Your Free College Degree
With added benefits and features, the new GI Bill might just be your ticket to a free college education. But it’s not the only option.
by Matthew Pavelek
On Aug. 1, the Post-9/11 GI Bill opened for business. Officially called the “Post-9/11 Veterans Education Assistance Act of 2008,” the new GI Bill is the most comprehensive education benefits package ever offered to veterans. In fact, with the added housing allowance and the innovative Yellow Ribbon Program, many veterans won’t have to spend a dime of their own money on an education.
On Aug. 3, President Barack Obama praised the implementation of the historic bill two days earlier. “And so today, we honor the service of an extraordinary generation, and look to America that they will help build tomorrow,” he said. “With the Post-9/11 GI Bill, we can give our veterans the chance to live their dreams. And we can help unleash their talents and tap their creativity and be guided by their sense of responsibility to their fellow citizens and to this country that we all love so much.”
Thousands of veterans are expected to take advantage of the benefits offered by the new bill, which was designed as a recruiting tool. It’s important to note, however, that the new GI Bill doesn’t replace the current education bill – the Montgomery GI Bill (MGIB) enacted in October 1984. Keith Wilson, director of education service for the Department of Veterans Affairs (VA), said the new program just extends the options available to service members.
“This new program is simply another program that we administer,” Wilson said. “People are still eligible for the Montgomery GI Bill. This has no impact on the Montgomery GI Bill. It is still alive and well. So, the short answer is those folks will continue to be able to use the program for the exact type of training that they are using it for now.”
Depending on your goals for your post-military career, you will need to decide which benefit is right for you. Let’s take a look at the options.
The Montgomery GI Bill vs. the Post-9/11 GI Bill
If you are considering a traditional college education in a university setting, the Post-9/11 GI Bill beats the MGIB hands down. It provides direct payment to schools and pays tuition benefits up to the highest in-state tuition for undergraduate programs at public institutions. The new bill also provides a housing allowance and book stipends. Plus, the Yellow Ribbon Program provides enhanced tuition assistance for military students who want to attend private schools and out-of-state schools. For many students, the new Post-9/11 GI Bill will translate into a free education.
But if you want to learn a skilled trade or enroll in a vocational training program not offered at colleges and universities, you need to stick with the MGIB. The Post-9/11 GI Bill only provides benefits to veterans who attend Institutes of Higher Learning (IHL): traditional degree-granting colleges and universities. There is an exception for service members who contributed to the MGIB and want to switch to the Post-9/11 GI Bill.
The first step in choosing the right benefit is to determine if you’re eligible for both.
Who is Eligible?
Not everyone who is eligible for GI Bill benefits qualifies for the new Post-9/11 GI Bill. Only veterans who served after Sept. 10, 2001, qualify. Veterans who do not qualify for the Post-9/11 GI Bill but still qualify for GI Bill education benefits will fall under the previous programs. To compensate those veterans, benefits under the current Montgomery GI Bill – Active Duty (MGIB-AD) program increased 20 percent – from $1,100 per month to $1,321 per month. In addition, $600 Buy-up Program allows some service members to contribute up to an additional $600 to the MGIB increase their monthly benefits. That $600 contribution may turn into as much as $5400 in additional benefits. The additional contribution must be made while on active duty.
To qualify for the Post-9/11 GI Bill, an individual must meet at least one of the following criteria (Not all who qualify will receive 100 percent of the benefits. The amount of time served after Sept. 10, 2001, determines the amount of eligibility. See sidebar above.):
- Active duty service members who have served more than 90 days after Sept. 10, 2001
- Retired and separated service members who have served on active duty more than 90 days after Sept. 10, 2001
- Service members and Reserve and National Guard members who have been activated for more than 90 days after Sept. 10, 2001
- Service members (active duty or Reserve) who were discharged after completing a minimum of 30 consecutive days of qualifying service after Sept. 10, 2001, and who the VA determined were discharged for a service-connected disability may qualify for the Post-9/11 GI Bill.
The following categories of active duty do not qualify for the Post-9/11 GI Bill:
- Active duty for National guardsmen under Title 32 (primarily state active duty).
- Service negotiated for loan repayment (eligibility can be attained for time served after negotiated period).
Pick Your Program
New service members must decide whether to “buy in” to the MGIB or opt for the Post 9/11 benefits. Those who choose the MGIB will contribute $1,200 ($100 per month for the first year of enlistment) from their pay. Service members who opt for the Post-9/11 bill are not required to pay into it.
Service members who select the MGIB can later switch to the Post-9/11 GI Bill and may get their $1,200 back. But service members who pick the Post-9/11 benefits cannot later switch to the MGIB. This is an important point for service members who may want to attend trade or vocational programs not offered by IHLs.
Eligibility for the MGIB lasts 10 years after the completion of active-duty service, while Post-9/11 GI Bill eligibility lasts 15 years.
Housing Allowances
Another big difference between the MGIB and Post-9/11 bills is the housing allowance. Only the Post-9/11 bill provides an allowance for housing, and only then for students who attend “brick and mortar” schools at least half of the time.
While the amount of the allowance is equivalent to the basic allowance for housing (BAH) of an E-5 with dependents, it fluctuates depending on the location of the school. For example, the housing allowance would be $1,371 per month for a student attending the University of Colorado at Boulder. But that same student attending Ohio State University in Columbus would receive only $1,000. To find the allowance for the school you plan to attend, visit www.defensetravel.dod.mil/perdiem/bah.html. Plug in the ZIP code and rank of E-5.
Service members enrolled exclusively in an online program are not eligible for the housing allowance, even if the program is offered by an IHL. Students must be enrolled at least half-time on campus to receive the allowance.
Application for Benefits
To collect any of the VA’s education benefits, a school’s program must be approved by the VA. Approval of programs may be verified by the school’s financial aid office, veteran’s assistance office or by the VA. Individuals may also determine if a school’s programs are approved on the VA’s Web site at www.gibill.va.gov.
To be eligible for benefits under any of the VA programs, students must complete VA Form 22-1990 (Application for Education Benefits) and send it to the VA regional processing office listed on the application form or file online at http://vabenefits.vba.va.gov/vonapp/main.asp. Service members may only receive one benefit at a time and may only receive a maximum total of 48 months of education benefits.
Reserve Service Members Under the MGIB-SR
Reservists who do not qualify for the Post-9/11 GI Bill may still use their benefits under the Montgomery GI Bill—Selected Reserve (MGIB-SR). The MGIB-SR provides a maximum of $329 per month (as of October 2008) not to exceed 36 months to cover education expenses. To be eligible, Reservists must have a commitment to serve for six years in the Selected Reserve or National Guard after June 30, 1985. Reservists must also complete initial active duty for training (IADT), received a high school diploma (or equivalency) and remain in good standing while serving in an active Selected Reserve unit.
Apprenticeship Programs and Vocational Education
There are still other opportunities to use the GI Bill benefits beyond a traditional college or university education. Eligible separated or retired military members receiving on-the-job or apprenticeship training may receive monthly benefits from the VA.
Under MGIB-AD, apprenticeship and on-the-job payments for prior-active duty personnel can be as high as $990.75 per month. Under MGIB-SR, Reserve and Guard members may receive payments as high as $246.75 for the first six months of similar training. A full list of rates may be found on the VA GI Bill Web site (www.gibill.va.gov/GI_Bill_Info/rates.htm).
Under the Post-9/11 GI Bill, individuals are not entitled to benefits for on-the-job or apprenticeship training. However, there is an exception for those individuals who elect the Post-9/11 GI Bill and transfer from MGIB, MGIB-SR or the Reserve Educational Assistance Program (REAP). These individuals will be paid benefits as if they are still under the program they transferred from.
Where did the GI Bill come from?
The history of the GI Bill is rooted in the history of World War I and the Great Depression. More than 3 million World War I veterans were offered an “Adjusted Service Certificate” in 1924 for compensation of the salary they might have been earned while fighting for their country. This had been the common practice for the American military since the Revolutionary War. Unfortunately, these certificates, designed to be treated like bonds, were not redeemable for 20 years.
During the Great Depression, unemployed veterans protested their unredeemable certificates. While those issues were ultimately resolved, President Franklin D. Roosevelt and Congress knew they had to establish a GI Bill of Rights to protect the new generation of veterans returning from World War II.
The Servicemen’s Readjustment Act of 1944 (the “GI Bill of Rights,” or GI Bill), became one of the most important pieces of legislation in the 20th century. Before World War II, unemployment hovered at 15 percent, more than 11 million homes didn’t have running water or electricity, and, according to the Census Bureau, fewer than 50,000 taxpayers earned more than $2,500 a year.
“[America] needed to ensure that the entire nation’s economy wasn’t hurt by the large influx of kids coming back from overseas,” said Navy Vice Admiral Daniel Cooper (Ret.), former VA under secretary for benefits, in a defense department interview. “We had to ensure that veterans were also not held back because of their military service and recognized for what they had given to the country.”
The 1944 GI Bill brought more than 16 million veterans into the middle class and contributed more than any other program to the post-war economic growth of the United States.
“The benefits then had to do with education and home and business loans, as well as unemployment payments for the first year they came back,” Cooper said. “Today, we cover a wider range of benefits for the same purposes.”
While the “GI Bill of Rights” encompassed various programs, the cornerstone of the GI Bill’s success was in education benefits.
In 1940, only 23 percent of the military had a high school diploma and only 3 percent had college degrees. Throughout the entire United States, only 160,000 Americans had a college education. By contrast, the GI Bill made education possible for 2.2 million World War II veterans. In 1950, nearly 500,000 citizens graduated college – nearly half of them veterans. Another 1.5 million veterans opted for on-the-job training.
The GI Bill is still critically important to the success of America today. The shift to a global economy, increased competition for high-wage jobs and the integration of technology in all job positions is forcing employers to look at a college degree more as a minimum requirement rather than a stand-out feature on a résumé.
“As far as the effect on our economy, the 1944 GI Bill was of major importance,” Cooper said. “The importance of the Post-9/11 GI Bill is beyond question.”
MONTGOMERY GI BILL VS. POST-9/11 GI BILL
As of Aug. 1, 2009, eligible service members and veterans have the option to use the new Post-9/11 GI Bill.
However, the new GI Bill may not be the best choice for all students. Compare the benefits carefully and choose which education benefits best suit your educational goals.
Tuition
MGIB Monthly benefit up to $1,321 per month for 36 months. These payments are made to the student during the time they are actively enrolled in school. Beginning Oct. 1, 2009, benefits will increase on Oct. 1 of each year based on increases in the average undergraduate tuition in the U.S. using data from the National Center for Education.
Post-9/11 GI Bill Benefits will match 100 percent tuition up to the cost of the most expensive public state school’s in-state undergraduate tuition. Plus, the Yellow Ribbon Program allows the schools to waive a portion of the remainder and the VA to match that waiver and increase the benefit considerably, depending on each school’s unique agreement.
Term
MGIB 36 months of eligibility.
Post-9/11 GI Bill Up to 36 months of eligibility.
Expiration of Benefits
MGIB Eligibility for benefits for 10 years after separation or retirement. Those who choose to stay with the MGIB will not receive an extension of that deadline.
Post-9/11 GI Bill Eligibility for benefits for 15 years after separation or retirement. Reservists and Guardsmen are eligible for benefits equal to active duty service members.
Living Expenses
MGIB N/A
Post-9/11 GI Bill The housing benefit paid under the Post-9/11 GI Bill is equivalent to the basic allowance for housing (BAH) of an E-5 with dependents. However, it fluctuates depending on geographic location. [Active duty members and students enrolled exclusively in online programs are not eligible].
Books
MGIB N/A
Post-9/11 GI Bill Up to $1,000 stipend per year for books and study materials.
Tutorials
MGIB Tutorial assistance is available for students attending approved institutions at least half-time and have a deficiency in a subject that makes tutoring necessary. These students can be reimbursed up to $100 per month up to a maximum of $1,200.
Post-9/11 GI Bill Up to $100 per month for tutoring (not to exceed a maximum of $1,200 total benefits).
Relocation
MGIB N/A
Post-9/11 GI Bill One-time relocation payment of $500 if the student has to move more than 500 miles from a highly rural area to attend school.
On-the-Job and Apprenticeship Training
MGIB All vocational training programs – on-the-job training, apprenticeship training, correspondence courses, flight training, preparatory courses and national exams – approved by the VA are eligible. To find out if a program you are interested in is approved, visit http://inquiry.vba.va.gov/weamspub/buildSearchInstitutionCriteria.do.
Post-9/11 GI Bill Only programs offered by institutions of higher learning (degree-granting institutions) are approved under this benefit. Only those individuals who transfer to the new benefit program from the MGIB, MGIB-SR, or REAP are eligible for benefits for on-the-job training, apprenticeship training, correspondence courses, flight training, or courses offered by institutions other than institutions of higher learning. Such individuals will be paid amounts similar to what they would have been paid under the benefit program from which they transferred. (No housing allowance and no book stipend.)
Transfer of Benefits
MGIB Education benefits under MGIB may be transferred to family members (spouse or child) if the active duty military member has served at least six years and agrees to serve another four years on active duty. (The policies for officers’ benefits will be determined by the individual military branches.)
Post-9/11 GI Bill DoD may allow an individual to elect to transfer entitlement to one or more family members (spouse or child) if the individual:
- Is a member of the Armed Forces on or after Aug. 1, 2009, and
» Has served at least six years in the Armed Forces;
» Agrees to serve at least another four years in the Armed Forces*.
- Up to 36 months of benefits may be transferred to family members in numerous combinations to multiple dependents.
*For clarification on transferability for service members who are near or eligible for retirement visit http://www.gibill.va.gov/GI_Bill_Info/CH33/Transfer.htm
Yellow Ribbon Program
MGIB All costs, fees and tuitions exceeding the MGIB payment are the responsibility of the student.
Post-9/11 GI Bill If the GI Bill does not meet the costs of a college or university, the school may participate in the “Yellow Ribbon Program.” Schools may then voluntarily waive a portion of the remaining tuition not already covered and the VA will match that contribution dollar for dollar. Only those individuals eligible for 100-percent benefit levels qualify for the Yellow Ribbon Program.