The VA's Yellow Ribbon Program: What You Need to Know

One of the great provisions in the new Post 9/11 G.I. Bill is the Yellow Ribbon Program. This G.I. Bill education enhancement program allows a degree-producing Institution of Higher Learning (IHL) to enter into a tuition-funding agreement with the Veterans Administration (VA). In the written agreement, participating yellow ribbon schools determine how much of your tuition, exceeding the maximum funding rate, they wish to contribute, with the VA paying an equal amount. If you're a veteran and going to private school, graduate school, or are paying out-of-state tuition, the Yellow Ribbon Program can be a great financial boost with no reduction in entitlements.

Under the new Bill, tuition funding is set at the maximum tuition rate charged by a public school for an undergraduate program in that state. The VA Web site has a by-state listing of the maximum tuition and fees.

Eligibility Criteria: Do You Qualify for the Yellow Ribbon Program?

To participate in the Yellow Ribbon Programs, you must be a veteran at the 100 percent benefit rate. You may also qualify for the program if:

• You served at least 36 aggregate months of service after September 10, 2001.
• You were discharged with a service-connected disability after completing at least 30 continuous days of service following September 10, 2001.
• You're a Transfer of Eligibility dependent.

Working the Numbers

To put this into perspective, let's take an example of a veteran enrolled in a yellow ribbon school and taking 12 credits starting this fall. Base tuition is $6,200 with additional fees of $1,100, bringing the grand total to $7,300.

The maximum tuition rate per term for that state is $300 per credit and $750 for fees. So without the Yellow Ribbon Program, the VA would pay $4,350. This leaves $2,950 not covered. Under the Yellow Ribbon Program, the school could waive up to half this amount and the VA would pay an equal amount.

Is Your College a Yellow Ribbon School?

As of August, 2009, over 2,700 post-secondary schools had signed up for the Yellow Ribbon Program. For a full list of participating schools by state, check out the VA's interactive map. And if you plan on taking advantage of distance learning to further your education, many of the 2,000+ schools on the Yellow Ribbon Program roster offer online degree programs.