[Federal Register Volume 62, Number 208 (Tuesday, October 28, 1997)]
[Rules and Regulations]
[Pages 55759-55762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-28402]


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DEPARTMENT OF DEFENSE

DEPARTMENT OF TRANSPORTATION

Coast Guard

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AI69


Miscellaneous Educational Revisions

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 and 
educational benefit regulations of the Department of Veterans Affairs 
(VA). It removes a number of provisions that no longer apply or 
otherwise have no substantive effect, and makes other changes for the 
purpose of clarification.

DATES: This final rule is effective October 28, 1997.

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 affects 38 CFR part 21, 
subparts C, D, G, H, K, and L. It removes provisions that are obsolete, 
duplicative, or otherwise without substantive effect, and makes changes 
for the purpose of clarification. This document makes no substantive 
changes. 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.
    The Department of Defense (DOD) and VA are jointly issuing this 
final rule insofar as it relates to the Post-Vietnam Era Educational 
Assistance Program (VEAP) and the Educational Assistance Test Program 
(EATP). These programs are 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 program. This program is funded by DOD and the 
Coast Guard, and is administered by VA. The remainder of this final 
rule is issued solely by VA.
    The Secretary of Defense, the Commandant of the Coast Guard, and 
Acting Secretary of Veterans Affairs 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. This final rule makes no substantive 
changes. Pursuant to 5 U.S.C. 605(b), this final rule, therefore, is 
exempt from the initial and final regulatory flexibility analyses 
requirements of sections 603 and 604.
    The Catalog of Federal Domestic Assistance numbers for programs 
affected by this final rule are 64.117, 64.120, and 64.124. This 
document also affects the Montgomery GI Bill--Selected Reserve program 
which has 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, 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.


[[Page 55760]]


    Approved: July 22, 1997.
Hershel W. Gober,
Acting Secretary of Veterans Affairs.

    Approved: October 2, 1997.
Allan L. Brendsel,
Colonel USA, Principal Deputy, Deputy Assistant Secretary (Military 
Personnel Policy).

    Approved: October 9, 1997.
G.E. Woolever,
Rear Admiral, U.S. Coast Guard, Assistant Commandant for Human 
Resources.

    For the reasons set forth in the preamble, 38 CFR part 21, subparts 
C, D, G, H, K, and L, is amended as set forth below.

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.


Sec. 21.3041  [Amended]

    2. In Sec. 21.3041, paragraph (e)(3) is amended by removing 
``Sec. 21.4135(o)'' and adding, in its place, ``Sec. 21.3135(h)''; and 
paragraph (e)(4) is amended by removing ``Sec. 21.4135(o)'' and adding, 
in its place, ``Sec. 21.3135(i)''.
    3. In Sec. 21.3045, paragraph (i)(3)(ii) is amended by removing 
``paragraph (h)(3)(i)'' and adding in its place, ``paragraph 
(i)(3)(i)''; and paragraph (f) is revised to read as follows:


Sec. 21.3045  Entitlement charges.

* * * * *
    (f) Entitlement charge for pursuit solely by independent study. For 
enrollments in terms, quarters, or semesters that begin after June 30, 
1993, VA will make charges against the entitlement of an eligible 
person in the manner prescribed by paragraph (e) of this section, if he 
or she is pursuing a program of education solely by independent study. 
For all other enrollments where the eligible person is pursuing a 
program of education solely by independent study, the computation will 
be made as though the eligible person's training were one-quarter time.

(Authority: 38 U.S.C. 3482(b), 3532(a))
* * * * *

Subpart D--Administration of Educational Assistance Programs

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

    Authority: 10 U.S.C. ch. 1606; 38 U.S.C. 501(a), chs. 30, 32, 
34, 35, 36, unless otherwise noted.


Sec. 21.4009  [Amended]

    5. In Sec. 21.4009, paragraph (b)(1) introductory text, is amended 
by removing ``in potentially'' and adding, in its place, ``is 
potentially''.
    6. In Sec. 21.4200, paragraph (g) is revised to read as follows:


Sec. 21.4200  Definitions.

* * * * *
    (g) Standard class session. The term standard class session means 
the time an educational institution schedules for class each week in a 
regular quarter or semester for one quarter or one semester hour of 
credit. It is not less than 1 hour (or one 50-minute period) of 
academic instruction, 2 hours (or two 50-minute periods) of laboratory 
instruction, or 3 hours (or three 50-minute periods) of workshop 
training.

(Authority: 38 U.S.C. 3688(c))
* * * * *


Sec. 21.4201  [Amended]

    7. In Sec. 21.4201, paragraph (h) introductory text is amended by 
removing ``Vocational Rehabilitation and'' both times it appears; and 
paragraph (h)(2) is amended by removing ``Vocational Rehabilitation 
and''.


Sec. 21.4233  [Amended]

    8. In Sec. 21.4233, paragraph (b)(3) introductory text is amended 
by removing ``(b)(1)'' and adding, in its place, ``(b)(2)''; paragraph 
(b)(3)(ii) is amended by removing ``(b)(2)(i)'' and adding, in its 
place, ``(b)(3)(i)''; paragraph (b)(4) introductory text is amended by 
removing ``(b)(1)'' and adding, in its place, ``(b)(2)''; and paragraph 
(b)(4)(ii) is amended by removing ``(b)(3)(i)'' and adding, in its 
place, ``(b)(4)(i)''.


Sec. 21.4250  [Amended]

    9. In Sec. 21.4250, paragraph (a)(1) is amended by removing 
``Chapter'' and adding, in its place, ``38 U.S.C. chapter'', and by 
removing ``Chapters 34 and'' and adding, in its place, ``38 U.S.C. 
chapter''; paragraph (a)(2) is amended by removing ``Chapter'' each 
place it appears, and adding, in its place, ``38 U.S.C. chapter''; 
paragraph (c)(1) is amended by removing ``Director'' and adding, in its 
place, ``Director,'', by removing ``Education'' and adding, in its 
place, ``Counseling'', and by removing ``Chapter'' and adding, in its 
place, ``38 U.S.C. chapter''; paragraph (c)(2) is amended by removing 
``Vocational Rehabilitation and''; paragraph (c)(2)(ii) is amended by 
removing ``34, 35'' and adding, in its place ``35,''; paragraph 
(c)(2)(iii) is amended by removing ``38 U.S.C. Chapter 32, 34 or 35'' 
and adding, in its place, ``10 U.S.C. chapter 1606 or 38 U.S.C. chapter 
30, 32, or 35''; and paragraph (c)(2)(iv) is amended by removing 
``Chapter'' and adding, in its place, ``chapter''.
    10. In Sec. 21.4270, the heading for paragraph (c) and paragraph 
(c), footnote 2 are revised to read as follows:


Sec. 21.4270  Measurement of courses.

* * * * *
    (c) Undergraduate, graduate, professional, and on-the-job training 
courses.* * *

    \2\ When the institution certifies that all undergraduate 
students enrolled for a minimum of 12 or 13 semester hours or the 
equivalent are charged full-time tuition, or considered full time 
for other administrative purposes, such minimum hours will establish 
the criteria for full-time measurement. When 12 hours is properly 
certified as full time, VA will measure 9 through 11 hours as \3/4\ 
time, 6 through 8 hours as \1/2\ time, 4 through 5 hours as less 
than \1/2\ time and more than \1/4\ time, and 1 through 3 hours as 
\1/4\ time or less. VA will measure all other undergraduate courses 
as indicated in the table for undergraduate or professional courses, 
as appropriate, but when 13 credit hours or the equivalent is 
certified as full time, \3/4\ time will be 10 through 12 hours. 
When, in accordance with Sec. 21.4273(a), a responsible official of 
a school certifies that a lesser number of hours constitute full 
time, \3/4\ time, \1/2\ time, less than \1/2\ time and more than \1/
4\ time, or \1/4\ time or less, VA will accept the certification for 
measurement purposes.
    To meet criteria for full-time measurement in standard 
collegiate courses which include required noncredit deficiency 
courses, in the absence of a certification under Sec. 21.4272(k), VA 
will convert the noncredit deficiency courses on the basis of the 
applicable measurement criteria, as follows: 18 or 22 clock hours, 4 
``Carnegie Units,'' or 12, 13, or 14 (as appropriate) semester hours 
equal full time. The credit-hour equivalent of such noncredit 
courses may constitute any portion of the required hours for full-
time measurement.
* * * * *

Subpart G--Post Vietnam Era Veterans' Educational Assistance Under 
38 U.S.C. Chapter 32

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

    Authority: 38 U.S.C. 501(a), ch. 32, unless otherwise noted.


Sec. 21.5270  [Amended]

    12. In Sec. 21.5270, paragraph (a) is amended by removing ``of this 
part'' and by removing ``chapter'' and adding, in its place, ``38 
U.S.C. chapter''; paragraph (g) is amended by removing ``progress and 
conduct'' and adding, in its place,

[[Page 55761]]

``progress, conduct, and attendance''; and paragraph (i) is amended by 
removing ``correspondence; residence'' and adding, in its place 
``correspondence-residence''.

Subpart H--Educational Assistance Test Program

    13. The authority citation for subpart H is revised to read as 
follows:

    Authority: 10 U.S.C. ch. 107; 38 U.S.C. 501(a), 3695, 5101, 
5113, 5303A; 42 U.S.C. 2000; sec. 901, Pub. L. 96-342, 94 Stat. 
1111-1114, unless otherwise noted.


Sec. 21.5901  [Amended]

    14. In Sec. 21.5901, paragraph (a) is amended by removing ``Chief 
Benefits Director of VA'' and adding, in its place, ``Under Secretary 
for Benefits'', by removing ``Vocational Rehabilitation and'', and by 
removing ``Chapter'' and adding, in its place, ``chapter'; and 
paragraph (b) is amended by removing ``Chief Benefits Director'' and 
adding, in its place, ``Under Secretary for Benefits''.

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

    15. The authority citation for subpart K is revised to read as 
follows:

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

    16. In Sec. 21.7020, the introductory text is amended by removing 
``of this part''; paragraph (a)(1)(i) is amended by removing ``of this 
part''; paragraph (a)(2)(i) is amended by removing ``Sec. 21.7042 or 
Sec. 21.7044 of this part'' and adding, in its place, ``Sec. 21.7042, 
Sec. 21.7044, or Sec. 21.7045''; and paragraph (b)(25)(i)(G) is revised 
to read as follows:


Sec. 21.7020  Definitions.

* * * * *
    (b) * * *
    (25) * * *
    (i) * * *
    (G) A flight training course beginning on or after September 30, 
1990.
* * * * *


Sec. 21.7044  [Amended]

    17. In Sec. 21.7044, paragraph (c) is removed; and paragraphs (d) 
and (e) are redesignated as paragraphs (c) and (d), respectively.
    18. In Sec. 21.7140, paragraph (c)(1)(iii) is removed; paragraph 
(c)(1)(i) is amended by removing ``Sec. 21.7152;'' and adding, in its 
place, ``Sec. 21.7152; and''; paragraph (c)(1)(ii) is amended by 
removing ``enrollment; and'' and adding, in its place, ``enrollment.''; 
paragraph (d)(1) is amended by removing ``Ch.'' and adding, in its 
place, ``chapter'', and by removing ``in the same manner as they are 
applied in the administration of chapter 34''; paragraph (e)(2) is 
amended by removing, ``in the same manner as they are applied in the 
administration of chapters 34 and 36''; and the authority citations for 
paragraphs (c)(1), (d), (e), and (g) are revised to read as follows:


Sec. 21.7140  Certifications and release of payments.

* * * * *
    (c) * * *
    (1) * * *

(Authority: 38 U.S.C. 3680(g))
* * * * *
    (d) * * *

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

    (e) * * *

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

    (g) * * *

(Authority: 38 U.S.C. 5121)

    19. Section 21.7144 is revised to read as follows:


Sec. 21.7144  Overpayments.

    (a) Prevention of overpayments. In administering benefits payable 
under 38 U.S.C. chapter 30, VA will apply the provisions of 
Sec. 21.4008. See Sec. 21.7133.

(Authority: 38 U.S.C. 3034, 3690(b))

    (b) Liability for overpayments. (1) The amount of the overpayment 
of educational assistance paid to a veteran or servicemember 
constitutes a liability of that veteran or servicemember.
    (2) The amount of the overpayment of educational assistance paid to 
a veteran or servicemember constitutes a liability of the educational 
institution if VA determines that the overpayment was made as the 
result of willful or negligent:
    (i) False certification by the educational institution; or
    (ii) Endorsement of a veteran's or servicemember's false 
certification of his or her actual attendance.

(Authority: 38 U.S.C. 3034, 3685)

    (c) Recovery of overpayments. In determining whether an overpayment 
should be recovered from an educational institution, VA will apply the 
provisions of Sec. 21.4009 (except paragraph (a)(1)) to overpayments of 
educational assistance under 38 U.S.C. chapter 30.

(Authority: 38 U.S.C. 3034, 3685)

    Cross reference: Entitlement charges. See Sec. 21.7076(c).

    21. Section 21.7170 is revised to read as follows:


Sec. 21.7170  Course measurement.

    In administering benefits payable under 38 U.S.C. chapter 30, VA 
will apply the following sections:
    (a) Sec. 21.4270 (except paragraphs (a)(2) and (a)(3) and those 
portions of paragraph (c) and footnotes dealing with farm cooperative 
training)--Measurement of courses;
    (b) Sec. 21.4272--Collegiate course measurement;
    (c) Sec. 21.4273--Collegiate graduate;
    (d) Sec. 21.4274--Law courses; and
    (e) Sec. 21.4275--Practical training courses; measurement.

(Authority: 38 U.S.C. 3034, 3688)

    21. In Sec. 21.7172, paragraph (a)(3)(ii) is revised to read as 
follows:


Sec. 21.7172  Measurement of concurrent enrollments.

* * * * *
    (a) * * *
    (3) * * *
    (ii) VA measures the courses pursued at the second school on a 
credit-hour basis, VA will convert the credit hours to clock hours to 
determine the veteran's training time.

(Authority: 38 U.S.C. 3034, 3688)
* * * * *
    22. Section 21.7305 is revised to read as follows:


Sec. 21.7305  Conflicting interests.

    In administering benefits payable under 38 U.S.C. chapter 30, VA 
will apply the provisions of Sec. 21.4005.

(Authority: 38 U.S.C. 3034, 3036)

    23. Section 21.7307 is revised to read as follows:


Sec. 21.7307  Examination of records.

    In administering benefits payable under 38 U.S.C. chapter 30, VA 
will apply the provisions of Sec. 21.4209.

(Authority: 38 U.S.C. 3034, 3690)

    24. Section 21.7310 is revised to read as follows:


Sec. 21.7310  Civil rights.

    (a) Delegation of authority concerning Federal equal opportunity 
laws. The Under Secretary for Benefits is delegated the responsibility 
to obtain evidence of voluntary compliance with Federal equal 
opportunity laws from educational institutions and from recognized 
national organizations whose representatives are afforded space and 
office facilities under his or her jurisdiction. See part 18 of this 
chapter. These equal opportunity laws are:
    (1) Title VI, Civil Rights Act of 1964;
    (2) Title IX, Education Amendments of 1972, as amended;

[[Page 55762]]

    (3) Section 504, Rehabilitation Act of 1973; and
    (4) The Age Discrimination Act of 1975.
    (b) Role of State approving agencies. In obtaining evidence from 
educational institutions of compliance with Federal equal opportunity 
laws, the Under Secretary for Benefits may use the State approving 
agencies as provided in Sec. 21.4258(d).

(Authority: 42 U.S.C. 2000)

Subpart L--Educational Assistance for Members of the Selected 
Reserve

    25. 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.

    26. In Sec. 21.7622, paragraph (c) is revised to read as follows:


Sec. 21.7622  Courses precluded.

* * * * *
    (c) Erroneous, deceptive, misleading practices. VA will not pay 
educational assistance for an enrollment in any courses offered at an 
educational institution that uses advertising, sales, or enrollment 
practices that are erroneous, deceptive, or misleading by actual 
statement, omission, or intimation. VA will apply the provisions of 
Sec. 21.4252(h) in making these decisions with regard to enrollments 
under 10 U.S.C. chapter 1606.

(Authority: 10 U.S.C. 16136(b); 38 U.S.C. 3696)
* * * * *


Sec. 21.7639  [Amended]

    27. In Sec. 21.7639, paragraph (b) introductory text is amended by 
removing ``As is the case with reservists who are not incarcerated,''.
    28. Section 21.7659 is revised to read as follows:


Sec. 21.7659  Reporting fee.

    In determining the amount of the reporting fee payable to 
educational institutions for furnishing required reports, VA will apply 
the provisions of Sec. 21.4206.

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


Sec. 21.7670  [Amended]

    29. In Sec. 21.7670, paragraph (d) is amended by removing 
``Sec. 21.4272(a), (b), (d), (e) (except paragraph (e)(4)), (f), (g), 
and (k)'' and adding, in its place, ``Sec. 21.4272''.
    30. In Sec. 21.7720, paragraphs (b)(9), (b)(10), and (b)(11) are 
redesignated as paragraphs (b)(11), (b)(12), and (b)(13), respectively; 
paragraph (b)(5) is amended by removing ``policy--nonaccredited'' and 
adding, in its place ``policy; nonaccredited''; newly redesignated 
paragraph (b)(11) is amended by removing ``(except paragraphs (a), (e), 
and (g))''; and paragraphs (b)(9) and (b)(10) are added to read as 
follows:


Sec. 21.7720  Course approval.

* * * * *
    (b) * * *
    (9) Sec. 21.4261--Apprentice courses;
    (10) Sec. 21.4262--Other training on-the-job courses;
* * * * *
[FR Doc. 97-28402 Filed 10-27-97; 8:45 am]
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