Source: https://www.federalregister.gov/documents/2008/12/30/E8-31033/increase-in-rates-payable-under-the-survivors-and-dependents-educational-assistance-program-and
Timestamp: 2017-09-20 17:02:23
Document Index: 282905457

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

Federal Register :: Increase in Rates Payable Under the Survivors' and Dependents' Educational Assistance Program and Other Miscellaneous Issues
Increase in Rates Payable Under the Survivors' and Dependents' Educational Assistance Program and Other Miscellaneous Issues
A Rule by the Veterans Affairs Department on 12/30/2008
73 FR 79645
79645-79652 (8 pages)
2900-AM67
E8-31033
I. Increase in Monthly Rates Payable Under the Survivors' and Dependents' Educational Assistance Program
II. Modification of the Formula Used To Calculate Entitlement Charge for Eligible Persons Pursuing Apprenticeship or Other On-Job Training
III. Other Nonsubstantive Changes
IV. Applicability Dates To Conform to Statutory Requirements
Chapter I—Department of Veterans Affairs
https://www.federalregister.gov/d/E8-31033 https://www.federalregister.gov/d/E8-31033
This document amends Department of Veterans Affairs (VA) regulations to reflect increases effective for fiscal years 2005, 2006, 2007, 2008, and 2009, respectively, in the monthly rates payable under the Survivors' and Dependents' Educational Assistance (DEA) program in accordance with statutory requirements and previously established formulas; a change in the formula used to calculate entitlement charges for individuals pursuing apprenticeship or other on-job training in accordance with the Veterans Benefits Improvement Act of 2004; and nonsubstantive changes for the purpose of clarity and to reflect agency organization.
Effective Date: This final rule is effective December 30, 2008.
Applicability Dates: For information concerning the dates of applicability for certain provisions, see the Supplementary Information section of this document.
Brandye R. Terrell, Regulation Development Team Leader (225C), Education Service, Veterans Benefits Administration, Department of Veterans Affairs, 810 Vermont Ave., NW., Washington, DC 20420, (202) 461-9822.
Under the formula mandated by 38 U.S.C. 3564, the monthly rates of basic educational assistance payable under the Survivors' and Dependents' Educational Assistance (DEA) program must be increased by the percentage by which the total monthly Consumer Price Index-W for the 12-month period ending on June 30 preceding the fiscal year (FY) during which the increase is applicable exceeds the Consumer Price Index-W for the 12-month period ending on June 30 preceding the previous FY. Using this formula, VA calculated a 2 percent increase for FY 2005, a 3 percent increase for FY 2006, a 4 percent increase for FY 2007, a 2.5 percent increase for FY 2008, and a 3.9 percent increase for FY 2009.
Public Law 91-219 authorized monthly educational assistance payments for eligible persons pursuing training at less than half time. Since the effective date of that public law, February 1, 1970, students pursuing a program of education at less than one-half time but more than one-quarter time have had their payments limited to the prorated amount of tuition and fees not to exceed the half-time rate. Similarly, students pursuing a program of education at one-quarter time or less have had their payments limited to the prorated amount of tuition and fees not to exceed 25 percent of the full-time institutional rate. The monthly rates of basic educational assistance for students pursuing a program of education at less than half time are increased in accordance with the provisions of this paragraph, and this document makes changes in the regulations accordingly.
The entitlement charge for correspondence courses is based on the monthly rates of basic educational assistance. Hence, the amount used to determine entitlement charge for correspondence courses is increased by 2 percent for FY 2005, 3 percent for FY 2006, 4 percent for FY 2007, 2.5 percent for FY 2008, and 3.9 percent for FY 2009, consistent with the adjustments in the monthly rates of basic educational assistance discussed above.
The increases in the DEA rates are applied in accordance with the applicable statutory provisions discussed above. Thus, VA began paying the increases for FY 2005, 2006, 2007, and 2008 effective for training pursued on or after October 1, 2004, October 1, 2005, October 1, 2006, and Start Printed Page 79646October 1, 2007, respectively. VA will pay the FY 2009 increase effective for training pursued on or after October 1, 2008.
The Veterans Benefits Improvement Act of 2004 (Pub. L. 108-454) modified the formula used to calculate entitlement charges for certain apprenticeship and other on-job trainees. Prior to October 1, 2005, eligible persons with 38 U.S.C. chapter 35 entitlement were charged a month of entitlement for each month they received educational assistance. The entitlement charge was based on the length of training rather than the amount received for training. Public Law 108-454 mandates that 38 U.S.C. chapter 35 entitlement charged for training pursued on or after October 1, 2005, be reduced proportionately by the percentage rate (rounded to the nearest percentage) determined by dividing the amount of the training assistance paid for the month by the monthly educational assistance payable for full-time enrollment in an educational institution. This document amends VA regulations concerning 38 U.S.C. chapter 35 entitlement accordingly, and makes nonsubstantive changes in those entitlement provisions intended to clarify that entitlement charges are charges for record purposes and not monetary charges.
This document also makes other nonsubstantive changes in the DEA regulations for the purpose of clarity. These include clarifying changes to specify the ending dates for certain 2004 provisions in §§ 21.3045, 21.3046, 21.3131, 21.3300, and 21.3333.
In addition, we are making a nonsubstantive change to reflect current agency organization. Due to a publishing error, instructions that VA published in the Federal Register in a final rule entitled “Veterans Benefits Administration Nomenclature Changes” (66 FR 44052-44053, Aug. 22, 2001) were not fully implemented in the Code of Federal Regulations. This document repeats an instruction that had been in that final rule.
The changes in the DEA rates for fiscal years 2005, 2006, 2007, and 2008, are applied retroactively for training pursued on or after October 1, 2004, October 1, 2005, October 1, 2006, and October 1, 2007, respectively, to conform to statutory requirements. The changes in the DEA rates for fiscal year 2009 are being applied effective October 1, 2008, for training pursued on or after that date, to conform to statutory requirements. The change in the formula used to calculate entitlement charges is applied retroactively to training pursued on or after October 1, 2005, to conform to statutory requirements.
The changes made by this final rule merely reflect statutory requirements and adjustments made based on previously established formulas, or are interpretive rules or nonsubstantive changes. These changes are exempt from the notice-and-comment and delayed-effective-date requirements of 5 U.S.C. 553(b) and (d).
Executive Order 12866 directs agencies to assess all costs and benefits of available regulatory alternatives and, when regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety, and other advantages; distributive impacts; and equity). The Executive Order classifies a regulatory action as a “significant regulatory action,” requiring review by the Office of Management and Budget (OMB) unless OMB waives such review, if it is a regulatory action that is likely to result in a rule that may: (1) Have an annual effect on the economy of $100 million or more or adversely affect in a material way the economy, a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities; (2) create a serious inconsistency or otherwise interfere with an action taken or planned by another agency; (3) materially alter the budgetary impact of entitlements, grants, user fees, or loan programs or the rights and obligations of recipients thereof; or (4) raise novel legal or policy issues arising out of legal mandates, the President's priorities, or the principles set forth in the Executive Order.
The economic, interagency, budgetary, legal, and policy implications of this final rule have been examined and it has been determined that it is not a significant regulatory action under the Executive Order.
The initial and final regulatory flexibility analyses requirements of sections 603 and 604 of the Regulatory Flexibility Act, 5 U.S.C. 601-612, are not applicable to this rule, because a notice of proposed rulemaking is not required for this rule. Even so, 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. This final rule directly affects only individuals and does not directly affect small entities. Therefore, this final rule is also exempt pursuant to 5 U.S.C. 605(b) from the initial and final regulatory flexibility analyses requirements of sections 603 and 604.
The program that this rule affects has the following Catalog of Federal Domestic Assistance number and title: 64.117, Survivors and Dependents Educational Assistance.
Grant programs—veterans
Loan programs—education
Loan programs—veterans
Approved: December 22, 2008.
For the reasons stated above, the Department of Veterans Affairs amends
1. In chapter I, revise all references to “VR&C” to read “VR&E”.
2. The authority citation for part 21, subpart C, continues to read as follows:
Authority: 38 U.S.C. 501(a), 512, 3500-3566, and as noted in specific sections.
3. Amend § 21.3045 by:
a. In the first sentence of the introductory text, adding “record-purpose” before “charges” and “38 U.S.C. chapter 35” before “entitlement”.
b. In paragraph (c) introductory text, removing “entitlement—” and adding, in its place, “entitlement of—”.
c. Revising paragraphs (g) and (h).
§ 21.3045
Entitlement charges.
(g) Entitlement charge for apprenticeship or other on-job training. For each month that an eligible person is paid a monthly educational assistance allowance while undergoing apprenticeship or other on-job training, including months in which the eligible person fails to complete 120 hours of training, VA will make a record-purpose charge against 38 U.S.C. chapter 35 entitlement, if any, as follows:
(1) For training pursued before October 1, 2005, VA will reduce chapter 35 entitlement by one month for each month of benefits paid.
(2) For training pursued on or after October 1, 2005, VA will reduce chapter 35 entitlement proportionately based on the percentage rate (rounded to the nearest percentage) determined by dividing the amount of the training assistance paid for the month by the monthly educational assistance payable for full-time enrollment in an educational institution.
(Authority: 38 U.S.C. 3534, 3687; sec. 102, Pub L. 108-454, 118 Stat. 3600)
(h) Entitlement charge for correspondence courses. The charge against entitlement of a spouse or surviving spouse for pursuit of a course exclusively by correspondence will be 1 month for each of the following amounts paid as an educational assistance allowance:
(1) $788.00, paid after June 30, 2004, and before October 1, 2004;
(2) $803.00, paid after September 30, 2004, and before October 1, 2005;
(3) $827.00, paid after September 30, 2005, and before October 1, 2006;
(4) $860.00, paid after September 30, 2006, and before October 1, 2007;
(5) $881.00, paid after September 30, 2007, and before October 1, 2008; and
(6) $915.00, paid after September 30 2008.
(Authority: 38 U.S.C. 3534(b), 3564, 3686(a))
4. Amend § 21.3046 by revising paragraph (d)(4)(ii) to read as follows:
§ 21.3046
Periods of eligibility; spouses and surviving spouses.
(ii) The total additional amount of instruction that—
(A) $2,206 provides during the period July 1, 2004, through September 30, 2004;
(B) $2,248 provides during the period October 1, 2004, through September 30, 2005;
(C) $2,316 provides during the period October 1, 2005, through September 30, 2006;
(D) $2,408 provides during the period October 1, 2006, through September 30, 2007;
(E) $2,467 provides during the period October 1, 2007, through September 30, 2008; or
(F) $2,562 provides after September 30, 2008.
(Authority: 38 U.S.C. 3511(b))
5. Amend § 21.3131 by:
b. Removing paragraphs (b) and (c).
c. Redesignating paragraphs (d), (e), and (f), as new paragraphs (b), (c), and (d), respectively.
§ 21.3131
Rates—educational assistance allowance—38 U.S.C. chapter 35.
(a) Rates. Except as provided in § 21.3132, educational assistance allowance under 38 U.S.C. chapter 35 is payable at the following monthly rates—
(1) For training pursued after June 30, 2004, and before October 1, 2004:
Full time $788.00
3/4 time 592.00
1/2 time 394.00
Less than 1/2 but more than 1/4 time 1 394.00
1/4 time or less 1 197.00
Cooperative training (other than farm cooperative) (full time only) 788.00
Apprenticeship or on-job (full time only): 2
First six months 574.00
Second six months 429.00
Third six months 285.00
Fourth six months and thereafter 144.00
Farm cooperative:
Full time 636.00
3/4 time 477.00
1/2 time 319.00
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 $394.00 or $197.00, as appropriate, per month, if the maximum allowance is not initially authorized.
2 See footnote 5 of § 21.4270(c) for measurement of full time and § 21.3132(c) for proportionate reduction in award for completion of less than 120 hours per month. Start Printed Page 79648
3 Established charge means the charge for the course or courses determined on the basis of the lowest extended time payment plan offered by the institution and approved by the appropriate State approving agency or the actual cost to the eligible spouse or surviving spouse, whichever is less. VA considers the continuity of an enrollment broken when there are more than 6 months between the servicing of the lessons.
(Authority: 38 U.S.C. 3532(a), 3542(a), 3687(b)(2), (d))
(2) For training pursued after September 30, 2004, and before October 1, 2005:
Full time $803.00
3/4 time 603.00
1/2 time 401.00
Less than 1/2 but more than 1/4 time 1 401.00
1/4 time or less 1 200.75
Cooperative training (other than farm cooperative) (full time only) 803.00
First six months 585.00
Second six months 438.00
Third six months 291.00
Fourth six months and thereafter 147.00
Full time 648.00
3/4 time 486.00
1/2 time 325.00
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 $401.00 or $200.75, as appropriate, per month, if the maximum allowance is not initially authorized.
2 See footnote 5 of § 21.4270(c) for measurement of full time and § 21.3132(c) for proportionate reduction in award for completion of less than 120 hours per month.
(3) For training pursued after September 30, 2005, and before October 1, 2006:
Full time $827.00
3/4 time 621.00
1/2 time 413.00
Less than 1/2 but more than 1/4 time 1 413.00
1/4 time or less 1 206.75
Cooperative training (other than farm cooperative) (full time only) 827.00
First six months 650.00
Second six months 507.00
Third six months 366.00
Fourth six months and thereafter 151.00
Full time 667.00
3/4 time 500.00
1/2 time 334.00
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 $413.00 or $206.75, as appropriate, per month, if the maximum allowance is not initially authorized.
Start Printed Page 79649
(4) For training pursued after September 30, 2006, and before October 1, 2007:
Full time $860.00
3/4 time 645.00
1/2 time 429.00
Less than 1/2 but more than 1/4 time 1 429.00
1/4 time or less 1 215.00
Cooperative training (other than farm cooperative) (full time only) 860.00
First six months 676.00
Second six months 527.00
Third six months 380.00
Fourth six months and thereafter 157.00
Full time 693.00
3/4 time 520.00
1/2 time 347.00
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 $429.00 or $215.00, as appropriate, per month, if the maximum allowance is not initially authorized.
(5) For training pursued after September 30, 2007, and before January 1, 2008:
Full time $881.00
3/4 time 661.00
1/2 time 439.00
Less than 1/2 but more than 1/4 time 1 439.00
1/4 time or less 1 220.25
Cooperative training (other than farm cooperative) (full time only) 881.00
First six months 692.00
Second six months 540.00
Third six months 389.00
Fourth six months and thereafter 160.00
Full time 710.00
3/4 time 533.00
1/2 time 355.00
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 $439.00 or $220.25, as appropriate, per month, if the maximum allowance is not initially authorized.
(6) For training pursued after December 31, 2007, and before October 1, 2008: Start Printed Page 79650
First six months 641.00
Second six months 480.00
Third six months 317.00
(7) For training pursued after September 30, 2008:
Full time $915.00
3/4 time 686.00
1/2 time 456.00
Less than 1/2 but more than 1/4 time 1 456.00
1/4 time or less 1 227.75
Cooperative training (other than farm cooperative) (full time only) 915.00
First six months 666.00
Second six months 499.00
Third six months 329.00
Fourth six months and thereafter 166.00
Full time 737.00
3/4 time 553.00
1/2 time 368.00
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 $456.00 or $227.75, as appropriate, per month, if the maximum allowance is not initially authorized.
6. Amend § 21.3300 by revising paragraph (d) to read as follows:
§ 21.3300
Special restorative training.
(d) Duration of special restorative training. VA may provide special restorative training in excess of 45 months where an additional period of time is needed to complete the training. Entitlement, including any authorized in excess of 45 months, may be expended through an accelerated program requiring a rate of payment for tuition and fees in excess of—
(1) $247.00 a month for the period beginning July 1, 2004, and ending September 30, 2004;
(2) $251.00 a month for the period beginning October 1, 2004, and ending September 30, 2005; Start Printed Page 79651
(3) $258.00 a month for the period beginning October 1, 2005, and ending September 30, 2006;
(4) $268.00 a month for the period beginning October 1, 2006, and ending September 30, 2007;
(5) $274.00 a month for the period beginning October 1, 2007, and ending September 30, 2008; and
(6) $284.00 a month for months after September 30, 2008.
(Authority: 38 U.S.C. 3541(b), 3542)
7. Amend § 21.3333 by:
a. Revising paragraphs (a)(1), (a)(2), and (a)(3), and adding paragraph (a)(4).
b. Revising paragraph (b)(1).
§ 21.3333
(1) For special restorative training pursued after June 30, 2004, and before October 1, 2004:
Special restorative training $788.00 If costs for tuition and fees average in excess of $247.00 per month, rate may be increased by such amount in excess of $247.00.
(Authority: 38 U.S.C. 3542)
(2) For special restorative training pursued after September 30, 2004, and before October 1, 2005:
Special restorative training $803.00 If costs for tuition and fees average in excess of $251.00 per month, rate may be increased by such amount in excess of $251.00.
(3) For special restorative training pursued after September 30, 2005, and before October 1, 2006:
Special restorative training $827.00 If costs for tuition and fees average in excess of $258.00 per month, rate may be increased by such amount in excess of $258.00.
(4) For special restorative training pursued after September 30, 2006, and before October 1, 2007:
Special restorative training $860.00 If costs for tuition and fees average in excess of $268.00 per month, rate may be increased by such amount in excess of $268.00.
(5) For special restorative training pursued after September 30, 2007, and before October 1, 2008:
Special restorative training $881.00 If costs for tuition and fees average in excess of $274.00 per month, rate may be increased by such amount in excess of $274.00.
(6) For special restorative training pursued after September 30, 2008:
Special restorative training $915.00 If costs for tuition and fees average in excess of $284.00 per month, rate may be increased by such amount in excess of $284.00.
Start Printed Page 79652
(b) Accelerated charges. (1) VA may pay the additional monthly rate if the eligible person, or his or her parent or guardian (see § 21.3021(d)) if the eligible person has a guardian or has not attained majority under laws applicable in his or her State of residence, concurs in having his or her period of entitlement reduced by 1 day for each—
(i) $26.27 that the special training allowance exceeds the basic monthly rate of $803.00 for the period July 1, 2004, through September 30, 2004;
(ii) $26.77 that the special training allowance exceeds the basic monthly rate of $803.00 for the period October 1, 2004, through September 30, 2005;
(iii) $27.57 that the special training allowance exceeds the basic monthly rate of $827.00 for the period October 1, 2005, through September 30, 2006;
(iv) $28.67 that the special training allowance exceeds the basic monthly rate of $860.00 for the period October 1, 2006, through September 30, 2007;
(v) $29.37 that the special restorative training allowance exceeds the basic monthly rate of $881.00 for the period October 1, 2007, through September 30, 2008; and
(vi) $30.50 that the special restorative training allowance exceeds the basic monthly rate of $915.00 for months after September 30, 2008.
[FR Doc. E8-31033 Filed 12-29-08; 8:45 am]