The new GI Bill, being called "a GI Bill for the 21st century," is designedto allow more veterans to cover the full cost of their college education,making it possible for them to rely less on federal student loans, privatestudent loans, or other forms of debt to pay for college. The Post-9/11GI Bill will cover full tuition at the most expensive public college in aveteran's home state, grant up to $1,000 for books and supplies, andprovide a monthly living stipend. Veterans with as little as 90 consecutivedays of service may receive partial benefits toward a college education intheir home state.

"This new GI bill gives Iraq and Afghanistan veterans a chance at afirst-class future," said Patrick Campbell, legislative director for Iraqand Afghanistan Veterans of America. "Our nation has renewed its socialcontract with our men and women in uniform and their families."

The new veterans' benefits will be implemented in two stages to give theDepartment of Veterans Affairs time to transition into the new program.

Current GI Bill participants will start receiving partial benefits from thenew GI Bill today. Full-time students who have three or more years ofactive-duty service will receive a $220-a-month increase, bringing theirmonthly benefit payments up from $1,101 to $1,321. Full-time students withless than three years of service will also see a 20-percent increase intheir monthly benefits, from $894 to $1,073.

Beginning Aug. 1, 2009, some 1.6 million Iraq and Afghanistan veterans whohave completed three years of active-duty service will start receivingtheir full education benefits under the Post-9/11 GI Bill, comparable tothe level of assistance offered to World War II veterans under the original1944 GI Bill, known as the GI Bill of Rights. This original GI Bill helpednearly 8 million veterans pay for a full college education by covering 100percent of their tuition, fees, textbook costs, and providing a smallliving stipend.

The current GI Bill, on the other hand, which expires today as thePost-9/11 GI Bill goes into effect, has been criticized for not keepingpace with the rising costs of a college education: Experts estimate thatthe current GI Bill -- the Montgomery GI Bill -- covers only 60 to 70percent of the average cost of four years at a public college oruniversity, or less than two years of the average cost of a privateinstitution. And since veterans' benefits are counted as income in federalstudent aid calculations, students receiving Montgomery GI Bill benefitsmay not be able to qualify for need-based federal grants and subsidized studentloans to pay for the rest of their college costs that their benefitsdon't cover.

By precluding some veterans from qualifying for low-income grants andcollege loans, the current GI bill forces some of these college-boundservice members to rely on higher-interest unsubsidized federal studentloans, private student loans, andcredit cards. The Montgomery GI Bill also requires veterans to contribute$1,200 -- $100 a month for the first 12 months they're in active duty -- tothe program in order to receive any benefits.

Under the new GI Bill, veterans will no longer required to contribute that$1,200. Veterans will also have 15 years rather than 10 to use their GIbenefits. Military members who are still on active duty as of Aug. 1, 2009,may be able to transfer education benefits to their spouse or dependentchildren.

The Department of Defense will issue an expanded statement of policyoutlining the specifics of the benefits-transfer program and more specificdetails of the Post-9/11 GI Bill in the coming months.

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