94-11079. Veterans Benefits; Eligibility for the Montgomery GI BillActive Duty  

  • [Federal Register Volume 59, Number 89 (Tuesday, May 10, 1994)]
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    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-11079]
    
    
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    [Federal Register: May 10, 1994]
    
    
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    DEPARTMENT OF VETERANS AFFAIRS
    38 CFR Part 21
    
    RIN 2900-AF30
    
     
    
    Veterans Benefits; Eligibility for the Montgomery GI Bill--Active 
    Duty
    
    AGENCY: Department of Veterans Affairs.
    
    ACTION: Final regulations.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The National Defense Authorization Act for Fiscal Year 1991 
    provides additional ways in which an individual may become eligible for 
    the Montgomery GI Bill--Active Duty. These regulations will acquaint 
    the public with the way in which VA (the Department of Veterans 
    Affairs) will administer these new provisions of law.
    
    EFFECTIVE DATE: The amendments to the following regulations, like the 
    sections of law they implement, are retroactively effective on October 
    19, 1984: Secs. 21.7042(a)(5) (v) and (vi), 21.7042(b)(6) (v) and (vi), 
    21.7042(b)(7)(i)(E) and (F), 21.7044(a)(4)(ii)(E) and (F), 
    21.7044(b)(7)(v) and (vi), 21.7044(b)(8)(i)(E) and (F) and 
    21.7072(b)(1)(iii) (D) and (E). The amendments to the remainder of the 
    regulations, as well as the new sections Secs. 21.7045 and 21.7073, 
    like the sections of law they implement, are retroactively effective on 
    November 5, 1990.
    
    FOR FURTHER INFORMATION CONTACT: June C. Schaeffer (225), Assistant 
    Director for Policy and Program Administration, Education Service, 
    Veterans Benefits Administration, Department of Veterans Affairs, 810 
    Vermont Avenue, NW., Washington, DC 20420, 202-233-2092.
    
    SUPPLEMENTARY INFORMATION: On pages 39488 through 39493 of the Federal 
    Register of July 23, 1993, there was published a notice of intent to 
    amend 38 CFR part 21 in order to implement those provisions of the 
    National Defense Authorization Act for Fiscal Year 1991 (Pub. L. 101-
    510) which affect the Montgomery GI Bill--Active Duty. Interested 
    people were given 30 days to submit comments, suggestions or 
    objections. VA received no comments, suggestions or objections.
        In the proposal VA would have redesignated several sections and 
    adopted a new Sec. 21.7073. However, after considering the fact that 
    there are references to the current Secs. 21.7073, 21.7074 and 21.7075 
    in various VA publications, all of which would have to be revised, VA 
    has decided instead to include the material which was proposed as a new 
    Sec. 21.7073 in the current Sec. 21.7073. This made many of the 
    revisions which were proposed to Sec. 21.7072 unnecessary since those 
    revisions merely inserted references to the newly designated sections. 
    The current Secs. 21.7074 and 21.7075 will retain their present 
    designations. None of the changes from the proposal are substantive. VA 
    is adopting the remainder of the proposal without change.
        Sections 561, 562 and 563 of Public Law 101-510 contain provisions 
    that will enable additional individuals to become eligible for the 
    Montgomery GI Bill--Active Duty. This is done both by creating a new 
    class of eligible veterans and by providing an additional type of 
    discharge which will qualify veterans for the program. These 
    regulations implement these sections of the act.
        The Secretary of Veterans Affairs has certified that these amended 
    regulations will not have a significant economic impact on a 
    substantial number of small entities as they are defined in the 
    Regulatory Flexibility Act (RFA), 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 regulations 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.
        VA finds that good cause exists for making the amendments to 
    Secs. 21.7042(a)(5), 21.7042(b)(6), 21.7042(b)(7), 21.7044(a)(4), 
    21.7044(b)(7), 21.7044(b)(8) and 21.7072(b)(1), like the provision of 
    law they implement, retroactively effective on October 19, 1984. VA 
    finds that good cause exists for making the remainder of the amendments 
    as well as the new sections, Secs. 21.7045 and 21.7073a, like the 
    provisions of law they implement, retroactively effective on November 
    5, 1990. These regulations are intended to achieve a benefit for 
    individuals. The maximum benefits intended in the legislation will be 
    achieved through prompt implementation. Hence, a delayed effective date 
    would be contrary to statutory design, would complicate administration 
    of the provision of law, and might result in the denial of a benefit to 
    someone who is entitled to it.
    
        The Catalog of Federal Domestic Assistance number for this 
    program is 64.124.
    
    List of Subjects in 38 CFR Part 21
    
        Civil rights, Claims, Education, Grant programs-education, Loan 
    programs-education, Reporting and recordkeeping requirements, Schools, 
    Veterans, Vocational education, Vocational rehabilitation.
    
        Approved: April 28, 1994.
    Jesse Brown,
    Secretary of Veterans Affairs.
        For the reasons set out in the preamble, 38 CFR part 21, subpart K 
    is amended as set forth below.
    
    PART 21--VOCATIONAL REHABILITATION AND EDUCATION
    
    Subpart K--All Volunteer Force Educational Assistance Program (New 
    GI Bill)
    
        1. The authority citation for part 21, subpart K continues to read 
    as follows:
    
        Authority: 38 U.S.C. chapter 30, Pub. L. 98-525; 38 U.S.C. 501.
    
        2. In Sec. 21.7020 paragraph (b)(1)(iii) and its authority citation 
    are added to read as follows:
    
    
    Sec. 21.7020  Definitions.
    
    * * * * *
        (b) Other definitions.
        (1) * * *
        (iii) When referring to individuals who, before November 30, 1989, 
    had never served on active duty (as that term is defined by Sec. 3.6b 
    of this title), the term ``active duty'' when used in this subpart 
    includes full-time National Guard duty first performed after November 
    29, 1989, by a member of the Army National Guard of the United States 
    or the Air National Guard of the United States in the servicemember'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.
    
    (Authority: 38 U.S.C. 3002(7); Pub. L. 101-510, sec. 563(b)) (Nov. 
    5, 1990)
    * * * * *
        3. In Sec. 21.7042 the introductory text is revised and its 
    authority citation is added; paragraph (a)(5)(v) is revised, paragraph 
    (a)(5)(vi) is added and the authority citation for paragraph (a) is 
    revised; paragraph (b)(6)(v) is revised, paragraph (b)(6)(vi) is added 
    and an authority citation for paragraph (b)(6) is added; paragraph 
    (b)(7)(i)(E) is revised, paragraph (b)(7)(i)(F) and an authority 
    citation for paragraph (b)(7)(i) are added and paragraph (f)(1) is 
    revised and the authority citation for paragraph (f)(1) is revised to 
    read as follows:
    
    
    Sec. 21.7042  Basic eligibility requirements.
    
        An individual must meet the requirements of this section, 
    Sec. 21.7044 or Sec. 21.7045 in order to be eligible for basic 
    educational assistance. In determining whether an individual has met 
    the service requirements of this section, VA will exclude any period 
    during which the individual is not entitled to credit for service for 
    the periods of time specified in Sec. 3.15.
    
    (Authority: 38 U.S.C. 3011, 3012, 3018A; Pub. L. 101-510) (Nov. 5, 
    1990)
    * * * * *
        (a) Eligibility based solely on active duty. * * *
        (5) * * *
        (v) Involuntarily for the convenience of the government as a result 
    of a reduction in force, as determined by the Secretary of the military 
    department concerned in accordance with regulations prescribed by the 
    Secretary of Defense or by the Secretary of Transportation with respect 
    to the Coast Guard when it is not operating as a service in the Navy, 
    or
        (vi) For a physical or mental condition that was not characterized 
    as a disability and did not result from the individual's own willful 
    misconduct but did interfere with the individual's performance of duty, 
    as determined by the Secretary of each military department in 
    accordance with regulations prescribed by the Secretary of Defense or 
    by the Secretary of Transportation with respect to the Coast Guard when 
    it is not operating as a service in the Navy.
    
    (Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
    100-689, Pub. L. 101-510) (Oct. 19, 1984)
    
        (b) Eligibility based on active duty service and service in the 
    Selected Reserve.
        (6) * * *
        (v) Involuntarily, for convenience of the Government as a result of 
    a reduction in force as determined by the Secretary of the military 
    department concerned in accordance with regulations prescribed by the 
    Secretary of Defense or by the Secretary of Transportation with respect 
    to the Coast Guard when it is not operating as a service in the Navy, 
    or
        (vi) For a physical or mental condition that was not characterized 
    as a disability and did not result from the individual's own willful 
    misconduct but did interfere with the individual's performance of duty, 
    as determined by the Secretary of each military department in 
    accordance with regulations prescribed by the Secretary of Defense or 
    by the Secretary of Transportation with respect to the Coast Guard when 
    it is not operating as a service in the Navy.
    
    (Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
    100-689, Pub. L. 101-510) (Oct. 19, 1984)
    
        (7) * * *
        (i) * * *
        (E) Involuntarily for the convenience of the Government as a result 
    of a reduction in force, as determined by the Secretary of the military 
    department concerned in accordance with regulations prescribed by the 
    Secretary of Defense or by the Secretary of Transportation with respect 
    to the Coast Guard when it is not operating as a service in the Navy, 
    or
        (F) For a physical or mental condition that was not characterized 
    as a disability and did not result from the individual's own willful 
    misconduct but did interfere with the individual's performance of duty, 
    as determined by the Secretary of each military department in 
    accordance with regulations prescribed by the Secretary of Defense or 
    by the Secretary of Transportation with respect to the Coast Guard when 
    it is not operating as a service in the Navy.
    
    (Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
    100-689, Pub. L. 101-510) (Oct. 19, 1984)
    * * * * *
        (f) Restrictions on establishing eligibility. (1) An individual 
    who, after June 30, 1985, first becomes a member of the Armed Forces or 
    first enters on active duty as a member of the Armed Forces, may elect 
    not to receive educational assistance under 38 U.S.C. ch. 30. This 
    election must be made at the time the individual initially enters on 
    active duty as a member of the Armed Forces. An individual who makes 
    such an election is not eligible for educational assistance under 38 
    U.S.C. ch. 30 unless he or she withdraws the election as provided in 
    paragraph (c) of this section or in Sec. 21.7045(b) of this part.
    
    (Authority: 38 U.S.C. 3018, 3018A; Pub. L. 100-689, Pub. L. 101-510) 
    (Nov. 5, 1990)
    * * * * *
        4. In Sec. 21.7044 paragraph (a)(4)(ii)(E) is revised, paragraph 
    (a)(4)(ii)(F) is added and the authority citation for paragraph (a)(4) 
    is revised; paragraph (b)(7)(v) is revised and paragraph (b)(7)(vi) and 
    an authority citation for paragraph (b)(7) are added; paragraph 
    (b)(8)(i)(E) is revised and paragraph (b)(8)(i)(F) and an authority 
    citation for paragraph (b)(8)(i) are added to read as follows:
    
    
    Sec. 21.7044  Persons with 38 U.S.C. ch. 34 eligibility.
    
    * * * * *
        (a) Eligibility based solely on active duty. * * *
        (4) * * *
        (ii) * * *
        (E) Involuntarily for convenience of the government as a result of 
    a reduction in force, as determined by the Secretary of the military 
    department concerned in accordance with regulations prescribed by the 
    Secretary of Defense or by the Secretary of Transportation with respect 
    to the Coast Guard when it is not operating as a service in the Navy, 
    or;
        (F) For a physical or mental condition that was not characterized 
    as a disability and did not result from the individual's own willful 
    misconduct but did interfere with the individual's performance of duty, 
    as determined by the Secretary of each military department in 
    accordance with regulations prescribed by the Secretary of Defense or 
    by the Secretary of Transportation with respect to the Coast Guard when 
    it is not operating as a service in the Navy.
    
    (Authority: 38 U.S.C. 3011; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
    100-689, Pub. L. 101-510) (Oct. 19, 1984)
    * * * * *
        (b) Eligibility based on combined active duty service and service 
    in the Selected Reserve.
    * * * * *
        (7) * * *
        (v) Involuntarily, for the convenience of the government as a 
    result of a reduction in force as determined by the Secretary of the 
    military department concerned in accordance with regulations prescribed 
    by the Secretary of Defense or by the Secretary of Transportation with 
    respect to the Coast Guard when it is not operating as a service in the 
    Navy, or
        (vi) For a physical or mental condition that was not characterized 
    as a disability and did not result from the individual's own willful 
    misconduct but did interfere with the individual's performance of duty, 
    as determined by the Secretary of each military department in 
    accordance with regulations prescribed by the Secretary of Defense or 
    by the Secretary of Transportation with respect to the Coast Guard when 
    it is not operating as a service in the Navy.
    
    (Authority: 38 U.S.C. 3012; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
    100-689, Pub. L. 101-510) (Oct. 19, 1984)
    
        (8) * * *
        (i) * * *
        (E) Is discharged involuntarily for the convenience of the 
    government as a result of a reduction in force, as determined by the 
    Secretary of the military department concerned in accordance with 
    regulations prescribed by the Secretary of Defense or by the Secretary 
    of Transportation with respect to the Coast Guard when it is not 
    operating as a service in the Navy, or
        (F) Is discharged for a physical or mental condition that was not 
    characterized as a disability and did not result from the individual's 
    own willful misconduct but did interfere with the individual's 
    performance of duty, as determined by the Secretary of each military 
    department in accordance with regulations prescribed by the Secretary 
    of Defense or by the Secretary of Transportation with respect to the 
    Coast Guard when it is not operating as a service in the Navy; or
    
    (Authority: 38 U.S.C. 3012; Pub. L. 98-525, Pub. L. 99-576, Pub. L. 
    100-689, Pub. L. 101-510) (Oct. 19, 1984)
    * * * * *
        5. Section 21.7045 and its authority citations are added to read as 
    follows:
    
    
    Sec. 21.7045  Eligibility based on involuntary separation.
    
        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 if he or she meets the requirements of this 
    section.
        (a) Service requirements. The individual must--
        (1) Be on active duty or full-time National Guard duty on September 
    30, 1990, and
        (2) After February 2, 1991, be involuntarily separated, as that 
    term is defined in 10 U.S.C. 1141, with an honorable discharge.
    
    (Authority: 10 U.S.C. 1141, 38 U.S.C. 3018A; Pub. L. 101-510) (Nov. 
    5, 1990)
    
        (b) Required election. (1) If the individual elected not to receive 
    educational assistance under 38 U.S.C. ch. 30, as provided in 
    Sec. 21.7042(f), he or she must irrevocably withdraw that election. The 
    withdrawal must--
        (i) Occur before the involuntary separation, and
        (ii) Be pursuant to procedures which the Secretary of each military 
    department shall provide in accordance with regulations prescribed by 
    the Secretary of Defense or which the Secretary of Transportation shall 
    provide with respect to the Coast Guard when it is not operating as a 
    service in the Navy.
        (2) If the individual is a participant in the educational program 
    provided in 38 U.S.C. ch. 32, the individual must make an irrevocable 
    election to receive educational assistance under 38 U.S.C. ch. 30 
    rather than under 38 U.S.C. ch. 32. Such an election must--
        (i) Occur before the individual is involuntarily separated, and
        (ii) Be pursuant to procedures which the Secretary of each military 
    department shall provide in accordance with regulations prescribed by 
    the Secretary of Defense or which the Secretary of Transportation shall 
    provide with respect to the Coast Guard when it is not operating as a 
    service in the Navy.
        (3) If the individual is not described in either paragraph (b)(1) 
    or (b)(2) of this section, he or she must make an irrevocable election 
    to receive educational assistance under 38 U.S.C. ch. 30. This election 
    must--
        (i) Occur before the individual is involuntarily separated, and
        (ii) Be pursuant to procedures which the Secretary of each military 
    department shall provide in accordance with regulations prescribed by 
    the Secretary of Defense or which the Secretary of Transportation shall 
    provide with respect to the Coast Guard when it is not operating as a 
    service in the Navy.
    
    (Authority: 38 U.S.C. 3018A(a); Pub. L. 101-510) (Nov. 5, 1990)
    
        (c) Reduction in basic pay. The basic pay of anyone who makes one 
    of the irrevocable elections described in paragraph (b) of this section 
    must be reduced by $1,200. If through error or other reason the basic 
    pay of an individual described in paragraphs (a) and (b) of this 
    section is not reduced by $1,200, the failure to make the reduction 
    will not affect the individual's eligibility for educational assistance 
    under 38 U.S.C. ch. 30.
    
    (Authority: 38 U.S.C. 3018A(b); Pub. L. 101-510) (Nov. 5, 1990)
    
        (d) Educational requirement. (1) Before the date on which VA 
    receives the individual's application for benefits, the individual must 
    have completed successfully either--
        (i) The requirements of a secondary school diploma (or equivalency 
    certificate), or
        (ii) 12 semester hours (or the equivalent) in a program of 
    education leading to a standard college degree.
        (2) If a veteran has not met the requirements of paragraph (d)(1) 
    of this section at the time of his or her application for educational 
    assistance, he or she will be permitted to apply at a later date after 
    those requirements are met.
    
    (Authority: 38 U.S.C. 3018A(a); Pub. L. 101-510) (Nov. 5, 1990)
    
        6. In Sec. 21.7072 paragraph (b)(1)(iii)(D) is revised, paragraph 
    (b)(1)(iii)(E) is added and the authority citation for paragraph (b)(1) 
    is revised to read as follows:
    
    
    Sec. 21.7072  Entitlement to basic educational assistance.
    
    * * * * *
        (b) Entitlement: individual discharged for service-connected 
    disability, a medical condition which preexisted service, hardship or 
    involuntarily for the convenience of the government as a result of a 
    reduction in force. (1) * * *
        (iii) * * *
        (D) Involuntarily for convenience of the government as a result of 
    a reduction in force, as determined by the Secretary of the military 
    department concerned in accordance with regulations prescribed by the 
    Secretary of Defense or by the Secretary of Transportation with respect 
    to the Coast Guard when it is not operating as a service in the Navy, 
    or;
        (E) For a physical or mental condition that was not characterized 
    as a disability and did not result from the individual's own willful 
    misconduct but did interfere with the individual's performance of duty, 
    as determined by the Secretary of each military department in 
    accordance with regulations prescribed by the Secretary of Defense or 
    by the Secretary of Transportation with respect to the Coast Guard when 
    it is not operating as a service in the Navy.
    
    (Authority: 38 U.S.C. 3013(a))
    * * * * *
        7. Section 21.7073 is revised to read as follows:
    
    
    Sec. 21.7073  Entitlement for some individuals who establish 
    eligibility during the open period or who establish eligibility before 
    involuntary separation.
    
        (a) Individuals who establish eligibility during the open period. 
    (1) The provisions of this paragraph apply to a veteran or 
    servicemember who:
        (i) Establishes eligibility by withdrawing an election not to 
    enroll as provided in Sec. 21.7042(c);
        (ii) Has less than $1,200 deducted from his or her military pay; 
    and
        (iii) Before completing the period of service which the individual 
    was obligated to service on December 1, 1988, the individual:
        (A) Is discharged or released from active duty for a service-
    connected disability, a medical condition which preexisted that 
    service, or hardship; or
        (B) Is discharged or released from active duty for the convenience 
    of the Government after completing not less than 20 months of that 
    period of service, if that period was less than three years, or 30 
    months, if that period was at least three years; or
        (C) Is involuntarily discharged or released from active duty for 
    convenience of the Government as a result of a reduction in force, as 
    determined by the Secretary concerned in accordance with regulations 
    prescribed by the Secretary of Defense or by the Secretary of 
    Transportation with respect to the Coast Guard when it is not operating 
    as a service in the Navy.
    
    (Authority: 38 U.S.C. 3301(c))
    
        (2) A veteran described in paragraph (a)(1) of this section is 
    entitled to a number of months of basic educational assistance (or 
    equivalent thereof in part-time basic educational assistance) equal to 
    the lesser of:
        (i) A number of months determined by multiplying 36 by a fraction 
    the numerator of which is the amount by which the basic pay of the 
    individual has been reduced as provided in Sec. 21.7042(e)(2) and the 
    denominator of which is $1,200, or
        (ii) The number of months the veteran has served on continuous 
    active duty after June 30, 1985.
    
    (Authority: 38 U.S.C. 3013(c))
    
        (b) Individuals who establish eligibility following involuntary 
    separation. (1) The provisions of this paragraph apply to a veteran who 
    establishes eligibility by meeting the provisions of Sec. 21.7045 of 
    this part.
    
    (Authority: 38 U.S.C. 3018A)
    
        (2) A veteran described in paragraph (b)(1) of this section is 
    entitled to a number of months of basic educational assistance (or 
    equivalent thereof in part-time basic educational assistance) equal to 
    the lesser of--
        (i) 36 months, or
        (ii) The number of months the veteran served on active duty.
    
    (Authority: 38 U.S.C. 3013)
    
        8. In Sec. 21.7136 paragraph (a)(1) and its authority citation are 
    revised, the introductory text of paragraph (c) is revised, and 
    paragraphs (d) (1) and (2) and (e) and the authority citations for 
    paragraphs (d) and (e) are added to read as follows:
    
    
    Sec. 21.7136  Rates of payment of basic educational assistance.
    
        (a) Rates. (1) Except as otherwise provided in this section and 
    Sec. 21.7137, the monthly rate of the basic educational assistance 
    payable to a veteran is the rate stated in these tables. The rates in 
    these tables and the other rates in this paragraph also apply to a 
    veteran who formerly was eligible under 38 U.S.C. ch. 34, and who has 
    received a record-purpose charge against his or her entitlement under 
    that chapter equal to the entitlement he or she had remaining on 
    December 31, 1989. The rates in these tables as well as the other rates 
    listed in this paragraph always apply to a veteran who establishes 
    eligibility under Sec. 21.7045 before an involuntary separation, 
    regardless of the length of the veteran's initial obligated period of 
    active duty or whether or not the veteran was once eligible for 
    educational assistance allowance under 38 U.S.C. ch. 34.
        (i) For training which occurred before October 1, 1991, the 
    following table applies.
    
    ------------------------------------------------------------------------
                  Training                           Monthly rate           
    ------------------------------------------------------------------------
    Full time..........................  $300.                              
    \3/4\ time.........................  225.                               
    \1/2\ time.........................  150.                               
    Less than \1/2\ but more than \1/4\  150 See Sec. 21.7136 (d) or (e).   
     time.                                                                  
    \1/4\ time.........................  75 See Sec. 21.7136 (d) or (e).    
    ------------------------------------------------------------------------
    
        (ii) For training which occurs after September 30, 1991, the 
    following table applies.
    
    ------------------------------------------------------------------------
                 Training                            Monthly rate           
    ------------------------------------------------------------------------
    Full time..........................  $350.00.                           
    \3/4\ time.........................  262.50.                            
    \1/2\ time.........................  175.00.                            
    Less than \1/2\ but more than \1/4\  175.00 See Sec. 21.7136 (d) or (e).
     time.                                                                  
    \1/4\ time or less.................  87.50 See Sec. 21.7136 (d) or (e). 
    ------------------------------------------------------------------------
    
    (Authority: 38 U.S.C. 3015)
    * * * * *
        (c) Increase in basic educational assistance rates (``kicker''). 
    The Secretary concerned may increase the amount of basic educational 
    assistance payable to an individual who has a skill or specialty which 
    the Secretary concerned designates as having a critical shortage of 
    personnel or for which it is difficult to recruit. The amount of the 
    increase is set by the Secretary concerned, but (except as provided in 
    paragraph (e) of this section)--
    * * * * *
        (d) Less than one-half-time training and rates for servicemembers. 
    The monthly rate for a veteran who is pursuing a course on a less than 
    one-half time basis or the monthly rate for a servicemember who is 
    pursuing a program of education is the lesser of--
        (1) The monthly rate stated in either paragraph (a) or (b) of this 
    section (as determined by the veteran's or servicemember's initial 
    obligated period of active duty) plus any additional amounts that may 
    be due under paragraph (c) or (e) of this section, or
        (2) The monthly rate of the cost of the course.
    * * * * *
    (Authority: 38 U.S.C. 3015, 3032)
    
        (e) Increase in basic educational assistance rates (``kicker'') for 
    those eligible under Sec. 21.7045. A veteran who formerly was eligible 
    to receive educational assistance under 38 U.S.C. ch. 32, and becomes 
    eligible for educational assistance under 38 U.S.C. ch. 30 as described 
    in Sec. 21.7045(b)(2), may receive an increase in basic educational 
    assistance allowance (kicker). The increase will be determined as 
    follows.
        (1) The basis of the increase will be that portion of the amount of 
    money--
        (i) Which remains in the VEAP fund after the veteran has been paid 
    all assistance due him or her under 38 U.S.C. ch. 32 and refunded all 
    of his or her contributions to the VEAP fund, and--
        (ii) Which represents the Secretary of Defense's additional 
    contributions for the veteran as stated in Sec. 21.5132(b)(3) of this 
    part.
        (2) For a student pursuing a program of education by residence 
    training--
        (i) VA will determine the monthly rate of the increase by dividing 
    the amount of money described in paragraph (e)(1) of this section by 
    the number of months of entitlement to educational assistance under 38 
    U.S.C. chapter 30 which the veteran has at the time his eligibility for 
    benefits under 38 U.S.C. chapter 30 is first established;
        (ii) VA will use the monthly rate of the increase determined in 
    paragraph (e)(2)(i) of this section if the veteran is pursuing his or 
    her program full time;
        (iii) VA will multiply the monthly rate determined by paragraph 
    (e)(2)(i) of this section by .75 for a student pursuing his or her 
    program three-quarter time;
        (iv) VA will multiply the monthly rate determined by paragraph 
    (e)(2)(i) of this section by .5 for a student pursuing his or her 
    program half time; and
        (v) VA will multiply the monthly rate determined by paragraph 
    (e)(2)(i) of this section by .25 for a student pursuing his or her 
    program less than one-half time.
        (3) For a veteran pursuing cooperative training VA will multiply 
    the rate determined by paragraph (e)(2)(i) of this section by .8.
        (4) For a veteran pursuing a program of apprenticeship or other on-
    job training VA will multiply the monthly rate determined by paragraph 
    (e)(2)(i) of this section
        (i) By .75 for a veteran in the first six months of pursuit of 
    training,
        (ii) By .55 for a veteran in the second six months of pursuit of 
    training, and
        (ii) By .35 for a veteran in the remaining months of pursuit of 
    training.
    
    (Authority: 38 U.S.C. 3015(e))
    
    [FR Doc. 94-11079 Filed 5-9-94; 8:45 am]
    BILLING CODE 8320-01-P