In the national wires and in the my local paper there are stories about legislation to modify the GI Bill.

(I was a beneficiary of the GI Bill in the previous decade.)

In reading these stories, I can see how people are easily confused by the concept of a GI Bill that covers tuition and one that provides a monthly payment.  In most cases, the monthly payment would exceed full tuition.

According the AP:

"The legislation, sponsored by Democratic Sen. Jim Webb of Virginia and Republican Sen. Chuck Hagel of Nebraska, also veterans of Vietnam, would guarantee full tuition payments to veterans at any public school in their home state."

From the same article:

"McCain says the legislation is too expensive and has proposed his own version, which would increase the monthly benefit available to most veterans to $1,500 from $1,100. It would not offer the equivalent of a full scholarship."

But does the current montly payment or the McCain plan provide the equivalent of a full scholarship?  In some states, yes.  Lets run the numbers.

Tuition for a semester at Washburn University , where I went to college, is currently $185/credit hour.  That is $2,775 semester or $5,550 a year.  Throw in $1,200 for books and fees and total cost is $6,750.

Currently monthly GI Bill for veterans of active duty--$1,100 or $9,900 for an academic year.  (If I remember, two or three of those months were prorated a bit because the semester ended mid month.)

Under the current plan, the GI Bill more than covers books and tuition at Washburn University with some cash left over to pay some rent.

The McCain plan at $13,500 for an academic year covers tuition, books, fees and even the rent at a modest apartment.

In the local paper , there was an article about a Marine veteran and student at the University of Kansas (NCAA Basketball Champion Jayhawks) who appeared at a press event with Rep. Nancy Boyd (Dem. KS-2) supporting the Webb plan.

Tuition at KU is $3,195/semester or $6,390.  Throw in $1,200 for books and fees and the total is $7,590.

Under the current GI Bill, a veteran has $2,310 left over to pay some rent.  Under the McCain plan $5,910 to pay rent, buy pizza, beer, etc.

The Marine in the local paper paid the $600 "kicker" which increased his monthly benefits by $150 a month for a total $1,250 a month or $11,250 for an academic year.

So, would he fare much better under the Webb plan?  Lets look.

In Sec. 3313 of the legislation we find the benefit will cover in state tuition, housing at BAH rate for an E-5 while enrolled and a $1,000 stipend for books.

So, his tuition of $6,390 is covered, plus $1,000 for books and 9 months at the BAH rate of $733 a month in Lawrence, KS for an E-5 is $6,597.

Or a total educational benefit of...$13,987.  At which point he comes out $487 to the better under the Webb plan.

A student at Washburn would get $5,550 for tuition, $1,000 for books and $6,201 for housing.  A total benefit of $12,751.  He would be $749 to the better under the McCain plan.

If the goal of the new GI Bill legislation is, as stated in the local paper, to "...guarantee a full-ride scholarship to any in-state public university, a monthly housing stipend and money for books and living expenses..." then the current GI Bill is doing the job--at least in the low tuition states--and the advantages of the McCain or Webb plan depend on tuition and housing costs on a case by case basis.

Another thing left out of the articles is that veterans also qualify for the full the suite grants and loans.  As an honorably discharged veteran, I filed my own FAFSA (application for financial aid) using my own tax return.  For Pell Grant purposes, the expected family contribution was my own expected contribution.

Most of the veterans entering college will be E-3 or E-4 in the range of $21,000 to $24,000 a year upon discharge.

Depending on the cost of attendance formula, they may be eligible for a Pell Grant.  (I would advise any student to avoid loans.)  With the current GI Bill and a job, a veteran should be able to get by at a public university.  (Between a full time job in Television, a skill acquired in the Marines, and the GI Bill, I did just fine.)

But the colleges often require payment upfront for tuition and a veteran has to be taking classes to get his monthly payment.  Colleges should allow GI Bill recipients to make monthly payments from their GI Bill or the GI Bill should be in a lump sum like in the Webb plan.

The only part of the Webb plan that should definately be implemented is elimination of the $1,200 buy in--the kids buy in with their blood and sweat.  

---