Ten Little Known Facts About the Post 9/11 GI Bill
1. The Post 9/11 GI Bill and “Break Pay”
The original Montgomery GI Bill included “break pay,” the ability to receive pay during “no class” increments 55 days or less. This was designed to give students continual financial support during lapses in their semesters, such as winter intersession/break.
Students that are using the Post 9/11 GI Bill are required to remain in school year-round in order to gain year-round benefits; fortunately, most schools offer summer and winter intersession courses. The number of units you have to enroll for to be considered a full-time student during these intersessions is lower than regular semester.
Read more on “break pay” and the Montgomery GI Bill.
2. College Fund or Reserve Kicker Qualification and the Post 9/11 GI Bill
Students that were promised the College Fund (also “kicker,” or “Reserve Kicker”) will continue to qualify for this under the Post 9/11 GI Bill. If eligible, the student will be paid the kicker monthly as an addition to their housing stipend. Students that are not receiving a housing stipend due to:
- Being an active duty service member;
- Being a veteran training at half time or less; and.or
- Being a distance learner,
will still receive their monthly kicker.
3. The “Buy Up” Program and the Post 9/11 GI Bill
Students that elected to participate in the “Buy Up” program during the Post 9/11 GI Bill will not receive an increased amount ($600 buy-up) paid under chapters 30 or 1607. Furthermore, they will not be refunded this amount under the Post 9/11 GI Bill.
Read more about the “Buy Up” Program.
4. Refund of the Montgomery GI Bill Enrollment Fee with the Post 9/11 GI Bill
Students that were previously enrolled in the Montgomery GI Bill and have elected to switch to the Post 9/11 GI Bill will be refunded the $1200 Montgomery GI Bill enrollment fee. The specific way this works:
All Montgomery GI Bill (chapter 30) contributions, excluding $600 “Buy Up,” will be refunded at a proportional amount [based on the number of months remaining under MGIB at time of Post 9/11 GI Bill (chapter 33) election] of the basic $1200 contribution. This refund will be included in the last monthly patment when chapter 33 entitlement exhausts.
Individuals who do not exhaust entitlement under chapter 33 will not receive a refund.
5. Post 9/11 GI Bill and Tutorial Assistance
Like the Montgomery GI Bill, the Post 9/11 GI Bill offers up to $1200 ($100/month) for tutorial services.
Read more about the tutorial service coverage here.
6. Eligibility for Post 9/11 GI Bill in Lieu of Montgomery GI Bill-Selected Reserver
A specific question presented on the VA website: I have qualifying active duty service in a regular component after September 10, 2001. When I was discharged, I signed a 6-year contract as a member of the Selected Reserve. On August 1, 2009, I will be eligible for the Montgomery GI Bill and the Montgomery GI Bill-Selected Reserver. Can I elect the Post 9/11 GI Bill by giving up MGIB-SR instead of MGIB, even if I was never called-up for active duty from the Selected Reserve after September 10, 2001?
The answer to the question is as follows:
If you are eligible for MGIB and/or MGIB-SR on 8/1/2009, and you meet the eligibility requirements for the Post 9/11 GI Bill, you must trade in either MGIB or MGIB-SR to receive the Post 9/11 GI Bill benefits. You may trade in the MGIB-SR even if you were not called for active duty fro mthe Selected Reserver after 9/10/2001, and have no qualifying active duty associated with your Selected Reserve Service. If you trade in MGIB-SR to become eligible for the Post 9/11 GI Bill, you will retain eligibility to MGIB under the rules established in that program.
You cannot, however, receive benefits for more than one program at any given time, and you cannot receive more than a maximum of 48 months of benefits under any combination of VA benefit programs.
7. ROTC Grads and the Post 9/11 GI Bill
Graduates from a ROTC academy qualify for the Post 9/11 GI Bill. However, the time spent in the ROTC program does not count towards the time served requirements, so prospective students will have to sign obligation of service for benefits.
Read more about ROTC students and the new GI Bill.
8. The Post 9/11 GI Bill and Taxes
Similar to undergraduate student loans, the Post 9/11 GI Bill benefits are not taxable. Any veterans’ benefits paid under any law administered by the Department of Veterans Affairs (VA) should not be reported as income to the Internal Revenue Service (IRS).
9. The National Call to Service Program as a Supplement to the Post 9/11 GI Bill
For prospective college students looking for additional benefits beyond the Post 9/11 GI Bill, the National Call to Service program allows students to qualify for one of the following incentives:
- Cash bonus of $5,000
- Repayment of a qualifying student loan not to exceed $18, 000
- Entitlement to allowance equal to the 3-year monthly chapter 30 rate for 12 months ($1,034 effective Oct 1, 2005)
- Entitlement to allowance equal to fifty percent of the less than 3-year monthly chapter 30 rate for 36 months (Fifty percent of $840 effective Oct. 1, 2005)
In order to be eligible for this supplemental financial aid, the prospective college student must fulfill the following criteria:
- First, after completion of initial entry training, individuals must serve on active duty in a military occupational specialty designated by the Secretary of Defense for a period of 15 months.
- After this, and without a break in service, these individuals must serve either an additional period of active duty as determined by the Secretary of Defense, or a period of 24 months in an active status in the Selected Reserve.
- After completion of this period of service, and also, without a break in service, the remaining period of obligated service specified in the agreement will be served as follows:
- on active duty in the armed forces
- in the Selected Reserve
- in the Individual Ready Reserve
- in Americorps, or another domestic national service program jointly designated by the Secretary of Defense and the head of such a program
Read more about the National Call to Service here.
10. California and the Post 9/11 GI Bill
California does not have costs for tuition. Because of this, they do not offer any kind of tuition support for the Post 9/11 GI Bill. Read more.
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How does one opt for the Post 9/11 Bill as opposed to the Montgomery GI Bill?
Gill–To opt for the Post 9/11 GI Bill, fill out the application at the VA’s website. Once you fill this application out, it is not changeable (you will be with the Post 9/11 GI Bill and unable to go back to the MGIB), so make sure to do research to find out which one is the best for you. Hope this helps!
My husband is still on active duty after 19 years in the Army. He finished his degree without using the GI Bill. As soon as he was allowed to initiate paperwork to transfer the benefits to our 3 children (each receiving 12-months), he started the process. Two of the three are away at college now and neither have recieved any funds as of yet. My husband is not allowed to talk to VA on thier behalf. The process is confusing and difficult, as thus far, the VA has “misplaced” our sons paperwork 3 times (he has submitted it 4 times and has gotten confirmation that it was received each time.) We are nearly desperately broke from paying out of pocket for TWO students to attend college, but our children are not eligible for the $3,000 emergency VA advance–everyone can receive it EXCEPT dependants. We are at a loss as to what to do to advocate for our rights and to help our children get the benefits paid that have been transferred to them and applied for in August! It has come to the point that one of them may not be returning after Christmas break if funds don’t come in soon. Is there any help out there for situations like ours? Who do we talk to if VA will not take our calls? HELP please!
Jennifer,
If you have not tried yet, visit your VA’s regional office. Ask to speak with a manager there. Explain the issue to them; they might be more receptive than if you handle it over the phone. The other option is to contact your local Congressman and explain the issue in hopes that it will receive more attention when brought further up the chain.
I’ve been tracking the financial aid requests on the VA’s website, and it looks like they’re reaching well over a thousand “applications complete” every week–but the problem is, that is extremely marginal in comparison to the amount of applicants left to go. I can’t honestly tell you when your funds will be processed, but know that there are others out there that are struggling just as much as you are; you’re not in a minority. There’s students being evicted from their apartments because of this tragedy.
I read (and posted about) today that the VA has set forth a plan to call every single student that hasn’t received their benefits. I’m not sure if they’ll carry that through or not, but that’s their quick fix for the enormous problem that’s landed in their laps. They’re working on an electronic system to handle these processes for future semesters as well–I personally wish there’d be less staff on that and more on getting the current applications processed!–but this semester, lots of people’s hands are tied due to how they delegated things and were [un]prepared.
And I can tell you from a personal standpoint that the financial aid programs outside of the VA are a mess as well. With the excruciating budget cuts that colleges have received due to the economy, there’s students that are waiting for their student loans to come through from the FAFSA. It’s a government-student financial massacre.
Best of luck and let me know if you have any further questions; sorry I couldn’t be more help!
Hi,
I am currently trying to purchase a home loan. I got out of the military in September of 09 and have been building a business ever since. With the business so new it’s not considered stable income in the mortgage world. Is there any way i can prove that the gi bill living stipend is a source of income, considering thats my only chance?
Jason,
The Post 9/11 GI Bill gives benefits to military students. You’d have to be enrolled in a campus-based school to receive the housing stipend. Hope this helps!
Be sure the school has sent the enrollment certificate and it has the correct info. my son’s school sent it late, and with incorrect info on it causing the VA to deny it. the bad news is, the VA didn’t tell the school, so no one knew until I contacted the VA. The VA and the school refuse to work with the parent because the children are 18 and “adults”. i just called pretending to be my son to both the school and the VA to get the stuff fixed. You need to know you must stay on top of this or the school will sit on the paperwork….. and then it’s is up to you be make sure the VA received it and accepted it….. don’t expect payments to be steady and on time….but hey, it’s better late than never…..
Post 911 transferred to child…will BAH be taxable income for my dependant?
MY school put my GI bill as a grant/scholarship on my 1098T tax form this lowers my education tax credits that i can file for in that tax year. I thought my GI bill was none taxable and this action clearly affects my taxes. My college says they are right in doing this. Are they correct???
Ryan. Your school is not right in doing so. The GI bill is considered a grant, and therefore NOT taxable, it is used for educational benefits. My school specifically did not issue me a 1098T b/c my school was fully paid for by the VA. Your best bet would be to go speak with a tax advisor to be 100% certain. I did this already, but you should probably go and hear it for yourself.
Hope that helps!
By the way… if anyone knows if there is there a way i can prove that the gi bill BAH is a source of income to get qualified for a home loan, please let me know. So far, both the banks I talked to wont accept that as a legitimate source of income, I dont get it?? Its being paid for housing purposes, and its on a month to month basis! Why cant I claim it as income?? O well, hope someone can help!
DOES ANYONE KNOW IF THE POST 9/11 EFFECTS FEDERAL STUDENT LOANS AS FAR AS AWARDS ARE CONCERNED?
Can the Post 911 bill Pay back what you already owe for college?
@ Ryan: I had a guy come in to do his taxes telling me the same thing you did about his financial advisor saying that the GI bill money would still qualify him for education credits. I was dubious about this since I’ve never heard of it but prepared it the way he said since he claimed this is what he was told and what someone else was able to do. I’m fairly doubtful on this as like you said on the 1098T GI bill money is listed under “grants/scholarships”. Aydin B. is wrong and right in a way. He’s right in that the GI bill is a grant and nontaxable, what he’s wrong about and what I now realize that the guy whose taxes I did probably misunderstood is, the whole thing about education credits. Education credits are only eligible to people who pay for their school out of pocket or from student loans which is still going to be out of your pocket. This is why you don’t qualify for the educational tax credit. The money from the grant is not being taxed itself you’re just not getting a tax benefit which is meant for people who pay for their education with their own money.
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How could one use the post 9/11 gi bill housing stipend as proof/source of income towards a home loan application; a lot of companies refuse to recognize this sort as income. Do we need to go back to congress for this one; the thing is said to be supposed to be applied to housing costs, so how come all these companies not recognizing it as a valid form/source of income; is there a specific document that I need to know about to be submited in this situation, what can I do??? Help please!!