The GI Bill

Keith B. Tooley

The GI Bill designed for our Men and Women of The Armed Forces! We Salute You and all that you do.

The GI BillThe 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 university, 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.[1] By 1956, roughly 2.2 million veterans had used the G.I. Bill education benefits in order to attend colleges or universities, and an additional 5.6 million used these benefits for some kind of training program.[2] Canada operated a similar program for its World War II veterans, with an economic impact similar to the American case

The GI Bill

The G.I. Bill was a major factor in the creation of the American middle class, but also substantially increased racial inequality because many of the benefits of the G.I. bill were not granted to soldiers of color. This is because "at the very moment when a wide array of public policies was providing most white Americans with valuable tools to advance their social welfare—insure their old age, get good jobs, acquire economic security, build assets, and gain middle-class status—most black Americans were left behind or left out."

The GI Bill

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 judge the G.I. Bill a major political and economic 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.

The GI Bill

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 veterans 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 GI Bill 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.

The GI Bill

The GI Bill

President Franklin D. Roosevelt signing The GI Bill into act.

The GI Bill

The GI Bill

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.

The GI Bill

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.

The GI BillAs 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.

The GI BillTo be eligible for VEAP, a veteran had to 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.

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 as of 2012$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.

The GI Bill

The GI Bill

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:•A service-connected disability•A medical condition existing before active duty•HardshipFor 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.

The GI Bill

Educational•College, business•Technical or vocational courses•Correspondence courses•Apprenticeship/job training•Flight training (usually limited to 60%)

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.

The GI Bill Citation

1.Glenn C. Altschuler and Stuart M. Blumin, The GI Bill: a new deal for veterans (2009) p 1182. Olson, 1973 and see also Bound and Turner 20023. Thomas Lemieux, and David Card. "Education, earnings, and the 'Canadian GI Bill,;"Canadian Journal of Economics/Revue canadienne d'économique (2001) 34#2 pp: 313-344. online4. Matthew Desmond and Mustafa Emirbayer, "Racial Domination, Racial Progress: The Sociology of Race in America" (2010) p 1545. Katznelson, "When Affirmative Action Was White" p 1166.Stanley, 20037. Frydl, 20098."The George Washington Uni Profile". DCMilitaryEd.com. Retrieved 2014-01-09.9. Stephen R. Ortiz, Beyond the Bonus March and GI Bill: how veteran politics shaped the New Deal era (2013) p xiii10. Ortiz, Beyond the Bonus March and GI Bill: how veteran politics shaped the New Deal era (2009) p xiii