New GI Bill Expands Eligibility and Allows Benefit Transfers

The Post-9/11 GI Bill (Chapter 33) is a new benefit providing educational assistance to all individuals who served at least 90 days of active duty on or after 11 Sep 01.  For a service-connected disability, time served is at least 30 days.  Both officers and enlisted personnel are eligible.  The veteran may receive a maximum of 36 months of benefits that include tuition, annual stipend, and housing, based on time served.  If utilized on active duty, only the Service member’s tuition and fees are paid.  By law, this is a retention incentive, so conversions will have to be made while an individual is on active duty. The Bill becomes effective on 1 Aug 09; therefore, benefits will not be paid for any education programs completed before 31 Jul 09.

A major component of the new law is authority allowing Service members to transfer unused education benefits to immediate family members:

  • To enroll for transfer of unused education benefits, sponsors must have served at least six years on active duty and must commit to an additional four years active duty.  It has yet to be determined, however, whether the intent of the law is met when a service member is willing to serve the additional four (4) years but cannot, due to a Service’s policy (HYT, RIF, etc.).
  • Sponsors may transfer any amount of available benefits (36 months or unused Montgomery GI Bill and/or Post-9/11 benefits, whichever is less).
  • Benefits may be transferred to a spouse, and/or dependent children between 18 and 26 years of age. 
  • Spouses may begin using transferred benefits at any time after the election.  Tuition and fees are paid if the sponsor is on active duty; tuition and fees, stipend, and housing allowance if the sponsor is a veteran.
  • Children may use the benefit after the sponsor completes 10 years of service.  The dependent child benefit is tuition and fees, stipend, and housing allowance regardless of the sponsor’s active duty status.

An OSD working group (e.g., OSD, VA, Military Services, and others) will be developing official policy (e.g., conversion/implementation procedures, etc.) over the next several months.  This information reflects the minimum requirements of the law; however, OSD is authorized to tweak the rules prior
to implementation.  Until then, the only official source for information is the DVA website at www.gibill.va.gov/s22.htm.