# Educational Assistance Programs Administered by the U.S. Department of Veterans Affairs > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/crs%3AR40723 ## Record - **Collection:** Congressional research report - **Document type:** CRS Report - **Published:** March 15, 2011 - **Citation:** R40723 ## Text Educational Assistance Programs Administered by the U.S. Department of Veterans Affairs Cassandria Dortch Analyst in Education Policy March 15, 2011 Congressional Research Service 7-5700 www.crs.gov R40723 CRS Report for Congress Prepared for Members and Committees of Congress Educational Assistance Programs Administered by the Department of Veterans Affairs Summary The U.S. Department of Veterans Affairs (VA), previously named the Veterans Administration, has been providing veterans educational assistance benefits since 1944. Although the programs are administered by the VA, the Department of Defense (DOD) pays for certain benefits and provides additional benefits to certain persons with critical skills or lengthy service. The benefits have been intended, at various times, to compensate for compulsory service, encourage voluntary service, avoid unemployment, provide equitable benefits to all who served, and promote military retention. In general, the benefits provide grant aid to eligible individuals enrolled in approved educational and training programs. The newest program, the Post-9/11 GI Bill, has the largest number of individuals receiving benefits. The Post-9/11 GI Bill provides benefits to veterans and servicemembers who serve on active duty after September 10, 2001. The program is designed to provide individuals who served on active duty for 36 months and who are pursuing undergraduate studies at public colleges and universities with the full cost of attendance: tuition and fees, housing, books and supplies, tutorial and relocation assistance, and fees for testing and certification, as needed. The Post-9/11 Veterans Educational Assistance Improvements Act of 2010 (P.L. 111-377), enacted on January 4, 2011, makes several amendments to eligibility and benefits under the Post-9/11 GI Bill. Before the Post-9/11 GI Bill was effective, the most popular program was the Montgomery GI Bill-Active Duty (MGIB-AD). The MGIB-AD provides a monthly allowance primarily to veterans and servicemembers who enter active duty after June 30, 1985. The Montgomery GI Bill-Selected Reserve (MGIB-SR) provides a lower monthly allowance than the MGIB-AD to reservists who enlist, re-enlist, or extend an enlistment after June 30, 1985. The Reserves Educational Assistance Program (REAP) provides a monthly allowance that is higher than the MGIB-SR but lower than the MGIB-AD to reservists with active duty service. The program with the fewest individuals receiving benefits is the Post-Vietnam Era Veterans’ Educational Assistance Program (VEAP). VEAP provides a monthly allowance to veterans who first entered active duty service between December 31, 1976, and July 1, 1985. Finally, the dependents of individuals with military service may be eligible for educational assistance. The Survivors’ and Dependents’ Educational Assistance (DEA) program provides benefits to the spouse and children of servicemembers who, as a result of service, are seriously disabled, die, or are detained. The Army allows certain servicemembers to transfer their MGIBAD benefits to their dependents. Servicemembers who stay in the military for several years are able to transfer their Post-9/11 GI Bill benefits to their dependents. Also, the Post-9/11 GI Bill includes a scholarship program for the children of servicemembers who die in the line of duty, the Marine Gunnery Sergeant John David Fry Scholarship Program. This report provides a description of the eligibility requirements, benefit availability, and benefit payments of the veterans educational assistance benefit programs. See Table 4 for a summary of selected characteristics of the programs. The report also provides some summary statistics and comparisons between the programs. Congressional Research Service Educational Assistance Programs Administered by the Department of Veterans Affairs Contents Introduction ................................................................................................................................1 History of the Programs ..............................................................................................................2 Post-9/11 Veterans Educational Assistance Program (Post-9/11 GI Bill).......................................4 Eligible Individuals ...............................................................................................................5 Eligible Programs of Education, Institutions, and Establishments ..........................................7 Benefit Payments prior to the Improvements Act ...................................................................8 Payments for Tuition and Fees, Housing, and Books and Supplies ...................................9 Yellow Ribbon Program Payments ................................................................................ 12 Tutorial Assistance........................................................................................................ 12 Licensing and Certification Test Fees ............................................................................ 12 Relocation and Travel Assistance .................................................................................. 12 Additional Benefit Payments......................................................................................... 12 Benefit Payments as Enacted by the Improvements Act ....................................................... 13 Payments for Tuition and Fees, Housing, and Books and Supplies ................................. 13 Yellow Ribbon Program Payments ................................................................................ 19 Tutorial Assistance........................................................................................................ 19 Licensing and Certification Test Fees ............................................................................ 19 National Tests ............................................................................................................... 20 Relocation and Travel Assistance .................................................................................. 20 Additional Benefit Payments......................................................................................... 20 Benefit Availability and Duration ........................................................................................ 21 Yellow Ribbon Program...................................................................................................... 21 Marine Gunnery Sergeant John David Fry Scholarship Program.......................................... 22 Transferability to Dependents.............................................................................................. 23 Montgomery GI Bill (MGIB) .................................................................................................... 24 Montgomery GI Bill—Active Duty (MGIB-AD)................................................................. 25 Eligible Individuals ....................................................................................................... 25 Eligible Programs of Education, Institutions, and Establishments .................................. 27 Benefit Payments .......................................................................................................... 28 Benefit Availability and Duration .................................................................................. 30 MGIB-AD Death Benefit .............................................................................................. 31 Transferability to Dependents........................................................................................ 31 Montgomery GI Bill—Selected Reserve (MGIB-SR) .......................................................... 32 Eligible Individuals ....................................................................................................... 32 Eligible Programs of Education, Institutions, and Establishments .................................. 32 Benefit Payments .......................................................................................................... 33 Benefit Availability and Duration .................................................................................. 33 Transferability to Dependents........................................................................................ 34 Survivors’ and Dependents’ Educational Assistance Program (DEA) ......................................... 34 Eligible Individuals ............................................................................................................. 34 Eligible Programs of Education, Institutions, and Establishments ........................................ 35 Benefit Payments ................................................................................................................ 35 Benefit Availability and Duration ........................................................................................ 37 Reserve Educational Assistance Program (REAP) ..................................................................... 37 Eligible Individuals ............................................................................................................. 37 Congressional Research Service Educational Assistance Programs Administered by the Department of Veterans Affairs Eligible Programs of Education, Institutions, and Establishments ........................................ 38 Benefit Payments ................................................................................................................ 38 Benefit Availability and Duration ........................................................................................ 38 Transferability to Dependents.............................................................................................. 39 Post-Vietnam Era Veterans Educational Assistance Program (VEAP) ........................................ 39 Eligible Individuals ............................................................................................................. 39 Eligible Programs of Education, Institutions, and Establishments ........................................ 40 Benefit Payments ................................................................................................................ 42 Benefit Availability and Duration of Use ............................................................................. 43 Summary and Comparison of Programs .................................................................................... 43 Combinations of Program Benefits...................................................................................... 43 Permanent Authorization of Programs ................................................................................. 44 Veterans Counseling............................................................................................................ 44 Comparison of Educational Assistance Programs ................................................................ 45 Related Department of Veterans Affairs Programs ..................................................................... 48 Vocational Rehabilitation and Employment Program (VR&E)............................................. 48 Veterans Work Study Program............................................................................................. 50 Participation and Cost ............................................................................................................... 51 Figures Figure 1. Total Veterans, Active-Duty Servicemembers, Reservists and Dependents Receiving VEAP, MGIB-AD, MGIB-SR, REAP, and DEA Education Benefits each Year (1978-2010) ................................................................................................................... 52 Tables Table 1. Chronology of Educational Assistance Programs Administered by the VA......................3 Table 2. Percentage of Maximum Post-9/11 GI Bill Benefits Based on Aggregate Length of Active Duty Service .............................................................................................................9 Table 3. Maximum Payments for Tuition and Fees, Housing, and Books and Supplies, as Enacted by the Improvements Act .......................................................................................... 14 Table 4. Selected Characteristics of Veterans’ Educational Assistance Programs ........................ 45 Table 5. Undergraduate Veterans’ Educational Assistance Recipients and Average Amount of Aid by Type of Military Service for Individuals Receiving Veterans’ Educational Assistance.............................................................................................................................. 52 Table 6. Obligations and Participation of Selected Programs Administered by the VA: FY2010 .......................................................................................... 53 Table A-1. Original GI Bill Participation ................................................................................... 57 Table B-1. Korean Conflict GI Bill Participation ....................................................................... 61 Table C-1. Post-Korea and Vietnam Era GI Bill Participation .................................................... 67 Congressional Research Service Educational Assistance Programs Administered by the Department of Veterans Affairs Appendixes Appendix A. Educational Assistance Under the Original GI Bill of Rights................................. 54 Appendix B. Korean Conflict GI Bill ........................................................................................ 58 Appendix C. Post-Korea and Vietnam Era GI Bill ..................................................................... 62 Appendix D. Veterans and Dependents Education Loan Program............................................... 68 Contacts Author Contact Information ...................................................................................................... 68 Congressional Research Service Educational Assistance Programs Administered by the Department of Veterans Affairs Introduction This report provides a detailed description of the six educational assistance programs that are available to veterans or other eligible individuals through the Department of Veterans Affairs (VA). Although the programs are administered by the VA, some of the funding for the programs is provided by the Department of Defense (DOD).1 DOD transfers monies from its education trust fund to the VA for disbursement. The report is organized into five sections. The first section provides an explanation of the rationale and impetus behind veterans’ educational assistance programs (GI Bills). The second section describes the eligibility requirements and uses of the existing GI Bills. The GI Bills are discussed in descending order based on the number of participants. The third section reviews the linkages and commonalities between the programs. A summary of selected characteristics of the various programs is presented in Table 4. The fourth section provides a brief overview of related VA programs. The final section provides information on participation and expenditures for the programs. A detailed look at the earlier inactive GI Bills and the lessons learned is available in the appendices. Over the decades during which the programs have been in existence, two themes have been emphasized. The benefits promote development of work related skills to facilitate entry or reentry into the workforce, and the base benefit is equitable regardless of rank or military occupation specialty. Educational assistance programs offered by DOD are targeted to servicemembers with specific skills or individuals. All of the educational assistance programs administered by the VA require some period of military service before benefits can be received. The most salient ongoing conflicts have been related to how much eligible individuals should contribute to their education in time or money, which type of service warrants a benefit, and how liberal (i.e., valuable) the benefit should be. All of the benefit programs provide eligible persons an entitlement to educational assistance. This entitlement is measured in dollars and/or time—months and days. A dollar value is also associated with each month and day of entitlement. Educational assistance payments reduce the total dollars of entitlement, if applicable. Educational assistance payments also reduce the entitlement period at a rate of one month per payment or in proportion to a base payment amount. Eligible persons may run out of dollars of entitlement before running out of the entitlement period or vice versa. Once either runs out, the total entitlement is exhausted. In general, once the entitlement period or dollars of entitlement are exhausted eligible persons continue receiving educational assistance through the end of the academic term if more than halfway through, or a 12-week period if not on an academic term schedule. Neither the entitlement period nor the dollars of entitlement are reduced if an individual is called to active duty under sections 12301(a), 12301(d), 12301(g), 12302, or 12304 of Title 10 U.S.C. and if, as a result, the individual must discontinue studies and fails to receive credit or training time. 1 References to DOD include the Department of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Navy. Congressional Research Service 1 Educational Assistance Programs Administered by the Department of Veterans Affairs History of the Programs Since the Revolutionary War, the United States has provided benefits to injured or disabled war veterans; however, benefits were not provided to the same extent to their able-bodied peers. Prior to World War II (WWII), “poor, jobless, and disgruntled veterans … had led to unrest and fear of revolt throughout American history.” In 1932, after World War I, the military was called in to forcibly remove 20,000 still unemployed and often homeless veterans and burn their encampment near the Capitol and White House. 2 Despite the draft, military service was thought of as “a fundamental obligation of [male] citizenship.”3 Because the 16.1 million personnel4 who served in the U.S. Armed Forces5 during WWII accounted for over one-third of the 41.1 million6 working-age males (between 20 and 64 years of age) in 1947, fears of the consequences of mass unemployment were legitimate. Before the end of WWII, Congress and the American Legion7 worked together to pass the original GI Bill, or Serviceman’s Readjustment Act of 1944 (P.L. 78-346).8 The act provided a full range of resources to veterans including the construction of additional hospitals; educational assistance to non-disabled veterans; home, business, and farm loans; job counseling and employment placement services; and an unemployment benefit. The original GI Bill was generally considered successful in averting unemployment, raising the educational level and thus the productivity of the U.S. workforce, and confirming the value that Americans place on those that provide military service. 9 Subsequent GI Bills providing educational assistance have been passed (Table 1). The Korean Conflict GI Bill was enacted under the Veterans’ Readjustment Assistance Act of 1952 (P.L. 82-550) and codified in Title 38, U.S.C., Chapter 33. The purpose of the program was to prepare returning veterans to enter the workforce. It allowed the same types of education and training as the original GI Bill—on-the-job training, on-the-farm training, correspondence courses,10 and traditional college education. Several provisions were also added to prevent avocational or recreational educational pursuits and to ensure the quality of education provided. 2 Edward Humes, “The Greatest Generation: The Accidental Remaking of America,” in Over Here: How the G.I. Bill Transformed the American Dream, 1st ed. (Orlando, FL: Harcourt, Inc., 2006), pp. 4-20. 3 Suzanne Mettler, Soldiers to Citizens: The G.I. Bill and the Making of the Greatest Generation (New York: Oxford University Press, 2005), p. 26. 4 Facts for Features, U.S. Census Bureau, April 29, 2004, http://www.census.gov/Press-Release/www/2004/cb04ffse07.pdf. 5 The Armed Forces are the Army, Navy, Air Force, Marine Corps, and Coast Guard of the United States. 6 U.S. Census Bureau, Table 1. Years of School Completed by Persons 14 Years Old and Over, by Age, Color, and Sex, for the United States: Civilian Population, April 1947, and Total Population, April 1940. 7 The American Legion was chartered by Congress in 1919 as a patriotic wartime veterans organization devoted to mutual helpfulness. It is a not-for-profit community-service organization. 8 Suzanne Mettler, Soldiers to Citizens: The G.I. Bill and the Making of the Greatest Generation (New York: Oxford University Press, 2005), pp. 18-22. 9 U.S. Congress, House Committee on Veterans’ Affairs, Readjustment Benefits: General Survey and Appraisal, A Report on Veterans’ Benefits in the United States, committee print, prepared by The President’s Commission on Veterans’ Pensions, 84th Cong., 2nd sess., September 11, 1956, House Committee Print No. 289 (Washington: GPO, 1956), pp. 107-142. 10 Correspondence training differs from distance learning or online education in that individuals in correspondence training usually receive lessons in the mail and have a certain amount of time to complete and return them for a grade. Congressional Research Service 2 Educational Assistance Programs Administered by the Department of Veterans Affairs Table 1. Chronology of Educational Assistance Programs Administered by the VA Year Enacted Common Name Establishing Legislation U.S. Code 1944 Original GI Bill Serviceman’s Readjustment Act of 1944 Title 38, Chapter 12 1952 Korean Conflict GI Bill Veterans’ Readjustment Assistance Act of 1952 Title 38, Chapter 33 (repealed in 1966) 1956 DEA (Survivors’ and Dependents Educational Assistance) War Orphans’ Educational Assistance Act of 1956 Title 38, Chapter 35 1966 Post-Korean Conflict and Vietnam Era GI Bill Veterans Readjustment Benefits Act of 1966 Title 38, Chapter 34 1974 Veterans and Dependents Education Loan Program Veterans’ Readjustment Assistance Act of 1974 Title 38, Chapter 36 (repealed in 1981) 1976 VEAP (Post-Vietnam Era Veterans Educational Assistance) Veterans’ Education and Employment Assistance Act of 1976 Title 38, Chapter 32 1981 Educational Assistance Test Program (Sec. 901) Department of Defense Authorization Act, 1981 Title 10, Chapter 106A 1981 Educational Assistance Pilot Program (Sec. 903) Department of Defense Authorization Act, 1981 Title 10, Chapter 106A 1985 MGIB-AD (Montgomery GI BillActive Duty) Department of Defense Authorization Act, 1985 Title 38, Chapter 30 1985 MGIB-SR (Montgomery GI BillSelected Reserves) Department of Defense Authorization Act, 1985 Title 10, Chapter 1606 2005 REAP (Reserves Educational Assistance Program) Ronald W. Reagan National Defense Authorization Act for FY2005 Title 10, Chapter 1607 2008 Post-9/11 GI Bill Post-9/11 Veterans Educational Assistance Act of 2008 Title 38, Chapter 33 2009 Marine Gunnery Sergeant John David Fry Scholarship Supplemental Appropriations Act of 2009 (P.L. 111-32) Title 38, Chapter 33 Source: Prepared by CRS based on a review of the legislation. In 1956, the War Orphans’ Educational Assistance Act of 1956 (P.L. 84-634) was passed to provide educational assistance to the children of servicemembers who died as a result of injury or disability incurred in the line of duty. This program was later expanded to include spouses and children of servicemembers who died, became permanently or totally disabled, were missing-inaction, were captured, or were hospitalized as a result of service. The Post-Korean Conflict and Vietnam Era GI Bill was enacted under the Veterans Readjustment Benefits Act of 1966 (P.L. 89-358) and codified in Title 38, U.S.C., Chapter 34. In addition to providing benefits to veterans, it provided benefits to active duty servicemembers to encourage retention in the Armed Forces. The Veterans’ Readjustment Assistance Act of 1974 (P.L. 93-508) created a short-lived veterans and dependents education loan program to cover educational costs not provided for under the GI Bill. It was codified in Title 38, U.S.C., Chapter 36 before being repealed in 1981. Beginning with the Korean Conflict GI Bill, there has been much debate on the level of educational assistance that should be provided to veterans and servicemembers. Some believed that requiring individuals to make a monetary contribution in addition to their military service would increase their sense of responsibility and purpose. Some believed that the educational Congressional Research Service 3 Educational Assistance Programs Administered by the Department of Veterans Affairs assistance benefits were a necessary compensation for compulsory service or reimbursement for voluntary service. Some believed that high levels of assistance promote attrition from the military. And some believed that the benefits are a necessary recruitment tool. Congress allowed the compulsory military draft to expire on June 30, 1973. The educational assistance programs enacted subsequently were designed to encourage recruitment and retention of high-quality military personnel while still providing a considerable benefit to those who choose to leave active duty military service. Since 1973, there has also been a consistent attempt to limit the options to a more traditional college education although other types of education and training were generally added as the programs mature. Currently, there are several educational assistance programs are available to veterans, servicemembers, and their spouses and children. The oldest of these programs for veterans and servicemembers is the Post-Vietnam Era GI Bill enacted in 1976. Several hundred individuals are still receiving benefits from this program, which provides educational assistance in direct proportion to contributions deducted from servicemembers’ pay while on active duty. The Montgomery GI Bill-Active Duty (MGIB-AD) requires most servicemembers to contribute an established amount, although the eventual benefits are not related to the contribution. The Army allows some dependents to use the servicemembers’ MGIB-AD benefits. The Montgomery GI Bill-Selected Reserve (MGIB-SR) only provides educational assistance to those currently serving in the Selected Reserve. Because reliance on the Reserves and National Guard increased after September 11, 2001, the Reserves Educational Assistance Program (REAP), enacted in 2005, allows reservists to receive an increased educational assistance benefit in comparison to the MGIB-SR after serving on active duty. The Survivors’ and Dependents’ Educational Assistance (DEA) program provides benefits to the spouse and children of servicemembers who, as a result of service, are seriously disabled, die, or are detained. Finally, the Post-9/11 GI Bill increases the educational assistance benefit for all individuals with active duty service after September 10, 2001, in recognition that the United States has not been at peace since 2001. Servicemembers who stay in the military for several years are able to transfer their Post-9/11 GI Bill benefits to their dependents. Also, the Post-9/11 GI Bill includes a scholarship program for the children of servicemembers who die in the line of duty, the Marine Gunnery Sergeant John David Fry Scholarship Program. The Post-9/11 Veterans Educational Assistance Improvements Act of 2010 (Improvements Act; P.L. 111-377), enacted on January 4, 2011, made several amendments to the Post-9/11 GI Bill and other veterans educational assistance programs. The effective dates of the amendments are staggered from January 4, 2011, through October 1, 2011. The amendments of the Improvements Act and their effective dates will be highlighted in the descriptions, as applicable. The following section describes the active programs in greater detail, in descending order based on the number of participants. A description of the inactive programs is provided in the appendices. Post-9/11 Veterans Educational Assistance Program (Post-9/11 GI Bill) There were four main drivers for the Post-9/11 Veterans Educational Assistance Act of 2008 (P.L. 110-252): providing parity of benefits for reservists and members of the regular Armed Forces, ensuring comprehensive educational benefits, meeting military recruiting goals, and improving military retention through transferability of benefits. There was a desire for reservists to receive Congressional Research Service 4 Educational Assistance Programs Administered by the Department of Veterans Affairs benefits equivalent to members of the regular Armed Forces for equivalent, though often not continuous, active duty service. It was recognized that veterans and servicemembers would be eligible for other U.S. Department of Education student financial assistance benefits such as Pell Grants and Stafford Loans;11 DOD educational assistance; and various state, local, and other federal benefits on top of the basic GI Bill benefits. Members of Congress hoped that a benefit that exceeded that available under the other active GI Bills would ameliorate military recruiting challenges and reduce the higher unemployment rate among veterans compared with nonveterans of the same age group.12 There was some discussion about whether increasing the monthly benefit might result in lower retention in the Armed Forces. Some DOD research suggested that education is not a very important factor in the decision to stay in or leave the military, while other evidence suggested that very high benefits would encourage discharge. The ability to transfer benefits to dependents was considered critical to retention. The Administration was interested in transferability as well, and President Bush advocated for transferability in a State of the Union address.13 The Post-9/11 GI Bill is codified under Title 38 U.S.C., Chapter 33. The stated purpose is to reward members of the Armed Forces for service on active duty since September 11, 2001; maintain a history of offering educational assistance to veterans; respond to the needs of the Armed Forces when not at peace; demonstrate the high esteem with which military service is held; recognize the difficult challenges involved in readjusting to civilian life after serving; and enhance the educational assistance benefits to those who serve on active duty after September 10, 2001. The program became effective August 1, 2009. The program is permanently authorized. Eligible Individuals Under the Post-9/11 GI Bill, veterans and servicemembers of the Army, Navy, Marine Corps, Air Force, and Coast Guard, including the reserve components and commissioned officers of the Public Health Service (PHS) and the National Oceanic Atmospheric Association (NOAA), may be eligible. Individuals must serve an aggregate minimum of 90 days on active duty after September 10, 2001, or individuals must have been discharged or released after a minimum of 30 continuous days after September 10, 2001, for a service-connected disability. Only a call or order 11 Title IV of the Higher Education Act of 1965, as amended, authorizes several student aid programs: Pell Grant program, William D. Ford Federal Direct Loan (DL) Program, American Competitiveness Grant program, National Science and Mathematics Access to Retain Talent (SMART) Grant program, Federal Supplemental Educational Opportunity Grant (FSEOG) program, Leveraging Educational Assistance Partnership (LEAP) program, Federal WorkStudy (FWS) program, Federal Perkins Loan program, and Grants for Access and Persistence (GAP) program. See CRS Report R41437, Federal Pell Grant Program of the Higher Education Act: Background, Recent Changes, and Current Legislative Issues, by Shannon M. Mahan; CRS Report RL31618, Campus-Based Student Financial Aid Programs Under the Higher Education Act, by David P. Smole; and CRS Report R40122, Federal Student Loans Made Under the Federal Family Education Loan Program and the William D. Ford Federal Direct Loan Program: Terms and Conditions for Borrowers, by David P. Smole. 12 U.S. Congress, House Committee on Veterans’ Affairs, Subcommittee on Economic Opportunity, Pending Montgomery GI Bill Legislation, 110th Cong., 2nd sess., January 17, 2008, HRG-2008-VAH-0003 (Washington: GPO, 2008), pp. 3, 6, 9, 10, 14; and U.S. Congress, Senate Committee on Veterans’ Affairs, Hearing on Pending Benefits Legislation, 110th Cong., 2nd sess., May 7, 2008, S. Hrg. 110-675 (Washington: GPO, 2008), pp. 15, 21, 34, 49. 13 U.S. Congress, House Committee on Veterans’ Affairs, Subcommittee on Economic Opportunity, Pending Montgomery GI Bill Legislation, 110th Cong., 2nd sess., January 17, 2008, HRG-2008-VAH-0003 (Washington: GPO, 2008), pp. 3, 6, 9, 10, 14; and U.S. Congress, Senate Committee on Veterans’ Affairs, Hearing on Pending Benefits Legislation, 110th Cong., 2nd sess., May 7, 2008, S. Hrg. 110-675 (Washington: GPO, 2008), pp. 15, 21, 34, 49. Congressional Research Service 5 Educational Assistance Programs Administered by the Department of Veterans Affairs to active duty under section 688, 12301(a), 12301(d), 12301(g), 12302, or 12304 of Title 10 U.S.C. may be included in the active duty service eligibility period required of reservists. The Post-9/11 Veterans Educational Assistance Improvements Act of 2010 (Improvements Act; P.L. 111-377) allows National Guard members to include full-time duty under a Title 32 call to order toward their Post-9/11 GI Bill-qualifying active duty service effective August 1, 2009; however, benefit payments on behalf of eligible individuals will be issued after September 30, 2011. The active duty service period includes service on active duty in entry-level and skill training14 if the total active duty service period is at least 24 months.15 The Post-9/11 GI Bill active duty service period excludes time assigned to a civilian institution for an education or training program similar to those offered to civilians, excludes time spent as a cadet or midshipman at one of the service academies, excludes other active duty service periods required to meet a service academy or Reserve Officer Training Corps (ROTC) obligation, excludes service that is terminated because of a defective enlistment and induction, and excludes active duty service periods required to meet a student loan repayment obligation (10 U.S.C., Chapter 109). Once the active duty service period is met, individuals must continue on active duty or be discharged with an honorable discharge; be released with honorable service and retired, or transferred to the Reserves or temporary disability list; or be discharged or released from active duty service characterized as honorable for a pre-existing medical condition, hardship, or an interfering physical or mental condition. Individuals who have not used or who retain an entitlement period under the MGIBs, REAP, and Chapter 107 of Title 10 U.S.C. (professional military education) and individuals who withdrew from the MGIB-AD may make an irrevocable election to receive Post-9/11 GI Bill educational assistance benefits. The individuals must be otherwise eligible for the Post-9/11 GI Bill. The decision to receive Post-9/11 GI Bill benefits after using some MGIB-AD benefit does not extend the number of months in the entitlement period. Unused contributions made by the individual to be eligible for the MGIB-AD, up to $1,200, will be refunded as an addition to the last Post-9/11 GI Bill monthly housing allowance once the entitlement period is exhausted. If the individual is not eligible for the monthly housing allowance or fails to exhaust the entitlement period, the unused MGIB-AD contribution will not be refunded. Individuals who make an irrevocable election remain eligible for supplemental assistance (Kickers); however, they lose any contributions to the MGIB-AD $600 Buy-Up program.16 The military service branches may augment an individual’s basic GI Bill benefit with supplemental assistance in a few instances: • an individual who enlists in the regular Armed Forces with a skill or specialty of which there is a critical shortage or for which it is difficult to recruit or, in the case of critical units, retain personnel; 14 Entry-level and skill training is defined as basic combat training, advanced individual training, and one station unit training (OSUT) in the Army; recruit training (or boot camp) and skill training (or so-called ‘A’ school) in the Navy; basic military training and technical training in the Air Force, recruit training and Marine Corps training (or school of infantry training) in the Marine Corps; and basic training and skill training (or so-called ‘A’ school) in the Coast Guard. 15 If the period of active duty service including entry-level and skill training is at least 24 months but the period of active duty service excluding entry-level and skill training is less than 18 months, the applicable active duty period is 18 months. 16 Department of Veterans Affairs, “Post-9/11 G.I. Bill: Final Rule,” 74 Federal Register 14659, March 31, 2009. Under the MGIB-AD, servicemembers were allowed to contribute up to an additional $600 while on active duty in $20 monthly increments and receive up to an additional $5 monthly for each $20 contributed over the life of their entitlement period under what is known as the $600 Buy Up Program. Congressional Research Service 6 Educational Assistance Programs Administered by the Department of Veterans Affairs • an individual with a skill or specialty of which there is a critical shortage or for which it is difficult to recruit or, in the case of critical units, retain personnel who agrees to serve in the Selected Reserve after separating honorably from the regular Armed Forces; and • an individual who agrees to remain on active duty for at least two years after completing at least five years of continuous service. Under the MGIB-AD $600 Buy-Up program, a servicemember may contribute up to $600 to the military service branch in multiples of $20 and receive for every $20 contributed up to an additional $5 every month (up to $5,400 total) in which the individual receives MGIB-AD benefits. Eligible Programs of Education, Institutions, and Establishments Prior to October 1, 2011, the eligible programs of education are courses offered by an IHL.17 Effective October 1, 2011, the Improvements Act expands the approved programs of education to include the following: • courses at an educational institution (see below for the definition of an educational institution) that lead to a predetermined educational, vocational, or professional objective or objectives if related to the same career (this includes traditional undergraduate and graduate programs); • courses required by the Administrator of the Small Business Administration as a condition for obtaining financial assistance under the provisions of section 7(i)(1) of the Small Business Act (15 U.S.C. 636(i)(1)); • licensing or certification tests for a predetermined vocation or profession, provided such tests and the licensing or credentialing organizations or entities that offer such tests are approved; 17 An “institution of higher learning” is an institution offering postsecondary level academic instruction that leads to an associate’s or higher degree if the school is empowered by the appropriate state education authority under state law to grant an associate’s or higher degree, or in the absence of a state education authority, if the school is accredited for degree programs by a recognized accrediting agency. Institutions of higher learning are also hospitals offering educational programs at the postsecondary level and foreign educational institutions that offer courses leading to a standard college degree, or the equivalent, and that are recognized as such by the secretary of education (or a comparable official) of the country or other jurisdiction in which the institution is located. A standard college degree is an associate’s or higher degree awarded by (1) an IHL that is accredited as a collegiate institution by a recognized regional or national accrediting agency; (2) an IHL that is a “candidate” for accreditation as that term is used by the regional or national accrediting agencies; or (3) an IHL upon completion of a course that is accredited by an agency recognized to accredit specialized degree-level programs. An IHL is not the same as an institution of higher education (IHE) as defined in sections 101 and 102 of the Higher Education Act of 1965 (HEA), as amended. An IHE admits as regular students only those who have a high school diploma or its equivalent or who are beyond the age of compulsory school attendance. Also, an IHE may be a less-than-two-year postsecondary vocational institutional or may provide one-year programs of education or training without having to provide an associate’s or higher degree. With exceptions and the possibility of waivers, no more than 50% of an IHE’s courses can be correspondence courses; no more than 50% of an IHE’s students can be enrolled in correspondence courses; no more than 25% of the IHE’s students may be incarcerated; and no more than 50% of an IHE’s students may be without a high school diploma or its equivalent unless it offers an associate’s or bachelor’s degree. With exceptions, neither the IHE nor its affiliates can have filed for bankruptcy, and the IHE’s owner or chief executive officer cannot have been guilty of a crime involving the acquisition, fraud, use, or expenditure of HEA Title IV funds. In addition, postsecondary institutions outside the United States must meet additional criteria to be considered IHEs. Congressional Research Service 7 Educational Assistance Programs Administered by the Department of Veterans Affairs • courses offered by a qualified provider of entrepreneurship courses; • national tests for admission to IHLs or graduate schools (such as the Scholastic Aptitude Test (SAT)); • national tests providing an opportunity for course credit at IHLs (such as the Advanced Placement (AP) exam); • a preparatory course for a test that is required or used for admission to an institution of higher education or a graduate school; • full-time programs of apprentice or other on-the-job training, for individuals not on active duty; and • cooperative programs18 for individuals not on active duty.19 Educational institutions are defined as • public or private elementary or secondary schools; • vocational, correspondence, business, normal, or professional schools; • colleges or universities; • scientific or technical institutions; • other institutions offering education for adults; • state-approved alternative teacher certification program providers; • private entities that offer courses toward the attainment of a license or certificate generally recognized as necessary for a profession or vocation in a high technology occupation; and • qualified providers of entrepreneurship courses. Benefit Payments prior to the Improvements Act Instead of a single allowance for subsistence, tuition and fees, supplies, books, and equipment paid directly to recipients, as in the other GI Bills, several types of benefit payments are available under the Post-9/11 GI Bill. Prior to the Improvements Act going into effect, these payments are available to eligible individuals enrolled in IHLs, depending on their active duty status and enrollment rate. The payments specified below are available until contrary provisions of the Improvements Act go into effect. 18 A cooperative program is a full-time program of education, which consists of institutional courses and alternate phases of training in a business or industrial establishment with the training in a business or industrial establishment being strictly supplemental. 19 All programs of education must be approved by the VA and other relevant approving agencies. Congressional Research Service 8 Educational Assistance Programs Administered by the Department of Veterans Affairs Payments for Tuition and Fees, Housing, and Books and Supplies Non-active Duty Individuals Enrolled More than Half-Time Eligible individuals who are not on active duty, are pursuing a program of education at an IHL, and are enrolled more than half-time may receive the payments described below for tuition and fees, housing, and books and supplies. In most instances, the payments, as described, will be in effect for degree-seeking individuals until July 31, 2011, and until September 30, 2011, for individuals enrolled in flight training and for non-degree-seeking individuals. • Tuition. A per credit hour enrolled tuition payment is made directly to the IHL for each academic term in an amount equal to that charged to the veteran or a percentage of the maximum amount of undergraduate in-state tuition charged for the same number of credit hours at the most expensive public institution in the state in which the individual is enrolled, whichever is less. The percentage of the maximum undergraduate tuition is determined by the length of time served on active duty (Table 2). There is great variation among the states, ranging from a low of $90 per credit hour in Puerto Rico to a high of $1,549 in Texas for the 2010-2011 academic year.20 Table 2. Percentage of Maximum Post-9/11 GI Bill Benefits Based on Aggregate Length of Active Duty Service Aggregate Time Served on Active Duty Since 9/11/2001 Percentage of Maximum Benefit Payable At least 36 months 100 At least 30 continuous days on active duty and discharged due to serviceconnected disability 100 At least 30 months, but less than 36 months 90 At least 24 months, but less than 30 months 80 At least 18 months, but less than 24 months 70 At least 12 months, but less than 18 months 60 At least 6 months, but less than 12 months 50 At least 90 days, but less than 6 months 40 Source: Prepared by CRS based on Title 38 U.S.C. § 3313 and data available from the U.S. Department of Veterans Affairs. As an example, a Post-9/11 GI Bill eligible veteran with 18 months of qualifying active duty service may choose to enroll as an undergraduate in eight credit hours during one semester at Centralia College in Washington. The veteran will receive 20 Although California’s public colleges and universities only charge fees and do not charge resident undergraduate tuition, the VA and the California state approving agency reached an agreement to break up the fees into a tuition charge and fees charge for the purposes of the Post-9/11 GI Bill. U.S. Department of Veterans Affairs, 2010-11 Maximum In-State Tuition and Fees, available at http://www.gibill.va.gov/GI_Bill_Info/CH33/Tuition_and_fees.htm, last updated August 30, 2010. Congressional Research Service 9 Educational Assistance Programs Administered by the Department of Veterans Affairs 70% of the maximum benefit because the veteran has only 18 months of active duty service. The maximum tuition benefit in Washington state was $380 per credit hour for the 2009-2010 academic year. In the 2007-08 academic year, Centralia College charged $74 per credit hour for in-state part-time undergraduate tuition. 21 Assuming the veteran does not receive institutional aid, Centralia College will charge the veteran $592 ($74 per credit hour × 8 credit hours) for tuition, based on rates for the 2007-08 academic year. Assuming the veteran is only eligible for the basic Post-9/11 GI Bill benefits, the veteran could receive the lesser of $2,128 (70% × $380 per credit hour × 8 credit hours) in Post-9/11 GI Bill tuition benefits for the semester or the actual tuition charged ($592). The VA will send $592 to Centralia College on behalf of the veteran for tuition. The VA will not remit more tuition than the veteran was charged by the institution. • Fees. A fees payment is made directly to the IHL for each academic term in an amount equal to that charged to the veteran or a percentage of the maximum amount of undergraduate fees charged at the most expensive public institution in the state in which the individual is enrolled, whichever is less. The percentage of the maximum undergraduate fees is determined by the length of time served on active duty (Table 2). There is great variation among the states, ranging from a low of $249 in Guam to a high of $85,255 in Utah22 for the 2010-2011 academic year.23 • Housing Allowance. Individuals who are on active duty or enrolled half-time or less are not eligible for the Post-9/11 GI Bill housing allowance. Individuals in a program offered exclusively through distance learning24 are not eligible for a Post-9/11 GI Bill housing allowance until September 30, 2011. Individuals not so excluded may directly receive a percentage of an amount which equals the monthly basic allowance for housing for a member of the Armed Forces with dependents in pay grade E-5 (E-5 with dependents BAH) in the military housing area in which the IHL is located. 25 The percentage of the monthly housing allowance is determined by the length of time served on active duty (Table 2). There is great variation among the localities in the United States, ranging from a 21 Tuition was reported to the U.S. Department of Education in the Integrated Postsecondary Education Data System (IPEDS). 22 High fees are often related to flight training and schools of pharmacy. 23 U.S. Department of Veterans Affairs, 2010-11 Maximum In-State Tuition and Fees, available at http://www.gibill.va.gov/GI_Bill_Info/CH33/Tuition_and_fees.htm, last updated August 30, 2010. 24 Distance education is defined in 20 U.S.C. § 1003(6) as education to deliver instruction to students who are separated from the instructor and to support regular and substantive interaction between the students and the instructor, synchronously or asynchronously, that uses one or more of the following technologies: the Internet; one- and two-way transmissions through open broadcast, closed circuit, cable, microwave, broadband lines, fiber optics, satellite, or wireless communications devices; audio conferencing; or video cassettes, DVDs, and CD-ROMs, if the cassettes, DVDs, or CD-ROMs are used in a course in conjunction with the Internet, one- and two-way transmissions, or audio conferencing. 25 BAH is a DOD benefit to uniformed servicemembers to provide housing compensation when government quarters are not provided. The amount is based on housing costs in local civilian housing markets and is payable based on geographic duty location, pay grade, and dependency status. Congressional Research Service 10 Educational Assistance Programs Administered by the Department of Veterans Affairs low of $747 in the Mansfield, OH, area to a high of $2,754 in the New York City area in calendar year 2011.26 • Books and Supplies Stipend. Individuals who are not on active duty and individuals who are enrolled more than half-time may also receive a percentage of the annual stipend for books and required educational expenses. The maximum stipend is $1,000 per year. The percentage of the stipend is determined by the length of time served on active duty (Table 2). The stipend is paid each term based on the number of credit hours, or their equivalent, in which the individual is enrolled. Each credit hour, or its equivalent, is worth $41.67.27 This stipend does not reduce the entitlement period and does not reduce other benefit payments. Active Duty Individuals • Tuition and Fees. Individuals on active duty may only receive (payable to the IHL) for each academic term the amount of tuition and fees charged by the IHL, but the amount cannot duplicate any amounts received through a DOD Tuition Assistance Program. 28 This amount could exceed the amounts charged by the most expensive public institution in the state. • Housing Allowance. Individuals on active duty may not receive a housing allowance from the Post-9/11 GI Bill. • Books and Supplies Stipend. Individuals on active duty may not receive a books and supplies stipend. Individuals Enrolled Half-Time or Less • Tuition and Fees. Individuals enrolled half-time or less may only receive (payable to the IHL) for each academic term the amount charged by the IHL, but not more than the amount the individual would have been eligible to receive if enrolled full-time. 29 • Housing Allowance. Individuals enrolled half-time or less may not receive the housing allowance. • Books and Supplies Stipend. Individuals enrolled half-time or less may receive a books and supplies stipend that is a percentage of the maximum stipend of $1,000 per year, reduced in proportion to their enrollment rate. The percentage of the stipend is determined by the length of time served on active duty (Table 2). 26 U.S. Department of Defense, 2011 BAH Rates—WITH DEPENDENTS, available at http://www.defensetravel.dod.mil/site/pdcFiles.cfm?dir=/Allowances/BAH/ASCII/ as of February 1, 2011. 27 The VA has determined in 38 CFR 21.9640 that a lump sum books and supplies stipend for each academic term equals $41.67 multiplied by the number of credit hours enrolled and multiplied by the ratio of the number of credit hours enrolled to the number of credit hours required for full-time pursuit. 28 The entitlement period is reduced one month for each month enrolled. 29 The entitlement period is reduced a fraction of a month for each month enrolled. The fraction is the ratio of the number of credit hours enrolled to the number of credit hours required for full-time pursuit of the degree program in which the student is enrolled. Congressional Research Service 11 Educational Assistance Programs Administered by the Department of Veterans Affairs Yellow Ribbon Program Payments In cases in which an IHL’s tuition and fees are not fully covered by the tuition and fees payment benefits, the IHL may voluntarily enter into a Yellow Ribbon Program agreement with the U.S. Department of Veterans Affairs (VA) to match an equal percentage of some portion of the remaining tuition and fees (see “Yellow Ribbon Program” section below). Tutorial Assistance An individual is entitled to payment, not to exceed $100 monthly and up to a maximum of $1,200 over the course of the entitlement period, for tutorial assistance provided it is certified by the IHL that the individual needs tutoring to pass a course required for the approved program of education. The maximum tutorial assistance is not reduced depending on the length of active duty service. Licensing and Certification Test Fees Prior to August 1, 2011, a fee of up to $2,000 for one approved licensing or certification test may be paid to an individual regardless of whether the individual passes the test. The maximum fee is not reduced depending on the length of active duty service. Prior to August 1, 2011, the fee does not reduce the entitlement period and does not reduce other benefit payments under the Post-9/11 GI Bill. Effective August 1, 2011, the Improvements Act removes the limit on the number of licensing and certification tests, which may be reimbursed as long as each payment for each test does not exceed $2,000 or the individual’s remaining Post-9/11 GI Bill entitlement. Entitlement will be charged at the rate of one month of entitlement for each amount equal to $1,460.30 Neither the benefit nor the entitlement charge will depend on the length of qualifying active duty service. Relocation and Travel Assistance An individual who resides in a rural county and who has to relocate a distance of at least 500 miles, or an individual who must travel by air to attend an IHL, is entitled to a single payment of $500. The relocation assistance does not reduce the entitlement period, does not reduce other benefit payments, and is not reduced depending on the length of qualifying active duty service. Additional Benefit Payments Individuals may be eligible for advance payments, supplemental assistance for additional years of service, 31 supplemental assistance for critical skills,32 and Tuition Assistance Top-Up. For 30 The equivalent entitlement charge of $1,460 for the academic year beginning August 1, 2011, will increase annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). 31 Supplemental assistance for additional years of service augments an individual’s basic GI Bill benefit and is provided by the military service branch to an individual who agrees to remain on active duty for at least two years after completing at least five years of continuous service. 32 Supplemental assistance for critical skills augments an individual’s basic GI Bill benefit and is provided by the (continued...) Congressional Research Service 12 Educational Assistance Programs Administered by the Department of Veterans Affairs individuals who have not received educational assistance benefits in 30 days or more, an advance payment of the first partial and first full month of the housing allowance may be sent to the educational institution to disburse within 30 days of the start of the academic to the student planning to enroll more than half-time term. Tuition, fees, and books and supplies costs cannot be advanced.33 The Tuition Assistance “Top-Up” program was established under the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (P.L. 106-398) to promote retention. Through Tuition Assistance programs, military service branches may pay a certain amount of tuition and expenses for the education and training of active duty personnel. Under Tuition Assistance TopUp, Post-9/11 GI Bill-eligible servicemembers who have served for at least two years on active duty and who are approved for Tuition Assistance benefits may elect to receive Post-9/11 GI Bill benefits to pay for education and training expenses above the amount paid by their military service branch. Use of the Top-Up benefit results in a reduction of future Post-9/11 GI Bill benefits. Individuals who pursue all courses online are not eligible for supplemental assistance (Kickers) because Kickers are added to the monthly housing allowance, which they do not receive. Individuals who enroll half-time or less or who are serving on active duty are also not eligible for Kickers.34 The supplemental assistance for additional years of service and Kickers may be reduced depending on the individual’s time served on active duty. Individuals in the Post-9/11 GI Bill forfeit any contributions to the $600 Buy Up program.35 Benefit Payments as Enacted by the Improvements Act The Improvements Act amends the Post-9/11 GI Bill to provide several payments to eligible individuals, depending on the length of qualifying active duty service, program of education, educational objective, their active duty status, and enrollment rate or rate of pursuit. Payments for Tuition and Fees, Housing, and Books and Supplies The maximum payment levels for tuition and fees, housing, and books and supplies, as enacted by the Improvements Act, are summarized in Table 3, along with the effective date for these payment levels. Many individuals will receive payments that are lower than these maximum payments as a result of the length of their qualifying active duty service (see Table 2), their (...continued) military service branch to an individual who enlists in the regular Armed Forces with a skill or specialty in which there is a critical shortage or for which it is difficult to recruit or, in the case of critical units, retain personnel and to an individual with a skill or specialty in which there is a critical shortage or for which it is difficult to recruit or, in the case of critical units, retain personnel who agrees to serve in the Selected Reserve after separating honorably from the regular Armed Forces. 33 Department of Veterans Affairs, “Post-9/11 GI Bill: Final Rule,” 74 Federal Register 14656, 14689, March 31, 2009, clarifies the eligibility requirements for advance payments. 34 U.S. Department of Defense, Directive-Type Memorandum (DTM) 09-003: Post 9/11 GI Bill, June 22, 2009, p. 13, http://www.defenselink.mil/news/DTM%2009-003%20Post%209-11%20GI%20Bill%20Optimized1.pdf. 35 Under the MGIB-AD $600 Buy-Up program, a servicemember may contribute up to $600 to the military service branch in multiples of $20 and receive for every $20 contributed up to an additional $5 every month (up to $5,400 total) in which the individual receives MGIB-AD benefits. Congressional Research Service 13 Educational Assistance Programs Administered by the Department of Veterans Affairs enrollment rate or rate of pursuit, actual charges, active duty status, being enrolled exclusively through distance learning, and receipt of DOD Tuition Assistance. Table 3. Maximum Payments for Tuition and Fees, Housing, and Books and Supplies, as Enacted by the Improvements Act Type of Education/Training Tuition and Fees Monthly Housing Allowance Books and Supplies Stipend Effective Date E-5 with dependents BAHd in the military housing area in which the IHL is located $1,000 per year Aug. 1, 2011 None $1,000 per year Tuition and fees are effective 60 days after Jan. 4, 2011. More than half-time enrollment Degree-seeking, nonactive duty individuals At a public IHL,a “actual net cost for in-state tuition and fees” less certain student aidb At a private or foreign IHLa, up to $17,500c Degree-seeking, active duty individuals At a public IHLa, the “actual net cost for instate tuition and fees” less certain student aidb At a private or foreign IHL,a $17,500c Books and supplies stipend is effective Oct. 1, 2011. Apprenticeship or on-the-job training None E-5 with dependents BAHd where the employer is located $83 per month Oct. 1, 2011 Flight training $10,000c None None Oct. 1, 2011 Correspondence training $8,500c None None Oct. 1, 2011 Non-degree-seeking individuals $17,500c E-5 with dependents BAHd where the educational institution is located $83 per month Oct. 1, 2011 None None Aug. 1, 2011 Half-time or less enrollment Individuals enrolled half-time or less At a public IHL,a “actual net cost for in-state tuition and fees” less certain student aidb At a private or foreign IHL,a $17,500c Source: Table prepared by CRS based on the Post-9/11 Veterans Educational Assistance Improvements Act of 2010 (P.L. 111-377). Notes: Payments for many individuals will be lower than the maximum payments shown above based on the individual’s length of qualifying active duty service, enrollment rate or rate of pursuit, active duty status, actual charges, being enrolled exclusively through distance learning, and receipt of U.S. Department of Defense (DOD) Tuition Assistance. Under the DOD Tuition Assistance program, military service branches may pay a certain amount of tuition and expenses for the education and training of active duty personnel. Congressional Research Service 14 Educational Assistance Programs Administered by the Department of Veterans Affairs a. IHL is an institution of higher learning. b. The forms of student aid that may be used to offset the “actual net cost for in-state tuition and fees” are certain waivers, reductions, scholarships, and assistance. The applicable scholarships and sources of assistance used to offset the actual tuition and fees are those provided directly to the IHL for the sole purpose of defraying tuition and fees from the federal government, state governments, the IHL, or an employer. Loans and Pell Grants are specifically excluded from being used to offset the tuition and fees. Pell Grants are authorized by section 401(b) of the Higher Education Act of 1965, as amended. For more information on Pell Grants, see CRS Report R41437, Federal Pell Grant Program of the Higher Education Act: Background, Recent Changes, and Current Legislative Issues, by Shannon M. Mahan. c. This is the maximum for the academic year beginning August 1, 2011. The amount increases annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). d. The E-5 with dependents BAH is the monthly basic allowance for housing for a member of the Armed Forces with dependents in pay grade E-5. Degree-Seeking, Non-Active Duty Individuals Enrolled More than Half-Time Effective August 1, 2011, eligible individuals who are not on active duty, are pursuing a program of education leading to a degree (degree-seeking individuals) at an IHL, and are enrolled more than half-time may receive the following payments for tuition and fees, housing, and books and supplies: 36 • Tuition and fees. Degree-seeking individuals attending public IHLs are eligible to receive payments equal to the “actual net cost for in-state tuition and fees” for the program of education, reduced according to the length of time served on active duty (Table 2) and less certain waivers, reductions, scholarships, and assistance. 36 Degree-seeking individuals attending private or foreign IHLs are eligible to receive the lesser of $17,500,37 reduced according to the length of time served on active duty (Table 2), or the “actual net cost for tuition and fees” for the program of education less certain waivers, reductions, scholarships, and assistance. The applicable scholarships and sources of assistance used to offset the “actual net cost for tuition and fees” are those provided directly to the IHL for the sole purpose of defraying tuition and fees from the federal government, state governments, the IHL, or an employer. The applicable scholarships and assistance specifically exclude loans and Pell Grants.38 The tuition and fees benefit is paid directly to the IHL for each academic term. • Housing Allowance. For individuals not enrolled exclusively through distance learning, the monthly housing allowance equals the E-5 with dependents BAH in the military housing area in which the IHL is located, reduced according to the length of time served on active duty (Table 2) and the individual’s enrollment rate. For example, an individual enrolled in 10 credit hours, assuming 12 credit hours as full-time, will receive 80% of the E-5 with dependents BAH where the The “actual net cost for tuition and fees” is not defined. 37 The maximum of $17,500 for the academic year beginning August 1, 2011, increases annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). 38 Pell Grants are authorized by section 401(b) of the Higher Education Act of 1965, as amended. For more information on Pell Grants, see CRS Report R41437, Federal Pell Grant Program of the Higher Education Act: Background, Recent Changes, and Current Legislative Issues, by Shannon M. Mahan. Congressional Research Service 15 Educational Assistance Programs Administered by the Department of Veterans Affairs IHL is located, reduced according to the length of time served on active duty (Table 2). The E-5 with dependents BAH for attendance at foreign institutions equals the national average of the E-5 with dependents BAH. Effective October 1, 2011, for individuals enrolled exclusively through distance learning, the monthly housing allowance is 50% of the national average of the E-5 with dependents BAH, reduced according to the length of time served on active duty (Table 2) and the individual’s enrollment rate. The housing allowance is paid directly to the eligible individual monthly. • Books and Supplies Stipend. Individuals also receive a maximum stipend of $1,000 per year for books and required educational expenses. The stipend is paid monthly directly to the eligible individual based on the number of credit hours, or their equivalent, in which the individual is enrolled each term. Each credit hour, or its equivalent, is worth $41.67, reduced according to the length of time served on active duty (Table 2).39 Degree-Seeking, Active Duty Individuals Enrolled More than Half-Time Degree-seeking individuals serving on active duty while enrolled more than half-time may receive the following payments for tuition and fees, housing, and books and supplies: • Tuition and fees. The tuition and fees benefit is paid directly to the IHL on behalf of the eligible individual for each academic term. Effective 60 days after January 4, 2011, the benefit amount is the lesser of • at a public IHL, the “actual net cost for in-state tuition and fees” for the program of education, reduced according to the length of time served on active duty (Table 2) and less certain waivers, reductions, scholarships, and assistance; • at a private or foreign IHL, the lesser of $17,500,40 reduced according to the length of time served on active duty (Table 2), or the “actual net cost for tuition and fees” for the program of education less certain waivers, reductions, scholarships, and assistance; or • the tuition and fees for the program of education that are not paid by the DOD Tuition Assistance Program. • Housing Allowance. Degree-seeking individuals serving on active duty are ineligible to receive a Post-9/11 GI Bill housing allowance. • Books and Supplies Stipend. Effective October 1, 2011, a degree-seeking individual enrolled more than half-time while on active duty receives for each academic term a lump sum stipend for books and supplies in the amount of $1,000, reduced according to the length of time served on active duty (Table 2) 39 The VA has determined in 38 CFR 21.9640 that a lump sum books and supplies stipend for each academic term equals $41.67 multiplied by the number of credit hours enrolled and multiplied by the ratio of the number of credit hours enrolled to the number of credit hours required for full-time pursuit. 40 The maximum of $17,500 for the academic year beginning August 1, 2011, increases annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). Congressional Research Service 16 Educational Assistance Programs Administered by the Department of Veterans Affairs and according to the proportion of a complete academic year that such academic term constitutes. Individuals Pursuing Apprenticeship or On-the-Job Training More than Half-Time Effective on October 1, 2011, individuals pursuing apprenticeship or on-the-job training more than half-time may receive the following payments for tuition and fees, housing, and books and supplies: • Tuition and fees. Individuals pursuing apprenticeship or on-the-job training more than half-time are ineligible to receive a tuition and fees benefit. • Housing Allowance. Individuals pursuing apprenticeship or on-the-job training more than half-time receive a monthly housing allowance equal to 100%, 80%, 60%, 40%, and 20% of the E-5 with dependents BAH where the employer is located for the first six months, second six months, third six months, fourth six months, and thereafter, respectively. The housing allowance is further reduced depending on the length of time served on qualifying active duty (Table 2) and by the proportion of working/training hours completed each month that is below 120. • Books and Supplies Stipend. Individuals pursuing apprenticeship or on-the-job training more than half-time receive a books and supplies stipend each academic term in the amount of $83 per month, reduced according to the length of time served on active duty (Table 2). Flight Trainees Enrolled More than Half-Time Effective on October 1, 2011, individuals enrolled more than half-time in programs of education consisting of flight training, regardless of the type of institution, may receive the following payments for tuition and fees, housing, and books and supplies: • Tuition and fees. Individuals enrolled more than half-time in flight training receive a tuition and fees benefit equal to the lesser of $10,000,41 reduced according to the length of time served on qualifying active duty (see Table 2), or the “actual net cost for in-state tuition and fees” for the program of education less certain waivers, reductions, scholarships, and assistance. The tuition and fees benefit is paid to the educational institution after the individual completes the training. • Housing Allowance. Individuals pursuing flight training are ineligible to receive a housing allowance while enrolled more than half-time. • Books and Supplies Stipend. Individuals pursuing flight training are ineligible to receive a books and supplies stipend while enrolled more than half-time. 41 The maximum of $10,000 for the academic year beginning August 1, 2011, will increase annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). Congressional Research Service 17 Educational Assistance Programs Administered by the Department of Veterans Affairs Correspondence Trainees Enrolled More than Half-Time Effective on October 1, 2011, individuals enrolled more than half-time exclusively in correspondence training programs, regardless of the type of institution, may receive the following payments for tuition and fees, housing, and books and supplies: • Tuition and fees. Individuals enrolled exclusively in correspondence training more than half-time receive a tuition and fees benefit equal to the lesser of $8,500,42 reduced according to the length of time served on qualifying active duty (see Table 2), or the “actual net cost for tuition and fees” for the program of education less certain waivers, reductions, scholarships, and assistance. The tuition and fees benefit is paid to the educational institution after the individual completes the training. • Housing Allowance. Individuals pursuing correspondence training exclusively are ineligible to receive a housing allowance while enrolled more than half-time. • Books and Supplies Stipend. Individuals pursuing correspondence training exclusively are ineligible to receive a books and supplies stipend while enrolled more than half-time. Non-Degree-Seeking Individuals Enrolled More than Half-Time Effective on October 1, 2011, active duty and non-active duty individuals who are enrolled more than half-time in pursuit of a certificate or non-college degree at an institution or establishment other than an IHL and who are not in on-the-job and apprenticeship, flight, or correspondence training may receive the following payments for tuition and fees, housing, and books and supplies: • Tuition and fees. Non-degree-seeking individuals enrolled more than half-time receive a tuition and fees benefit equal to the lesser of $17,500,43 reduced according to the length of time served on qualifying active duty (see Table 2), or the “actual net cost for in-state tuition and fees” less certain waivers, reductions, scholarships, and assistance. The tuition and fees benefit is paid to the educational institution each academic term.44 • Housing Allowance. For individuals pursuing a program of education inresidence, the monthly housing allowance is equal to the E-5 with dependents BAH where the educational institution is located, reduced according to the length of time served on qualifying active duty (see Table 2) and in proportion to the enrollment rate. Individuals pursuing a program of education through distance 42 The maximum of $8,500 for the academic year beginning August 1, 2011, will increase annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). 43 The maximum of $17,500 for the academic year beginning August 1, 2011, will increase annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). 44 Entitlement is charged one month for each payment of tuition and fees that is equal to $1,458 ($17,500 divided by 12), reduced according to the length of time served on qualifying active duty (see Table 2). Congressional Research Service 18 Educational Assistance Programs Administered by the Department of Veterans Affairs learning receive 50% of the amount received by individuals pursuing a program of education in-residence. • Books and Supplies Stipend. Non-degree-seeking individuals enrolled more than half-time receive a books and supplies stipend in the amount of $83 per month paid to the individual for each academic term, reduced according to the length of time served on qualifying active duty (see Table 2). Individuals Enrolled Half-Time or Less Effective August 1, 2011, individuals enrolled half-time or less in any program of education and regardless of the active duty status may receive the following payments for tuition and fees, housing, and books and supplies: • Tuition and fees. Individuals enrolled half-time or less will be eligible for a tuition and fees benefit of the “actual net cost for in-state tuition and fees” assessed by the IHL less certain waivers, reductions, scholarships, and assistance, but not more than the amount for which the individual would have been eligible if enrolled more than half-time in a program of education leading to a degree at an IHL. • Housing Allowance. Individuals enrolled half-time or less are ineligible to receive a housing allowance. • Books and Supplies Stipend. Individuals enrolled half-time or less are ineligible to receive a books and supplies stipend. Yellow Ribbon Program Payments In cases in which an IHL’s tuition and fees are not fully covered by the tuition and fees payment benefits, the IHL may voluntarily enter into a Yellow Ribbon Program agreement with the U.S. Department of Veterans Affairs (VA) to match an equal percentage of some portion of the remaining tuition and fees (see “Yellow Ribbon Program” section below). Tutorial Assistance An individual is entitled to payment, not to exceed $100 monthly and up to a maximum of $1,200 over the course of the entitlement period, for tutorial assistance provided it is certified by the IHL that the individual needs tutoring to pass a course required for the approved program of education. The maximum tutorial assistance is not reduced depending on the length of active duty service. Tutorial assistance under the Post-9/11 GI Bill does not reduce the entitlement period and does not reduce other benefit payments. Licensing and Certification Test Fees Effective August 1, 2011, a fee of up to $2,000 for each approved licensing or certification test or the individual’s remaining Post-9/11 GI Bill entitlement, whichever is less, is available to an Congressional Research Service 19 Educational Assistance Programs Administered by the Department of Veterans Affairs individual regardless of whether the individual passes the test. Entitlement is charged at the rate of one month of entitlement for each amount equal to $1,460.45 National Tests Effective August 1, 2011, individuals receive reimbursement for a national test for admissions to an IHL and a national test providing an opportunity for course credit at an IHL. The maximum benefit for a test will be the individual’s remaining Post-9/11 GI Bill entitlement. Entitlement is charged at the rate of one month of entitlement for each amount equal to $1,460.46 Relocation and Travel Assistance An individual who resides in a rural county and who has to relocate a distance of at least 500 miles, or an individual who must travel by air to attend an IHL, is entitled to a single payment of up to $500. The relocation assistance does not reduce the entitlement period, does not reduce other benefit payments, and is not reduced depending on the length of active duty service. Additional Benefit Payments Individuals may be eligible for advance payments,47 supplemental assistance for additional years of service, 48 supplemental assistance for critical skills, 49 and Tuition Assistance Top-Up. 50 Individuals who pursue all courses online are not eligible for supplemental assistance (Kickers) because Kickers are added to the monthly housing allowance, which they do not receive. Individuals who enroll half-time or less or who are serving on active duty are also not eligible for Kickers.51 Effective August 1, 2011, for individuals who make an irrevocable election to receive 45 The equivalent entitlement charge of $1,460 for the academic year beginning August 1, 2011, will increase annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). 46 The equivalent entitlement charge of $1,460 for the academic year beginning August 1, 2011, will increase annually thereafter according to the average increase in undergraduate tuition in the United States as determined by the U.S. Department of Education (ED). 47 For individuals who have not received educational assistance benefits in 30 days or more, an advance payment of the first partial and first full month of the housing allowance may be sent to the educational institution to disburse within 30 days of the start of the academic to the student planning to enroll more than half-time term. Tuition, fees, and books and supplies costs cannot be advanced. 48 Supplemental assistance for additional years of service augments an individual’s basic GI Bill benefit and is provided by the military service branch to an individual who agrees to remain on active duty for at least two years after completing at least five years of continuous service. 49 Supplemental assistance for critical skills augments an individual’s basic GI Bill benefit and is provided by the military service branch to an individual who enlists in the regular Armed Forces with a skill or specialty in which there is a critical shortage or for which it is difficult to recruit or, in the case of critical units, retain personnel and to an individual with a skill or specialty in which there is a critical shortage or for which it is difficult to recruit or, in the case of critical units, retain personnel who agrees to serve in the Selected Reserve after separating honorably from the regular Armed Forces. 50 Through Tuition Assistance programs, military service branches may pay a certain amount of tuition and expenses for the education and training of active duty personnel. Under Tuition Assistance Top-Up, Post-9/11 GI Bill-eligible servicemembers who have served for at least two years on active duty and who are approved for Tuition Assistance benefits may elect to receive Post-9/11 GI Bill benefits to pay for education and training expenses above the amount paid by their military service branch. 51 U.S. Department of Defense, Directive-Type Memorandum (DTM) 09-003: Post 9/11 GI Bill, June 22, 2009, p. 13, (continued...) Congressional Research Service 20 Educational Assistance Programs Administered by the Department of Veterans Affairs Post-9/11 GI Bill benefits in lieu of benefits under the MGIB-AD or MGIB-SR, the Kicker will be reduced in proportion to the enrollment rate.52 The supplemental assistance for additional years of service and Kickers may be reduced depending on the individual’s time served on active duty. Individuals in the Post-9/11 GI Bill forfeit any contributions to the $600 Buy Up program. 53 Benefit Availability and Duration The entitlement period is 36 months. One major difference for veterans discharged with a service connected disability is that under the Post-9/11 GI Bill they are eligible for the maximum (100%) benefit over 36 months, whereas the MGIB-AD only provides one month of entitlement for each month of active duty service, but no more than 36 months. Veterans and servicemembers, many of whom will be eligible for more than one program, can combine benefits with other educational benefit programs administered by the U.S. Department of Veterans Affairs (VA) to receive up to 48 months of educational benefits. By law, no educational benefits under the Post-9/11 GI Bill can be paid 15 years or more after discharge or release from active duty.54 Yellow Ribbon Program The Yellow Ribbon G.I. Education Enhancement Program covers a portion of the tuition and fees that exceed the base Post-9/11 GI Bill benefit. The Yellow Ribbon Program payment is paid equally by the IHL and the VA. The program allows IHLs to enter into agreements with the VA to match a certain amount of the tuition and fees not already covered by the basic Post-9/11 GI Bill.55 Each IHL must establish the number of eligible individuals it is willing to support and how much it is willing to contribute for each individual. VA regulations allow IHLs to specify their support by each sub-element: college or professional school; and by student status: undergraduate, graduate, or doctoral.56 The program is only available to individuals who have served on active duty for 36 months and those who were discharged due to a service-connected disability after 30 consecutive days of active duty service. As long as the IHL remains in the Yellow Ribbon Program, an individual admitted under the program who maintains satisfactory (...continued) http://www.defenselink.mil/news/DTM%2009-003%20Post%209-11%20GI%20Bill%20Optimized1.pdf. 52 Funding for the additional educational assistance for critical skills or specialties will be paid from the DOD Education Benefits Fund (10 U.S.C. § 2006) or from the Department of Homeland Security (DHS) appropriations. 53 Under the MGIB-AD $600 Buy-Up program, a servicemember may contribute up to $600 to the military service branch in multiples of $20 and receive for every $20 contributed up to an additional $5 every month (up to $5,400 total) in which the individual receives MGIB-AD benefits. 54 The 15-year limitation does not include periods when an individual was ineligible for the program but their discharge status was later amended to make them eligible for the program, and periods when an individual was detained by a foreign government or power and any related recovery period in a hospital. Individuals incapable of beginning education as a result of a physical or mental disability can be granted an extension for the period of incapacity. 55 This program is not related to the Yellow Ribbon Reintegration Program authorized by the National Defense Authorization Act for Fiscal Year 2008 (P.L. 110-181). The Yellow Ribbon Reintegration Program consists of informational events and activities for reservists, their families, and community members to facilitate access to services supporting their health and well-being through the pre-deployment, deployment, demobilization, and post-deploymentreconstitution. 56 38 CFR 21.9700 as of March 31, 2009. Congressional Research Service 21 Educational Assistance Programs Administered by the Department of Veterans Affairs progress will continue to be supported under the program. As of June 24, 2009, the VA had entered into over 2,500 Yellow Ribbon agreements with about 700 public and private schools in all 50 states, the District of Columbia, and Puerto Rico. The schools have agreed to support between one and an unlimited number of eligible students for $50 per semester to the maximum amount needed by the student. For example, a Post-9/11 GI Bill eligible veteran with 36 months of qualifying active duty service may choose to enroll as a graduate student in eight credit hours during one semester at Gonzaga University in Washington. The base Post-9/11 GI Bill benefit covers the maximum amount of undergraduate tuition charged at a public institution in the state. The veteran will receive 100% of the maximum benefit because the veteran has 36 months of active duty service. In the 2007-08 academic year, Gonzaga University charged $670 per credit hour for part-time graduate tuition and $176 per year in full-time graduate student fees.57 For the 2009-2010 academic year, the maximum charge per credit hour at the most expensive public institution in Washington is $380, and the maximum fees for an academic term at the most expensive public institution in the state are $14,444.50. Assuming the veteran does not receive institutional aid, Gonzaga University will charge the veteran a total of $5,448, composed of $5,360 ($670 per credit hour × 8 credit hours) in tuition and $88 ($176 fees per year × ½ for one semester) in fees. Assuming the veteran is only eligible for the basic Post-9/11 GI Bill benefits, the veteran could receive the lesser of $3,040 (100% × $380 per credit hour × 8 credit hours) in Post-9/11 GI Bill tuition benefits for the semester or the actual tuition charged ($5,360), and the lesser of $14,444.50 in Post-9/11 GI Bill fees benefits for the semester or the actual fees charged ($88). For the basic Post-9/11 GI Bill benefits, the VA will send $3,040 to the University on behalf of the veteran for tuition. For the basic Post-9/11 GI Bill benefits, the VA will send $88 to the university on behalf of the veteran for fees. In summary, the veteran has been charged $5,448 in tuition and fees, and the VA has paid $3,128 ($3,040 tuition + $88 fees) in basic benefits, leaving an unpaid balance of $2,320 ($5,448 - $3,128). Under the Yellow Ribbon Program in 2009-2010, Gonzaga University has agreed to support 25 students for up to $11,420 per student per year. If the veteran in this example is one of the 25 students, the VA will match the university’s payment up to $11,420 per year or $5,710 per semester. Therefore, the VA will make a Yellow Ribbon payment of $1,160, the lesser of half of the unpaid balance $1,160 ($2,320 ÷ 2) or $5,710. The VA will have paid $4,288 ($3,128 in basic tuition and fees + $1,160 in Yellow Ribbon payments) on behalf of the veteran. The Post-9/11 GI Bill will provide the veteran a total of $5,448 ($4,288 from the VA + $1,160 from the university) for tuition and fees. The veteran will not need to provide any additional out-of-pocket funds for tuition and fees charges. Marine Gunnery Sergeant John David Fry Scholarship Program The Supplemental Appropriations Act of 2009 (P.L. 111-32) amended the Post-9/11 GI Bill to create the Marine Gunnery Sergeant John David Fry Scholarship. The scholarship program is available to the children of individuals who, on or after September 11, 2001, die in the line of duty while serving on active duty as a member of the Armed Forces. The definition of children is the same as it is in the MGIB-AD, but also includes married children and children over 23 years of age. 58 The Armed Forces include the Reserves and National Guard, but exclude the Public 57 Tuition and fees were reported to the U.S. Department of Education in the Integrated Postsecondary Education Data System (IPEDS). 58 Under the MGIB-AD, children are defined as unmarried persons under the age of 18, unmarried persons who became permanently incapable of self-support before the age of 18, or unmarried persons between the ages of 18 and 23 who (continued...) Congressional Research Service 22 Educational Assistance Programs Administered by the Department of Veterans Affairs Health Service and National Oceanic and Atmospheric Administration. Scholarship recipients are eligible to receive most Post-9/11 GI Bill benefits for 36 months at the maximum 100% rate. Scholarship recipients are not eligible to receive Yellow Ribbon payments. No scholarship program benefits can be paid 15 years or more after the child’s 18th birthday. Although the program took effect August 1, 2009, payments, including retroactive payments, were not made until August 1, 2010. The VA has established rules for individuals who are eligible for the scholarship and who have served in the Armed Forces. Children who are eligible under the MGIBs or REAP must relinquish eligibility under one of those programs to receive benefits under the Post-9/11 GI Bill. Children who are serving on active duty will receive benefits like other servicemembers on active duty. 59 Transferability to Dependents The DOD allows the transfer of benefits from individuals eligible for the Post-9/11 GI Bill to certain family members.60 The Post-9/11 GI Bill-eligible individual must be a member of the Armed Forces (active duty or Selected Reserves) on or after August 1, 2009. Effective August 1, 2011, the Secretary of Defense may authorize commissioned officers of the PHS and NOAA to transfer Post-9/11 GI Bill benefits to dependents if it is in the national security interests of the United States. Per DOD Directive-Type Memorandum (DTM) 09-003, three categories of individuals in the Armed Forces, excluding PHS and NOAA, may transfer some or all of their benefits. The first category includes servicemembers who have completed at least six years of service (active duty or Selected Reserves) and agree to serve four additional years. The second category includes servicemembers who have completed ten years of service and are precluded from serving an additional four years but agree to serve the maximum amount of time allowable. The third category includes servicemembers who become retirement eligible between August 1, 2009, and August 1, 2013. Servicemembers in the third category are required to serve an additional 0-3 years, depending on their retirement eligibility date. 61 Individuals eligible to transfer their benefits can transfer up to 36 months of benefits to their child, to their spouse, or to some combination of children and spouse.62 The family members must be enrolled in the DOD Defense Eligibility Enrollment Reporting System (DEERS) and be eligible for benefits at the time the transfer is designated. The eligible servicemember can (...continued) are in school. Children must be legitimate children, acknowledged illegitimate children, legally adopted, or stepchildren who are members of the eligible individual’s household. 59 U.S. Department of Veterans Affairs, “Post-9/11 GI Bill: Marine Gunnery Sergeant John David Fry Scholarship,” press release, http://www.gibill.va.gov/documents/Fry_Scholarship.pdf. 60 U.S. Department of Defense, Directive-Type Memorandum (DTM) 09-003: Post 9/11 GI Bill, June 22, 2009, http://www.defenselink.mil/news/DTM%2009-003%20Post%209-11%20GI%20Bill%20Optimized1.pdf. 61 Servicemembers who become eligible for retirement on August 1, 2009, or who have an approved retirement date after August 1, 2009, and before July 1, 2010, are not required to serve additional time. Servicemembers who become eligible for retirement after August 1, 2009, and before August 1, 2010, are required to serve one additional year of service. Servicemembers who become eligible for retirement on or after August 1, 2010, and before August 1, 2011, are required to serve two additional years of service. Servicemembers who become eligible for retirement on or after August 1, 2011, and before August 1, 2012, are required to serve three additional years of service. 62 The transferred benefits cannot be considered marital property in divorce proceedings. Congressional Research Service 23 Educational Assistance Programs Administered by the Department of Veterans Affairs designate the family member, the number of months of the entitlement period, and the period during which it may be used, and can modify or revoke the designation at any time. After retirement or separation from the Armed Forces, the individual can only modify the number of months of the transferred entitlement period or revoke the designation for those family members who have received transferred benefits before the retirement or separation. After retirement or separation from the Armed Forces, the individual cannot add new family members. As the dependent uses the transferred benefit, the remaining entitlement periods of both the dependent and servicemember are reduced. The designees can use the benefit for the same purposes as the eligible individual and for the completion of a high school diploma or its equivalent. A spouse can begin using the benefit after the servicemember completes at least six years of service or the length of service required by regulation. A spouse who subsequently divorces the Post-9/11 GI Bill-eligible individual is still eligible to use the transferred benefits unless the eligible individual revokes the transfer. The spouse receives payments according to the current status of the eligible individual. The spouse may use the benefit within 15 years of the eligible individual’s discharge or release from active duty service. Children have to achieve a high school diploma or its equivalent or reach 18 years of age before using the benefit. The servicemember has to complete at least ten years of service or the length of service required by regulation before the designated children can use the benefit. Children receive payments as if the eligible individual were not on active duty. Children must use the benefit before reaching 26 years of age. 63 Montgomery GI Bill (MGIB) House hearings examining the possible need for a new GI Bill in the early 1980s focused on the difficulties the military was experiencing in recruiting and retaining a highly qualified allvolunteer force: active duty, Reserves, and National Guard.64 Although recruiting problems were not uniformly distributed by branch, rank, grade, or military occupational specialty (MOS), some suggested reinstating the draft. DOD was concerned about the high cost of attrition: training new recruits and loss of experience and expertise. Some witnesses argued for the elimination of the servicemember’s monetary contribution toward the benefit because retention rates were not appreciably increased by the prior GI Bill, VEAP, which required a contribution from servicemembers. Only 20-25% of new recruits contributed to VEAP, and 40% had disenrolled from the program to recoup their contribution, which equaled 5% to 20% of the after-tax pay for some enlisted members. Despite a strong desire to increase retention by allowing universal 63 Effective August 1, 2011, the Improvements Act grants an extension of the entitlement period to children to whom Post-9/11 GI Bill benefits are transferred and who are incapable of pursuing their chosen program of education before age 26 as a result of being the primary caregiver, according to the family caregiver assistance program (38 U.S.C. §1720G(a)). 64 Honorable Bob Edgar indicated in his prepared statement that “up to an estimated one-third of active duty male first term enlistees from fiscal year 1976 to fiscal year 1978 failed to complete three years of initial service.” U.S. Congress, House Committee on Armed Services, Subcommittee on Military Personnel and Compensation, New Educational Assistance Program for the Military to Assist Recruiting, 97th Cong., 1st and 2nd sess., June 24, September 10, 16, 17, 24, 30, October 1, 7, 21, 28, November 17, 1981, and March 11, 1982, HRG-1981-ASH-0030 (Washington: GPO, 1982). Congressional Research Service 24 Educational Assistance Programs Administered by the Department of Veterans Affairs transfer of dollars of entitlement and the entitlement period to spouses and children after ten years of service, such a proposal was deemed too expensive. 65 Montgomery GI Bill—Active Duty (MGIB-AD) The Montgomery GI Bill-Active Duty (MGIB-AD), originally called the All-Volunteer Force Educational Assistance Program, was initially enacted as part of the Department of Defense Authorization Act, 1985 (P.L. 98-525), as a three-year pilot program.66 The program was finally codified in Title 38, U.S.C., Chapter 30. The original purpose of the permanent program was to provide educational readjustment assistance and to aid in the recruitment and retention of highly qualified personnel for both the active and reserve components of the Armed Forces. It was also expected to promote and assist the All-Volunteer Force program and the Total Force Concept of the Armed Forces67 based upon service on active duty or a combination of service on active duty and in the Selected Reserve, including the National Guard. To ensure the recruitment of higher quality individuals, more likely to stay in the military, the program requires that all individuals complete a high school diploma, its equivalent, or 12 credit hours of postsecondary education in order to be eligible for benefits.68 Eligible Individuals Educational assistance benefits are available to individuals defined in four categories. • Category 1 individuals entered active-duty for the first time after June 30, 1985, and served a minimum of three continuous years on active duty, or two continuous years if the initial obligated period of active duty was less than three years. Category 1 individuals may also have been discharged with a serviceconnected disability, hardship, pre-existing condition, certain reductions-in-force, a physical or mental condition that did not result from the individual’s own willful misconduct, or for the government’s convenience after serving a minimum of 30 months active duty, or 20 months if the initial obligated period of active duty was less than three years. However, individuals who receive an officer’s commission following graduation from one of the service academies69 or following graduation as a Reserve Officer Training Corps (ROTC) scholarship 65 U.S. Congress, House Committee on Armed Services, Subcommittee on Military Personnel and Compensation, New Educational Assistance Program for the Military to Assist Recruiting, 97th Cong., 1st and 2nd sess., June 24, September 10, 16, 17, 24, 30, October 1, 7, 21, 28, November 17, 1981, and March 11, 1982, HRG-1981-ASH-0030 (Washington: GPO, 1982). 66 The New GI Bill Continuation Act (P.L. 100-48) permanently authorized the All-Volunteer Force Educational Assistance Program and the Selected Reserve Component. It also changed the name of the program to the Montgomery GI Bill. 67 Secretary of Defense Melvin Laird introduced the Total Force Concept of the Armed Forces in 1970 to reduce military expenditures by calling on the Reserves and National Guard to serve an increased active duty role. 68 U.S. Congress, House Committee on Armed Services, Subcommittee on Military Personnel and Compensation, New Educational Assistance Program for the Military to Assist Recruiting, 97th Cong., 1st and 2nd sess., June 24, September 10, 16, 17, 24, 30, October 1, 7, 21, 28, November 17, 1981, and March 11, 1982, H.A.S.C. 97-45 (Washington: GPO, 1982). 69 The applicable service academies are the United States Military Academy (USMA), the United States Naval Academy (USNA), the United States Air Force Academy (USAFA), or the Coast Guard Academy (USCGA). Congressional Research Service 25 Educational Assistance Programs Administered by the Department of Veterans Affairs recipient are not eligible. 70 Category 1 individuals also include Selected Reservists and National Guard members who serve two continuous years of honorable active duty service upon first entry into the military after June 30, 1985, and who serve a minimum of four continuous years of service in the Reserves beginning within a year of completing the active duty service. For reservists and National Guard members, the active duty service period includes only duty under Title 10 U.S.C. and certain full-time National Guard duty for the purpose of organizing, administering, recruiting, instructing, or training the National Guard under Title 32 U.S.C. commissioned officers of the Public Health Service (PHS) and the National Oceanic Atmospheric Association (NOAA) are also eligible. • Category 2 individuals had a remaining period of entitlement under the PostKorean Conflict GI Bill (see Appendix C) as of December 31, 1989, and were on active duty after June 30, 1985.71 Category 1 and 2 individuals exclude officers commissioned upon graduation from the U.S. Military, Naval, Air Force, or Coast Guard Academy after December 31, 1976. Category 1 and 2 individuals also exclude officers who complete training as cadets and midshipmen if the officer entered active duty before October 1, 1996, or entered active duty after September 30, 1996, and received more than $3,400 for each year of such participation. • Category 3 individuals elected MGIB-AD before receiving an involuntary separation, voluntary separation incentive, or special separation benefit. • Category 4 individuals are VEAP participants who either had a remaining period of entitlement; were on active duty on October 9, 1996; or elected to transfer to the MGIB-AD by October 9, 1997; and made the requisite $1,200 contribution. VEAP participants who served on active duty from October 9, 1996, through April 1, 2000; elected to transfer to the MGIB-AD by October 31, 2001; and made a $2,700 contribution are also in Category 4. A small group of National Guard members who first served on full-time National Guard active duty under Title 32 U.S.C. between June 30, 1985, and November 29, 1989, were eligible to make the requisite $1,200 contribution during an open period from October 9, 1996, to June 8, 1997. The active duty service period requirements exclude time assigned to an education or training program similar to those offered to civilians unless assigned by the military full-time, exclude 70 Officers who received their commission after December 31, 1976, following graduation as Reserve Officer Training Corps (ROTC) scholarship recipients are not eligible for the MGIB-AD if they entered active duty before October 1, 1996, and they are not eligible if they entered active duty after September 30, 1996, and received more than $3,400 for each year of ROTC participation. 71 Individuals eligible for the Post-Korean Conflict GI Bill who have been on continuous active duty since October 19, 1984, and served at least three years of continuous active duty after June 30, 1985, or were discharged or released from active duty after June 30, 1985, for a service-connected disability or hardship, or were discharged for the government’s convenience after serving a minimum of 30 months active duty after June 30, 1985, are also eligible to MGIB-AD educational benefits. Category 2 individuals also include reservists eligible for the Post-Korean Conflict GI Bill who serve two continuous years of honorable active duty service in the military after June 30, 1985, and who serve a minimum of four continuous years of service in the Reserves immediately following the active duty service. Category 2 includes individuals eligible for the Post-Korean Conflict GI Bill who were not on active duty on October 19, 1984, but re-enlisted and served three continuous years on active duty or were discharged or released for reasons similar to those of other individuals eligible for the Post-Korean Conflict GI Bill. Congressional Research Service 26 Educational Assistance Programs Administered by the Department of Veterans Affairs time spent as a cadet or midshipman at one of the service academies, and exclude the initial 12week period of active duty for training in the National Guard and the Reserves. The active duty service period requirements include time spent organizing, administering, recruiting, instructing, or training the National Guard while on full-time Army National Guard or Air National Guard duty and include time spent at a service academy or preparing to attend a service academy if the individual fails and returns to active duty. Individuals in all categories must have completed a high school diploma, its equivalent, or 12 semester hours in a program of education leading to a standard college degree. Also, all individuals must continue on active duty or in the Reserves, as appropriate; be discharged under fully honorable conditions; be placed on the retired or temporary disability retired list; or be transferred to certain reserve components. To become eligible for MGIB-AD benefits, Category 1 individuals must not decline the benefit in writing, and must allow the first 12 months of their military pay to be reduced by $100 per month. 72 This is in contrast to the VEAP, which required servicemembers to elect to participate by making contributions. In certain circumstances, servicemembers who initially declined the benefit were allowed to enroll in the program. 73 To discourage experienced personnel from leaving the military, servicemembers remaining in service are eligible to receive educational benefits after serving two continuous years on active duty. Eligible Programs of Education, Institutions, and Establishments The approved programs of education are the following: • courses at an educational institution (see below for the definition of an educational institution) which lead to a predetermined educational, vocational, or professional objective or objectives if related to the same career (this includes traditional undergraduate and graduate programs); • courses required by the Administrator of the Small Business Administration as a condition to obtaining financial assistance under the provisions of section 7(i)(1) of the Small Business Act (15 U.S.C. 636(i)(1)); • licensing or certification tests for a predetermined vocation or profession, provided such tests and the licensing or credentialing organizations or entities that offer such tests are approved; • courses offered by a qualified provider of entrepreneurship courses; • national tests for admission to IHLs or graduate schools (such as the Scholastic Aptitude Test (SAT)); • national tests providing an opportunity for course credit at IHLs (such as the Advanced Placement (AP) exam); 72 Selected Reservists may make a one-time lump-sum contribution or 12-monthly contributions totaling $1,200 after completing two years of active duty service. In the event of an individual’s service-connected death while on active duty, the designated beneficiary, surviving spouse, children, or parents will be reimbursed any contribution by the servicemember that had not already been used. 73 Servicemembers were allowed to withdraw their election to not enroll in the program during an open period between December 1, 1988, and June 30, 1989; before being involuntarily separated; and before separating from the active service with an honorable discharge and receiving certain voluntary separation incentives. Congressional Research Service 27 Educational Assistance Programs Administered by the Department of Veterans Affairs • a preparatory course for a test that is required or used for admission to an institution of higher education or a graduate school; • full-time programs of apprentice or other on-the-job training, for individuals not on active duty; and • cooperative programs74 for individuals not on active duty.75 Educational institutions are defined as • public or private elementary or secondary schools; • vocational, correspondence, business, normal, or professional schools; • colleges or universities; • scientific or technical institutions; • other institutions furnishing education for adults; • state-approved alternative teacher certification program providers; • private entities that offer courses toward the attainment of a license or certificate generally recognized as necessary for a profession or vocation in a high technology occupation; and • qualified providers of entrepreneurship courses. Benefit Payments Unlike the Post-9/11 GI Bill, a single monthly allowance for subsistence, tuition and fees, supplies, books, and equipment is paid directly to recipients. Beginning in FY2010, and unless Congress changes the amount, the maximum monthly benefit amounts is adjusted annually based on the annual percentage increase in the average cost of undergraduate tuition in the United States, as determined by the National Center for Education Statistics (NCES).76 Effective October 1, 2010, veterans may receive up to $1,426 monthly for full-time training.77 A reduced allowance is provided for less than full-time training and for those who served less than three continuous years on active duty. Individuals on active duty and those training less than half-time receive actual tuition and fees or the monthly allowance, whichever is less. For an individual in apprenticeship or on-the-job training, the monthly allowance is 75%, 55%, and 35% of the 74 A cooperative program is a full-time program of education, which consists of institutional courses and alternate phases of training in a business or industrial establishment with the training in a business or industrial establishment being strictly supplemental. 75 All programs of education must be approved by the VA and other relevant approving agencies. 76 Prior to FY2010, the maximum monthly benefit amounts could be adjusted at any time by Congress or be adjusted annually according to the consumer price index for all urban consumers (CPI-U). 77 The benefit payment has been increased several times since the program’s enactment. When the MGIB-AD program was enacted in 1985, the maximum monthly benefit was $300. The maximum monthly benefit was increased to $400 by the Veterans’ Benefits Act of 1992 (P.L. 102-568), to $528 by the Transportation Equity Act for the 21st Century (P.L. 105-178) in 1998, and to $650 by the Veterans Benefits and Health Care Improvement Act of 2000 (P.L. 106419). The Veterans Education and Benefits Expansion Act of 2001 (P.L. 107-103) provided three increases: $800 for months beginning on or after January 1, 2002; $900 for months occurring during FY2003; and $985 for months occurring during FY2004. For FY2009, the monthly benefit amount was increased to $1,321 by the Supplemental Appropriations Act, 2008 (P.L. 110-252). Congressional Research Service 28 Educational Assistance Programs Administered by the Department of Veterans Affairs monthly benefit otherwise payable to that individual for the first six months, second six months, and thereafter, respectively.78 Individuals in cooperative training receive 80% of the monthly allowance. 79 Individuals pursuing education exclusively by correspondence receive 55% of the institution’s established charges for completed courses, and individuals pursuing education consisting exclusively of flight training receive 60% of the institution’s established charges for completed courses.80 Individuals may receive an accelerated payment of the basic educational assistance for education leading to employment in a high technology occupation in a high technology industry. If the costs of the program of education are more than double the monthly assistance allowance to which the individual would have been entitled, the individual may receive the lesser of 60% of the program’s costs for the term or the individual’s remaining dollars of entitlement. The individual’s entitlement period is reduced at a rate in the proportion that the payment is to the monthly assistance allowance to which the individual would have been entitled. Individuals may receive up to $2,000 for each licensing or certification test taken, and individuals may receive the actual fee for each admissions or course credit test taken.81 Individuals are also eligible for payments of up to $100 monthly (for a maximum of $1,200 total) for tutorial assistance. The individual must be enrolled at least half-time, and the educational institution must certify as to the necessity and customary nature of the cost. The first $600 does not reduce the entitlement period; however, the subsequent $600 reduces the entitlement period by one month for each amount paid, which is equal to the monthly benefit otherwise payable to that individual. There are four ways in which certain individuals are eligible for an increased allowance: • Individuals who were eligible for the Post-Korean Conflict GI Bill receive an increase to the monthly allowance, depending on the type of training, rate of pursuit, and number of dependents, for as many months as the individual has remaining Post-Korean Conflict GI Bill entitlement. For example, effective October 1, 2010, an individual in full-time institutional training with two dependents may receive $1,681 monthly. • Each military branch may provide a College Fund/Kicker at recruitment, which increases the monthly allowance by up to $950 for individuals with critical skills. • The military branches may also provide supplemental educational assistance for additional service to active duty servicemembers after they serve an additional five consecutive years on active duty after completing the initial two- or threeyear eligibility period of active duty service. Reservists may receive the 78 For apprentice or on-the-job training, an individual’s entitlement period is respectively reduced at 0.75, 0.55, or 0.35 months for each month of educational assistance received, depending on the payment. Individuals working/training fewer than 120 hours monthly have their payment and entitlement period usage proportionately reduced. 79 The individual’s entitlement period is reduced at 0.8 months for each month of cooperative educational assistance received. 80 The individual’s entitlement period is reduced one month for each educational assistance payment that equals the monthly assistance allowance to which the individual would have been entitled. Individuals may only receive payment for the minimum number of solo flying hours required by the Federal Aviation Administration for the desired flight rating or certification. 81 For licensing, certification, admissions, or course credit testing, an individual’s entitlement period is reduced one month for each amount paid that is equal to the monthly benefit otherwise payable to such individual. Congressional Research Service 29 Educational Assistance Programs Administered by the Department of Veterans Affairs supplemental educational assistance for additional service after they serve an additional two consecutive years on active duty and four consecutive years in the Selected Reserves, in addition to the initial two-year active duty and four-year Selected Reserves eligibility period. 82 The supplemental educational assistance for additional service is $300 monthly for full-time training (reduced for less than full-time training) and up to an additional $300 (for a total maximum additional amount of $600) monthly for individuals with critical skills. • Servicemembers may also contribute up to an additional $600 while on active duty in $20 monthly increments and receive up to an additional $5 monthly for each $20 contributed over the life of their entitlement period under what is known as the $600 Buy Up Program. In other words, each dollar contributed by an individual is matched by the federal government with an additional $8 in benefits. This benefit could equal up to $5,400 over 36 months for a $600 investment. While MGIB-AD basic monthly benefit amounts are adjusted annually, no annual adjustments are made to the additional allowance amounts. The Tuition Assistance “Top-Up” program was established under the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (P.L. 106-398) to promote retention. Through Tuition Assistance programs, military service branches may pay a certain amount of tuition and expenses for the education and training of active duty personnel. Under Tuition Assistance TopUp, MGIB-AD servicemembers who have served for at least two years on active duty and who are approved for Tuition Assistanc [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/crs%3AR40723. Public record. Not legal advice.