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Leo Shane

GI Bill Mailbag

Reporter Leo Shane answers readers’ questions about new veterans education benefits being considered by Congress.

What about college savings funds?

Posted July 1st, 2008 by Leo Shane
in

Can I use my GI Bill to pay a "Pre-Paid" college tuition program, (529 Plan)?

-- LCDR Mark P. Ormond, USN

 

Sorry -- Troops haven't been able to use GI Bill benefits like that in the past, and there's nothing in the new transferability language which allows servicemembers to stock away the cash for future use.

But remember that the benefits can be used 15 years from a servicemember's date of separation, and that the value of the benefit is tied to the price of in-state schools. When tuition rises there, so does the reimbursement to veterans.

So, if you're eligible to transfer those benefits to a son or daughter and can stick in the service until their seventh birthday, you'll probably still be able to cover four full years at a state college.

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Overseas programs

On July 29th, 2008 Cliff.serwe says:

A few questions on overseas programs: What location is used as a basis for the housing allowance? For example, if someone separates from the military in Germany, their state of legal residence is Texas while in the service, but their retired location is in Germany. What is the basis for the stipend? Secondly, is there a centralized list of approved overseas degree programs? Thanks.

RE: Overseas programs

On July 29th, 2008 Leo Shane says:

I'm checking on this one -- hold tight and I'll post the answer as soon as I get it.

RE: Overseas programs

On July 30th, 2008 Leo Shane says:

Here's what the VBA education service told me:

The law does not provide VA with the method of determining the amount of established charges and housing allowance payable to individuals pursuing training in a foreign country.    Congress is reviewing this issue and may introduce a technical amendment to clarify how payments are to be made for those pursuing training in a foreign country.  

 

So no answer on that part. But a list of programs approved at foreign schools are available at this link, so at least we can get you started there.  

Thanks for the info.

On July 31st, 2008 Cliff.serwe says:

I appreciate the help. The website works great. It'll be interesting to see what Congress provides for overseas students. BAH at a home of record in Arkansas won't pay the rent in Berlin, Germany, that's for sure.