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Why Is My Army College Fund Payment Less Than I Expected?

March 12th, 2010
by Ron Kness
How exactly is the Army College Fund (ACF) paid out when using the Post-9/11 GI Bill? After nearly 2 semesters of waiting, the VA finally processed my ACF back-pay. I was excited as I had been scraping by for months, though I was shocked to see the amount was significantly less than the amount expected when I had made my education plans. These plans were made well in advance of deciding to go back to school, using different sources found on the Internet as a guide as well as a veterans representative from my planned school. All guides had shown that to figure the monthly ACF rate, you’d take the Total ACF amount divided by term of the GI Bill, which in my case was $40,000 / 36 months for a rate of $1111.11. All references to the the Post 9/11 GI Bill I have found say this formula remains the same and that the “kicker” amount is added each month onto the BAH stipend. After talking to several VA representatives, they informed me they do not calculate the rate, but that it is sent to them from the Army, and they figured this out by when I signed the contract. The rate in this case came to $461.11, which is dramatically less than expected. They also informed me this kicker is paid lump sum with the book allowance at the beginning of each term, and that these College funds are not “in addition to” the GI Bill but rather an “average” and that my kicker amount was actually quite high. Now, this is contrary to what I was told back when I enlisted 10 years ago, and if this is true I feel somehow cheated as I took the “extra college money” over a large enlistment bonus because I saw it as an investment. — Nicholas

Nicholas, from everything I’ve read, you are correct in your calculations – Total ACF divided by 36 months. I’m assuming you went the full term of your enlistment.  If not, then your ACF was reduced on a month-by-month basis and that could account for the lesser amount you are receiving.

As a recourse, you can send a copy of your college fund contract to the VA Regional Office servicing your area. They are right in saying they do not calculate the amount, they receive that figure from the Army, however, the Army may have calculated it wrong or sent the VA the wrong paperwork.  I would pursue it and let the VA tell you whether your amount is correct or not according to your paperwork.

As far as when you should get your kicker money Nickolas, it should come monthly as part of your Post 9/11 GI Bill housing allowance payment, however, under the MGIB, it is paid in a lump sum – different GI Bill, different rules.

This might be also something you want to look at. Even though the expiration date was the end of 2009, you don’t have anything to lose by trying it.

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Posted in New GI Bill, Veterans Education Benefits | 2 Comments »

2 Responses to “Why Is My Army College Fund Payment Less Than I Expected?”

  1. David says:
    March 17, 2010 at 10:51 am

    I spoke with someone from VA for the about the same reasons. One response I received from them was that the DOD will calculate the amount of the GI Bill at the time of enlistment, which in my case was Year 2000. It was $552 then. Multiply that by 36 gives you total GI Bill…$19872. Subtract that from $40,000ACF…$20128 is the total amount of kicker…divided by 36 months….$559.11 should be monthly payment Even doing this calculation my actual payment is far less than this amount. Now there are also other things figured into it like inflation, cost of living, etc that has raised the GI Bill, so you would think that it would be more not less, right? I was also told similar things by VA…I have no good answer why. Phone number for DOD education incentives is 1-800-872-8272. They are the ones who make the calculations. There is obviously something else figured into it but I couldn’t tell you what. By the way I get the chapter 30 benefits, which is the regular MGIB and the kicker is added into each monthly payment.

  2. Mike says:
    June 30, 2010 at 11:21 am

    I have been trying to figure this out as well. I also have the $40,000 ACF and after two semesters in school i was expecting a few thousand but i only received a little over $1,100.

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