Updated: July 12, 2007

Summary

Eight million veterans got their education thanks to the World War II GI Bill, which covered tuition, fees, and books, and gave veterans a living stipend while they were in school.  Presidents Gerald Ford and George H.W. Bush, Senators Bob Dole and Patrick Moynihan, and authors Norman Mailer and Frank McCourt all used the GI Bill.  A 1988 Congressional study proved that every dollar spent on educational benefits under the original GI Bill added seven dollars to the national economy in terms of productivity, consumer spending and tax revenue.

The current educational benefits offered to veterans are far lower than the original GI Bill.  Today, after contributing a nonrefundable $1,200-$1,800 from their first military paychecks, troops can receive a total of roughly $45,000 towards their education.  Unfortunately, this covers only 60-70% of the average cost of four years at a public college or university, or less than two years at a typical private college.

In addition, structural problems and bureaucratic delays discourage veterans from using their GI Bill benefits.  Although 95% of veterans pay the nonrefundable $1,200 contribution, only 8% of veterans use their whole benefit and 30% of veterans don’t use their GI Bill at all.  These veterans have contributed $230 million to the national treasury, but received nothing in return. 

At the same time, military recruiting and retention is suffering.  Despite investing $5 billion dollars in recruiting and retention annually, the military has had serious problems recruiting high-caliber enlistees and retaining qualified personnel.  The Army, Army Reserves, National Guard, and Marines all missed recruiting goals in 2004 and 2005, despite increasing their recruiter pool.  The military has responded by lowering standards of age, aptitude and education in new enlistees, and by increasing the amount spent on retention by a factor of six.  These stop-gap measures have temporarily upped troop numbers, but will not address long-term problems with recruiting, especially in light of new plans to expand the size of our Armed Forces. For more information on military readiness, see the IAVA report: “A Broken Military: Iraq War Threatens Readiness.”

Rather than continuing to lower standards and spend billions in bonuses, increasing the Montgomery GI Bill benefits would encourage high-aptitude young people to join the military.  The GI Bill is the military’s single most effective recruitment tool; the number one reason civilians join the military is to get money for college.  As our military recovers and resets in the coming years, an expanded GI Bill will play a crucial role in ensuring that our military remains the strongest and most advanced in the world.