98-30287. Eligibility Criteria for the Montgomery GI BillActive Duty and Other Miscellaneous Issues  

  • [Federal Register Volume 63, Number 218 (Thursday, November 12, 1998)]
    [Proposed Rules]
    [Pages 63253-63258]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-30287]
    
    
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    DEPARTMENT OF DEFENSE
    
    DEPARTMENT OF TRANSPORTATION
    
    Coast Guard
    
    DEPARTMENT OF VETERANS AFFAIRS
    
    38 CFR Part 21
    
    RIN 2900-AI63
    
    
    Eligibility Criteria for the Montgomery GI Bill--Active Duty and 
    Other Miscellaneous Issues
    
    AGENCIES: Department of Defense, Department of Transportation (Coast 
    Guard), and Department of Veterans Affairs.
    
    ACTION: Proposed rule.
    
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    SUMMARY: This document proposes to amend the educational assistance and 
    educational benefit regulations of the Department of Veterans Affairs 
    (VA). The proposed amendments reflect statutory changes which set forth 
    new eligibility criteria that will allow additional individuals to 
    establish eligibility for educational assistance under the Montgomery 
    GI Bill--Active Duty (MGIB); and also reflect statutory provisions 
    concerning the approval of courses leading to alternative teacher 
    certification. This document also would make changes for the purpose of 
    clarification.
    
    DATES: Comments must be received on or before January 11, 1999.
    
    ADDRESSES: Mail or hand-deliver written comments to: Director, Office 
    of Regulations Management (02D), Department of Veterans Affairs, 810 
    Vermont Ave., NW, Room 1154, Washington, DC 20420. Comments should 
    indicate that they are submitted in response to ``RIN 2900-AI63.'' All 
    written comments will be available for public inspection at the above 
    address in the Office of Regulations Management, Room 1158, between the 
    hours of 8 a.m. and 4:30 p.m., Monday through Friday (except holidays).
    
    FOR FURTHER INFORMATION CONTACT: William G. Susling, Jr., Education 
    Advisor, Education Service, Veterans Benefits Administration, 202-273-
    7187.
    
    SUPPLEMENTARY INFORMATION: This document proposes to amend subparts D, 
    G, K, and L of 38 CFR part 21, which concern educational assistance 
    under various educational programs administered by VA. The proposed 
    amendments would implement provisions of the National Defense 
    Authorization Act for Fiscal Year 1997 (Pub. L. 104-201) and various 
    provisions of the Veterans' Benefits Improvements Act of 1996 (Pub. L. 
    104-275).
        Formerly, officers could not participate in the Montgomery GI 
    Bill--Active Duty (MGIB) if they were commissioned after December 31, 
    1976, under a program of educational assistance under 10 U.S.C. 2107 
    (Senior Reserve Officer Training Corps (SROTC) Scholarship Program). A 
    provision of Pub. L. 104-201 states that this restriction no longer 
    applies to an individual who enters active duty after September 30, 
    1996, and received no more than $2,000 for each year of participation 
    in the SROTC program of educational assistance. The regulations 
    governing eligibility for the MGIB would be revised to reflect the new 
    statutory provision.
        Individuals who entered active duty during the period from January 
    1, 1977, through June 30, 1985, were given the opportunity to 
    participate in the Post-Vietnam Era Veterans' Educational Assistance 
    Program (VEAP). Provisions of Pub. L. 104-275 permitted certain VEAP 
    participants on active duty to elect to participate in the MGIB 
    instead. The military pay of an individual who made the election will 
    be reduced by $1,200, or, if not so reduced, VA will collect the amount 
    from the individual. The regulations governing eligibility for the MGIB 
    would be revised to reflect the new statutory provisions, including our 
    view that the applicable statutory provisions require that an 
    individual who made an election to participate in
    
    [[Page 63254]]
    
    the MGIB would not become entitled until he or she has provided the 
    Government the $1,200.
        Certain full-time, Active Guard Reserve (AGR) service and full-time 
    National Guard service by a member of the Army National Guard or the 
    Air National Guard in the member's status as a member of the National 
    Guard of a State for the purpose of organizing, administering, 
    recruiting, instructing, or training the National Guard qualifies as 
    active duty for purposes of establishing eligibility to participate in 
    the MGIB. Before the enactment of Pub. L. 104-275, the MGIB statute 
    required that, in order to participate, the individual must have first 
    performed qualifying active duty after November 29, 1989. A provision 
    of Pub. L. 104-275 permitted certain members of the Army National Guard 
    and the Air National Guard to elect to become entitled to the MGIB 
    based on AGR or ADS service first performed after June 30, 1985. The 
    regulations governing eligibility for the MGIB would be revised to 
    reflect the new statutory provision.
        Since neither of the groups of individuals may receive benefits 
    until the required $1,200 is collected, the regulations governing the 
    effective dates of awards of educational assistance would be amended to 
    establish effective dates for benefits based on elections to receive 
    benefits and receipt of the $1,200 and of any other evidence necessary 
    to establish a valid election.
        An individual is prohibited by statute (38 U.S.C. 3033(c)) from 
    using the same period of service to establish eligibility for both the 
    MGIB and the Montgomery GI Bill--Selected Reserve (MGIB-SR). Some of 
    those individuals now eligible to elect to become entitled to the MGIB 
    by having certain AGR and ADS service qualify as active duty, may have 
    previously used that service to establish eligibility for the MGIB-SR. 
    If such an individual received educational assistance under the MGIB-SR 
    and now makes such an election, he or she would have no service to 
    support the educational assistance previously received under the MGIB-
    SR. Consequently, it is necessary for VA to terminate that assistance 
    retroactively to the first date of training for which the individual 
    received educational assistance. VA is proposing to revise 38 CFR 
    21.7635 accordingly. The procedures for repayment of amounts paid under 
    the MGIB-SR are set forth at 38 CFR 1.900 through 1.994.
        Beginning in November 1994, a pilot program was authorized by 
    statute that required certain entities offering alternative teacher 
    certification courses to be considered to be educational institutions. 
    Since courses must be offered by educational institutions in order to 
    be approved by State approving agencies for VA training, this provision 
    allowed State approving agencies to approve these courses. This program 
    was scheduled to expire on September 30, 1996. Pub. L. 104-275 made the 
    pilot program permanent. Various regulations that indicated that the 
    pilot program was scheduled to end on September 30, 1996, would be 
    revised accordingly.
        This document would make other changes for the purpose of clarity.
        The restatements of statute and statutory interpretations contained 
    in this proposed rule would be applied from the effective dates of the 
    statutory provisions. The dates of application for the provisions 
    covered by this document would be as follows:
    
    October 1, 1996: 38 CFR 21.7020(b)(1), new Sec. 21.7042(f)(3) and newly 
    redesignated Sec. 21.7042(f)(4)
    October 9, 1996: Secs. 21.4135(b); 21.5021(d)(3); 21.5058(b); 
    21.5130(d); 21.7020(b)(29); all changes to Sec. 21.7042 except new 
    Sec. 21.7042(f)(3) and newly redesignated Sec. 21.7042(f)(4); 
    Secs. 21.7045; 21.7050; 21.7131; 21.7520(b); and 21.7635
    
        The Department of Defense (DOD) is issuing this proposed rule 
    jointly with VA insofar as it relates to VEAP. This program is funded 
    by DOD and administered by VA. DOD, the Department of Transportation 
    (Coast Guard), and VA are jointly issuing this proposed rule insofar as 
    it relates to the Montgomery GI Bill--Selected Reserve. This program is 
    funded by DOD and the Coast Guard, and is administered by VA. The 
    remainder of this proposed rule is issued solely by VA.
    
    Paperwork Reduction Act
    
        Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520), a 
    collection of information is set forth in the proposed 38 CFR 
    21.7131(l) and (m). Accordingly, under section 3507(d) of the Act, VA 
    has submitted a copy of this rulemaking action to the Office of 
    Management and Budget (OMB) for its review of the proposed collection 
    of information.
        OMB assigns a control number to each collection of information it 
    approves. VA may not conduct or sponsor, and a person is not required 
    to respond to, a collection of information unless it displays a 
    currently valid OMB control number.
        Comments on the proposed collection of information should be 
    submitted to the Office of Management and Budget, Attention: Desk 
    Officer for the Department of Veterans Affairs, Office of Information 
    and Regulatory Affairs, Washington, DC 20503, with copies mailed or 
    hand-delivered to the Director, Office of Regulations Management (02D), 
    Department of Veterans Affairs, 810 Vermont Ave., NW, Room 1154, 
    Washington, DC 20420. Comments should indicate that they are submitted 
    in response to ``RIN 2900-AI63.''
        Title: Evidence Submitted to Validate an Election to Receive 
    Educational Assistance under the Montgomery GI Bill--Active Duty.
        Summary of collection of information: The proposed Sec. 21.7131(l) 
    and (m) would provide that a veteran may be required to submit evidence 
    to validate an election to receive educational assistance under the 
    MGIB and that the date of VA's receipt of the evidence may have an 
    effect on the effective date of an award of educational assistance. The 
    type of evidence submitted would be copies of records that most 
    individuals would keep, such as a discharge certificate or a document 
    that shows that $1,200 was withheld from military pay. There would be 
    no recordkeeping requirement.
        Description of need for information and proposed use of 
    information: VA and DOD conduct a computer match that allows VA access 
    to data contained in the Defense Manpower Data Center (DMDC) about 
    applicants for the MGIB. Those data are necessary to establish their 
    eligibility for educational assistance. Normally, the information 
    contained in DMDC records would be sufficient for VA to decide if an 
    individual who claims to have become eligible for educational 
    assistance under the proposed Sec. 21.7042(a)(7), 21.7042(b)(10), or 
    21.7045(d) is, in fact, eligible. However, VA realizes that there may 
    be an occasional error in entering the pertinent data into the computer 
    records, so that it may appear that an individual is ineligible when he 
    or she is actually eligible. The proposed Sec. 21.7131(l) and (m) 
    recognize this by allowing for the possibility that an individual may 
    have to submit additional evidence to show that he or she is eligible 
    for educational assistance. VA will use the evidence submitted to 
    validate an individual's eligibility for educational assistance under 
    the MGIB.
        Description of likely respondents: Individuals seeking to establish 
    eligibility for educational assistance under the MGIB.
        Estimated number of respondents: 56 per year.
        Estimated frequency of responses: Once per respondent.
    
    [[Page 63255]]
    
        Estimated average burden per collection: 20 minutes. This is VA's 
    estimate of the average time it would take for respondents to find or 
    obtain, if necessary, this additional evidence, and to copy and mail 
    this evidence to VA.
        Estimated total annual reporting and recordkeeping burden: 19 
    hours.
        The Department considers comments by the public on proposed 
    collections of information in--
         Evaluating whether the proposed collections of information 
    are necessary for the proper performance of the functions of the 
    Department, including whether the information will have practical 
    utility;
         Evaluating the accuracy of the Department's estimate of 
    the burden of the proposed collections of information, including the 
    validity of the methodology and assumptions used;
         Enhancing the quality, usefulness, and clarity of the 
    information to be collected; and
         Minimizing the burden of the collections of information on 
    those who are to respond, including through the use of appropriate 
    automated, electronic, mechanical, or other technological collection 
    techniques or other forms of information technology, e.g., permitting 
    electronic submission of responses.
        OMB is required to make a decision concerning the collection of 
    information contained in this proposed rule between 30 and 60 days 
    after publication of this document in the Federal Register. Therefore, 
    a comment to OMB is best assured of having its full effect if OMB 
    receives it within 30 days of publication. This does not affect the 
    deadline for the public to submit comments to VA on the proposed rule.
    
    Regulatory Flexibility Act
    
        The Secretary of Defense, Commandant of the Coast Guard, and the 
    Secretary of Veterans Affairs hereby certify that the adoption of this 
    proposed rule would 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. Adoption of this proposed 
    rule would not cause educational institutions to make changes in their 
    activities and would have minuscule monetary effects, if any. Pursuant 
    to 5 U.S.C. 605(b), this proposed rule, therefore, is exempt from the 
    initial and final regulatory flexibility analyses requirements of 
    Secs. 603 and 604.
        The Catalog of Federal Domestic Assistance numbers for programs 
    affected by this proposed rule are 64.117, 64.120, and 64.124. This 
    proposed rule would also affect the Montgomery GI Bill--Selected 
    Reserve program, which has 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, Loan programs-education, Loan programs-veterans, 
    Manpower training programs, Reporting and recordkeeping requirements, 
    Schools, Travel and transportation expenses, Veterans, Vocational 
    education, Vocational rehabilitation.
    
        Approved: June 12, 1998.
    Togo D. West, Jr.,
    Secretary of Veterans Affairs.
    Normand G. Lezy,
    Lieutenant General, USAF
    Deputy Assistant Secretary (Military Personnel Policy), Department of 
    Defense.
    
        Approved: July 28, 1998.
    T. J. Barrett, RADM, USCG,
    Assistant Commandant for Human Resources, Acting.
    
        For the reasons set forth above, 38 CFR part 21 (subparts D, G, K, 
    and L) is proposed to be 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 continues 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. In Sec. 21.4135, paragraph (b) is added to read as follows:
    
    
    Sec. 21.4135  Discontinuance dates.
    
    * * * * *
        (b) Election to receive educational assistance under the Montgomery 
    GI Bill--Active Duty. If a veteran makes a valid election, as provided 
    in Sec. 21.7045(d), to receive educational assistance under the 
    Montgomery GI Bill--Active Duty in lieu of educational assistance under 
    the Post-Vietnam Era Veterans' Educational Assistance Program, the 
    discontinuance date of educational assistance under the Post-Vietnam 
    Era Veterans' Educational Assistance Program shall be the date on which 
    the election was made pursuant to procedures described in 
    Sec. 21.7045(d)(2).
    
    (Authority: 38 U.S.C. 3018C(c)(1))
    * * * * *
    
    Subpart G--Post-Vietnam Era Veterans' Educational Assistance Under 
    38 U.S.C. Chapter 32
    
        3. The authority citation for part 21, subpart G continues to read 
    as follows:
    
        Authority: 38 U.S.C. 501(a), ch. 32, unless otherwise noted.
    
    
    Sec. 21.5021  [Amended]
    
        4. In Sec. 21.5021, paragraph (d)(3) is amended by removing 
    ``during the period beginning on November 2, 1994, and ending on 
    September 30, 1996,''.
        5. In Sec. 21.5058, the authority citation for paragraph (b) is 
    revised to read as follows:
    
    
    Sec. 21.5058  Resumption of participation.
    
    * * * * *
        (b) * * *
    
    (Authority: 38 U.S.C. 3018A, 3018B, 3018C, 3202(l), 3222)
    
    Sec. 21.5130  [Amended]
    
        6. In Sec. 21.5130, paragraph (b) is amended by removing ``(except 
    paragraph (b))''.
    
    Subpart K--All Volunteer Force Educational Assistance Program 
    (Montgomery GI Bill--Active Duty)
    
        7. 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.
    
        8. In Sec. 21.7020, paragraph (b)(29)(iii) is amended by removing 
    ``during the period beginning on November 2, 1994, and ending on 
    September 30, 1996,''; the authority citation for paragraph (b)(29) is 
    revised; paragraph (b)(1)(iv) is added immediately after the authority 
    citation for paragraph (b)(1)(iii); and paragraph (b)(44) is added 
    immediately after the authority citation for paragraph (b)(43), to read 
    as follows:
    
    
    Sec. 21.7020  Definitions.
    
    * * * * *
        (b) * * *
        (1) * * *
        (iv) When referring to individuals who, before June 30, 1985, had 
    never served on active duty (as that term is defined by Sec. 3.6(b) of 
    this chapter) and who made the election described in Sec. 21.7042(a)(7) 
    or (b)(10), the term active duty when used in this subpart includes 
    full-time National Guard duty under title 32, U.S. Code first performed 
    after June 30, 1985, by a member of the Army National Guard of the 
    United States or the Air National Guard of the United States for the 
    purpose of organizing, administering, recruiting, instructing, or 
    training the National Guard.
    
    
    [[Page 63256]]
    
    
    (Authority: 38 U.S.C. 3002(7); sec. 107, Pub. L. 104-275, 110 Stat. 
    3329-3330)
    * * * * *
        (29) * * *
    
    (Authority: 38 U.S.C. 3002(8), 3452(c))
    * * * * *
        (44) Date of election. The term date of election means:
        (i) For an election that must be made in the form and manner 
    determined by the Secretary of Defense, the date determined by the 
    Secretary of Defense; and
        (ii) For an election that must be submitted to VA, the date VA 
    receives the written election.
    
    (Authority: 38 U.S.C. 3018C(a)(5); sec. 107(b), Pub. L. 104-275, 110 
    Stat. 3329-3330)
    
        9. In Sec. 21.7042, paragraph (f)(3) is redesignated as paragraph 
    (f)(4); newly redesignated paragraph (f)(4) is amended by removing 
    ``Paragraph (f)(2) of this section does'' and adding, in its place, 
    ``Paragraphs (f)(2) and (f)(3) of this section do'', by removing 
    ``Coast'' and adding, in its place, ``United States Coast'', and by 
    removing ``Reserve'' and adding, in its place, ``Senior Reserve''; 
    paragraph (a)(7) is added immediately after the authority citation for 
    paragraph (a)(6); paragraph (b)(10) is added immediately after the 
    authority citation for paragraph (b)(9); new paragraph (f)(3) and 
    paragraph (g)(5) are added; and paragraphs (f)(2), (g)(1), and (g)(4) 
    are revised to read as follows:
    
    
    Sec. 21.7042  Basic eligibility requirements.
    
    * * * * *
        (a) * * *
        (7) An individual whose active duty meets the definition of that 
    term found in Sec. 21.7020(b)(1)(iv), and who wishes to become entitled 
    to basic educational assistance, must have elected to do so before July 
    9, 1997. For an individual electing while on active duty, this election 
    must have been made in the manner prescribed by the Secretary of 
    Defense. For individuals not on active duty, this election must have 
    been submitted in writing to VA.
    
    (Authority: Sec. 107(b), Pub. L. 104-275, 110 Stat. 3329-3330)
    * * * * *
        (b) * * *
        (10) An individual whose active duty meets the definition of that 
    term found in Sec. 21.7020(b)(1)(iv), and who wishes to become entitled 
    to basic educational assistance, must have elected to do so before July 
    9, 1997. For an individual electing while on active duty, this election 
    must have been made in the manner prescribed by the Secretary of 
    Defense. For individuals not on active duty, this election must have 
    been submitted in writing to VA.
    
    (Authority: Sec. 107(b), Pub. L. 104-275, 110 Stat. 3329-3330)
    * * * * *
        (f) * * *
        (2) Except as provided in paragraph (f)(4) of this section, an 
    individual is not eligible for educational assistance under 38 U.S.C. 
    chapter 30 if after December 31, 1976, he or she receives a commission 
    as an officer in the Armed Forces upon graduation from:
        (i) The United States Military Academy;
        (ii) The United States Naval Academy;
        (iii) The United States Air Force Academy; or (iv) The United 
    States Coast Guard Academy.
        (3) Except as provided in paragraph (f)(4) of this section, an 
    individual who after December 31, 1976, receives a commission as an 
    officer in the Armed Forces upon completion of a program of educational 
    assistance under 10 U.S.C. 2107 is not eligible for educational 
    assistance under 38 U.S.C. chapter 30, if the individual enters on 
    active duty--
        (i) Before October 1, 1996; or
        (ii) After September 30, 1996, and while participating in that 
    program received more than $2,000 for each year of participation.
    
    (Authority: 38 U.S.C. 3011(c), 3012(d))
    * * * * *
        (g) Reduction in basic pay. (1) Except as elsewhere provided in 
    this paragraph, the basic pay of any individual described in paragraph 
    (a), (b), or (c) of this section shall be reduced by $100 for each of 
    the first 12 months that the individual is entitled to basic pay. If 
    the individual does not serve 12 months, it shall be reduced by $100 
    for each month that the individual is entitled to basic pay.
    * * * * *
        (4) The individual who makes the election described in either 
    paragraph (a)(7) or (b)(10) of this section shall have his or her basic 
    pay reduced by $1,200 in a manner prescribed by the Secretary of 
    Defense. To the extent that basic pay is not so reduced before the 
    individual's discharge or release from active duty, VA will collect 
    from the individual an amount equal to the difference between $1,200 
    and the total amount of the reductions described in this paragraph. If 
    the basic pay of an individual is not reduced and/or VA does not 
    collect from the individual an amount equal to the difference between 
    $1,200 and the total amount of the pay reductions, that individual is 
    ineligible for educational assistance.
    
    (Authority: Sec. 107(b)(3), Pub. L. 104-275, 110 Stat. 3329-3330)
    
        (5) If through administrative error, or other reason--
        (i) The basic pay of an individual described in paragraph (a)(1) 
    through (a)(6), (b)(1) through (b)(9), (c), or (d) of this section is 
    not reduced as provided in paragraph (g)(1) or (g)(2) of this section, 
    the failure to make the reduction will have no effect on his or her 
    eligibility, but will negate or reduce the individual's entitlement to 
    educational assistance under 38 U.S.C. chapter 30 determined as 
    provided in Sec. 21.7073 for an individual described in paragraph (c) 
    of this section;
        (ii) The basic pay of an individual, described in paragraph (a)(7) 
    or (b)(10) of this section, is not reduced as described in paragraph 
    (g)(4) of this section and/or VA does not collect from the individual 
    an amount equal to the difference between $1,200 and the total amount 
    of the pay reductions described in paragraph (g)(4) of this section, 
    that individual is ineligible for educational assistance. If the 
    failure to reduce the individual's basic pay and/or the failure to 
    collect from the individual was due to administrative error on the part 
    of the Federal government or any of its employees, the individual may 
    be considered for equitable relief depending on the facts and 
    circumstances of the case. See Sec. 2.7 of this chapter.
    
    (Authority: 38 U.S.C. 3002, 3011, 3012, 3018)
    
        10. In Sec. 21.7045, the heading and introductory text are revised; 
    and paragraph (d) is added, to read as follows:
    
    
    Sec. 21.7045  Eligibility based on involuntary separation, voluntary 
    separation, or participation in the Post-Vietnam Era Veterans' 
    Educational Assistance Program.
    
        An individual who fails to meet the eligibility requirements found 
    in Sec. 21.7042 or Sec. 21.7044 nevertheless will be eligible for 
    educational assistance as provided in this subpart if he or she meets 
    the requirements of paragraphs (a) and (b) of this section; paragraphs 
    (a) and (c) of this section; or paragraph (d) of this section.
    * * * * *
        (d) Alternate eligibility requirements for participants in the 
    Post-Vietnam Era Veterans' Educational Assistance Program.--(1) Making 
    an election. To receive educational assistance under the authority of 
    paragraph (d) of this section, a veteran or servicemember must--
        (i) Have elected to do so before October 9, 1997;
        (ii) Have been a participant (as that term is defined in 
    Sec. 21.5021(e)) in the Post-Vietnam Era Veterans' Educational 
    Assistance Program on October 9, 1996;
    
    [[Page 63257]]
    
        (iii) Have been on active duty on October 9, 1996; and
        (iv) Receive an honorable discharge.
        (2) Election. The election to receive educational assistance 
    payable under this subpart in lieu of educational assistance payable 
    under the Post-Vietnam Era Veterans' Educational Assistance Program is 
    irrevocable. The election must have been made before October 9, 1997, 
    pursuant to procedures provided by the Secretary of the military 
    department concerned in accordance with regulations prescribed by the 
    Secretary of Defense or provided by the Secretary of Transportation 
    with respect to the Coast Guard when it is not operating as a service 
    in the Navy.
        (3) $1,200 collection. An individual who has made the election 
    described in paragraph (d)(2) of this section shall have his or her 
    basic pay reduced by $1,200 in a manner prescribed by the Secretary of 
    Defense. To the extent that basic pay is not so reduced before the 
    individual's discharge or release from active duty, VA will collect 
    from the individual an amount equal to the difference between $1,200 
    and the total amount of the reductions. Reduction in basic pay by 
    $1,200 or collection of $1,200 is a precondition to establishing 
    eligibility.
        (4) Educational requirement. Before applying for benefits that may 
    be payable as the result of making a valid election, an individual must 
    have--
        (i) Completed the requirements of a secondary school diploma (or 
    equivalency certificate); or
        (ii) Successfully completed the equivalent of 12 semester hours in 
    a program of education leading to a standard college degree.
    
    (Authority: 38 U.S.C. 3018C)
    
        11. In Sec. 21.7050, paragraph (a)(1) is amended by removing 
    ``paragraph (b)'' and adding, in its place, ``paragraphs (b) and (c)'', 
    and by removing ``of this part''; paragraphs (c) and (d) are 
    redesignated as paragraphs (d) and (e), respectively; the authority 
    citation for paragraph (b) is revised; and a new paragraph (c) is added 
    to read as follows:
    
    
    Sec. 21.7050  Ending dates of eligibility.
    
    * * * * *
        (b) * * *
    
    (Authority: 38 U.S.C. 3031(e))
    
        (c) Time limit for some members of the Army and Air National Guard. 
    (1) If a veteran or servicemember establishes eligibility for the 
    educational assistance payable under this subpart by making the 
    election described in Sec. 21.7042(a)(7) or (b)(10), VA will not 
    provide basic educational assistance or supplemental educational 
    assistance to that veteran or servicemember beyond 10 years from the 
    later of:
        (i) The date determined by paragraph (a) or (b) of this section, as 
    appropriate; or
        (ii) The effective date of the election described in 
    Sec. 21.7042(a)(7) or (b)(10), as appropriate.
        (2) The effective date of election is the date on which the 
    election is made pursuant to the procedures described in 
    Sec. 21.7045(d)(2).
    
    (Authority: Sec. 107(b)(3), Pub. L. 104-275, 110 Stat. 3329-3330)
    * * * * *
        12. In Sec. 21.7131, paragraphs (l) and (m) are added to read as 
    follows:
    
    
    Sec. 21.7131  Commencing dates.
    
    * * * * *
        (l) Eligibility established under Sec. 21.7042(a)(7) or (b)(10). 
    This paragraph must be used to establish the effective date of an award 
    of educational assistance when the veteran or servicemember has 
    established eligibility under either Sec. 21.7042(a)(7) or (b)(10). The 
    commencing date of an award of educational assistance for such a 
    veteran or servicemember is the latest of the following:
        (1) The commencing date as determined by paragraphs (a) through (c) 
    and (f) through (j) of this section;
        (2) The date of election provided that--
        (i) The servicemember initiated the $1,200 reduction in basic pay 
    required by Sec. 21.7042(g)(4) and the full $1,200 was collected 
    through that pay reduction;
        (ii) Within one year of the date of election VA both collected from 
    the veteran $1,200 or the difference between $1,200 and the amount 
    collected through a reduction in the veteran's military pay, as 
    provided in Sec. 21.7042(g)(4), and received from the veteran any other 
    evidence necessary to establish a valid election; or
        (iii) VA received from the veteran $1,200 or the difference between 
    $1,200 and the amount collected through a reduction in the veteran's 
    military pay and any other evidence necessary to establish a valid 
    election within one year of the date VA requested the money and/or the 
    evidence.
        (3) If applicable, the date VA collected the difference between 
    $1,200 and the amount by which the servicemember's military pay was 
    reduced, if the provisions of paragraph (l)(2)(ii) or (l)(2)(iii) of 
    this section are not met; or
        (4) If applicable, the date VA collected $1,200, if the provisions 
    of paragraph (l)(2)(ii) or (l)(2)(iii) of this section are not met.
    
    (Authority: 38 U.S.C. 5113; sec. 107, Pub. L. 104-275, 110 Stat. 
    3329-3330)
    
        (m) Eligibility established under Sec. 21.7045(d). This paragraph 
    must be used to establish the effective date of an award of educational 
    assistance when the veteran or servicemember has established 
    eligibility under Sec. 21.7045(d). The commencing date of an award of 
    educational assistance for such a veteran or servicemember is the 
    latest of the following:
        (1) The commencing date as determined by paragraphs (a) through (c) 
    and (f) through (j) of this section;
        (2) The date of election provided that--
        (i) The servicemember initiated the $1,200 reduction in basic pay 
    required by Sec. 21.7045(d)(3) and the full $1,200 was collected 
    through that pay reduction;
        (ii) Within one year of the date of election VA both collected from 
    the veteran $1,200 or the difference between $1,200 and the amount 
    collected through a reduction in the veteran's military pay, as 
    provided in Sec. 21.7045(d)(3), and received from the veteran any other 
    evidence necessary to establish a valid election; or
        (iii) VA received from the veteran $1,200 or the difference between 
    $1,200 and the amount collected through a reduction in the veteran's 
    military pay and any other evidence necessary to establish a valid 
    election within one year of the date VA requested the money and/or the 
    evidence.
        (3) If applicable, the date VA collected the difference between 
    $1,200 and the amount by which the servicemember's military pay was 
    reduced, if the provisions of paragraph (m)(2)(ii) or (m)(2)(iii) of 
    this section are not met; or
        (4) If applicable, the date VA collected $1,200, if the provisions 
    of paragraph (m)(2)(ii) or (m)(2)(iii) of this section are not met.
    
    (Authority: 38 U.S.C. 3018C(a), (b), 5113)
    * * * * *
    
    Subpart L--Educational Assistance for Members of the Selected 
    Reserve
    
        13. The authority citation for part 21, subpart L continues 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.
    
        14. In Sec. 21.7520, paragraph (b)(23)(iv) is amended by removing 
    ``during the period beginning on November 2, 1994, and ending on 
    September 30, 1996,''; and the authority citation for paragraph (b)(23) 
    is revised to read as follows:
    
    
    Sec. 21.7520  Definitions.
    
    * * * * *
    
    [[Page 63258]]
    
        (b) * * *
        (23) * * *
    
    (Authority: 10 U.S.C. 16131(a), (c); 38 U.S.C. 3002, 3452)
    * * * * *
        15. In Sec. 21.7635, paragraph (y) is redesignated as paragraph 
    (z); and a new paragraph (y) is added, to read as follows:
    
    
    Sec. 21.7635  Discontinuance dates.
    
    * * * * *
        (y) Election to receive educational assistance under 38 U.S.C. 
    chapter 30. VA shall terminate educational assistance effective the 
    first date for which the reservist received educational assistance 
    when--
        (1) The service that formed a basis for establishing eligibility 
    for educational assistance under 10 U.S.C. chapter 1606 included a 
    period of active duty as described in Sec. 21.7020(b)(1)(iv); and
        (2) The reservist subsequently made an election, as described in 
    Sec. 21.7042(a)(7) or (b)(10), to become entitled to basic educational 
    assistance under 38 U.S.C. chapter 30.
    
    (Authority: Sec. 107, Pub. L. 104-275, 110 Stat. 3329-3330)
    * * * * *
    [FR Doc. 98-30287 Filed 11-10-98; 8:45 am]
    BILLING CODE 8320-01-P
    
    
    

Document Information

Published:
11/12/1998
Department:
Veterans Affairs Department
Entry Type:
Proposed Rule
Action:
Proposed rule.
Document Number:
98-30287
Dates:
Comments must be received on or before January 11, 1999.
Pages:
63253-63258 (6 pages)
RINs:
2900-AI63: New Eligibility Criteria for the Montgomery GI Bill--Active Duty, Other Miscellaneous Issues
RIN Links:
https://www.federalregister.gov/regulations/2900-AI63/new-eligibility-criteria-for-the-montgomery-gi-bill-active-duty-other-miscellaneous-issues
PDF File:
98-30287.pdf
CFR: (15)
38 CFR 21.7042(a)(7)
38 CFR 21.7045(d)(2)
38 CFR 21.5021(e))
38 CFR 21.7042(f)(3)
38 CFR 21.4135
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