New GI Bill: A Disincentive to Online Education?

By Terry Howell

For several months I have been blogging on the issues concerning the new Post 9/11 GI Bill and online education. Although online course work is technically covered by the New Post 9/11 GI Bill, the tuition payment rate is substantially lower than the average cost for online coursework. In addition students who attend classes 100 percent online will be excluded from receiving the housing stipend.

However, I recently got some good news from the VA on how they intend to handle the housing stipend for students who attend a mix of classroom and online courses.

The VA policy in such cases will be to pay the stipend to any student who is taking more than a half-time class load, as long as at least one unit is taken in a classroom setting. Here are some examples of qualified and unqualified situations:*

Qualifying Example (A): Student "A" takes a total of 12 units (qualifying for stipend due to having more than a half-time load) at least one unit of which is in a classroom setting, leaving 11 units being taken online. Student "A" would qualify for the full stipend, as long as all other eligibility criteria is met.

Note: The housing stipend would be based on the campus zip code.

Qualifying Example (B): Student "B" takes 7 units (more than half-time) at least one unit is in the classroom. Student "B" would get the housing stipend, as long as all other eligibility criteria is met..

Non-Qualifying Example (C): Student "C" takes a total of 6 units (normally considered "half-time"). Student "C" would not qualify due to not meeting the requirement of taking "more than a half-time" load.

Non-Qualifying Example (D): Student "D" takes 7 units (more than half-time) but all classes are online with none taken in the a classroom setting. Student "D" would not qualify for the stipend.

Unfortunately this still does nothing for students who are taking 100 percent online course, However, it is an improvement in the right direction.

A recent article by Elizabeth Redden - featured on Inside Higher Ed - does a great job reporting many of the facts many of you have read and commented on here in the past. Her article speaks about the benefit limitations for online students under the Post 9/11 GI Bill. In her article, Elizabeth offers some explanation as to how the limitations made it into the final law and the possible impacts. She also has some very interesting quotes from key players in the VA, DoD, and affected schools. I highly recommend reading this article found at Inside Higher Ed and past blog entries on this subject.

Disincentive to Distance Learning- Inside Higher Ed
Time to Improve the New GI Bill- Military Ed Blog
Beyond the Hype of the New GI Bill- Military Ed Blog

If you have specific questions about your GI Bill eligibility and requirements call the VA 1-888-GIBILL-1.

*Note from Author: The facts in examples reflect the policy as it was explained at the ACE VA Post-9/11 GI Bill Implementation Conference in LA - by the VA Director of Education Service, Keith Wilson. Yes the answers are subject to change.

About the Author: A Retired Coast Guard Chief Petty Officer, Terry completed his BS in Management and Communications using a combination of CLEP exams, credit for military service, and distance learning while on active-duty. Terry now serves as Managing Editor for the Education Channel at Military.com.

Recession Affects Post 9/11 GI Bill Program

According to an article by Tom Philpott, the worldwide financial crisis has hit private colleges hard enough that relatively few are likely to participate in the Post-9/11 GI Bill's "Yellow Ribbon" initiative when it begins this fall, says Keith M. Wilson, director of education service for the Veterans Benefits Administration.

Under the Yellow Ribbon program, private colleges and universities can enter into agreements with the Department of Veterans Affairs to waive up to half of tuition and fees charged above the most costly state-run school. The VA, in turn, will match the waived amount, thereby enhancing school reimbursements and the value of the new GI Bill.

Read the full Fiscal Crisis Wrinkles New GI Bill's 'Yellow Ribbon' article. 

New Info on Post-9/11 GI Bill Transferability

The Military Officers Association of America (MOAA) recently reported new information on how GI Bill transferability will affect those planning to retire from the military.

Note: Post-9/11 GI Bill program doesn't begin until Aug. 1, 2009. The VA will not begin taking applications for transferring benefits until the DoD determines eligibility criteria and will not begin processing applications until all the transferability facts are made clear.

In addition, the transferability discussed here ONLY APPLIES to the Post 9/11 Benefits (Chapter 33) GI Bill. As with all Post-9/11 GI Bill information, the following information is subject to change.

- - - - - -

The following information is provided by the Military Officers Association of America.

MOAA has learned that some people nearing retirement from active service who are eligible for the new Post-9/11 GI Bill will be able to transfer their benefits to a spouse or dependent children. 

Congress gave the Defense Department broad authority to set the rules for transferring the benefits as a tool to induce retention or reenlistment in the Armed Forces including the National Guard and Reserves. 

The transfer program will work as follows, assuming an individual has qualifying Post-9/11 service in the Armed Forces -- active duty or service in the Selected Reserve (activated).

To be eligible to transfer to a spouse or child, a member must:

*  Have served at least 6 years in the Armed Forces on the date of election and agree to serve four additional years from that date; or

*  Have at least 10 years of service in the Armed Forces on the date of election and be precluded from committing to four additional years by law or Service/DoD policy.  For example, servicemembers subject to high-year tenure rules and who have 10 years' service at the time of election would be eligible.

*  Members who are currently retirement eligible or who will become retirement eligible during the period Aug. 1, 2009 through Aug. 1, 2012 can also qualify.  "Retirement eligible" means completion of 20 years of active federal service or completion of 20 years' reserve service.

Here's how the program will work for various cohorts of retirement eligibles:

*  For those eligible to retire on or before Aug. 1, 2009, no additional service is required.

*  For those eligible for retirement after Aug. 1, 2009 and before July 1, 2010, one year additional service is required.

*  For those eligible for retirement after Aug. 1, 2010 and before July 1, 2011, two years' additional service is required.

*  For those eligible for retirement after Aug. 1, 2011 and before July 1, 2012, three years' additional service is required.

Thanks to MOAA for sharing this information! You can learn more about the Military Officers Association of America at http://www.moaa.org/.