Changing to Post-9/11 G.I. Bill? Not so Fast!
Quick background for non-veterans: The Montgomery G.I. Bill is a benefit that subsidizes education costs for veterans. While on active duty service members can elect to pay $1200 one time and in return they receive 36 months of payments towards full-time education after they leave active duty. Thirty-six months is the equivalent of the time required for a 4-year degree based on a 9-month academic year. Yes, it’s the best $1200 investment you could ever make, as the full-time benefit is currently $1321 per month.
Congress recently passed the Post-9/11 G.I. Bill. Veterans that served after 9/11 are eligible. Service members also now receive the benefit automatically and do not have to pay $1200 as before. Veterans that originally had the Montgomery G.I. Bill but are eligible for the Post-9/11 G.I. Bill may elect to change their MGIB (known as Chapter 30) to the Post-9/11 G.I. Bill (known as Chapter 33). This is an irrevocable decision. This is also not financially advisable for all veterans. As a matter of fact, unless you attend school at least 3/4 time and pay all your expenses (no scholarships, tuition reimbursement, etc.) it’s probably not a good idea. This post aims to educate veterans on the basics of the two programs and why they should weigh all factors carefully before electing for the Post-9/11 G.I. Bill. It’s a decision that cannot be changed and might cost them thousands of dollars. Here’s why:
The Chapter 30 MGIB pays you monthly simply based on whether you are enrolled in a qualifying degree program. Enrolled full time? You get $1321 per month. No other factors are involved. Did you get a scholarship and you don’t owe any tuition? Good for you. The VA doesn’t care; you still get your $1321/month. Did you pick an inexpensive school where tuition is relatively cheap? Good for you. The VA doesn’t care; you still get your $1321/month. If you are taking classes at 1/2 time or better then you simply receive a flat rate payment, scaled appropriately for 1/2 and 3/4 time students. However, students taking less than a 1/2 time load just get reimbursed for expenses.
(Note: To the non-veteran this may seem like the veteran is scamming the system, but he is not. The VA is well aware of how the program works. The Chapter 30 MGIB just cares that you are enrolled in a qualifying degree program. That is the requirement to draw the money associated with the benefit. If the veteran meets the requirement, then the VA is unconcerned whether the money exactly meets the veteran’s education expenses or whether it’s going towards pizza and beer.)
The Post-9/11 G.I. Bill is a little more complex. First, it pays your tuition and fees directly to your school, up to a maximum limit determined for each state. Did you pick an expensive college that consumed all of your Chapter 30 MGIB? Good for you, now the VA will pick up more of the tab (up to the limit for your state). Did you get a scholarship and you don’t owe any tuition? The VA thanks you wholeheartedly, because now they don’t have to pay the school for your tuition. See the subtle difference? Next, if you attend more than 1/2 time, then you get a housing allowance. The allowance is calculated as the BAH for an E-5 with dependents in the zip code of your school. Use this site to look it up for your zip code. If you attend at 1/2 time or less then you don’t get the housing allowance–not even a scaled one. Finally, you get a stipend for books equal to $500/semester or $1000/year for full-time. Those three payments comprise the Post-9/11 G.I. Bill: tuition paid to the school, housing allowance paid to you (if you qualify), and book stipend paid to you.
Crunch the numbers and you’ll find that you may want to stick with your Chapter 30 MGIB. The Post-9/11 G.I. Bill is lucrative for full-time students receiving no other type of assistance, and those attending expensive universities that don’t participate in the Yellow Ribbon Program. All other cases should perform a careful comparison before switching. The VA has actually done something really superb and posted several different example comparisons on their web site here. Note their assumptions at the top and plug in the numbers for your own scenario. Don’t include the MGIB $600 buy-up unless you purchased it before leaving active duty. Scale all the payments correctly based on how many hours you are taking and whether your school considers it full-time or less. Payment scales are linked below. Remember, 1/2-time and less means no housing allowance under Chapter 33 while 1/2-time and more begins your entitlement to flat-rate payments under Chapter 30.
Finally, the VA has indicated that veterans eligible for the Chapter 30 MGIB that exhaust all of their benefits under Chapter 30 may then change to the Chapter 33 Post-9/11 G.I. Bill for an additional 12 months of benefits under Chapter 33. I do not fully understand this, but it appears like it might sweeten the deal even more for veterans using Chapter 30. The blurb appears here on the VA website. I suggest talking with a VA representative personally about this plan, as it doesn’t seem to be as well-documented as all other facets of the change.
Here are some more resources to further research your decision:
Full Pamphlet on Chapter 30 MGIB Benefits and Eligibility
Chapter 33 Post-9/11 G.I. Bill Max Tuition for each State
Full Pamphlet on Chapter 33 Post-9/11 G.I. Bill Benefits and Eligibility
Of Talk Radio and Audiobooks
I’m getting pretty bored with talk radio. About the only shows I care to listen to anymore are Dale Jackson, Neal Bortz, and Rush. I like Dale because he’s local. Can’t get that news or commentary anywhere else. I like Neal because he’s a libertarian that actually discusses principle with his callers. He is also the only host I know that will often concede a point to a caller, which shows he’s intellectually honest. Rush is entertaining…period. Yeah, his content can become tired sometimes, but entertainment is entertainment. I completely gave up on Sean Hannity. He wants to tell me the same three things every day:
- President Obama is a socialist.
- Jeremiah Wright is President Obama’s best friend. They eat lunch together twice weekly.
- President Obama is Lucifer, and Nancy Pelosi is Beezelbub.
I see at least a glimmer of truth in some of his points (the last one excluded, of course). However, I know the sun rises in the east…that is true. If my wife starts telling me that ad infinitum every morning while I eat breakfast, then I may want to throw a plate at her, truth notwithstanding. Really, in 2012 will he still be talking about Jeremiah Wright? Sean also doesn’t really debate his callers. Every call (excluding the “you’re a great American” ego-stroking extravaganzas) is a boxing match. He throws the GOP talking points, and his callers throw the liberal talking points. Neither person seriously considers the other’s points, and Sean will probably try to lead the caller into agreeing with Marxism, which was fun the first 20 times I heard it.
Instead of listening to talk radio in my car, I’ve been listening to audiobooks. I’ve found this a mixed experience. I first tried The Structure of Scientific Revolutions by Kuhn. I really liked the book, but I don’t think I absorbed enough of it via audio. I found it difficult to fully comprehend non-fiction without being able to easily re-read some passages. I’m currently listening to Atlas Shrugged by Ayn Rand. I’ve read this once in print, and I loved it. The audiobook has proved just as enthralling. The reader is also very good, which I think makes a big difference. In this case I already know the general story, so the audiobook just reminds me of things I forgot and lets me experience the story again, which is awesome. Overall, I don’t think audiobooks are an acceptable substitute for reading—especially non-fiction. However, for classical fiction they can be very entertaining.
Paul Sanford Wins Senate District 7 Race
I can’t believe it. A candidate I supported all the way from the first primary election has actually made it into office. This is truly a great day for liberty. Mr. Sanford remarked about the victory
“It is refreshing to know that voters still care about the issues affecting them and our state…This is my first campaign for public office and it is evident that people desire fresh ideas and real reform.”
BTW, some news outlet are reporting “controversy” surrounding the election because of emails and fliers circulating with the old gag “…due to expected turnout, Republicans should vote on Tuesday, and Democrats vote on Wednesday.” I can’t believe that is even being taken seriously. But of course, what would our local media do without stories of this caliber to tease their timed comparisons of fast food drive thru service that headline the 10 o’clock news. Sad, really.
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