63848 Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations

regulations dealing with these rates are

amended accordingly.

EFFECTIVE DATE: December 3, 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: The law

(10 U.S.C. 2145) provides that the

Secretary of Defense shall adjust the

amount of educational assistance which

may be provided in any academic year

under the Educational Assistance Test

Program, and the amount of subsistence

allowance authorized under that

program. The adjustment is to be based

upon the twelve-month increase in the

average actual cost of attendance at

public institutions of higher education.

As required by law, the Department of

Defense has consulted with the

Department of Education. The

Department of Defense has concluded

that these costs increased by 6% in the

1996–97 academic year. Accordingly,

this revision changes 38 CFR 21.5820

and 21.5822 to reflect a 6% increase in

the rates payable in the 1997–98

academic year.

Administrative Procedure Act

Pursuant to 5 U.S.C. 553 there is good

cause for finding that notice and public

procedure are impractical, unnecessary,

and contrary to the public interest and

there is good cause for dispensing with

a 30 day delay of the effective date. The

rates of subsistence allowance and

educational assistance payable under

the Educational Assistance Test

Program are determined based on a

statutory formula and, in essence, the

calculation of rates merely constitutes a

non-discretionary ministerial act.

The Secretary of Veterans Affairs and

the Secretary of Defense have certified

that these amended regulations 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.

Pursuant to 5 U.S.C. 605(b), the

amended regulations, therefore, are

exempt from the initial and final

regulatory flexibility analyses

requirements of sections 603 and 604.

This certification can be made

because the amended regulations

directly affect only individuals. They

will have no significant economic

impact on small entities, i.e., small

businesses, small private and nonprofit

organizations and small governmental

jurisdictions.

There is no Catalog of Federal

Domestic Assistance number for the

program affected by these regulations.

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, Loan programseducation, Loan programs-veterans,

Manpower training programs, Reporting

and recordkeeping requirements,

Schools, Travel and transportation

expenses, Veterans, Vocational

education, Vocational rehabilitation.

Approved: October 17, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

Approved: November 13, 1997.

Normand G. Lezy,

Lieutenant General, USAF, Deputy Assistant

Secretary (Military Personnel Policy).

For the reasons set out above, 38 CFR

part 21 (subpart H) is amended as set

forth below.

PART 21—VOCATIONAL

REHABILITATION AND EDUCATION

Subpart H—Educational Assistance

Test Program

1. The authority citation for part 21,

subpart H, continues to read as follows:

Authority: 10 U.S.C. chapter 107, Pub. L.

96–342.

§ 21.5820 [Amended]

2. In § 21.5820, paragraph (b)(1) is

amended by removing ‘‘1996–97’’ and

adding, in its place, ‘‘1997–98’’, and by

removing ‘‘$2,927’’ and adding, in its

place, ‘‘$3,103’’; paragraph (b)(2)(ii) is

amended by removing ‘‘1996–97’’ and

adding, in its place ‘‘1997–98’’;

paragraph (b)(2)(ii)(A) is amended by

removing ‘‘$325.22’’ and adding, in its

place, ‘‘$344.78’’, and by removing

‘‘$162.61’’ and adding, in its place,

‘‘$172.39’’; paragraph (b)(2)(ii)(B) is

amended by removing ‘‘$10.84’’ and

adding, in its place, ‘‘$11.49’’, and by

removing ‘‘$5.42’’, and adding, in its

place, ‘‘$5.75’’; paragraph (b)(2)(ii)(C) is

amended by removing ‘‘increased’’ both

times it appears and adding, in its place,

‘‘decreased’’; paragraph (b)(3)(ii) is

amended by removing ‘‘1996–97’’ and

adding, in its place, ‘‘1997–98’’;

paragraph (b)(3)(ii)(A) is amended by

removing ‘‘$325.22’’ and adding, in its

place, ‘‘$344.78’’, and by removing

‘‘$162.61’’ and adding, in its place,

‘‘$172.39’’; paragraph (b)(3)(ii)(B) is

amended by removing ‘‘$10.84’’ and

adding, in its place ‘‘$11.49’’, and by

removing ‘‘$5.42’’ and adding, in its

place, ‘‘$5.75’’; and paragraph

(b)(3)(ii)(C) is amended by removing

‘‘increased’’ both times it appears and

adding, in its place, ‘‘decreased’’.

§ 21.5822 [Amended]

3. In § 21.5822, paragraph (b)(1)(i) is

amended by removing ‘‘$729’’ and

adding, in its place, ‘‘$773’’ and by

removing ‘‘1996–97’’ and adding in its

place, ‘‘1997–98’’; paragraph (b)(1)(ii) is

amended by removing ‘‘$364.50’’ and

adding, in its place, ‘‘$386.50’’ and by

removing ‘‘1996–97’’ and adding, in its

place, ‘‘1997–98’’; paragraph (b)(2)(i) is

amended by removing ‘‘1996–97’’ and

adding, in its place, ‘‘1997–98’’ and by

removing ‘‘$729’’ and adding, in its

place, ‘‘$773’’; and paragraph (b)(2)(ii) is

amended by removing ‘‘1996–97’’ and

adding, in its place, ‘‘1997–98’’ and by

removing ‘‘$364.50’’, and adding, in its

place, ‘‘$386.50’’.

[FR Doc. 97–31627 Filed 12–2–97; 8:45 am]

BILLING CODE 8320–01–P

DEPARTMENT OF VETERANS

AFFAIRS

38 CFR Part 21

RIN 2900–AH91

Veterans Education: Approval of

Correspondence Programs or Courses

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

SUMMARY: This document amends the

VA-administered educational assistance

and educational benefits regulations

concerning approval of programs of

education pursued exclusively by

correspondence and the correspondence

portion of correspondence-residence

courses for Department of Veterans

Affairs (VA) training. A number of

changes are made to conform to

statutory changes. The regulations are

also amended to require that the

educational institution offering a

correspondence program or course

certify to the State approving agency

(SAA) that at least 50 percent of those

pursuing the program or course require

six months or more to complete it based

on the six-month period immediately

preceding the educational institution’s

application for approval. The

certification is to enable the SAA to

determine whether the program or

course meets the statutory requirement

that at least 50 percent of those pursuing

the program or course require six

months or more to complete it. The

regulations are also amended to

expressly provide that the SAA may

periodically review the program or

course approvals already granted and

that this determination would be based
Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations 63849

on the records of the school for a twoyear period reasonably related to the

date on which such review is

conducted. These periods are

appropriate to determine compliance

with the statutory requirements.

Further, due to the deletion of the

statutory basis for its adoption, the

requirement that the program or course

must require not less than six hours

preparation per week over any 26-week

period is deleted, and related

requirements for SAAs are changed. In

addition, this document clarifies that

the provisions concerning enrollments

in the program or course apply not only

to eligible veterans, spouses, and

surviving spouses, but also to reservists.

Other changes are made for purposes of

clarity.

DATES: Effective Date: January 2, 1998.

FOR FURTHER INFORMATION CONTACT: June

C. Schaeffer, Assistant Director for

Policy and Program Administration,

Education Service, Veterans Benefits

Administration, 202–273–7187.

SUPPLEMENTARY INFORMATION: In a

document published in the Federal

Register on July 1, 1997 (62 FR 35464),

VA proposed to amend the

‘‘Administration of Educational

Assistance Programs’’ regulations which

are set forth in 38 CFR 21.4001 et seq.

It was proposed to amend the

regulations at §§ 21.4256 and 21.4279 to

reflect amended statutory provisions

contained in the Veterans’ Benefits

Improvement Act of 1994, Public Law

103–446. These provisions:

• Require that programs of education

offered exclusively by correspondence

or the correspondence portion of a

correspondence-residence course may

be approved for VA training only if they

are offered by an accredited educational

institution;

• Negate the prior regulatory

requirement providing that the normal

period required to complete a program

of education by correspondence or the

correspondence portion of a

combination correspondence-residence

course may not be less than six months;

and

• Impose a requirement that at least

50 percent of those pursuing the

program or course shall require six

months or more to complete it.

In addition to these statutory

requirements, VA proposed to:

• Require an SAA when reviewing an

application for a new correspondence

program or course approval to

determine whether it meets the course

completion requirements based on the

six-month period immediately

preceding the educational institution’s

application for approval;

• Permit SAAs to review periodically

correspondence program or course

approvals already granted to determine

whether the completion requirement

was met by examining a prior two-year

period reasonably related to the date on

which such review is conducted.

• Remove the regulatory requirement

that a correspondence program or

course must require at least six hours of

preparation per week over any 26-week

period;

• Require that correspondenceresidence courses would have to meet

the same course completion criteria as

correspondence programs, including the

time periods during which the SAA will

determine whether the course

completion criterion have been met; and

• Clarify that the provisions

concerning enrollments in

correspondence courses apply not only

to eligible veterans, spouses, and

surviving spouses, but also to reservists.

Interested persons were given 63 days

to submit comments. We received no

comments. Accordingly, based on the

rationale set forth in the proposed rule

document, we are adopting the

provisions of the proposed rule as a

final rule.

Paperwork Reduction Act of 1995

Information collection and

recordkeeping requirements associated

with this final rule (38 CFR

21.4256(a)(1), 21.4256(b)(3), and

21.4279) have been approved by OMB

under the provisions of the Paperwork

Reduction Act (44 U.S.C. 3501–3520)

and have been assigned OMB control

numbers 2900–0575 and 0576. These

regulations require that an educational

institution offering a program of

education by correspondence or the

correspondence portion of a

correspondence-residence course would

have to certify to the SAA that at least

50 percent of those pursuing the

program or course require six months or

more to complete it in order to have that

program or course approved for VA

training. There is no VA form to collect

this information; therefore, there is no

corresponding form number.

VA is not authorized to impose a

penalty on persons for failure to comply

with information collection

requirements which do not display a

current OMB control number, if

required.

Regulatory Flexibility Act

The Secretary of Veterans Affairs

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, 5 U.S.C. 601–612.

Although it is possible that small

entities could be among the educational

institutions affected by this rulemaking,

this final rule would have only a

minuscule effect on any educational

institution. Pursuant to 5 U.S.C. 605(b),

this final rule, therefore, is exempt from

the initial and final regulatory flexibility

analyses requirements of §§ 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 final rule will

also affect the Montgomery GI Bill—

Selected Reserve program, 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: October 30, 1997.

Hershel W. Gober,

Acting Secretary of Veterans Affairs.

For the reasons set out above, 38 CFR

part 21, subpart D, is amended as set

forth below.

PART 21—VOCATIONAL

REHABILITATION AND EDUCATION

Subpart D—Administration of

Educational Assistance Programs

1. 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.

2. Section 21.4256 is revised to read

as follows:

§ 21.4256 Correspondence programs and

courses.

(a) Approval of correspondence

programs and courses. (1) An

educational institution desiring to enroll

veterans under 38 U.S.C. chapter 30 or

32, spouses and/or surviving spouses

under 38 U.S.C. chapter 35, and/or

reservists under 10 U.S.C. chapter 1606

in a program of education to be pursued

exclusively by correspondence, or in the

correspondence portion of a

combination correspondence-residence
63850 Federal Register / Vol. 62, No. 232 / Wednesday, December 3, 1997 / Rules and Regulations

course, may have the program or course

approved only when the educational

institution meets the requirements of

§§ 21.4252(e), 21.4253, and 21.4279, as

applicable.

(The information collection requirements in

this section have been approved by the Office

of Management and Budget under control

number 2900–0575)

(Authority: 38 U.S.C. 3672(e))

(2) The application of an educational

institution for approval of a program of

education to be pursued exclusively by

correspondence or the correspondence

portion of a combined correspondenceresidence course must demonstrate that

the program or course is satisfactory in

all elements. The educational institution

must certify to the State approving

agency that at least 50 percent of those

pursuing the program or course require

six months or more to complete it. For

applications for approval that are

pending approval by the State

approving agency on February 2, 1995,

and for applications received by the

State approving agency after that date,

the required certification shall be based

on the experience of students who

completed the program or course during

the six-month period immediately

preceding the educational institution’s

application for approval.

(Authority: 38 U.S.C. 3672(e))

(3) State approving agencies have the

authority to review periodically the

length of time needed to complete each

approved correspondence program or

approved correspondence-residence

course in order to determine whether

the program or course should continue

to be approved. In implementing this

authority, a State approving agency will

examine the results over a prior twoyear period reasonably related to the

date on which such a review is

conducted.

(Authority: 38 U.S.C. 3672(e))

(b) Enrollment agreement. (1) An

educational institution offering a

program of education to be pursued

exclusively by correspondence must

enter into an enrollment agreement with

the veteran, spouse, surviving spouse, or

reservist who wishes to receive

educational assistance from VA while

pursuing the program. The enrollment

agreement shall disclose fully the

obligations of the institution and the

veteran, spouse, surviving spouse, or

reservist, and shall display in a

prominent place on the agreement the

conditions for affirmance, termination,

refund, and payment of the educational

assistance by VA.

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

3686(a)(1), 3686(b))

(2) A copy of the agreement shall be

given to the veteran, spouse, surviving

spouse, or reservist when it is signed.

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

3686(b))

(3) The agreement shall not be

effective unless the veteran, spouse,

surviving spouse, or reservist after the

expiration of 10 days after the

agreement is signed, shall have signed

and submitted to VA a written

statement, with a signed copy to the

institution, specifically affirming the

agreement.

(The information collection requirements in

this section have been approved by the Office

of Management and Budget under control

number 2900–0576)

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

3686(b))

(c) Mandatory refund policy. (1) Upon

notification of the educational

institution by the veteran, spouse,

surviving spouse, or reservist of an

intention not to affirm the enrollment

agreement, any fees paid by the

individual shall be returned promptly in

full to him or her.

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

3686(c))

(2) Upon termination of enrollment

under an affirmed enrollment agreement

for training in the accredited course by

the veteran, spouse, surviving spouse, or

reservist, without having completed any

lessons, a registration fee not in excess

of 10 percent of the tuition for the

course or $50, whichever is less, may be

charged him or her. When the

individual terminates the agreement

after completion of less than 25 percent

of the lessons of the course, the

institution may retain the registration

fee plus 25 percent of the tuition. When

the individual terminates the agreement

after completing 25 percent but less

than 50 percent of the lessons, the

institution may retain the registration

fee plus 50 percent of the tuition for the

course. If 50 percent or more of the

lessons are completed, no refund of

tuition is required.

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

3686(c))

(3) Where the school either has or

adopts an established policy for the

refund of the unused portion of tuition,

fees, and other charges subject to

proration, which is more favorable to

the veteran, spouse, surviving spouse, or

reservist than the pro rata basis as

provided in paragraph (b)(2) of this

section, such established policy will be

applicable.

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

3686(c))

(4) Any institution that fails to

forward any refund due to the veteran,

spouse, surviving spouse, or reservist

within 40 days after receipt of a notice

of termination or disaffirmance, shall be

deemed, prima facie, to have failed to

make a prompt refund as required by

this section.

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

3686(c))

3. In § 21.4279, paragraph (a)

introductory text and paragraph (a)(4)

are revised, and paragraph (a)(5) is

added, to read as follows:

§ 21.4279 Combination correspondenceresidence program.

(a) Requirements for pursuit. A

program of education may be pursued

partly in residence and partly by

correspondence for the attainment of a

predetermined and identified objective

under the following conditions:

* * * * *

(4) The educational institution

offering the course is accredited by an

agency recognized by the Secretary of

Education; and

(5) The State approving agency has

approved the correspondence-residence

course and has verified compliance with

the requirement of 38 U.S.C. 3672(e)

and § 21.4256(a) that at least 50 percent

of those pursuing the correspondenceresidence course require six months or

more to complete it.

(The information collection requirements in

this section have been approved by the Office

of Management and Budget under control

number 2900–0575.)

(Authority: 38 U.S.C. 3672(e))

* * * * *

[FR Doc. 97–31628 Filed 12–2–97; 8:45 am]

BILLING CODE 8320–01–P

POSTAL SERVICE

39 CFR Part 111

Domestic Mail Manual; Miscellaneous

Amendments

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This document describes the

numerous amendments consolidated in

the Transmittal Letter for Issue 53 of the

Domestic Mail Manual, which is

incorporated by reference in the Code of

Federal Regulations, see 39 CFR 111.1.

These amendments reflect changes in

mail preparation requirements and other

miscellaneous rules and regulations not

previously published in the Federal

Register.

EFFECTIVE DATE: January 1, 1998.