[Federal Register Volume 69, Number 205 (Monday, October 25, 2004)]
[Rules and Regulations]
[Pages 62206-62209]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-23755]


-----------------------------------------------------------------------

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 programs-
veterans, 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.

0
For the reasons set out in the preamble, 38 CFR part 21 (subpart C ) is 
amended as follows:

[[Page 62207]]

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart C--Survivors' and Dependents' Educational Assistance Under 
38 U.S.C. Chapter 35

0
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.

0
2. In Sec.  21.3045, paragraph (h) is revised to read as follows:


Sec.  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.
* * * * *

0
3. In Sec.  21.3046, paragraph (d)(4)(ii) is revised to read as follows


Sec.  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.
* * * * *

0
4. Section 21.3131 is amended by:
0
a. Revising paragraphs (a) and (b).
0
b. Redesignating paragraphs (c), (d), and (e) as paragraphs (d), (e), 
and (f), respectively.
0
c. Adding a new paragraph (c).
    The revisions and addition reads as follows:


Sec.  21.3131  Rates--educational assistance allowance--38 U.S.C. 
chapter 35.

    (a) Rates. Except as provided in Sec.  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\  340.00.
     time \1\.
    \1/4\ time or less \1\.............  170.00.
----------------------------------------
Cooperative training (other than farm    680.00.
 cooperative) (Full time only).
----------------------------------------
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.
\2\ See footnote 5 of Sec.   21.4270(c) for measurement of full time and
  Sec.   21.3132(c) for proportionate reduction in award for completion
  of less than 120 hours per month.
\3\ Established 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 Sec.  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\  347.00.
     time \1\.
    \1/4\ time or less \1\.............  173.75.
----------------------------------------
Cooperative training (other than farm    695.00.
 cooperative) (Full time only).
----------------------------------------

[[Page 62208]]

 
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.
\2\ See footnote 5 of Sec.   21.4270(c) for measurement of full time and
  Sec.   21.3132(c) for proportionate reduction in award for completion
  of less than 120 hours per month.
\3\ Established 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 Sec.  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\  394.00.
     time \1\.
    \1/4\ time or less \1\.............  197.00.
----------------------------------------
Cooperative training (other than farm    788.00.
 cooperative) (Full time only).
----------------------------------------
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.
\2\ See footnote 5 of Sec.   21.4270(c) for measurement of full time and
  Sec.   21.3132(c) for proportionate reduction in award for completion
  of less than 120 hours per month.
\3\ Established 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))
* * * * *

0
5. In Sec.  21.3300, paragraph (c) is revised to read as follows:


Sec.  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.
* * * * *

[[Page 62209]]


0
6. Section 21.3333 is amended by:
0
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:''.
0
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''.
0
c. In paragraph (a)(2), removing ``December 31, 2001:'' and adding, in 
its place, ``September 30, 2003, and before July 1, 2004:''.
0
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''.
0
e. Adding a new paragraph (a)(3) immediately following the authority 
citation at the end of paragraph (a)(2) rates table.
0
f. Revising paragraph (b)(1).
    The addition and revision reads as follows:


Sec.  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