[Federal Register Volume 61, Number 94 (Tuesday, May 14, 1996)]
[Rules and Regulations]
[Pages 24237-24239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11970]



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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 21

RIN 2900-AH79


Veterans Education: Increase in Rates Payable Under the 
Montgomery GI Bill--Active Duty, 1995-96

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: By statute, the monthly rates of basic educational assistance 
payable to veterans and servicemembers under the Montgomery GI Bill--
Active Duty must be adjusted each fiscal year. In accordance with the 
statutory formula, the regulations governing rates of basic educational 
assistance payable under the Montgomery GI Bill--Active Duty for fiscal 
year 1996 (October 1, 1995 through September 30, 1996) are changed to 
show a 2.9% increase in these rates.

EFFECTIVE DATE: October 1, 1995.

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

SUPPLEMENTARY INFORMATION: Under the formula mandated by 38 U.S.C. 
3015(g) for fiscal year 1996, the rates of basic educational assistance 
under the Montgomery GI Bill--Active Duty payable to students pursuing 
a program of education full time must be increased by the percentage 
that the total of the monthly Consumer Price Index-W for July 1, 1994, 
through June 30, 1995, exceeds the total of the monthly Consumer Price 
Index-W for July 1, 1993, through June 30, 1994. Under this formula, 
the changes to the regulations governing monthly rates reflect a 2.9% 
increase.
    It should be noted that some veterans will receive an increase in 
monthly payments that will be less than 2.9%. The increase does not 
apply to additional amounts payable by the Secretary of Defense to 
individuals with skills or a specialty in which there is a critical 
shortage of personnel (so-called ``kickers''). It does not apply to 
supplemental educational assistance. It also does not apply to amounts 
payable for dependents. Veterans who previously had eligibility under 
the Vietnam Era GI Bill receive monthly payments that are in part based 
upon basic educational assistance and in part based upon the rates 
payable under the Vietnam Era GI Bill. Only that portion attributable 
to basic educational assistance is increased by 2.9%.
    Although 38 U.S.C. 3015(g) requires only that the full-time rates 
be increased, these revisions include increases for other training 
also. Monthly rates payable to veterans in apprenticeship or other on-
job training or cooperative training are set by statute at a given 
percentage of the full-time rate. Hence, any rise in the full-time rate 
automatically requires an increase in the rates for these types of 
training.
    38 U.S.C. 3015 (a) and (b) require that the Department of Veterans 
Affairs (VA) pay part-time students at appropriately reduced rates. 
Since the first student became eligible for assistance under the 
Montgomery GI Bill--Active Duty in 1985, VA has paid three-quarter-time 
students and one-half-time students at 75% and 50% of the full-time 
rate, respectively. Students pursuing a program of education at less 
than one half but more than one-quarter-time have had their payments 
limited to 50% or less of the full-time rate. Similarly, students 
pursuing a program of education at one-quarter-time or less have had 
their payments limited to 25% or less of the full-time rate. Changes 
are made consistent with the authority and formula described in this 
paragraph.
    The changes set forth in this final rule are applied retroactively 
from the effective date of the statutory changes.
    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.
    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, 5 U.S.C. 601-612. This final rule directly affects 
only individuals and does not directly affect small entities. 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.

    The Catalog of Federal Domestic Assistance number for the 
program affected by this final 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, Entitlement programs--education, 
Entitlement 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: May 1, 1996.
Jesse Brown,
Secretary of Veterans Affairs.

    For the reasons set out in the preamble, 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 (New 
GI Bill)

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

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

    2. In Sec. 21.7136, paragraph (b)(3) is amended by removing 
``$323.90'' and adding, in its place, ``$333.30'' and by removing 
``1994, and before October 1, 1995'' and adding, in its place, ``1995, 
and before October 1, 1996''; paragraph (c)(3) is amended by removing 
``$263.18'' and adding, in its place, ``$270.81'' and by removing 
``1994, and before October 1, 1995'' and adding, in its place, ``1995, 
and before October 1, 1996''; and paragraphs (b)(1), (b)(2), (c)(1), 
and (c)(2) are revised, to read as follows:


Sec. 21.7136  Rates of payment of basic educational assistance.

* * * * *
    (b) Rates. (1) Except as provided in paragraphs (b)(2), (b)(3), and 
(d) of this section, the monthly rate of basic educational assistance 
payable for training that occurs after September 30,

[[Page 24238]]

1995, and before October 1, 1996, to a veteran whose service is 
described in paragraph (a) of this section is the rate stated in the 
following table.

------------------------------------------------------------------------
                                                                 Monthly
                           Training                               rate  
------------------------------------------------------------------------
Full time.....................................................   $416.62
\3/4\ time....................................................    312.46
\1/2\ time....................................................    208.31
Less than \1/2\ but more than \1/4\ time......................    208.31
\1/4\ time or less............................................    104.15
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015)

    (2) If a veteran's service is described in paragraph (a) of this 
section, the monthly rate payable to the veteran for pursuit of an 
apprenticeship or other on-job training that occurs after September 30, 
1995, and before October 1, 1996, is the rate stated in the following 
table.

------------------------------------------------------------------------
                                                                 Monthly
                        Training period                           rate  
------------------------------------------------------------------------
First six months of pursuit of program........................   $312.46
Second six months of pursuit of program.......................    229.14
Remaining pursuit of program..................................    145.82
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))
* * * * *
    (c) * * *
    (1) Except as provided in paragraphs (c)(2), (c)(3), and (d) of 
this section, the monthly rate of basic educational assistance payable 
to a veteran for training that occurs after September 30, 1995, and 
before October 1, 1996, is the rate stated in the following table.

------------------------------------------------------------------------
                                                                 Monthly
                           Training                               rate  
------------------------------------------------------------------------
Full time.....................................................   $338.51
\3/4\ time....................................................    253.88
\1/2\ time....................................................    169.25
Less than \1/2\ but more than \1/4\ time......................    169.25
\1/4\ time or less............................................     84.62
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))

    (2) The monthly rate of educational assistance payable to a veteran 
for pursuit of an apprenticeship or other on-job training that occurs 
after September 30, 1995, and before October 1, 1996, is the rate 
stated in the following table.

------------------------------------------------------------------------
                                                                 Monthly
                        Training period                           rate  
------------------------------------------------------------------------
First six months of pursuit of program........................   $253.88
Second six months of pursuit of program.......................    186.18
Remaining pursuit of program..................................    118.48
------------------------------------------------------------------------

(Authority: 38 U.S.C. 3015, 3032(c))
* * * * *
    3. In Sec. 21.7137, paragraph (c)(2) introductory text is amended 
by removing ``1994, and before October 1, 1995'' and adding, in its 
place, ``1995, and before October 1, 1996''; paragraph (c)(2)(i) is 
amended by removing ``$592.88'' and adding, in its place, ``$604.62''; 
paragraph (c)(2)(ii) is amended by removing ``$445.16'' and adding, in 
its place, ``$453.96''; paragraph (c)(2)(iii) is amended by removing 
``$296.44'' and adding, in its place, ``$302.31''; paragraph (c)(2)(iv) 
is amended by removing ``$148.22'' and adding, in its place, 
``$151.15''; and paragraphs (a)(1) and (a)(2) are revised, to read as 
follows:


Sec. 21.7137  Rates of payment of basic educational assistance for 
individuals with remaining entitlement under 38 U.S.C. ch. 34.

    (a) Minimum rates. * * *
    (1) Except as provided in paragraphs (a)(2), (b), and (c) of this 
section, the monthly rate of basic educational assistance for training 
that occurs after September 30, 1995, and before October 1, 1996, is 
the rate stated in the following table.

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate                   
                                                             ---------------------------------------------------
                                                                                                      Additional
                          Training                                 No          One          Two        for each 
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent 
----------------------------------------------------------------------------------------------------------------
Full time...................................................      $604.62      $640.62      $671.62       $16.00
3/4 time....................................................       453.96       480.46       503.96        12.00
1/2 time....................................................       302.31       320.31       335.81         8.50
Less than 1/2 but more than 1/4 time........................                                                    
(3) 302.31                                                                                                      
1/4 time....................................................                                                    
(3) 151.15                                                                                                      
Cooperative.................................................       454.90       475.30       494.90         9.20
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(Authority: 38 U.S.C. 3015(c), (f), (g))

    (2) For veterans pursuing an apprenticeship or other on-job 
training, the monthly rate of basic educational assistance for training 
that occurs after September 30, 1995, and before October 1, 1996, is 
the rate stated in the following table.

----------------------------------------------------------------------------------------------------------------
                                                                                 Monthly rate                   
                                                             ---------------------------------------------------
                                                                                                      Additional
                       Training period                             No          One          Two        for each 
                                                               dependents   dependent    dependents   additional
                                                                                                      dependent 
----------------------------------------------------------------------------------------------------------------
1st 6 months of pursuit of program..........................      $415.21      $427.59      $438.46        $5.25
2nd 6 months of pursuit of program..........................       285.52       294.87       302.57         3.85
3rd 6 months of pursuit of program..........................       169.62       175.74       180.47         2.45
Remaining pursuit of program................................       157.72       163.49       168.74         2.45
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[[Page 24239]]



(Authority: 38 U.S.C. 3015(d), (f), (g))
* * * * *
[FR Doc. 96-11970 Filed 5-13-96; 8:45 am]
BILLING CODE 8320-01-P