GI Bill and dependents of active military funding?

[8filltheheart]

I am giving a college application talk on the 8th and I remember reading something about changes in eligibility for military dependents. I can't find the post, but I think it discussed instate tuition for dependents of active duty military??

 

I do not know anything about this topic, but I would like to be able to provide them with links or a general idea of benefits.

 

I would appreciate any links or info anyone can provide.

[SanDiegoMom]

This is the link to the bill that just passed.  It adds the provision that if a sponsor is still active duty and has successfully transferred their benefits to dependents, the dependent has to receive in state tuition to any state school in the U.S.  If the sponsor has retired and the dependent uses the gi bill less than 3 years after retirement, they still get the same in state tuition anywhere.  If it is longer than three years, they should have established residency somewhere and they will only get in state tuition in that state.

 

Before the language implied that the military member transferring the benefit HAD to be a veteran (aka retired) so if they were still active duty, the dependent would not get in state tuition anywhere but the state in which they were stationed. 

 

If the student attends a private college, the student will receive up to $22,805 towards tuition.  If the college offers the yellow ribbon program, the VA will match the amount that the college offers. 

 

The housing allowance offered is searchable using BAH rates for the area.  It will be an E-5 with dependents rate, which in high col areas can be pretty substantial! (NY is around 3500 per month I think).  You get 9 months of BAH per year for four years, and  8 semesters of full time tuition. You also get 1000 per month for books.  

https://www.congress.gov/bill/114th-congress/house-bill/6416

 

 

Because the bill did just get signed, not all the information on the internet is up to date.  Since we were in the middle of college applications (and they had all gone out already which made it very tricky trying to judge whether it would pass or not) we just called one of the school's VA office on our list and asked them.  

 

I can look up more links, but I wanted to send this out to get you started. 

[8filltheheart]

Thank you! This is so helpful. There are active military families in our area. I am so thankful you posted!

[Sebastian (a lady)]

This is the link to the bill that just passed. It adds the provision that if a sponsor is still active duty and has successfully transferred their benefits to dependents, the dependent has to receive in state tuition to any state school in the U.S. If the sponsor has retired and the dependent uses the gi bill less than 3 years after retirement, they still get the same in state tuition anywhere. If it is longer than three years, they should have established residency somewhere and they will only get in state tuition in that state.

 

Before the language implied that the military member transferring the benefit HAD to be a veteran (aka retired) so if they were still active duty, the dependent would not get in state tuition anywhere but the state in which they were stationed.

 

If the student attends a private college, the student will receive up to $22,805 towards tuition. If the college offers the yellow ribbon program, the VA will match the amount that the college offers.

 

The housing allowance offered is searchable using BAH rates for the area. It will be an E-5 with dependents rate, which in high col areas can be pretty substantial! (NY is around 3500 per month I think). You get 9 months of BAH per year for four years, and 8 semesters of full time tuition. You also get 1000 per month for books.

https://www.congress.gov/bill/114th-congress/house-bill/6416

 

 

Because the bill did just get signed, not all the information on the internet is up to date. Since we were in the middle of college applications (and they had all gone out already which made it very tricky trying to judge whether it would pass or not) we just called one of the school's VA office on our list and asked them.

 

I can look up more links, but I wanted to send this out to get you started.

Thanks for the link to the bill. When I see summaries of the changes it seems like they expanded eligibility to transfers from active duty members, but that the student still has to live in the state the institute of higher learning is located in.

 

Do you have more info on the that it means in state rate at any school, regardless of where the student lives?

[SanDiegoMom]

Here is a link to an article citing the change: scroll to the bottom:

 

http://www.militaryfamily.org/kids-operation-purple/education.html

 

It says:

 

Since 2014, public colleges and universities have been required to grant in-state tuition status to veterans and their dependents using Post-9/11 GI Bill benefits within three years of the service member leaving the military. Effective July 1, 2017, this benefit will be extended to dependents of active duty service members as well. Note that this only applies to students using GI Bill benefits.

 

And to define what a covered individual really is:

 

http://www.benefits.va.gov/gibill/417.asp

 

To remain approved for VA’s GI Bill programs, schools must charge in-state tuition and fee amounts to “covered individuals.†A covered individual is defined as:

 

1. A Veteran who lives in the state where the IHL is located (regardless of his/her formal state of residence) and enrolls in the school within three years of discharge from a period of active duty service of 90 days or more.

 

2.An individual using transferred benefits who lives in the state where the IHL is located (regardless of his/her formal state of residence) and enrolls in the school within three years of the transferor’s discharge from a period of active duty service of 90 days or more.

 

3.Anyone described above while he or she remains continuously enrolled (other than during regularly scheduled breaks between courses, semesters, or terms) at the same school. The person so described must have enrolled in the school prior to the expiration of the three year period following discharge or release as described above and must be using educational benefits under either chapter 30 or chapter 33, of title 38, United States Code.

 

4.Anyone using transferred Post-9/11 GI Bill benefits who lives in the state where the IHL is located and the transferor is a member of the uniformed service who is serving on active duty.

[Sebastian (a lady)]

Here is a link to an article citing the change: scroll to the bottom:

 

http://www.militaryfamily.org/kids-operation-purple/education.html

 

It says:

 

Since 2014, public colleges and universities have been required to grant in-state tuition status to veterans and their dependents using Post-9/11 GI Bill benefits within three years of the service member leaving the military. Effective July 1, 2017, this benefit will be extended to dependents of active duty service members as well. Note that this only applies to students using GI Bill benefits.

 

And to define what a covered individual really is:

 

http://www.benefits.va.gov/gibill/417.asp

 

To remain approved for VA’s GI Bill programs, schools must charge in-state tuition and fee amounts to “covered individuals.†A covered individual is defined as:

 

1. A Veteran who lives in the state where the IHL is located (regardless of his/her formal state of residence) and enrolls in the school within three years of discharge from a period of active duty service of 90 days or more.

 

2.An individual using transferred benefits who lives in the state where the IHL is located (regardless of his/her formal state of residence) and enrolls in the school within three years of the transferor’s discharge from a period of active duty service of 90 days or more.

 

3.Anyone described above while he or she remains continuously enrolled (other than during regularly scheduled breaks between courses, semesters, or terms) at the same school. The person so described must have enrolled in the school prior to the expiration of the three year period following discharge or release as described above and must be using educational benefits under either chapter 30 or chapter 33, of title 38, United States Code.

 

4.Anyone using transferred Post-9/11 GI Bill benefits who lives in the state where the IHL is located and the transferor is a member of the uniformed service who is serving on active duty.

 

The bolded is what I'm trying to get more info on from the state schools ds was accepted to.  When I read this, it looks like it is granting resident rate to students who live in the same state as the IHL, even if their official residence is elsewhere.  So for example, a student who lives with his military parent in Hawaii could get in state tuition there, while using GI Bill, even if parent is has maintained another state, like Texas.  

 

ETA: I had drilled into this a couple years ago when the first law allowing in state for GI Bill users was passed.  My reading was that it eliminated the need for a student to spend a year living in the state to establish residency.  I'm not sure if the new law extends in state rates to every state, or simply changes the categories of GI Bill eligible users that don't have to wait to establish residency.

Edited April 1, 2017 by Sebastian (a lady)

[SanDiegoMom]

And because we spent hours trying to decode the language, we finally gave up and called one of the school's my dd applied to, out in California. We called their VA office and told them our situation (applying out of state, using GI Bill, sponsor active duty). They said that yes, after July 1st we will be fine, before that, no. We are station in Va, residents of FL, but would get in state CA tuition AFTER July 1st.

 

I admit the language is incredibly confusing, which was why we called and told them our exact situation. I would do that - just call the VA office at the school and verify since they will be the ones handling all the VA paperwork and money.

[SanDiegoMom]

And since I can't quote on my phone, Sebastian I saw on the other thread that your DS got accepted to Stanford (congrats!!) so don't forget about yellow ribbon money (I looked up Stanford and its 3000, which the VA matches) and that the bah for the area is super high compared to living expenses and you get that money sent straight to you, not the school. So it's another way to make up for tuition that is higher than the 22,000 or whatnot that the VA gives for a private school.

 

We were looking into that when my dd was looking at NyU. The tuition is insanely high, but the bah was twice the dorm rate, so we were considering applying the rest to the tuition.

[GoodGrief]

My oldest has used my husband's GI Bill benefits for the last few years at an OOS school. So happy for others that the rule has changed because it was a major hassle! On the other hand...sad for us that it happened now that she is graduating, lol!

[Sebastian (a lady)]

And because we spent hours trying to decode the language, we finally gave up and called one of the school's my dd applied to, out in California. We called their VA office and told them our situation (applying out of state, using GI Bill, sponsor active duty). They said that yes, after July 1st we will be fine, before that, no. We are station in Va, residents of FL, but would get in state CA tuition AFTER July 1st.

 

I admit the language is incredibly confusing, which was why we called and told them our exact situation. I would do that - just call the VA office at the school and verify since they will be the ones handling all the VA paperwork and money.

That's good to hear. I actually had called one school and was told they would do resident tuition if GO Bill were used, butbi wasn't sure they were really correct since they made a mistake about something else and I couldn't figure out what policy they were basing it on.

[Guest]

This is the link to the bill that just passed.  It adds the provision that if a sponsor is still active duty and has successfully transferred their benefits to dependents, the dependent has to receive in state tuition to any state school in the U.S.  If the sponsor has retired and the dependent uses the gi bill less than 3 years after retirement, they still get the same in state tuition anywhere.  If it is longer than three years, they should have established residency somewhere and they will only get in state tuition in that state.

 

Before the language implied that the military member transferring the benefit HAD to be a veteran (aka retired) so if they were still active duty, the dependent would not get in state tuition anywhere but the state in which they were stationed. 

 

If the student attends a private college, the student will receive up to $22,805 towards tuition.  If the college offers the yellow ribbon program, the VA will match the amount that the college offers. 

 

The housing allowance offered is searchable using BAH rates for the area.  It will be an E-5 with dependents rate, which in high col areas can be pretty substantial! (NY is around 3500 per month I think).  You get 9 months of BAH per year for four years, and  8 semesters of full time tuition. You also get 1000 per month for books.  

https://www.congress.gov/bill/114th-congress/house-bill/6416

 

 

Because the bill did just get signed, not all the information on the internet is up to date.  Since we were in the middle of college applications (and they had all gone out already which made it very tricky trying to judge whether it would pass or not) we just called one of the school's VA office on our list and asked them.  

 

I can look up more links, but I wanted to send this out to get you started. 

 

Are you saying that the rules have been changed to give dependents with a transferred post-9/11 GI Bill BAH?! It has heretofore only been given to service-members using their own Post 911 GI Bill. That would be a huge change!!

 

[Sneezyone]

Are you saying that the rules have been changed to give dependents with a transferred post-9/11 GI Bill BAH?! It has heretofore only been given to service-members using their own Post 911 GI Bill. That would be a huge change!!

 

Allowing dependents using GI bill to get E5 BAH happened several years ago. This change just clarifies that they are also eligible for in-state tuition wherever they go. This is an especially big boon for families stationed overseas who didn't qualify for in-state tuition anywhere due to their assignments. This has allowed DH and I to seriously consider remaining overseas for the balance of his career.

[Guest]

Allowing dependents using GI bill to get E5 BAH happened several years ago. This change just clarifies that they are also eligible for in-state tuition wherever they go. This is an especially big boon for families stationed overseas who didn't qualify for in-state tuition anywhere due to their assignments. This has allowed DH and I to seriously consider remaining overseas for the balance of his career.

 

WHAT! Wow that changes our tentative plans. When I stopped being Ombudsman, I stopped keeping up with this stuff, obviously :laugh:

 

Does the member have to still be AD, or can he be retired, and the dependent will still get BAH?

[Sneezyone]

WHAT! Wow that changes our tentative plans. When I stopped being Ombudsman, I stopped keeping up with this stuff, obviously :laugh:

 

Does the member have to still be AD, or can he be retired, and the dependent will still get BAH?

You can be retired and the student can still get BAH. If a spouse is the one using it, while the member is AD and already receiving BAH, he/she will not get E5 BAH tho.

[SanDiegoMom]

However keep in mind if they are over three years past retirement they only get in state tuition where they live.

[Sebastian (a lady)]

WHAT! Wow that changes our tentative plans. When I stopped being Ombudsman, I stopped keeping up with this stuff, obviously :laugh:

 

Does the member have to still be AD, or can he be retired, and the dependent will still get BAH?

 

Play around with the GI Bill Benefits calculator here.  https://www.vets.gov/gi-bill-comparison-tool

 

BAH has been a benefit for Transferred benefits used by dependents for a number of years.  I know a friend of ours was using it back at least 5 years ago.

 

Having said that, there have been frequent moves within the Defense Appropriations legislation to reduce the BAH benefit for children of veterans using transferred benefits.  There was language in a recent bill that would have reduced the BAH for children using transferred benefits to 50% of BAH. It would have been in effect for any new transferees, but students who were already in the system would have been grandfathered in.  

 

Keep in mind that the GI Bill transferability was created as a tool to increase retention.  When there is less need to retain service members and the DOD budget is tight, this is an area that is attractive to cut.  So current benefits don't guarantee future benefit levels.

[BlessedMomto3]

I have a question on this topic - does anyone know how the in state benefit applies if the GI bill has been transferred to multiple dependents and so won't be used for each year? We split it among our children and I'm wondering how this would affect their in state status - would they just be in state the first year if they used the GI bill but then not the remaining years?

[BlessedMomto3]

I have a question on this topic - does anyone know how the in state benefit applies if the GI bill has been transferred to multiple dependents and so won't be used for each year? We split it among our children and I'm wondering how this would affect their in state status - would they just be in state the first year if they used the GI bill but then not the remaining years?

[Sebastian (a lady)]

I have a question on this topic - does anyone know how the in state benefit applies if the GI bill has been transferred to multiple dependents and so won't be used for each year? We split it among our children and I'm wondering how this would affect their in state status - would they just be in state the first year if they used the GI bill but then not the remaining years?

 

I've talked to several schools in different states.  The school policy seems to vary from school to school.

 

It looks like the law only requires that the school charge in state rates to eligible users of the GI Bill (eligible including people using GI Bill who are children of active duty or members who have retired in the last 3 years).  Some schools I talked to were on top of the recent change in the law that included members on active duty in this category.  Some had to be prompted.

 

One school I spoke to said that once in state residency rates were applied, they would apply even after the student stopped using the GI Bill.  Another school was very specific that in state rates would ONLY apply while GI Bill benefits were being used.

 

You might find that you get the most benefit out of not splitting the benefit equally among all of the children, but in using it for the student who would get the most benefit from it.  For example, we skipped using it with our oldest, who already had scholarships that would cover tuition at his public university.  We are more likely to use it with the next kid who is looking at more expensive private schools.  This can still be of benefit to our youngest, because we will have more of our savings available to use for his college costs (especially given that some of the colleges have very generous Yellow Ribbon benefits).

[GoodGrief]

 

 

You might find that you get the most benefit out of not splitting the benefit equally among all of the children, but in using it for the student who would get the most benefit from it.  For example, we skipped using it with our oldest, who already had scholarships that would cover tuition at his public university.  We are more likely to use it with the next kid who is looking at more expensive private schools.  This can still be of benefit to our youngest, because we will have more of our savings available to use for his college costs (especially given that some of the colleges have very generous Yellow Ribbon benefits).

 

Sebastian is correct in that it will certainly vary from school to school.

 

I also agree that it may be to your benefit to apply the GI Bill to a single student rather than dividing it., if ultimately you are covering the costs for all. In our case, it made the most sense to use it with our oldest daughter. The second was more likely to get her costs covered via scholarship to a greater extent. For the youngest, we have additional time to save, no other kids in school, and I could likely work.

 

It would be nice to have a crystal ball to know for sure how these things will go though!

 

[Hypatia.]

Oh wow, I'm going to be reading through this! DH retired about 4.5 years ago, but when he transferred his GI bill to the Post-911 GI bill, he couldn't transfer benefits to dependents without serving for another couple years. I'm hoping this changes this, because being able to use those benefits for our older 4 kids (younger 2 were born after he retired) would really be fantastic. 

[Sebastian (a lady)]

Oh wow, I'm going to be reading through this! DH retired about 4.5 years ago, but when he transferred his GI bill to the Post-911 GI bill, he couldn't transfer benefits to dependents without serving for another couple years. I'm hoping this changes this, because being able to use those benefits for our older 4 kids (younger 2 were born after he retired) would really be fantastic. 

 

I don't expect to see a change that would allow transfer after leaving the service.

 

The Post 9/11 GI Bill with the the transferrability option was created in order to improve retention during a period of high op tempo.  Right now, the general trend has been to find ways to cut the current benefit.  For example there have been proposals to cut the BAH benefit by 50% for children using transferred benefits.  So far this hasn't been pass in law, but it is probably coming.  

 

Hate to be a downer, but the powers that be don't see this as a reward for past service, but as a carrot to get people to stay in longer than they might otherwise.

[Sebastian (a lady)]

Sebastian is correct in that it will certainly vary from school to school.

 

I also agree that it may be to your benefit to apply the GI Bill to a single student rather than dividing it., if ultimately you are covering the costs for all. In our case, it made the most sense to use it with our oldest daughter. The second was more likely to get her costs covered via scholarship to a greater extent. For the youngest, we have additional time to save, no other kids in school, and I could likely work.

 

It would be nice to have a crystal ball to know for sure how these things will go though!

 

 

Another consideration is to use the benefit before it gets cut.  We have generally said that we wanted to use it for the first kid who could make good use of it, under the assumption that any unused benefit was subject to modification.

 

On the other hand, I have also thought that saving it for a kid who was less likely to get merit aid might be a good idea.  (But I hate the feeling that we would be playing chicken with a potential downgrade in the benefit.)

[Guest]

Hate to be a downer, but the powers that be don't see this as a reward for past service, but as a carrot to get people to stay in longer than they might otherwise.

Yes, this is exactly why we used up our GI Bill as soon as we could. We split it between our oldest boys (twins) and exhausted it in two years. We could see the handwriting on the wall, so to speak, and decided to use it up while it was still all there.

[Guest]

Correct. They can just take it away or, as they did "to" us, change the rules for using it any time.

[GoodGrief]

Another consideration is to use the benefit before it gets cut.  We have generally said that we wanted to use it for the first kid who could make good use of it, under the assumption that any unused benefit was subject to modification.

 

 

 

Yes, that was a consideration for us as well. And with our youngest being eight years behind the oldest, it didn't make sense to take that risk.

 

I REALLY wish that we had the in-state tuition benefit for our now-graduating senior, but, oh well :-)

[Sebastian (a lady)]

Yes, that was a consideration for us as well. And with our youngest being eight years behind the oldest, it didn't make sense to take that risk.

 

I REALLY wish that we had the in-state tuition benefit for our now-graduating senior, but, oh well :-)

 

You can can't plan based on future legislation. The in state rate policies weren't an option yet when DS applied to his colleges.

Edited April 7, 2017 by Sebastian (a lady)