VA raises education reimbursement levels for veterans

The Department of Veterans Affairs (VA) is providing veterans a major boost in the monthly educational payments offered under the Montgomery GI Bill.

Concerned about the underuse of Montgomery GI Bill benefits by eligible veterans, VA supported an increase in reimbursement rates well above the normal cost-of-living increases because these annual adjustments have not kept pace with rising college education costs.

"Under legislation signed by President Bush, we now are on track to gain the tuition spending power veterans expect," VA Secretary Anthony J. Principal said. "We are coupling a series of robust payment increases over the next two years with innovative programs that will help prepare today's service member with the education needed for tomorrow's job market."

At the top tier for full-time studies, the tuition reimbursement rate raises from $672 to $800 per month, almost 20 percent. That will jump to $900 next fall and $985 in October 2003. Rates are adjusted for veterans enrolled part-time or for those with limited military service.

In addition to covering traditional two-year and four-year college studies, a new VA program taking effect next fall is aimed at high technology courses. It will allow veterans to use a lump sum from their benefit for certain expensive courses such as those leading to certification of computer network professionals. Coverage of up to 60 percent of the cost of such high-tech courses will begin October 1, 2002.

Few service members opt out of coverage. Participants' pay is reduced by $100 per month for their first 12 months on active duty to cover a total veteran contribution of $1,200. The full-time rate of $800 a month is paid for up to 36 months of study, which covers the academic months of a traditional 4-year college education for a return value of $28,800 at today's top rate.

The new law, the Veterans Education and Benefits Expansion Act of 2001 (Public Law 107-103), also improves educational assistance for eligible spouses and children of certain veterans, including veterans who died or are permanently and totally disabled as a result of a service-connected disability. For information about veterans educational programs, call VA at 888-442-4551.