Eligibility Criteria for the Montgomery GI BillActive Duty and Other Miscellaneous Issues

DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI63

Eligibility Criteria for the Montgomery GI Bill--Active Duty and

Other Miscellaneous Issues

AGENCIES: Department of Defense, Department of Transportation (Coast

Guard), and Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the educational assistance and

educational benefit regulations of the Department of Veterans Affairs

(VA). The proposed amendments reflect statutory changes which set forth

new eligibility criteria that will allow additional individuals to

establish eligibility for educational assistance under the Montgomery

GI Bill--Active Duty (MGIB); and also reflect statutory provisions

concerning the approval of courses leading to alternative teacher

certification. This document also would make changes for the purpose of

clarification.

DATES: Comments must be received on or before January 11, 1999.

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-AI63.'' 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: William G. Susling, Jr., Education

Advisor, Education Service, Veterans Benefits Administration, 202-273-

7187.

SUPPLEMENTARY INFORMATION: This document proposes to amend subparts D,

G, K, and L of 38 CFR part 21, which concern educational assistance

under various educational programs administered by VA. The proposed

amendments would implement provisions of the National Defense

Authorization Act for Fiscal Year 1997 (Pub. L. 104-201) and various

provisions of the Veterans' Benefits Improvements Act of 1996 (Pub. L.

104-275).

Formerly, officers could not participate in the Montgomery GI

Bill--Active Duty (MGIB) if they were commissioned after December 31,

1976, under a program of educational assistance under 10 U.S.C. 2107

(Senior Reserve Officer Training Corps (SROTC) Scholarship Program). A

provision of Pub. L. 104-201 states that this restriction no longer

applies to an individual who enters active duty after September 30,

1996, and received no more than $2,000 for each year of participation

in the SROTC program of educational assistance. The regulations

governing eligibility for the MGIB would be revised to reflect the new

statutory provision.

Individuals who entered active duty during the period from January

1, 1977, through June 30, 1985, were given the opportunity to

participate in the Post-Vietnam Era Veterans' Educational Assistance

Program (VEAP). Provisions of Pub. L. 104-275 permitted certain VEAP

participants on active duty to elect to participate in the MGIB

instead. The military pay of an individual who made the election will

be reduced by $1,200, or, if not so reduced, VA will collect the amount

from the individual. The regulations governing eligibility for the MGIB

would be revised to reflect the new statutory provisions, including our

view that the applicable statutory provisions require that an

individual who made an election to participate in

[[Page 63254]]

the MGIB would not become entitled until he or she has provided the

Government the $1,200.

Certain full-time, Active Guard Reserve (AGR) service and full-time

National Guard service by a member of the Army National Guard or the

Air National Guard in the member's status as a member of the National

Guard of a State for the purpose of organizing, administering,

recruiting, instructing, or training the National Guard qualifies as

active duty for purposes of establishing eligibility to participate in

the MGIB. Before the enactment of Pub. L. 104-275, the MGIB statute

required that, in order to participate, the individual must have first

performed qualifying active duty after November 29, 1989. A provision

of Pub. L. 104-275 permitted certain members of the Army National Guard

and the Air National Guard to elect to become entitled to the MGIB

based on AGR or ADS service first performed after June 30, 1985. The

regulations governing eligibility for the MGIB would be revised to

reflect the new statutory provision.

Since neither of the groups of individuals may receive benefits

until the required $1,200 is collected, the regulations governing the

effective dates of awards of educational assistance would be amended to

establish effective dates for benefits based on elections to receive

benefits and receipt of the $1,200 and of any other evidence necessary

to establish a valid election.

An individual is prohibited by statute (38 U.S.C. 3033(c)) from

using the same period of service to establish eligibility for both the

MGIB and the Montgomery GI Bill--Selected Reserve (MGIB-SR). Some of

those individuals now eligible to elect to become entitled to the MGIB

by having certain AGR and ADS service qualify as active duty, may have

previously used that service to establish eligibility for the MGIB-SR.

If such an individual received educational assistance under the MGIB-SR

and now makes such an election, he or she would have no service to

support the educational assistance previously received under the MGIB-

SR. Consequently, it is necessary for VA to terminate that assistance

retroactively to the first date of training for which the individual

received educational assistance. VA is proposing to revise 38 CFR

21.7635 accordingly. The procedures for repayment of amounts paid under

the MGIB-SR are set forth at 38 CFR 1.900 through 1.994.

Beginning in November 1994, a pilot program was authorized by

statute that required certain entities offering alternative teacher

certification courses to be considered to be educational institutions.

Since courses must be offered by educational institutions in order to

be approved by State approving agencies for VA training, this provision

allowed State approving agencies to approve these courses. This program

was scheduled to expire on September 30, 1996. Pub. L. 104-275 made the

pilot program permanent. Various regulations that indicated that the

pilot program was scheduled to end on September 30, 1996, would be

revised accordingly.

This document would make other changes for the purpose of clarity.

The restatements of statute and statutory interpretations contained

in this proposed rule would be applied from the effective dates of the

statutory provisions. The dates of application for the provisions

covered by this document would be as follows:

October 1, 1996: 38 CFR 21.7020(b)(1), new Sec. 21.7042(f)(3) and newly

redesignated Sec. 21.7042(f)(4)

October 9, 1996: Secs. 21.4135(b); 21.5021(d)(3); 21.5058(b);

21.5130(d); 21.7020(b)(29); all changes to Sec. 21.7042 except new

Sec. 21.7042(f)(3) and newly redesignated Sec. 21.7042(f)(4);

Secs. 21.7045; 21.7050; 21.7131; 21.7520(b); and 21.7635

The Department of Defense (DOD) is issuing this proposed rule

jointly with VA insofar as it relates to VEAP. This program is funded

by DOD and administered by VA. DOD, the Department of Transportation

(Coast Guard), and VA are jointly issuing this proposed rule insofar as

it relates to the Montgomery GI Bill--Selected Reserve. This program is

funded by DOD and the Coast Guard, and is administered by VA. The

remainder of this proposed rule is issued solely by VA.

Paperwork Reduction Act

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

collection of information is set forth in the proposed 38 CFR

21.7131(l) and (m). 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 collection

of information.

OMB assigns a control number to each collection 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 collection 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 mailed or

hand-delivered to the 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-AI63.''

Title: Evidence Submitted to Validate an Election to Receive

Educational Assistance under the Montgomery GI Bill--Active Duty.

Summary of collection of information: The proposed Sec. 21.7131(l)

and (m) would provide that a veteran may be required to submit evidence

to validate an election to receive educational assistance under the

MGIB and that the date of VA's receipt of the evidence may have an

effect on the effective date of an award of educational assistance. The

type of evidence submitted would be copies of records that most

individuals would keep, such as a discharge certificate or a document

that shows that $1,200 was withheld from military pay. There would be

no recordkeeping requirement.

Description of need for information and proposed use of

information: VA and DOD conduct a computer match that allows VA access

to data contained in the Defense Manpower Data Center (DMDC) about

applicants for the MGIB. Those data are necessary to establish their

eligibility for educational assistance. Normally, the information

contained in DMDC records would be sufficient for VA to decide if an

individual who claims to have become eligible for educational

assistance under the proposed Sec. 21.7042(a)(7), 21.7042(b)(10), or

21.7045(d) is, in fact, eligible. However, VA realizes that there may

be an occasional error in entering the pertinent data into the computer

records, so that it may appear that an individual is ineligible when he

or she is actually eligible. The proposed Sec. 21.7131(l) and (m)

recognize this by allowing for the possibility that an individual may

have to submit additional evidence to show that he or she is eligible

for educational assistance. VA will use the evidence submitted to

validate an individual's eligibility for educational assistance under

the MGIB.

Description of likely respondents: Individuals seeking to establish

eligibility for educational assistance under the MGIB.

Estimated number of respondents: 56 per year.

Estimated frequency of responses: Once per respondent.

[[Page 63255]]

Estimated average burden per collection: 20 minutes. This is VA's

estimate of the average time it would take for respondents to find or

obtain, if necessary, this additional evidence, and to copy and mail

this evidence to VA.

Estimated total annual reporting and recordkeeping burden: 19

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 collection 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 submit comments to VA on the proposed rule.

Regulatory Flexibility Act

The Secretary of Defense, Commandant of the Coast Guard, and the

Secretary of Veterans Affairs hereby certify that the adoption of this

proposed rule 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. Adoption of this proposed

rule would not cause educational institutions to make changes in their

activities and would have minuscule monetary effects, if any. Pursuant

to 5 U.S.C. 605(b), this proposed 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 proposed rule are 64.117, 64.120, and 64.124. This

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

Reserve program, which has 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, 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 12, 1998.

Togo D. West, Jr.,

Secretary of Veterans Affairs.

Normand G. Lezy,

Lieutenant General, USAF

Deputy Assistant Secretary (Military Personnel Policy), Department of

Defense.

Approved: July 28, 1998.

T. J. Barrett, RADM, USCG,

Assistant Commandant for Human Resources, Acting.

For the reasons set forth above, 38 CFR part 21 (subparts D, G, K,

and L) 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 continues 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. In Sec. 21.4135, paragraph (b) is added to read as follows:

Sec. 21.4135 Discontinuance dates.

* * * * *

(b) Election to receive educational assistance under the Montgomery

GI Bill--Active Duty. If a veteran makes a valid election, as provided

in Sec. 21.7045(d), to receive educational assistance under the

Montgomery GI Bill--Active Duty in lieu of educational assistance under

the Post-Vietnam Era Veterans' Educational Assistance Program, the

discontinuance date of educational assistance under the Post-Vietnam

Era Veterans' Educational Assistance Program shall be the date on which

the election was made pursuant to procedures described in

Sec. 21.7045(d)(2).

(Authority: 38 U.S.C. 3018C(c)(1))

* * * * *

Subpart G--Post-Vietnam Era Veterans' Educational Assistance Under

38 U.S.C. Chapter 32

3. The authority citation for part 21, subpart G continues to read

as follows:

Authority: 38 U.S.C. 501(a), ch. 32, unless otherwise noted.

Sec. 21.5021 [Amended]

4. In Sec. 21.5021, paragraph (d)(3) is amended by removing

``during the period beginning on November 2, 1994, and ending on

September 30, 1996,''.

5. In Sec. 21.5058, the authority citation for paragraph (b) is

revised to read as follows:

Sec. 21.5058 Resumption of participation.

* * * * *

(b) * * *

(Authority: 38 U.S.C. 3018A, 3018B, 3018C, 3202(l), 3222)

Sec. 21.5130 [Amended]

6. In Sec. 21.5130, paragraph (b) is amended by removing ``(except

paragraph (b))''.

Subpart K--All Volunteer Force Educational Assistance Program

(Montgomery GI Bill--Active Duty)

7. 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.

8. In Sec. 21.7020, paragraph (b)(29)(iii) is amended by removing

``during the period beginning on November 2, 1994, and ending on

September 30, 1996,''; the authority citation for paragraph (b)(29) is

revised; paragraph (b)(1)(iv) is added immediately after the authority

citation for paragraph (b)(1)(iii); and paragraph (b)(44) is added

immediately after the authority citation for paragraph (b)(43), to read

as follows:

Sec. 21.7020 Definitions.

* * * * *

(b) * * *

(1) * * *

(iv) When referring to individuals who, before June 30, 1985, had

never served on active duty (as that term is defined by Sec. 3.6(b) of

this chapter) and who made the election described in Sec. 21.7042(a)(7)

or (b)(10), the term active duty when used in this subpart includes

full-time National Guard duty under title 32, U.S. Code first performed

after June 30, 1985, by a member of the Army National Guard of the

United States or the Air National Guard of the United States for the

purpose of organizing, administering, recruiting, instructing, or

training the National Guard.

[[Page 63256]]

(Authority: 38 U.S.C. 3002(7); sec. 107, Pub. L. 104-275, 110 Stat.

3329-3330)

* * * * *

(29) * * *

(Authority: 38 U.S.C. 3002(8), 3452(c))

* * * * *

(44) Date of election. The term date of election means:

(i) For an election that must be made in the form and manner

determined by the Secretary of Defense, the date determined by the

Secretary of Defense; and

(ii) For an election that must be submitted to VA, the date VA

receives the written election.

(Authority: 38 U.S.C. 3018C(a)(5); sec. 107(b), Pub. L. 104-275, 110

Stat. 3329-3330)

9. In Sec. 21.7042, paragraph (f)(3) is redesignated as paragraph

(f)(4); newly redesignated paragraph (f)(4) is amended by removing

``Paragraph (f)(2) of this section does'' and adding, in its place,

``Paragraphs (f)(2) and (f)(3) of this section do'', by removing

``Coast'' and adding, in its place, ``United States Coast'', and by

removing ``Reserve'' and adding, in its place, ``Senior Reserve'';

paragraph (a)(7) is added immediately after the authority citation for

paragraph (a)(6); paragraph (b)(10) is added immediately after the

authority citation for paragraph (b)(9); new paragraph (f)(3) and

paragraph (g)(5) are added; and paragraphs (f)(2), (g)(1), and (g)(4)

are revised to read as follows:

Sec. 21.7042 Basic eligibility requirements.

* * * * *

(a) * * *

(7) An individual whose active duty meets the definition of that

term found in Sec. 21.7020(b)(1)(iv), and who wishes to become entitled

to basic educational assistance, must have elected to do so before July

9, 1997. For an individual electing while on active duty, this election

must have been made in the manner prescribed by the Secretary of

Defense. For individuals not on active duty, this election must have

been submitted in writing to VA.

(Authority: Sec. 107(b), Pub. L. 104-275, 110 Stat. 3329-3330)

* * * * *

(b) * * *

(10) An individual whose active duty meets the definition of that

term found in Sec. 21.7020(b)(1)(iv), and who wishes to become entitled

to basic educational assistance, must have elected to do so before July

9, 1997. For an individual electing while on active duty, this election

must have been made in the manner prescribed by the Secretary of

Defense. For individuals not on active duty, this election must have

been submitted in writing to VA.

(Authority: Sec. 107(b), Pub. L. 104-275, 110 Stat. 3329-3330)

* * * * *

(f) * * *

(2) Except as provided in paragraph (f)(4) of this section, an

individual is not eligible for educational assistance under 38 U.S.C.

chapter 30 if after December 31, 1976, he or she receives a commission

as an officer in the Armed Forces upon graduation from:

(i) The United States Military Academy;

(ii) The United States Naval Academy;

(iii) The United States Air Force Academy; or (iv) The United

States Coast Guard Academy.

(3) Except as provided in paragraph (f)(4) of this section, an

individual who after December 31, 1976, receives a commission as an

officer in the Armed Forces upon completion of a program of educational

assistance under 10 U.S.C. 2107 is not eligible for educational

assistance under 38 U.S.C. chapter 30, if the individual enters on

active duty--

(i) Before October 1, 1996; or

(ii) After September 30, 1996, and while participating in that

program received more than $2,000 for each year of participation.

(Authority: 38 U.S.C. 3011(c), 3012(d))

* * * * *

(g) Reduction in basic pay. (1) Except as elsewhere provided in

this paragraph, the basic pay of any individual described in paragraph

(a), (b), or (c) of this section shall be reduced by $100 for each of

the first 12 months that the individual is entitled to basic pay. If

the individual does not serve 12 months, it shall be reduced by $100

for each month that the individual is entitled to basic pay.

* * * * *

(4) The individual who makes the election described in either

paragraph (a)(7) or (b)(10) of this section shall have his or her basic

pay reduced by $1,200 in a manner prescribed by the Secretary of

Defense. To the extent that basic pay is not so reduced before the

individual's discharge or release from active duty, VA will collect

from the individual an amount equal to the difference between $1,200

and the total amount of the reductions described in this paragraph. If

the basic pay of an individual is not reduced and/or VA does not

collect from the individual an amount equal to the difference between

$1,200 and the total amount of the pay reductions, that individual is

ineligible for educational assistance.

(Authority: Sec. 107(b)(3), Pub. L. 104-275, 110 Stat. 3329-3330)

(5) If through administrative error, or other reason--

(i) The basic pay of an individual described in paragraph (a)(1)

through (a)(6), (b)(1) through (b)(9), (c), or (d) of this section is

not reduced as provided in paragraph (g)(1) or (g)(2) of this section,

the failure to make the reduction will have no effect on his or her

eligibility, but will negate or reduce the individual's entitlement to

educational assistance under 38 U.S.C. chapter 30 determined as

provided in Sec. 21.7073 for an individual described in paragraph (c)

of this section;

(ii) The basic pay of an individual, described in paragraph (a)(7)

or (b)(10) of this section, is not reduced as described in paragraph

(g)(4) of this section and/or VA does not collect from the individual

an amount equal to the difference between $1,200 and the total amount

of the pay reductions described in paragraph (g)(4) of this section,

that individual is ineligible for educational assistance. If the

failure to reduce the individual's basic pay and/or the failure to

collect from the individual was due to administrative error on the part

of the Federal government or any of its employees, the individual may

be considered for equitable relief depending on the facts and

circumstances of the case. See Sec. 2.7 of this chapter.

(Authority: 38 U.S.C. 3002, 3011, 3012, 3018)

10. In Sec. 21.7045, the heading and introductory text are revised;

and paragraph (d) is added, to read as follows:

Sec. 21.7045 Eligibility based on involuntary separation, voluntary

separation, or participation in the Post-Vietnam Era Veterans'

Educational Assistance Program.

An individual who fails to meet the eligibility requirements found

in Sec. 21.7042 or Sec. 21.7044 nevertheless will be eligible for

educational assistance as provided in this subpart if he or she meets

the requirements of paragraphs (a) and (b) of this section; paragraphs

(a) and (c) of this section; or paragraph (d) of this section.

* * * * *

(d) Alternate eligibility requirements for participants in the

Post-Vietnam Era Veterans' Educational Assistance Program.--(1) Making

an election. To receive educational assistance under the authority of

paragraph (d) of this section, a veteran or servicemember must--

(i) Have elected to do so before October 9, 1997;

(ii) Have been a participant (as that term is defined in

Sec. 21.5021(e)) in the Post-Vietnam Era Veterans' Educational

Assistance Program on October 9, 1996;

[[Page 63257]]

(iii) Have been on active duty on October 9, 1996; and

(iv) Receive an honorable discharge.

(2) Election. The election to receive educational assistance

payable under this subpart in lieu of educational assistance payable

under the Post-Vietnam Era Veterans' Educational Assistance Program is

irrevocable. The election must have been made before October 9, 1997,

pursuant to procedures provided by the Secretary of the military

department concerned in accordance with regulations prescribed by the

Secretary of Defense or provided by the Secretary of Transportation

with respect to the Coast Guard when it is not operating as a service

in the Navy.

(3) $1,200 collection. An individual who has made the election

described in paragraph (d)(2) of this section shall have his or her

basic pay reduced by $1,200 in a manner prescribed by the Secretary of

Defense. To the extent that basic pay is not so reduced before the

individual's discharge or release from active duty, VA will collect

from the individual an amount equal to the difference between $1,200

and the total amount of the reductions. Reduction in basic pay by

$1,200 or collection of $1,200 is a precondition to establishing

eligibility.

(4) Educational requirement. Before applying for benefits that may

be payable as the result of making a valid election, an individual must

have--

(i) Completed the requirements of a secondary school diploma (or

equivalency certificate); or

(ii) Successfully completed the equivalent of 12 semester hours in

a program of education leading to a standard college degree.

(Authority: 38 U.S.C. 3018C)

11. In Sec. 21.7050, paragraph (a)(1) is amended by removing

``paragraph (b)'' and adding, in its place, ``paragraphs (b) and (c)'',

and by removing ``of this part''; paragraphs (c) and (d) are

redesignated as paragraphs (d) and (e), respectively; the authority

citation for paragraph (b) is revised; and a new paragraph (c) is added

to read as follows:

Sec. 21.7050 Ending dates of eligibility.

* * * * *

(b) * * *

(Authority: 38 U.S.C. 3031(e))

(c) Time limit for some members of the Army and Air National Guard.

(1) If a veteran or servicemember establishes eligibility for the

educational assistance payable under this subpart by making the

election described in Sec. 21.7042(a)(7) or (b)(10), VA will not

provide basic educational assistance or supplemental educational

assistance to that veteran or servicemember beyond 10 years from the

later of:

(i) The date determined by paragraph (a) or (b) of this section, as

appropriate; or

(ii) The effective date of the election described in

Sec. 21.7042(a)(7) or (b)(10), as appropriate.

(2) The effective date of election is the date on which the

election is made pursuant to the procedures described in

Sec. 21.7045(d)(2).

(Authority: Sec. 107(b)(3), Pub. L. 104-275, 110 Stat. 3329-3330)

* * * * *

12. In Sec. 21.7131, paragraphs (l) and (m) are added to read as

follows:

Sec. 21.7131 Commencing dates.

* * * * *

(l) Eligibility established under Sec. 21.7042(a)(7) or (b)(10).

This paragraph must be used to establish the effective date of an award

of educational assistance when the veteran or servicemember has

established eligibility under either Sec. 21.7042(a)(7) or (b)(10). The

commencing date of an award of educational assistance for such a

veteran or servicemember is the latest of the following:

(1) The commencing date as determined by paragraphs (a) through (c)

and (f) through (j) of this section;

(2) The date of election provided that--

(i) The servicemember initiated the $1,200 reduction in basic pay

required by Sec. 21.7042(g)(4) and the full $1,200 was collected

through that pay reduction;

(ii) Within one year of the date of election VA both collected from

the veteran $1,200 or the difference between $1,200 and the amount

collected through a reduction in the veteran's military pay, as

provided in Sec. 21.7042(g)(4), and received from the veteran any other

evidence necessary to establish a valid election; or

(iii) VA received from the veteran $1,200 or the difference between

$1,200 and the amount collected through a reduction in the veteran's

military pay and any other evidence necessary to establish a valid

election within one year of the date VA requested the money and/or the

evidence.

(3) If applicable, the date VA collected the difference between

$1,200 and the amount by which the servicemember's military pay was

reduced, if the provisions of paragraph (l)(2)(ii) or (l)(2)(iii) of

this section are not met; or

(4) If applicable, the date VA collected $1,200, if the provisions

of paragraph (l)(2)(ii) or (l)(2)(iii) of this section are not met.

(Authority: 38 U.S.C. 5113; sec. 107, Pub. L. 104-275, 110 Stat.

3329-3330)

(m) Eligibility established under Sec. 21.7045(d). This paragraph

must be used to establish the effective date of an award of educational

assistance when the veteran or servicemember has established

eligibility under Sec. 21.7045(d). The commencing date of an award of

educational assistance for such a veteran or servicemember is the

latest of the following:

(1) The commencing date as determined by paragraphs (a) through (c)

and (f) through (j) of this section;

(2) The date of election provided that--

(i) The servicemember initiated the $1,200 reduction in basic pay

required by Sec. 21.7045(d)(3) and the full $1,200 was collected

through that pay reduction;

(ii) Within one year of the date of election VA both collected from

the veteran $1,200 or the difference between $1,200 and the amount

collected through a reduction in the veteran's military pay, as

provided in Sec. 21.7045(d)(3), and received from the veteran any other

evidence necessary to establish a valid election; or

(iii) VA received from the veteran $1,200 or the difference between

$1,200 and the amount collected through a reduction in the veteran's

military pay and any other evidence necessary to establish a valid

election within one year of the date VA requested the money and/or the

evidence.

(3) If applicable, the date VA collected the difference between

$1,200 and the amount by which the servicemember's military pay was

reduced, if the provisions of paragraph (m)(2)(ii) or (m)(2)(iii) of

this section are not met; or

(4) If applicable, the date VA collected $1,200, if the provisions

of paragraph (m)(2)(ii) or (m)(2)(iii) of this section are not met.

(Authority: 38 U.S.C. 3018C(a), (b), 5113)

* * * * *

Subpart L--Educational Assistance for Members of the Selected

Reserve

13. The authority citation for part 21, subpart L continues 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.

14. In Sec. 21.7520, paragraph (b)(23)(iv) is amended by removing

``during the period beginning on November 2, 1994, and ending on

September 30, 1996,''; and the authority citation for paragraph (b)(23)

is revised to read as follows:

Sec. 21.7520 Definitions.

* * * * *

[[Page 63258]]

(b) * * *

(23) * * *

(Authority: 10 U.S.C. 16131(a), (c); 38 U.S.C. 3002, 3452)

* * * * *

15. In Sec. 21.7635, paragraph (y) is redesignated as paragraph

(z); and a new paragraph (y) is added, to read as follows:

Sec. 21.7635 Discontinuance dates.

* * * * *

(y) Election to receive educational assistance under 38 U.S.C.

chapter 30. VA shall terminate educational assistance effective the

first date for which the reservist received educational assistance

when--

(1) The service that formed a basis for establishing eligibility

for educational assistance under 10 U.S.C. chapter 1606 included a

period of active duty as described in Sec. 21.7020(b)(1)(iv); and

(2) The reservist subsequently made an election, as described in

Sec. 21.7042(a)(7) or (b)(10), to become entitled to basic educational

assistance under 38 U.S.C. chapter 30.

(Authority: Sec. 107, Pub. L. 104-275, 110 Stat. 3329-3330)

* * * * *

[FR Doc. 98-30287 Filed 11-10-98; 8:45 am]

BILLING CODE 8320-01-P