Veterans Education: Increase in Rates Payable Under the Montgomery GI BillActive Duty

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI90

Veterans Education: Increase in Rates Payable Under the

Montgomery GI Bill--Active Duty

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 1998 (October 1, 1997, through September 30, 1998) are changed to

show a 2.8% increase in these rates.

DATES: This final rule is effective October 30, 1997. However, the

changes in rates are applied retroactively to conform to statutory

requirements. For more information concerning the dates of application,

see the SUPPLEMENTARY INFORMATION section.

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 1998, 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, 1996,

through June 30, 1997, exceeds the total of the monthly Consumer Price

Index-W for July 1, 1995, through June 30, 1996. This is 2.8%.

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

monthly payments that will be less than 2.8%. 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

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 2.8%.

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 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 such 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.

Nonsubstantive changes also are made for the purpose of clarity.

The changes set forth in this final rule are effective from the

date of publication, but the changes in rates are applied retroactively

from October 1,

[[Page 58655]]

1997, in accordance with the applicable statutory provisions discussed

above.

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 Acting 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 and does not directly affect small

entities. This final rule directly affects only individuals. Pursuant

to 5 U.S.C. 605(b), this final 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 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, Grant programs--education, Grant

programs--veterans, Health programs, Loan programs--education, Loan

programs--veterans, Manpower training programs, Reporting and

recordkeeping requirements, Schools, Travel and transportation

expenses, Veterans, Vocational education, Vocational rehabilitation.

Approved: October 17, 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, continues to read

as follows:

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

noted.

2. In Sec. 21.7136, paragraphs (b), (c)(1), (c)(2), and (c)(3) are

revised, to read as follows:

Sec. 21.7136 Rates of payment of basic educational assistance.

* * * * *

(b) Rates. (1) Except as elsewhere provided in this section or in

Sec. 21.7139, the monthly rate of basic educational assistance payable

for training that occurs after September 30, 1997, and before October

1, 1998, to a veteran whose service is described in paragraph (a) of

this section is the rate stated in the following table:

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

Monthly

Training rate

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Full time..................................................... $439.85

\3/4\ time.................................................... 329.89

\1/2\ time.................................................... 219.93

Less than \1/2\ but more than \1/4\ time...................... 219.93

\1/4\ time or less............................................ 109.96

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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

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

1997, and before October 1, 1998, is the rate stated in the following

table:

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

Monthly

Training period rate

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

First six months of pursuit of training....................... $329.89

Second six months of pursuit of training...................... 241.92

Remaining pursuit of training................................. 153.95

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

(3) If a veteran's service is described in paragraph (a) of this

section, the monthly rate of basic educational assistance payable to

the veteran for pursuit of a cooperative course is:

(i) $427.87 for training that occurs after October 8, 1996, and

before October 1, 1997; and

(ii) $439.85 for training that occurs on or after October 1, 1997.

(Authority: 38 U.S.C. 3015)

(c) * * *

(1) Except as elsewhere provided in this section or in

Sec. 21.7139, the monthly rate of basic educational assistance payable

to a veteran for training that occurs after September 30, 1997, and

before October 1, 1998, is the rate stated in the following table:

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

Monthly

Training rate

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

Full time..................................................... $357.38

\3/4\ time.................................................... 268.04

\1/2\ time.................................................... 178.69

Less than \1/2\ but more than \1/4\ time...................... 178.69

\1/4\ time or less............................................ 89.35

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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 apprenticeship or other on-job training that occurs

after September 30, 1997, and before October 1, 1998, is the rate

stated in the following table:

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

Monthly

Training period rate

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

First six months of pursuit of training....................... $268.04

Second six months of pursuit of training...................... 196.56

Remaining pursuit of training................................. 125.08

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

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

(3) The monthly rate of basic educational assistance payable to a

veteran for pursuit of a cooperative course is:

(i) $347.65 for training that occurs after October 8, 1996, and

before October 1, 1997; and

(ii) $357.38 for training that occurs on or after October 1, 1997.

(Authority: 38 U.S.C. 3015)

* * * * *

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

by removing ``1996, and before October 1, 1997'' and adding, in its

place, ``1997, and before October 1, 1998''; paragraph (c)(2)(i) is

amended by removing ``$615.87'' and adding, in its place, ``$627.85'';

paragraph (c)(2)(ii) is amended by removing ``$462.40'' and adding, in

its place, ``$471.39''; paragraph (c)(2)(iii) is amended by removing

``$309.94'' and adding, in its place, ``$313.93''; paragraph (c)(2)(iv)

is amended by removing ``$153.97'' and adding, in its place,

``$156.96''; and paragraph (a) is 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 elsewhere provided in this

section, the monthly rate of basic educational assistance for training

that occurs after September 30, 1997, and before October 1, 1998, is

the rate stated in the following table:

[[Page 58656]]

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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................................................... $627.85 $663.85 $694.85 $16.00

\3/4\ time.................................................. 471.39 497.89 521.39 12.00

\1/2\ time.................................................. 313.93 331.93 347.43 8.50

Less than \1/2\ but more than \1/4\ time.................... 313.93 313.93 313.93 0.00

\1/4\ time or less.......................................... 156.96 156.96 156.96 0.00

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

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

the monthly rate of basic educational assistance for training that

occurs after September 30, 1997, and before October 1, 1998, is the

rate stated in the following table:

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Monthly rate

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

Additional

Training No One Two for each

dependents dependent dependents additional

dependent

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1st six months of pursuit of program........................ $432.64 $445.01 $455.89 $5.25

2nd six months of pursuit of program........................ 298.29 307.64 315.34 3.85

3rd six months of pursuit of program........................ 177.75 183.87 188.60 2.45

Remaining pursuit of program................................ 165.85 171.62 176.87 2.45

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

(3) The monthly rate payable to a veteran who is pursuing a

cooperative course is the rate stated in the following table:

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Monthly rate

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

Additional

Training period No One Two for each

dependents dependent dependents additional

dependent

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Oct. 9, 1996-Sept. 30, 1997................................. $579.87 $605.37 $629.87 $11.50

On or after Oct. 1, 1997.................................... 591.85 617.35 641.85 11.50

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(Authority: 38 U.S.C. 3015)

* * * * *

[FR Doc. 97-28723 Filed 10-29-97; 8:45 am]

BILLING CODE 8320-01-P