Uses for the GI Bill

The United States government created the Servicemen's Readjustment Act of 1944, better known as the GI Bill, to help enlisted men and women. The GI Bill gives scholarships and funds to those who are serving or have served in the U.S. Armed Forces to help pay for schooling, whether it be an undergraduate or graduate degree, a special training license or some types of vocational schooling.
  1. History of the GI Bill

    • Before the original GI Bill was passed in 1944, higher education was not open to many people, especially those in the armed forces. At that time most people either went to school or enlisted, but not both. After the initial bill was passed, enlisted men made up almost half of all college and higher education learners. By the time the program ended its first run in the mid 1950s, more than 8 million veterans had gone to college or received some kind of job training.

      The GI Bill has come back many times since it was first enacted. The most recent reincarnation of the bill was passed into law in 2008 and began affecting enlisted men in 2009. The new GI Bill benefits those who were not eligible before because they had four-year Reserve Officer Training Corps, or had received an education in the service. National Guard and reserve members who had at least three months of active service were also included in the 2008 changes. Some other big changes came in 2011, when break pay -- pay between the fall and spring semesters -- was eliminated to help pay for students not otherwise eligibile, like those in the National Guard and students interested in flight school. Another change was the cap of $17,500 that was placed on foreign and private schools.

    Mortgages

    • During the initial round of the GI Bill, lasting from 1944 to 1956, low-interest, no-money down mortgage loans were offered to veterans. According to a "Time" magazine article, the fact that when a soldier came home he was often greeted by his wife and the possibility of a new home helped spark the baby-boom generation, the large increase in babies born right after the second World War. As of 2011, the various forms of the GI Bill are solely for educational purposes and do not allow use for mortgages.

    Montgomery GI Bill

    • Under this version of the GI Bill, listed active duty men and women pay $1,200 and serve a minimum obligation, but are then entitled to monthly educational benefits. People in the reserves are also eligible but they must be actively drilling and have a six-year commitment to the reserves. Benefits can be used for undergraduate and graduate degrees, technical and vocational programs, certificate programs, flight training, on-the-job training and correspondence courses. The Montgomery GI Bill also can be used to pay for certification and licensing tests, as well as certain entrance exams.

    Post 9/11 GI Bill

    • The Post-9/11 Veterans Education Assistance Improvements Act of 2010, which goes into affect in 2011, expands eligibility for members of the National Guard, but does not cover members of the Coast Guard Reserve -- even those who are doing roughly the same tasks as those in the Coast Guard. A $17,500 annual cap on tuition and fees coverage for veterans attending privately-funded and foreign colleges and universities is included in the new bill, along with the removal of break pay, which gave payments to enlisted men and women during school scheduled breaks. Job training, which is included under the Montgomery Bill, is not included in the Post 9/11 GI Bill, although vocational and certification continued education options have been expanded, in addition to undergraduate and graduate degree programs. The Post 9/11 GI Bill also can be used for tutorial assistance and certification and licensing test reimbursement.

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