First GI Bill 2.0 Update Scheduled for Next Week

March 5, 2011 marks the first adjustment to 2009's Post-9/11 GI Bill. This update will go into effect two months after President Obama signed the changes to the Post-9/11 GI Bill (often referred to as "GI Bill 2.0") into law. Other important dates to know in relation to GI Bill 2.0 are August 1, 2011 and October 1, 2011. Here, find out what to expect, when.

Effective March 5, 2011

On this date, the benefits of active duty members will be adjusted to match those that were previously set for veterans. Specifically, the net cost for tuition and fees (after tuition assistance) will be prorated, based on the servicemember's eligibility tier, from 40 to 100 percent.

One's GI Bill eligibility tier is based on his or her length of service. Those who meet the minimum service requirement of 90 days receive 40 percent, for example, while those who serve 36 months on active duty receive 100 percent of their eligible benefits.

Furthermore, this adjustment will apply to the spouses and dependents who are receiving transferred GI Bill benefits from an active duty servicemember.

Effective August 1, 2011

New tuition rates. The updated GI Bill rates will continue to cover public schools at the rate of the most expensive in-state tuition rate, but the benefit for all private schools will now be capped at $17,500 per year. Veterans who attend private schools that participate in the Yellow Ribbon Program will continue to receive the additional contribution amount that's set by the school and then matched by the VA--in other words, if a Yellow Ribbon School elects to offer the servicemember $5,000 above what the GI Bill covers, the VA will match those funds, up to 100 percent of his/her tuition (but not over).

Kicker payments. The new GI Bill allows the Department of Veterans Affairs to pay Montgomery GI Bill-Active Duty (MGIB-AD/Chapter 30) and Montgomery GI Bill-Selected Reserve (MGIB-SR/Chapter 1606) college fund payments, known as kickers, on a monthly basis instead of in a lump sum.

Housing allowances. In terms of housing, the new GI Bill prorates housing allowances based on the student's rate of pursuit--in other words, if a student goes to school part-time (50 percent), he or she would be eligible for 50 percent of his or her housing allowance. A student training at a rate of pursuit of 75 percent, however, would receive 80 percent of the basic allowance for housing (BAH) rate.

Veterans with service-connected disabilities should be able to choose the Post-9/11 GI Bill's monthly housing allowance instead of the Vocational Rehabilitation and Employment (VR&E/Chapter 31) subsistence pay, if eligible to participate in both programs.

Break pay. Break pay is no longer available under any Veterans Affairs military education benefits program. If a semester ends on December 15^th and classes resume on January 10^th, pay won't be available between December 16^th and January 9^th.

Certification and licensure reimbursements. The new GI Bill allows reimbursements for more than one license or certification test; as well as SAT, ACT, GMAT and LSAT admission exams.

Expanded benefits transfer. National Oceanic and Atmospheric Administration (NOAA) and Public Health Service (PHS) personnel should be able to transfer military education benefits to qualified dependents, as well.

Effective October 1, 2011

Expanded benefits coverage. The new GI Bill begins paying military education benefits to National Guard members for active service performed under Title 32 U.S.C. and section 502(f). Title 32 U.S.C. covers activities such as training, while section 502(f) involves responses to national emergencies.

Non-college degree coverage. The new GI Bill allows students to pursue non-college degrees (NCD). It should cover in-state tuition and fees at public institutions and the lesser amount between in-state tuition and fees or $17,500 at private and foreign institutions. It also pays $83 monthly for books and supplies.

On-the-job training coverage. The new GI Bill pays a monthly amount, prorated, based on program duration for on-the-job training and up to $83 per month in books and supplies. It also covers the lesser amount between in-state tuition and fees or $10,000 per academic year for flight programs, as well as the lesser amount between in-state tuition and fees or $8,500 per academic year for correspondence training.

Distance learning housing allowance. The new GI provides housing allowance to students enrolled in distance learning. This allowance should be ½ the national average BAH for an E-5 with dependents. The 2011, full-time, 100 percent eligibility rate should be $673.50.

Students on active duty should receive stipends for books and supplies, as well.

U.S. Senate Committee Shifts

A second shift that could result in changes for veterans in early 2011 is Sen. Patty Murray stepping up to become the chairwoman of the U.S. Senate Committee on Veterans' Affairs. The former chairman, Daniel Akaka, will move posts to chair the Senate Indian Affairs Committee, but will continue to be a member of the U.S. Senate Committee on Veterans' Affairs. Sen. Murray was previously a member of the U.S. Senate Committee on Veterans' Affairs as well as the Defense Appropriations Subcommittee.

"We should leave no stone unturned when it comes to easing the burdens that come with the sacrifices military families make," Sen. Murray says on her website in response to President Barack Obama's initiatives on behalf of military families. "Especially now, we need to provide worker training, education, health care, and job support. We need to let our servicemembers know we are taking care of their loved ones while they are taking care of all of ours."

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