How Much Does The Gi Bill Pay For Housing

How Much Does The GI Bill Pay For Housing?

The GI Bill is one of the most valuable benefits available to veterans pursuing higher education or job training after active duty. A major component of the GI Bill is the monthly housing allowance which helps cover housing expenses while enrolled in school or training. But how much does the GI Bill actually pay for housing? Let’s take a closer look.

The Post-9/11 GI Bill

The main GI Bill program today is called the Post-9/11 GI Bill. It provides funds for tuition and fees, books and supplies, and a monthly housing allowance The housing allowance is based on the Department of Defense’s Basic Allowance for Housing (BAH) for an E-5 with dependents in the same area as your school

The BAH rates vary widely across the country based on the cost of living. For example, an E-5 BAH in San Francisco could be over $4,000 per month, while an E-5 BAH in a small town in the Midwest might be $1,000 per month. So your GI Bill housing allowance will depend largely on where you attend school.

Here are some key facts about the Post-9/11 GI Bill housing allowance:

• It is paid directly to the student as a monthly stipend. You can use it for any housing-related expenses.

• It is prorated if you are attending school less than full-time. For example, if you are taking 6 credits, you may get 60% of the full housing allowance.

• Online students get a flat national average housing allowance, not the BAH for their school’s location. For 2023, this rate is $1,054.50 per month.

• Active duty personnel and spouses using transferred benefits do not receive the housing allowance.

• Housing allowances increase each year on August 1st to match the new BAH rates. They do not decrease if BAH rates drop.

Housing Allowance Rates by School Type

GI Bill housing allowances can vary not only by location, but also by the type of school you attend. Here are the maximum rates payable for the 2023-2024 school year:

• Public School In-State: Full BAH rate for the school’s location

• Public School Out-of-State: Full BAH rate for the school’s location

• Private School: BAH capped at $27,120.05 per year

• Foreign School: BAH capped at $27,120.05 per year

• Flight School: BAH capped at $15,497.15 per year

• Correspondence School: BAH capped at $13,172.57 per year

• Apprenticeship/OJT: Prorated BAH rate for location

• Online Only: Flat $1,054.50 per month

So if you attend a public school, you get the full BAH rate for that area. But for private schools and foreign schools, there is a cap on the maximum BAH payment per academic year. These caps help control GI Bill costs, but may limit how much housing assistance you receive if attending a high-cost private institution.

The Yellow Ribbon Program

If your tuition and fees exceed the GI Bill’s annual caps, your school may provide additional funds through the Yellow Ribbon Program. This is a voluntary program that schools can opt into. Over 5,000 degree-granting institutions participate.

Under Yellow Ribbon, your school gives a specified contribution toward costs above the GI Bill caps. VA then matches that amount. This can help provide full tuition coverage at some private colleges and universities.

The Yellow Ribbon funding can be applied to housing expenses too. So if your BAH payment is limited due to GI Bill caps, Yellow Ribbon could help make up the difference. Check with your school to see if they participate in this program.

GI Bill Housing Allowance Eligibility

To receive the full GI Bill housing allowance, you must meet a minimum service requirement:

• At least 36 months of active duty service post-9/11 to get 100% of benefits

• At least 90 days of active duty service to get 60-100% of benefits

Your eligibility percentage determines your monthly allowance rate. For example, with 60% eligibility you would get 60% of the E-5 BAH for your school’s location.

You must also be enrolled at greater than half-time status. Typically this means:

• 12 semester hours for undergraduate students

• 9 semester hours for graduate students

If you drop below half-time enrollment, your housing payment will stop. So make sure you register for enough credits each term to keep receiving the allowance.

Housing Allowance Payment Schedule

The GI Bill housing allowance is paid at the end of each month for the previous month’s enrollment. Your first payment may be partially prorated if your term starts mid-month.

Here is an example payment schedule:

• August term: First payment in end of September
• September term: Payment in end of October
• October term: Payment in end of November

This payment schedule means you need some savings or temporary housing when first starting school. But once the benefits begin, you’ll receive a steady stream of housing assistance.

It’s also important to promptly report any changes in enrollment, as that could affect your eligibility and monthly payment amounts. Work closely with your school’s VA certifying official to ensure proper documentation of your enrollment.

Tracking Your GI Bill Housing Allowance

There are a couple ways to look up your expected BAH rate and track payments:

1. Use the GI Bill Comparison Tool. This provides BAH estimates by school and program.

2. Check your monthly eBenefits account. This shows your actual GI Bill payment history.

3. Contact your VA Regional Office. They can explain your detailed entitlement information.

4. Call the GI Bill Hotline at 888-442-4551 for assistance.

Be sure to report any discrepancies quickly so corrections can be made. Unexpected gaps in payments create financial hardship for student veterans.

Strategies for Using the Housing Allowance

The GI Bill housing allowance gives you tremendous flexibility. Here are some smart ways to put that money to work:

• Pay rent and utilities for an apartment, house, or dorm.

• Cover the mortgage or rent on your current home.

• Pay for on-campus housing or a privatized dorm.

• Split housing costs with roommates to save money.

• Build savings for a future down payment.

• Pay off high-interest debt.

• Cover childcare expenses that allow you to attend school.

• Pay tuition not covered directly by the GI Bill.

• Invest for added retirement savings.

The key is budgeting wisely and using the funds to reduce financial stress. Don’t take on unnecessary expenses just because of the housing allowance. Stick to your overall education plan.

In Closing

The GI Bill housing allowance gives veterans and military families a powerful resource for covering housing costs during education and training. Determine your eligible BAH rate, find budget-friendly housing, and put your monthly stipend to good use. This benefit provides financial peace of mind when advancing your education and career after the military.