[Federal Register Volume 61, Number 110 (Thursday, June 6, 1996)]
[Rules and Regulations]
[Pages 28753-28755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-14201]



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DEPARTMENT OF DEFENSE

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 21

RIN 2900-AH78


Veterans Education: Increased Allowances for the Educational 
Assistance Test Program

AGENCY: Department of Defense and Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The law provides that rates of subsistence allowance and 
educational assistance payable under the Educational Assistance Test 
Program shall be adjusted annually by the Secretary of Defense based 
upon the average actual cost of attendance at public institutions of 
higher education in the twelve-month period since the

[[Page 28754]]

rates were last adjusted. After consultation with the Department of 
Education, the Department of Defense has concluded that the rates for 
the 1995-96 academic year should be increased by 6% over the rates 
payable for the 1994-95 academic year. The regulations dealing with 
these rates are amended accordingly.

EFFECTIVE DATE: June 6, 1996.

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 1994-95 academic year. Accordingly, this revision changes 38 
CFR 21.5820 and 21.5822 to reflect a 6% increase in the rates payable 
in the 1995-96 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, if promulgated, 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

    Civil rights, Claims, Education, Grant programs-education, Loan 
programs-education, Reporting and record keeping requirements, Schools, 
Veterans, Vocational education, Vocational rehabilitation.

    Approved: April 29, 1996.
Jesse Brown,
Secretary of Veterans Affairs.

    Approved: May 30, 1996.
Samuel E. Ebbesen,
Lieutenant General, USA, Deputy Assistant Secretary, (Military 
Personnel Policy) Department of Defense.

    For the reasons set out in the preamble, 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. ch. 107, Pub. L. 96-342.

    2. In Sec. 21.5820, paragraph (b) is revised, to read as follows:


Sec. 21.5820  Educational assistance.

* * * * *
    (b) Amount of educational assistance. (1) The amount of educational 
assistance shall be adjusted annually by regulation. For the 1995-96 
standard academic year the amount of this assistance may not exceed 
$2,761.
    (2) The amount of educational assistance payable to a 
servicemember, veteran, spouse or dependent child of a living 
servicemember or veteran for an enrollment period shall be the lesser 
of the following:
    (i) The total charges for educational expenses the eligible 
individual incurs during the enrollment period, or
    (ii) For the 1995-96 standard academic year an amount determined 
by:
    (A) Multiplying the number of whole months in the enrollment period 
by $306.78 for a full-time student or by $153.39 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$10.23 for a full-time student or by $5.11 for a part-time student; and
    (C) Adding the two results. If the enrollment period is as long or 
longer than a standard academic year, this amount will be decreased by 
2 cents for a full-time student and decreased by 1 cents for a part-
time student.
    (3) The amount of educational assistance payable to each surviving 
spouse or dependent child of a deceased servicemember or veteran for an 
enrollment period shall be the lesser of the following:
    (i) The total charges for educational expenses the eligible 
individual incurs during the enrollment period, or
    (ii) For the 1995-96 standard academic year an amount determined 
by:
    (A) Multiplying the number of whole months in the enrollment period 
by $306.78 for a full-time student or by $153.39 for a part-time 
student;
    (B) Multiplying any additional days in the enrollment period by 
$10.23 for a full-time student or by $5.11 for a part-time student; and
    (C) Adding the two results. If the enrollment period is as long or 
longer than a standard academic year, this amount will be decreased by 
2 cents for a full-time student and decreased by 1 cents for a part-
time student; and
    (D) Dividing the amount determined in paragraph (b)(3)(ii)(C) of 
this section by the number of the deceased veteran's dependents 
receiving educational assistance for that enrollment period. If one or 
more dependents is receiving educational assistance for part of the 
enrollment period, the amount calculated in paragraph (b)(3)(ii)(C) 
will be prorated on a daily basis. The amount for each day when more 
than one dependent is receiving educational assistance will be divided 
by the number of dependents receiving educational assistance on that 
day. The total amount for the days when only one dependent is receiving 
educational assistance will not be divided.
* * * * *
    3. In Sec. 21.5822, paragraphs (b)(1)(i), (b)(1)(ii), (b)(2)(i), 
and (b)(2)(ii) are revised, to read as follows:


Sec. 21.5822  Subsistence allowance.

* * * * *
    (b) Amount of subsistence allowance. (1) * * *
    (i) If a person is pursuing a course of instruction on a full-time 
basis, his or her subsistence allowance is $688 per month for training 
pursued during the 1995-96 academic year,
    (ii) If a person is pursuing a course of instruction on other than 
a full-time basis, his or her subsistence allowance

[[Page 28755]]

is $344 per month for training pursued during the 1995-96 academic 
year,
* * * * *
    (2) * * *
    (i) VA shall determine the monthly rate of subsistence allowance 
payable to a person for a day during which he or she is pursuing a 
course of instruction full-time during the 1995-96 academic year by 
dividing $688 per month by the number of the deceased veteran's 
dependents pursuing a course of instruction on that day:
    (ii) VA shall determine the monthly rate of subsistence allowance 
payable to a person for a day during which he or she is pursuing a 
course of instruction on other than a full-time basis during the 1995-
96 academic year by dividing $344 per month by the number of the 
deceased veteran's dependents pursuing a course of instruction on that 
day;
* * * * *
[FR Doc. 96-14201 Filed 6-5-96; 8:45 am]
BILLING CODE 8320-01-P