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Military Money for College: A Reality Check
Sam Diener and Jamie Munro, Peacework
August 27, 2005
The
advertisements blare: Join the military and receive $70,000 for
college! This bonus program, known as the Montgomery GI Bill -
Army/Navy College Fund, is in reality, according to an August 27, 2004
press release from the US Army Recruiting Command, only available to
those who qualify with high test scores, sign up for what the military
deems "critical" military specialties (critical usually means hardest
to fill and least desirable), and enlist for at least six years of
active military duty. Approximately 95% of those who enter the military
are not eligible for this maximum amount.
In fact, 57% of the veterans who signed up for the Montgomery GI Bill
(MGIB) have never seen a penny in college assistance, and the average
net payout to veterans has been only $2151. Primarily, the low average
net is the result of the many military personnel who the Department of
Defense (DoD) declares ineligible, and of the challenges faced by
veterans trying to access the promised money even if they are eligible.
To be eligible for the MGIB, members of the military have to stay in
for at least three years of active duty (except for a select few who
qualify for a two-year active duty stint), and need to receive an
honorable discharge. All enlisted military personnel are required to
have $100 deducted from their salary for the first 12 months they are
in the military to help pay for the program, unless they sign special
forms opting out. This "deposit" is non-refundable. If the member of
the military is later ruled ineligible (see below), they lose the
$1200. The only circumstance in which the $1200 is refunded is if the
enlistee dies on active duty. In that event, their next of kin will
receive a refund.
According to George Richon, of the Strategy Development Team at the
Veterans Administration (VA), since the program began, there have been
3,853,168 individuals who have enrolled in the Montgomery GI Bill
Active Duty program. Approximately 1.5 million of these individuals are
still on active duty, meaning there are approximately 2.35 million
veterans who paid into the program. Yet only 1,650,825 were eligible
for benefits at the time of their discharge, meaning that over 29% of
all those who paid into the program, or approximately 700,000 veterans,
were discharged early or with a less than honorable discharge. These
veterans have thus lost both their $1200 payroll deduction and any hope
of benefits at all.
Of those who were eligible, 1,071,963 have received some money through
the program. The VA uses this figure to claim that 65% of eligible
veterans receive MGIB money. However, a more accurate measure of
long-term utilization rates shows that, of those who signed up for the
military and began paying in to the program, only 43% have received
anything. In other words, more than 57% have, to date, received nothing
(approximately 1.35 million out of 2.35 million).
Furthermore, veterans who serve their full active duty term and receive
an honorable discharge must use the money within 10 years of discharge
from active duty. According to the VA, 29% of those who at one time
were eligible but who enlisted in the MGIB between 1985 and 1994 (and
who are therefore no longer eligible for the program) received no money
at all, and they will never be able to get anything.
Effective October 1, 2004, the maximum amount a GI can receive, unless
they are eligible for the College Fund, is $9036 a year for four years,
still less than the in-state tuition room and board at many state
universities, and only a fraction of the cost of a private college. If
a person attends a two-year community college, the maximum amount per
year restriction still applies, meaning that the maximum benefit they
can receive is half that of a person attending a four-year program. For
the fiscal year ending September 30, 2004, the VA paid approximately
$1.8 billion to 332,031 veterans, for an average of just over $5540
each.
As of September 30, 2004, Lt. Col. Ellen Krenke of the DoD reports that
in the life of the program, the military has garnished $3,781,497,312
from enlistees in the form of the non-refundable payroll deductions
mentioned above. George Richon of the VA says they have paid out,
"approximately $12.9 billion in benefits" under the MGIB Active Duty
Program during the same time period.
Thus, according to data released by the VA and the DoD, the average net
payout to the 3.85 million enlistees who have enrolled in the
Montgomery GI Bill program has been only $2151 ($12.9 billion divided
by 3.85 million enlistees minus the $1200 payroll deduction from each
person), or less than $538 per year at a four year college. A person
with a Massachusetts minimum wage job paying $6.75 an hour would earn,
pre-taxes, $538 in just two weeks of full-time work.
Over the course of 20 years, the Pentagon has paid, in net college
benefits, a total of approximately $9.1 billion, or an average of less
than $466 million per year. By contrast, the civilian US Department of
Education spent $71.6 billion to support undergraduate and graduate
study in 2003 alone, including: $49.1 billion in guaranteed loans,
$15.8 billion in grants, $5.4 billion in education tax credits, and
$1.2 billion in work-study assistance.
Even if one only considered the grants, what the Pentagon spends on
college assistance each year is less than 2.9% of civilian federal
grant aid for college. In 1999, according to the US Department of
Education's National Center for Education Statistics, the average
Federal Pell Grant, which over 30% of undergraduates (over 5 million
students, including over 72% of students in the lowest quartile of
income) receive, totaled $2500 per year. This figure does not include
grants and scholarships from non-federal sources, including colleges
themselves, federal work-study assistance, or federal guaranteed
student loans. Federal civilian assistance for college is still not
enough when compared with the level of need, but it doesn't cost $1200
to sign up for it, one is not liable to put in four years or more of
overtime work only to be declared ineligible at the end of the term,
and one does not have to risk one's life or promise to kill on command
to qualify.
Even for veterans who qualify for the MGIB, there is still one more
surprising twist. When a veteran fills out the Free Application for
Federal Student Aid (FAFSA) form to determine how much they can pay for
college, MGIB money is counted as an asset, and subtracted from
whatever aid package they would have received if they weren't getting
MGIB money. Therefore, the expected out-of-pocket financial
contribution from a veteran will be exactly the same as if they never
entered the military, unless they have become additionally impoverished
by the military's low wages and therefore now have greater need. It's
true that the ratio of grants to loans will generally be higher for a
MGIB recipient, but the total financial aid package will be no greater
than for a non-veteran of equal financial status.
So, why the discrepancy between the advertisements and the reality of
the GI Bill? The Army itself admits that the primary purpose of the
MGIB is to enlist recruits, not to help veterans. In the Army
Recruiting Command's School Recruiting Program Handbook (USAREC
Pamphlet 350-13, section 7.2, as first reported by Draft NOtices) the
Army baldly explains the program's intent: "Purpose: a. To encourage
college-capable individuals to defer their college until they have
served in the Army. b. To fill the various Army skills with capable
individuals. c. To demonstrate to the education community that the Army
is concerned with assisting Soldiers by providing financial assistance
for postsecondary education."
After repeated requests, the Veterans Administration and the Department
of Defense insisted that they do not even track what percentage of MGIB
enlistees actually attain two-year or four-year degrees. When asked to
comment on whether this failure justifies an interpretation that
neither the DoD nor the VA cares about the veterans themselves and
whether or not they are benefiting from the program, George Richon
replied, "The VA is interested in that information. I don't agree with
your interpretation that no one cares, just that there are other
measures that look at the success of the educational assistance
programs." He claims the VA is investigating ways of compiling this
information.
According to the Government Accontability Office (GAO), the military
recruiting budget in fiscal year 2003 is "approaching $4 billion." (See
<www.gao.gov/new.items/d031005.pdf>). The average net amount the
military has spent on the MGIB per year is less than one eighth of what
the military spends on recruitment. According to this same GAO report,
the military advertising budget nearly doubled between 1998 and 2003,
rising to $592 million.
Despite the media barrage, parents, teachers, and coaches (people who
military recruiters call "centers of influence" or "influencers"), are
becoming increasingly skeptical of the military's message. Major
General Michael Rochelle, the Commander of US Army Recruiting, at a
press conference on May 20, 2005, admitted, "I believe that shortly
after September the 11th [2001], the propensity for influencers was
measured at about the 22 percent who would say, yes, I would recommend
military service to a young man or woman of recruitment age. And the
last data point I saw, it's down to -- I think it's 14 percent
<http://www.defenselink.mil/transcripts/2005/tr20050520-2881.html>."
Parents and youth are beginning to heed the message of peace activists
and Veterans for Peace groups: the military's focus is warfighting, not
educating.
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