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Break Pay, No Longer an Issue
January 6th, 2011
Now, 36 months means 36 months.
Prior to the new law signed by President Obama, between short college semester breaks, unless a member otherwise stipulated, those receiving benefit under the Post-9/11 GI-Bill would continue to receive a living stipend equal to the amount of E-5 BAH with dependents. What most beneficiaries were unaware of is that receiving the stipend reduced your future months of full GI Bill benefit.
Most of the changes take affect 1 August 2011, so if you plan on taking the first summer classes, break pay will still be an issue.
Some additional information via Navy Times;
National Guard and reserve members will get more credit toward earning the benefit. Those on full-time active duty as part of the Active Guard and Reserve program will have their time count toward benefits, and time mobilized for homeland security missions also will count.
- The $1,000-per-year book allowance becomes available to active-duty service members and to their spouses using transferred benefits, although they will still not receive the living stipend available to other students.
- Distance learning students, who currently receive no living stipend unless they are taking at least one on-campus class, will become eligible for the monthly benefit but they will be paid a reduced rate that is one-half of the national average living stipend.
- Vocational training, including apprenticeships and on-the-job training, will become covered programs where tuition costs will be covered and living stipends also paid.
In place of state caps, the new law creates a single, nationwide cap of $17,500 a year for tuition and fee reimbursement, a level that could result in some students attending private colleges — whose full costs are covered now — paying out of pocket next fall.
If you are in a state were the new $17,500 cap affects you, you may want to get information regarding the Yellow Ribbon Program. “[Yellow Ribbon Program] allows institutions of higher learning (degree granting institutions) in the United States to voluntarily enter into an agreement with VA to fund tuition expenses that exceed the highest public in-state undergraduate tuition rate. The institution can contribute up to 50% of those expenses and VA will match the same amount as the institution.”
My oldest son, who is currently attending law school, utilizes this program to cover the cost above the current cap. The application was simple and the answer back from the VA was prompt, but the school did have a cap on the number of applicants for the program, so if this affects you, get involved now so you will not be left short.
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