Source: https://www.federalregister.gov/documents/2003/06/09/03-14282/increase-in-rates-payable-under-the-montgomery-gi-bill-active-duty-and-survivors-and-dependents
Timestamp: 2018-03-19 22:49:58
Document Index: 96091403

Matched Legal Cases: ['art 21', '§\u200921', '§\u200921', '§\u200921', 'art 21', '§\u200921', '§\u200921', '§\u200921', '§\u200921', '§\u200921', '§\u200921', '§\u200921', '§\u200921', '§\u200921']

Federal Register :: Increase in Rates Payable Under the Montgomery GI Bill-Active Duty and Survivors' and Dependents' Educational Assistance Program
Increase in Rates Payable Under the Montgomery GI Bill-Active Duty and Survivors' and Dependents' Educational Assistance Program
68 FR 34319
34319-34326 (8 pages)
2900-AL17
03-14282
https://www.federalregister.gov/d/03-14282 https://www.federalregister.gov/d/03-14282
This document amends the regulations governing rates of educational assistance payable under the Montgomery GI Bill—Active Duty and Survivors' and Dependents' Educational Assistance programs to reflect increases required by statutory provisions. These include increases that were effective October 1, 2001, and January 1, 2002, in both programs. For the Montgomery GI Bill—Active Duty program, these also include increases for the fiscal years beginning October 1, 2002, and October 1, 2003, under statutory provisions setting rates that for those two years are not to be adjusted by the Consumer Price Index-W.
Lynn M. Cossette, Education Advisor, Education Service, Veterans Benefit Administration, (202) 273-7294.
Under the formula mandated by 38 U.S.C. 3015 (as in effect on October 1, 2001) for Fiscal Year 2002, the rates of basic educational assistance under the Montgomery GI Bill—Active Duty (MGIB) payable to students pursuing a program of education full time were increased effective October 1, 2001, by 3.4%, which is the percentage by which the total of the monthly Consumer Price Index-W (CPI-W) for July 1, 2000, through June 30, 2001, exceeds the total of the monthly CPI-W for July 1, 1999, through June 30, 2000.
In addition, the Veterans Education and Benefits Expansion Act of 2001 (Pub. L. 107-103) increased the monthly rate of MGIB benefits in three steps. The effective date of step one is January 1, 2002. Step two is effective October 1, 2002, for Fiscal Year 2003 and step three is effective October 1, 2003, for Fiscal Year 2004. During Fiscal Years 2003 and 2004, the MGIB rates are not Start Printed Page 34320adjusted by the CPI-W, since this statute removes the authority to adjust by the CPI-W for those two years. CPI-W adjustments will resume October 1, 2004, with the beginning of Fiscal Year 2005. We are changing the regulations governing rates payable under the MGIB to reflect the increase effective October 1, 2001, attributable to the CPI-W and the step increases provided for in Pub. L. 107-103.
It should be noted that these MGIB increases do not affect all educational assistance payable under the MGIB. The increases don't 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”). They don't apply to amounts payable for dependents. Veterans who previously had eligibility under the Veterans' Educational Assistance program (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.
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 MGIB in 1985, VA has paid three-quarter-time students and one-half-time students at 75% and 50% of the full-time institutional 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 institutional 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 institutional rate. Changes are made consistent with the authority and formula described in this paragraph.
In addition, 38 U.S.C. 3032(c) requires that monthly rates payable to veterans in apprenticeship or other on-the-job training must be set at a given percentage of the full-time rate. Hence, we are changing those regulations to reflect increases effective October 1, 2001, January 1, 2002, October 1, 2002, and October 1, 2003, in accordance with the increase attributable to the CPI-W and the applicable provisions of Pub. L. 107-103.
By statute, the monthly rates of basic educational assistance payable under the Survivors' and Dependents' Educational Assistance (DEA) program must be adjusted each fiscal year. In accordance with the statutory formula, the regulations governing rates of educational assistance payable under the DEA program for Fiscal Year 2002 (October 1, 2001, through September 30, 2002) are changed to show a 3.4% increase in these rates. The 3.4% increase is based on the percentage by which the total of the monthly CPI-W for July 1, 2000, through June 30, 2001, exceeds the total of the monthly CPI-W for July 1, 1999, through June 30, 2000.
Pub. L. 107-103 further increased the DEA program rates for the months during Fiscal Year 2002 that follow December 2001. That Act provides that beginning on January 1, 2002, the rates of basic educational assistance under the DEA program must be increased beyond the increase that went into effect on October 1, 2001. Changes are made to the regulations governing rates payable under the DEA program to reflect both rate increases.
The changes set forth in this final rule are effective from the date of publication, but the changes in the rates are applied in accordance with the applicable statutory provisions discussed above.
The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that agencies prepare an assessment of anticipated costs and benefits before developing any rule that may result in an expenditure by State, local, or tribal governments, in the aggregate, or by the private sector, of $100 million or more in any given year. This rule will have no consequential effect on State, local or tribal governments.
The Catalog of Federal Domestic Assistance numbers for the programs affected by this final rule are 64.117 and 64.124.
Approved: March 7, 2003.
For the reasons set out above, 38 CFR part 21 (subparts C and K) is amended as follows:
(h) Entitlement charge for correspondence courses. The charge against entitlement of a spouse or surviving spouse for pursuit of a course Start Printed Page 34321exclusively by correspondence will be 1 month for each of the following amounts paid as an educational assistance allowance:
(1) $588 paid after October 31, 2000, and before October 1, 2001;
(2) $608 paid after September 30, 2001, and before January 1, 2002; and
(3) $670 paid after December 31, 2001.
(Authority: 38 U.S.C. 3534(b), 3564, 3686(a)).
3. Section 21.3131 is amended by:
a. Revising paragraph (a)
b. Redesignating paragraphs (b), (c), and (d) as paragraphs (c), (d), and (e), respectively.
(a) Rates. Except as provided in § 21.3132, educational assistance allowance is payable at the following rates for pursuit of education or training that occurs after September 30, 2001, and before January 1, 2002:
Full time $608.00
3/4 time 456.00
1/2 time 304.00
Less than 1/2 but more than 1/4 time 1 304.00
1/4 time or less 1 152.00
Cooperative training (other than farm cooperative) (Full time only)
Apprenticeship or on-the-job (full time only) 2: 608.00
First six months 443.00
Second six months 331.00
Third six months 219.00
Fourth six months and thereafter 111.00
Full time 491.00
3/4 time 368.00
1/2 time 246.00
Correspondence 55 percent of the established charge for the number of lessons completed by the eligible spouse or surviving spouse and serviced by the school—Allowance paid quarterly 3
1 If an eligible person under 38 U.S.C. chapter 35 pursuing independent study on a less than one-half-time basis completes his or her program before the designated completion time, his or her award will be recomputed to permit payment of tuition and fees not to exceed $304.00 or $152.00, as appropriate, per month, if the maximum allowance is not initially authorized.
(b) Rates. Except as provided in § 21.3132, educational assistance allowance is payable at the following rates for pursuit of education or training that occurs after December 31, 2001, and before October 1, 2002:
Full time $670.00
3/4 time 503.00
1/2 time 335.00
Less than 1/2 but more than 1/4 time 1 335.00
1/4 time or less 1 167.50
First six months 488.00
Second six months 365.00
Third six months 242.00
Fourth six months and thereafter 122.00
Full time 541.00
3/4 time 406.00
1/2 time 271.00
1 If an eligible person under 38 U.S.C. chapter 35 pursuing independent study on a less than one-half-time basis completes his or her program before the designated completion time, his or her award will be recomputed to permit payment of tuition and fees not to exceed $335.00 or $167.50, as appropriate, per month, if the maximum allowance is not initially authorized. Start Printed Page 34322
4. In § 21.3300, paragraph (c) is revised to read as follows:
(1) $190.00 a month for the period beginning October 1, 2001, and ending December 31, 2001;
(2) $210.00 a month for months after December 31, 2001.
5. Section 21.3333 is amended by:
b. In paragraph (b)(1), removing “Effective November 1, 2000”; removing “$19.60” and adding, in its place, “$20.28”; and removing “$588” and adding, in its place, “$608.00 for the period October 1, 2001, through December 31, 2001, and for each $22.33 that the special training allowance exceeds the basic monthly rate of $670.00 for months beginning January 1, 2002”.
(a) Rates. Special training allowance is payable at the following monthly rates, except as provided in paragraph (c) of this section.
(1) For special restorative training that occurs after September 30, 2001, and before January 1, 2002.
Special restorative training $608.00 If costs for tuition and fees average in excess of $190.00 per month, rate may be increased by such amount in excess of $190.00.
(2) For special restorative training that occurs after December 31, 2002:
Special restorative training $670.00 If costs for tuition and fees average in excess of $210.00 per month, rate may be increased by such amount in excess of $210.00.
6. The authority citation for part 21, subpart K, continues to read as follows:
a. Revising paragraphs (b) and (c)(1) through (c)(5).
b. Adding paragraphs (c)(6) through (c)(9).
(b) Rates. (1) Except as elsewhere provided in this section or in § 21.7139, the monthly rate of basic educational assistance payable for training that occurs after September 30, 2001, and before January 1, 2002, to a veteran whose service is described in paragraph (a) of this section is the rate stated in the following table:
Full time $672.00
3/4 time 504.00
1/2 time 336.00
Less than 1/2 time but more than 1/4 time 336.00
1/4 time 168.00
(2) Except as elsewhere provided in this section or in § 21.7139, the monthly rate of basic educational assistance payable for training that occurs after December 31, 2001, and before October 1, 2002, to a veteran whose service is described in paragraph (a) of this section is the rate stated in the following table:
Full time $800.00
3/4 time 600.00
1/2 time 400.00
Less than 1/2 but more than 1/4 time 400.00
1/4 time or less 200.00
(3) Except as elsewhere provided in this section or in § 21.7139, the monthly rate of basic educational assistance payable for training that occurs after September 30, 2002, and before October 1, 2003, to a veteran whose service is described in paragraph (a) of this section is the rate stated in the following table:
Full time $900.00
3/4 time 675.00
1/2 time 450.00
Less than 1/2 but more than 1/4 time 450.00
1/4 time or less 225.00
(Authority: 38 U.S.C. 3015) Start Printed Page 34323
(4) Except as elsewhere provided in this section or in § 21.7139, the monthly rate of basic educational assistance payable for training that occurs after September 30, 2003, and before October 1, 2004, to a veteran whose service is described in paragraph (a) of this section is the rate stated in the following table:
Full time $985.00
3/4 time 738.75
1/2 time 492.50
Less than 1/2 but more than 1/4 time 492.50
1/4 time or less 246.25
(5) If a veteran's service is described in paragraph (a) of this section, the monthly rate of basic educational assistance payable to the veteran for pursuit of apprenticeship or other on-the-job training that occurs after September 30, 2001, and before January 1, 2002, is the rate stated in the following table:
First six months of training $504.00
Second six months of training 369.60
Remaining pursuit of training 235.20
(6) If a veteran's service is described in paragraph (a) of this section, the monthly rate of basic educational assistance payable to the veteran for pursuit of apprenticeship or other on-the-job training that occurs after December 31, 2001, and before October 1, 2002, is the rate stated in the following table:
First six months of training $600.00
Second six months of training 440.00
Remaining pursuit of training 280.00
(7) If a veteran's service is described in paragraph (a) of this section, the monthly rate of basic educational assistance payable to the veteran for pursuit of apprenticeship or other on-the-job training that occurs after September 30, 2002, and before October 1, 2003, is the rate stated in the following table:
First six months of training $675.00
Second six months of training 495.00
Remaining pursuit of training 315.00
(8) If a veteran's service is described in paragraph (a) of this section, the monthly rate of basic educational assistance payable to the veteran for pursuit of apprenticeship or other on-the-job training that occurs after September 30, 2003, and before October 1, 2004, is the rate stated in the following table:
First six months of training $738.75
Second six months of training 541.75
Remaining pursuit of training 344.75
(9) If a veteran's service is described in paragraph (a) of this section, the monthly rate of basic educational assistance payable to the veteran for pursuit of a cooperative course is:
(i) $672.00 for training that occurs after September 30, 2001, and before January 1, 2002;
(ii) $800.00 for training that occurs after December 31, 2001, and before
(iii) $900.00 for training that occurs after September 30, 2002, and before October 1, 2003; and
(iv) $985.00 for training that occurs after September 30, 2003, and before
(1) Except as elsewhere provided in this section or in § 21.7139, the monthly rate of basic educational assistance payable to a veteran for training that occurs after September 30, 2001, and before January 1, 2002, is the rate stated in the following table:
Full time $546.00
3/4 time 409.50
1/2 time 273.00
Less than 1/2 but more than 1/4 time 273.00
1/4 time or less 136.50
(2) Except as elsewhere provided in this section or in § 21.7139, the monthly rate of basic educational assistance payable to a veteran for training that occurs after December 31, 2001, and before October 1, 2002, is the rate stated in the following table:
Full time $650.00
3/4 time 487.50
Less than 1/2 but more than 1/4 time 325.00
1/4 time or less 162.50
(3) Except as elsewhere provided in this section or in § 21.7139, the monthly rate of basic educational assistance payable to a veteran for training that occurs after September 30, 2002, and before October 1, 2003, is the rate stated in the following table:
Full time $732.00
3/4 time 549.00
1/2 time 366.00
Less than 1/2 but more than 1/4 time 366.00
1/4 time or less 183.00
(4) Except as elsewhere provided in this section or in § 21.7139, the monthly rate of basic educational assistance payable to a veteran for training that occurs after September 30, 2003, and before October 1, 2004, is the rate stated in the following table:
(5) The monthly rate of basic educational assistance payable to a veteran for pursuit of apprenticeship or other on-the-job training that occurs after September 30, 2001, and before January 1, 2002, is the rate stated in the following table:
First six months of training $409.50
Second six months of training 300.30
Remaining pursuit of training 191.10
(Authority: 38 U.S.C. 3015, 3032(c)) Start Printed Page 34324
(6) The monthly rate of basic educational assistance payable to a veteran for pursuit of apprenticeship or other on-the-job training that occurs after December 31, 2001, and before October 1, 2002, is the rate stated in the following table:
First six months of training $487.50
Second six months of training 357.50
Remaining pursuit of training 227.50
(7) The monthly rate of basic educational assistance payable to a veteran for pursuit of apprenticeship or other on-the-job training that occurs after September 30, 2002, and before October 1, 2003, is the rate stated in the following table:
First six months of training $549.00
Second six months of training 402.00
Remaining pursuit of training 256.20
(8) The monthly rate of basic educational assistance payable to a veteran for pursuit of apprenticeship or other on-the-job training that occurs after September 30, 2003, and before October 1, 2004, is the rate stated in the following table:
(9) The monthly rate of basic educational assistance payable to a veteran for pursuit of a cooperative course is:
(i) $546.00 for training that occurs after September 30, 2001, and before January 1, 2002;
(ii) $650.00 for training that occurs after December 31, 2001, and before October 1, 2002;
(iii) $732.00 for training that occurs after September 30, 2002, and before October 1, 2003; and
(iv) $800.00 for training that occurs after September 30, 2003, and before October 1, 2004.
8. In § 21.7137, the section heading and paragraphs (a) and (c)(2) are revised to read as follows:
(a) Minimum rates. (1) Except as elsewhere provided in this section, the monthly rate of basic educational assistance for training that occurs after September 30, 2001, and before January 1, 2002, is the rate stated in the following table:
Full time $860.00 $896.00 $927.00 $16.00
3/4 time 645.50 672.00 695.50 12.00
1/2 time 430.00 448.00 463.50 8.50
Less than 1/2 but more than 1/4 time 430.00 430.00 430.00 0
1/4 time or less 215.00 215.00 215.00 0
(2) Except as elsewhere provided in this section, the monthly rate of basic educational assistance for training that occurs after December 31, 2001, and before October 1, 2002, is the rate stated in the following table:
Full time $988.00 $1024.00 $1055.00 $16.00
3/4 time 741.50 768.00 791.50 12.00
1/2 time 494.00 512.00 527.50 8.50
Less than 1/2 but more than 1/4 time 494.00 494.00 494.00 0
1/4 time or less 247.00 247.00 247.00 0
(3) Except as elsewhere provided in this section, the monthly rate of basic educational assistance for training that occurs after September 30, 2002, and before October 1, 2003, is the rate stated in the following table: Start Printed Page 34325
Full time $1088.00 $1124.00 $1155.00 $16.00
3/4 time 816.50 843.00 866.50 12.00
1/2 time 544.00 562.00 577.50 8.50
Less than 1/2 but more than 1/4 time 544.00 544.00 544.00 0
1/4 time or less 272.00 272.00 272.00 0
(4) Except as elsewhere provided in this section, the monthly rate of basic educational assistance for training that occurs after September 30, 2003, and before October 1, 2004, is the rate stated in the following table:
Full time $1173.00 $1209.00 $1240.00 $16.00
3/4 time 880.25 906.75 930.25 12.00
1/2 time 586.50 604.50 620.00 8.50
Less than 1/2 but more than 1/4 time 586.50 586.50 586.50 0
1/4 time or less 293.25 293.25 293.25 0
(5) For veterans pursuing apprenticeship or other on-the-job training, the monthly rate of basic educational assistance for training that occurs after September 30, 2001, and before January 1, 2002, is the rate stated in the following table:
1st six months of pursuit of program $606.75 $619.13 $630.00 $5.25
2nd six months of pursuit of program 425.98 435.33 443.03 3.85
3rd six months of pursuit of program 259.00 265.13 269.85 2.45
Remaining pursuit of program 247.10 252.88 258.13 2.45
(6) For veterans pursuing apprenticeship or other on-the-job training, the monthly rate of basic educational assistance for training that occurs after December 31, 2001, and before October 1, 2002, is the rate stated in the following table:
1st six months of pursuit of program $702.75 $715.13 $726.00 $5.25
2nd six months of pursuit of program 496.38 505.73 513.43 3.85
3rd six months of pursuit of program 303.80 309.93 314.65 2.45
Remaining pursuit of program 291.90 297.68 302.93 2.45
(7) For veterans pursuing apprenticeship or other on-the-job training, the monthly rate of basic educational assistance for training that occurs after September 30, 2002, and before October 1, 2003, is the rate stated in the following table: Start Printed Page 34326
1st six months of pursuit of program $777.75 $790.13 $801.00 $5.25
2nd six months of pursuit of program 551.38 560.73 568.43 3.85
3rd six months of pursuit of program 338.80 344.93 349.65 2.45
Remaining pursuit of program 326.90 332.68 337.93 2.45
(8) For veterans pursuing apprenticeship or other on-the-job training, the monthly rate of basic educational assistance for training that occurs after September 30, 2003, and before October 1, 2004, is the rate stated in the following table:
1st six months of pursuit of program $841.50 $853.88 $864.75 $5.25
2nd six months of pursuit of program 598.13 607.48 615.18 3.85
3rd six months of pursuit of program 368.55 374.68 379.40 2.45
Remaining pursuit of program 356.65 362.43 367.68 2.45
(9) The monthly rate of basic educational assistance payable to a veteran who is pursuing a cooperative course is the rate stated in the following table:
Oct. 1, 2001-Dec. 31, 2001 $860.00 $896.00 $927.00 $16.00
Jan. 1, 2002-Sept. 30, 2002 988.00 1024.00 1055.00 16.00
Oct. 1, 2002-Sept. 30, 2003 1088.00 1124.00 1155.00 16.00
Oct. 1, 2003-Sept. 30, 2004 1173.00 1209.00 1240.00 16.00
(2)(i) The following monthly rates for training that occurs after September 30, 2001, and before January 1, 2002—
(A) $860.00 for full-time training;
(B) $645.50 for three-quarter-time training;
(C) $430.00 for one-half-time training and training that is less than one-half but more than one-quarter-time training; and
(D) $215.00 for one-quarter-time training.
(ii) The following monthly rates for training that occurs after December 30, 2001, and before October 1, 2002—
(A) $988.00 for full-time training;
(B) $741.50 for three-quarter-time training;
(C) $494.00 for one-half-time training and training that is less than one-half but more than one-quarter-time training; and
(D) $247.00 for one-quarter-time training.
(iii) The following monthly rates for training that occurs after September 30, 2002, and before October 1, 2003—
(A) $1088.00 for full-time training;
(B) $816.50 for three-quarter-time training;
(C) $544.00 for one-half-time training and training that is less than one-half but more than one-quarter-time training; and
(D) $272.00 for one-quarter-time training.
(iv) The following monthly rates for training that occurs after September 30, 2003, and before October 1, 2004—
(A) $1173.00 for full-time training;
(B) $880.25 for three-quarter-time training;
(C) $586.50 for one-half-time training and training that is less than one-half but more than one-quarter-time training; and
(D) $293.25 for one-quarter-time training.
[FR Doc. 03-14282 Filed 6-6-03; 8:45 am]