Today’s college graduates walk across the stage with a diploma in one hand — and on average, $28,950 in student debt in their other. And the worst of it is that most of them don’t even have a job yet, but they will start their career owing almost $30,000. Of that debt, 92% of it is student loans — either federal, private or a combination of both.
But as active military, a veteran, or someone considering this path, you may have unlocked a secret: how to walk away from graduation with most, if not all, of your education paid for so that you’re not another student-debt statistic. Though there’s a good chance you didn’t even know this is possible (and no, you don’t necessarily need a rich uncle, we promise!).
The key to this secret is contained right here in this guide. You’ll find information you need to secure free money for college, details about the GI Bill, FAQs, resources, and scholarships. Let’s begin!
Are You a Veteran or Military Dependent? Start Here:
Several different financial aid options are available for veterans, active-duty military, and their families. Because each option has its own set of rules and eligibility criteria, it can be confusing which ones might apply to you. Keep reading to get answers to your frequently asked questions about the types of funding you may be eligible to receive.
Post-9/11 GI Bill
The Post-9/11 GI Bill (Chapter 33) is available to military members who have served at least 90 continuous days on active duty after September 10, 2001. It’s the most generous GI Bill to date and is unique in several ways:
- It provides 36 months of education benefit free just for serving.
- The amount it pays depends in part on the amount of time served. The minimum coverage is 50% for 90 days of service; the maximum of 100% comes at three years or more of service.
- It pays tuition and fees directly to the student’s school and pays the student a monthly housing allowance (MHA) and book stipend. Please note: the MHA varies based on several factors, and the book stipend pays $41.67 per credit up to a yearly maximum of $1,000.
Yellow Ribbon Program (YRB)
The YRB is exclusively a feature of the Post-9/11 GI Bill that can help pay costs where that GI Bill falls short, such as out-of-state tuition, private or foreign school tuition, or graduate school costs. But be careful, because not all schools participate; check to see if your school does.
Participating schools set their own criteria for the program within the VA parameters and can waive up to 50% of the unpaid tuition balance. The VA will pay an equal amount, so it is possible that between what the school waives and what the VA pays (in addition to what they are already paying in tuition and fees) you would have zero out-of-pocket costs. But if the school chooses a lesser percentage to waive, the VA ends up paying less, and then you would have a small amount left to pay.
Montgomery GI Bill
There are two version of the Montgomery GI Bill: one for active-duty personnel (MGIB-AD), also known as Chapter 31, and one for Selected Reserve Members (MGIB-SR), known as Chapter 1606. While both can provide up to 36 months of education benefits, the amount each one pays is very different; the MGIB-AD pays up to $2,210/month, while the MGIB-SR pays up to $449/month.
Veterans Educational Assistance Program (VEAP)
The VEAP was available for military members in all military branches, except the Air Force, who enlisted between Jan. 1, 1977 and June 30, 1985 and put between $25 and $2,700 into their VEAP account before April 1, 1987.
For the Air Force, the qualifying rules were different; an airman had to have enlisted at one of these locations (and in a specific specialty) between Dec. 1, 1980 and Sept. 31, 1981, also putting money into their VEAP account.
Benefits of the program expired if not used within 10 years of discharge, and the money invested was returned to the owner of the account.
Tuition Top-Up Program
Tuition Top-Up (TATU) is an education program available only to active-duty personnel. If a servicemember reaches their Tuition Assistance (TA) cap early in their academic year or wants to take classes in which the cost per credit exceeds what TA pays, that’s when TATU comes into play.
For military members that have the MGIB-AD, Tuition Top-Up entitlement is charged at the rate of one month of entitlement for each month of school. However, if using the Post-9/11 GI Bill, a full semester of entitlement is charged regardless of how much (or how little) TA pays. Using the Post-9/11 in conjunction with Top-Up may not be the best use of your GI Bill benefits.
Survivors & Dependents Education Assistance
Also known as Chapter 35, this is an education benefit no family wants to use, but the benefits are there if:
- they lose their military member;
- they are listed MIA;
- or they meet the VA requirements for disability.
However, there are different rules that pertain to children of veterans vs. spouses. For example, dependent children can use their education benefits between the ages of 18 to 26. Spouses, on the other hand, can use their benefits up to 10 years after their VA-established date of eligibility. If the serving spouse died while on active duty, that date is extended to 20 years.
Are You a Current Military Member? Start Here:
The Tuition Assistance Program is a Department of Defense administered program, and therefore the basics of the program apply to all military branches (except Coast Guard, which falls under the Department of Homeland Defense and has its own TA program).
The basic rules of the TA program are:
- Semester per credit tuition does not exceed$250, or $166 per quarter credit hour.
- The maximum amount paid per fiscal year Oct. 1 through Sept. 30 does not exceed $4,500.
Each military branch has its own version of tuition assistance. Keep reading to learn more.
Active Duty
- Army: Pays up to $250 per credit up to 16 semester credits per year, with a $4,000 yearly cap. Total lifetime cap cannot exceed 130 credits for an undergraduate degree, or 39 hours for an advanced degree. Degree programs are approved up through the doctoral level.
- Air Force and Space Force: Pays up to $250 per semester credit up to the $4,500 yearly cap. Airmen can take up to six semester hours before having to declare a degree plan.
- Navy: Pays up to $250 per semester credit for up to a maximum of 18 credits per year, with a total lifetime cap not exceeding 120 credit hours. Included are approved accredited degree programs up through master’s degree, along with certificate programs.
- Marines: Pays up to 16 semester credits per year up to the $4,500 yearly cap. First-time users can only take one course their first semester, and repeat students can only take two classes per semester.
- Coast Guard: Even though the Coast Guard is not covered under the Department of Defense, they use the same criteria of $250 per semester credit up to the $4,500 yearly cap. However, this branch has grade requirements, with a grade lower than “C” for undergraduate classes or a “B” for graduate classes requiring the student to reimburse costs paid by TA.
Selective Reserve
- Army Reserve: Covers both enlisted and officers and pays up to $250 per semester credit, not to exceed the annual cap of $4,500.
- Army National Guard: While TA does apply to ARNG members while on active duty, they are also covered when not by Federal Tuition Assistance. FTA pays up to $250 per semester credit with up to 16 semester credits per year. Lifetime limits apply: up to 130 semester credits for undergraduates and 39 semester credits for those in graduate programs. FTA can be used simultaneously with Chapter 1606/MGIB-SR, Chapter 33/Post-9/11 or Chapter 31/MGIB-AD for the same course(s), when attending half-time or more.
- Air Force Reserve and Space Force: Per-semester credit for undergraduate degrees cannot exceed $250 per credit with a $4,500 yearly cap. Master’s degrees are only covered up to 75% of the tuition, not to exceed $250 per semester credit or the yearly cap of $4,500. Space Force does not yet have a Reserve Force.
- Air National Guard: Before October 2020, Air National Guardsman were only covered by TA when they were on active-duty orders and then fell under the active-duty Air Force TA rules. That has now changed, and ANG personnel can use FTA to pay for both undergraduate and graduate courses at the usual rate of up to $250 per semester credit with a $4,500 yearly cap. And like the ARNG, they can also use other GI Bills to offset the cost of school.
- Navy Reserve: TA is only available for Navy Reservists who are on active-duty orders. Active-duty TA rules apply.
- Marines Reserve: Like the Navy reserve, TA is not available for Marine Reservists unless they are on active-duty orders.
- Coast Guard Reserve: Reservists are covered up to $250 per semester, not to exceed $2,250 annually — but only if on active-duty.
Are You a College-Bound High School Student? Start Here:
Perhaps you’re a high school graduate who is considering military service through one of the following: starting college as a Reserve Officers’ Training Corps (ROTC) member or through a military branch academy.
The advantage with either option is that your post-secondary education is paid for. Of course, you pursue either option knowing there is a service obligation for a certain number of years that has to be fulfilled as repayment for your education costs.
Another advantage of graduating from either program is that you enter the military as a commissioned officer instead of having to wait to go to Officer Candidate School (OCS). This means you could advance in rank sooner and have the advantage of leadership positions sooner. Additionally, you get paid more than if you came in as an enlisted service member and then went to OCS later.
ROTC Programs
Students in a ROTC program take military classes in addition to their normal college classes; more than 1,000 traditional colleges and universities currently offer at least one ROTC program in one of the military branches, and some of the larger schools may have more than one program. You can take ROTC for up to three semesters before making a service commitment, and if you decide to enlist in the military, you are awarded scholarships that help pay for college.
As a ROTC student, you can choose to have either your tuition and fees paid for, or room and board. Regardless of which option you choose, you also receive a monthly living stipend ranging from $300 to $500 per month, and you get a book allowance of $750 to $1,200 per year — the amount of each depending on the military branch you chose. The service obligation incurred for ROTC scholarships is eight years. Learn more about ROTC Programs from individual branches of the military and how to apply from Today’s Military.
US Military Academies
Because of the rigorous application process, high school students who plan to apply to one of the academies listed below should start the application process in their high school sophomore year.
In 2020, the academies selected between 9% and 16% of the submitted applications, depending on the academy. Clearly, this is a highly competitive process. Academy students must also fulfill a service obligation upon graduation of at least 8 years.
- U.S. Air Force Academy: Located in Colorado Springs, CO, accepted students can choose from over 32 majors — many in STEM fields.
- U.S. Naval Academy: Annapolis is home to this school that educates naval officers, offering 26 majors (20 in STEM fields). Marine Corps candidates also train at the USNA.
- U.S. Military Academy/West Point: Located in West Point, N.Y., this school has been operating since pre-Civil War, currently offering 36 majors and 19 minors in a variety of departments. Like the other academies, many of the majors are in high-demand STEM fields.
- U.S. Coast Guard Academy: At New London, Conn., the Coast Guard’sAuxiliary University Program has a 1-2 year or 3-4 year option. Most classes are in applied technology, and each program consists of three phases: general nautical requirements, elective qualification, and maritime leadership capstone.
- U.S. Merchant Marine Academy: Located at King’s Point, N.Y., this is not a military academy, but instead is a federal service academy. Merchant Marine graduates incur a service obligation and can choose between working five years in the United States maritime industry with eight years of service as an officer in any reserve unit of the Armed Forces, or five years on active duty in any of the nation’s Armed Forces.
Federal Student Aid Options
You have many kinds of student aid options available that can be used to supplement the GI Bills. The best place to start is by filling out the FAFSA (Free Application for Federal Student Aid), which may reveal that you qualify for additional funding from the federal government — especially important if you are attending a school that costs more than what the GI Bill will pay, such as many private or foreign schools.
Check out this guide to filling out the FAFSA, and then research additional military benefits through the following federal aid options:
The Servicemembers Civil Relief Act (SCRA)
While SCRA is not financial aid in the traditional sense, it can provide financial protections if you are called to active-duty service. One of these protections: capping student loan interest rates at 6% for the duration of your active-duty tour. To receive this benefit, you will need to notify your lender in writing and include a copy of your orders to active-duty service or a letter from your commanding officer that shows the date you began active-duty service.
Iraq and Afghanistan Service Grants
Iraq and Afghanistan Service Grants may be available to you if you lost a parent or guardian as a result of military service in Iraq or Afghanistan after the events of September 11, 2001. To be eligible, you must not be eligible for a Pell Grant, you must have been younger than 24 years old at the time of the parent or guardian’s death, and you must be enrolled at least part time in a college or career school.
The maximum amount of this grant is the same as the Pell Grant, $7,395 (for the 2023/2024 academic year). And receiving this grant does not affect your eligibility for other need-based federal student aid.
Other Grants Available
Grants are an extremely attractive form of financial aid, because they’re essentially free money — they are usually awarded based on financial need and do not need to be repaid. Most grant programs for military students are federally or state funded, and some colleges and universities offer their own military student grants and aid programs.
Here are just a few grants that, depending on your education situation, you may be eligible to receive:
Pell Grants
This grant is awarded based on extreme financial need. If approved, the amount you get is based on these factors:
- the amount of your Expected Family Contribution (EFC)
- the cost of attendance at your school
- your student status, either full time or half time
- if you plan to attend school for a full academic year or less
FSEOG Grants
The Federal Supplemental Educational Opportunity Grant (FSEOG) is awarded to undergraduate students who have exceptional financial need. Grants can be awarded in amounts ranging from $100 to $4,000 per year. Each participating school gets an allotment of money each year from the Department of Education to award eligible students. However, once that money is gone, no more awards can be issued for that year.
TEACH Grants
The Teacher Education Assistance for College and Higher Education (TEACH) grants are $4,000 per year and come with a four-year teaching service obligation. If you don’t fulfill this teaching obligation — which is to teach full time in a high-need subject at a low-income elementary, middle, or high school — the grant will revert to a loan and must be paid back.
Military College Funding FAQs
Much of the information available to veterans about using their GI Bill or finding additional forms of financial aid can be confusing. In this section, you’ll find 10 commonly asked questions and answers that address and clarify GI Bill issues and college education financial aid options.
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As a veteran, how long do I have to use my military financial aid?
The answer to this question depends on which GI Bill you have. For the most common GI Bill, the Post-9/11, it’s based on your discharge date: If it was before January 1, 2013, then your education benefit expires 15 years from your date of discharge. However, if you got out on or after that date, then your benefits are good forever — a change that was part of the Harry W. Colmery Veterans Educational Assistance Act, also known as the Forever GI Bill.
If you’re using an MGIB, here again, it depends on which version you have. For those with the MGIB-SR, there are no education benefits once you’re discharged from the Selected Reserve. For the MGIB-AD, you typically have 10 years from your date of discharge to use your benefits. However, there can be extenuating circumstances that could extend that time.
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If I’m choosing an online school, how can I make sure that my funding is accessible?
First, check if your school is VA-approved. One of the best ways to do that is to use the GI Bill Comparison Tool. Just enter the name of your school, and you’ll see pertinent information about tuition cost, housing benefit, accreditation, and number of GI Bill students.
If your school is listed, then you know it is VA-approved. The next step is to apply to the VA to get your Certificate of Eligibility (COE), which you will need to enroll in school. Once you have your COE in hand, you can rest assured that funding is accessible at this school.
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Is it possible to graduate without debt with military funding?
The short answer is “yes.” If you have at least three years of service and the Post-9/11 GI Bill, you have 36 months of education benefits that you can use to go to school. If you attend a public school, the VA pays your tuition/fees at 100% of the in-state rate. With nine-month academic years, that is enough to pay for a four-year degree.
However, if you decide to attend a private school, then the tuition/fees are capped at $26,381.37 per year. And regardless of your decision to attend either public or private school, you also get a monthly housing allowance and a book stipend.
This alone may not be enough to cover a full year of expenses, but many private schools also participate in the Yellow Ribbon Program, which can then help pay any remaining unpaid balance. And if you qualify for any other financial aid, you could end up with no out-of-pocket expenses for a four-year education.
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How long do I have to serve before I can begin using my military college funding?
For the Post-9/11 GI Bill, you meet the minimum tier of 50% with 90 days of continuous service. To reach the 100% tier, it takes three years. The tier percentage increases 20% with each six-month period of service, except the 60% tier, which requires 12 months of service.
With the MGIB-AD, the minimum requirement is two years of service. For the MGIB-SR, you must have completed Inactive Duty Training, have your high school diploma, and remain in good standing in your Selected Reserve.
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I am a child or dependent of a military member — what aid options are available to me?
Right now, the biggest financial aid is if the military member did a transfer of Post-9/11 GI Bill benefits while serving. If the serving member is deceased, there could also be up to 36 months of education benefits available under the Fry Scholarship. Other sources of financial aid can include various scholarships and grants from military and affiliated organizations.
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Does military financial aid count as income for tax?
GI Bill benefits are not considered taxable income and therefore do not have to be listed as income on Form 1040. And if other forms of financial aid (scholarships and grants) are spent on education expenses, that money does not have to be declared as income. However, if that money is spent on non-education related expenses, it must be claimed as income.
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Can I transfer my GI Bill benefits to my spouse or children?
Yes, if you have the Post-9/11 GI Bill and are still serving at the time of transfer. If you have at least 16 years of service and can commit to another four years at the time of your Transfer of Benefits request, you can transfer the months of unused benefit that you have left to any dependent child or your spouse, if the recipient is enrolled in the Defense Enrollment Eligibility Reporting System (DEERS).
A good way to manage a transfer of benefits is to transfer at least one month of benefit to each dependent and your spouse. Then once out, you as a veteran can revoke and reassign benefits if the dependent or spouse getting the benefits has received benefits before. In other words, if you have a child after getting out, that child cannot receive a transfer of benefits because s/he was not born yet when you made an initial transfer of benefits to your other children or spouse.
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What expenses does military financial aid cover, and what does it not cover?
In the case of the Post-9/11 GI Bill, the VA sends your school money to pay for tuition and applicable fees. You will receive a monthly housing allowance and book stipend, so you must pay your own room, board, and books. The MGIBs pay students directly, so you are responsible for paying all education-related expenses.
In most cases, other types of military financial aid also go to the school itself and are applied toward your tuition costs. That is the case with most scholarships and grants.
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If I have two GI Bills, can I use them both?
Yes, you can, but only in a certain order to get the full 48-month maximum. If you have both the MGIB-AD and Post-9/11, you get more combined months of benefits if you use your 36 months of MGIB benefits first, then switch to the Post-9/11 to get an additional 12 months of benefits, for a total of 48 months.
However, if you switch to the Post-9/11 GI Bill with months left on your MGIB-AD, then you only get that same number of months for the Post-9/11 GI Bill as you had left on your MGIB-AD and not the additional 12 months. So, using them in the correct order helps you maximize your GI Bill education benefits.
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Does the GI Bill cover apprenticeships?
The GI Bill covers many VA-approved apprenticeships, along with on-the-job training programs. However, if using the Post-9/11 GI Bill, the pay structure is different for these two types of programs than it is for both degree and other non-degree type programs.
If using the Post-9/11 GI Bill, you get 100% of the monthly housing allowance for the first six months of training. Then it drops 20% for each additional six-month period, finally stabilizing at 20% for your remaining time in the program. So, for example, you would get 80% for the second six months, 60% for the third six months, 40% for the fourth six months, and then 20% for as long you are in the program.
The theory behind the sliding scale payments is that you are also getting paid by your employer, and as you gain more skills, they are increasing your pay by the same percentage. Therefore, you are getting the same amount each month. And students in these programs also get a book stipend up to a maximum of $1,000 for each year in the program.
Additional Financial Aid Resources
Some people choose to serve in the military thinking they will have education benefits they can use once out. But the good news is you can serve and go to college at the same time — all you need is a laptop and a good internet connection. With financial aid options readily available to help pay for your tuition and other education expenses, you can work on your degree at almost no cost from anywhere in the world. Then once you are out, you can use your GI Bill and other forms of financial aid to continue your education.
Still have questions? Below, you’ll find a list of resources to help you get more information about military financial aid.
- 13 Tips for Military & Veterans on How to Apply for Scholarships: This list offers tips that veterans and their spouses can use to increase their chances of earning scholarships and grants.
- 18 Scholarships For Military Children, Spouses, And Veterans: Read descriptions of seven scholarships for military kids, five for military spouses, and five for veterans.
- Active-Duty Military Scholarships: This resource lists scholarships available to military members by military branch, in addition to 10 scholarships that are available for all military members.
- Ask the Right Questions Before Choosing a School: As someone in the military (or considering this path), asking questions when choosing a school is important. This article offers questions about tuition and fees, accreditation and associations, non-traditional credit options, and general course information.
- Coast Guard Pre-Commissioning Initiative Scholarship: Check out this website that explains how to get up to $20,000 a year in scholarship money by pre-commissioning in the Coast Guard Officer program.
- College Credit By Examination: You can earn entry-level credits by just taking the final examination and not the class itself. This is a convenient way to get introductory classes out of the way and save your GI Bill entitlement for higher-level and graduate courses.
- Finding the Right School as a Veteran: With so many schools to choose from, it’s difficult to know how to choose the right one. This article offers basic questions to ask, as well as additional resources and considerations.
- Forever GI Bill – Harry W. Colmery Veterans Educational Assistance Act: This act changed many facets of Post-9/11 GI Bill benefits, including ending the 15-year entitlement deadline, raising the minimum tier to 50%, and extending the Yellow Ribbon Program to active-duty personnel.
- Fry Scholarship: Information on how to determine if you qualify for this 36-month scholarship — offered to children and spouses of certain veterans — which has the same benefits as the Post-9/11 GI Bill.
- How To Get Your Joint Services Transcript: Most colleges will accept credits that apply to the student’s degree plan. To get these credits from military service, it is necessary to order your transcript from JST. Watch this webinar from Concordia University Irvine for details.
- Military Education Benefits: Join Military to Pay for School: An article from Fastweb on the different ways servicemembers can pay for school after joining the military.
- MyCAA – Scholarships for MilSpouses: MyCAA scholarships are open to spouses whose serving member is at the rank of E-1 to E-6, W-1 to W-2 and O-1 to O-3.
- MyCAA Program Fact Sheet: Wondering if you might qualify for a MyCAA MilSpouse Scholarship? Here’s a fact sheet with details.
- ROTC Scholarships: Here you’ll find detailed information about how high school seniors, college students, and enlisted personnel can apply for Army, Air Force, and Navy ROTC programs.
- So You Want to Go to College?: While this article was written for military non-commission officers, it is applicable to any military member wanting a post-secondary education.
- State Veteran Education Benefits: Here, you’ll find the education benefits offered to resident veterans in all U.S. states, organized by region. Many of the benefits also apply to military members serving in the state’s National Guard.
- Transfer Post-9/11 GI Bill Benefits: This article offers insights about who is eligible to receive benefits, how to make a transfer request, and how to use transferred benefits.
- Veterans Technology Education Courses: Commonly known as VET TEC, this training program is available to veterans who are considering a career change to a high-demand technology field.
- Yellow Ribbon Program Frequently Asked Questions – Academic Year 2023-2024: Students often require more information about the Yellow Ribbon Program to make a better-informed decision on how to apply. This article addresses 31 FAQs with answers on the YRP.
Interview with an Expert
Ron Kness
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Q: How do military members or veterans apply for military financial aid to pay for college, and what documents do they need to provide?
A: To use either the MGIB or Post-9/11 GI Bills, veterans should fill out VA Form 22-1990. To see what other financial aid you may be qualified to receive, fill out a FAFSA application.
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Q: What support services are available to help veterans and military members succeed academically and make the most of my military financial aid benefits?
A: Every school that is approved to receive GI Bill benefits has a VA Certifying Official that helps GI Bill students not only enroll using their GI Bill, but to also address any problems that a student may run into with the VA. Many schools also have a veteran’s support center to help veterans work out issues by being able to talk to other veterans that may have had similar experiences.
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Q: What steps can one take to ensure that they are using their military financial aid benefits wisely and making progress towards their educational and career goals?
A: First, decide your career goals carefully so that you can choose a degree plan and stick with it. So many veterans start school, and part way through decide they want to change their major. In most cases, they end up losing some credits that do not transfer, so not only did they waste their time taking the class, but they wasted GI Bill benefits taking a class that they ended up not using.
The GI Bill provides 36 months of benefits, which is enough to get a four-year degree. But if credits are wasted along the way, the veteran most likely will end up having to pay some out-of-pocket costs that they would have otherwise not paid had they had a solid career plan from the beginning.
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Q: What happens if a veteran or military member drops out of college or fails to maintain satisfactory academic progress while using military sources of financial aid?
A: According to the VA, even if a student fails a class, it counts toward graduation requirements and therefore does not require any reimbursement back to the VA.
However, if the students drop a class after the school’s official drop period or withdraws from the class, that class does not count toward graduation requirements. The student would therefore be required to reimburse the VA for the cost of the class.
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Q: Can military financial aid be used to pay for online courses or distance learning programs?
A: If using the Post-9/11 GI Bill, yes it can, but the pay can be different. The biggest difference here is in terms of the housing stipend. If a student is taking only online classes, then the military housing allowance (MHA) is half of the national average — or about $900 per month. However, if the veteran takes one class per semester that meets on campus, they can receive the full MHA authorized for the zip code of that school which increases the amount they can get covered. Tuition coverage remains the same.
