Before the Post 9/11 GI Bill came into existence (on August 1, 2009), Reservists and National Guardsmen called to active duty acquired eligibility for the REAP GI Bill. Many veterans were still using REAP as of the 2015 fall semester.
However, due to the implementation of the National Defense Authorization Act of 2016, REAP ended on November 25, 2015. So how does this affect veterans using this GI Bill or who still have eligibility to use?
Basically, there are three scenarios:
- Using REAP on November 24, 2015 – For veterans going to school under REAP as of the November date, nothing will change and they can keep using their Reserve GI Bill until November 25, 2019.
- Applied for REAP, but were not using it on November 24th – Veterans not attending school on the November date are no longer eligible to use REAP.
- Not yet applied for REAP as of the November date – Veterans that still have eligibility under REAP, but never applied to use it, are no longer eligible to use REAP either.
Veterans falling into either of the last two scenarios, don’t despair. In most cases, veterans having REAP also have at least some eligibility under the Post 9/11 GI Bill. Eligibility for the Post 9/11 GI Bill goes back to September 10, 2001 so qualifying service of 90 days of more after that date authorizes the New GI Bill. And in many cases, going to school under the Post 9/11 GI Bill is more financially lucrative than using the Reserve GI Bill anyway.
Difference in Payment Structures
Under REAP, payment was established by length of eligible service. A veteran with at least 90 days of consecutive service, but less than one year earned $715.60 per month; service of one year, but less than two, was paid $1,073.40; two years or more of service topped out at $1,431.20 per month. The veteran was responsible to pay tuition, books and other education-related expenses out of this money.
Under the Post 9/11 GI Bill, payment is based in part on an eligibility percentage called a tier. Ninety days of eligible service, but less than six months is rated at 40%. This increases 10% with each six month period of service until it tops out at 100% with three years or more of service.
Keeping that in mind, the VA pays tuition up to the resident rate at VA-approved public schools or up to $21,084.89 per year at private schools, each at 100% eligibility. In addition, students get a book stipend once per semester at the rate of $41.67 per credit (up to the yearly maximum of $1,000) multiplied by the tier percentage. A housing allowance determined by the number of credits taken, school zip code and eligibility percentage is also sent to the student monthly.
For example a veteran with one year of eligible service (a typical deployment length for Selected Reservists) going to Iowa State University full-time under REAP would get a payment of $4,293.60 per semester ($1,073.40 per month for four months) keeping mind that tuition and books must be paid by the student.
Under the Post 9/11 GI Bill, that same student would get 60% of their tuition paid and $3,424.20 per semester in book stipend and housing allowance ($300.02 book stipend and $781.20 per month for four months in housing allowance).
Knowing that tuition and books cost $4,385 per semester for the 2015/2016 academic year at Iowa State, users of the REAP would end up paying an additional $91.00 per semester. Not a bad deal for a semester’s worth of education.
Veterans using the Post 9/11 GI Bill would end up paying $1,764.18 for their 40% of the tuition not paid by the VA and $216.98 for books not covered by the book stipend, leaving $1,143.64 positive cash flow for the semester. As you can see, in this case the Post 9/11 GI Bill with one year of eligible service would be the better deal financially.
The VA is actively working to identify and notify affected new REAP students slated to start the winter semester, however, students should be proactive and call the VA at 1-888-GIBill (Option 1) Monday through Friday, 7 a.m. to 7 p.m. CST ASAP to find out if they are eligible for the Post 9/11 GI Bill or other GI Bill options.
