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: Final rule.

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SUMMARY: This document amends 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 are

made to conform to statutory changes. The regulations are also amended

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 six

months or more to complete it based on the six-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 six months or more to

complete it. The regulations are also amended to expressly provide that

the SAA may periodically review the program or course approvals already

granted and that this determination would be based

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on the records of the school for a two-year period reasonably related

to the date on which such review is conducted. These periods are

appropriate to determine compliance with the statutory requirements.

Further, due to the deletion of the statutory basis for its adoption,

the requirement that the program or course must require not less than

six hours preparation per week over any 26-week period is deleted, and

related requirements for SAAs are changed. In addition, this document

clarifies 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 are made for purposes of

clarity.

DATES: Effective Date: January 2, 1998.

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

for Policy and Program Administration, Education Service, Veterans

Benefits Administration, 202-273-7187.

SUPPLEMENTARY INFORMATION: In a document published in the Federal

Register on July 1, 1997 (62 FR 35464), VA proposed to amend the

``Administration of Educational Assistance Programs'' regulations which

are set forth in 38 CFR 21.4001 et seq. It was proposed to amend the

regulations at Secs. 21.4256 and 21.4279 to reflect amended statutory

provisions contained in the Veterans' Benefits Improvement Act of 1994,

Public Law 103-446. These provisions:

Require that programs of education offered exclusively by

correspondence or the correspondence portion of a correspondence-

residence course may be approved for VA training only if they are

offered by an accredited educational institution;

Negate the 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 six months; and

Impose a requirement that at least 50 percent of those

pursuing the program or course shall require six months or more to

complete it.

In addition to these statutory requirements, VA proposed to:

Require an SAA when reviewing an application for a new

correspondence program or course approval to determine whether it meets

the course completion requirements based on the six-month period

immediately preceding the educational institution's application for

approval;

Permit SAAs to review periodically correspondence program

or course approvals already granted to determine whether the completion

requirement was met by examining a prior two-year period reasonably

related to the date on which such review is conducted.

Remove the regulatory requirement that a correspondence

program or course must require at least six hours of preparation per

week over any 26-week period;

Require that correspondence-residence courses would have

to meet the same course completion criteria as correspondence programs,

including the time periods during which the SAA will determine whether

the course completion criterion have been met; and

Clarify that the provisions concerning enrollments in

correspondence courses apply not only to eligible veterans, spouses,

and surviving spouses, but also to reservists.

Interested persons were given 63 days to submit comments. We

received no comments. Accordingly, based on the rationale set forth in

the proposed rule document, we are adopting the provisions of the

proposed rule as a final rule.

Paperwork Reduction Act of 1995

Information collection and recordkeeping requirements associated

with this final rule (38 CFR 21.4256(a)(1), 21.4256(b)(3), and 21.4279)

have been approved by OMB under the provisions of the Paperwork

Reduction Act (44 U.S.C. 3501-3520) and have been assigned OMB control

numbers 2900-0575 and 0576. These regulations require that an

educational institution offering a program of education by

correspondence or the correspondence portion of a correspondence-

residence 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 in order to have that program or course approved

for VA training. There is no VA form to collect this information;

therefore, there is no corresponding form number.

VA is not authorized to impose a penalty on persons for failure to

comply with information collection requirements which do not display a

current OMB control number, if required.

Regulatory Flexibility Act

The Secretary of Veterans Affairs 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. Although it is possible that small entities could be

among the educational institutions affected by this rulemaking, this

final rule would have only a minuscule effect on any educational

institution. Pursuant to 5 U.S.C. 605(b), this final rule, therefore,

is exempt from the initial and final regulatory flexibility analyses

requirements of Secs. 603 and 604.

The Catalog of Federal Domestic Assistance numbers for programs

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

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: October 30, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

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

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

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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.

(The information collection requirements in this section have been

approved by the Office of Management and Budget under control number

2900-0575)

(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 six 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 six-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 two-year 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.

(The information collection requirements in this section have been

approved by the Office of Management and Budget under control number

2900-0576)

(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 six months or more

to complete it.

(The information collection requirements in this section have been

approved by the Office of Management and Budget under control number

2900-0575.)

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

* * * * *

[FR Doc. 97-31628 Filed 12-2-97; 8:45 am]

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