What is the secret to funding a college education (besides having a rich uncle)?
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Question:
What is the secret to funding a college education (besides having a rich uncle)? — Dana
Answer:
We all know college costs in general are increasing Dana – as a matter of fact, 46 percent over the last decade. If federal and state education money continues to dwindle each year, it is safe to assume the cost of a college education –both online and on-campus — should continue to rise over the next decade.
On average, the undergraduate today proudly walks across the stage with a diploma in one hand and $19,016 in college loans in the other hand. As I said, that is average; for many, that amount is much higher. In a survey by Princeton Review, 86 percent of parents and students stated they thought financial aid is “very necessary.” Sixty-six percent said the recession impacted on which college they chose to attend.
Those are scary facts. But, there is a better way to get a good college education and not step out into the working world with a boat-load of debt, struggling right off the bat to keep your loan-laden boat afloat.
The Secret to Funding a College Education
Most military veterans and servicemembers can get a four-year bachelor’s degree with very little, if any, out-of-pocket cost. Their secret – either using the Tuition Assistance and Tuition Top-Up programs while serving their country or the Post 9/11 GI Bill after getting out (or both).
Tuition Assistance and Tuition Top-Up Programs
All the service branches offer tuition assistance (TA). It pays up to $250 per credit (up to the $4,500 yearly cap). If your per-credit tuition costs more than $250, or you reach your yearly maximum early in the academic year, you can use the Tuition Top-Up program. And while the amount over what TA will pay does come out of your GI Bill entitlement, it is a good way to maximize the use of your GI Bill as benefits are used up at a much slower rate (because TA is picking up most of the costs).
The Post 9/11 GI Bill
Under the Post 9/11 GI Bill, the VA pays 100% of public school resident tuition costs and eligible fees up through the doctoral degree level. If you are paying non-resident tuition rates, then you are responsible for the difference, unless your school is a Yellow Ribbon school as explained below.
If you attend a private school, the VA pays up to $17,500 per year in tuition costs. Whether you attend public or private, each month you will also receive a housing allowance averaging $1,200 per month and up to $1,000 per year in book stipends.
To show the value of the New GI Bill, take a 12-credit semester course at an average of $408 per credit. The VA would pay $4,896 in tuition, $4,800 in housing (assuming a 4-month semester) and $500 in a book stipend for a total of $10, 196 per semester. Over the 9-semester life of the GI Bill, that is $91,764. On both the East and West coasts, the housing allowance can be double the $1,200 average, driving the Post 9/11 GI Bill value even higher.
The Yellow Ribbon Program
If you are paying out-state tuition or private school tuition costs over the VA maximum rate, then another great feature of the Post 9/11 GI Bill is the Yellow Ribbon Program. Ask if your school has a Yellow Ribbon Agreement with the VA and if it includes your degree plan. If so, your school can pay up to 50% of the difference between what they charge and what your GI Bill pays. The VA will pay an equal amount leaving you with very little, if anything, left to pay.
The secret to an almost free four-year education is serving your country. In return for three years of service, not only can you get a degree by using the TA and Tuition Top-Up programs, but you also get 36 months of education benefits that you can use once you are out. Not only will you serve your country and be able to get an education, you earn an entitlement to further your education in the future. It is something to think about – if you don’t have that rich uncle.
Tags: doctoral degree, GI Bill benefits, military service, military veterans, online education, Post 9-11 GI Bill, yellow ribbon program
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