The GI Bill is one of the most generous education benefits programs in the country, providing financial support for veterans and their families to attend college or career training programs. A common question that comes up is whether the GI Bill can be used to pay for private colleges and universities. The short answer is yes, the GI Bill does cover tuition and fees at private schools, up to certain limits. However, there are some important factors to consider when using GI Bill benefits at a private institution.
How the GI Bill Works at Private Colleges
The GI Bill program that most veterans use today is called the Post-9/11 GI Bill. This provides comprehensive education benefits including:
- Tuition and fee payment
- Monthly housing allowance
- Stipend for textbooks and supplies
The Post-9/11 GI Bill pays up to the full cost of in-state tuition and fees at public schools. However, because tuition at private colleges is often higher, the GI Bill benefit is capped at a national maximum per academic year.
For the 2022-2023 school year, the maximum GI Bill benefit for private schools is $27,02005 This means if your tuition and fees cost more than that amount, you’ll be responsible for the difference out-of-pocket.
The housing and book stipend benefits are calculated the same whether you attend a public or private institution
Pros and Cons of Using the GI Bill at Private Colleges
There are advantages and disadvantages to using your GI Bill at a private university.
Pros:
- Access to private schools with smaller class sizes, strong academic programs, and generous aid packages
- Yellow Ribbon matching funds available at participating schools
- Often better suited for nontraditional, older, or transfer students
Cons:
- Higher out-of-pocket costs beyond the GI Bill benefit cap
- Fewer schools to choose from compared to public options
- No in-state tuition savings like at public universities
The GI Bill can make private colleges more affordable, but it likely won’t cover the full cost of attendance. You’ll want to weigh the pros and cons carefully when deciding where to use your benefits.
The Yellow Ribbon Program
The Yellow Ribbon Program can help reduce out-of-pocket costs at participating private schools. Here’s how it works:
- The school enters an agreement with VA to fund a portion of the tuition/fees that exceed the Post-9/11 benefit cap
- VA matches that amount, effectively reducing your balance owed
- Not all private schools participate in Yellow Ribbon – check if yours does!
For example, if your tuition is $35,000:
- GI Bill would cover: $27,020.05
- Yellow Ribbon school contributes: $3,989.95
- VA contributes matching amount: $3,989.95
This results in $0 out-of-pocket for the student!
The number of students a Yellow Ribbon school can give matching funds to each year is limited, so apply early.
Using Other GI Bill Programs
While most students use the Post-9/11 GI Bill today, there are some other GI Bill programs that you could utilize at a private college:
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Montgomery GI Bill – Active Duty (MGIB-AD): Gives a monthly stipend payment directly to the student. Rate for full-time is $2,150/mo in 2022-2023.
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Montgomery GI Selected Reserve (MGIB-SR): For reservists with a 6-year contract, pays up to $408/mo directly to the student.
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Survivors’ and Dependents’ Assistance (DEA): Provides 45 months of education benefits for eligible spouses/children of disabled or deceased veterans. Pays a monthly stipend.
These programs do not directly pay tuition/fees, but provide funds to help cover costs. Many students opt to use loans or aid to pay for college and use the monthly stipend as a supplemental income source.
Tips for Maximizing Your Benefits
If you plan to use the GI Bill at a private college, here are some tips:
- Apply for financial aid and scholarships – free money that can lower your reliance on loans/GI Bill funds
- Look for private schools with high VA participation and Yellow Ribbon agreements
- Consider starting at a community college – GI Bill benefits cover these 100% then transfer to minimize private college costs
- Compare total out-of-pocket costs at private vs. public options
- Understand GI Bill usage rules – you only get 36 months of benefits
The GI Bill provides an amazing opportunity, but also requires planning. By researching schools, costs, aid options, and GI Bill details, you can make the most of your benefits at a private college. With smart planning, a private education can be very affordable with the GI Bill.
Using The GI Bill At Overseas Public And Private Schools
It is possible to use your GI Bill benefits to attend schools (including private schools) overseas, but there are complications. One of the main issues is that overseas schools are not versed in VA processes, requirements, and submission procedures. You will need to begin your application process far earlier than most in order to make sure your school is able to meet the VA requirements for application, processing, payment, class attendance, etc.
The school you choose overseas must be approved by the Department of Veterans Affairs before you apply, but that is only the first step–your chosen school must be able (or learn how) to follow VA requirements for receiving GI Bill funds.
Assuming your selected institution of higher learning meets the criteria, what does it take to use your GI Bill overseas? ALL of the following must apply at application time:
- The applicant is eligible for VA education benefits
- The VA has approved your program
- Your program is located at “an institution of higher learning where you’ll earn a standard associate’s degree or higher” or a degree “of equal value”
- The VA approves of programs overseas issuing degrees similar to “degrees granted by accredited U.S. colleges and universities”
- Overseas private schools must provide degrees “of equal value to those granted by public colleges and universities in the same country” and entrance requirements must be comparable
Remember that there is a big difference between attending classes at a school overseas that is actually administered by a stateside institution and applying for a college which is 100% overseas-based and has no administration, oversight, or other operations in the USA.
The Montgomery GI Bill
This older version of the GI Bill allows attendance at VA-approved institutions offering:
- Associate, Bachelor, and advanced degree programs
- Vocational Training
- Technical Training
- Non-college degree programs
- On-the-job learning
- Apprenticeship Training
- Licensing & Certification
- Flight Training
- Work-study programs
The school you choose to attend may be public or private, but you will need to check with the VA or use the VA GI Bill Comparison Tool to determine if that school is on the VA list of approved programs.
Post 9/11 GI Bill | The Do’s and Don’ts of 2023
What if GI Bill benefits won’t cover my school costs?
If GI Bill benefits and grants and scholarships won’t cover all of your school costs, consider taking out a student loan. You’ll have a choice between federal student loans, funded by the U.S. Department of Education, or private student loans, which you can get from banks or online lenders.
How much does the GI Bill pay a student?
For **private institutions**, it pays up to **$27,120.05** per academic year (increasing to **$28,937.09** on August 1, 2024).If you’re attending a **foreign institution** outside the U.S., the GI Bill
Can I use my GI Bill if I’m not enrolled in school?
Yes. Many people falsely believe that once you apply for benefits, you have to remain enrolled in school to get the full benefit. You can use your GI Bill for any period of time. Take time off and re-apply to use it again at a later date. You can also use it as you progress toward your education goal.
How much does GI Bill increase a year?
Effective Aug. 1, those using the Post-9/11 GI Bill at a private or foreign school will see their maximum yearly GI Bill rate increase from $27,120.05 to $28,937.09. Those who are enrolled in flight schools will see their annual maximum GI Bill benefit increase from $15,497.15 to $16,535.46.