Tuition Assistance for Full-Time Military Service
The granddaddy of military education benefits are the GI bills, whose actual name has varied slightly as different programs have been introduced or phased out over the years. Although there are a lot of wrinkles to the various GI bills, the basics remain the same.
The actual amount that is paid under the GI Bill program, what is required to earn benefits, as well as how long someone has to claim her benefits, varies slightly depending on which version of the GI Bill program the service member is participating in. The two current versions of the program are commonly referred to as the Montgomery GI Bill and the Post-9/11 GI Bill programs; each has slightly different rules, provisions, and benefit amounts.
The Pre-9/11 Montgomery GI Bill
Although GI bills supporting education and other benefits have been around since the end of World War II, the Montgomery GI Bill will be one of the best known to most readers of this book. The Montgomery GI Bill was introduced in 1984 and was advertised heavily on TV throughout many of our childhoods.
Under the Montgomery GI Bill, active-duty personnel can earn the right to reimbursement for college costs, up to a certain annual and lifetime dollar limit. These benefits increase each year, to keep up with the rising cost of college. Further, the Montgomery GI Bill has very broad definitions of where money from the program could be used.
Key components of the Montgomery GI Bill program for 2010 include:
• Basic benefit amount—For the 2009-2010 academic year, the maximum GI Bill monthly tuition reimbursement amount is $1,368. This can be paid out for a maximum of 36 months or a lifetime maximum of $49,248.
• Additional benefit amounts—The pre-9/11 Montgomery GI Bill might offer “kickers” or increased benefit amounts of up to $950 per month for enlistees with certain valuable skills. Additionally, recruits might choose to “invest” up to $600 additional, which is matched on an 8-1 basis by the military. Thus, a $600 buy-up on the part of the soldier results in an additional $4,800 in benefits.
• Housing allowance—Someone receiving a monthly reimbursement check under the pre-9/11 Montgomery GI Bill can choose how to divide the amount between tuition and living costs.
• Length of service required—The amount reimbursed depends on someone’s length of active-duty service (even if not deployed in a war zone). It ranges from 40 percent for service lasting between 90 days and 6 months to 100 percent for 36 months of service.
• Time limit to use benefits—Benefits must be used within 10 years of someone’s discharge from the military.
• Cost—$100 per month for the first 12 months of service will be deducted from the service member’s paycheck. There are no additional contributions after this point.
The Post-9/11 GI Bill
The “new” GI Bill, properly known as the Post-9/11 GI Bill, funds a service member’s college costs using a substantially different formula than the older Montgomery GI Bill. Although the benefits under the new GI Bill can amount to substantially more, in certain cases someone eligible for both might want to opt for the older program.
The decision on which one to use really comes down to the price of the school the service member is attending. The more expensive the school, the more likely that someone who qualifies for both bills would want to choose the newer, Post-9/11 GI Bill. The reason for this is that the new Post-9/11 GI Bill might pay up to 100 percent of tuition and fees. The new GI Bill also includes a substantial housing allowance and book stipend.
Again, for a student attending four years of an inexpensive local college, he can actually put some money in his pocket by opting for the old Montgomery GI Bill. But for someone attending an expensive school, the fact that the new GI Bill might cover 100 percent of the costs can mean substantially more dollars for a service member.
CHEAT SHEET
In addition to the official military education benefits listed in this chapter, many enlistees can receive signing bonuses. With some of these bonuses exceeding $10,000 to $20,000, this can provide a large shot in the arm to any student saving up for college or trying to pay off loans.
Key components of the Post-9/11 GI Bill program for 2010 include:
• Basic benefit amount—For the 2009-2010 academic year, the maximum benefit amount is 100 percent of the cost of tuition, up to a maximum set for the state in which someone is attending college. This benefit ranges from as little as $805 per term for the state of Arkansas to $62,000 per term for Florida students! On top of the tuition reimbursement received, the new GI Bill also provides an annual book stipend (allowance) of $1,000.
• Additional benefit amounts—Like the older Montgomery GI Bill, the Post-9/11 GI Bill might offer “kickers,” or increased benefit amounts, of up to $950 per month for enlistees with certain valuable skills. There are no buy-up provisions, however, that allow a service member to contribute additional funds in return for a higher payout later.
• Housing allowance—All veterans (as opposed to active-duty personnel) also receive a monthly housing allowance of roughly $1,000, with the actual amount varying by ZIP Code. Active-duty personnel, because they are already provided some form of housing or stipend, are not eligible for an additional amount under the Post-9/11 GI Bill.
• Length of service required—The amount reimbursed depends on someone’s length of active-duty service, after September 11, 2001 (even if not deployed in a war zone). It ranges from 40 percent reimbursement for service lasting between 90 days and 6 months to 100 percent for 36 months of service.
• Time limit to use benefits—Benefits must be used within 15 years of someone’s discharge from the military, as opposed to the 10 years under the old Montgomery GI Bill.
• Cost—There is no cost to newly enrolled service members. Those enrolled under the old plan who want to switch to the new GI Bill might be required to pay a prorated amount of the $1,200 they would have previously been charged.
Health Professionals Scholarship Program
Similar to the loan repayment programs discussed later in this chapter, the Health Professionals Scholarship Program (HPSP) will fork over a substantial amount of cash for someone to become a certified health professional. In fact, for many professionals, this program will pay 100 percent of the graduate school tuition up-front (prior to serving in the military), in exchange for one year of service for every year of school paid for. That means that the HPSP program could potentially pay for more than $250,000 in graduate schooling!
To be eligible, a student must have graduated from an accredited undergraduate program, be a U.S. citizen, and be otherwise qualified to serve in the military. The health professions covered include the following:
• Dentist
• Medical doctor
• Nurse
• Optometrist
• Psychologist
• Veterinarian
Other Programs
From time to time, other programs are introduced and phased out among the various branches of service. In fact, the branches themselves are not required to offer the same programs and can even introduce their own specialized programs to attract and retain personnel. Parents or students considering the military as their “nuclear” funding option for college will need to be sure that they continue to check with recruiters from other branches before making a commitment. If a new program has been introduced prior to you or your student actually signing your enlistment papers, you might want to make a switch.
DEFINITION
Branches refer to the various sections of the U.S. Armed Services someone can serve with, namely the Army, Navy, Marines, Air Force, and Coast Guard.
Other programs you might want to consider include:
• Bachelor’s Degree Completion Program (BDCP)—Similar to the HPSP program, which pays for a student to attend graduate school prior to serving, the selective BDCP program pays for future Navy personnel to complete their Bachelor’s degrees prior to actually serving.
• JAG scholarships—For existing military personnel interested in becoming a military lawyer, a limited number of scholarships are available.
• Seminary scholarships—Civilians interested in becoming a military chaplain might be eligible to receive a scholarship to attend a civilian seminary (of any faith background) in return for future service.
• Reserve Officers Training Corps (ROTC)—Students who participate in ROTC at their high schools or colleges might be eligible for a limited number of scholarships in return for later service. In addition to paying up to 100 percent of a student’s tuition, fees, and books, these scholarships can include a monthly living allowance while in school.
WORLD WIDE WISDOM
There are a lot of scholarships out there for children and relatives of someone who has served in the military. Because these scholarships are not actually administered by the military, a simple Web search for “military scholarships” will turn up a wide variety of options.
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