Paying for college:
Educational Advantages in the MilitaryFrom The Griffon, Vol 28.3, Summer 2004
Ironically, service members have access to money that many civilians do not have. Although the advantages of serving on Active Duty and in the Reserve and National Guard are different, both groups are better off than their civilian counterparts. In fact, military personnel can sometimes make a profit from attending college.
The obvious starting point for this discussion is the Montgomery GI Bill (MGIB). Most soldiers understand the "front-end" of the program, because they invested their time and money into either the Active Duty version of the MGIB (Chapter 30) or Selected Reserve MGIB (Chapter 1606).
Many soldiers and veterans, however, do not understand the benefits that they signed up to receive.
The first key piece of information is that the benefits do not last forever. The benefit expires after ten years, and the beginning of the ten-year period depends on whether or not you have the MGIB Chapter 30 or 1606. If you do not use the GI Bill, at some point, you will lose the benefit.
In order to claim your benefits, you need to enroll in an educational program at an approved institution. Vocational training, flight school, and graduate courses can qualify you for the benefit. Contact the school that interests you before you enroll to make sure that they are approved by the Department of Veteran Affairs to qualify you for the benefit.
The paperwork to get your payments is minimal, and the schools do most of the heavy lifting. You will need to prove that you qualify for the benefit, and you will need to certify that you are pursuing your educational goals, but it is a relatively simple process.
Of course, the benefit is about the money. The amount of money you receive varies depending on whether you have Chapter 30 or Chapter 1606, and how much time your education course requires. For example, a full-time student with the MGIB Chapter 30 receives $985 per month.
The amount of money that you receive, however, has nothing to do with how much the school costs. If you attend a prestigious, private university, the MGIB may only cover a fraction of your tuition. At a community college or state school, however, the MGIB may cover your tuition and give you a profit of thousands of dollars.
You may also qualify for the MGIB Kicker. Both Chapters 30 and 1606 have versions of the Kicker. Basically, you invest more time or money into the program, and in return, you get a higher payout from the GI Bill. For example, a qualified Reservist who wants the Kicker needs to enlist or reenlist for six years, and in return she can receive an additional $200 per month, bringing her monthly payment for full-time study up to $476.
The best part about the money from the GI Bill is that it is not financial aid. It is an education incentive. Each month that you are a student for up to 36 months, you will receive a payment that is yours to spend as you please. If you want to apply it towards your tuition, you can; if you want to use it to buy a car, you can. The money is yours.
On a related note, the military offers Tuition Assistance (TA) to Active and Reserve soldiers. For Active Duty soldiers, the benefit covers up to 100% of tuition with a cap of $4500 per year. Reservists can also qualify for TA that covers up to 75% of tuition and no more than $3500 per year. Moreover, if TA does not cover your tuition, you can use your MGIB to "top off" your TA. For example, an Active Duty soldier receives up to $750 for a three-credit course, but if the course costs $1000, she can use the MGIB and receive an additional $250 to cover the tuition.
Bear in mind, however, that you can only receive a payment from the MGIB 36 times—once a month for 36 months. If you use the GI Bill for part-time study, you are reducing the total amount that you can get from the program. Similarly, in the example of the TA "top off" above, that soldier just used an entire month of the MGIB—potentially worth $985—to get $250. Of course, if you need the MGIB to top off your TA or to pay for part-time study, it is yours to use, but be aware that you get more money using it for full-time study.
The MGIB and TA are only the tip of the gigantic, green iceberg when it comes to money for education. Many college students rely on federal and state financial aid. Soldiers can qualify for the exact same aid, plus they have a few advantages.
Some states offer special financial aid programs for military personnel or service members who have served in certain military campaigns. Local Veteran Affairs offices will be able to let you know if you qualify for any military-specific programs.
In addition, filing for financial aid requires applicants to complete the Free Application for Federal Student Aid (FAFSA), and the FAFSA asks for information about the applicant's family. Eligibility for financial aid depends not just upon the student's assets, but upon the assets of the student's parents. Thus, several impoverished students may receive different aid depending on the financial situation of the parents.
The exception is that "independent" students do not need to supply parental tax and financial information. The government allows only a few ways of becoming an independent student, but one of them is to serve on Active Duty in the military. Thus, an Active Duty soldier receives aid based on his own financial situation.
The FAFSA is the key to getting federal and state grants—money that does not have to be repaid—and government-supported student loans. Obviously, grants are better than loans, but loans are not terrible. The interest rates on government loans are generally low; the repayment periods are long and deferred as long as you are a student; and the interest on these loans is often tax deductible. Government-supported education loans are a good option for students who need outside help to fund higher education.
One of the biggest advantages that military folks have in pursuing a college degree is that they are already part of the way there. The American Council on Education (ACE) examines military training and provides college credit recommendations for those courses. Every soldier has an AARTS transcript that lists all of the training that the soldier has completed, as well as the ACE credit recommendations. A soldier who has completed residential and non-residential courses may be eligible to receive dozens of credits from a college. As a result, you may already be a college sophomore and not know it—and you can finish college without ever paying for your freshman year.
Reservists may have education benefits at their civilian jobs. Many employers encourage higher education and pay for courses that will produce a more talented employee. Look into the education benefits at your work and you may find even more money waiting for you.
In closing, let me briefly tell you what I did. I did not use my military transcript, nor did I actively pursue higher education while I served on Active Duty by taking classes. If I had, I could have made several thousand more dollars by skipping a year or two of college. I started a community college that cost approximately $800 per semester. I qualified for federal and state aid without the need to supply my parents' financial information in the FAFSA, and I received thousands of dollars in grants. I invested in the MGIB, and I received a check each month payable to me. I earned a small scholarship after a few semesters of college. I made a profit of more than $5000 per year at community college, while working a civilian job and serving as a Reservist.
The money is out there and it is yours. Go get it.
Sean-Michael Green is a consultant, speaker, and author on the topic of higher education and the military. He is a former enlisted Marine; a graduate of the University of Pittsburgh, the University of Pennsylvania, and Cornell University; and the author of Marching to College: Turning Military Experience into College Admissions (Random House).