What You Need to Know About GI Bill 2.0

The week before significant changes to Post-9/11 GI Bill benefits were set to take effect on Aug. 1, Congress passed last-minute legislation aimed at softening the effect of the changes on one group of veterans. While veterans' advocates have applauded the legislation, they vow to continue to work on behalf of other veterans who are still facing significant reductions in benefits.

GI Bill 2.0: The background

"GI Bill 2.0," as it is known, was signed by President Obama on January 4, 2011, and significantly increased some of the benefits available under the Post-9/11 GI Bill, including expanding the range of programs covered under that program, extending benefits to eligible National Guard members and offering a housing allowance to online students.

In recent weeks, however, veterans groups have focused on students who stood to lose benefits under GI Bill 2.0, a number of whose provisions went into effect on Aug. 1. Two groups of veterans may be affected: those attending out-of-state public schools, because the new rules only allow veterans to receive the in-state tuition rate; and those at private schools in seven states, where new limits on contributions from the Department of Veterans Affairs (VA) are lower than before.

July legislation changes August benefits picture

For veterans in these two categories already enrolled in school, the changes meant that finishing a degree might mean taking on sigificant debt. But in late July, Congress passed H.R.1383, the Restoring GI Bill Fairness Act of 2011, which grandfathered thousands of veteran scholars who were negatively affected by these GI Bill changes. The new legislation allows students accepted at private schools in the seven affected states (Arizona, Michigan, New Hampshire, New York, Pennsylvania, South Carolina and Texas) before Jan. 4, 2011, to continue to receive benefits under the old structure.

However, students paying out-of-state tuition at state schools or enrolled in especially expensive programs such as aviation and medicine are still exposed to the higher costs because of the changes.

"The changes in regulations for H.R.1383 are a step in the right direction and great news for thousands of veterans; however, there is still more work to be done to ensure that all deserving veterans are covered," said Tom Tarantino, senior legislative associate for the veterans advocacy group Iraq and Afghanistan Veterans of America (IAVA). "Out-of-state student veterans at public institutions and veterans enrolled in high-fee programs at colleges such as Embry-Riddle Aeronautical University in states such as Florida are still excluded from the grandfather clause."

IAVA firmly believes that all veterans deserve to complete their academic programs under the benefit levels they were given to plan their academic careers, Tarantino said. The group was a major advocate on Capitol Hill for H.R. 1383 and plans to keep working for legislative changes that help those veterans.

"IAVA will not stop fighting until all student-veterans get the benefits they were counting on, and we call upon Congress to introduce legislation to fix this shortcoming," Tarantino said. "In the interim, IAVA encourages states that value veterans to treat all out-of-state vets as in-state veterans. These states understand the benefits of having them at their schools and should afford them equal opportunity to complete their degrees."

GI Bill 2.0 expands benefits as well

Additional changes to the new GI Bill that take effect Oct. 1 allow veterans to use Post-9/11 GI Bill benefits for a wider range of programs, including non-college degree programs, on-the-job or apprenticeship training, flight programs and correspondence training.

These changes can benefit veterans with military experience who need specific civilian credentials or those who already have completed a college degree but may need vocational training. Additional course work or training allows veterans to qualify more quickly for civilian employment and get to work. This flexibility may give returning veterans an advantage in today's job market.

Executive Director of Student Veterans of America Michael Dakduk says that education at all levels can be a tool to combat the high unemployment rate among veterans returning from the current conflicts and is optimistic about these changes.

"The upcoming changes to the GI Bill will support veterans attending trade schools and non-degree programs," Dakduk said. "This is a comprehensive approach to fighting veterans unemployment, and Student Veterans of America has worked hard for a stronger GI Bill. We understand that not all veterans need a four-year degree, and some jobs simply do not require a bachelor's degree. These changes will occur in the coming months, and I encourage student veterans to go straight to the VA's website for answers."

Further information about GI Bill 2.0

GI Bill 2.0 makes some additional changes to Post-9/11 GI Bill benefits.

1. Covers all public school in-state tuition and fees, including graduate school.
2. Creates a national rate (rather than one that varies by state) for private or foreign schools, with an annual cap of $17,500.
3. Pays MGIB and MGIB-SR "kickers" each month, rather than in a lump sum.
4. Eliminates break pay.
5. Prorates housing allowance for less-than-full-time students based on the percentage of credits they are taking, rounded to the nearest tenth.

The official source of information concerning the changing regulations is the VA GI Bill website, which provides details on benefit procedures and policies. As GI Bill 2.0 changes go into effect, veterans' organizations are expected to continue to lobby for changes, and schools are working to accomodate the new regulations. For breaking developments, veterans should stay in touch with their school's veteran adviser, financial aid office and military associations.

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