Veterans can get a lot of help paying for college with the GI Bill. But does it cover all of your college costs? That depends on your situation.
How The GI Bill Works
The GI Bill helps veterans and their families pay for education expenses like college tuition. There are a few different GI Bill programs, but the most popular is the Post-9/11 GI Bill.
To qualify for the Post-9/11 GI Bill you need to have served at least 90 days of active duty service after September 10, 2001. You must also have received an honorable discharge.
The Post-9/11 GI Bill gives you money to pay for school in a few different ways
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It covers tuition and fees up to the maximum in-state tuition at public schools. For private schools, it covers up to $26,381 per year.
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You get a monthly housing allowance based on where you live and attend school
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Each year you can get up to $1,000 for books and supplies.
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If you need to move closer to school, you might be able to get a one-time payment of $500 to help pay for your move.
The exact benefits you can receive depend on how long you served on active duty. To get 100% of the maximum benefits, you need at least 36 months of qualifying active duty service. With less service, you earn a percentage of the maximum.
For example, with 90 days to 6 months of service you get 40% of the maximum benefit. 1-2 years of service earns 60% of the maximum benefits.
Does The GI Bill Cover All College Costs?
The GI Bill can cover a significant portion, if not all, of your college expenses. But there are cases when it won’t pay the full cost:
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The tuition cap at private schools – For private colleges, the Post-9/11 GI Bill caps the tuition assistance at $26,381 per year. So if your tuition is higher, you’ll need to cover the rest.
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Housing allowance differences – The housing stipend is an average amount based on where you live, but likely won’t equal your actual housing costs. You may need to pay extra rent out-of-pocket.
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Costs exceeding 36 months – You are limited to 36 months of GI Bill benefits. If your degree takes longer for any reason, you’ll be responsible for extra terms.
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Other fees – The GI Bill allowance for books and supplies $1,000 per year. But your actual costs may exceed that. Other fees like parking, technology fees, health fees, etc. also aren’t covered.
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No cost-of-living increase – The GI Bill tuition and housing caps don’t increase yearly with inflation. But colleges often raise costs a bit each year.
So while the GI Bill provides robust education benefits, there are still potential out-of-pocket costs to be aware of.
Strategies To Maximize Your GI Bill Benefits
Here are some tips to stretch your GI Bill benefits as far as possible:
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Take lots of credits each term – The GI Bill lasts 36 academic months, so take advantage by taking extra courses when possible. This allows you to squeeze in more classes covered by the GI Bill before time runs out.
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Enroll in summer classes – Summer courses count toward your overall 36 months just like fall and spring terms. Take summer classes to get closer to graduating before hitting the 36 month cap.
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Start at community college – Completing an Associates Degree at community college maximizes GI Bill benefits. Credits are cheaper at 2-year colleges. This leaves more of your 36 months for when you transfer to a 4-year university.
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Compare housing costs – Housing rates are based on the school’s zip code. Research options and pick the most affordable place to live to potentially pocket extra of your housing stipend.
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Rent used books – Buying used books allows you to stretch your book stipend further. Also sell back your books at the end of each term to recoup part of the cost for the next term.
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Apply early for financial aid – Make sure to complete the FAFSA by the earliest deadline to qualify for grants, work-study, and subsidized loans that don’t accrue interest.
Paying For College After GI Bill Benefits End
Once your 36 months of GI Bill benefits expire, you’ll need a plan to pay any remaining college expenses. Here are options to fill the gap:
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Apply for scholarships – Seek out and apply for every private scholarship that fits your situation. Military related scholarships are a great place to start.
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Use federal student loans – Federal student loans like Direct Subsidized and Unsubsidized Loans can provide low-interest financing. Make sure to exhaust this option before considering pricier private loans.
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Earn tuition assistance – Some branches of the military offer Tuition Assistance programs that let active duty and reserve members take college classes for free. Check if you qualify.
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Attend school part-time – Switching to part-time enrollment can help spread costs over additional terms. Just know the housing stipend only applies when attending more than half-time.
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Find an employer with education benefits – Some companies offer tuition reimbursement to employees going to school. See if a civilian job could offer this perk.
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Apply for state financial aid – Check with your state VA office for education grants and scholarships specifically for local veterans.
Final Thoughts
The GI Bill can be extremely helpful in reducing the cost of higher education. However, it likely won’t cover 100% of expenses from a 4-year private college or in certain situations. Have a plan in place to cover any gaps so you can graduate on time and without crushing student loan debt.