New GI Bill

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LSATfromNC
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New GI Bill

Postby LSATfromNC » Thu Jan 01, 2009 3:51 pm

This looks to damn good to be true. If you have a full ride to a New York city school and they send the $10,000 tuition payment do you get to pocket it? Also the $2,500 a month housing and 1k book stipend gives me warm fuzzies inside :)

LSATfromNC
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Re: New GI Bill

Postby LSATfromNC » Thu Jan 01, 2009 4:24 pm

Come on I know there are veterans out there who know this :)

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Boyk1182
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Re: New GI Bill

Postby Boyk1182 » Thu Jan 01, 2009 4:27 pm

The way I understand it, they pay up to the highest in-state public school's tuition. But, if your school is cheaper, you don't get the remainder. They pay the tuition portion directly to the school, so you don't see it anymore. The BAH will be direct deposited into your account. For people with a GI Bill and in-state tuition, there won't be any law school debt anymore, but some may come out with more money than they started with :shock:

LSATfromNC
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Re: New GI Bill

Postby LSATfromNC » Thu Jan 01, 2009 4:31 pm

If they deposit the full tuition with the school and you are on a full ride what happens to the money?

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Boyk1182
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Re: New GI Bill

Postby Boyk1182 » Thu Jan 01, 2009 4:36 pm

LSATfromNC wrote:If they deposit the full tuition with the school and you are on a full ride what happens to the money?


I don't think they will ever overpay the school.. if it's cheaper than their max they will just pay the amount. That's the difference, they used to pay me $1,200 or so a month, straight to my account. Now you don't see the tuition portion... On the V.A. website it even says you *might* be able to get back the $1,200 you bought in to the GI Bill with, and *might* be able to work out some kind of deal (it has a name, I forgot), where they will pay more than that max amount if you go to a private school... you're right dude, it's crazy now what you get 8)

LSATfromNC
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Re: New GI Bill

Postby LSATfromNC » Thu Jan 01, 2009 4:45 pm

It would not be over paying. For instance I have a 35,000 scholarship at Hofstra, the total tuition is 37k. The VA will pay up to 9,500 to a school in new york (provided the tuition is that high). So with the scholarship and tuition payment my bill at the school would actually be -$6,5000. The VA would not be aware I am on a scholarship as it is not need based aid, what happens to the positve balance of 6500?

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Rotor
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Re: New GI Bill

Postby Rotor » Thu Jan 01, 2009 4:51 pm

Boyk1182 wrote:
LSATfromNC wrote:If they deposit the full tuition with the school and you are on a full ride what happens to the money?


I don't think they will ever overpay the school.. if it's cheaper than their max they will just pay the amount. That's the difference, they used to pay me $1,200 or so a month, straight to my account. Now you don't see the tuition portion... On the V.A. website it even says you *might* be able to get back the $1,200 you bought in to the GI Bill with, and *might* be able to work out some kind of deal (it has a name, I forgot), where they will pay more than that max amount if you go to a private school... you're right dude, it's crazy now what you get 8)


http://www.gibill.va.gov has a lot of good FAQs on the new GI Bill. As has been said above, you won't see excess tuition like on the MGIB. That goes straight to the school. If you get a full ride on a merit scholarship, the VA won't have to pay tuition, but you'll still get the books, housing, tutoring (100/mo up to 1200 total I think) and the certification exam (i.e. Bar exam) allowance up to $2k as a one time pmt (so you'd better pass first time!)

All in all a great deal, but I do wonder with my offers so far ifthe schools are factoring in the GI Bill with their scholy offers. The program where the VA and the school can agree to split the amount over the local in state UG tuition is the yellow ribbon program. When you negotiate your financial aid, don't forget to ask if the school participates. It could be a good way to get a full scholy at less than full scholy money from the school.

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Boyk1182
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Re: New GI Bill

Postby Boyk1182 » Thu Jan 01, 2009 4:53 pm

LSATfromNC wrote:It would not be over paying. For instance I have a 35,000 scholarship at Hofstra, the total tuition is 37k. The VA will pay up to 9,500 to a school in new york (provided the tuition is that high). So with the scholarship and tuition payment my bill at the school would actually be -$6,5000. The VA would not be aware I am on a scholarship as it is not need based aid, what happens to the positve balance of 6500?


Ahh, I'm not totally sure about that... When I talked to them, they told me that the tuition payment will be dealt with between the V.A. and the school (I asked this question too because I am hoping to pay in-state tuition). I don't think that the money allotted for tuition can be paid to you, they will just pay what the school requires for payment.. I'd call and ask, cuz you never know.

edit: Yellow Ribbon Program, that's what I was referring to above...

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Rotor
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Re: New GI Bill

Postby Rotor » Thu Jan 01, 2009 4:55 pm

LSATfromNC wrote:It would not be over paying. For instance I have a 35,000 scholarship at Hofstra, the total tuition is 37k. The VA will pay up to 9,500 to a school in new york (provided the tuition is that high). So with the scholarship and tuition payment my bill at the school would actually be -$6,5000. The VA would not be aware I am on a scholarship as it is not need based aid, what happens to the positve balance of 6500?


The VA will only pay the 2k balance. But you'll be on a full ride w/housing and books! How sweet huh?

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Cole S. Law
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Re: New GI Bill

Postby Cole S. Law » Sun Jan 04, 2009 12:44 am

I just attended a VA briefing on the new bill. The funny thing is that the VA is just as confused as all of us. I asked this exact question and the presenter said "I don't think so." Congress kind of dumped this in the laps of the VA without giving them much guidance or a budget. Don't get me wrong, I'm very grateful, but the whole thing is a major SNAFU. They've actually got an entire Navy automation unit working round the clock to rig this thing together before August. I don't anticipate a glitch free launch.

Here's another question. If I go to a school in Illinois, will they pay anything? Illinois vets go to state school for free, but I'm not from there. The whole "most expensive in state tuition" stipulation is too confusing. They should have made it the average of all 50 states to simplify everything. Unfortunately, as we all know simplification is never what the policy makers think is important.

Also, don't bother submitting a question to VA through the website. I tried that and got a worthless autoreply stating that I would just have to apply in August to see if I'm fully eligible. A total CF.

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nateDgr8
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Re: New GI Bill

Postby nateDgr8 » Sun Jan 04, 2009 1:22 am

All I know is that with this plus a tax free and expense free year in Afghanistan the LS debt issue is not quite as scary any more. Thank you Senator Webb.

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Cole S. Law
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Re: New GI Bill

Postby Cole S. Law » Sun Jan 04, 2009 12:29 pm

Senator Webb is my hero. With two kids, law school wasn't even an option until this bill came along. My path has diverged from online MBA to respected law schools and I couldn't be more excited.

Fake_ID
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Re: New GI Bill

Postby Fake_ID » Tue Jan 06, 2009 5:26 pm

If any of you plan on going to need only financial aid institutions, or any school in the top-14 for that matter, could you make a post about how the new GI Bill affected your FinAid offer.

I've decided to join the military before starting law school and, while I'm certain things will be smoothed out once my commission is up, I need some insight since I'll have to choose between the GI Bill and the SLRP (65k for Army) when/before I accept my commission.

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Rotor
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Re: New GI Bill

Postby Rotor » Tue Jan 06, 2009 8:05 pm

Fake_ID wrote:If any of you plan on going to need only financial aid institutions, or any school in the top-14 for that matter, could you make a post about how the new GI Bill affected your FinAid offer.

I've decided to join the military before starting law school and, while I'm certain things will be smoothed out once my commission is up, I need some insight since I'll have to choose between the GI Bill and the SLRP (65k for Army) when/before I accept my commission.

Since the new GI Bill doesn't take effect until 1 Aug it's going to be some time before anyone gets back to you. I am expecting many bumps in the road in getting the first semester tuition paid.

As for the either/or on the programs? You may not be able to use them concurrently for the JD, but the old MGIB restriction that had you choose between other funded programs is gone (i.e. Academy/ROTC scholy qualify on the new Bill). Only stipulation in the legislation is if you used up your MGIB, you can't also get the post-9/11.

Unfortunately the VA itself isn't sure yet how every aspect is going to work. Stay tuned (http://www.gibill.va.gov)

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Cole S. Law
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Re: New GI Bill

Postby Cole S. Law » Tue Jan 06, 2009 10:10 pm

Fake_ID wrote:If any of you plan on going to need only financial aid institutions, or any school in the top-14 for that matter, could you make a post about how the new GI Bill affected your FinAid offer.

I've decided to join the military before starting law school and, while I'm certain things will be smoothed out once my commission is up, I need some insight since I'll have to choose between the GI Bill and the SLRP (65k for Army) when/before I accept my commission.


How are you getting your commission? Unless they changed the rules pretty recently, you won't get SLRP for being an officer. Sucks I know. I had to choose between OCS and 65K + 16K bonus enlisted.

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Cole S. Law
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Re: New GI Bill

Postby Cole S. Law » Tue Jan 06, 2009 10:17 pm

Also, if you do get offered the loan repayment you will have to serve more than one term of service to qualify for the new GI bill. You owe the Army 3 or 4 years for giving you the SLRP. Then the clock starts for your post 9-11 GI Bill. To qualify for both with 100% gi payment you would need to serve 6-7 years. The Army always gets its pound of flesh.

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Rotor
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Re: New GI Bill

Postby Rotor » Tue Jan 06, 2009 11:28 pm

I'm an academy grad getting ready to retire. I was never eligible for MGIB, but pleasantly surprised that Webb made everyone eligible (subject to the reasonable addl time limits mentioned above)

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Rocky Estoppel
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Re: New GI Bill

Postby Rocky Estoppel » Wed Jan 07, 2009 3:38 pm

So if I used up all of the GI Bill in undergrad this will be useless to me in law school, correct? I don't have any more benefits, right?

LSATfromNC
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Re: New GI Bill

Postby LSATfromNC » Wed Jan 07, 2009 4:53 pm

I believe the answer is no, you have no benefits left to transfer. I have 21 months of benefits left :)

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Rotor
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Re: New GI Bill

Postby Rotor » Wed Jan 07, 2009 4:57 pm

kak23 wrote:So if I used up all of the GI Bill in undergrad this will be useless to me in law school, correct? I don't have any more benefits, right?

That's my understanding. Section 3324(c) "Applicability to Individuals Under Montgomery GI Bill" says you may only elect the post-9/11 benefits if you have any unused entitlement under the various titles/chapters of educational assistance (or never elected MGIB in the first place).

As always, I would check with the VA to be sure (once they get the admin straightened out). The Act gets a bit complicated in determining months of eligibility remaining, so even if you might qualify for a month or two that you thought was used up, it's better than nothing.


Good luck!

Fake_ID
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Re: New GI Bill

Postby Fake_ID » Wed Jan 07, 2009 7:27 pm

Cole S. Law wrote:
Fake_ID wrote:If any of you plan on going to need only financial aid institutions, or any school in the top-14 for that matter, could you make a post about how the new GI Bill affected your FinAid offer.

I've decided to join the military before starting law school and, while I'm certain things will be smoothed out once my commission is up, I need some insight since I'll have to choose between the GI Bill and the SLRP (65k for Army) when/before I accept my commission.


How are you getting your commission? Unless they changed the rules pretty recently, you won't get SLRP for being an officer. Sucks I know. I had to choose between OCS and 65K + 16K bonus enlisted.


The military is offering the SLRP to Officers now. For those commissionning in the Army, it's up to 65k of applicable loans and, for those commissioning in the Marine Corps, it's up to 33k. I'm not sure about any other branch.

The only thing that sucks about it is that the money paid out is treated as taxable income.

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Cole S. Law
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Re: New GI Bill

Postby Cole S. Law » Wed Jan 07, 2009 8:45 pm

Fake_ID wrote:
Cole S. Law wrote:
Fake_ID wrote:If any of you plan on going to need only financial aid institutions, or any school in the top-14 for that matter, could you make a post about how the new GI Bill affected your FinAid offer.

I've decided to join the military before starting law school and, while I'm certain things will be smoothed out once my commission is up, I need some insight since I'll have to choose between the GI Bill and the SLRP (65k for Army) when/before I accept my commission.


How are you getting your commission? Unless they changed the rules pretty recently, you won't get SLRP for being an officer. Sucks I know. I had to choose between OCS and 65K + 16K bonus enlisted.


The military is offering the SLRP to Officers now. For those commissionning in the Army, it's up to 65k of applicable loans and, for those commissioning in the Marine Corps, it's up to 33k. I'm not sure about any other branch.

The only thing that sucks about it is that the money paid out is treated as taxable income.


Don't worry too much about the taxability. Even with the loan payments, I usually got money back. You have to remember that your housing allowance isn't taxable so as far as the IRS is concerned you don't actually make very much. The one time I did have a problem was 2006. I was deployed the whole year, so they didn't take any taxes out. I came home to an unexpected $3500 tax bill. Luckily I hadn't blow my entire deployment earnings on tatoos and rims.

Giddy-Up
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Re: New GI Bill

Postby Giddy-Up » Wed Jan 07, 2009 8:57 pm

Here is my question: I am on full scholarship, but switched to part time after my 1st year because I got this pretty cool job, but still on full scholarship. So, this past semester I got the 3/4 rate (I took 9 credits), which was still $1100 a month. Next year I plan to be 3/4 time, and as I read it I will be eligible for the BAH (at least 3/4 time to be eligible) Since the housing allowance is not pro-rated, unlike the current payment, I think this may work out very well. I would only be seeing the housing payment anyway, and this way it runs out a little more slowly since my benefits will be charged at the 3/4 rate. (The question part of this is whether my reasoning is correct)

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Rotor
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Re: New GI Bill

Postby Rotor » Wed Jan 07, 2009 11:18 pm

Giddy-Up wrote:Here is my question: I am on full scholarship, but switched to part time after my 1st year because I got this pretty cool job, but still on full scholarship. So, this past semester I got the 3/4 rate (I took 9 credits), which was still $1100 a month. Next year I plan to be 3/4 time, and as I read it I will be eligible for the BAH (at least 3/4 time to be eligible) Since the housing allowance is not pro-rated, unlike the current payment, I think this may work out very well. I would only be seeing the housing payment anyway, and this way it runs out a little more slowly since my benefits will be charged at the 3/4 rate. (The question part of this is whether my reasoning is correct)


I haven't seen anything about prorating BAH. Only stipulation is to be going at least half-time. For four year programs (e.g. U/G, JD + joint degrees), anything less than full time means benefits will run out. But for you, it seems like as long as you finish up within the 36 months, you should be set.

Fake_ID
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Re: New GI Bill

Postby Fake_ID » Thu Jan 08, 2009 3:16 pm

Cole S. Law wrote:Don't worry too much about the taxability. Even with the loan payments, I usually got money back. You have to remember that your housing allowance isn't taxable so as far as the IRS is concerned you don't actually make very much. The one time I did have a problem was 2006. I was deployed the whole year, so they didn't take any taxes out. I came home to an unexpected $3500 tax bill. Luckily I hadn't blow my entire deployment earnings on tatoos and rims.


What I meant to imply is that the true value of the SLRP is a bit less than 65k.

Lets say one has 65K in applicable loans. That being the case, the military would dish out ~$21,666 per year. Assuming an O-1 <2 pay grade of $2,655 per month, one would be earning $31,860 and, living in a tax exempt state, would only pay 15% for income tax (under 1k would fall in the 25% bracket). With the SLRP added in, from what I understand, it would bring one's taxable income up to ~$53,500 so the entirety of the added SLRP amount would be taxed at 25%. The way I see it, that would bring the value of the SLRP down to about $49k and the new GI Bill, considered a resource and being tax exempt, seems like it would be a way better deal.

I'm not concerned about paying the required taxes if I take the SLRP, I'm concerned about the bottom line in regards to how much it is really worth in comparison to the new GI Bill. Alas, like someone else has mentioned, the new GI Bill doesn't take effect until Aug. of '09 so I guess I'm SOL...I have to make my decision before then.




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