3) is revised, to read as

follows:

Sec. 21.7156 Other required reports.

(a) Reports from veterans and servicemembers. (1) A veteran or

servicemember enrolled full time in a program of education for a

standard term, quarter, or semester must report without delay to VA:

(i) A change in his or her credit hours or clock hours of

attendance if that change would result in less than full-time

enrollment;

[[Page 48972]]

(ii) Any change in his or her pursuit that would result in less

than full-time enrollment; and

(iii) Any interruption or termination of his or her attendance.

(2) A veteran or servicemember not described in paragraph (a)(1) of

this section must report without delay to VA:

(i) Any change in his or her credit hours or clock hours of

attendance;

(ii) Any change in his or her pursuit; and

(iii) Any interruption or termination of his or her attendance.

(Authority: 38 U.S.C. 3680(g))

(b) Interruptions, terminations, or changes in hours of credit or

attendance. (1) Except as provided in paragraph (b)(2) of this section,

an educational institution must report without delay to VA each time a

veteran or servicemember:

(i) Interrupts or terminates his or her training for any reason; or

(ii) Changes his or her credit hours or clock hours of attendance.

(2) An educational institution does not need to report a change in

a veteran's or servicemember's hours of credit or attendance when:

(i) The veteran or servicemember is enrolled full time in a program

of education for a standard term, quarter, or semester before the

change;

(ii) The veteran or servicemember continues to be enrolled full

time after the change; and

(iii) The tuition and fees charged to the servicemember have not

been adjusted as a result of the change.

(Authority: 38 U.S.C. 3034, 3684)

(3) If the change in status or change in number of credit hours or

clock hours of attendance occurs on a day other than one indicated by

paragraph (b)(4) or (b)(5) of this section, the educational institution

will initiate a report of the change in time for VA to receive it

within 30 days of the date on which the change occurs.

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[FR Doc. 97-24776 Filed 9-17-97; 8:45 am]

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