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[Federal Register Volume 62, Number 181 (Thursday, September 18, 1997)]
[Proposed Rules]
[Pages 48969-48972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-24776]

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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI58

Veterans Education: Reduction in Required Reports

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend the educational assistance and 
educational benefits regulations of the Department of Veterans Affairs 
(VA). It proposes to change the nature of the information to be 
reported by veterans and servicemembers receiving educational 
assistance under the Montgomery GI Bill--Active Duty program and the 
number of reports required of educational institutions in which these 
veterans and servicemembers are enrolled. It appears that these changes 
would streamline the operation of this program and reduce the 
information collection burden for this program, while maintaining the 
program's integrity. This document also requests Paperwork Reduction 
Act comments concerning the collections of information contained in 
this document.

DATES: Comments must be received on or before November 17, 1997.

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-AI58''. All 
written comments received will be available for public inspection at 
the above address in the Office of Regulations Management, Room 1158, 
between the hours of 8:00 a.m. and 4:30 p.m., Monday through Friday 
(except holidays).

FOR FURTHER INFORMATION CONTACT: June C. Schaeffer, Assistant Director 
for Policy and Program Administration, Education Service, Veterans 
Benefits Administration, 202-273-7187.

SUPPLEMENTARY INFORMATION: This document proposes to amend the ``ALL 
VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM (MONTGOMERY GI BILL--
ACTIVE DUTY)'' regulations set forth at 38 CFR Part 21, Subpart K. 
Except for correspondence course enrollments, a veteran or 
servicemember receiving educational assistance under these provisions 
is required to verify, after the fact, pursuit of a program of 
education each month (referred to below as monthly verification). 
Current regulations specify the information that must be reported in 
the monthly verification. Except in advance payment and lump sum 
payment cases, VA does not pay educational assistance until VA receives 
this monthly verification.
    Since pursuit of a program of education is a necessary prerequisite 
to receipt of educational assistance under the educational programs VA 
administers, current regulations also require (see Sec. 21.7156) a 
veteran or servicemember to report, on a ``without delay'' basis 
(referred to below as ``without delay'' reporting), each change in her 
or his hours of credit being pursued and any changes in the status of 
his or her pursuit of the program. This duty to provide ``without 
delay'' reporting is in addition to the monthly verification described 
above. Further, under Sec. 21.7156 educational institutions also are 
required ``without delay'' or within specified time frames (all 
reporting required of educational institutions ``without delay'' or 
within specified time frames is referred to below as ``without delay'' 
reporting) to report changes in the number of hours of credit pursued 
and changes in attendance.
    The common purpose of these information collections is to allow VA 
to determine whether a veteran or servicemember continues to be 
entitled to educational assistance and, if so, to release the monthly 
payment to the veteran or servicemember.
    However, it does not appear necessary to obtain monthly 
verification from a veteran who has received an advance payment for the 
month in question. Advance payments are not submitted by VA directly to 
the veteran. Instead, they are delivered to the educational institution 
where the veteran is pursuing a program of education. If the veteran 
does not begin training, the educational institution returns the 
payment to VA instead of delivering it to the veteran. Accordingly, it 
appears that no useful purpose is served by requiring a veteran to 
provide a monthly verification concerning pursuit of a program of 
education for a month for which he or she has received an advance 
payment. Therefore, it is proposed to amend Sec. 21.7154 to eliminate 
the requirement that the veteran provide monthly verification for those 
monthly periods for which

[[Page 48970]]

advance payments have been made through the institution. If the veteran 
does have a change in status or enrollment during that period after 
receipt of the payment, he or she, and the educational institution, 
still would remain obligated to provide VA notification by ``without 
delay'' reporting (see Sec. 21.7156).
    By statute (38 U.S.C. 3034(c)) VA is required to make lump-sum 
payments to veterans and servicemembers for an entire term, quarter, or 
semester when the veteran or servicemember is attending less than half-
time. Inasmuch as these individuals do not receive payments each month, 
it appears that monthly verification is not needed to release such a 
payment. Again, the veteran or servicemember and the educational 
institution would still be obligated to provide VA ``without delay'' 
reporting of any relevant changes in status or enrollment that may 
occur after the release of the lump-sum payment (see Sec. 21.7156). 
Therefore, it appears that no useful purpose is served by requiring 
these individuals to provide monthly verification. Accordingly, it is 
proposed to amend Sec. 21.7154 to eliminate this requirement.
    Furthermore, under the current Sec. 21.7154 a veteran is required 
to certify in the monthly verification actual class attendance. Before 
December 18, 1989, VA was required by statute to reduce an individual's 
monthly educational assistance if that individual were pursuing a 
course not leading to a standard college degree and had excessive 
absences. VA is no longer required by statute to make those reductions. 
Accordingly, it appears that actual attendance certification is no 
longer necessary to be included in a monthly verification. It is 
proposed to amend Sec. 21.7154 to eliminate this requirement.
    With respect to veterans in courses not leading to a standard 
college degree, the regulations require monthly certification of 
attendance from a veteran. Some have questioned whether the regulations 
require the veteran's certification also to contain a report from the 
educational institution. In those cases in which no status change 
occurred during the previous month, the educational institution's 
verification was not intended to be included. It is unnecessary and 
delays receipt of the document by VA. In cases where a change occurs, 
the educational institution must submit that information within the 
time frames for ``without delay'' reporting, but may do so separately. 
Accordingly, it is proposed to change Sec. 21.7156 to more clearly set 
forth the intended meaning.
    Occasionally, a veteran or servicemember will enroll in more hours 
than the minimum required to be a full-time student under the statute. 
Often such a student, provided he or she is enrolled in a standard 
term, quarter, or semester, will add or drop courses with no effect on 
his or her status as a full-time student and payment to the student 
will not be affected. It is proposed that under these circumstances, 
neither the student nor the educational institution would be required 
to report the changes. Such reporting would not appear to be necessary 
since the changes would not affect payment to the student. However, 
when the student is enrolled in a nonstandard term, VA is proposing to 
continue to require such a student and the educational institution to 
report all credit hour changes by ``without delay'' reporting. Under 
the regulatory criteria for determining what constitutes a full-time 
enrollment in a nonstandard term, complicated computation is necessary 
in each individual case. Since the student may not be able readily to 
make those calculations, he or she would be less likely to be able to 
ascertain whether the change in credit hour status should be reported 
to VA.
    Additional changes are included in the proposed rule for purposes 
of clarity.

Paperwork Reduction Act of 1995

    Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), 
collections of information are set forth in the proposed 38 CFR 
21.7154, 21.7156(a), and 21.7156(b). 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 collections 
of information.
    OMB assigns control numbers to collections 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 collections 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 to the Director, Office of 
Regulations Management (02D), Department of Veterans Affairs, 810 
Vermont Ave., NW, Washington, DC 20420. Comments should indicate that 
they are submitted in response to ``RIN 2900-AI58.''

    Title: Monthly verification of pursuit.
    Summary of collection of information: The collection of information 
in the proposed Secs. 21.7154 and 21.7156(a) would implement a 
statutory provision that permits, but does not require, VA to require 
reports showing an eligible veteran'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 
veteran to satisfy this requirement. VA estimates that adoption of the 
proposed changes to Sec. 21.7154 would annually eliminate at least 500 
reports that individuals are currently required to submit and also 
would shorten other reports, and thereby reduce the total annual 
reporting burden on individuals by 5,739 hours.
    Description of need for information and proposed use of 
information: The information that would be required under Secs. 21.7154 
and 21.7156(a) is needed to help VA determine whether educational 
assistance should continue to be paid to a veteran and to verify the 
correct monthly rate of educational assistance payable to a veteran. 
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 student is 
enrolled.
    Description of likely respondents: Veterans eligible to receive 
educational assistance under the Montgomery GI Bill--Active Duty 
program.
    Estimated number of respondents: 318,129.
    Estimated frequency of responses: Monthly while the veteran 
continues to pursue a program of education, provided the veteran has 
not been paid in a lump sum.
    Estimated average burden per collection: 5 minutes.
    Estimated total annual reporting and recordkeeping burden: 185,571 
hours of reporting burden. VA estimates that there will be no 
recordkeeping burden.

    Title: Report of Change in Enrollment.
    Summary of collection of information: The collection of information 
in the proposed revisions to Sec. 21.7156(b) would implement a 
statutory provision that requires an educational institution to report 
without delay changes, including interruptions and terminations, in a 
veteran's or servicemember's enrollment. VA estimates that adoption of 
these proposed changes would annually eliminate 21,841 reports that 
educational institutions are currently required to submit and reduce 
the total annual reporting burden on educational institutions by 1,830 
hours.
    Description of need for information and proposed use of 
information: The

[[Page 48971]]

information required in Sec. 21.7156(b) is needed to help VA determine 
the monthly rate of educational assistance payable to a veteran or 
servicemember. 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 
student is enrolled.
    Description of likely respondents: Educational institutions.
    Estimated number of respondents: 7,481.
    Estimated frequency of responses: Occasionally, when a veteran or 
servicemember changes her or his pursuit of a program of education, 
unless the individual was a full-time student both before and after the 
change.
    Estimated average burden per collection: 5 minutes.
    Estimated total annual reporting and recordkeeping burden: 52,230 
hours of reporting burden. VA does not believe that there will be 
additional recordkeeping burden.
    The Department considers comments by the public on proposed 
collections of information in--
     Evaluating whether the proposed collections 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;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected;
     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 proposed 
collections 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 comment on the proposed regulations.

Executive Order 12866

    This proposed rule has been reviewed by OMB under Executive Order 
12866.

Regulatory Flexibility Act

    The Secretary of Veterans Affairs hereby certifies that this 
proposed rule, if promulgated, 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. The adoption of the 
proposed rule would have only minuscule effects on the activity of any 
educational institution. Pursuant to 5 U.S.C. 605(b), this proposed 
rule, therefore, is exempt from the initial and final regulatory 
flexibility analyses requirements of sections 603 and 604.

    The Catalog of Federal Domestic Assistance number for the 
program affected by this proposed rule is 64.124.

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: September 5, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.
    For the reasons set out above, 38 CFR part 21, subpart K, is 
amended as set forth below.

PART 21--VOCATIONAL REHABILITATION AND EDUCATION

Subpart K--All Volunteer Force Educational Assistance Program 
(Montgomery GI Bill--Active Duty)

    1. The authority citation for part 21, subpart K, is revised to 
read as follows:

    Authority: 38 U.S.C. 501(a), 38 U.S.C. chs. 30, 36, unless 
otherwise noted.

    2. In Sec. 21.7154, paragraphs (a) and (b) are redesignated as 
paragraphs (b) and (c), respectively; newly redesignated paragraph 
(b)(2)(i) is amended by removing ``payment,'' and adding, in its place, 
``payment;''; newly redesignated paragraph (b)(2)(ii) is amended by 
removing ``period, and'' and adding, in its place, ``period; and''; 
paragraph (a) is added, and the introductory text for the section, the 
paragraph heading for newly redesignated paragraph (b), and newly 
redesignated paragraph (b)(1) are revised, to read as follows:

Sec. 21.7154  Pursuit and absences.

    Except as provided in this section, an individual must submit a 
verification to VA each month of his or her enrollment during the 
period for which the individual is to be paid. This verification shall 
be in a form prescribed by the Secretary.
    (a) Exceptions to the monthly verification requirement. An 
individual does not have to submit a monthly verification as described 
in the introductory text of this section when the individual--
    (1) Is enrolled in a correspondence course;
    (2) Has received a lump-sum payment for the training completed 
during a month; or
    (3) Has received an advance payment for the training completed 
during a month.

(Authority: 38 U.S.C. 3034, 3684)

    (b) Items to be reported on all monthly verifications. (1) The 
monthly verification for all veterans and servicemembers will include a 
report on the following items when applicable:
    (i) Continued enrollment in and actual pursuit of the course;
    (ii) The individual's unsatisfactory conduct, progress, or 
attendance;
    (iii) The date of interruption or termination of training;
    (iv) Changes in the number of credit hours or in the number of 
clock hours of attendance other than those described in 
Sec. 21.7156(a);
    (v) Nonpunitive grades; and
    (vi) Any other changes or modifications in the course as certified 
at enrollment.
* * * * *
    3. In Sec. 21.7156, the introductory text and paragraph (a) 
introductory text are removed; paragraphs (a)(1), (a)(2), (a)(3), (b), 
and (c) are redesignated as paragraphs (b)(3), (b)(4), (b)(5), (c), and 
(d), respectively; newly redesignated paragraph (c)(2) is amended by 
removing ``(b)(1)'' and adding, in its place, ``(c)(1)''; and the 
section heading is revised, paragraphs (a), (b)(1), and (b)(2) are 
added, and newly redesignated paragraph (b)(3) is revised, to read as 
follows:

Sec. 21.7156  Other required reports.

    (a) Reports from veterans and servicemembers. (1) A veteran or 
servicemember 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;

[[Page 48972]]

    (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 veteran or servicemember 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: 38 U.S.C. 3680(g))

    (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 
veteran or servicemember:
    (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 veteran's or servicemember's hours of credit or attendance when:
    (i) The veteran or servicemember is enrolled full time in a program 
of education for a standard term, quarter, or semester before the 
change;
    (ii) The veteran or servicemember continues to be enrolled full 
time after the change; and
    (iii) The tuition and fees charged to the servicemember have not 
been adjusted as a result of the change.

(Authority: 38 U.S.C. 3034, 3684)

    (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 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.
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[FR Doc. 97-24776 Filed 9-17-97; 8:45 am]
BILLING CODE 8320-01-P
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