Post-9/11 GI Bill goes into effect

8/14/2009 12:47:23 PM

The number of veterans entering college classrooms is expected to spike thanks to the new Post-9/11 GI Bill, which went into effect on August 1st. An estimated 460,000 veterans are expected to take advantage of the new benefits and enroll in college. Last year about 350,000 veterans used federal tuition benefits.

The new Post-9/11 GI Bill provides the full cost of an undergraduate education at any public university or college in the country and many private schools for our nation's newest generation of veterans. This includes upfront tuition payments directly to the school, a monthly living allowance based on the Department of Defense’s regional housing allowance and a book stipend of $41.67 per credit, up to $1,000 per year.

Tuition and fee payments can be used at any public or private school but are capped on a per state basis. The maximum charge per credit hour in Wisconsin is $663 for 2009-10. Additionally, Veterans Administration will pay eligible Wisconsin veterans up to $30,979 per term in fees. By law, the Veterans Administration was required to set tuition and fee caps as equal to that charged at the highest in-state, undergraduate, public institution. Therefore, programs like aviation or pharmacy that charge students a large additional fee are the reason for Wisconsin’s high ceiling.

Those with 36 months or more on active duty since September 11, 2001 receive full benefits. A sliding scale determines benefits for veterans with less than 36 months. Veterans meeting the minimum qualification standard – 90 days of active duty service post-9/11 – are eligible for 40% benefits.

Reservists can receive a percentage of the active duty Post-9/11 GI Bill benefit based on the length of their active duty service. The new benefit allows reservists to accumulate active duty service from multiple tours.

One of the most novel features of the Post-9/11 GI Bill is that currently serving troops have the opportunity to transfer education benefits to a spouse or a child. To qualify for transferability a service member must:

• Qualify for the education benefits themselves.
• Served at least 6 years Active Duty, National Guard or Select Reserves.
• Agree to commit to 4 more years of service starting August 2009.
• Have a spouse or dependent(s) enrolled in the Defense Eligibility Enrollment Reporting System (DEERS) to transfer benefits to.

Wisconsin has been a leader in providing state-based education benefits to veterans. The Wisconsin GI bill, effective with the 2007-08 academic year, provides a full waiver of tuition and fees for eligible veterans and their dependents for up to 8 full-time semesters or 128 credits (whichever is longer) at any University of Wisconsin System (UWS) or Wisconsin Technical College System (WTCS) institution for continuing education, or for study at the undergraduate or graduate level.

Students and faculty alike should be aware that the interaction between Wisconsin’s GI Bill and the new federal Post-9/11 GI Bill is complex.

If a student has had federal active duty service since September 10, 2001, he or she must apply for benefits provided by the Post-9/11 GI Bill before receiving benefits under the Wisconsin GI Bill. Furthermore, Post-9/11 GI Bill benefits will be counted against the 128 credit, 8 semester limit established in the Wisconsin GI Bill. Veterans who are eligible for the Post-9/11 GI Bill, and who instead choose to use their other federal veteran education benefits (e.g. Montgomery GI Bill), will not qualify for tuition remission under the Wisconsin GI bill.

Faculty and students should consult their financial aid office or the Wisconsin Department of Veterans Affairs with questions about how the state and federal programs work together. You can also read more about how the benefits interact here.

In 2008-09, Wisconsin’s technical colleges waived tuition for 3,580 students, in the amount of about $6.1 million. A portion of that waived tuition - $1.4 million was returned to the colleges by the state, leaving an unfunded gap of $4.6 million.

With the Post 9/11 GI Bill benefits in place, it is anticipated that much of the previously unfunded gap will be reimbursed by the federal government.