GI Bills Enacted Prior to 2008 and Related Veterans’ Educational Assistance Programs: A Primer
Released: 2017-10-06T00:00:00

Introduction

This report provides a detailed description of five of the six educational assistance programs (GI Bills ® ) that are currently available to veterans or other eligible individuals through the U.S. Department of Veterans Affairs (VA). The GI Bills provide financial assistance while enrolled in approved programs of education or training programs to individuals whose eligibility is based on a qualifying individual's service in the uniformed services. The sixth program, which is the most recently enacted, is the Post-9/11 GI Bill (Title 38 U.S.C., Chapter 33). It is described in CRS Report R42755, The Post-9/11 Veterans' Educational Assistance Act of 2008 (Post-9/11 GI Bill): A Primer . Congress regularly considers potential operational and benefit improvements for these programs and enacts legislation accordingly.

Over the decades since 1944, during which the GI Bill programs have been in existence, two themes have been emphasized. The benefits promote development of work-related skills to facilitate entry or re-entry into the civilian workforce, and the base benefit is equitable regardless of rank or military occupation specialty. All of the educational assistance programs administered by the VA require some period of military service before benefits can be received. The most salient ongoing discussions have been related to how much eligible individuals should contribute to their education in time or money, which types of service warrant a benefit, and how liberal (i.e., valuable) the benefit should be.

All of the benefit programs provide eligible persons an entitlement to educational assistance. This entitlement, usually 36 months, is measured in months and days. A dollar value is also associated with each month and day of entitlement. Educational assistance payments reduce the entitlement period based on the training period for which the payment was made or in proportion to the dollar value associated with each month and day of entitlement. In general, once the entitlement is exhausted eligible persons continue receiving educational assistance through the end of the academic term if more than halfway through, or for up to a 12-week period if not on an academic term schedule. The entitlement period is not reduced if an individual is called to active duty and if, as a result, the individual must discontinue studies and fails to receive credit or training time. Entitlement is restored for an incomplete course or program

for which the individual is unable to receive credit or lost training time as a result of an educational institution closing; for a course or program if a necessary course is disapproved by a subsequently established or modified policy, regulation, or law; and for the interim (through the end of the academic term but no more than 120 days) housing allowance paid following either a closure or disapproval.

This report describes the five GI Bills enacted prior to 2008 and related veterans' educational assistance programs. It is organized into five sections. The first section provides an explanation of the rationale and impetus behind veterans' educational assistance programs. The second section describes the eligibility requirements and benefits of the GI Bills. The GI Bills are discussed in descending order based on the number of current participants. The third section reviews the linkages and commonalities between the programs. A summary of selected characteristics of the various programs is presented in Table 2 . The fourth section provides a brief overview of related VA programs. The final section provides information on participation and expenditures for the programs. A detailed look at earlier GI Bills that are no longer available to participants and the lessons learned is available in the appendices.

History of the Programs

Since the Revolutionary War, the United States has provided benefits to injured or disabled war veterans; however for much of this period, benefits were not provided to the same extent to able-bodied veterans. Prior to World War II (WWII), "poor, jobless, and disgruntled veterans … had led to unrest and fear of revolt throughout American history." In 1932, after World War I, the military was called in to forcibly remove 20,000 still unemployed and often homeless veterans and burn their encampment near the Capitol and White House.

In early U.S. history, military service was thought of as "a fundamental obligation of [male] citizenship." Because the 16.1 million personnel who served in the U.S. Armed Forces during WWII accounted for over one-third of the 41.1 million working-age males (between 20 and 64 years of age) in 1947, the consequences of mass unemployment were feared. Before the end of WWII, Congress and the American Legion worked together to pass the original GI Bill, or Serviceman's Readjustment Act of 1944 (P.L. 78-346). The act provided a full range of resources to veterans including the construction of additional hospitals; educational assistance to non-disabled veterans; home, business, and farm loans; job counseling and employment placement services; and an unemployment benefit.

The original GI Bill was generally considered successful in averting unemployment, raising the educational level and thus the productivity of the U.S. workforce, and confirming the value that Americans place on those that provide military service. Subsequent GI Bills providing educational assistance have been passed ( Table 1 ).

The Korean Conflict GI Bill was enacted under the Veterans' Readjustment Assistance Act of 1952 (P.L. 82-550) and codified in Title 38, U.S.C., Chapter 33. The purpose of the program was to prepare returning veterans to enter the workforce.

In 1956, the War Orphans' Educational Assistance Act of 1956 (P.L. 84-634) was passed to provide educational assistance to the children of servicemembers who died as a result of injury or disability incurred in the line of duty. This program was later expanded to include spouses and children of servicemembers who died, became permanently or totally disabled, were missing-in-action, were captured, or were hospitalized as a result of service.

The Post-Korean Conflict and Vietnam Era GI Bill was enacted under the Veterans Readjustment Benefits Act of 1966 (P.L. 89-358) and codified in Title 38, U.S.C., Chapter 34. In addition to providing benefits to veterans, it provided benefits to active duty servicemembers to encourage retention in the Armed Forces. The Veterans' Readjustment Assistance Act of 1974 ( P.L. 93-508 ) created a short-lived veterans and dependents education loan program to cover educational costs not provided for under the GI Bill. It was codified in Title 38, U.S.C., Chapter 36 before being repealed in 1981.

Beginning with the Korean Conflict GI Bill, there has been much debate on the level of educational assistance that should be provided to veterans and servicemembers. Some believed that requiring individuals to make a monetary contribution in addition to their military service would increase their sense of responsibility and purpose. Some believed that the educational assistance benefits were a necessary compensation for compulsory service or reimbursement for voluntary service. Some believed that high levels of assistance promote attrition from the military. And some believed that the benefits are a necessary recruitment tool.

Congress allowed the compulsory military draft to expire on June 30, 1973. The educational assistance programs enacted subsequently were designed to encourage recruitment and retention of high-quality military personnel while still providing a considerable benefit to those who choose to leave active duty military service. Since 1973 upon initial enactment of new GI Bills, Congress has generally limited the approved programs of education to a more traditional college education. As the programs mature, other types of education and training such as apprenticeships and flight training are added.

Currently, there are several educational assistance programs available to veterans, servicemembers, and their spouses and children. The oldest of these programs for veterans and servicemembers is the Post-Vietnam Era GI Bill, enacted in 1976. Fewer than 10 individuals are still receiving benefits from this program, which provides educational assistance in direct proportion to contributions deducted from servicemembers' pay while on active duty. The Montgomery GI Bill-Active Duty (MGIB-AD) requires most servicemembers to contribute an established amount, although the eventual benefits are not related to the contribution. The Montgomery GI Bill-Selected Reserve (MGIB-SR) only provides educational assistance to those currently serving in the Selected Reserve. Because reliance on the Reserves and National Guard increased after September 11, 2001, the Reserves Educational Assistance Program (REAP), enacted in 2005, allows reservists to receive an increased educational assistance benefit in comparison to the MGIB-SR after serving on active duty. The Survivors' and Dependents' Educational Assistance (DEA) program, previously War Orphans' Educational Assistance, provides benefits to the spouses and children of servicemembers who, as a result of service, are seriously disabled, die, or are detained. Finally in comparison to the MGIB-AD, the Post-9/11 GI Bill increased the educational assistance benefit for all individuals with active duty service after September 10, 2001, in recognition that the United States has not been at peace since 2001.

The following sections describe the active programs in greater detail, in descending order based on the number of current participants. A description of the inactive programs is provided in the appendices.

Survivors' and Dependents' Educational Assistance Program (DEA)

The Survivors' and Dependents' Educational Assistance Program (DEA) was first established by the War Orphans' Educational Assistance Act of 1956 (P.L. 84-634). The DEA program is codified under Title 38 U.S.C., Chapter 35. The benefit allows eligible individuals to attain the education they would have or maintain the standard of living they would have if the servicemember had not become disabled or delayed, or died as a result of military service.

Eligible Individuals

Educational assistance benefits are available to

the children and surviving spouse of a veteran who died of a service-connected disability; the children of a veteran who died while having a disability evaluated as a total permanent disability resulting from a service-connected disability; the children and spouse of a veteran or servicemember who has a total permanent disability resulting from a service-connected disability; the children and spouse of an active duty servicemember who is, and has been for more than 90 days, listed as missing in action, captured in the line of duty by a hostile force, or forcibly detained or interned in the line of duty by a foreign government or power; and the surviving spouse of a veteran who died while having a disability evaluated as a total permanent disability resulting from a service-connected disability, arising out of active military, naval, or air service.

Children must be under the age of 26 at the time of the above eligibility event. The military service of the person who was disabled or delayed, or died must not have terminated under dishonorable conditions. Children include acknowledged children born out of wedlock, children adopted legally, stepchildren who are members of the eligible individual's household, and children of any marital status. Neither the spouse nor child may receive educational assistance under DEA while in the Armed Forces or if released under dishonorable conditions.

An individual who is eligible for both the Post-9/11 GI Bill Marine Gunnery Sergeant John David Fry Scholarship (Fry Scholarship) and DEA benefits based on the death of the one parent must elect the program from which to receive a benefit. The Fry Scholarship is available to the children of individuals who, on or after September 11, 2001, die in the line of duty while serving on active duty as a member of the Armed Forces.

Eligible Programs of Education, Institutions, and Establishments

The eligible programs of education include a wide variety of types of education and training. The programs include

courses at nonaccredited and accredited educational institution s (see below for the definition) that lead to an educational, vocational, or professional objective, including a certificate or graduate degree; a preparatory course for a test that is required or used for admission to an institution of higher education or a graduate school; licensing or certification tests for a predetermined vocation or profession, provided such tests and the licensing or credentialing organizations or entities that offer such tests are approved; national tests for admission to institutions of higher learning (IHLs) or graduate schools (such as the Scholastic Aptitude Test (SAT)); national tests providing an opportunity for course credit at IHLs (such as the Advanced Placement (AP) exam); cooperative programs; apprenticeship or other on-the-job training programs at a training establishment (see below for the definition); secondary education for those without a high school diploma or its equivalent or in preparation for postsecondary education; specialized vocational courses required because of a mental or physical handicap; and special restorative training.

The eligible programs of education must be approved by a state approving agency (SAA) or the VA.

Educational institutions are defined as

public or private elementary or secondary schools; vocational, correspondence, business, normal, or professional schools; colleges or universities; scientific or technical institutions; other institutions offering education for adults; state-approved alternative teacher certification program providers; private entities that offer courses toward the attainment of a license or certificate generally recognized as necessary for a profession or vocation in a high technology occupation; and qualified providers of entrepreneurship courses.

A training establishment is defined as

an establishment providing apprentice or other on-the-job training; an establishment providing self-employment on-the-job training consisting of full-time training for a period of less than six months that is needed or accepted for purposes of obtaining licensure to engage in a self-employment occupation or required for ownership and operation of a franchise that is the objective of the training; a state board of vocational education; a federal or state apprenticeship registration agency; the sponsor of a program of apprenticeship; and an agency of the federal government authorized to supervise such training.

Benefit Payments

Most DEA participants receive a monthly allowance. Special assistance is available to educationally disadvantaged individuals. Additional payments are available for tutorial assistance and qualified tests.

For those children and spouses who may also be eligible for a VA-administered pension, compensation, or dependency and indemnity compensation, legislation bars some recipients from accepting DEA and pension, compensation, or dependency and indemnity compensation. A spouse, a child under 18 years of age, and a helpless child may receive DEA and pension, compensation, or dependency and indemnity compensation concurrently. Once a child over 18 years of age begins receiving DEA, the child can no longer receive payment or increased rates, or additional amounts of pension, compensation, or dependency and indemnity compensation based on school attendance.

Monthly Allowance

A monthly allowance for subsistence, tuition and fees, supplies, books, and equipment is paid directly to recipients. Maximum monthly benefit amounts may be adjusted at any time by Congress and are adjusted annually according to the consumer price index (all items, U.S. city average). For FY2018, individuals receive up to $1,041.00 monthly for full-time institutional enrollment and reduced amounts for three-quarter-time and half-time institutional enrollment. For FY2019, the maximum for full-time institutional enrollment is $1,224. Individuals enrolled less than half-time at an institution receive no more than actual tuition and fees. For individuals in apprenticeship or on-the-job training, the FY2018 monthly allowance is $760.00, $571.00, $375.00, and $191.00 for the first six months, second six months, third six months, and thereafter, respectively. Individuals receive up to $837.00 monthly for farm cooperative training in FY2018 and reduced amounts for three-quarter-time and half-time pursuit. Only spouses may pursue education exclusively by correspondence, and they receive 55% of the institution's established charges for completed courses.

Participants may choose to receive the monthly allowance in the form of an advance payment or accelerated payment if they meet the following requirements:

Advance Payments

An advance payment is the first partial and first full month of the monthly allowance and is available to individuals who are planning to enroll more than half-time and who have not received educational assistance benefits in 30 days or more. Advance payments are sent to the educational institution for disbursal to the student within 30 days of the start of the academic term.

Accelerated Payments

An accelerated payment of the monthly allowance is available for education leading to employment in a high-technology occupation in a high-technology industry. If the costs of the program of education are more than double the monthly assistance allowance to which the individual would have been entitled, the individual may receive the lessor of 60% of the program's costs for the term or the individual's remaining dollars of entitlement. The individual's entitlement period is reduced in proportion to the amount that the payment is to the monthly assistance allowance to which the individual would have been entitled.

Special Assistance to the Educationally Disadvantaged

Special assistance to the educationally disadvantaged allows individuals who do not have a high school diploma or its equivalent and who are in need of some secondary school preparation in order to pursue a postsecondary education to receive a monthly educational assistance allowance. Benefits do not reduce the basic entitlement period for the first five months. Individuals pursuing a high school diploma may receive the lesser of actual tuition and fees or the full-time institutional monthly rate.

Special Restorative Training

Special restorative training is available to overcome, or reduce, the effects of a manifest physical or mental disability which would handicap a person (other than the spouse of a person delayed) in the pursuit of a program of education. The entitlement period may be extended to accomplish the special restorative training. For FY2018, individuals receive $1,041.00 monthly for full-time special restorative training and may receive an additional amount equal to the amount that the tuition and fees charges calculated on a monthly basis exceed $322.

Tutorial Assistance

An individual is entitled to payment for tutorial assistance, not to exceed $100 monthly and up to a maximum of $1,200 over the course of the entitlement period. The individual must be enrolled at least half-time, and the educational institution must certify as to the necessity and customary nature of the cost. Entitlement is not charged for tutorial assistance under DEA.

Licensing and Certification Test Fees

A fee of up to $2,000 may be reimbursed for each approved licensing or certification test as long as the payment does not exceed the individual's remaining DEA entitlement. The benefit is available regardless of whether the individual passes the test. An individual's entitlement period is reduced one month for each amount paid that is equal to the monthly benefit otherwise payable to such individual.

National Admissions and Course Credit Tests

An individual may receive reimbursement for a national test for admissions to an IHL and a national test providing an opportunity for course credit at an IHL. An individual's entitlement period is reduced one month for each amount paid that is equal to the monthly benefit otherwise payable to such individual.

Benefit Availability and Duration

The number of full-time months (or the equivalent in part-time attendance) of educational and training benefits to which an individual is entitled is limited to

45 months if the individual first enrolls using DEA before August 1, 2018; and 36 months if the individual first enrolls using DEA on or after August 1, 2018.

The time period during which individuals may use their entitlement differs depending on their eligibility. Educational benefits may be paid to the spouse for 10 years from the date of eligibility or from the date of VA notification of eligibility. If the servicemember dies on active duty, or total permanent disability as a result of a service-connected disability is determined within three years of discharge, the spouse may use the benefits for 20 years. Generally, educational benefits may be paid to children after they achieve a high school diploma or its equivalent, or after they reach 18 years of age, but before they reach 26 years of age. Special restorative or specialized vocational training may begin if the child is at least 14 years of age.

Montgomery GI Bill—Selected Reserve (MGIB-SR)

The Montgomery GI Bill-Selected Reserve (MGIB-SR), passed under Section 705 of the same legislation as the MGIB-AD, is a Title 10 U.S.C. DOD program administered by the VA. Each service component of the Selected Reserve is required to establish an educational assistance program to encourage membership in the Selected Reserve: Army, Navy, Air Force, Marine Corps, and Coast Guard Reserve; Army National Guard; and the Air National Guard. The benefit is an incentive to stay in the Reserves and was established in recognition of the fact that many states offer educational assistance to reservists.

Eligible Individuals

The MGIB-SR program is available to individuals serving in the Selected Reserve, including the National Guard, who agree to a six-year service obligation. Educational assistance benefits are available to Selected Reservists who enlist, re-enlist, or extend an enlistment for six years after June 30, 1985, and reserve officers who agree to serve an additional six years above any existing obligation. The reservists also have to complete the initial active duty training period, have a high school diploma or its equivalent, and satisfactorily meet the necessary training requirements of the Selected Reserve. Individuals who fail to satisfactorily meet the training requirements of the Selected Reserve may be ordered to active duty or required to repay some or all of the educational assistance including interest. The service requirement excludes full-time active duty or full-time National Guard duty for the purpose of organizing, administering, recruiting, instructing, or training the reserve components in a position which is included in the end strength.

Eligible Programs of Education, Institutions, and Establishments

MGIB-SR benefits can be used to support students pursuing approved programs of education at a variety of training establishments and educational institutions, including institutions of higher learning (IHLs). The eligible programs of education are

courses at nonaccredited and accredited educational institutions that lead to an educational, vocational, or professional objective, including a certificate or graduate degree; courses required by the Administrator of the Small Business Administration as a condition for obtaining financial assistance under the provisions of Section 7(i)(1) of the Small Business Act (15 U.S.C. 636(i)(1)); licensing or certification tests for a predetermined vocation or profession, provided such tests and the licensing or credentialing organizations or entities that offer such tests are approved; courses offered by a qualified provider of entrepreneurship courses; national tests for admission to IHLs or graduate schools (such as the Scholastic Aptitude Test (SAT)); national tests providing an opportunity for course credit at IHLs (such as the Advanced Placement (AP) exam); national tests that provide an opportunity for course credit at an IHL by evaluating prior learning and knowledge; a preparatory course for a test that is required or used for admission to an institution of higher education or a graduate school; full-time programs of apprentice or other on-the-job training at a training establishment , for individuals not on active duty; cooperative programs for individuals not on active duty; a refresher, remedial, or deficiency course; preparatory or special education or training courses necessary to enable the individual to pursue another approved program of education; and a course for which the individual is receiving Tuition Assistance from DOD (see " Tuition Assistance "Top-Up" Program ").

Benefit Payments

Most MGIB-SR participants receive a monthly allowance. Additional payments are available for certain purposes, and the monthly allowance may be increased under certain circumstances (see Table 2 ).

Monthly Allowance

Effective October 1, 2017, reservists receive up to $375.00 monthly for full-time enrollment and a reduced amount for three-quarter-time, half-time, and less-than-half-time enrollment. Maximum monthly benefit amounts may be adjusted at any time by Congress and are adjusted annually according to the consumer price index for all urban consumers (CPI-U). Individuals enrolled less-than-half-time who are also eligible for DOD tuition assistance cannot receive MGIB-SR benefits. For an individual in apprenticeship or on-the-job training, the monthly allowance is 75%, 55%, and 35% of the monthly benefit otherwise payable to that individual for the first six months, second six months, and thereafter, respectively. Individuals pursuing education exclusively by correspondence receive 55% of the institution's established charges for completed courses, and individuals pursuing education consisting exclusively of flight training receive 60% of the institution's established charges for completed courses. MGIB-SR participants, like DEA participants, may choose to receive the monthly allowance in the form of an advance payment or accelerated payment.

Tuition Assistance "Top-Up" Program

The Tuition Assistance "Top-Up" program was established under the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 ( P.L. 106-398 ) to promote retention. Through Tuition Assistance (TA) programs, military service branches may pay a certain amount of tuition and expenses for the off-duty education and training of active duty personnel. Under Tuition Assistance Top-Up, MGIB-SR servicemembers who have served for at least two years on active duty and who are approved for TA benefits may elect to receive MGIB-SR benefits to pay for tuition or expenses charges above the amount paid by their military service branch. Top-Up is limited to 36 months of payments. Use of the Top-Up benefit reduces the individuals' MGIB-SR entitlement period at a rate determined by dividing the amount of the Top-Up payment by the individuals' full-time monthly rate.

Tutorial Assistance

An individual is entitled to payment for tutorial assistance, not to exceed $100 monthly and up to a maximum of $1,200 over the course of the entitlement period. The individual must be enrolled at least half-time, and the educational institution must certify as to the necessity and customary nature of the cost. Unlike DEA, the first $600 does not reduce the entitlement period; however, any amount in excess of $600 reduces the individual's entitlement period by one month for each amount paid that is equal to the amount of monthly educational assistance the individual is otherwise eligible to receive for full-time pursuit of a residence course.

Licensing and Certification Test Fees

A fee of up to $2,000 may be reimbursed for each approved licensing or certification test as long as the payment does not exceed the individual's remaining MGIB-SR entitlement. The benefit is available regardless of whether the individual passes the test. An individual's entitlement period is reduced one month for each amount paid that is equal to the monthly benefit otherwise payable to such individual.

National Admissions and Course Credit Tests

Individuals may receive reimbursement for a national test for admission to an IHL, a national test providing an opportunity for course credit at an IHL, and a national test that evaluates prior learning and knowledge and provides an opportunity for course credit at an IHL. An individual's entitlement period is reduced one month for each amount paid that is equal to the monthly benefit otherwise payable to such individual.

Supplemental Assistance

Military service branches may use supplemental assistance for additional years of service and supplemental assistance for critical skills (Kickers) to recruit and retain highly capable individuals in the Armed Forces. The promised and expected benefit amount is deposited into the DOD Educational Benefits Trust Fund until the individuals take advantage of the benefit, at which time the benefit amount is transferred to the VA for payment. The supplemental assistance, up to $350, is added to the individuals' monthly housing allowance. The amount may be reduced in proportion to the enrollment rate and the type of training.

Supplemental assistance for additional years of service may be offered to either an individual in the active component who agrees to remain on active duty for at least five additional continuous years, or to an individual in the Selected Reserve who agrees to serve at least two additional consecutive years on active duty and at least four additional consecutive years in the Selected Reserve. Supplemental assistance for critical skills may be offered either to recruit an enlistee with critical skills into the regular Armed Forces or to gain agreement from an individual with critical skills to serve in the Selected Reserve after separating honorably from the regular Armed Forces. A critical skill is a skill or specialty in which there is a critical shortage or for which it is difficult to recruit or, in the case of critical units, retain personnel.

Benefit Availability and Duration

Because the obligatory service of six years is the same for all reservists, the duration of benefits under MGIB-SR is the same for all reservists—36 months (or the equivalent for part-time educational assistance).

In general, no educational benefits can be paid

for individuals whose entitlement was established from October 1, 1992, to June 29, 2008, the earlier of 14 years after establishing eligibility or separation from the Selected Reserve; or for individuals whose entitlement was established after June 29, 2008, after separation from the Selected Reserve.

There are several exceptions to the availability period. Educational assistance may be extended beyond separation if the individual is prevented from pursuing a program of education for involuntary reasons such as being called to qualifying active duty service or being involuntarily separated for a disability that was not the result of the individual's own willful misconduct. If the availability period ends in the middle of an academic term or course, the availability period may be extended to allow completion of the term or course.

Transferability to Dependents

Each DOD service branch is authorized to allow eligible individuals to transfer their MGIB-SR educational assistance benefits to family members, but no branch currently offers such a program.

Montgomery GI Bill—Active Duty (MGIB-AD)

House hearings examining the possible need for a new GI Bill in the early 1980s focused on the difficulties the military was experiencing in recruiting and retaining a highly qualified all-volunteer force: active duty, Reserves, and National Guard. Although recruiting problems were not uniformly distributed by branch, rank, grade, or military occupational specialty (MOS), some suggested reinstating the draft. DOD was concerned about the high cost of recruiting and training new servicemembers and the loss of experience and expertise when servicemembers leave the service. Some witnesses argued for the elimination of the servicemember's monetary contribution toward educational benefits because retention rates were not appreciably increased by the prior GI Bill, the Post-Vietnam Era Veterans' Educational Assistance Program (VEAP), which required a contribution from servicemembers. Only 20%-25% of new recruits contributed to VEAP, and 40% had disenrolled from the program to recoup their contribution, which equaled 5% to 20% of the after-tax pay for some enlisted members. Despite a strong desire to increase retention by allowing universal transfer of dollars of entitlement and the entitlement period to spouses and children after 10 years of service, such a proposal was deemed too expensive.

The Montgomery GI Bill-Active Duty (MGIB-AD)—originally called the All-Volunteer Force Educational Assistance Program—was initially enacted as Title VII of the Department of Defense Authorization Act, 1985 ( P.L. 98-525 ), as a three-year pilot program. The program was finally codified in Title 38, U.S.C., Chapter 30. The original purpose of the permanent program was to provide educational readjustment assistance and to aid in the recruitment and retention of highly qualified personnel for both the active and reserve components of the Armed Forces. It was also expected to promote and assist the All-Volunteer Force program and the Total Force Concept of the Armed Forces based upon service on active duty or a combination of service on active duty and in the Selected Reserve, including the National Guard. To ensure the recruitment of highly capable individuals who were more likely to stay in the military, the program requires that all individuals complete a high school diploma, its equivalent, or 12 credit hours of postsecondary education in order to be eligible for benefits.

Eligible Individuals

Educational assistance benefits are available to individuals defined in four categories.

Category 1 individuals entered active-duty for the first time after June 30, 1985, as well as commissioned officers of the Public Health Service (PHS) and the National Oceanic Atmospheric Association (NOAA). Category 1 individuals must meet one of three service requirements. The first requires that individuals serve a minimum of three continuous years on active duty, or two continuous years if the initial obligated period of active duty was less than three years. The second requires that individuals serve a minimum of 30 months on active duty, or 20 months if the initial obligated period of active duty was less than three years, before being discharged with a service-connected disability, hardship, pre-existing condition, certain reductions-in-force, a physical or mental condition that did not result from the individual's own willful misconduct, or for the government's convenience. The third requires that Selected Reservists and National Guard members serve two continuous years of honorable active duty service upon first entry into the military after June 30, 1985, and serve a minimum of four continuous years of service in the Reserves beginning within a year of completing the active duty service. For reservists and National Guard members, the active duty service period includes only duty under Title 10 U.S.C. and certain full-time National Guard duty for the purpose of organizing, administering, recruiting, instructing, or training the National Guard under Title 32 U.S.C. However, individuals who receive an officer's commission after December 31, 1976, following graduation from one of the service academies or following graduation as a Reserve Officer Training Corps (ROTC) scholarship recipient are not eligible. Category 2 individuals had a remaining period of entitlement under the Post-Korean Conflict GI Bill (see Appendix C ) as of December 31, 1989, and were on active duty after June 30, 1985. Category 2 individuals exclude individuals who receive an officer's commission after December 31, 1976, following graduation from one of the service academies or following graduation as a Reserve Officer Training Corps (ROTC) scholarship recipient are not eligible. Category 3 individuals elected MGIB-AD before receiving an involuntary separation, voluntary separation incentive, or special separation benefit. Category 4 individuals are VEAP participants who either had a remaining period of entitlement; were on active duty on October 9, 1996; or elected to transfer to the MGIB-AD by October 9, 1997; and made the requisite $1,200 contribution. VEAP participants who served on active duty from October 9, 1996, through April 1, 2000; elected to transfer to the MGIB-AD by October 31, 2001; and made a $2,700 contribution are also in Category 4. A small group of National Guard members who first served on full-time National Guard active duty under Title 32 U.S.C. between June 30, 1985, and November 29, 1989, were eligible to make the requisite $1,200 contribution during an open period from October 9, 1996, to June 8, 1997.

The active duty service period requirements exclude time assigned to an education or training program similar to those offered to civilians unless assigned by the military full-time, exclude time spent as a cadet or midshipman at one of the service academies, and exclude the initial 12-week period of active duty for training in the National Guard and the Reserves. The active duty service period requirements include time spent organizing, administering, recruiting, instructing, or training the National Guard while on full-time Army National Guard or Air National Guard duty and include time spent at a service academy or preparing to attend a service academy if the individual fails and returns to active duty. Individuals in all categories must have completed a high school diploma, its equivalent, or 12 semester hours in a program of education leading to a standard college degree. Also, all individuals must continue on active duty or in the Reserves, as appropriate; be discharged under fully honorable conditions; be placed on the retired or temporary disability retired list; or be transferred to certain reserve components.

To become eligible for MGIB-AD benefits, Category 1 individuals must not decline the benefit in writing, and must allow the first 12 months of their military pay to be reduced by $100 per month. In certain circumstances, servicemembers who initially declined the benefit were allowed to enroll in the program.

Eligible Programs of Education, Institutions, and Establishments

The eligible programs of education, educational institutions, and training establishments are the same as under the MGIB-SR.

Benefit Payments

Most MGIB-AD participants receive a monthly allowance. Additional payments are available depending on decisions made while serving in the Armed Forces and for tutorial assistance, licensing or certification tests, national tests, supplemental assistance, former Post-Korean Conflict GI Bill-eligible participants, and the Buy-Up program (see the MGIB-SR section).

In-State Tuition and Fee Charges

Covered MGIB-AD participants must be charged no more than in-state tuition and fees. Covered participants are members of the Armed Forces on active duty for a period of more than 30 days in the state in which the public institution of higher education is located, and such members' spouses and dependent children. In addition, covered participants attending public IHLs are MGIB-AD-eligible veterans who were discharged or released from an active duty service period of not fewer than 90 days within three years of the date of enrollment. The public IHL may require the covered participant to demonstrate intent to establish residency, by a means other than physical presence, in order to qualify for in-state tuition. As long as a covered participant remains continuously enrolled at the institution, the participant remains eligible for in-state tuition and fee charges.

Monthly Allowance

The MGIB-AD monthly allowance is intended to support subsistence, tuition and fees, supplies, books, and equipment. Effective October 1, 2017, veterans may receive up to $1,928.00 monthly for full-time training. A reduced allowance is provided for less than full-time training and for those who served less than three continuous years on active duty. The monthly allowance is paid directly to recipients. Unless Congress changes the amount, the maximum monthly benefit amount is adjusted annually based on the annual percentage increase in the average cost of undergraduate tuition in the United States, as determined by the National Center for Education Statistics (NCES). Individuals on active duty and those training less than half-time receive actual tuition and fees or the monthly allowance, whichever is less. For an individual in apprenticeship or on-the-job training, the monthly allowance is 75%, 55%, and 35% of the monthly benefit otherwise payable to that individual for the first six months, second six months, and thereafter, respectively. Individuals in cooperative training receive 80% of the monthly allowance. Individuals pursuing education exclusively by correspondence receive 55% of the institution's established charges for completed courses, and individuals pursuing education consisting exclusively of flight training receive 60% of the institution's established charges for completed courses. MGIB-AD participants, like DEA participants, may choose to receive the monthly allowance in the form of an advance payment or accelerated payment.

Supplemental Assistance

For MGIB-AD, the supplemental assistance may be no more than $950.

Increase for Post-Korean Conflict GI Bill-Eligible Participants

Category 2 individuals receive an increase to the monthly allowance, depending on the type of training, rate of pursuit, and number of dependents, for as many months as the individual has remaining Post-Korean Conflict GI Bill entitlement. For example, effective October 1, 2017, an individual in full-time institutional training with two dependents may receive a total monthly allowance of $2,183.00.

Buy Up Program

Servicemembers may also contribute up to an additional $600 while on active duty in $20 monthly increments and receive up to an additional $5 monthly for each $20 contributed over the life of their entitlement period under what is known as the $600 Buy Up Program. In other words, each dollar contributed by an individual is matched by the federal government with an additional $9 in benefits. This benefit could equal up to $5,400 over 36 months for a $600 investment.

Benefit Availability and Duration

To discourage experienced personnel from leaving the military, servicemembers are eligible to receive educational benefits while serving on active duty, but only after serving two continuous years on active duty.

For members of the active component, no educational benefits under the MGIB-AD can be paid after the delimiting date─10 years after discharge or release from active duty. For members of the Selected Reserve, no educational benefits under the MGIB-AD can be paid more than 10 years after completing the required four-year Selected Reserve duty.

Most individuals are entitled to 36 months (or the equivalent in part-time attendance) of educational assistance. Category 1 active duty servicemembers discharged or released (other than for the convenience of the government) before serving the minimum two or three years of active duty service are entitled to educational benefits for a period equal to one month for each month of active duty service, but no more than 36 months. Reservists are entitled to one month for each month of active duty service and one month for each four months served in the Selected Reserves, but no more than 36 months.

MGIB-AD Death Benefit

The MGIB-AD death benefit is available to certain beneficiaries of an MGIB-AD-eligible individual and to certain beneficiaries of an individual who served after June 30, 1985, and who died for service-connected reasons while on active duty or who died for service-connected reasons within one year of discharge or release from active duty. The beneficiaries are the beneficiaries of the individual's Servicemembers' Group Life Insurance policy. If the life insurance beneficiaries are no longer living, the death benefit is paid to the surviving spouse. If the spouse is no longer living, the death benefit is split between the individual's surviving children. If the children are no longer living, the death benefit is split between the individual's surviving parents. The benefit, up to $1,200, is equal to the amount the servicemember contributed in order to be eligible for the MGIB-AD less the proportion of entitlement used by the servicemember.

Transferability to Dependents

Each DOD service branch is authorized to allow eligible individuals to transfer up to 18 months of their MGIB-AD educational assistance benefits to family members. Both the Army and Air Force offered pilot programs to test how effective transferability could be in increasing the retention of highly qualified, specialized, and experienced servicemembers. Both branches have discontinued the pilots. Therefore, transferability is not currently available to new individuals under the MGIB-AD.

Reserve Educational Assistance Program (REAP)

The Reserve Educational Assistance Program (REAP) was enacted by Section 527 of the Ronald W. Reagan National Defense Authorization Act for FY2005 ( P.L. 108-375 ). The National Defense Authorization Act for Fiscal Year 2016 ( P.L. 114-92 ) effectively ends REAP on November 25, 2019. It is codified in Title 10 U.S.C., Chapter 1607. Passage of the program was a direct reaction to the increased number and length of calls to active duty of reservists that occurred as a result of operations in Afghanistan and Iraq. Reservists must serve at least two continuous years on active duty to receive the MGIB-AD, and the benefits under the MGIB-SR are lower than under the MGIB-AD. REAP sought to provide reservists with benefits proportional to their active duty service and commensurate with the benefits of the regular Armed Forces.

The purpose is to provide educational assistance to reserve components called to active duty in response to a declared call to war or national emergency. REAP, like the MGIB-SR, is a DOD program administered by the VA. Each DOD branch is required to establish and maintain a program. The program is permanently authorized.

Eligible Individuals

Educational assistance benefits are available to reservists who have served at least 90 consecutive days in qualifying duty authorization after September 10, 2001, and before November 25, 2015. A qualifying duty authorization for reservists is active duty in support of a contingency operation. For Army National Guard or Air National Guard members, a qualifying duty authorization is Section 502(f) of Title 32 U.S.C. when authorized by the President or Secretary of Defense for the purpose of responding to a national emergency declared by the President and supported by federal funds. The 90-day service requirement is waived for individuals released from duty because of an injury, illness, or disease incurred or aggravated in the line of duty. Increased benefits are available to individuals who serve at least one continuous year, two continuous years, or three aggregate years in a qualifying duty authorization.

Eligible Programs of Education, Institutions, and Establishments

The eligible programs of education, educational institutions, and training establishments are the same as under the MGIB-SR.

Benefit Payments

Most REAP participants receive a monthly allowance. Similar to the MGIB-AD, additional payments are available for certain purposes, and the monthly allowance may be increased under certain circumstances (see Table 2 ).

The monthly educational allowance for REAP is a percentage of the allowance provided under the MGIB-AD. Reservists who serve on active duty for at least two continuous years or three aggregate years may receive 80% of the maximum MGIB-AD allowance for that type of education or training, and those serving at least one continuous year may receive 60%. Reservists serving at least 90 consecutive days or released from active duty for an injury, illness, or disease incurred or aggravated as a result of active duty service before serving 90 consecutive days may receive 40% of the maximum MGIB-AD allowance for that type of education or training. REAP participants, like DEA participants, may choose to receive the monthly allowance in the form of an advance payment or accelerated payment.

Benefit Availability and Duration

Most individuals are entitled to educational benefits for a period of up to 36 months (or the equivalent in part-time educational assistance), regardless of the active duty eligibility period.

In general, no educational benefits can be paid after November 25, 2015. However, individuals who received REAP benefits for the enrollment period immediately preceding November 25, 2015, may receive benefits through November 25, 2019, or until exhausting their entitlement. In addition, individuals who lost REAP eligibility as a result of the November 25, 2015, sunset date may be eligible for the Post-9/11 GI Bill by crediting REAP-qualifying active duty service toward Post-9/11 GI Bill eligibility, in accordance with VA procedures.

In addition, no educational benefits can be paid after separation from the reserves. Individuals called or ordered to active service while serving in the Selected Reserve must remain in the Selected Reserve. Individuals called or ordered to active service while a member of the Ready Reserve, excluding the Selected Reserve, must remain in the Ready Reserve. The Ready Reserve is one of the three major reserve components along with the Standby Reserve and Retired Reserve. The Ready Reserve is the primary manpower pool of the Reserves. Ready Reservists will usually be called to active duty before the other components and include Selected Reservists. However, individuals who complete the 90-day service requirement and who complete their service contract under honorable conditions remain eligible for benefits for 10 years after separation from the Selected Reserve (separation from other reserve types does not qualify). Also, individuals separated from the Ready Reserve because of a disability which was not the result of the individual's own willful misconduct have 10 years from becoming eligible for benefits before the benefits expire.

Transferability to Dependents

Each service branch is authorized to allow eligible individuals to transfer their REAP educational assistance benefits to family members, but no branch currently offers such a program.

Post-Vietnam Era Veterans Educational Assistance Program (VEAP)

The Post-Vietnam Era Veterans' Educational Assistance Program (VEAP) was established under Title IV of the Veterans' Education and Employment Assistance Act of 1976 ( P.L. 94-502 ) and codified in Title 38, U.S.C., Chapter 32. The program was established to make education affordable and recruit qualified servicemembers. VEAP was designed as a recruitment incentive for the Armed Forces during peacetime.

Eligible Individuals

VEAP was the first GI Bill to make educational benefits available to both active duty and reserve components simultaneously from the outset. Under VEAP, educational assistance benefits are available to individuals who entered active duty on or after January 1, 1977, and before July 1, 1985. To be eligible for benefits, veterans must have been discharged or released other than dishonorably after meeting the active duty service requirement, or they must have been discharged or released for a service-connected disability. The active duty service requirement was a minimum of 24 continuous months or the obligated period of active duty for individuals who enlist in a regular component of the Armed Forces after September 7, 1980, or who enter on active duty after October 16, 1981, or a minimum of 181 days of continuous service for other individuals. Servicemembers remaining in service must have completed their first obligated period of active duty or six years of active duty, whichever is less. The 180-day active duty service period excludes time assigned to a civilian institution for an education or training program similar to those offered to civilians, excludes time spent as a cadet or midshipman at one of the service academies, and excludes periods of receiving an allowance from the College First Program (10 U.S.C. §511(d)) for a delayed enlistment in the Army National Guard or the Air National Guard or while a member of the Reserves.

Individuals eligible for the prior GI Bill, the Post Korean Conflict GI Bill (see Appendix C ), are not eligible under VEAP, with one exception. Members of the National Guard or Reserves who participated in the College First Program and who served at least one consecutive year of active duty after completing the period of active duty for training are eligible. The individual must make an irrevocable decision to receive benefits under VEAP.

Since the benefit was established for an all-volunteer force serving during peacetime, it was deemed appropriate to require participants to contribute to their educational fund during their period of service in the military. Program participants had to agree to monthly pay deductions of at least $25, but not more than $100, during the initial tour of obligated service or six years of active duty service for a total contribution of up to $2,700. After making at least 12 contributions, individuals could withdraw from the program, receiving their contributions in return and making them ineligible for program benefits.

Eligible Programs of Education, Institutions, and Establishments

The eligible programs of education are

courses which lead to the attainment of a predetermined educational, vocational, or professional objective or objectives if related to the same career (this includes traditional undergraduate and graduate programs); courses which lead to a high school diploma; courses required by the Administrator of the Small Business Administration as a condition to obtaining financial assistance under the provisions of Section 7(i)(1) of the Small Business Act (15 U.S.C. 636(i)(1)); licensing or certification tests for a predetermined vocation or profession, provided such tests and the licensing or credentialing organizations or entities that offer such tests are approved; courses offered by a qualified provider of entrepreneurship courses; national tests for admission to institutions of higher learning or graduate schools (such as the Scholastic Aptitude Test (SAT)); national tests providing an opportunity for course credit at institutions of higher learning (such as the Advanced Placement (AP) exam); full-time programs of apprentice or other on-the-job training; and cooperative programs for individuals not on active duty.

Benefit Payments

Most VEAP participants receive a monthly allowance. Similar to the MGIB-SR, additional payments are available for certain purposes, and the monthly allowance may be increased under certain circumstances (see Table 2 ).

The VEAP benefit consists of a monthly allowance for subsistence, tuition and fees, supplies, books, and equipment paid directly to recipients while enrolled in training or a program of education. Individuals are entitled to three times their contribution plus any DOD contributions. The maximum monthly basic educational benefit may not exceed $300. The entitlement period of individuals taking correspondence courses is reduced one month for each month of assistance regardless of the rate of attendance. Individuals incarcerated for a felony conviction in a federal, state, local, or other penal institution or correctional facility may only receive an allowance to cover actual tuition and fees and necessary supplies, books, and equipment. Individuals in a program of education consisting exclusively of flight training receive 60% of the program's established charges. For an individual in apprentice or on-the-job training, the monthly allowance is 75%, 55%, and 35% of the monthly benefit otherwise payable to that individual for the first six months, second six months, and thereafter, respectively.

Benefit Availability and Duration of Use

Veterans and servicemembers must use their educational assistance benefits within 10 years of discharge or release from active duty. Under VEAP, individuals are entitled to a maximum of 36 months (or the equivalent for part-time attendance) or the number of months in which contributions were made, whichever is less.

Combination and Comparison of GI Bill Programs

In general, veterans and servicemembers, many of whom will be eligible for more than one program, can combine benefit programs administered by the VA to receive no more than 48 months of educational benefits. However, a servicemember who is eligible for two or more of the GI Bill programs: VEAP, MGIB-AD, MGIB-SR, REAP, or the Post-9/11 GI Bill, based on the same period of military service must elect the program to which such service is to be credited. In addition, benefits under more than one program cannot be received concurrently.

DEA-eligible individuals can combine benefits with other VA administered educational assistance programs to receive up to 81 months of education benefits, but the eligibility events cannot be duplicative.

Table 2 provides a summary of some of the key characteristics of the active programs. Although the Post-9/11 GI Bill is not described in this report, the characteristics have been included in the table for the reader's reference. The Post-9/11 GI Bill is described in CRS Report R42755, The Post-9/11 Veterans' Educational Assistance Act of 2008 (Post-9/11 GI Bill): A Primer .

Related Department of Veterans Affairs Programs

High Technology Pilot Program

The Harry W. Colmery Veterans Educational Assistance Act of 2017 ( P.L. 115-48 ) requires the VA carry out a five-year High Technology Pilot Program. The program is intended to provide GI Bill-eligible veterans the opportunity to enroll in high technology programs of education that the Secretary determines provide training or skills sought by employers in a relevant field or industry. The VA is authorized to expend up to $15 million annually for the pilot program.

Under the program, the VA contracts with qualified providers to provide high technology programs to GI Bill-eligible veterans. High technology programs are nondegree programs of education that provide qualifying instruction and that are offered by qualified providers. Qualifying instruction is computer programming, computer software, media application, data processing, or information sciences. Qualified providers are entities that are not IHLs, have been in operation for at least two years, have successfully provided the high technology program for at least one year, and meet VA-developed approval criteria. Qualified providers that offer tuition reimbursement to students who do not find meaningful employment in suitable fields within 180 days of program completion receive preference in contracting.

The VA reimburses the qualified provider for the cost of tuition and other fees for the high technology program. The VA pays 25% of the cost upon enrollment of an eligible veteran, 25% upon program completion by an eligible veteran, and 50% upon employment of an eligible veteran-completer in a suitable field.

GI Bill-eligible veterans enrolled full-time in the pilot program receive a monthly housing allowance. The housing allowance is based on the DOD-determined monthly basic allowance for housing (BAH) for a member of the Armed Forces with dependents in pay grade E-5 (hereinafter referred to as the E-5 with dependents BAH ). For individuals not enrolled through distance learning, the monthly housing allowance is the E-5 with dependents BAH for the area in which the qualified provider is located, reduced according to the individual's enrollment rate (rounded to the nearest multiple of 10). For individuals enrolled through distance learning, the monthly housing allowance is 50% of the E-5 with dependents BAH for the area in which the qualified provider is located, reduced according to the individual's enrollment rate (rounded to the nearest multiple of 10).

Veterans Counseling

For the most part, individuals eligible for or receiving educational assistance under the VEAP, MGIBs, REAP, DEA, or Post-9/11 GI Bill may request educational and vocational counseling from the VA. The counseling may include, but is not limited to, assistance selecting a program of education, resolving personal problems, and resolving academic difficulties. Counseling was provided to all recipients of educational assistance until 1972. Counseling is still required under DEA for a child who may require specialized vocational training or special restorative training, or a child who is under 18 years of age and has not completed high school. It is also required for a spouse who desires specialized vocational training. Counseling is still required under all of the programs if the individual is rated as incompetent.

VetSuccess on Campus

In an effort to ameliorate the transition from military service to civilian education and ensure GI Bill participants achieve their educational and employment objectives, the VA initiated the VetSuccess on Campus program in June 2009. Services are targeted to servicemembers, veterans, and their family members who use VA education programs. Each college campus participating in the VetSuccess on Campus program is assigned a full-time VA Vocational Rehabilitation and Employment Program (see program description in subsequent section) counselor and a part-time VA outreach coordinator. The coordinator and counselor ensure veterans are aware of the services offered, which include career and academic counseling, adjustment counseling, vocational testing, awareness of and access to VA benefits and services, referral services, and other services.

The VA chooses campuses to participate that have high veteran populations. Participating campuses enter into an agreement with the VA to work directly with the on-campus VA representatives to coordinate service delivery. Ninety-four colleges and universities have been participating since 2014.

Vocational Rehabilitation and Employment Program (VR&E)

Vocational Rehabilitation and Employment (VR&E) is an entitlement program administered by the VA that provides job training and other employment-related services to veterans with service-connected disabilities. To be entitled to VR&E services, a veteran must be found to have either (1) a 20% service-connected disability and an employment handicap, or (2) a 10% service-connected disability and a serious employment handicap. After veterans are found to be entitled to VR&E benefits, a program counselor helps the veteran identify a suitable employment goal and determines what services (including postsecondary education) will be necessary to achieve that goal.

Services and benefits under the VR&E programs may include (but are not limited to) tuition, fees, books, supplies, tutorial assistance, counseling, and other services necessary to meet the veteran's employment objective. VR&E beneficiaries may also receive a subsistence allowance while they are enrolled in the program. As of October 1, 2015, the maximum monthly subsistence allowance for a VR&E beneficiary enrolled full-time at an institution of higher learning with two dependents is $885.00. The subsistence allowance varies by enrollment status and whether or not the veteran has dependents. Veterans who are eligible for the Post-9/11 GI Bill may elect to receive the Post-9/11 GI Bill housing allowance in lieu of the VR&E subsistence allowance. Typically, VR&E benefits are limited to 48 months, though entitled veterans may receive benefits longer under certain circumstances.

As discussed earlier, statutory provisions generally prohibit individuals from receiving benefits under more than one program concurrently; however, there is an exception for VR&E. Veterans who are eligible for VR&E as well as MGIB-AD may begin a rehabilitation program under VR&E and may subsequently elect to receive MGIB-AD payments while enrolled in a program that meets the MGIB-AD criteria. VR&E beneficiaries who subsequently elect to receive MGIB-AD payments may not receive tuition, fees, books, supplies, handling charges, licensing fees, equipment, or individualized tutorial assistance through the VR&E program. They are also ineligible for a subsistence allowance or loans under the VR&E program. VR&E participants who elect to receive MGIB-AD payments remain eligible for educational, vocational, psychological, employment, and personal adjustment counseling and other disability-related benefits and services under the VR&E program.

A veteran who is also eligible to receive disability compensation as a result of hospital treatment or observation may not receive the total VR&E or MGIB-AD allowance and disability compensation in excess of the greater of 100% disability compensation or the sum of the VR&E or MGIB-AD allowance and the amount of disability compensation that would be paid to the veteran if he or she was not receiving compensation at such a rate as the result of that hospital treatment or observation.

Veterans Work Study Program

The Veterans Work Study Program allows VEAP, MGIB-AD, MGIB-SR, DEA, Post-9/11 GI Bill, and VR&E participants to receive additional financial assistance through the VA in exchange for employment. The program is codified in Title 38 U.S.C. Section 3485. Veterans and reservists in the VEAP, MGIBs, Post-9/11 GI Bill, and VR&E who are enrolled at least three-quarter-time may take advantage of the work-study program. Individuals in the DEA who are enrolled at least three-quarter-time in the United States and are not pursuing a program of special restorative training may also take advantage of the work-study program. Although veterans with at least a 30% disability rating receive priority in the selection of program participants, the VA also considers the individuals' need for additional educational assistance, whether the individuals have the necessary access to transportation to and from the work site, the individuals' motivation, and the individuals' compatibility with the available work assignments.

An individual will enter into an agreement with the VA to perform a certain number of hours of work in exchange for compensation. Eligible individuals may work for up to 25 hours times the number of weeks contained in an enrollment period. They receive the greater of the state's minimum wage rate or the national minimum wage rate under Section 6(a) of the Fair Labor Standards Act of 1938 (Title 29 U.S.C. §206(a)). Eligible work-study activities are

VA outreach services programs under the supervision of a VA employee; outreach services to servicemembers and veterans furnished by employees of a state approving agency; preparation and processing of necessary papers and other documents at educational institutions or regional offices or facilities of the VA; hospital and domiciliary care and medical treatment for veterans at VA facilities and state homes paid for by the VA; any other activity of the VA as the Secretary determines appropriate; activities related to the administration of MGIB-SR and REAP at DOD, Coast Guard, or National Guard facilities (for reservists only); activities related to the administration of a national cemetery or a state veterans' cemetery; activities of a state veterans agency related to providing assistance to veterans in obtaining state and VA benefits; a position working in a cooperative program carried out jointly by the VA and an IHL; and any other veterans-related position in an IHL.

Special provisions of the work-study program allow individuals to receive a lump sum advance payment after signing a contract to complete a certain number of work-study hours. The advance may be 40% of the expected allowance or 50 hours of earnings at the minimum wage rate, whichever is lower.

Participation and Cost

Participation in VEAP, MGIBs, REAP, Post-9/11 GI Bill, and DEA is exhibited in Figure 1 . The following are among the highlights of the figure:

Combined participation in VEAP, MGIBs, REAP, Post-9/11 GI Bill, and DEA increased 48% from 541,439 in FY2008 to 800,369 in FY2010, due in large part to the Post-9/11 GI Bill. Participation in the Post-9/11 GI Bill continues to grow, from approximately 370,000 in FY2010, the first full year of implementation, to almost 800,000 in each of FY2014-FY2016. The number of participants in the MGIB-AD was moderately stable from 1994 through 2001 at around 290,000 participants; increased from 2002 through 2008—peaking at 354,284 participants; and began to decline in 2009 following the implementation of the Post-9/11 GI Bill to fewer than 50,000 in FY2016. Participation in VEAP peaked in 1988 at 88,964 and is slowly declining as the eligible individuals become older, disenroll, or transfer to other programs. The VA projects that participation will end in 2025. MGIB-SR participation exceeded 100,000 from 1990 through 1994, fell to less than 90,000 annually from 2001 through 2005, and fell again to under 70,000 from 2006 through 2016. Participation cycles in DEA mirror major conflicts with greater participation around the Vietnam Conflict, 1978-1982, and around the conflicts in Iraq and Afghanistan, 2004-2016.

Table 3 compares participation and cost of selected programs administered by the VA. The program with the largest participation and obligations in FY2016 was the Post-9/11 GI Bill, with over 790,000 participants and total obligations of over $11 billion. The program with the smallest participation was VEAP, with eight participants and total obligations of $14,000. The MGIB-AD program provided benefits averaging $7,717 per participant compared to $14,661 for the Post-9/11 GI Bill.

Appendix A. Educational Assistance Under the Original GI Bill of Rights

The original GI Bill, the Servicemen's Readjustment Act of 1944 (P.L. 78-346), was intended to help veterans returning from World War II (WWII). The original GI Bill provided unprecedented benefits: funds to the VA to build and administer additional hospital facilities; extension of vocational rehabilitation and employment services; educational assistance to non-disabled veterans; loans for the purchase or construction of homes, farms, and business property at advantageous terms to veterans; employment services to returning veterans; and unemployment benefits to veterans. The purpose of the educational assistance program was to avoid high levels of unemployment as had occurred following World War I, to help servicemembers readjust to civilian life, and to afford returning veterans an opportunity to receive the education and training missed while providing compulsory service in the military. From December 1, 1941, through December 31, 1946, 16.1 million personnel served in the U.S. Armed Forces in WWII. The U.S. population in 1946 is estimated at 141,388,566.

Eligible Individuals

Educational assistance benefits were available to all veterans who served on active duty in the military or naval service after September 16, 1940, and before the termination of WWII hostilities (December 31, 1946). Eligible veterans must have been discharged other than dishonorably and have served a minimum of 90 days or have been discharged or released for a service-incurred injury or disability. The 90-day service period excluded time spent completing the Army specialized training program or Navy college training program and excluded time spent as a cadet or midshipman at one of the service academies.

Benefit Availability and Duration of Use

Eligible veterans were required to begin an education program within two years of discharge or release or within two years of the end of WWII, whichever was later. The start date was later extended by P.L. 79-268, enacted in 1945, to four years after discharge or release or December 31, 1950, whichever was later. Veterans were entitled to at least one year of education (or the equivalent for continuous part-time study) or the length of the chosen education program if that program was shorter than 12 months. Upon satisfactory completion of the first year (or the period of a shorter education program), veterans whose education had been interrupted upon entering military service were entitled to educational benefits for at least as long as they served after September 16, 1940, and before the end of WWII, but not more than four years. The restriction, which provided no more than one year of educational benefits to certain veterans, was later removed to provide the same benefits to all veterans. By law, no educational benefits under the original GI Bill could be paid seven years after the end of WWII, or July 25, 1956.

Eligible Programs of Education, Institutions, and Establishments

Initially, the eligible educational institutions were almost any institutions providing education: public or private elementary, secondary, and other schools furnishing education for adults; business schools; scientific and technical institutions; colleges and universities; vocational schools; junior colleges; teachers' colleges; professional schools; and other educational institutions. The eligible training establishments were businesses or other establishments offering apprentice or on-the-job training. Because the quality of some training programs was poor, laws were enacted establishing approval criteria for training institutions and for-profit schools. Stricter criteria were prescribed for on-the-job and on-the-farm training programs and vocational schools. Also, avocational and recreational training programs, such as nonvocational flight training, were eventually prohibited.

Benefit Payments

Under the GI Bill, the VA paid up to $500 a year directly to an educational institution for tuition, books, fees, and other training costs for each enrolled veteran. Institutions providing apprentice or on-the-job training did not receive this payment. Veterans were required to maintain satisfactory conduct or progress in their chosen program of education. To increase flexibility, the program was revised by P.L. 79-268, enacted in 1945, to allow veterans to receive higher annual tuition and fees payments (accelerated payments) for a corresponding reduction in the period of entitlement.

The VA also paid up to $50 monthly as a subsistence allowance to single veterans, and $75 monthly to veterans with one or more dependents. The monthly payment was eventually increased to $75 monthly for single veterans, $105 monthly for veterans with one dependent, and $120 monthly for veterans with more than one dependent by P.L. 80-411, enacted in 1948. Veterans who attended part-time or received compensation for apprentice or on-the-job training received a lower subsistence allowance. In 1945, P.L. 79-268 specifically authorized tuition and fees payments for correspondence courses but disallowed the subsistence allowance. Later, P.L. 79-679, enacted in 1946, limited total earnings for veterans receiving compensation for apprentice or on-the-job training. Veterans were limited to a total monthly employment compensation plus VA subsistence allowance of no more than $175 for single veterans and $200 for veterans with dependents. This was increased to $210 for single veterans, $270 for veterans with one dependent, and $290 for veterans with more than one dependent by P.L. 80-512, enacted in 1948.

Lessons Learned

Some important lessons were learned in the implementation of the original GI Bill, and as the result of several studies. Paying tuition and fees directly to educational institutions led to overpayments and excessive payments to for-profit vocational training programs in particular. Some institutions were created solely to profit from the program. It was necessary to define and establish standards for the eligible training establishments and educational institutions to ensure adequate quality of the educational programs and to define and remunerate responsibility for evaluating them. There was considerable objection to the use of the GI Bill for avocational and recreational purposes since one of the stated purposes of the program was workforce preparation. The third mechanism for ensuring proper use of the GI Bill educational assistance was the importance placed on veterans' identifying and adhering to an educational objective. Finally, it was necessary to increase the benefits as the cost of living and education increased.

Participation and Costs

In the end, the nation spent $14.5 billion ($114.7 billion in 2008 inflation adjusted dollars) to provide education and training to 7.8 million WWII veterans ( Table A -1 ). The total expenditure per participant was $1,859 ($14,700 in 2008 inflation adjusted dollars).

Appendix B. Korean Conflict GI Bill

The Veterans' Readjustment Assistance Act of 1952 (P.L. 82-550, also known as the Korean Conflict GI Bill) was authorized to help veterans returning from the Korean Conflict adjust to civilian life. The program was codified in Title 38 U.S.C., Chapter 33, before its subsequent repeal. The expected number of Korean Conflict veterans─less than 6 million (or 4%) of a national population of 157,552,740 in 1952 ─was lower than the number of WWII veterans, reducing the risk of high national unemployment in comparison to the post-WWI and post-WWII eras. The Korean Conflict GI Bill was intended to provide veterans the education forestalled by compulsory service and provide equitable benefits, as had been afforded the WWII veterans. The bill was also written in an effort to avoid many problems encountered in the implementation of the original GI Bill.

Eligible Individuals

Veteran eligibility was essentially the same for the Korean GI Bill as the original GI Bill except that only those members of the Armed Forces who served on active duty during the Korean Conflict (on or after June 27, 1950, and before the termination of hostilities on January 31, 1955) were eligible. Veterans still had to be discharged other than dishonorably and serve a minimum of 90 days, or be discharged or released for a service-incurred injury or disability. The 90-day service period excluded time assigned to an education or training program similar to those offered to civilians and excluded time spent as a cadet or midshipman at one of the service academies.

Benefit Availability and Duration of Use

While WWII veterans were afforded up to four years of education benefits, Korean Conflict veterans were limited to 36 months, which is substantially equivalent for students attending traditional postsecondary schools with summers off. Eligible veterans were required to begin an education program within two years (later extended to three years by P.L. 83-610, enacted in 1954) of discharge or release or before August 21, 1954, whichever was later. Veterans were entitled to educational benefits for a period equal to 1½ times the duration of their active duty service between June 27, 1950, and the termination of hostilities, but no more than 36 months. Veterans enrolled entirely in correspondence courses were entitled to educational benefits for a period equal to six times the duration of their active duty service. Veterans could combine benefits with the VR&E program or the original GI Bill to receive up to 48 months of educational benefits. By law, no educational benefits under the Korean Conflict GI Bill could be paid seven years after discharge or release or upon the termination of hostilities, whichever was earlier. This was later extended to eight years after discharge or release or January 31, 1965, by P.L. 84-7, enacted in 1955.

Eligible Programs of Education, Institutions, and Establishments

The list of eligible educational institutions and training establishments did not change from the original GI Bill except that institutions listed on the Attorney General's List of Subversive Organizations were not eligible. States were requested to create state approving agencies (SAAs) to approve educational courses and provide lists of eligible institutions. The VA provided some cost reimbursement of salaries and travel for these state agencies.

To ensure the benefits were used for workforce preparation and to avoid some of the misuse experienced under the original GI Bill, several provisions were added or changed from the original GI Bill. Veterans were required to declare an educational objective or certificate/degree. They were allowed to change their educational objective only once, only if not making satisfactory progress by no fault of misconduct, neglect, or lack of application, and if the new program fit their aptitude or previous education or the new program was a normal progression from the existing program. The legislation specifically prohibited veterans from receiving benefits for avocational and recreational courses in bartending, dance, photography, music, sports, and personal development.

The criteria and standards for approving training establishments and educational institutions were bolstered in comparison to the original GI Bill. As originally enacted, the Korean GI Bill disapproved new enrollments of veterans in non-accredited courses below the college level offered by a private for-profit or nonprofit educational institution if more than 85% of the enrolled students had all or part of their educational charges paid to or for them by the educational institution, VR&E, or the original GI Bill. The act included an additional provision disapproving the enrollment of veterans in any course that was offered by an educational institution that had not been in operation for at least two years unless either the educational institution was public, the educational institution had been in operation for more than two years and the course was similar to instruction previously given, or the institution relocated locally and had offered the course for more than two years. Amendments to the original GI Bill establishing stringent standards for apprentice, on-the-job, and on-the-farm training were expanded under the Korean Conflict GI Bill to include courses already approved by nationally recognized accrediting agencies and certain courses without accreditation.

Benefit Payments

The Korean Conflict GI Bill made payments only to veterans, as opposed to the payments made to veterans and educational institutions under the original GI Bill. The U.S. House of Representatives' Select Committee to Investigate Educational, Training, and Loan Guaranty Programs under the GI Bill (1950-1952) indicated that direct payments to educational institutions led to abuse. A 1956 house report determined that because the original GI Bill was generous, some veterans used the benefits for income rather than to achieve an employment goal. It was also believed that if veterans were responsible for paying a portion of the cost of their own education that this, in combination with the payment of benefits directly to veterans, would encourage more careful spending.

Since maximum benefits were offered to veterans in full-time study, the legislation provided a uniform definition of full-time for below college-level trade, technical, and institutional courses offered on the clock-hour basis and for undergraduate courses offered at colleges and universities. The benefit provided an allowance for subsistence, tuition, fees, supplies, books, and equipment of up to $110 monthly to single veterans, $135 monthly to veterans with one dependent, and $160 monthly to veterans with more than one dependent. Veterans who attended institutional training less than full-time, attended on-the-farm training at least half-time, or attended cooperative training full-time received a lower allowance. As a result of the determination that some veterans were overpaid from the original GI Bill, veterans who attended apprentice or on-the-job training received an allowance, which could not exceed $310 monthly in combination with the veterans' employment compensation. Veterans completing all coursework through correspondence courses or on a less-than-half-time basis were only reimbursed for the cost of completed courses. Veterans in flight training received 75% of the cost of flight training unless the program of education combined flight training with other coursework.

An allowance was not paid if veterans were absent from unaccredited courses or apprentice or on-the-job training for more than 30 days. Veterans could not suspend their education for longer than 12 months without a waiver from the VA. Veterans and their institutions were required to certify attendance, lessons completed, and/or satisfactory progress. The law disallowed veterans from receiving duplicate benefits from the Korean Conflict GI Bill and any other educational benefit from the U.S. Treasury.

Participation and Cost

In the end, the nation spent $4.5 billion ($30.8 billion in 2008 inflation adjusted dollars) to provide education and training to almost 2.4 million Korean Conflict veterans ( Table B -1 ). The total expenditure per participant was $1,882 ($12,867 in 2008 inflation adjusted dollars).

Appendix C. Post-Korea Conflict and Vietnam Era GI Bill

Once fighting and ground troop deployment escalated in Vietnam, the Veterans Readjustment Benefits Act of 1966 (P.L. 89-358), better known as the Post-Korean Conflict and Vietnam Era GI Bill, was passed. The program is codified in Title 38 U.S.C., Chapter 34. Congress passed the bill unanimously despite reservations by President Lyndon B. Johnson that the cost was too high. The benefits were designed to help recruit new servicemembers, extend benefits to all who fulfilled their compulsory service, and afford returning veterans an opportunity to receive the education and training missed while providing compulsory service in the military. Although the benefits were initially intended to provide "considerably less liberal treatment" to non-war veterans, over time Congress expanded the benefits and liberalized eligibility. Incidentally, these veterans were eligible for other federal education benefits available to the general public and passed through the recently enacted Higher Education Act of 1965.

Eligible Individuals

The minimum active duty eligibility period was 180 days. Educational assistance benefits were available to all veterans who served on active-duty after January 31, 1955, and entered military service before January 1, 1977, who were discharged other than dishonorably and served a minimum of 180 days, or were discharged or released for a service-connected disability. The 180-day service period excluded time assigned to an education or training program similar to those offered to civilians, time spent as a cadet or midshipman at one of the service academies, time spent in college for a delayed enlistment in the Army National Guard or Air National Guard, and service in the National Guard and the Reserves. The program was later amended by P.L. 93-508, enacted in 1974, so that members of the National Guard and the Reserves were eligible if the active duty period after the initial active duty training period was at least one year.

Servicemembers that otherwise met the eligibility requirements were also eligible for benefits while on active duty after serving two continuous years on active duty. This provision responded to concerns by the DOD that benefits available to veterans only would be counter to retention efforts.

Benefit Availability and Duration of Use

Although the bill was not passed until 1966, the benefits retroactively covered active duty servicemen since 1955 such that there would be no period of ineligibility of educational assistance benefits since September 16, 1940. However, no educational benefits were paid until June 1, 1966.

Initially, the Post-Korean Conflict GI Bill provided one month of entitlement for each month of active duty service, up to 36 months. P.L. 90-631, enacted in 1968, increased the period of entitlement to 1½ months of benefits for every month of service, with those serving 18 months or more being entitled to the full 36 months of benefits. Later, the entitlement period was increased to 45 months for those pursuing a standard undergraduate college degree by P.L. 93-508 , enacted in 1974, and finally to 45 months for all eligible persons by P.L. 94-502 , enacted in 1976.

By law, no educational benefits under the Post-Korean Conflict GI Bill could be paid eight years (later extended to 10 years by P.L. 93-337, enacted in 1974) after discharge or release or eight years after the Bill's enactment, whichever was later. P.L. 94-502 , enacted in 1976 provided that no educational benefits could be paid after December 31, 1989.

As originally enacted, Post-Korean Conflict GI Bill veterans could combine benefits with other educational benefit programs administered by the VA to receive up to 36 months of educational benefits. P.L. 90-631, enacted in 1968, increased this allowance to 48 months.

Eligible Programs of Education, Institutions, and Establishments

Upon initial enactment, the eligible programs of education were courses pursued at an educational institution─secondary school, vocational school, college or university, scientific or technical institution, or any other institution offering education at the secondary school level or above. For example, flight training courses had to be offered by IHLs and lead to a standard college degree (later revised to the standard college degree the recipient was seeking by P.L. 90-77, enacted in 1967). The list of eligible educational institutions and training establishments was later expanded:

Elementary schools, other schools furnishing education for adults, and businesses or other establishments offering apprenticeships or on-the-job training were later added. Farm cooperative training requiring 12 weekly hours of institutional agricultural courses and relevant agricultural employment became eligible under P.L. 90-77. Apprenticeship programs that met Department of Labor published standards were allowed under P.L. 90-77. On-the-job training programs were allowed under P.L. 90-77 if the programs provided progression and appointment to the next highest level based on the skills learned as opposed to length of service; compensation that matched non-veterans; initial compensation of not less than 50% of the final, full wage; a reasonable guarantee that the job would be available upon completion of the training period; at least six months of training but no more than two years; and adequate resources for the training and if the programs qualified the trainee for the job. Flight training at a non-IHL flight school was added by P.L. 90-77 if the flight school was approved by the state approving agency (SAA) and Federal Aviation Administration; if the training was necessary for the attainment of a vocational objective in aviation; if the individual had a valid private pilot's license or sufficient flight training hours for a private pilot's license (the allowance of sufficient hours without a license was later deleted by P.L. 91-219, enacted in 1970). Courses required by the Small Business Administration as a condition for obtaining financial assistance became eligible under P.L. 91-584, enacted in 1970.

Educational institutions received an annual reporting fee for each eligible person receiving educational benefits from the VA to facilitate reporting of enrollment, enrollment interruptions, and enrollment terminations to the VA.

Lessons Learned

Based on the experiences with prior GI Bills and early experience under the Post-Korean Conflict GI Bill, several provisions were included to ensure benefits were used to promote quality workforce preparation. Many of the provisions have been incorporated into all subsequent GI Bills. These provisions include the following:

Benefit recipients were only allowed to take courses necessary to fulfill their declared educational, professional, or vocational objective. Individuals were allowed to change the objective if not making or likely to not make satisfactory progress or if the new program better fit their aptitudes. Avocational and recreational courses were disallowed. No allowance was paid if veterans were absent for more than 30 days from courses that did not lead to a standard college degree. Substantially new courses at private for-profit institutions that had been offered for fewer than two years were not eligible. No on-the-job or on-the-farm course (later expanded to any course by P.L. 90-77, enacted in 1967) could be offered through open circuit television or radio, and no program of education leading to a standard college degree could offer the majority of courses through open circuit television or radio. Benefit recipients could not enroll in unaccredited courses below the college level at private institutions at which more than 85% of the students received payments from the institution or the VA. To fight low completion rates, various disclosure and refund requirements for correspondence schools were prescribed by P.L. 92-540, enacted in 1972. Payments could be suspended for courses where there was a substantial pattern of ineligible trainees receiving assistance because course approval requirements had not been met or the institution offering the course had violated recordkeeping requirements, as enacted in 1982 by P.L. 97-306 . Programs of education outside the United States were allowed only if offered at approved IHLs. Based on poor employment outcomes and overuse, Congress limited benefits for flight training. In 1970, Congress limited flight training at a non-IHL flight school to individuals with a valid private pilot's license. Finally, flight training at a non-IHL flight school was terminated for new enrollees by P.L. 97-35, enacted in 1981.

Benefit Payments

An allowance for subsistence, tuition and fees, supplies, books, and equipment was paid directly to recipients. Veterans and servicemembers received up to $150 monthly (eventually increased to $510 for individuals with two dependents) according to a schedule based on full-time, three-quarter-time, or half-time or cooperative program enrollment and the number of dependents. Active duty servicemembers and students pursuing education on a less-than-half-time basis were only reimbursed for the cost of completed courses, but no more than $100 monthly (eventually increased to $376 by P.L. 98-543 , enacted in 1984). Students completing all coursework through correspondence courses were only reimbursed for the cost (eventually reduced to 55% of cost by P.L. 97-35, enacted in 1981) of completed courses, and their entitlement period was reduced by one quarter of the time in the program (eventually changed to one month of entitlement for each $376 reimbursed by P.L. 98-543, enacted in 1984). Veterans in full-time on-the-farm, apprentice, or on-the-job training received a reduced allowance. In general, veterans and servicemembers and their institutions were required to certify actual attendance, lessons completed, and/or satisfactory progress before payments were made. Veterans and servicemembers were allowed to receive an advance payment for the first month of enrollment (P.L. 91-219 in 1970).

Allowance and entitlement period provisions were added for students pursuing a standard college degree through independent study and for students pursuing education while incarcerated or in a half-way house by P.L. 96-466, enacted in 1980. The law disallowed veterans from receiving duplicate educational benefits from the U.S. Treasury.

P.L. 95-202 , enacted in 1977, authorized the state or local government to establish a program with the VA that would allow veterans to use accelerated payments to help repay certain VA loans. The veteran had to be enrolled full-time and complete the program satisfactorily with a degree, diploma, or certificate. The tuition and fees had to exceed $700 for a term, and no more than 35% of program students could have received VA benefits. If these requirements were met, the state or local government paid the VA a matching amount of the accelerated payment.

Predischarge Education Program

The Predischarge Education Program (PREP) allowed servicemembers who completed 180 days of active duty and were still on active duty to receive an allowance for non-correspondence courses leading to a high school diploma or any deficiency, remedial, or refresher course in preparation for enrollment in an approved educational institution or training establishment. The monthly allowance was the lesser of actual tuition, fees, books, and supplies or $175 (eventually increased to $270 by P.L. 93-602 , enacted in 1975). Allowances received while on active duty did not reduce the regular entitlement period upon discharge or release.

Training for the Educationally Disadvantaged

The Post-Korean Conflict GI Bill was later amended to provide special assistance and training for the educationally disadvantaged. First, P.L. 90-77, enacted in 1967, allowed veterans and servicemembers without a high school diploma or its equivalent or who needed additional secondary school courses to receive the regular allowance for these courses without the payments reducing their regular entitlement period. Second, P.L. 91-219, enacted in 1970, provided tutorial assistance of $50 monthly for nine months (eventually increased to $84 monthly for a maximum of 12 months, or $1,008, by P.L. 98-543, enacted in 1984) to veterans and servicemembers enrolled in postsecondary education at least half-time. The tutorial assistance had to be for a deficiency in a course required for the educational objective, and the educational institution had to certify the need for assistance, the qualifications of the tutor, and the customary nature of the charges. Receipt of tutorial assistance did not reduce their regular entitlement period under the Post-Korean Conflict GI Bill.

Work-Study

P.L. 92-540, enacted in 1972, created a veteran work-study allowance for full-time students (later liberalized to at least three-quarter-time students by P.L. 101-237 , enacted in 1989). The allowance of $250 or a prorated sum (eventually increased to minimum wage or $625, whichever is higher, by P.L. 95-202 , enacted in 1977) was paid based on the agreement of a veteran to perform 100 hours of work in a term (eventually increased to a number of hours equal to 25 times the number of weeks in the term by P.L. 101-237 , enacted in 1989). Eligible work was VA outreach services, preparation and processing of paperwork at the educational institution or VA, medical care, or other activities approved by the VA. Preference was given to veterans with greater than 30% disability.

Participation and Cost

In the end, the Post-Korea and Vietnam Era GI Bill provided education and training to almost 1.4 million individuals who were servicemembers during the Post-Korean Conflict era and almost 6.8 million individuals who were servicemembers during the Vietnam era ( Table B -1 ). In total, about 60% of individuals eligible for benefits under the program took advantage of the program. By the end of FY1990, cumulative program expenditures exceeded $41.5 billion ($72.1 billion in 2008 inflation adjusted dollars) or $5,089 per participant ($8,836 per participant in 2008 inflation adjusted dollars).

Appendix D. Veterans and Dependents Education Loan Program

The Veterans and Dependents Education Loan Program was established by the Vietnam Era Veterans' Readjustment Assistance Act of 1974 (P.L. 93-508) in Chapter 36 of Title 38 U.S.C. to provide additional support to veterans attending high-cost institutions. Veterans who served on active duty after January 31, 1955, and before January 1, 1977 (later modified to active duty after January 31, 1955, by P.L. 94-502 , enacted in 1976), and their spouses, widows, and children were eligible to borrow. Eligible individuals also had to be enrolled at least half-time in a program of education leading to a standard college degree or a six-month non-college degree. Loans were not eligible for correspondence courses or apprentice and on-the-job training. Veterans who were full-time students were allowed loans for another two years of their remaining dollars of entitlement once the VEAP entitlement period ended. Repayment began nine months after enrollment dropped below half-time and was completed within 10 years.

The loans were up to $600 (eventually increased to $2,500 by P.L. 95-202, enacted in 1977) annually for education expenses. They were expected to cover the difference between the cost of attendance and the individual's reasonable financial resources.

There were several problems with the program's administration. The majority of loans were initially made to individuals at no- or low-cost institutions until P.L. 95-476 specified high-cost institutions. The loans were made without regard to other financial assistance such as Department of Education student financial assistance programs. The financial needs of 99% of recipients could have been covered through Department of Education student financial assistance programs. The default rate increased from 44% as of December 31, 1997, to 65% as of September 30, 1980. It also cost the VA 70 times more to administer the program than the Department of Education. P.L. 97-35 repealed the VA education loan program as of September 30, 1981, with some exceptions. ,