GI Bill, Education Benefits to transfer to grandchildren, College funding questions

[sheehs1]

I am the grandmother and not from a military family. My daughter married military back in 2012 and he's been in since he was 19. He is currently 37, Special Forces.

I set up 3 UGMA Custodial accounts for my three grandchildren several years ago and have been depositing a bit of money in three college Custodial accounts for them and did so again this Xmas. I have not gone overboard as I want(ed) my daughter and son-in-law invested in the process. My grandchildren are 5, 8 and 10 years old. They each currently have at maturity $35,000 starting at age 18 because I have been using zero coupon bonds. I plan to continue these deposits.

I panicked a bit when I recently looked up the costs of college tuition. With the gifting this year, my son-in-law brought up the GI Post-9/11 bill education benefits and that he has or will be transferring his benefits equally amongst the three children.

Knowing nothing about this benefit, I started looking into it. I have a few questions for those on this board that have experience using this benefit.

1. Do I assume his full benefit is for 36 months which equals 8 semesters or 4 full years of college and except for possibilities of a 12 month extension based on major that this is the cap? ( housing and other things included?)

2. For my planning purposes then, do I assume that if one child gets all the benefits, then we only have to worry about educating the 2 other children? Or said another way, if he transfers equally to the three of them, we only have to plan for 3 years of college for each of the three children instead of 4 years?

3. If you have the Purple Heart, is the benefit still capped at the 36 months? only asking because his brother has it.

4. My son-in-law doesn't have the Purple Heart but has the Silver Star. I've read nothing about the Silver Star.

Without all the specifics, I would just like feedback to know should I plan on college funds as stated above? Either funds for 2 of the 3 children or funds for 3 years instead of 4 years for each.

This is a huge benefit all the way around and by my thinking pays for 33 1/3 percent of what is needed to educate all three. It will make a difference in my planning.

I have asked my son-in-law this same question. At first he really didn't know the specifics of how it would work (because they are not yet at the point in time they can apply for the transfer) but gave me a link.

 

[av8er]

A couple of things to consider with regard to the Post 9-11 GI Bill transferability option: 1) it is intended to serve as a retention tool—the service member will incur a 4x year service obligation that begins when the transfer of benefits is approved. He has likely already applied for the transfer and completed the additional service obligation but, if not, he needs to do that ASAP so he can begin knocking that out well before he intends to retire. 2) the service member must transfer at least one month of the his GI Bill benefit to each of his children/spouse while he’s still on active duty…he can later adjust how he divvies out the benefit but each eligible dependant must have transferred benefits in the system before he retires. https://www.militaryonesource.mil/e...rements include:,date of the transfer request.

Regarding your questions:

1) The VA will pay out exactly 36 months of the benefit, divvied out to each child and/or spouse as the service member sees fit. Not tracking an option for the 12 month extension you mentioned based upon major. If the service member has used any of the benefit for his own education, then the total 36 months is reduced (ie-if the service member used 9 months himself, the transferable benefit would be reduced to 27 months). https://www.va.gov/education/about-gi-bill-benefits/post-9-11/

2) Yes

3 & 4) Not tracking any additional benefits beyond 36 months specifically for Purple Heart or Silver Star recipients. However, based upon level of VA disability incurred through service, there may be other educational benefits available. https://www.va.gov/education/survivor-dependent-benefits/dependents-education-assistance/

 

[sheehs1]

Thank you so much for replying av9er! It brought to mind another question.
My son-in-law almost has 20 active duty years already (age 38). But I think he plans to stay in. His entire family is military.
I read or thought I did, that the recipient of the transfer must be 18 years of age with a high school diploma and they must use the education benefit before they are age 26. I'll recheck but if this is correct it will be a while before he can transfer to the now 10 year old. even longer before he can transfer to the now 4 year old (5 in Jan). By that time he will have close to and over 30 years, with blessings from above. Is this your understanding as well? It does not read like he can transfer benefits now (due to their ages) but perhaps there is detail or a work around I don't know about.
I am sure before he retires he will be advised what to do.

With the unknowns, perhaps I will continue along and plan on the 4 years for each of the three. I have also left them $$ in my will that will more than cover but I hope to be around to see 1 or 2 of them at least start college. Hence the savings and planning now. it helps for me to understand a bit about how these benefits work.

 

[CRLLS]

I cannot say anything with any certainty. One thing I never realized is that the GI Bill qualifies the student for in-state tuition for schools anywhere within the 50 states. Maybe for territories too? I think there are several versions of the GI Bill with varying benefits depending on when the person joined and what choices they made during their service. Something I never was following. DS is in military for 25 years now. He is transferring his GI Bill benefits to his daughter. She is 17.

Several months ago, we told her parents and her that we didn't want her to limit her choices to only schools where the GI bill would cover her expenses. We would contribute $x toward her education for each of her 4 years. If she used it to get into a higher priced school, great. If the GI Bill covered all of her expenses, we would put that promised money aside each year. When she graduates, we would gift her whatever the remaining amount is to get her started on her adult life. She must graduate.

She has applied to 6 schools I think and has been accepted by 3 of them so far. They are still waiting for relies from the other 3. The GI Bill benefits cover 100% of her tuition and rooming for the 3 accepted schools.

We told our other son that we would offer the same for his 2 children. They are 5 and 6 right now. They thanked us, then added that at the same time, they wanted their daughters to have a bit of skin in the game. Time will tell how any of this works out.

 

[sheehs1]

Thank you CRLLS. In researching and looking at a couple of videos, it seems the GI bill is accepted at most all public and even some private colleges and as you said, thru out the nation. Private colleges have another benefit on top of and in addition to the GI bill called "Yellow Ribbon".
It is huge benefit regardless and one I did not know many details about...until now.

 

[av8er]

Sheehs1,

Your SIL can transfer the benefits as soon as he applies/is approved to transfer and, once he’s completed the associated 4x years service obligation, his spouse or kids (whoever he transferred the benefits to) can use their allocated portion of his GI Bill. To be eligible to receive the transfer, his spouse and kids just have to be in DEERS (Defense Enrollment Eligibility and Reporting System), which they all should be…it’s required to receive medical benefits. Each of his children can use the benefit once they turn 18 (and until each turn 26), even if your SIL has retired by that point. https://www.va.gov/education/transfer-post-9-11-gi-bill-benefits/

 

[ivinsfan]

This certainly would have come in handy for me as a military brat. My Dad got discharged when I was a freshman in HS. When I went to a state college my parents gave me the family "change jar" to help out a little bit! I am very happy this GI Bill option now extends to offspring and I commend the military for making this happen.



I also want to commend your SIL for getting a Silver Star and staying in the military during such turbulent times. We need soldiers like him more then ever.

 

[sheehs1]

Sheehs1,

Your SIL can transfer the benefits as soon as he applies/is approved to transfer and, once he’s completed the associated 4x years service obligation, his spouse or kids (whoever he transferred the benefits to) can use their allocated portion of his GI Bill. To be eligible to receive the transfer, his spouse and kids just have to be in DEERS (Defense Enrollment Eligibility and Reporting System), which they all should be…it’s required to receive medical benefits. Each of his children can use the benefit once they turn 18 (and until each turn 26), even if your SIL has retired by that point. https://www.va.gov/education/transfer-post-9-11-gi-bill-benefits/

Thank you again av8er! They do currently receive TriCare medical. This is great info to know. I know he hasn't yet transferred the benefit to them as he really didn't seem to know even the highest level detail. He just knew he could transfer it (but I am a very detail oriented person! I will pass this info on...
Thank you so much!

 

[sheehs1]

This certainly would have come in handy for me as a military brat. My Dad got discharged when I was a freshman in HS. When I went to a state college my parents gave me the family "change jar" to help out a little bit! I am very happy this GI Bill option now extends to offspring and I commend the military for making this happen.



I also want to commend your SIL for getting a Silver Star and staying in the military during such turbulent times. We need soldiers like him more then ever.

Thank you ivinsfan. Haven't a clue when they extended this to offspring but am glad they did!
We are very proud of him and of course that comes with a bit of worry as well at times. Like now with the turbulent times you mentioned.

 

[jurgs01]

My wife and I both transferred ours, which works out to 24 month each for our three kids.

They get the same benefits a servicemember would get. Basically E-5 BAH and up the the highest in state undergrad tuition.

I am doing a 504 investment plan for each to supplement another year or two.

Anything after that they can get a job and figure it out.

 

[sheehs1]

My wife and I both transferred ours, which works out to 24 month each for our three kids.

They get the same benefits a servicemember would get. Basically E-5 BAH and up the the highest in state undergrad tuition.

I am doing a 504 investment plan for each to supplement another year or two.

Anything after that they can get a job and figure it out.

Wonderful and I hear you regarding anything after what you and your wife have already transferred and planned...they can figure it out!

 

[ncbill]

My wife and I both transferred ours, which works out to 24 month each for our three kids.

They get the same benefits a servicemember would get. Basically E-5 BAH and up the the highest in state undergrad tuition.

I am doing a 504 investment plan for each to supplement another year or two.

Anything after that they can get a job and figure it out.

They could always join the military themselves, since in many states joining the National Guard covers tuition at in-state, public schools.

One of my kids initially planned to move to another state, join the Guard, go through Basic/Advanced, then enroll in that state's flagship university under tuition waivers.

But instead they received a last-minute ROTC scholarship to an out-of-state private university.

 

[av8er]

Thank you again av8er! They do currently receive TriCare medical. This is great info to know. I know he hasn't yet transferred the benefit to them as he really didn't seem to know even the highest level detail. He just knew he could transfer it (but I am a very detail oriented person! I will pass this info on...
Thank you so much!

If your SIL intends to stay in another 4x years, I highly recommend he apply to transfer the benefits as soon as possible so he can begin serving the associated service obligation. I transferred mine to my children in 2009 when the option became available and my oldest just started using it last year—it really is a phenomenal benefit.

 

[Bigdawg]

OP,

DW and I (both 20+ retiree's) used our GI bill beni's for the kids. With DS we paid out of pocket for first year of community college. He was playing junior hockey and CC was cheap. Second year was paid for plus E-5 BAH. Third year he dropped out halfway thru to enlist. Has since finished his degree using active-duty tuition assistance. DD used our GI bill all the way thru master's degree at Trinity University in Dublin Ireland. I still have 7 months left on mine which I will use or lose in the next 4.5 years. Your SIL can use what's called VA vocational rehab $ to pursue any education he wants after he leaves active service. This assumes he has at least a 0% VA Disability rating. With 20+ years in the special forces I can guarantee he will have a disability rating. I'm guessing it will be high if not 100%. If he gets a 100% VA disability rating the kids will go to college free of charge and he will not pay (or will be reimbursed) property taxes. His #1 priority is to give each family member at least one month of his benefit. He can change the #'s later as needed.

 

[sheehs1]

If your SIL intends to stay in another 4x years, I highly recommend he apply to transfer the benefits as soon as possible so he can begin serving the associated service obligation. I transferred mine to my children in 2009 when the option became available and my oldest just started using it last year—it really is a phenomenal benefit.

I will be constructing an email to both my daughter and son-in-law with the details I have been provided on this thread along with the the recommendation of transferring the benefit now so he can start on that 4 year service obligation! Thank you av8er.

 

[sheehs1]

OP,

DW and I (both 20+ retiree's) used our GI bill beni's for the kids. With DS we paid out of pocket for first year of community college. He was playing junior hockey and CC was cheap. Second year was paid for plus E-5 BAH. Third year he dropped out halfway thru to enlist. Has since finished his degree using active-duty tuition assistance. DD used our GI bill all the way thru master's degree at Trinity University in Dublin Ireland. I still have 7 months left on mine which I will use or lose in the next 4.5 years. Your SIL can use what's called VA vocational rehab $ to pursue any education he wants after he leaves active service. This assumes he has at least a 0% VA Disability rating. With 20+ years in the special forces I can guarantee he will have a disability rating. I'm guessing it will be high if not 100%. If he gets a 100% VA disability rating the kids will go to college free of charge and he will not pay (or will be reimbursed) property taxes. His #1 priority is to give each family member at least one month of his benefit. He can change the #'s later as needed.

Thank you Bigdawg. Both my daughter and SIL mentioned something about disability. I don't know what SIL's rating is. They may have mentioned it in reference to his brother because they said all 4 of his brother's children will go to college free..meaning paid for. He is the one with the Purple Heart. They may also have mentioned it since even though SIL is still active, it goes without saying the chances of disability are very high and he is nearing his late 30's.

Thanks to all who have weighed in. Not being from a military family with direct access to the ins and outs of things, this has helped me tremendously. I am the non-military grandmother, worried about her grandhildren's college eductions and saving for them for that. If it doesn't need to be used for education it can be used in other ways for them to start their lives. I feel less panicked as their young years are flying by.
I will certainly have a more in-depth discussion with daughter and son-in-law after I send an email to them.

 

[Bigdawg]

OP, There is a poster on here named Nords (Doug Nordman). He is a retired Naval Officer. He has some great resources including "The Military Guide to Financial Independence". Suggest you buy this book for yourself/SIL. Good luck.

 

[sheehs1]

OP, There is a poster on here named Nords (Doug Nordman). He is a retired Naval Officer. He has some great resources including "The Military Guide to Financial Independence". Suggest you buy this book for yourself/SIL. Good luck.

I remember Nords and will look into obtaining his book. Thank you! If anyone has a link for this book, please share! In the meantime, I will look him up!
Edit: I just found it on Amazon.
Edit#2: And just purchased 2 paperback copies. One for them and one for me.

 

[Nords]

OP, There is a poster on here named Nords (Doug Nordman). He is a retired Naval Officer. He has some great resources including "The Military Guide to Financial Independence". Suggest you buy this book for yourself/SIL. Good luck.

Thanks @Bigdawg!

I remember Nords and will look into obtaining his book. Thank you! If anyone has a link for this book, please share! In the meantime, I will look him up!
Edit: I just found it on Amazon.
Edit#2: And just purchased 2 paperback copies. One for them and one for me.

Thank you for buying the book, @sheehs1! It was written here on the forum.

Please let me know if there are more questions from the book. There's also more niche topics covered at MilitaryFinancialIndependence (my old blog under a new name) and TheMilitaryWallet (under my Doug Nordman byline).