Paying for college just got easier for thousands of American service members and veterans, thanks to recent legislation that dramatically improves education benefits for personnel who’ve served on active duty since 11 September 2001. The Post-9/11 Veterans Education Assistance Act will provide an increased monthly benefit that more accurately reflects today’s college costs, a $1,000-per-year stipend for books and supplies, and an additional monthly stipend based on the housing allowance for the school’s geographic location. Additionally, the measure eliminates the enrollment fee and includes the ability for eligible career service members to transfer the education benefit to their spouses and children.

“The transferability component of this legislation is a welcome improvement to the existing military benefit package,” said FRA’s National Executive Director Joe Barnes of the education provisions included as part of a supplemental war spending measure. “Active duty and reserve personnel are very excited about the possibility of transferring their education benefit to their spouses and/or children.”

Among other important provisions, the legislation also opens the benefit to service members who were not previously eligible for education benefit.  The new law authorizes those with qualifying service who previously declined enrollment in the Montgomery GI Bill (MGIB) or the Veterans Education Assistance Program (VEAP) an opportunity to enroll in the new program with no enrollment fee.

"FRA has been out front in securing an additional enrollment opportunity for the thousands of military members who are currently without education benefits," said Barnes. "Those who did not elect to participate in MGIB or VEAP early in their careers had no access to one of the most valuable benefits of military service – until now. The new Post 9/11 benefit is a significant legislative victory that is very important to our members, particularly now that the benefit is transferable to spouses and children."

FRA thanks Sen. Jim Webb (Va.), who initially proposed many of the enhancements included in the final legislation, and the many members of Congress and their staff who worked tirelessly to advance these provisions. These enhancements are also a direct result of strong and unified legislative advocacy efforts by the FRA and other military and veterans associations.

FRA worked closely with members of Congress, The Military Coalition and the Partnership for Veterans Education to advance military education reform. FRA’s legislative efforts included testimony before several House and Senate committees and subcommittees, one-on-one meetings with members of Congress and their staff, as well as generating grassroots support for a variety of provisions that were eventually approved in the final bill. Members of FRA’s National Board of Directors specifically addressed the importance of educational enhancements and the need to offer an additional enrollment opportunity for VEAP-era personnel when they met with their respective members of Congress in April. Additionally, FRA’s recent online survey of nearly 1,000 active duty and Reserve component personnel revealed that transferability of education benefits to family members is extremely important to military personnel. FRA is reviewing the extensive details of the legislation and will closely monitor implementation of the new program, which is slated to begin on 1 August 2009. FRA continues its work to ensure adequate funding for the expanded education benefit.

Provisions of the New Education Benefit
The Post-9/11 Veterans Education Assistance Act, often referred to as the Post-9/11 GI Bill, is the most significant improvement to the military education benefit since the inception of the original GI Bill in 1944.  Here are the basic parameters of the new benefit:

The Tuition Benefit is Richer:  The total monthly benefit will vary based on educational program and location. Under the Post-9/11 program, tuition payments will cover full tuition and fees up to the cost of the highest in-state tuition for a four-year public university or college in each state, and will increase annually based on rising tuition costs. These payments will go directly to the college or university, rather than to the student. The benefit, payable for up to 36 months, will also include a $1,000-per-year stipend for books and supplies for full-time students (payable directly to the student), and an additional monthly stipend based on the housing allowance  (BAH) for the school’s geographic location. The housing stipend will be equal to the local BAH rate for a married E-5 and will be paid to students living in dormitories or in off-campus quarters. Active duty students will not be eligible for the housing and book/supply stipends. Additionally, the housing stipend is not authorized for students taking online courses or those who are going to school at half-time or less.

The measure also includes a one-time payment of up to $2,000 to cover the cost of certification or licensing exams, and up to $100 per month ($1,200 maximum) for tutoring. The total benefit is worth an average of $80,000, which is more than double the current maximum benefit under MGIB. VA officials estimate the average monthly benefit will total $2,100.

In most cases, the new Post-9/11 program will provide a significantly more generous benefit that the current MGIB, however there may be exceptions. MGIB benefits are being increased by 20 percent effective 1 August 2008, raising the full monthly payment from $1,101 to $1,321. Students who enjoy lower tuition rates or have tuition waived may be better off to remain under the existing MGIB program.  MGIB could also be a better deal for those attending school in areas where housing costs are low. Eligible service members and veterans will be given the option of maintaining their current MGIB eligibility or accepting the new Post-9/11 benefit.

Those who've already started using their MGIB benefits will be able to transfer any remaining benefits to the new program when it goes into effect and receive the higher benefit.

There are some types of education, such as on-the-job and vocational training, that are not covered by the new program. DoD officials will continue to encourage service members to enroll in the MGIB program if they are considering non-traditional education programs in the future.

Benefits Can Be Transferred to Family Members:  The provision generating the biggest buzz among service members is the authorization to transfer their education benefits to spouses and children. Qualifying military personnel who’ve served six years and commit to another four years may transfer all or a portion of the entitlement to a spouse. At the end of the 10-year period, the benefit can also be transferred to children. Based on discussions with congressional staff members, the benefit can be divided in full or partially.  For example, eligible service members may use a portion of the benefit and then divide the remainder between a spouse and child. Or the entire benefit may be transferred to a spouse or divided among several children.

Transferability will only be available to those on active duty or in drill status as of 1 August 2009, the effective date of the law. As a result, transferability will not be offered to retired or separated service members. Service members who served three years after 11 September 2001 and then retired are eligible for the new benefit for themselves, but are not authorized to transfer the benefit to family members.

FRA will closely monitor implementation of the new benefit, particularly the transferability component. The law authorizes the Department of Defense (DoD) to define the standards for transferability, which leaves the door open for longer service commitments or other requirements that may limit eligibility for transferring the benefit. Prior to enactment DoD opposed the transferability option, citing a potentially negative impact on retention. DoD granted the authority for individual services to transfer the MGIB benefit six years ago, but no additional funding was authorized. Since then, only the Army has used the transferability option, and only for service members with critical skills. FRA is encouraging DoD to honor the legislative intent of the transferability provision.

More Service Members are Eligible:  The new benefit takes effect 1 August 2009 and the level of benefit is determined by the total length of service after 11 September 2001. In order to qualify, military personnel must have 90 days cumulative service since 9/11. Those who’ve served 90 to 180 days after 9/11 are eligible for 40 percent of the new benefit, with the benefit prorated to reflect longer service. (See chart.) To qualify for the full benefit, service members must have at least 36 months of active duty service after 9/11. Those who've separated since then because of a service-connected disability and served a minimum of 30 consecutive days may also qualify for the full benefit.

If you have questions about your eligibility for the new program, visit www.gibill.va.gov or call 1-888-GI-BILL-1 (1-888-442-4551) to speak with a representative who can discuss your specific eligibility status.

Only post-9/11 service counts toward the new benefit. For those who served less than three years after 11 September 2001, the following chart outlines the portion of tuition, books and living stipend available for cumulative periods of service:

FRA is particularly excited about the inclusion of VEAP-era personnel and others who do not currently have access to MGIB benefits. Qualifying members of the guard and Reserve who are not eligible for the existing MGIB benefit will also be able to take advantage of the new benefit, prorated to reflect their length of service. Additionally, the new legislation includes a 20-percent increase in MGIB-Selected Reserve (MGIB-SR) benefit for members of the Reserve component who have not been mobilized.

The Enrollment Fee is Gone:  To participate in the current MGIB program, active-duty service members must pay $100 per month for the first 12 months of their military service.  New recruits are forced to make an irrevocable decision about their future education plans and many elect not to participate because of the cost. FRA has long advocated a reformed process that allows service members another opportunity to take advantage of available education programs and this bill provides it.

Contrary to media reports, current participants in the MGIB program must continue to make their $100-per-month payments until the full $1,200 enrollment fee is paid. According to VA and DoD officials, there is no provision in the new law to eliminate the member contribution, even though there is no enrollment fee for the new Post-9/11 benefit. No cash refunds will be provided, but those who’ve already paid their $1,200 will receive an additional $1,200 payment after they have exhausted their 36 months of benefits.

The Window of Opportunity is Larger:  Under the existing MGIB program, service members have 10 years from their date of retirement, separation or discharge to utilize this valuable education benefit.  The new Post-9/11 benefit will be available for 15 years after leaving the service.

Education is a high priority for today’s service members. According to FRA’s recent online survey of active duty and Reserve personnel, more than 32 percent are currently pursuing a college degree. As a result, education benefits are also important. The senior enlisted advisors for the Navy, Marine Corps and Coast Guard all rank education benefits in the top five of military quality-of-life programs.

Master Chief Petty Officer of the Coast Guard Charles “Skip” Bowen sums it up this way:  “Pay, housing and medical care are consistently ranked at the top of the benefit list. When we get down to it, food, shelter and healthcare needs will always come first. But education comes right after those.”

FRA applauds Congress and the Administration for enacting this dramatic improvement to a vital military benefit program, and congratulates service members and veterans who will benefit from this expanded opportunity for personal and professional growth.