bullet The New GI Bill: Auspicious Beginnings

GI Bill Cheat Sheet


On August 1, 2009, the Post-9/11 GI Bill became the most comprehensive education benefit program available to many veterans, active-duty servicemembers and eligible family members. For some military personnel, the New GI Bill (Chapter 33) offers a higher level of benefits and replaces the older Montgomery GI Bill MGIB, Chapter 30). For others, the MGIB serves their education goals better, and they may elect to continue using the older benefit program.

A revised version of the new GI Bill, known as the Post-9/11 Veterans Education Assistance Improvement Act, was signed into law on January 4, 2011. With provisions going into effect in March, August and October of 2011, GI Bill 2.0, as it is known, could change the way veterans use their benefits.

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Beginning October 1, 2011, the Post-9/11 GI Bill expands to cover non-degree courses taught at all VA-approved schools. Prior to October 1, non-degree courses were only covered by the Post-9/11 GI Bill if they were taught at an institution of higher learning (IHL) that also taught degree producing programs.

In all cases, veterans and servicemembers should weigh their options before deciding which VA GI Bill to use. While servicemembers can switch from the MGIB to the Post-9/11 GI Bill, once the switch is in place, it cannot be reversed.

Am I Eligible for the Post-9/11 GI Bill?

To be eligible for the Post-9/11 GI Bill, servicemembers must receive an honorable discharge and meet one of the two following conditions:

  • Serve at least 90 days on active duty after September 10, 2001, or
  • Serve at least 30 days on active duty after the same date and be released with a service-connected disability

The Post-9/11 GI Bill: New Features, Better Benefits

For those who meet the eligibility requirements, the Post-9/11 GI Bill includes 36 months of education benefits. With the New GI Bill, the percentage the VA pays varies with the amount of active duty time served after September 10, 2001; the minimum of 90 days gets the veteran 40 percent of his or her tuition and eligible fee expenses paid by the VA. Thirty-six months of service or more raises the benefit level to 100 percent. Service time in between equates to a benefit level between 40 and 100 percent. Students using transferred benefits inherit the same tier percentage as the sponsor transferring the benefits.
Post-9/11 GI Bill benefits offer:

  • Tuition and fees paid by the VA directly to a public school, up to the student's tier percentage, at the in-state rate for undergraduate through doctorate programs.
  • Private school tuition and fees up to $17,500 per year. A limited exemption to this cap allows students enrolled on or before January 4, 2011 in the states of AZ, MI, NH, NY, PA, SC and TX to receive the higher tuition and fee payments they were eligible for before GI Bill 2.0. Their tuition/fee payments should remain unchanged through August 1, 2014 as long as they remain enrolled in the same school.
  • A monthly housing allowance based on the school's zip code, paid at the E-5-with-dependents rate. The housing allowance amount is determined by the number of credits a student takes. Full-time distance learning students, including those taking only online courses, are eligible to start receiving a limited monthly housing allowance of $673.50 after October 1, 2011. Students enrolled less than full-time receive a prorated amount based on the number of credits taken. Active duty members and their spouses do not qualify for either housing allowance.
  • A book stipend of up to $1,000 per academic year for students taking degree-producing courses. GI Bill 2.0 allows active duty members and spouses to qualify for the book stipend as well.

An additional key feature of the Post-9/11 GI Bill is the transfer-of-benefits provision. This option allows servicemembers to transfer their GI Bill benefits to eligible family members. The transfer election must be take place and be approved while the servicemember is still in the military, but once complete, the family member is eligible for all Post-9/11 GI Bill education benefits that were available to the servicemember.

The Yellow Ribbon Program

Another new feature in the latest version of the GI Bill is the Yellow Ribbon Program. This is a generous feature if you:

  • Attend a private school
  • Are in a graduate studies program
  • Pay non-resident tuition

Yellow Ribbon schools have an agreement with the VA where the school can pay up to 50 percent of the difference between what the school charges in tuition/fees and what the VA pays. The VA agrees to pay an equal amount, leaving the student with reduced out-of-pocket costs. Yellow Ribbon schools offer a wide array of both undergraduate and graduate degree programs as well as online education options. The Yellow Ribbon program can be a financial lifeline for students paying non-resident or private school tuition.
The Post-9/11 GI Bill offers a means for veterans, military members and dependent family members to reach their educational goals. Veterans' service to their country qualifies them for some of the best education benefits available. Taking advantage of these benefits, including the GI Bill, and completing an education is one of the best investments veterans can make in their future.

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This list does not include all schools that accept GI Bill funding. For a more complete list of schools, click here.
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