Advance Payments and Lump-Sum Payments of Educational Assistance; Miscellaneous Nonsubstantive Changes

DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI31

Advance Payments and Lump-Sum Payments of Educational Assistance;

Miscellaneous Nonsubstantive Changes

AGENCIES: Department of Defense, Department of Transportation (Coast

Guard), and Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the educational assistance regulations

dealing with the advance payment and lump-sum payment of educational

assistance. We are amending these regulations by removing provisions

that no longer apply and by making other changes for the purpose of

clarification. This will make these regulations easier to use. In

addition, this document makes nonsubstantive changes for the purpose of

clarification in the educational assistance regulations concerning

eligibility for the Montgomery GI Bill--Active Duty program.

DATES: Effective Date: September 30, 1999.

FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education

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

7187.

SUPPLEMENTARY INFORMATION: In the Federal Register of May 20, 1998 (63

FR 27701), the Department of Veterans Affairs (VA), the Department of

Defense (DOD), and the Department of Transportation (Coast Guard)

proposed amending the educational assistance regulations concerning

advance payments and lump-sum payments of educational assistance. We

proposed removing obsolete provisions and clarifying other provisions.

Interested persons were given 60 days in which to submit comments

to VA. We received no comments. Based on the rationale set forth in the

proposed rule and this document, the provisions of the proposed rule

are adopted without change, except that nonsubstantive changes are made

for the purpose of clarification and authority citations are changed.

DOD and VA are jointly issuing this final rule insofar as it

relates to the Post-

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Vietnam Era Veterans' Educational Assistance program. This program is

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

Transportation (Coast Guard), and VA are jointly issuing this final

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. VA alone is issuing the remainder of this final rule.

Paperwork Reduction Act

The collection of information contained in this final rule in 38

CFR 21.4138(a) has been approved by the Office of Management and Budget

(OMB) under the provisions of the Paperwork Reduction Act (44 U.S.C.

3501-3520) and has been assigned OMB control number 2900-0604. The

collection of information implements a statutory provision that

mandates that an individual who wishes to receive an advance payment of

educational assistance must ask for it. We received no comments on the

proposed collection of information.

OMB assigns a control number for 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. The valid OMB control number

assigned to the collection of information in this final rule is

displayed at the end of the affected section of the regulations.

Administrative Procedure Act

Under 5 U.S.C. 553, there is a basis for dispensing with a 30-day

delay of the effective date since the changes made by this final rule

are nonsubstantive.

Executive Order 12866

This final rule has been reviewed by OMB under Executive Order

12866.

Regulatory Flexibility Act

The signers of this document hereby certify 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. The adoption of this final rule does not make

substantive changes. It removes provisions that no longer apply and

makes other changes for purposes of clarification.

The Catalog of Federal Domestic Assistance numbers for programs

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

rule will also affect the Montgomery GI Bill--Selected Reserve 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: March 25, 1999.

Togo D. West, Jr.,

Secretary of Veterans Affairs.

Approved: April 29, 1999.

Curtis B. Taylor,

Colonel, U.S. Army, Principal Director, (Military Personnel Policy)

Department of Defense.

Approved: May 27, 1999.

F. L. Ames

Read Admiral, U.S. Coast Guard, Assistant Commandant For Human

Resources.

For the reasons set out in the preamble, 38 CFR part 21 is amended

as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart D--Administration of Educational Assistance Programs

1. The authority citation for subpart D is revised to read as

follows:

Authority: 10 U.S.C. 2141 note, ch. 1606; 38 U.S.C. 501(a), 38

U.S.C. chs. 30, 32, 34, 35, 36, unless otherwise noted.

2. In Sec. 21.4138, the introductory text is removed; paragraphs

(c) and (d) are removed and reserved; paragraphs (a) and (b) are

revised; and a parenthetical is added to the end of the section, to

read as follows:

Sec. 21.4138 Certifications and release of payments.

(a) Advance payments. (1) VA will make payments of educational

assistance in advance when:

(i) The veteran, servicemember, reservist, or eligible person has

specifically requested such a payment;

(ii) The student is enrolled for half time or more;

(iii) The educational institution at which the veteran,

servicemember, reservist, or eligible person is accepted or enrolled

has agreed to and can satisfactorily carry out the provisions of 38

U.S.C. 3680(d)(4)(B) and (C) and (5) pertaining to receipt, delivery,

or return of checks and certifications of delivery and enrollment;

(iv) The Director of the VA field facility of jurisdiction has not

acted under paragraph (a)(4) of this section to prevent advance

payments being made to the veteran's, servicemember's, reservist's, or

eligible person's educational institution;

(v) There is no evidence in the veteran's, servicemember's,

reservist's, or eligible person's claim file showing that he or she is

not eligible for an advance payment;

(vi) The period for which the veteran, servicemember, reservist, or

eligible person has requested a payment either--

(A) Is preceded by an interval of nonpayment of 30 days or more; or

(B) Is the beginning of a school year that is preceded by a period

of nonpayment of 30 days or more; and

(vii) The educational institution or the veteran, servicemember,

reservist, or eligible person has submitted the certification required

by Sec. 21.7151.

(2) The amount of the advance payment to a veteran, reservist, or

eligible person is the educational assistance for the month or fraction

thereof in which the term or course will begin plus the educational

assistance for the following month. The amount of the advance payment

to a servicemember is the amount payable for the entire term, quarter,

or semester, as applicable.

(3) VA will mail advance payments to the educational institution

for delivery to the veteran, servicemember, reservist, or eligible

person. The educational institution will not deliver the advance

payment check more than 30 days in advance of the first date of the

period for which VA makes the advance payment.

(4) The Director of the VA field station of jurisdiction may direct

that advance payments not be made to individuals attending an

educational institution if:

(i) The educational institution demonstrates an inability to comply

with the requirements of paragraph (a)(3) of this section;

(ii) The educational institution fails to provide adequately for

the safekeeping of the advance payment checks before delivery to the

veteran, servicemember, reservist, or eligible person or return to VA;

or

(iii) The Director determines, based on compelling evidence, that

the educational institution has demonstrated its inability to discharge

its responsibilities under the advance payment program.

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(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3034, 3680(d))

(b) Lump-sum payments. A lump-sum payment is a payment of all

educational assistance due for an entire quarter, semester, or term. VA

will make a lump-sum payment to:

(1) A veteran or servicemember pursuing a program of education at

less than the half-time rate under 38 U.S.C. chapter 30;

(2) A servicemember pursuing a program of education at the half-

time rate or greater under 38 U.S.C. chapter 30, provided that VA did

not make an advance payment to the servicemember for the term for which

a lump-sum payment would otherwise be due; and

(3) An eligible person pursuing a program of education at less than

the half-time rate under 38 U.S.C. chapter 35.

(Authority: 38 U.S.C. 3034(c), 3680(f))

* * * * *

(The Office of Management and Budget has approved the information

collection requirements in this section under control number 2900-

0604)

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), chs. 32, 36, unless otherwise

noted.

4. Section 21.5135 is revised to read as follows:

Sec. 21.5135 Advance payments.

VA will apply the provisions of Sec. 21.4138(a) in making advance

payments to veterans and servicemembers.

(Authority: 38 U.S.C. 3241, 3680)

Subpart K--All Volunteer Force Educational Assistance Program

(Montgomery GI Bill--Active Duty)

5. 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.

6. The heading of Sec. 21.7040 is revised to read as follows:

Sec. 21.7040 Categories of basic eligibility.

7. The heading of Sec. 21.7042 and the parenthetical at the end of

the section are revised to read as follows:

Sec. 21.7042 Basic eligibility requirements.

* * * * *

(The Office of Management and Budget has approved the information

collection requirements in this section under control number 2900-

0594)

8. In Sec. 21.7140, paragraph (b) is removed; paragraphs (c), (d),

(e), (f), and (g) are redesignated as paragraphs (b), (c), (d), (e),

and (f), respectively; and paragraph (a) is revised, to read as

follows:

Sec. 21.7140 Certifications and release of payments.

(a) Advance payments and lump-sum payments. VA will apply the

provisions of Sec. 21.4138(a) and (b) in making advance payments and

lump-sum payments to veterans and servicemembers.

(Authority: 38 U.S.C. 3034 and 3680)

* * * * *

Subpart L--Educational Assistance for Members of the Selected

Reserve

9. The authority citation for part 21, subpart L is revised to read

as follows:

Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), 512, ch. 36,

unless otherwise noted.

10. In Sec. 21.7640, the authority citations for paragraphs (b),

(c), (e), and (f) are amended by removing ``; Pub. L. 98-525'';

paragraph (e) is amended by removing ``paragraph (d) of this section''

and adding, in its place, ``Sec. 21.4138(a)''; and paragraph (d) is

revised to read as follows:

Sec. 21.7640 Release of payments.

* * * * *

(d) Advance payments. VA will apply the provisions of

Sec. 21.4138(a) in making advance payments to reservists.

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

* * * * *

[FR Doc. 99-25284 Filed 9-29-99; 8:45 am]

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