Reservists Education: Monthly Verification of Enrollment and Other Reports

DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI68

Reservists Education: Monthly Verification of Enrollment and

Other Reports

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). It proposes to expand the current requirement that some

reservists receiving educational assistance under the Montgomery GI

Bill--Selected Reserve (MGIB-SR) verify their pursuit of a program of

education monthly to include those reservists who are pursuing a

standard college degree. At the same time the document proposes

reducing the number of reports VA receives from educational

institutions. It appears that this would be a cost-effective way to

reduce overpayments.

DATES: Comments must be received on or before June 1, 1998.

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

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

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

indicate that they are submitted in response to ``RIN 2900-AI68.'' 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).

Comments on the collection of information contained in this

proposal 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 Avenue

NW, Room 1154, Washington, DC 20420. Comments should indicate that they

are submitted in response to ``RIN 2900-AI68.'' All written comments to

VA 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: VA is required by statute (38 U.S.C.

3680(g)) to withhold payments of educational assistance until VA

receives proof of an individual's pursuit of a program of education.

The statute goes on to state that VA may accept the individual's

monthly certification of enrollment in and satisfactory pursuit of a

program of education as satisfactory proof. Currently, regulations

governing the MGIB-SR require such a monthly certification from a

reservist pursuing a course not leading to a standard college degree,

but this is not required from a reservist who is pursuing a standard

college degree.

VA analyzes its information collection burdens periodically to see

if they are cost-effective. In 1997 an analysis was done of the monthly

certification process. The analysis included an examination of the

verification process in other VA education programs such as the

Montgomery GI Bill--Active Duty (MGIB) where students pursuing a

standard college degree are required to verify their continued pursuit

monthly.

The analysis found that if monthly verifications were eliminated

entirely, the current establishment of debt in the education programs

VA administers would increase from $5.6 million to $14 million

annually. While the cost of processing verifications would be

eliminated, the cost of collecting debts would increase. Conversely,

the analysis projected that if monthly verifications were required in

all the education programs VA administers, the establishment of debt in

those programs would decrease from $5.6 million to $2.4 million

annually, while the costs of processing those verifications would

increase by $0.3 million annually. Accordingly, it would appear that

overpayments of educational assistance

[[Page 15342]]

under MGIB-SR could be effectively reduced by expanding the monthly

verification process to include reservists enrolled in courses leading

to a standard college degree. This proposed rule would require

reservists pursuing a standard college degree to verify pursuit of a

program of education each month.

Current regulations provide that if a reservist reduces his or her

rate of training, and has mitigating circumstances for such a

reduction, the effective date for the corresponding reduction in the

monthly rate of the reservist's educational assistance will be the end

of the month in which the reduction in the rate of training took place.

However, VA is required by statute to make the reduction in the monthly

rate of educational assistance on the effective date of the reduction

in the rate of training, if the reduction is pursuant to a report

received from the reservist as part of his or her monthly verification

of training. Thus, it appears that adopting a monthly verification

requirement would require a change in the regulation governing the

effective dates of reductions in educational assistance. Such a change

is included in this proposal.

Current regulations provide that when a reservist interrupts or

terminates training or when he or she changes the number of hours of

credit or attendance, the educational institution must report this fact

to VA. The purpose of this report is to help determine the reservist's

training time. VA considers a reservist to be a half-time, three-

quarter-time, full-time, etc., student on the basis of the number of

his or her credit hours or clock hours of attendance. Payments, in

turn, are based on the training time. For example, a full-time student

receives twice the monthly educational assistance that a half-time

student does. VA needs to know changes in the number of the reservist's

hours of credit or attendance so that his or her payments may

accurately reflect the training time.

However, occasionally a reservist will enroll in more hours than

the minimum needed to be considered a full-time student. The reservist

may withdraw from a course or add a course and still be considered a

full-time student. It appears that in those instances VA does not need

a report of the change in hours, because payment to the student will

not be affected. Accordingly, it is proposed that in these instances

the educational institution need not report the changes provided the

reservist is enrolled in a standard term.

Similarly, VA is proposing that a reservist who is a full-time

student and who changes his or her enrollment but remains a full-time

student need not report the change on the monthly verification of

pursuit.

Paperwork Reduction Act of 1995

The Office of Management and Budget (OMB) has determined that the

proposed 38 CFR 21.7654 and 21.7656(a) and the proposed 38 CFR

21.7656(b) would constitute collections of information under the

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

under section 3507(d) of the Act VA has submitted a copy of this

rulemaking action to OMB for its review.

Title: Monthly Verification of Pursuit of Training under the

Montgomery GI Bill--Selected Reserve.

Summary of collection of information: The collection of information

in the proposed revisions to Secs. 21.7654 and 21.7656(a) in this

rulemaking proceeding implements a statutory provision that permits,

but does not require, VA to require reports showing a reservist'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 reservist to satisfy this

requirement.

Description of need for information and proposed use of

information: The information required in Secs. 21.7654 and 21.7656(a)

is needed to help VA determine whether educational assistance should

continue to be paid to a reservist and to verify the correct monthly

rate of educational assistance payable to a reservist. The monthly rate

is based on the reservist's training time which in turn is based on the

number of credit hours in which the reservist is enrolled.

Description of likely respondents: The respondents will be

reservists eligible to receive educational assistance under the

Montgomery GI Bill--Selected Reserve.

Estimated number of respondents: 82,400.

Estimated frequency of responses: Monthly while the reservist

continues to pursue a program of education.

Estimated total annual reporting and recordkeeping burden: 48,067

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

recordkeeping burden.

Estimated average burden per respondent: .58 hour.

Title: Report of Change in Enrollment for Reservists Training under

the Montgomery GI Bill--Selected Reserve.

Summary of collection of information: The collection of information

in the proposed revisions to Sec. 21.7656(b) in this rulemaking

proceeding implements a statutory provision that requires an

educational institution to report without delay changes, including

interruptions and terminations, in a reservist's enrollment. This

proposed rule would reduce the information collection burden currently

placed on educational institutions by eliminating some reports that the

current regulation requires.

Description of need for information and proposed use of

information: The information required in Sec. 21.7656(b) is needed to

help VA determine the monthly rate of educational assistance payable to

a reservist. 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

reservist is enrolled.

Description of likely respondents. Educational institutions make

this report.

Estimated number of respondents: 7,481.

Estimated frequency of responses: Occasionally, when a reservist

changes her or his pursuit of a program of education, unless the

reservist was a full-time student both before and after the change.

Estimated total annual reporting and recordkeeping burden: 13,570

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

additional recordkeeping burden.

Estimated average burden per respondent: 1.81 hours.

The Department considers comments by the public on proposed

collections of information in--

Evaluating whether the proposed collection(s) 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;

Minimizing the burden of the collection 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.

[[Page 15343]]

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

the Secretary of Veterans Affairs hereby certify that this proposed

rule, if adopted, 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. This proposed rule may

affect some educational institutions that are small entities. However,

educational institutions are paid a reporting fee for making required

reports to VA. Furthermore, VA does not believe that a burden of less

than two hours annually would result in a significant economic impact.

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

from both the initial and final regulatory flexibility analysis

requirements of sections 603 and 604.

There is no Catalog of Federal Domestic Assistance number for the

program affected by this proposed rule.

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: March 17, 1998.

Togo D. West, Jr.,

Acting Secretary.

Approved: August 13, 1997.

Al H. Bemis,

Deputy Assistant Secretary of Defense for Reserve Affairs (Manpower and

Personnel).

Approved: November 4, 1997.

G.F. Woolever,

Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human

Resources.

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

amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart L--Educational Assistance for Members of the Selected

Reserve

1. 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), ch. 36, unless

otherwise noted.

2. In Sec. 21.7635, paragraph (c)(1) is revised to read as follows:

Sec. 21.7635 Discontinuance dates.

* * * * *

(c) * * *

(1) If the reduction in the rate of training occurs other than on

the first date of the term, VA will reduce the reservist's educational

assistance effective on the date the reduction occurred when:

* * * * *

3. In Sec. 21.7654, paragraph (b) is redesignated as paragraph (c);

paragraph (a) is revised; and introductory text and a new paragraph (b)

are added to read as follows:

Sec. 21.7654 Pursuit and absences.

Except as provided in this section, a reservist must submit a

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

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

be in a form prescribed by the Secretary.

(a) Exceptions to the monthly verification requirement. A reservist

does not have to submit a monthly verification as described in the

introductory text of this section when the reservist--

(1) Is enrolled in a correspondence course; or

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

during a month.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680(a), 3680(g))

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

monthly verification for all reservists will include a report on the

following items when applicable:

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

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

(iii) Except as provided in Sec. 21.7656(a), changes in the number

of credit hours or in the number of clock hours of attendance;

(iv) Nonpunitive grades; and

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

at enrollment.

(2) The verification of enrollment must:

(i) Contain the information required for release of payment;

(ii) If required or permitted by the Secretary to be submitted on

paper, be signed by the reservist on or after the final date of the

reporting period, or if permitted by the Secretary to be submitted by

telephone in a manner designated by the Secretary, be submitted in the

form and manner prescribed by the Secretary on or after the final date

of the reporting period; and

(iii) If submitted on paper, clearly show the date on which it was

signed.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3680(g))

* * * * *

4. In Sec. 21.7656, the introductory text is removed, paragraphs

(a), (a)(1), (a)(2), (a)(3), and (b) are redesignated as paragraphs

(b), (b)(3), (b)(4), (b)(5), and (c), respectively; the section

heading, newly redesignated paragraphs (b), (b)(3) and the authority

citation at the end of paragraph (b) are revised; and new paragraphs

(a), (b)(1), and (b)(2) are added, to read as follows:

Sec. 21.7656 Other required reports.

(a) Reports from reservists. (1) A reservist 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;

(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 reservist 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: 10 U.S.C. 16136(b); 38 U.S.C. 3684)

(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

reservist:

(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 reservist's hours of credit or attendance when:

(i) The reservist is enrolled full time in a program of education

for a standard term, quarter, or semester before the change; and

(ii) The reservist continues to be enrolled full time after the

change.

(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

[[Page 15344]]

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.

* * * * *

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3684)

* * * * *

[FR Doc. 98-8332 Filed 3-30-98; 8:45 am]

BILLING CODE 8320-01-P