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Upcoming Changes to The Post-9/11 GI-Bill

The Post-9/11 Veterans Education Assistance Improvements Act of 2010 was recently signed into law. This page lists changes to the GI Bill made by this law.

Effective August 1, 2011

• For Veterans and their transferees - simplifies the tuition and fee rates for those attending a public school and creates a national maximum for those enrolled in a private or foreign school
  • Pays all public school in-state tuition and fees;
  • Private and foreign school costs are capped at $17,500 annually;
  • The Yellow Ribbon Program still exists for out-of-state fees and costs above the cap.
• For Active Duty Members and their transferees - creates a national rate for those active duty members enrolled in a private or foreign school pursuing a degree
  • Pays all public school in-state tuition and fees;
  • Private and foreign school costs are capped at $17,500 per academic year (an academic year begins August 1)
• Allows VA to pay MGIB (chapter 30) and MGIB-SR (chapter 1606) ‘kickers’, or college fund payments, on a monthly basis instead of a lump sum at the beginning of the term
• Prorates housing allowance by the student’s rate of pursuit (rounded to the nearest tenth)
  • A student training at a rate of pursuit of 75% would receive 80% of the BAH rate
• Break or interval pay is no longer payable under any VA education benefit program unless under an Executive Order of the President or due to an emergency, such as a natural disaster or strike.
  • This means that when your semester ends (e.g. December 15th), your housing allowance is paid for the first 15 days of December only and begins again when your next semester begins (e.g. January 10th) and is paid for the remaining days of January.
  • Students using other VA education programs are included in this change. Monthly benefits will be pro-rated in the same manner.
  • Entitlement that previously would have been used for break pay will be available for use during a future enrollment.
• Allows reimbursement for more than one “license or certification” test (previously only one test was allowed).
  • However, entitlement is now charged
• Allows reimbursement of fees paid to take national exams used for admission to an institution of higher learning (e.g., SAT, ACT, GMAT, LSAT)
• Allows those who are eligible for both Vocational Rehabilitation and Employment (chapter 31) benefits and Post-9/11 GI Bill (chapter 33) benefits to choose the Post-9/11 GI Bill’s monthly housing allowance instead of the chapter 31 subsistence allowance.
• NOAA and PHS personnel are now eligible to transfer their entitlement to eligible dependents

Effective October 1, 2011

• Allows students to use the Post-9/11 GI Bill for -
  • Non-college degree (NCD) programs: Non-college degree (NCD) programs offered at non-degree granting schools: Pays the actual net costs for in-state tuition and fees or $17,500, whichever is less. Also pays up to $83 per month for books and supplies.
  • On-the-job and apprenticeship training: Pays a monthly benefit amount prorated based on time in program and up to $83 per month for books and supplies.
  • Flight programs: Per academic year, pays the actual net costs for in-state tuition and fees assessed by the school or $10,000, whichever is less.
  • Correspondence training: Per academic year, pays the actual net costs for in-state tuition and fees assessed by the school or $8,500, whichever is less.
• Housing allowance is now payable to students (other than those on active duty) enrolled solely in distance learning. The housing allowance payable is equal to ½ the national average BAH for an E-5 with dependents.
  • The full-time rate for an individual eligible at the 100% eligibility tier would be $673.50 for 2011.
• Allows students on active duty to receive a books and supplies stipend. For changes that affect schools click here.
• More information is forthcoming, please check back or view our Frequently Asked Questions for more information. You can subscribe for updates to the Frequently Asked Questions and will receive an email when changes are posted. Click here to view our FAQ on these changes.

Many post 9/11 veterans and servicemembers will soon see a new package of education benefits. This new Post 9/11 GI Bill, or so-called GI Bill for the 21st Century, boasts the most comprehensive education benefits package since the original GI Bill was signed into law in 1944.

The new bill goes well beyond helping to pay for tuition; many veterans who served after Sept. 11, 2001, will get full tuition and fees, a new monthly housing stipend, and a $1,000 a year stipend for books and supplies. The new bill also gives Reserve and Guard members who have been activated for more than 90 days since 9/11 access to the same GI Bill benefits.

The following fact sheet provides a quick reference to answer the following questions you may have about Senator Webb’s Post 9/11 GI Bill.

• When will these new benefits go into effect?
• Am I Eligible?
• How much will I get for Tuition?
• What is the Monthly Stipend for Housing?
• How much is the book stipend?
• Do the benefits expire?
• Does it cover Licensing and Certification?
• Does it cover tutorial assistance?
• Can I transfer this benefit to my dependents?
• How does it compare to the Montgomery GI Bill?
• Is there an enrollment fee?
• How does it affect my current GI Bill eligibility?

Benefits Start Date

This new GI Bill went into effect on August 1, 2009. However, as with any new legislation, it could take some time for the Department of Veterans Affairs (VA) to begin paying benefits. Benefits will not be paid for any training or education programs completed before July 31, 2009.

Eligibility for the New GI Bill

If you have served a total of at least 90 consecutive days on active duty  in the Armed Forces since Sept. 11, 2001, you’re eligible. However, the amount of benefits you receive under this program are determined by the actual amount of accumulated post 9/11 service you have.

To be eligible for the full benefit, you must have three years of active duty service after 9/11 or have been discharged due to a service-connected disability.

If you are an officer who graduated from a service academy or received ROTC scholarships, you also qualify for the new GI Bill benefits. However, your ROTC/Service Academy associated obligated active-duty service time does not count toward the three years necessary to qualify for the full benefits.

Note: You didn’t have to opt-in for the Montgomery GI Bill to be eligible for this program.

See the complete eligibility details for further information.

New GI Bill Payment Rates

The Post 9/11 GI Bill will provide up to 100% of your tuition. In addition, the program provides a monthly housing stipend a stipend of up to $1,000 a year for books and supplies. If you attend less than full-time will receive a portion of the payment based on the number of units of study.

The amount of tuition and stipends paid under the Post 9/11 GI Bill will vary depending on your state of residence, number of units taken, and amount of post Sept. 11, 2001 active-duty service. Here is a quick reference showing the percentage of total combined benefit eligibility based on the following periods of post 9/11 service:

• 100% - 36 or more total months
• 100% - 30 or more consecutive days with Disability related Discharge.
• 90% - 30 total months
• 80% - 24 total months
• 70% - 18 total months
• 60% - 12 total months
• 50% - six total months
• 40% - 90 or more consecutive days

Tuition Rates

Under the new GI Bill you will be provided tuition up to the highest established charges for full-time undergraduate students charged by the public institution of higher education in the State in which you are enrolled.
One of the added features of this tuition payment plan is that the tuition will be paid directly to the school, relieving you of the responsibility. This is similar to the process used for military tuition assistance.

Based on 2008 in-state tuition rates, the anticipated annual tuition payment rate for 2009 will be just over $6,000. The low being Wyoming at $3,500 a year and Michigan which is the highest payment in-state tuition rate at $13,000.

Monthly Housing Stipend

If you are enrolled in a traditional college program as a full time or three-quarter time student, you will be paid a monthly housing stipend equal to the monthly amount of the Basic Allowance for Housing (BAH) for an E-5 with dependents. The average housing stipend will be approximately $1,100 a month. However, if you attend distance learning programs such as correspondence courses and online you will not qualify for this stipend.

Book and Supply Stipend

You will receive a lump sum payment the first month of each quarter, semester, or term. The payment will help cover the cost of books, supplies, equipment, and other educational fees for that academic term. The payment amount will be equal to either a quarter or half of the annual $1,000 cap for that academic year, depending on how the academic year is divided – quarter or semester terms.

Benefits Expiration Date

Unlike the Montgomery GI Bill, the new GI Bill will allow you to use this benefit for up to 15 years after your last discharge or separation from active duty.

Licensing and Certification Payments

This new GI Bill will provide up to $2,000 to cover the cost of one licensing or certification test. This benefit is not charged against your 36 month entitlement.

Tutorial Assistance

Like the Montgomery GI Bill, the new GI Bill will provide up to a maximum of $1,200 for tutorial assistance. The program will pay up to $100 per month, for a maximum of 12 months. This benefit is not charged against your 36 month entitlement.

Benefit Transferability

According to a recent Stars and Stripes article, servicemembers who have served at least 10 years on active duty will be able to transfer their benefit to a spouse or dependent child. Spouses of servicemember who have served at least six years and agrees to another four-year contract can receive the money even sooner.

The transferred benefit will cover the cost of tuition only.

Benefits may be divided as long as they don't exceed 36 months of college classes. For example, a retired soldier can use half of the benefits to pay for a two-year degree program, then transfer the remaining half to a spouse or child.

College-age children of long-serving servicemembers could get a free college education starting fall 2009, provided they attend a state-backed school.

Transferability is limited to those currently serving in the military and will likely be used as a retention tool.

Comparing the Old and New GI Bill’s

The following table highlights the differences between the Montgomery GI Bill and the New GI Bill.

* In earlier copies of the Post 9/11 GI Bill, it was stipulated that members would be able to stop making enrollment payments for the MGIB. This stipulation was removed from the law. This means that those servicemembers who are currently paying the $100 a month enrollment fee will be required to continue making payments until the $1,200 enrollment fee is paid in full.

Affects on Existing GI Bill Benefits

If you are already enrolled in the Montgomery GI Bill and also meet the criteria for the Post 9/11 GI Bill, you have the option to transfer your remaining MGIB benefits to the new program.

For many veterans this will be a good option. However, due to the tuition limits set by this new GI Bill, many veterans who are pursuing a post-graduate degree may find the MGIB better suits their needs. This is also true for those students pursuing an online degree, as this new benefit will not pay the housing stipend to students enrolled in distance learning programs.

Further Eligibility Details:

• You qualify for 100% of the benefit if you have a total of at least 36 months on active duty in the Armed Forces. This includes service on active duty for entry level and skill training.  
• You qualify for 100% of the benefit if you have a total of at least 30 continuous days on active duty in the Armed Forces; and after completion of service were discharged or released from active duty in the Armed Forces for a service-connected disability.
• You qualify for 90% of the benefit if you have a total of at least30 months, but less than 36 months, on active duty in the Armed Forces.
  (including service on active duty in entry level and skill training).
• You qualify for 80% of the benefit if you have a total of at least 24 months, but less than 30 months, on active duty in the Armed Forces.
  (including service on active duty in entry level and skill training).
• You qualify for 70% of the benefit if you have a total of at least 18 months, but less than 24 months, on active duty in the Armed Forces.
  (excluding service on active duty in entry level and skill training).
• You qualify for 60% of the benefit if you have a total of at least 12 months, but less than 18 months, on active duty in the Armed Forces.
  (excluding service on active duty in entry level and skill training)
• You qualify for 50% of the benefit if you have a total of at least 6 months, but less than 12 months, on active duty in the Armed Forces.
  (excluding service on active duty in entry level and skill training)
• You qualify for 40% of the benefit if you have a total of at least 90 days, but less than 6 months, on active duty in the Armed Forces.
  (excluding service on active duty in entry level and skill training)