As a soldier preparing to separate, I was very interested in the proposed (and ultimately enacted) Post-9/11 GI Bill. That is, I was interested until I crunched the numbers. The new formula would only pay me $1,141 per month based on the ZIP code where I would be attending class, while the old GI Bill will pay $1,321 per month - the difference being more than $2,000 annually in favor of the "old" GI Bill. The difference is reduced to $1,000 when the yearly book stipend is added, and the value of the new GI Bill does exceed the old when the tuition payments are calculated, but that money is sent directly to the school.

The most difficult part of affording school is not the tuition cost (which can be financed by student loans that can be repaid when the investment in education yields employment, which is, after all, the purpose of the investment in the first place), but affording the time spent in class or studying instead of earning a paycheck. When the collective cost of food, gas and clothing is considered, an extra dollar today becomes worth more than the $4,000 I wouldn't have to repay 18 months from now (when I should be able to repay the debt).

-- Sgt. Stephen Bozich

Sgt. Bozich is right about the cash on-hand in the new GI Bill. Under the new process, the tuition payments will be made directly to the school instead of the veteran/student, but the living allowance and books stipend will go to the student.

So starting in fall 2009, instead of receiving a $1,300-plus check every month in the mail, students will see an approximate $1,100 living allowance check instead. Over the course of a school year, that'll mean about $2,000 less in spending money, or about $1,000 less after the books stipend is factored in.

But he's glossing over the $8,000 in tuition debt the new bill will cover (paid directly to the school, so students never "see" it) and saying that veterans can take out student loans, paying those off with future earnings from their degree. In his plan, having more cash on hand now to cover expenses and help him focus on completing his degree is worth more than erasing the debt later but forcing him to get a part-time job now to pay the bills.

I understand his concern, but disagree with the assessment. Trading $4,000 in cash on-hand for about $24,000 in after-school debt seems like good financial sense to me, and writers of the new benefits were focused on veterans' complaints about mounting college loans when they crafted the plan.

But for folks in school this fall, the move next summer from the $1,300 a month payout to an $1,100 a month payout could mean some surprise belt-tightening. It's another potential pitfall to keep an eye on.