Most people face several major expenses in their lifetimes, such as saving for retirement, buying a home, and paying for their children’s college tuition—if they decide to do so. I would like to help my children with their college expenses to the extent I am able.
Thankfully, we have a big head start on helping pay for their college education because I was able to transfer the Post-9/11 GI Bill to my daughters. College tuition is already very expensive and the cost will likely continue to rise in the coming years. So transferring this benefit will be a huge cost savings for us. What follows is my plan to help pay for my children’s college education.
I’m excited to jump in. But before we get started I need to share a small disclaimer. Paying for college can be incredibly complex as there is an almost infinite number of variables. So this is my plan in its current state. My children are more than 10 years out, so there are many unknown variables at play (when they will attend, which school, how much it will cost, available scholarships, etc.).
What follows is some basic information you can use to tailor to your needs. It will be a good idea to sit down and examine your situation in more depth before your children reach college age. And it may be a good idea to sit down with a counselor to learn more about applying for student aid, scholarships, grants, and other methods of paying for college.
As a parent, you want to provide the best opportunities for your child. A college education can open many doors, but the costs can be daunting. If you served in the military, you may wonder if the GI Bill can help pay for your child’s college. The good news is that the GI Bill does offer options to help fund a child’s education. Let’s take a closer look at how it works.
Transferring Post-9/11 GI Bill Benefits
The Post-9/11 GI Bill is the most comprehensive education benefit for military members and veterans. This version of the GI Bill can cover full in-state public school tuition and fees, provide a monthly housing allowance, and more.
One great feature of the Post-9/11 GI Bill is the ability to transfer unused benefits to dependents. This allows service members to pass along education benefits to spouses and children. Here are some key points about transferring GI Bill benefits:
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You must have at least 6 years of service, with an agreement to serve 4 more years. Some exceptions apply for those nearing retirement
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You can transfer up to 36 months of unused benefits Each dependent gets their own separate 36 month allotment
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The request to transfer must be completed while serving as an active duty or Selected Reserve member. Those who have separated can no longer transfer benefits.
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Dependents can start using the benefits once you have completed 10 years of service.
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Eligible dependents include spouses and biological or adopted children. Step children may qualify under certain circumstances.
Transferring GI Bill benefits to a child can cover a sizable portion of college costs. For the 2022-2023 school year, the GI Bill provides up to $27,828 per academic year for private schools and pays full in-state tuition and fees at public schools.
The key is planning ahead and completing the transfer paperwork while still serving since the option goes away at separation. Work with your Education Services Officer to submit a Transfer of Education Benefits (TEB) request.
Other GI Bill Options
Even if you can’t transfer Post-9/11 benefits, other GI Bill programs may help fund your child’s education.
The Fry Scholarship provides Post-9/11 style benefits to children and spouses of service members who died in the line of duty after September 10, 2001. There is no service time requirement. Fry Scholarship recipients get tuition assistance, a housing allowance, money for books and supplies, and more.
The DEA program (Dependents’ Educational Assistance) provides up to 45 months of education benefits to dependents of veterans with permanent and total service-connected disabilities. Children can start using DEA benefits between ages 18 and 26. The program offers a monthly stipend paid directly to the student for education-related expenses.
While not an actual GI Bill program, the Iraq and Afghanistan Service Grant is available to students whose parent died as a result of military service after 9/11 in Iraq or Afghanistan. If a student is ineligible for the Pell Grant solely due to having too high of an Expected Family Contribution, the Service Grant can provide up to $6,345 a year (the maximum Pell Grant amount) that does not need repayment.
Steps to Take
If you hope to use GI Bill benefits to pay for your child’s education, here are some steps to take:
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Research the options. Each GI Bill program has specific eligibility criteria regarding length of service, disabilities, and more.
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Plan ahead. You must complete the transfer paperwork for Post-9/11 benefits while still actively serving. Other programs have age limits for dependents.
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Calculate how much GI Bill aid you will have available. Make sure your child applies to affordable schools where costs align with potential GI Bill coverage.
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Have your child complete the FAFSA each year, even if you will use GI Bill benefits. This unlocks other potential aid opportunities.
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Contact the school’s veterans office to confirm GI Bill eligibility and coordinate benefit processing.
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Consider savings vehicles like 529 college plans as a supplement to GI Bill coverage.
With forethought, GI Bill benefits can reduce the financial strain of paying for a child’s college costs. Our service members earn these education benefits through dedication and sacrifice. Making the most of them is one way we can honor that commitment.
Frequently Asked Questions
Still have questions about using GI Bill benefits for your child’s education? Here are answers to some common concerns.
When should I transfer my Post-9/11 benefits to my child?
Complete the transfer paperwork while you are still actively serving, as you lose the transfer option upon separation. Wait until your child is nearing college age (16-18) so you don’t use up benefits too early.
What if I have 2 or more children – can I transfer 36 months to each child?
Yes! Each dependent child receives their own separate 36 month allotment when you transfer benefits. You can divide up benefits among multiple children.
Can I transfer benefits to my stepchild?
Stepchildren may be eligible if they meet certain criteria. The stepchild must live with you full time and you must provide at least 51% of their financial support.
What happens if my child doesn’t use all the transferred benefits?
Any unused benefits are lost after the delimiting date (child’s 26th birthday). The benefits cannot be converted back for your own use.
Does my child need to attend college full time to qualify?
No. Benefits are prorated based on enrollment status. For example, a child enrolled half time would receive 50% of the full time benefit amount.
What expenses does the GI Bill cover for my child?
The Post-9/11 GI Bill can cover tuition and fees, housing, books and supplies. Other programs provide a set monthly stipend. Benefits go directly to the student under transferred GI Bill plans.
Can I use the GI Bill if my child attends a technical/vocational program instead of a traditional college?
Yes, GI Bill programs cover accredited training programs, apprenticeships, vocational school, and more – not just standard colleges. The key is making sure the program and institution qualify.
Honor Your Service By Providing Education Benefits
Completing an education is a crucial stepping stone for any young adult. College costs can quickly become overwhelming. As a veteran, the GI Bill benefits you earned through your military service can help open education doors for your children. With planning and research, you may unlock options to fund a sizable portion of college expenses. It’s an investment that allows you to honor your own service by setting up your child’s future success.
The Power of the Post-9/11 GI Bill
The Post-9/11 GI Bill provides 36 months of benefits that cover college tuition up to the maximum in-state college tuition rate, a Monthly Housing Allowance (MHA) equivalent to an E-5 with dependents rate, and a $1,000 annual stipend to help cover the cost of books and supplies. There are also other benefits such as the Yellow Ribbon program that help cover the cost of more expensive private colleges.
Altogether, the Post-9/11 GI Bill, the housing allowance, and other benefits are generous enough to cover college tuition at state schools and many private schools, and it should be enough to provide enough additional income to provide a decent quality of life while attending school.
But it’s only enough to cover college tuition for one person. We’ll look at this in more detail in a moment.
How Much of Your Children’s College Tuition Should You Pay?
We all want the best for our children, but I’m a big believer in taking care of your own needs before saving for college. Why? Because you (or your children) can always borrow money for college. But you can’t borrow money for retirement.
So when it comes to prioritizing our finances, my wife and I make sure we fully fund our emergency fund, save in our IRA and Thrift Savings Plan accounts, and make sure we have met our long term savings needs. Only then do we put additional funds into a 529 College Savings Plan (I’ll discuss the benefits of a 529 plan later in this article).