The Post-9/11 GI Bill

The Post-9/11 GI bill, a new education benefit for servicemembers and veterans, went into effect on August 1. Here's a look at some of the eligibility requirements and benefits of the bill that the Department of Veterans Affairs has described as “the most comprehensive education benefit package since the original GI bill,” which was signed into law in 1944.

Benefits and eligibility

You may be eligible for Post-9/11 GI Bill benefits if you are a servicemember or a veteran who has served on active duty after September 10, 2001 for at least 90 aggregate days (or 30 continuous days if honorably discharged for a service-connected disability). If eligible, the cost of your tuition and fees will be covered (if you're not on active duty, the amount paid is limited to the highest amount of full-time, in-state undergraduate tuition and fees charged by a public college or university in the state in which your school is located). Eligible veterans and members of the National Guard or Selected Reserve (but not active duty servicemembers) may also receive a monthly housing allowance equal to the basic allowance for housing of an E-5 with dependents and an annual stipend of up to $1,000 for books and supplies.

However, benefit payments are based on length of service. If you've served at least 36 months on active duty after September 10, 2001, or at least 30 days of continuous active duty service if disabled, you may be entitled to the maximum amounts listed above. If you've served on active duty for a shorter period, you may be entitled to a percentage of the maximum benefit, ranging from 40 percent for a service period of at least 90 days but less than six months, to 90 percent for a service period of at least 30 months but less than 36 months.

Up to 36 months of full-time education benefits are generally payable (i.e., enough for a four-year degree based on a nine-month school year), and benefit eligibility lasts for 15 years after your last period of active duty of at least 90 consecutive days (or a period of at least 30 continuous days if you were released for a service-connected disability).

Transferring benefits to family members

One noteworthy provision of the Post-9/11 GI Bill gives servicemembers the opportunity to transfer unused education benefits to spouses and children. Benefits may be split among eligible family members, and servicemembers can modify or revoke their decision to transfer benefits at any time. To be eligible, you must be on active duty or in the Selected Reserves on or after August 1, 2009. You must have served at least six years, and commit to serving four additional years (although some exceptions to this added service requirement exist, including a temporary exception for servicemembers at or nearing retirement).

The Yellow Ribbon Program

If you want to attend school at a college or university where the cost is higher than what's covered by the new GI Bill, you may benefit from a bill provision called the Yellow Ribbon Program. Participating schools have entered into agreements with the VA to fund tuition expenses above the highest in-state undergraduate tuition rate. The institution may waive up to 50 percent of additional tuition and fee expenses, and the VA will match that amount. However, this program is only open to individuals entitled to the maximum benefit rate, and not all schools will participate. Those that do can choose the amount of tuition and fees that will be waived, and may limit the number of students who can participate.

You can find a list of participating schools and more details about the Post-9/11 GI Bill at the Department of Veterans Affairs website, www.fafsa.ed.gov, or you can call (888) GI-BILL-1 to speak to a benefits counselor.