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GI Bill state caps rise for many veterans

Tuition and fee caps under the Post-9/11 GI Bill are increasing in most states for the fall 2010 school term, which is good news for students who are affected by the caps set for every state.

For example, the maximum charge per credit hour is increasing by 71 percent in South Carolina, 39 percent in Missouri, 34 percent in the District of Columbia and 30 percent in Mississippi under state tuition and fee limits set Aug. 30 by the Veterans Affairs Department.

But the news is not all good — some veterans attending private schools or graduate programs could be in for a shock this fall when their Post-9/11 GI Bill payments dramatically drop. (See all the rates)

Student veterans in Minnesota attending private colleges where tuition and fees exceed the state caps, for example, are seeing maximum credit hour charges that are 40 percent below the fall 2009 term, a decline that could reduce VA payments by as much as $7,000 for full-time students.

Big drops in maximum fee charges per term are also being seen in Florida, New Mexico, Washington and the District of Columbia, which could leave students with more out-of-pocket costs if they aren’t public-school undergraduates paying in-state tuition. The biggest percentage drop — 50 percent — comes in the District of Columbia.

Tuition and fees under the new GI Bill are based on charges for in-state undergraduates at the most expensive public college or university in each state.

For many veterans, the newly published rates will create confusion because of big increases in the maximum fees that result largely from expenses related to flight training at public colleges.

As a result, the new fee cap is $85,255 in Utah, $50,752 in Kansas and $45,774 in Colorado. The Kansas limit represents a 1,234 percent increase over last year’s $3,804 limit.

Big jumps in fee caps do not necessarily mean huge increases for most student veterans, because VA pays the actual fees charged to students.

VA and major military and veterans groups are working with Congress on a new benefit structure that would create a single, nationwide cap on tuition and fees to replace the current individual state limits.

Under the proposal, already approved by the Senate Veterans’ Affairs Committee and expected to be considered soon by the House Veterans’ Affairs Committee, VA would continue to fully pay in-state tuition and fees for undergraduates, and would pay up to $20,000 in tuition and fees for all other students. That cap would be adjusted each year to keep pace with the overall rise in tuition and fees.

VA has no say over increases or decreases in state tuition and fee caps; the limits are based on tuition and fees reported to VA by state approving agencies.