New GI Bill Frequently Asked Questions

Q: What is the Post-9/11 GI Bill?

A: Signed into law in July of 2008 with an effective date of August 1, 2009, the Post-9/11 GI Bill offers a set of benefits to servicemembers who have served on active duty for 90 or more days since Sept. 10, 2001, including current and previously activated National Guard and Reserve members.

In December 2010, Congress passed the first set of legislative changes to the Post-9/11 GI Bill. The changes are known as the Post-9/11 Veterans Education Assistance Improvement Act of 2010 or the GI Bill 2.0. Many of these changes went into effect on August 1, 2011, with the remaining ones effective on October 1, 2011.

Before the GI Bill 2.0 changes went into effect, Congress signed into law the Restoring GI Bill Fairness Act or GI Bill 2.1, which amended some of the GI Bill 2.0 changes. Answers to these questions are updated to reflect changes as a result of GI Bill 2.0 and 2.1.

Q: What specific benefits does the Post-9/11 GI Bill offer?

A: The new GI Bill offers up to 100 percent tuition and fee coverage, a monthly housing stipend, up to $1,000 a year for books and supplies and the option to transfer benefits to one or more dependents. Also, if you reside in rural counties with six people or fewer per square mile, you may qualify for a one-time relocation payment of $500.

Q: How are the new GI Bill benefits determined?

A: Post-9/11 GI Bill benefit payments are structured on a tiered system and determined by the amount of creditable active-duty service you have since Sept. 10, 2001. Because Guard or Selected Reserve members and veterans enjoy the bulk of the benefits, active duty members are encouraged to use their Tuition Assistance benefits while on active duty and wait until the conclusion of their service before applying for the Post-9/11 GI Bill.

Q: How are tuition and fees paid under the Post-9/11 GI Bill?

A: Under the new GI Bill, the VA sends tuition and fee payments directly to your school of choice. As part of GI Bill 2.0, the VA started paying all actual tuition and fees for public institutions at all levels of higher education on August 1, 2011. Previous rate caps that varied by state were eliminated.

GI Bill 2.0 also changed the payouts for private school students. Under the new system, the VA pays up to a maximum of $17,500 per year in tuition and fees. Any costs above this amount are your responsibility to pay. If you are eligible for the Yellow Ribbon program, and it is available at your school, you can use it to help pay costs not covered by the Post-9/11 GI Bill.

However under the Restoring GI Bill Fairness Act of 2011 (GI Bill 2.1), if you enrolled in a private school on or before January 4, 2011, in Arizona, Michigan, New Hampshire, New York, Pennsylvania, South Carolina or Texas, you are exempt from the $17,500 annual cap. Your tuition and fee payments will continue at the same amount up through August 1, 2014, provided you stay enrolled at the same school. After that date, if you are still in school you will be subject to the $17,500 cap.

Q: What is the Yellow Ribbon Program provision of the Post-9/11 GI Bill?

A: Out-of-pocket tuition and fees associated with education programs (especially at private schools) may exceed Post-9/11 GI Bill benefits. Schools that enter into the Yellow Ribbon Program agree to fund up to 50 percent of those additional costs. The VA agrees to match every dollar that the school pays, with the combined payout not to exceed the school's actual tuition/fees charge.

Q: Can I receive benefits when school is not in session?

A: No. One change under GI Bill 2.0 is that break or interval pay during semester breaks is eliminated. However, entitlements are not being used during the break periods either, maximizing the time you can use GI Bill benefits for classes.

Q: Does the new GI Bill provide money for housing?

A: For campus-based schools, the location of your school determines your housing allowance benefit, not your state of residence. Under GI Bill 2.0., the housing benefit is prorated based on the number of credits you are taking. For example, if you are taking 7 credits, and your school considers 12 credits to be full-time, then you would get 7/12 of the full housing allowance.

Effective October 1, 2011, distance learners, including online-only students, are eligible to receive up to $673.50 in a monthly housing allowance.

Q: Can I use the new GI Bill to pay for my books?

A: The book stipend rules have also changed. Students attending degree-producing courses get $41.67 per credit, up to the $1,000 annual cap, to use for books. Under GI Bill 2.0, students taking non-degree courses are now eligible for up to $83 per month for books and supplies.

Another change taking effect on October 1, 2011 allows active duty personnel and their spouses using transferred Post-9/11 GI Bill benefits to receive the book stipend. Under the original Post-9/11 GI Bill, they were not authorized to receive the book stipend.

Q: Can I transfer my benefits to my dependents under the new GI Bill?

A: Servicemembers who have served at least six years in the Armed Forces and who agree to an additional four-year commitment can transfer GI benefits to a spouse or other dependent. Additional eligibility requirements may apply at the discretion of the Department of Defense.

Q: Which types of training are covered under the Post-9/11 GI Bill?

A: The new GI Bill covers all degree programs and certificate programs offered by degree-granting institutions--also known as Institutions of Higher Learning (IHLs). Starting on October 1, 2011, the Post-9/11 GI Bill can also be used for non-degree programs, such as certification and licensure courses, vocational-technical training, and apprenticeship/on-the-job training programs at non-IHL training facilities.

In addition, the new GI Bill covers tutorial assistance, work-study programs, and distance learning. It may also cover flight training, correspondence courses, entrepreneurship training, and co-op training, provided the course and school are both VA-approved. Under GI Bill 2.0, certificates and diplomas granted by institutions that do not grant degrees are also covered by the Post-9/11 GI Bill.

Q: What features should I consider when choosing a GI Bill program?

A: If you chose to use the Post-9/11 GI Bill, you can't switch back to the old (Montgomery) GI Bill, so there are several factors to consider. These include the type of training you plan to undertake, the amount of benefits you can receive under each program, whether you plan on extending your benefits by 12 months, and the costs of the college, university, technical, or vocational programs that interest you. If you are unsure which program is the best choice for you, contact a Veterans Benefits Counselor at 1-888-GI-BILL-1.