Veterans

Guest Post: GI Bill Battle Only Half Won

Ed Policy — Wed, 06 Aug 2008 19:21:00 -0400

By Jon Oberg

Congress deserves ample credit for approving a significant expansion in the GI Bill education benefits that veterans can use to pay for college. But as a veteran myself, I fear that the benefits are being oversold. Take a recent statement about the GI Bill made by a representative of the Iraq and Afghanistan Veterans of America: "It made going to school your full-time job. You worry about getting into school and you worry about getting as many degrees as you can but the government will worry about paying for it."

Fellow veterans: don't count on it. Although billions more will be spent annually in your name, you may not get as much help as you think. A lot of the money will disappear before you see it.

I used data from the most recent student aid databases (the 2004 National Postsecondary Student Aid Study) to see how veterans fared at four-year public and private colleges, as compared to other undergraduates. The results confirmed my suspicions that despite the government's help, most veterans have been stuck with large amounts of student loan debt and received little in the way of institutional financial aid (the country's largest source of grants) from the colleges themselves.

In short, many colleges have treated veterans as an afterthought. Some institutions have clearly used veterans' GI benefits to replace institutional aid dollar-for-dollar, and shifted the money they saved into merit aid for the kind of high-achieving students that improve their rankings. In such situations there has been no remedy for veterans, as the federal government has largely looked the other way. Many veterans have gotten the message and lowered their educational ambitions.

For the upcoming academic year, Congress has given current veterans' benefits a healthy boost, as a transition to implementing the new GI Bill. But this will not necessarily translate into less debt. I am not aware of any studies that show student debt going down at four-year colleges when spending on federal grants goes up. Other numbers - institutional prices, grants, discounts -- will change, but debt will remain high. That is the way the current "enrollment management" system, in fashion throughout much of higher education, works.

In 2009 and beyond, when the new GI Bill is completely in effect, full-time student veterans will have their tuition fully covered (within certain limits) and will receive a stipend for books and housing, the combination of which should minimize debt. But these generous benefits will be available only to those veterans who have earned full coverage and attend full time. Veterans who have less than 36 months of military service will see their tuition benefits proportionately reduced. Those who attend college only part-time will not receive housing benefits. As a result, a great number of veterans will again find themselves at the mercy of a financial aid system that is decidedly unfriendly to them.

Veterans and non-veterans alike look back fondly at the original World-War II GI Bill that increased higher education access for a whole generation of veterans, many at our nation's top public and private colleges. The influx of veterans also changed many institutions for the better. But that was before the establishment of the current financial aid system. The time has come to acknowledge that the system is not working, considering that Congress, since the Nixon administration, has tried to increase access for low-income students only to see the access gap continue to be as wide as ever.

To be sure, not all veterans will have trouble finding quality colleges friendly to them. States may increasingly step up for veterans. Some private colleges may also reset their priorities to take part in the "Yellow Ribbon Program." Under that excellent provision in the new GI Bill, the Department of Veterans Affairs will match colleges' institutional aid awards dollar-for-dollar, creating a much-needed partnership between the federal government and colleges on behalf of veterans. But for every institution that bravely tries to break away from the loan-obsessed, merit-dominated hegemony of the current system, others have decided that they cannot, and will not, unilaterally disarm. I fear that many institutions will be looking at veterans as an easy mark, carrying a lot of federal cash to convert to their own priorities.

Congress could fix matters by making sure that the federal government and colleges start working together for the benefit of targeted populations, be they veterans or low-income students or both. It would not be the first time Congress has had to step in: lawmakers held hearings and changed the original GI Bill in 1952 to prevent benefit manipulation. I doubt this Congress will act, however, unless veterans fight an even tougher battle than the one that got the new GI Bill passed. In higher education, Congress and the executive branch find it easier to spend than to make programs work, and this new effort may only be the latest in a long list of casualties.

Jon Oberg served as a Navy officer in USS Rainier, USS Arlington, and at the Defense Communication Agency-Europe. He is a former higher education executive and state and U.S. Department of Education official. His views are his own and do not necessarily reflect those of the New America Foundation.

Guest Post: Not Your Grandfather's GI Bill

Ed Policy — Thu, 17 Jul 2008 19:26:00 -0400

By Robert Mackey

In 1944, Franklin Roosevelt signed into law the “Servicemen’s Readjustment Act,” what would be commonly called the “GI Bill.” It was a model of success, educating future presidents, Nobel Prize winners, writers, poets, musicians, and teachers, as well as a generation of mechanics, farmers, and technicians. By the time it expired in 1956, it had changed the face of American higher education and boosted a generation into the middle class.

On June 30, President Bush signed into law the newest version of the GI Bill, legislation that promised to reward the service of the men and women who have worn the uniform since September 11, 2001. This measure, which would significantly expand higher education benefits for veterans, has won bipartisan acclaim, with only a slight ripple from those concerned that the recipients of said governmental largesse will flee from the military in droves, cash in hand, ready to actually go to college.

These critics need not worry because, despite the hype, this bill is not really a new version of the World War II bill at all, but in many ways a repackaged enlistment benefit meant to tie the individual servicemember to the military for decades before full privileges are earned.

The original GI Bill was simply a reward for service. It was intended to ensure that troops coming back from World War II were able to get an education, move into the middle class, and contribute to the system, in stark contrast to how veterans had been treated since the American Revolution (a small "separation" pay if you were lucky, your likely ragged uniform and out the door). Most importantly, the original bill was not tied to future service—you didn’t enlist to gain the benefits; your past service was the only deciding factor. And the actual amount of money involved could be substantial: full tuition, books, room and board were covered until 1952, when an amendment to the act changed it to a simple stipend ($110 a month, the equivalent of about $900 in 2007).

Now, don’t get me wrong, the new bill also is generous, especially for those veterans who have not yet attended college. The new bill will cover the cost of tuition equal to “the most expensive in-State public institution of higher education”—big money if you are going to an expensive college. If you served for 36 months after 9/11, you get 100 percent of the entitlement; it is downgraded from there based on shorter service periods. Veterans also will receive $1,000 each year for books and supplies, and a housing allowance equal to that of an E-5 (in military jargon, the code for an Army or Marine sergeant, Air Force staff sergeant, or Navy Petty Officer 2nd Class). That is no small benefit—it would amount to as much as $1,855 a month for veterans living in Washington, DC. In all, the new GI Bill could provide eligible veterans with nearly $130,000 to pay for an undergraduate degree.

In addition, the legislation includes a transferability option—allowing a veteran to “transfer” at least some of the benefits to his or her spouse or children. This is a great idea, as most people in the military just do not have the money to save for their children’s college. On a personal note, this would be a great option for me as I am all “schooled out” (in full disclosure, I have a Ph.D. and two Master’s degrees) and would like to use the added benefits for my kids.

But wait, it turns out that the start date for transferability is Aug. 1, 2009—meaning that you would have to be on duty that day to qualify. In other words, every veteran who left the military between Sept. 12, 2001, and July 31, 2009, is automatically disqualified from transferring the benefits. And, as the vet will have had to serve for at least six years to transfer the benefit to his or her spouse (10 years to transfer to children), it means that the first time a transfer check could go to a family member may be 2015, depending on how the the different military branches determine eligibility. Possibly more than 100,000 veterans, including those who retired, were medically discharged, or fulfilled their service requirement, will be denied the transferability benefit patriotically embraced by leaders on both sides of the aisle and in the White House. Thanks a lot.

Instead of helping veterans serving in current wars who would like to leave the military, this legislation is a stick—not a carrot—intended to keep them in. For those who left the military between 2001 and 2009, they are second-class veterans, with no ability to give their benefit to their families. And those who enlist after Aug. 1, 2009 are forced to indenture themselves for upwards of 10 years to pass the benefits to their children.

Congress needs to close the transferability loophole that prevents veterans who served from 2001 to 2009 from sharing their already earned benefits with their families. It also needs to make the entire GI Bill, including transferability, available after three years of honorable service, instead of pushing the program into the next decade. If Congress wants to encourage “lifers” who serve 20 years or more, it should provide additional higher-education related benefits to long-service personnel, such as transferable housing allowances or stipends to family members, to those that dedicate their lives and their families’ fortunes as well to the nation.

In the original GI Bill, GI stood for “Government Issue”—the self-effacing slang used by the soldiers of World War II when speaking about themselves. In the new GI Bill, Congress needs to ensure that the “I” in “GI” does not stand for “incomplete.”

Robert Mackey is a retired U.S. Army officer and veteran of the invasion of Panama (1989), Operation Desert Storm (1991), and Operation Iraqi Freedom (2003). He is a military historian, author of The UnCivil War: Irregular Warfare in the Upper South, 1861-1865, and a regular contributor to the Huffington Post. Views expressed herein are his own and do not necessarily reflect the positions of the New America Foundation.

Higher Ed Roundup: Week of June 16 - June 20

Ed Policy — Fri, 20 Jun 2008 21:16:00 -0400

Compromise Reached on Major Expansion of G.I. Benefits

Bill Would Prevent Lender Discrimination

New SAT Little Better than the Old One

Compromise Reached on Major Expansion of G.I. Benefits

The White House and Congressional Democrats reached a compromise this week on legislation that would significantly increase education benefits for returning veterans, averting a showdown that could have been politically costly for the Republican Party heading into the Presidential election. Under the measure, which was originally sponsored by Sen. Jim Webb (D-VA), military personnel who have completed three years of service after 2001 would be eligible for scholarships covering up to the full cost of attendance at the most expensive public college in the veterans' home states. They would also receive a housing stipend, book allowance and money for tutorial assistance. President Bush had vowed to veto the measure, saying that the proposal, which would more than double the value of the current benefit to about $90,000, was too costly and could harm the country's all-volunteer force by enticing soldiers to leave the military to pursue their studies. The White House dropped its opposition to the measure last week, after Democratic leaders agreed to insert a provision sought by Republican lawmakers that would allow military personnel who agree to serve for at least 10 years to transfer their educational benefits to their children or spouses.Shortly after the compromise was reached, the House overwhelming approved the bill. The Senate is expected to take a final vote on the legislation next week and then send it to the President for his signature.

Bill Would Prevent Lender Discrimination

Democratic Senators Christopher Dodd of Connecticut and Patty Murray of Washington introduced legislation on Tuesday that would bar lenders from refusing to provide federal loans to students based on the type of institution they attend. The Senators decided to introduce the "Preventing Student Loan Discrimination Act" after reading reports that some of the nation's biggest banks, such as Citibank, have decided to stop making loans at community colleges and some state universities. "Lenders offering loans backed by taxpayer dollars shouldn't be able to discriminate against certain schools or students," Senator Murray said in a statement. Some lenders and financial aid administrators, however, warned that the measure could push more lenders out of the market if it forces them to make potentially unprofitable loans. Meanwhile, Sen. Edward Kennedy (D-MA) sent a letter to community college leaders urging them to consider switching to the Direct Loan Program "in order to ensure students can access student loans even if private lenders refuse to offer federal loans to their students."

New SAT Little Better than the Old One

The addition of a new writing section to the SAT "did not substantially change" the aptitude test's ability to predict first year college grades, according to a recent evaluation by the College Board. In 2005, The College Board added the writing section to the SAT amid criticism that the old test was not an accurate predictor of college success and that it gave an unfair advantage to wealthier students who could afford coaching. The report, based on the test scores and grades of 150,000 students at schools across the country, found that the new exam is little better than the old one and that high school grades remain the most accurate predictor of academic success for students in their freshman year of college.

Higher Ed Roundup: Week of May 26 - May 30

Ed Policy — Thu, 29 May 2008 21:49:00 -0400

Looming Showdown Over G.I. Benefits

College Board Selling Data on Needy Students to Help Schools Diversify

First-Generation College Students Face Graduation Gap

Looming Showdown Over G.I. Benefits

Congress appears to be heading for a showdown with the White House over an emergency spending bill that would substantially increase education benefits for returning veterans. Last week, the Senate passed by a veto-proof margin of 75 to 22 legislation funding the Iraq War that contains an amendment, sponsored by Sen. Jim Webb (D-VA), that would cover up to the full cost of attendance at the most expensive public college in a veteran's home state for those who served in the military after Sept. 11, 2001. Under the measure, tuition and fees would be paid directly to colleges, averaging about $1,700 a month per veteran, up from the current $1,101. President Bush has vowed to veto the measure, saying that Webb's proposal is too costly and and that it could harm the country's all-volunteer force by enticing soldiers to leave the military to pursue their studies. The bill now goes back to the House, which already passed it by a vote of 256 to 166, where the proposal's supporters will see if they can attract enough additional votes to override a possible veto.

College Board Selling Data on Needy Students to Help Schools Diversify

The College Board has begun a pilot program aimed at helping colleges recruit students from low-income families. With elite colleges under fire for failing to enroll an economically-diverse student body, officials from these schools have been pressing the College Board to provide them with mailing lists of low-income students who are academically-qualified to attend their institutions. The College Board used to provide admissions officers with the income data of promising students who have taken the SAT but stopped in the early 1980s when it discovered that many colleges were using the data to recruit wealthy students who would be able to pay the full price of tuition. Under the new experimental program, the College Board still won't provide direct income data. Instead, it will sell colleges lists of students who live in low-income neighborhoods or attend high schools that primarily serve disadvantaged students. "We are swearing to use it for good, not evil," Bruce Poch, the admissions dean at Pomona College, told The Chicago Tribune, which first reported the story.

First-Generation College Students Face Graduation Gap

At least one in six college students are the first in their family to go to college but despite that achievement, they are much less likely to earn a degree than other students. A new study by the College Board, echoing findings of a 2005 Ed Department study, found that of those first-generation college students who graduated from high school in 1999 and enrolled at a four-year college, 44.9 percent obtained a bachelor's degree, compared to 59 percent of their peers. The graduation rate gap was even larger among students enrolled at two-year colleges. The gap closed, however, among students with higher SAT scores and high school GPAs. First- generation students with SAT scores of 1500 or higher graduated at a rate of 65.1 percent, compared to 72.7 percent of non-first-generation students.

Pulling a Bait and Switch on Veterans

Ed Policy — Thu, 16 Aug 2007 01:00:00 -0400

If you've seen an action film this summer, odds are you've also seen a slick advertisement touting the benefits of joining the Army or Marines-including help paying for college. You won't hear the word "Iraq," and as the Washington Post reported last week, it…

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