62206 Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Rules and Regulations 

provided in this section or in § 21.7639, 

the monthly rate of educational 

assistance payable for training that 

occurs after September 30, 2003, and 

before October 1, 2004, to a reservist 

pursuing a program of education is the 

rate stated in this table:

Training Monthly 

rate 

Full ................................................ $282.00 

3⁄4 time .......................................... 212.00 1⁄2 time .......................................... 140.00 1⁄4 time .......................................... 70.50 

(2)(i) The monthly rate of basic 

educational assistance payable to a 

reservist for apprenticeship or other onthe-job training full time that occurs 

after September 30, 2003, and before 

October 1, 2004, is the rate stated in this 

table:

Training period Monthly 

rate 

First six months of pursuit of training ............................................. $211.50 

Second six months of pursuit of 

training ...................................... 155.10 

Remaining pursuit of training ....... 98.70 

* * * * *

[FR Doc. 04–23757 Filed 10–22–04; 8:45 am] 

BILLING CODE 8320–01–P

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 21 

RIN 2900–AL64 

Increase in Rates Payable Under the 

Survivors’ and Dependents’

Educational Assistance Program

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the 

regulations governing rates of 

educational assistance payable under 

the Survivors’ and Dependents’

Educational Assistance (DEA) program 

to reflect increases required by statutory 

provisions. The rates of educational 

assistance payable under the DEA 

program are changed to show a 1.5% 

increase for fiscal year 2003 (October 1, 

2002, through September 30, 2003) and 

a 2.2% increase for fiscal year 2004 

(beginning October 1, 2003). In addition, 

the Veterans Benefits Act of 2003 

provided an increase in the rates 

payable effective July 1, 2004. The 

amendments show the pay tables for the 

three rate increases identified above.

DATES: Effective Date: This final rule is 

effective October 25, 2004. 

Applicability Dates: The changes in 

rates are applied to conform to the 

respective statutory requirements. For 

more information concerning the dates 

of applicability, see the SUPPLEMENTARY

INFORMATION section.

FOR FURTHER INFORMATION CONTACT:

Lynn M. Nelson, Education Advisor 

(225C), Education Service, Department 

of Veterans Affairs, Veterans Benefits 

Administration, 810 Vermont Ave. NW., 

Washington, DC 20420 (202) 273–7294.

SUPPLEMENTARY INFORMATION: Under the 

formula mandated by 38 U.S.C. 3564, 

the monthly rates of basic educational 

assistance payable under the Survivors’

and Dependents’ Educational Assistance 

(DEA) program must be adjusted each 

fiscal year. The regulations governing 

the rates of educational assistance 

payable under the DEA program for 

fiscal year (FY) 2003 (October 1, 2002, 

through September 30, 2003) are 

changed to reflect a 1.5% increase. The 

1.5% increase is the percentage by 

which the total of the monthly 

Consumer Price Index-W (CPI–W) for 

July 1, 2001, through June 30, 2002, 

exceeds the total of the monthly CPI–W 

for July 1, 2000, through June 30, 2001. 

The regulations are further amended 

to include the DEA rates payable during 

FY 2004. The FY 2004 rates reflect a 

2.2% increase. The 2.2% increase is the 

percentage by which the total of the 

monthly CPI–W for July 1, 2002, 

through June 30, 2003, exceeds the total 

of the monthly CPI–W for July 1, 2001, 

through June 30, 2002. 

In addition to the cost of living rate 

adjustments discussed above, Section 

302 of the Veterans Benefits Act of 2003 

(Pub. L. 108–183) provides an increase 

in the DEA rates effective July 1, 2004. 

A new paragraph (c) is added to Section 

21.3131 to show the increased DEA 

rates effective July 1, 2004. 

The changes set forth in this final rule 

are effective from the date of 

publication, but the changes in the rates 

for FY 2003 are effective October 1, 

2002, the changes in the rates for FY 

2004 are effective October 1, 2003, and 

the changes in rates provided for in 

Public Law 108–183 are effective July 1, 

2004. This is in accordance with the 

applicable statutory provisions 

discussed above. 

Administrative Procedure Act 

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. 

Paperwork Reduction Act 

This document contains no provisions 

constituting a collection of information 

under the Paperwork Reduction Act (44 

U.S.C. 3501–3521). 

Regulatory Flexibility Act 

The initial and final regulatory 

flexibility analyses requirements of 

sections 603 and 604 of the Regulatory 

Flexibility Act, 5 U.S.C. 601–612, are 

not applicable to this rule, because the 

agency is not required to publish a 

notice of proposed rulemaking for this 

rule. Even so, the 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. This final rule directly affects only 

individuals and does not directly affect 

small entities. Therefore, this final rule 

is also exempt pursuant to 5 U.S.C. 

605(b) from the initial and final 

regulatory flexibility analyses 

requirements of sections 603 and 604. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

requires, at 2 U.S.C. 1232, that agencies 

prepare an assessment of anticipated 

costs and benefits before developing any 

rule that may result in an expenditure 

by State, local, or tribal governments, in 

the aggregate, or by the private sector, of 

$100 million or more in any given year. 

This rule will have no such effect on 

State, local or tribal governments, or the 

private sector. 

Catalog of Federal Domestic Assistance 

Program Numbers 

The Catalog of Federal Domestic 

Assistance number for the program 

affected by this final rule is 64.117.

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 programsveterans, Manpower training programs, 

Reporting and recordkeeping 

requirements, Schools, Travel and 

transportation expenses, Veterans, 

Vocational education, Vocational 

rehabilitation.

Approved: August 23, 2004. 

Anthony J. Principi, 

Secretary of Veterans Affairs.

■ For the reasons set out in the preamble, 

38 CFR part 21 (subpart C ) is amended 

as follows:

Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Rules and Regulations 62207

PART 21—VOCATIONAL 

REHABILITATION AND EDUCATION

Subpart C—Survivors’ and 

Dependents’ Educational Assistance 

Under 38 U.S.C. Chapter 35

■ 1. The authority citation for part 21, 

subpart C, continues to read as follows:

Authority: 38 U.S.C. 501(a), 512, 3500–

3566, unless otherwise noted.

■ 2. In § 21.3045, paragraph (h) is revised 

to read as follows:

§ 21.3045 Entitlement charges.

* * * * *

(h) Entitlement charge for 

correspondence courses. The charge 

against entitlement of a spouse or 

surviving spouse for pursuit of a course 

exclusively by correspondence will be 1 

month for each of the following 

amounts paid as an educational 

assistance allowance: 

(1) $680.00 paid after September 30, 

2002, and before October 1, 2003; 

(2) $695.00 paid after September 30, 

2003, and before July 1, 2004; and 

(3) $788.00 paid after June 30, 2004.

* * * * *

■ 3. In § 21.3046, paragraph (d)(4)(ii) is 

revised to read as follows

§ 21.3046 Periods of eligibility; spouses 

and surviving spouses.

* * * * *

(d) * * * 

(4) * * * 

(ii) The total additional amount of 

instruction that—

(A) $1,904 will provide during the 

period October 1, 2002, through 

September 30, 2003; 

(B) $1,946 will provide during the 

period October 1, 2003, through June 30, 

2004; or 

(C) $2,206 will provide after June 30, 

2004.

* * * * *

■ 4. Section 21.3131 is amended by:

■ a. Revising paragraphs (a) and (b).

■ b. Redesignating paragraphs (c), (d), 

and (e) as paragraphs (d), (e), and (f), 

respectively.

■ c. Adding a new paragraph (c).

The revisions and addition reads as 

follows:

§ 21.3131 Rates—educational assistance 

allowance—38 U.S.C. chapter 35. 

(a) Rates. Except as provided in 

§ 21.3132, educational assistance 

allowance is payable at the following 

rates for pursuit of education or training 

that occurs after September 30, 2002, 

and before October 1, 2003:

Type of course Monthly rate 

Institutional: 

Full time ............................................................................................. $680.00. 

3⁄4 time ............................................................................................... 511.00. 1⁄2 time ............................................................................................... 340.00. 

Less than 1⁄2 but more than 1⁄4 time 1 ............................................... 340.00. 1⁄4 time or less 1 ................................................................................. 170.00. 

Cooperative training (other than farm cooperative) (Full time only) ........ 680.00. 

Apprenticeship or on-the-job (full time only) 2: 

First six months ................................................................................. 495.00. 

Second six months ............................................................................ 370.00. 

Third six months ................................................................................ 246.00. 

Fourth six months and thereafter ...................................................... 124.00. 

Farm cooperative: 

Full time ............................................................................................. 549.00. 

3⁄4 time ............................................................................................... 412.00. 1⁄2 time ............................................................................................... 275.00. 

Correspondence ....................................................................................... 55 percent of the established charge for the number of lessons completed by the eligible spouse or surviving spouse and serviced by the 

school—Allowance paid quarterly. 3

1 If an eligible person under 38 U.S.C. chapter 35 pursuing independent study on a less than one-half-time basis completes his or her program 

before the designated completion time, his or her award will be recomputed to permit payment of tuition and fees not to exceed $340.00 or 

$170.00, as appropriate, per month, if the maximum allowance is not initially authorized. 2See footnote 5 of § 21.4270(c) for measurement of full time and § 21.3132(c) for proportionate reduction in award for completion of less than 

120 hours per month. 3Established charge means the charge for the course or courses determined on the basis of the lowest extended time payment plan offered 

by the institution and approved by the appropriate State approving agency or the actual cost to the eligible spouse or surviving spouse, whichever is less. VA considers the continuity of an enrollment broken when there are more than 6 months between the servicing of the lessons. 

(b) Rates. Except as provided in 

§ 21.3132, educational assistance 

allowance is payable at the following 

rates for pursuit of education or training 

that occurs after September 30, 2003, 

and before July 1, 2004:

Type of course Monthly rate 

Institutional: 

Full time ............................................................................................. $695.00. 

3⁄4 time ............................................................................................... 522.00. 1⁄2 time ............................................................................................... 347.00 

Less than 1⁄2 but more than 1⁄4 time 1 ............................................... 347.00. 1⁄4 time or less 1 ................................................................................. 173.75. 

Cooperative training (other than farm cooperative) (Full time only) ........ 695.00. 

62208 Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Rules and Regulations 

Type of course Monthly rate 

Apprenticeship or on-the-job (full time only) 2: 

First six months ................................................................................. 506.00. 

Second six months ............................................................................ 378.00. 

Third six months ................................................................................ 251.00. 

Fourth six months and thereafter ...................................................... 127.00. 

Farm cooperative: 

Full time ............................................................................................. 561.00. 

3⁄4 time ............................................................................................... 421.00. 1⁄2 time ............................................................................................... 281.00. 

Correspondence ....................................................................................... 55 percent of the established charge for the number of lessons completed by the eligible spouse or surviving spouse and serviced by the 

school—Allowance paid quarterly. 3

1 If an eligible person under 38 U.S.C. chapter 35 pursuing independent study on a less than one-half-time basis completes his or her program 

before the designated completion time, his or her award will be recomputed to permit payment of tuition and fees not to exceed $347.00 or 

$173.75, as appropriate, per month, if the maximum allowance is not initially authorized. 2See footnote 5 of § 21.4270(c) for measurement of full time and § 21.3132(c) for proportionate reduction in award for completion of less than 

120 hours per month. 3Established charge means the charge for the course or courses determined on the basis of the lowest extended time payment plan offered 

by the institution and approved by the appropriate State approving agency or the actual cost to the eligible spouse or surviving spouse, whichever is less. VA considers the continuity of an enrollment broken when there are more than 6 months between the servicing of the lessons. 

(c) Rates. Except as provided in 

§ 21.3132, educational assistance 

allowance is payable at the following 

rates for pursuit of education or training 

that occurs after June 30, 2004:

Type of course Monthly rate 

Institutional: 

Full time ............................................................................................. $788.00. 

3⁄4 time ............................................................................................... 592.00. 1⁄2 time ............................................................................................... 394.00. 

Less than 1⁄2 but more than 1⁄4 time 1 ............................................... 394.00. 1⁄4 time or less 1 ................................................................................. 197.00. 

Cooperative training (other than farm cooperative) (Full time only) ........ 788.00. 

Apprenticeship or on-the-job (full time only) 2: 

First six months ................................................................................. 574.00. 

Second six months ............................................................................ 429.00. 

Third six months ................................................................................ 285.00. 

Fourth six months and thereafter ...................................................... 144.00. 

Farm cooperative: 

Full time ............................................................................................. 636.00. 

3⁄4 time ............................................................................................... 477.00. 1⁄2 time ............................................................................................... 319.00. 

Correspondence ....................................................................................... 55 percent of the established charge for the number of lessons completed by the eligible spouse or surviving spouse and serviced by the 

school—Allowance paid quarterly.3

1 If an eligible person under 38 U.S.C. chapter 35 pursuing independent study on a less than one-half-time basis completes his or her program 

before the designated completion time, his or her award will be recomputed to permit payment of tuition and fees not to exceed $394.00 or 

$197.00, as appropriate, per month, if the maximum allowance is not initially authorized. 2See footnote 5 of § 21.4270(c) for measurement of full time and § 21.3132(c) for proportionate reduction in award for completion of less than 

120 hours per month. 3Established charge means the charge for the course or courses determined on the basis of the lowest extended time payment plan offered 

by the institution and approved by the appropriate State approving agency or the actual cost to the eligible spouse or surviving spouse, whichever is less. VA considers the continuity of an enrollment broken when there are more than 6 months between the servicing of the lessons. 

(Authority: 38 U.S.C. 3532(a), 3542(a), 

3687(b)(2), (d))

* * * * *

■ 5. In § 21.3300, paragraph (c) is revised 

to read as follows:

§ 21.3300 Special restorative training.

* * * * *

(c) Duration of special restorative 

training. VA may provide special 

restorative training in excess of 45 

months where an additional period of 

time is needed to complete the training. 

Entitlement, including any authorized 

in excess of 45 months, may be 

expended through an accelerated 

program requiring a rate of payment for 

tuition and fees in excess of—

(1) $213.00 a month for the period 

beginning October 1, 2002, and ending 

September 30, 2003; 

(2) $218.00 a month for the period 

beginning October 1, 2003, and ending 

June 30, 2004; and 

(3) $247.00 a month for months after 

June 30, 2004.

* * * * *

Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Rules and Regulations 62209

■ 6. Section 21.3333 is amended by:

■ a. In paragraph (a)(1), removing 

‘‘September 30, 2001, and before January 

1, 2002.’’ and adding, in its place, 

‘‘September 30, 2002, and before October 

1, 2003:’’.

■ b. In the rates table immediately 

following paragraph (a)(1), under the 

‘‘Monthly rate’’ column, removing 

‘‘$608.00’’ and adding, in its place, 

‘‘$680.00’; and under the ‘‘Accelerated 

charges’’ column, removing ‘‘$190.00’’

each place it appears, and adding, in its 

place, ‘‘$213.00’’.

■ c. In paragraph (a)(2), removing 

‘‘December 31, 2001:’’ and adding, in its 

place, ‘‘September 30, 2003, and before 

July 1, 2004:’’.

■ d. In the rates table immediately 

following paragraph (a)(2), under the 

‘‘Monthly rate’’ column, removing 

‘‘$670.00’’ and adding, in its place, 

‘‘$695.00’’; and under the ‘‘Accelerated 

charges’’ column, removing ‘‘$210.00’’

each place it appears, and adding, in its 

place, ‘‘$218.00’’.

■ e. Adding a new paragraph (a)(3) 

immediately following the authority 

citation at the end of paragraph (a)(2) 

rates table.

■ f. Revising paragraph (b)(1).

The addition and revision reads as 

follows:

§ 21.3333 Rates. 

(a) * * * 

(3) For special restorative training that 

occurs after June 30, 2004:

Course Monthly rate Accelerated charges 

Special restorative training ................................... $788.00 If costs for tuition and fees average in excess of $247.00 per month, rate 

may be increased by training such amount in excess of $247.00. 

(Authority: 38 U.S.C. 3542)

(b) * * * (1) VA may pay the 

additional monthly rate if the parent or 

guardian concurs in having the eligible 

child’s period of entitlement reduced by 

1 day for each—

(i) $22.67 that the special training 

allowance exceeds the basic monthly 

rate of $680.00 for the period October 1, 

2002, through September 30, 2003; 

(ii) $23.17 that the special training 

allowance exceeds the basic monthly 

rate of $695.00 for the period October 1, 

2003, through June 30, 2004; and 

(iii) $26.27 that the special training 

allowance exceeds the basic monthly 

rate of $788.00 for months after June 30, 

2004.

* * * * *

[FR Doc. 04–23755 Filed 10–22–04; 8:45 am] 

BILLING CODE 8320–01–P

DEPARTMENT OF DEFENSE

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 21 

RIN 2900–AL81 

Veterans Education: Increased 

Allowances for the Educational 

Assistance Test Program

AGENCIES: Department of Defense and 

Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: The law provides that the 

Secretary of Defense shall adjust the 

rates of subsistence allowance and 

educational assistance under the 

Educational Assistance Test Program 

annually. The law further provides 

those rates must be adjusted based upon 

the average actual cost of attendance at 

public institutions of higher education 

in the 12-month period since the rates 

were last adjusted. After obtaining data 

from the Department of Education, the 

Department of Defense has determined 

that the rates for the 2003–04 academic 

year should be increased by 9.6 percent 

over the rates payable for the 2002–03 

academic year. The regulations dealing 

with these rates are amended 

accordingly.

DATES: Effective Date: October 25, 2004. 

Applicability Date: The changes in 

rates are applied retroactively to 

October 1, 2003, to conform to statutory 

requirements. For more information 

concerning the applicability date, see 

the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT:

Lynn M. Nelson, Education Adviser 

(225C), Education Service, Veterans 

Benefits Administration, Department of 

Veterans Affairs, 810 Vermont Avenue, 

NW., Washington, DC 20420, (202) 273–

7294.

SUPPLEMENTARY INFORMATION: Section 

2145 of title 10, United States Code, 

provides that the Secretary of Defense 

shall make adjustments in the amount of 

educational assistance offered in any 

academic year under the Educational 

Assistance Test Program and likewise, 

in the amount of subsistence allowance 

authorized under that program. This 

provision further requires that these 

adjustments will be consistent with the 

change in the average actual cost of 

attendance at public institutions of 

higher education over the preceding 12-

month period. As required by sections 

2145, 2143, and 2144 of title 10, the 

Department of Defense has obtained 

data from the Department of Education. 

The Department of Defense has 

calculated that the costs of educational 

assistance and subsistence allowance 

have each increased by 9.6 percent. 

Accordingly, this final rule changes 38 

CFR 21.5820 and 21.5822 to reflect a 9.6 

percent increase in the rates payable in 

the 2003–04 academic year, including 

changes needed to compensate for 

rounding. 

The Secretary of Defense delegated 

the authority to administer the benefit 

payment portion of the Educational 

Assistance Test Program, also known as 

Section 901 benefits, to the Secretary of 

Veterans Affairs (VA). Thus, VA 

regulations include the educational 

assistance amounts payable under the 

program. 

The changes set forth in this final rule 

are effective from the date of 

publication, but the changes in rates are 

applied from October 1, 2003, in 

accordance with the applicable statutory 

provisions discussed above. 

Administrative Procedure Act 

Since changes made by this final rule 

only reflect statutory requirements and 

adjustments based on previously 

established formulas, there is a basis for 

dispensing with notice-and-comment 

and a delayed effective date under 5 

U.S.C. 552 and 553. 

Paperwork Reduction Act 

This document contains no provisions 

constituting a new collection of 

information under the Paperwork 

Reduction Act (44 U.S.C. 3501–3521). 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

requires, at 2 U.S.C. 1532, that agencies 

prepare an assessment of anticipated 

costs and benefits before developing any 

rule that may result in expenditure by 

State, local, or tribal governments, in the 

aggregate, or by the private sector, of 

$100 million or more in any given year. 

This rule would have no such 

consequential effect on State, local, or 

tribal governments.