G . I . Bill The Servicemen ' s Readjustment Act of 1944 ( P . L . 78 - 346 , 58 Stat . 284m ) , known informally as the G . I . Bill , was a law that provided a range of benefits for returning World War II veterans ( commonly referred to as G . I . s ) . Benefits included low - cost mortgages , low - interest loans to start a business , cash payments of tuition and living expenses to attend college , high school or vocational education , as well as one year of unemployment compensation . It was available to every veteran who had been on active duty during the war years for at least ninety days and had not been dishonorably discharged ; combat was not required . By the end of the program in 1956 , roughly 2 . 2 million veterans had used the G . I . Bill education benefits in order to attend colleges or universities , and an additional 6 . 6 million used these benefits for some kind of training program . Since the original 1944 law , the term has come to include other veteran benefit programs created to assist veterans of subsequent wars as well as peacetime service . Historians and economists consider the G . I . Bill a major political success — especially in contrast to the treatments of World War I veterans — and a major contribution to America ' s stock of human capital that sped long - term economic growth . History . On June 22 , 1944 , the Servicemen ' s Readjustment Act of 1944 became a law , commonly known as the G . I . Bill of Rights . During the war , politicians wanted to avoid the postwar confusion about veterans ' benefits that became a political football in the 1920s and 1930s . President Franklin D . Roosevelt wanted a postwar assistance program to help transition from wartime , but he also wanted it on a need - basis for poor people , not just veterans . The veterans ' organizations mobilized support in Congress that rejected FDR ' s approach and provided benefits only to veterans of military service , including men and women . Ortiz says their efforts " entrenched the VFW and the Legion as the twin pillars of the American veterans ' lobby for decades . " Harry W . Colmery , a former national commander of the American Legion and former Republican National Chairman , is credited for writing the first draft of the G . I . Bill . He reportedly jotted down his ideas on stationery and a napkin at the Mayflower Hotel in Washington , D . C . U . S . Senator Ernest McFarland , D - Arizona , was actively involved in the bill ' s passage and is known , with Warren Atherton , as one of the " fathers of the G . I . Bill . " One might then term Edith Nourse Rogers , R - Mass , who helped write and who co - sponsored the legislation , as the " mother of the G . I . Bill " . Like Colmery , her contribution to writing and passing this legislation has been obscured by time . The bill was introduced in the House on January 10 , 1944 , and in the Senate , the following day , both chambers approved their own versions of the bill . The bill that President Roosevelt initially proposed had a means test — only poor veterans would be aided . The G . I . Bill was created to prevent a repetition of the Bonus March of 1932 when World War I veterans protested for years they had not been rewarded . An important provision of the G . I . Bill was low interest , zero down payment home loans for servicemen . This enabled millions of American families to move out of urban apartments and into suburban homes . Another provision was known as the 52 – 20 clause . This enabled all former servicemen to receive $ 20 once a week for 52 weeks a year while they were looking for work . Less than 20 percent of the money set aside for the 52 – 20 Club was distributed . Rather , most returning servicemen quickly found jobs or pursued higher education . After World War II . A look at the available statistics reveals that these later bills had an important influence on the lives of returning veterans , higher education , and the economy . A greater percentage of Vietnam veteran s used G . I . Bill education benefits ( 72 percent ) than World War II veterans ( 51 percent ) or Korean War veterans ( 43 percent ) . Moreover , because of the ongoing military draft from 1940 to 1973 , as many as one third of the population ( when both veterans and their dependents are taken into account ) were eligible for benefits from the expansion of veterans ’ benefits . The success of the 1944 G . I . Bill prompted the government to offer similar measures to later generations of veterans . The Veterans ’ Adjustment Act of 1952 , signed into law on July 16 , 1952 , offered benefits to veterans of the Korean War that served for more than 90 days and had received an “ other than dishonorable discharge . ” Korean War veterans did not receive unemployment compensation — they were not members of the " 52 – 20 Club " like World War II vets , but they were entitled to unemployment compensation starting at the end of a waiting period which was determined by the amount and disbursement dates of their mustering out pay . They could receive 26 weeks at $ 26 a week that the federal government would subsidize but administered by the various states . One improvement in the unemployment compensation for Korean War veterans was they could receive both state and federal benefits , the federal benefits beginning once state benefits were exhausted . One significant difference between the 1944 G . I . Bill and the 1952 Act was that tuition fees were no longer paid directly to the chosen institution of higher education . Instead , veterans received a fixed monthly sum of $ 110 , which they used to pay for their tuition , fees , books , and living expenses . The decision to end direct tuition payments to schools came after a 1950 House select committee uncovered incidents of overcharging of tuition rates by some institutions under the original G . I . Bill in an attempt to defraud the government . Although the monthly stipend proved sufficient for most Korean War veterans , the decision would have negative repercussions for later veterans . By the end of the program on January 31 , 1965 , approximately 2 . 4 million of 5 . 5 million eligible veterans had used their benefits : roughly 1 . 2 million for higher education , over 860 , 000 for other education purposes , and 318 , 000 for occupational training . Over 1 . 5 million Korean War veterans obtained home loans . Whereas the G . I . Bills of 1944 and 1952 were given to compensate veterans for wartime service , the Veterans Readjustment Benefits Act of 1966 ( P . L . 89 - 358 ) changed the nature of military service in America by extending benefits to veterans who served during times of war and peace . At first there was some opposition to the concept of a peacetime G . I . Bill . President Dwight Eisenhower had rejected such a measure in 1959 after the Bradley commission concluded that military service should be “ an obligation of citizenship , not a basis for government benefits . ” President Lyndon B . Johnson believed that many of his “ Great Society ” social programs negated the need for sweeping veterans benefits . But , prompted by unanimous support given the bill by Congress , Johnson signed it into law on March 3 , 1966 . Almost immediately critics within the veterans ’ community and on Capitol Hill charged that the bill did not go far enough . At first , single veterans who had served more than 180 days and had received an “ other than dishonorable discharge ” received only $ 100 a month from which they had to pay for tuition and all of their expenses . Most found this amount to be sufficient to pay only for books and minor fees , and not enough to live on or attend college full - time . In particular , veterans of the Vietnam War disliked the fact that the bill did not provide them with the same educational opportunities as their World War II predecessors . Consequently , during the early years of the program , only about 25 % of Vietnam veterans used their education benefits . In the next decade , efforts were made to increase veterans ’ benefits . Congress succeeded , often in the face of fierce objections from the fiscally conservative Nixon and Ford Administrations , to raise benefit levels . In 1967 , a single veteran ’ s benefits were raised to $ 130 a month ; in 1970 they rose to $ 175 ; under the Readjustment Assistance Act of 1972 the monthly allowance rose to $ 220 ; in 1974 it rose to $ 270 , $ 292 in 1976 , and then $ 311 a month in 1977 . As the funding levels increased , the numbers of veterans entering higher education rose correspondingly . In 1976 , ten years after the first veterans became eligible , the highest number of Vietnam - era veterans were enrolled in colleges and universities . By the end of the program , proportionally more Vietnam - era veterans ( 6 . 8 million out of 10 . 3 million eligible ) had used their benefits for higher education than any previous generation of veterans . The United States military moved to an all - volunteer force in 1973 , and veterans continued to receive benefits , in part as an inducement to enlist , under the Veterans Educational Assistance Program ( VEAP ) and the Montgomery G . I . Bill ( MGIB ) . From December 1976 through 1987 , veterans received assistance under the VEAP . The VEAP departed from previous programs by requiring participants to make a contribution to their education benefits . The Veterans Administration then matched their contributions at a rate of 2 to 1 . Enlisted personnel could contribute up to $ 100 a month up to a maximum of $ 2700 . Benefits could be claimed for up to 36 months . To be eligible for VEAP , a veteran had serve for more than 180 days and receive an “ other than dishonorable discharge . ” Nearly 700 , 000 veterans used their benefits for education and training under this program . In 1985 , a bill sponsored by Democratic Congressman " Sonny " Gillespie V . Montgomery expanded the G . I . Bill . The MGIB replaced the VEAP for those who served after July 1 , 1985 . This was an entirely voluntary program in which participants could choose to forfeit $ 100 per month from their first year of pay . In return , eligible veterans received a tuition allowance and a monthly stipend for up to 36 months of eligible training or education . Merchant marine . Congress did not include merchant marine veterans in the original G . I . Bill , even though they are considered military personnel in times of war in accordance with the Merchant Marine Act of 1936 . As President Roosevelt signed the G . I . Bill in June 1944 he said : " I trust Congress will soon provide similar opportunities to members of the merchant marine who have risked their lives time and time again during war for the welfare of their country . " Now that the youngest veterans are in their 80s , there are efforts to recognize their contributions by giving some benefits to the remaining survivors . In 2007 , three different bills related to this issue were introduced in Congress , one of which passed the House of Representatives only . Content . All veteran education programs are found in law in Title 38 of the United States Code . Each specific program is found in its own Chapter in Title 38 . Unlike scholarship programs , the MGIB requires a financial commitment from the service member . However , if the benefit is not used , the service member cannot recoup whatever money was paid into the system . In some states , the National Guard does offer true scholarship benefits , regardless of past or current MGIB participation . Chapter 30 . In 1984 , former Mississippi Congressman Gillespie V . “ Sonny ” Montgomery revamped the G . I . Bill . From 1984 until 2008 , this version of the law was called " The Montgomery G . I . Bill " . The Montgomery GI Bill — Active Duty ( MGIB ) states that active duty members forfeit $ 100 per month for 12 months ; if they use the benefits , they receive $ 1564 monthly as a full - time student ( tiered at lower rates for less - than - full - time ) for a maximum of 36 months of education benefits . This benefit may be used for degree and certificate programs , flight training , apprenticeship / on - the - job training and correspondence courses if the veteran is enrolled full - time . Part - time veteran students receive less , but for a proportionately longer period . This means for every month the veteran received benefits at the half - time , the veterans benefits are only charged for 1 / 2 of a month . Veterans from the reserve have different eligibility requirements and different rules on receiving benefits ( see Ch . 1606 , Ch . 1607 and Ch . 33 ) . MGIB may also be used while active , which only reimburses the cost for tuition and fees . Each service has additional educational benefit programs for active duty members . Most delay using MGIB benefits until after separation , discharge or retirement . " Buy - Up " Option . The " Buy - Up " option , also known as the " kicker " , allows active duty members to forfeit up to $ 600 more toward their MGIB . For every dollar the service member contributes , the federal government contributes $ 8 . Those who forfeit the maximum ( $ 600 ) will receive , upon approval , an additional $ 150 per month for 36 months , or a total of $ 5400 . This allows the veteran to receive $ 4 , 800 in additional funds ( $ 5400 total minus the $ 600 contribution to receive it ) , but not until after leaving active duty . The additional contribution must be made while still on active duty . It is available for G . I . Bill recipients using either Ch . 30 or Ch . 1607 , but cannot be extended beyond 36 months if a combination of G . I . Bill programs are used . Time limit / eligibility . MGIB benefits may be used up to 10 years from the date of last discharge or release from active duty . The 10 - year period can be extended by the amount of time a service member was prevented from training during that period because of a disability or because he / she was held by a foreign government or power . The 10 - year period can also be extended if one reenters active duty for 90 days or more after becoming eligible . The extension ends 10 years from the date of separation from the later period . Periods of active duty of less than 90 days qualify for extensions only if one was separated for one of the following : For those eligible based on two years of active duty and four years in the Selected Reserve ( also known as " call to service " ) , they have 10 years from their release from active duty , or 10 years from the completion of the four - year Selected Reserve obligation to use MGIB benefits . At this time , service members cannot recoup any monies paid into the MGIB program should it not be utilized . Top - up option . Service members may use GI bill in conjuntion with Military Tuition Assistance ( MilTA ) to help with payments above the MilTA CAP . This will reduce the total benefit available once the member leaves service . Educational . Under this bill , benefits may be used to pursue an undergraduate or graduate degree at a college or university , a cooperative training program , or an accredited independent study program leading to a degree . Chapter 31 . Montgomery G . I . Bill " Chapter 31 " is a vocational rehabilitation program that serves eligible active duty servicemembers and veterans with service - connected disabilities . This program promotes the development of suitable , gainful employment by providing vocational and personal adjustment counseling , training assistance , a monthly subsistence allowance during active training , and employment assistance after training . Independent living services may also be provided to advance vocational potential for eventual job seekers , or to enhance the independence of eligible participants who are presently unable to work . In order to receive an evaluation for Chapter 31 vocational rehabilitation and / or independent living services , those qualifying as a " servicemember " must have a memorandum service - connected disability rating of 20 % or greater and apply for vocational rehabilitation services . Those qualifying as " veterans " must have received , or eventually receive , an honorable or other - than - dishonorable discharge , have a VA service - connected disability rating of 10 % or more , and apply for services . Law provides for a 12 - year basic period of eligibility in which services may be used , which begins on the latter of separation from active military duty or the date the veteran was first notified of a service - connected disability rating . In general , participants have 48 months of program entitlement to complete an individual vocational rehabilitation plan . Participants deemed to have a " serious employment handicap " will generally be granted exemption from the 12 - year eligibility period and may receive additional months of entitlement as necessary to complete approved plans . Chapter 32 . The Veterans Educational Assistance Program ( VEAP ) is available for those who first entered active duty between January 1 , 1977 , and June 30 , 1985 , and elected to make contributions from their military pay to participate in this education benefit program . Participants ' contributions are matched on a $ 2 for $ 1 basis by the Government . This benefit may be used for degree and certificate programs , flight training , apprenticeship / on - the - job training and correspondence courses . Chapter 33 ( Post - 9 / 11 G . I . Bill ) . Congress , in the summer of 2008 , approved an expansion of benefits beyond the current G . I . Bill program for military veterans serving since September 11 , 2001 , originally proposed by Senator James Webb . Beginning in August 2009 , recipients became eligible for greatly expanded benefits , or the full cost of any public college in their state . The new bill also provides a housing allowance and $ 1 , 000 a year stipend for books , among other benefits . The VA announced in September 2008 that it would manage the new benefit itself instead of hiring an outside contractor after protests by veteran ' s organizations and the American Federation of Government Employees . Veterans Affairs Secretary James B . Peake stated that although it was " unfortunate that we will not have the technical expertise from the private sector , " the VA " can and will deliver the benefits program on time . " Pending Changes to the Post - 9 / 11 G . I . Bill . In December 2010 Congress passed the Post - 9 / 11 Veterans Education Assistance Improvements Act of 2010 . The new law , often referred to as G . I . Bill 2 . 0 , expands eligibility for members of the National Guard to include time served on Title 32 or in the full - time Active Guard and Reserve ( AGR ) . It does not , however , cover members of the Coast Guard Reserve who have served under Title 14 orders performing duties comparable to those performed by National Guard personnel under Title 32 orders . The new law also includes : Effective October 1 , 2011 , a new ( reduced ) housing stipend for online ( distance ) learners , which pays $ 673 . 50 for students who pursue a full - time degree program online . If the student is pursuing training on a part - time basis , then the student must have at least a 51 % rate of pursuit , in order to receive 1 / 2 of the maximum allowable distance BAH . Prorated Basic Allowance for Housing ( BAH ) payments will now be in effect . Before August 1 , 2011 , if the veteran had at least a 51 % rate of pursuit ( 7 credit hours for most programs ) then the veteran received the entire E - 5 w / dep BAH . Effective August 1 , 2011 , the VA will pro - rate BAH payments based on the veterans actual rate of pursuit . This means if the veteran is attending 9 semester hours in a semester where 12 hours is considered full - time , then the rate of pursuit is 80 % ( 9 / 12 = 75 % , rounded to the nearest tenth ) . The veteran will then be paid 80 % of the maximum BAH award allowed by the VA . Break pay is no longer payable after August 1 , 2011 . Before 8 - 1 - 11 if the veteran had two periods of enrollment with a break not exceeding 6 weeks in length , the VA would pay for the break period at the rate of the previous period of enrollment . The new change will result in many " uneven " BAH payments because more periods will be subject to pro - ration . For example , if the veteran is attending a term ending 8 - 13 - 11 , and the next term begins 8 - 22 - 11 , then the veteran will not be paid for the break between enrollment periods . In this case if the veteran is full - time , and his or her maximum BAH rate is $ 1500 per month , then he or she will receive ( 13 / 30 ) x $ 1500 = $ 650 for the end of the first period of enrollment , then the veteran will receive ( 10 / 30 ) x $ 1500 = $ 500 for the beginning of the second period of enrollment . Effectively , the change in break - pay means the veteran will receive $ 1150 per month for August instead of $ 1500 per month . This have a significant impact in December - January BAH payments since most Colleges have 2 - 4 week breaks . Another change enables active - duty servicemembers and their G . I . Bill - eligible spouses to receive the annual $ 1 , 000 book stipend ( pro - rated for their rate of pursuit ) , adds several vocational , certification and OJT options , and removes the state - by - state tuition caps for veterans enrolled at publicly funded colleges and universities . Changes to Ch . 33 also includes a new $ 17 , 500 annual cap on tuition and fees coverage for veterans attending Private Colleges and foreign colleges and universities . Chapter 35 . The Survivors ' and Dependents ' Educational Assistance Program ( DEA ) provides education and training opportunities to eligible dependents of veterans who are permanently and totally disabled due to a service - related condition , or who died while on active duty or as a result of a service related condition . The program offers up to 45 months of education benefits . These benefits may be used for degree and certificate programs , apprenticeship , and on - the - job training . Spouses may take correspondence courses Chapter 1606 . The Montgomery G . I . Bill — Selected Reserve ( MGIB - SR ) program may be available to members of the Selected Reserve , including all military branch reserve components as well as the Army National Guard and Air National Guard . This benefit may be used for degree and certificate programs , flight training , apprenticeship / on - the - job training and correspondence courses . Chapter 1607 . The Reserve Educational Assistance Program ( REAP ) is available to all reservists who , after September 11 , 2001 , complete 90 days or more of active duty service " in support of contingency operations . " This benefit provides reservists return from active duty with up to 80 % of the active duty ( Chapter 30 ) G . I . Bill benefits as long as they remain active participants in the reserves .