Using "Leftover" Benefits

If you’ve finished your degree program, congratulations!  The road to that college degree was long and hard, but you finally made it!

If you were fortunate enough to finish your degree without running out of GI Bill benefits, you might now be wondering what to do with the “leftover” benefits.  Should you go on to graduate school?  How long will your benefits last?  Is there another option?  If you're wondering how to make the most of your remaining benefits, read on...

What Happens if I Drop or Fail a Class?

You’re a student veteran, you’re collecting GI Bill educational benefits from the VA, and everything is finally working smoothly.  Then you find yourself in a particularly difficult class and start worrying about your grade.  If you’re like most other veterans, you’ll probably also start worrying about a new problem: what will happen to your VA benefits if you fail a class?  What if you drop it instead?

First of all, don’t worry, and don’t give up.  Be proactive, take a deep breath, and focus on your class, first.  Talk to your instructor and your academic advisor, and try to identify your stumbling block.  If you need tutoring, counseling, a stress break (exercise is a great way to clear your brain!), or academic accommodations to get you through, visit the appropriate offices on your campus for some additional support.  You’ve pushed through difficult stuff before, and you can get through this, with the right tools.

Next, you’ll need to discuss your options with your academic advisor and your school certifying official, and perhaps your financial aid counselor.  You may have several options available to you, depending on your situation, and each option may - or may not - have significant academic or financial penalties attached, which you will have to consider carefully before deciding what to do.

Calculating Pro-Rated Housing Payments

The provisions of all of the various forms of GI Bill benefits include a monthly allowance, which is intended for you to use for your educational expenses, or housing while you're in school.  The payment amounts vary considerably according which GI Bill program you're using, as well as a number of other factors.  But, once you've gotten it all figured out and started attending classes, you'd expect that your allowance would be the same every month, right?

Wrong.

Thanks to Public Law 111-377, which went into effect on August 1, 2011, the monthly allowance benefit is pro-rated at the beginning and ending of every academic term, and no longer pays for breaks between terms.  This means that you won't be getting the posted benefit rate every month. Since students are often on a tight budget, it helps to know in advance how much your monthly payments will be.  This article will tell you how you can calculate your monthly payments yourself, so you know what to expect when payday comes around.

VA Stipend for Books and Supplies

If you're using the Post-9/11 GI Bill, you are eligible for a stipend for books and supplies. The stipend is capped at $1,000 per year, but your payment amount actually depends on how many units or credits you're enrolled in. The payment and the cap are also pro-rated according to your eligibility tier.

Here's the formula: $41.67 x number of credits x your eligibility tier = book stipend, not to exceed $1,000 per academic year.

Showing "Proof" of your GI BIll Housing Allowance

When student veterans are apartment-hunting, they often find themselves having to show "proof" of their GI Bill housing allowance. The best supporting document: your enrollment and payment verification letter.

What letter, you ask?

At the start of each academic term, once your VA enrollment certification has been submitted and processed, the VA mails you a letter that verifies the information that the school submitted on your behalf, including the start and end of the term, how many credits you're enrolled in and your net tuition and fee charges. You should always double-check these numbers to make sure they are correct, and let your school certifying official know if there are any discrepancies.

The letter also says how much the VA will pay you in tuition/fee benefits, book & supply stipend, and monthly housing allowance until the end of the term, and then tells you how much entitlement you will have remaining when the term is over.

Your term verification letter is an important document that you should file carefully - don't just toss it aside. If you haven't been getting your letters, call the VA - you might need to update your mailing address.

Scholarships, Financial Aid, and your GI Bill

Many veterans, servicemembers, and military family members don't apply for college financial aid, because they feel that they don't need it, or won't qualify for it.  However, most colleges strongly suggest it, and here's a few reasons why:

• Financial aid can be used to secure your enrollment while you're waiting for VA funding, so you don't have to pay "up front" and wait for VA reimbursement
• Financial aid is a good "backup" plan in case of delays in VA processing
• Most forms of financial aid can also be used for books, technology or lab equipment, school supplies, room & board, transportation, childcare, or any other expense related to your education
• You might want to save your VA educational benefits for a future term, in which case you can use financial aid to cover your current-term expenses
• You might want to transfer some of your VA benefits to a family member (if you're eligible), and use financial aid to cover your own expenses instead
• You'll eventually exhaust your benefits; careful management of your benefit entitlement and financial aid awards will help you maximize your benefits and achieve your educational goals
• VA benefits are usually not counted as income on financial aid applications, which means you may qualify for more money than you think!