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How Will the Post-9/11 GI Bill Affect My Family?
Who, How and How Much?

By , About.com Guide

Photo by Brian Bahr/Getty Images
The eagerly anticipated Post-9/11 GI Bill goes into effect on Aug. 1, 2009, and will make it possible for returning veterans, who have served in the U.S. military since Sept. 11, 2001, to attend college nearly free of charge. There are some major kinks still to work out (see below), but for the present, this is how the new 21st century GI Bill works.

Who is Covered?

The U.S. Department of Veteran Affairs is currently accepting and processing online applications and, of course, the final word on eligibility comes from them. But in a nutshell: U.S. military veterans who have served 36 months or more since Sept. 11, 2001, are eligible for 100% of the new GI Bill's benefits. So are soldiers who served 30 or more continuous days before being wounded or disabled in a military capacity and discharged. Limited coverage - 40-90% of the public university benefit - is available to veterans who have served anywhere from 90 days to just shy of 36 months. And soldiers who have served at least six years in the U.S. military, and who commit to another four, may transfer their benefits to a child or spouse.

In June 2009, Congress added funds to also cover the children of servicemen and women who have died in the line of duty since Sept. 11, 2001.

What's Covered?

The bill boosts federal spending to cover in-state tuition at even the most expensive public university in a veteran’s home state. In addition, it offers a housing stipend and $1,000 a year for books. Veterans who are eligible for full benefits, but who would prefer a private college, may transfer their tuition payments. By June 2009, some 700 private universities, including nearly all the Ivy League colleges, had signed on to a federal “Yellow Ribbon” matching program to cover some or all of the balance. The list of participating schools may expand further as the economy recovers.

The Fine Print

The bill's tuition coverage, which is based on the most expensive public institution in each state, varies dramatically depending on home state. Theoretically, Arizona residents may collect a measly $127 in tuition per term, while Texans are eligible for $12,130 and Coloradans a startling $43,035. The apparent disparity is due to the new GI Bill's equation including pharmacy schools, aviation programs and other pricey public university programs. Those numbers are also based on 2008-09 state data. New eligibility amounts for 2009-10 should be posted on Aug. 1. For more detailed information, check out this "New GI Bill" article by About.com's Guide to the U.S. Military.

How It's Actually Working

Some 275,000 post-9/11 veterans rushed to apply during the summer of 2009 - 213,000 were eligible for benefits and 82,000 immediately enrolled in college. But by October 2009, the federal government had only paid benefits for around 50,000 of them, and the rest were frantically phoning home from college to find out what had happened to their tuition. Officials said the slowdown was caused by the volume of applications, and outdated technology - involving four separate, unintegrated computer systems - which meant each application was taking 90 minutes to process.
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