Rhode Island Board of Governors
For Higher Education
74 West Road
Cranston, Rhode Island 02920
Telephone 401 462-9300
Facsimile 401 462-9314
TDD
401 462-9331
The Post-9/11 Veterans Education Assistance Act of 2008
Background and Historical Information
Summary of New GI Bill The Post‐9/11 Veterans Education Assistance Act of 2008 – also known as the “New GI bill” or the “21st Century GI bill” – was passed by Congress and signed into law by President Bush on June 30, 2008. The bill takes effect on August 1, 2009. Among the major components of the bill are the following: •
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The bill provides educational assistance, a monthly housing allowance and a yearly book stipend to individuals who have served on active duty on or after September 11, 2001. Individuals must have a minimum of 90 days active duty after September 11, 2001 to receive the minimum (40%) benefit. To receive the maximum (100%) benefit, individuals must serve at least 36 months of active duty or at least 30 continuous days of active duty and must be discharged due to a service‐
connected disability. A sliding scale in between the minimum and maximum amount of time served accounts for the percentage of maximum benefit payable to the individual. The maximum benefit individuals can receive includes: ¾ Tuition and fees not to exceed those at the most expensive in‐state public institution of higher education ¾ A monthly housing allowance equal to the basic allowance for housing amount payable to E‐5 with dependents, in the same zip code as the institution to be attended ¾ An annual stipend for books and supplies of up to $1,000 ¾ (In addition, a one‐time payment of $500 may be payable to certain individuals relocating from highly rural areas.) The Board of Governors is an Equal Opportunity/Affirmative Action Employer
Rhode Island Board of Governors
For Higher Education
74 West Road
Cranston, Rhode Island 02920
Telephone 401 462-9300
Facsimile 401 462-9314
TDD
401 462-9331
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‐2‐ Individuals who serve for at least 90 consecutive days are eligible for 15 years from their last period of active duty. Individuals are also eligible for 15 years if they serve for 30 days or more and are released due to a service‐connected disability. If approved by the Department of Defense, a veteran can transfer eligibility for benefits under the new GI bill to his/her spouse and dependent children. The tuition and fee benefit covers study toward an undergraduate or graduate degree, vocational/technical training and foreign training. All training programs must be offered by an institution of higher education. (Note: According to US Department of Veterans Affairs data, 71 percent of veterans use some portion of their GI Bill benefits but only 6 percent exhaust them.1) Historical Information In 1932, more than 20,000 World War I veterans – many of them destitute and/or homeless – marched on the nation’s capital in protest. These individuals had been promised bonuses by the federal government for their military service and were then told that they would likely not see these bonuses for up to 20 years. Their protest camp was eventually razed by the U.S. military on orders from President Herbert Hoover. The original GI bill ‐ called the Servicemen’s Readjustment Act of 1944 or, more popularly, the GI Bill ‐was enacted near the end of World War II, at least in part, to prevent a repeat of this occurrence. The bill was renamed for Mississippi Congressmen Gillespie V. “Sonny” Montgomery in 1984 and is now known as the Montgomery GI bill. According to American Political Science Review, approximately 7.8 million veterans – a little more than half of all those returning from World War II – used the Montgomery GI bill to advance their education.2 1
Kelly Field, “As Congress Prepares to Expand GI Bill, Colleges Reach Out to Veterans,” The Chronicle of Higher Education, June 9, 2008 2
Suzanne Mettler, “Bringing the State Back in to Civil Engagement: Policy Feedback Effects of the G.I. Bill for World War II Veterans,” American Political Science Review, Vol. 96 No. 2, June 2002 The Board of Governors is an Equal Opportunity/Affirmative Action Employer
Rhode Island Board of Governors
For Higher Education
74 West Road
Cranston, Rhode Island 02920
Telephone 401 462-9300
Facsimile 401 462-9314
TDD
401 462-9331
‐3‐ It is widely accepted that the Montgomery GI bill was a major contributor to a post‐
World War II economic boom in America. According to a 1994 article in the Smithsonian, the GI bill produced 450,000 engineers, 240,000 accountants, 238,000 teachers, 91,000 scientists, 67,000 doctors, 22,000 dentists, 17,000 writers and editors, and thousands of other professionals.3 Need for a New GI Bill The full‐time benefit rates for veterans under the Montgomery GI bill for the 2007‐2008 academic year were $1,101/month for active duty (Chapter 30) beneficiaries who completed an enlistment of 36 months or more. That amounted to $9,909 for a full nine‐month academic year. Meanwhile, according to the College Board, the average cost of tuition, fees, room and board at a public four‐year college for that same academic year was $13,589.4 The same figure for a private four‐year college was $32,307. By comparison, the original post‐World War II Montgomery GI Bill covered full tuition, fees and book costs in addition to a housing stipend at most public and private colleges for a period of up to 48 months depending on the veteran’s length of service. To help bridge this gap, the new GI bill was introduced by a bi‐partisan group of US Senators who all served in the military. The group included Sen. Jim Webb (D‐VA), Sen. Frank Lautenberg (D‐NJ), Sen. Chuck Hagel (R‐NE) and Sen. John Warner (R‐VA). As noted earlier, the bill passed Congress and was signed into law on June 30, 2008. 3
Edwin Keister, Jr., “The G.I. Bill May be the Best Deal Ever Made by Uncle Sam,” Smithsonian, v25, November 1994 4
The College Board, Trends in College Pricing 2007, p. 6, October 2007 The Board of Governors is an Equal Opportunity/Affirmative Action Employer
Rhode Island Board of Governors
For Higher Education
74 West Road
Cranston, Rhode Island 02920
Telephone 401 462-9300
Facsimile 401 462-9314
TDD
401 462-9331
‐4‐ While the economic impact of the new GI bill cannot be accurately figured until enough veteran students utilizing it have graduated and entered the workforce, a Department of Veterans Affairs survey shows that 18 percent of recently returned veterans are unemployed and, of those who are employed, 25 percent earn less than $21,840 per year.5 Since the average college graduate earned $50,900 in 2005 and the average high school graduate earned $31,500,6 efforts to increase veterans’ attendance and graduation from college has real economic potential not only for the individual veteran and his/her family but for society as a whole. (Additional information for this backgrounder was accessed from “When Johnny (or Janelle) Comes Marching Home,” National, State and Institutional Efforts in Support of Veterans’ Education, by Lesley McBain, Perspectives, American Association of State Colleges and Universities, Summer 2008.) 5
Stephen Barr, “Veterans Return to Bleak Job Market,” The Washington Post, April 1, 2008. Sandy Baum and Jennifer Ma, “Education Pay 2007: the Benefits of Higher Education for Individuals and Society,” The College Board, September 12, 2007. 6
The Board of Governors is an Equal Opportunity/Affirmative Action Employer
Rhode Island Board of Governors
For Higher Education
74 West Road
Cranston, Rhode Island 02920
Telephone 401 462-9300
Facsimile 401 462-9314
TDD
401 462-9331
The Board of Governors is an Equal Opportunity/Affirmative Action Employer