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Gauging the New GI Bill

June 20, 2008

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With Congress and the White House in agreement on a supplemental war spending package that would dramatically boost GI Bill benefits, thoughts are turning to the potential impact of the changes on colleges and student veterans. Many in higher education are excited about the probable passage of Virginia Sen. Jim Webb’s “21st Century GI Bill" -- but so too are many curious about how billions in new benefit dollars could affect the calculus of veterans’ educational choices.

“This goes a long way toward making today’s GI Bill a kind of equalizer that the original GI Bill was,” said Suzanne Mettler, a professor of government at Cornell University and author of Soldiers to Citizens: The G.I. Bill and the Making of the Greatest Generation (Oxford Press, 2005). The pending legislation, she said, "could have a similar kind of democratizing potential.”

The compromise war spending bill -- which also includes $400 million in research funding (see related article) -- increases the GI Bill benefit to cover up to the cost of in-state tuition at the most expensive public college in a veteran’s state, a monthly housing stipend based on a college’s location, and an extra $1,000 annually for books. It also includes the “Yellow Ribbon” program, in which the government would provide matching funding to private colleges that cover part of the difference in tuition over and above costs at public universities.

An earlier version of the legislation, which is now estimated to cost $62 billion over 10 years, passed the House and Senate earlier this year under a Bush veto threat (the administration had raised questions, for instance, on whether increasing veterans' benefits would discourage service members from re-enlisting). President Bush has since indicated that he would not veto a compromise package hammered out on Wednesday -- which includes provisions on transferring educational benefits to spouses and children, a presidential priority -- clearing the way for the bill's seemingly imminent passage. The House approved the compromise bill late Thursday, by an overwhelming margin of 416-12; a Senate vote is expected next week.

Meanwhile, the current Montgomery GI Bill benefits are worth $1,101 monthly. Some say the benefits, at their current levels, are too low to offer veterans -- who disproportionately come from low socioeconomic backgrounds -- real choices about which colleges, if any, to attend.

“In the middle of the 20th century from the creation of the GI Bill up to the creation of Pell Grants, we were finding ways to expand access to higher education and more and more people from across the socioeconomic spectrum were going to college. Since the 1970s, we’ve been at a plateau of four-year degree attainment for people from below median income families,” said Cornell’s Mettler.

“I think that expanding the GI bill, making it more generous, can be one component of really expanding access to higher education for people who come from disadvantaged backgrounds.”

Experts offered different opinions on whether the greatly enhanced educational benefits would mean that veterans would make different choices about college. Right now, many veterans are attending community college -- about 40 percent of GI Bill recipients are pursuing two-year degrees, according to the U.S. Department of Veterans Affairs. The for-profit University of Phoenix is the biggest destination institution for veterans, followed by American InterContinental University (also a for-profit). Other big receivers of veterans include American Public University, the University of Maryland, Central Texas College, Kaplan and Strayer Universities, and El Paso and Florida Community Colleges.

“I know there are some community colleges that have expressed concern that if the veteran is going to get tuition and fees covered regardless of where they’re going to go to school, those veterans are going to want to go to the big-name schools. In my experience, I’m not sure that’s necessarily true. I think convenience is still going to be paramount,” said Keith Wilson, director of the Education Service at the Department of Veterans Affairs. “If the local school can provide the education that these veterans want, they will still go to that local school. But it’s an unknown."

“All things being equal I think we’re not going to see major shifts in where veterans are going to school. But if I’m proved wrong, I’ll take that as what it is. It may happen," he continued.

“There are just so many variables. One of the major variables that a lot of folks aren’t totally accounting for right now is the fact that this legislation is probably going to include the ability to transfer GI Bill benefits to a dependent. If that’s the case, then we’re bringing in a group of individuals that we’re going to be paying benefits to that we really don’t have any experience with. That’s going to shift how the benefit is going to be used, but it won’t be the veterans using them," Wilson said.

“I have a feeling that University of Phoenix will always be the number one recipient of GI Bill benefits, in part because they make themselves so incredibly accessible to veterans throughout this country,” said Patrick Campbell, legislative director for the Iraq and Afghanistan Veterans of America. But, Campbell said of the expanded GI Bill under consideration, “This benefit will let people choose if University of Phoenix is right for them, or if they want to go to Harvard.”

“Right now we’ve set up an incentive that says we’re only going to give you a certain amount of money no matter where you go; therefore, economize appropriately. ‘Where can I get a degree and not have to work two jobs or live on mom’s couch?’ "

“The way that this [new] benefit is structured is to send people to school and make that their full-time job,” Campbell said. He pointed out, for instance, that while veterans who complete their education entirely online or attend college less than half-time would see about a 20 percent boost in educational benefits under the Webb bill, they wouldn’t get the housing stipend.

“What we would like to see is people enrolling in person in colleges,” explained Kimberly Hunter, a spokeswoman for Senator Webb’s office. “If you are going full time for four academic years to a university then we would give you a living stipend to supplement the money that you would not be making because you’d be going full time to school.”

It’s tempting to make parallels between the current GI Bill and the original post-World War II one, which had the transformative effect of leveling the playing field, opening the elite bastions of higher education to a much more diverse populace, and making Columbia University about as accessible as a community college. But some experts warned against pushing the comparison between now and then too far.

“I don’t see it as transformative,” Milton Greenberg, a professor emeritus of government and former interim president of American University, said of the new proposed GI Bill. Greenberg, who authored The GI Bill: The Law That Changed America (Lickle Publishing, 1997), emphasized that the social context for the original legislation was radically different from the current context, in terms of the number of potential students affected, the demographic characteristics of the veterans, and the higher education landscape. “It’s not transformative,” Greenberg said of Webb's bill, “but it definitely is going to be a boost because the more people that get college degrees, the better off we all are.”

“I think that nobody should look for the same dramatic impact that the World War II GI bill had because that really did open up higher education, which previously had been pretty much a prerogative of the middle class and indeed the intellectual elite of the country because a college degree was not required for many professions,” said James Wright, Dartmouth College’s president and an active advocate for veterans in higher education.

However, Wright said that enhancing educational benefits could be useful in helping veterans overcome the sticker shock associated with high tuition prices -- which discourage many from applying to elite universities, even if ample financial aid might be available.

“Those who are coming out of the military should be able to think about going to the best schools in the country," Wright said. "They should be thinking about going to the colleges that most meet their needs. We should still expect a fair number of them to go to local two-year colleges and those will be good places for them at least to reintroduce themselves to higher education.”

Yet, Wright continued, "the United States at its best is a country of dreams."

“I think what this does is expand a little bit more the opportunity for dreaming.”

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Comments on Gauging the New GI Bill

  • Gauging the New GI Bill
  • Posted by JF in Texas on June 20, 2008 at 1:50pm EDT
  • The spending required for this bill would be huge. I work in a financial aid office and $1,000 a month over 9 months in a state school goes a long way. The average cost in a major 4 year state-university in Texas, including books and living expenses, is under $30,000 for an in-state student. Included in the cost is approximately $7,000 in tuition and fees based on an enrollment of 30 credit hours. In providing these benefits, I see no mention of how long the individual must serve to be eligible for the added benefits--housing stipend and payment to the most expensive schools in the country, or whether or not the individual must have served overseas while enlisted. What is wrong with going to a college that will provide you with a good education without costing a fortune. If you look at the most recent studies, a more expensive school does not mean a better education, nor does it mean you find a job. Don't squander our hard earned dollars that go to taxes to help pay for programs that don't make sense. Where is the common sense in applying sound judgment to something that is basically a good idea. Let's get back to the basics in our Country and take a good hard look at where our money is being spent. As a Country we are growing weaker because of poor decision making from our political leaders. We need for you to get back to reality! Hello, where are you?

  • Soldiers and Sailors WILL Make Different Choices
  • Posted by Mark Montgomery on June 21, 2008 at 6:50am EDT
  • Having served as a consultant to an Army Captain who wanted to get the best graduate degree he possibly could, I know that there will be a substantial number of military personnel who will take advantage of these new benefits and who will opt to use the funds to maximize their educational potential.

    Sure, some will choose what is convenient, and that is a fine choice for many. But for those who want to "be all they can be," I'm proud to send my tax dollars to support them.

    For me, this gives new meaning to "support our troops."

  • Benefits
  • Posted by CP on June 23, 2008 at 9:45am EDT
  • What JF fails to realize is that there is no greater sacrifice made than by those who willingly say "I will lay down my life for you and your family" that's what every soldier does. If a veteran wants to go to school to better himself, then the government should pay for it. If he needs that benefit to help put food on his/her table to feed their children while their doing homework, then it should be done. I agree that our leaders within this country has really screwed things up, but the veteran should and needs to be taken care of and given every opportunity to make it after service, no matter what the cost. Under the current GIBILL, I've seen how much they suffer going to a state school that is affordable. I've even bought food for a few of them. It's time for them to have no worries while attending school, it's time for the most prized citizen of this country to finally be taken care of. It's time for this country to live up to the words spoken by Lincoln; ..."to provide for those who have borne the battle...".

  • Posted by CJL on June 24, 2008 at 7:10pm EDT
  • dear jf, you are more than welcome to enlist and go to the Mideast many times. This is not about the money, this is what Lincoln promised our troops.
    Our troops are the best. Get out of your small little financial aid boxed thinking and see the larger picture. Take at least three or four years out of your life and be prepared to stay three or four more. See how you feel in four or more years and if you still have the same narrow-sighted opinion.

  • Willing to risk death
  • Posted by Paul , ex MM2(SS) Nuke at USC on June 25, 2008 at 2:10pm EDT
  • When I served the VEAP was the meager thanks we got. Was there a war? NO but I no longer can use my right leg due to a service related accident, and my brother a Naval aviator was killed. I think the new GI Bill is awesome and it should be extended to all Veterans of all periods.
    In my day when I returned for a BS degree, I had to take out loans and even then I qualified for the Pell Grants I was so destitute. I stayed in the reserves for extra money and worked in a bank part-time in the day and worked in a liquor store party shop at night to earn more money. Thats was taking 18 hours each term because to me it equated to a free course.
    I'm ABD for my Ph.D. now.
    Education helps make citizens better and informed.
    If a veterans is willing to serve and take the risks of death at any time then that should be thanked with something like the new GI Bill. We all know that the old GI Bill from WWII returned over 6 fold its cost to the Treasury in payroll taxes.

  • 21st century GI bill
  • Posted by Kevin K. Dean , Academic assessment at Empire State College on June 25, 2008 at 5:40pm EDT
  • I agree that this new 21st century GI bill won’t be as transformative as the original G.I. bill was to the landscape of higher education in America but it offers hope to millions of veterans who raised there right hands to support and defend the country.
    Currently the rate of use for the GI bill is dismally low considering the advantages the program offers. Many people forget that the veteran is at a wage disadvantage because they were out of the workforce for extended period time as compared to their peers so even with a college education closing the earnings gap is going to be hard.
    There should be a caveat that the benefits come with mandatory one on one educational counseling for veterans so they ensure that they earn the right degree at the right time to maximize their earnings potential.

  • GI Benefits could go a long way to help a lot of folks
  • Posted by GI Spouse on June 26, 2008 at 5:35pm EDT
  • My husband spent 6 years in the US Navy, 4 of which were overseas in Iraq, Afganistan and guarding oil rigs off the coast of the middle east. He put is life on the line every day, and was ready to get out. The $1200 per month is alright for his tuition, and one bill per month, so I work 2 jobs to cover the rest. This new GI bill could take alittle of the stress away. One resource I found that is great is
    http://www.gibill2008.org/benefits.html
    This shows how much you'd get based on the state you're going to school at. Don't worry, Texas is in the higher range of cost for public education.

  • Posted by ad on June 28, 2008 at 7:00am EDT
  • Speaking as a recent veteran I encourage the ongoing support of Sen. Webb's bill. The low numbers of veterans using the current GI bill proves its insufficiency. Retention isn't the issue, if the current reenlistment bonuses aren't enough to keep soldiers/sailors in, nothing will. My current MGIB payments only cover 50% of tuition. To be honest I could have received close to the same amount through grants and scholarships if I never put my life on the line or sacrificed six years of my time. Thank you to those who have supported this. Naysayers, please do a little more research-the current MBIB doesn't cut it.

  • "JF in Texas" - Comment about New GI Bill
  • Posted by JS also in Texas , Retired Auditor - US Dept of Education on June 29, 2008 at 5:50am EDT
  • I'm a little uncertain as to what "JF in Texas" means by the comment "...most expensive schools in the country."

    The New GI Bill will not cover the tuitions and fees to such non profit institutions as SMU in Dallas, Rice University in Houston, or St. Mary's University in San Antonio. The last time I checked, the tuitions and fees at each of these non profit institutions was in the range of &20,000 to $30,000 per year. The Bill definitly will not cover the tuitions and fees at most of the "for profit" instutions around the country. For example, an 18 month course at the Texas Culinary Academy in Austin, TX may cost up to $50,000 or higher.

    If JF would read the New GI Bill, he/she would note that the words "up to" are used frequently. What each service person would get monthly would vary by state. A person attending school in California or New York would be eligible for more benefits that that a person attending school in Texas or Oklahoma. (Tuitions for state school are higher in CA and NY than in TX or OK.)

    The housing stipend will also be governed by the location of the school. The Bill will pay "up to" $1000 a month for a full time student. A one room efficiency in San Diego, CA can cost up to $1200 a month. The same one room effiniency in San Antonio, TX may cost about $600. The housing stipend will be taylored to the location.

  • Don't service members deserve a chance?
  • Posted by LG from the service , Who is this guy? on June 29, 2008 at 7:55pm EDT
  • Jf in Texas, I think you should do a little more research. You can start by actually talking to your servicemembers. I am currently in the service. I have been to the desert and leadership schools all through out my military career. It's a shame that I can't even remember how many times I've had to put my education on hold for OIF or OEF to serve and defend people who take advantage of their freedom everyday. I joined the military and the only skill I've learned is how to maintain fighter jets. When I get out, what exaclty am I supposed to do to support myself or my family. I don't know if you've notice this or not, JF, but it's not like there are tons of fighter jets parked at the airport and in case you haven't realized this either, there's not exactly ads in the the classifieds searching for marksmanship or convoy duty, either. The skills I have learned and just began to master, cater to the military, not towards civilian life. When I get out, I will have to relearn a new trade. Don't my fellow servicemembers and I deserve a fair chance at a education? Most of us joined specifically for education benefits, after 9/11, to come to the realization that the military doesn't cover as much money as they promised. Not only that, but you still end up with education debts. I'm offended by JFs comments. His biased opinions and lack of research prove that more americans need to invest in furthering their education and becoming more productive in their country's future because if we don't, we'll all be making decisions based off of our lack of information, biased opinions and lack of compassion for the ones who give up precious education benefits, freedom, and years out of their lives to fight for the freedom of this country. Please do not let my ten years of service be those served in vain? Please allow myself and others a chance at a better education, too.

  • va benefits
  • Posted by dee on June 30, 2008 at 10:50am EDT
  • I think this new program would be great. My husband has been going to school full time for the past year and 1/2, and we currently owe too much for him to attend next semester......we are paying off his tuition monthly...He is full time military, and we have a baby at home, so I do not work, he made too much to qualify for finacial aid, but we do not have extra money to pay for books,and a big chunk of his tuition,the house, car payments and everyday expenses. The money he got from the the GI bill helped a lot, just not enough. I owe so much in student loans the was not the road we wanted to go down. So my husband will have to wait to finish school until his old bill is paid off, and now they say they have to increase tuition to match the rising cost of their expenses...So this would be great for someone who does want to make a difference in his life and the life of his family, and serve his country at the same time...

  • what about the current GI Bill
  • Posted by JHolton , Sgt. at Marines on June 30, 2008 at 6:50pm EDT
  • I was hoping someone could tell me if this will be awarded to those who just got out of the military and are using the GI bill? I can testify that this will be a great help for those who are returning to society. With the current economy it is very difficult for veterans to afford to go to school. In order to receive the benefits you must be a full time student. But the benefits do not pay the bills. I did three tours In Iraq and Afganistan and after getting out in 2006, I am having to work full time and go to school full time, and still struggling to afford just a place to live. I have even considered going back in just because I cannot afford to be a civilian, and I feel that is not fare. I really hope this is for all of us.

  • Posted by CK on July 11, 2008 at 12:05pm EDT
  • JHolton, I heard on the news that the new GI Bill will be available to everyone the joined after 9/11. I hope this includes you! Thank you so much for your service to our country and protecting my freedom.

  • Posted by Aaron on October 21, 2009 at 12:30pm EDT
  • JF considering you work in a financial aid office at school in Texas it is very unlikely you make over $15 an hour and it is even more dubious that you actually pay any taxes, so maybe we should be bitching about that Federal refund check you get every year. Well I suppose you might pay property tax however the community college in my area has the highest tax rate of any other entity and the majority of that money is going to employ people like you who generally prove themselves to be quite worthless. After thinking about I think JF is right we shouldn't be expanding spending on education we should automating and outsourcing jobs like the one he holds to make college more affordable for everyone to include veterans.