Around the Tubes - 8/17/07

Although military recruiting literature trumpets educational benefits of up to $72,900, for most recruits the benefit tops out at $38,700. That works out to $1,075 a month for 36 months. It might sound like a lot to a teenager looking for help with college, but it’s only 75 percent of the average cost of attendance at a public four-year-college or university. To be eligible for those benefits, servicemen and women have to contribute $1,200 up front, out of their own pockets, during their first two years of service. Virtually all do so, but nearly one-in-three never collect any educational benefits, and they don’t get a refund. Most important, GI Bill benefits are counted as student financial resources when veterans apply for federal student financial aid, making many veterans ineligible for Pell Grants or subsidized student loans that could fill the gap. For recruits from low-income backgrounds, that’s a huge loss.