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Congressional Budget Office
Western Economic Association
94th Annual Conference
July 1, 2019
Elizabeth Bass
Principal Analyst
The Post-9/11 GI Bill:
Beneficiaries, Choices, and Cost
1
CBO
 Overview of the Post-9/11 GI Bill program
 Beneficiaries’ usage: CBO’s findings
 Institutions’ tuition and fees: CBO’s findings
Outline
2
CBO
Overview of the
Post-9/11 GI Bill Program
3
CBO
 Post-9/11 GI Bill took effect in August 2009
–Beneficiaries must have served at least 90 days since September 11, 2001
–No expiration date for using the benefit for veterans who are eligible after
January 1, 2013
 Benefits are available for active-duty service members or veterans, including
members of the National Guard and reserves with qualifying service
 Benefits are available for certain dependents
 Definition of institution of higher learning is broad
–By statute: institution with an “identified educational, professional, or
vocational objective”
–Aside from bartending, unclear what type of programs would be denied
Who Is Eligible? What Programs Are Eligible?
4
CBO
 In-state tuition and fees (100 percent)
–Private institutions, overseas institutions, and non-degree-granting programs
have a tuition cap of $24,477 for the 2019–2020 academic year
 Housing is equivalent to what the Department of Defense pays for a service
member at the E-5 level with dependents for those attending more than half
time
–Amount of housing assistance depends on locality
 Various other related supplies and fees
 Covers 36 months of postsecondary education
–“Academic month” varies by program
–Amount that the Veterans Administration covers begins at 40 percent and
depends on program, full-time/part-time status, and length of qualifying
service
–No monetary cap on in-state tuition or housing payments
What Educational Assistance Is Covered?
5
CBO
 Since inception, about $65 billion expended for veterans and dependents (2010
to 2016)
 Veterans Benefits Administration reported outlays for 2018 as $10.7 billion
–About a tenth of total VBA budget
–About 700,000 people, although not all are enrolled
 Outlays in 2016 were four times greater than they were in 2008 ($2.6 billion)
under the Montgomery GI Bill, the last version of the GI Bill before the current
one
–Additional benefits were added in August 2017
How Much Has Been Spent?
6
CBO
Historical Spending on the Post-9/11 GI Bill
The amount of
money spent per
student each year
under the Post-9/11
GI Bill has remained
about the same since
the law took effect.
Billions of 2018 Dollars Thousands of 2018 Dollars
7
CBO
Total Spending on the Post-9/11 GI Bill, by Beneficiary
Type, 2016
Although the Post-9/11 GI Bill
allows service members to
transfer their benefit to a
spouse or child, the vast
majority of the benefits were
used by veterans themselves.
2018 Dollars
8
CBO
Beneficiaries’ Usage: CBO’s Findings
9
CBO
* Veterans in apprenticeships received about $8,000 in housing, on average.
 Average age at use is 31
 70 percent attended full time in 2016
 About one-third of veterans attended junior college; 18 percent attended
graduate programs; 1 percent were in apprenticeships; and the remainder were
undergraduates*
 The percentages for spouses were similar
 One-third of veterans attended for-profit programs
 By contrast, their children were traditional students: young undergraduates
attending full time, mainly at state schools
 Share of veterans choosing online programs was about the same as share of
students nationwide (13 percent)
Veterans and Spouses Are Nontraditional Students
10
CBO
Type of Education Chosen Under the Post-9/11 GI Bill,
by Beneficiary Type, 2016
Beneficiaries chose
undergraduate programs more
often than other types of
educational programs, but
children were much more likely
to choose undergraduate
programs than were veterans
and spouses.
Percentage of Beneficiaries
11
CBO
Type of Institution Attended Under the Post-9/11 GI Bill,
by Beneficiary Type, 2016
For-profit schools accounted for
a substantial share of the
programs attended by veterans
and spouses under the Post-
9/11 GI Bill. By contrast, most
service members’ children used
the benefit to attend a public
college or university.
Percentage of Beneficiaries
12
CBO
Online Program Use Under the Post-9/11 GI Bill,
by Beneficiary Type, 2016
Few beneficiaries chose online programs. Of those who did, most enrolled in for-profit programs.
13
CBO
Online Program Use Under the Post-9/11 GI Bill,
by Beneficiary Type, 2016 (Continued)
Percent
14
CBO
Average Outlay on the Post-9/11 GI Bill’s Benefits,
by Beneficiary Type, 2016
After housing, tuition and fees
accounted for the greatest share
of the money spent for veterans
and children. Many spouses
attend school while the service
member is on active duty, so they
already receive a housing benefit
through the service member.
Thousands of 2018 Dollars
15
CBO
Institutions’ Tuition and Fees:
CBO’s Findings
16
CBO
Average Tuition Outlay per Beneficiary Under the
Post-9/11 GI Bill, 2017
Type of Education Public Nonprofit For Profit
University, College, or Professional 7,000 10,500 7,600
Junior College 2,400 11,300 11,000
Noncollege Program 4,700 8,700 10,900
Nursing and Health Sciences 9,700 10,000 9,900
Average Tuition Outlay for
Each Type of Institution 4,800 10,500 8,700
2018 Dollars
17
CBO
Most Popular Institutions Under the Post-9/11 GI Bill,
2017
Schools with the most enrollees do not always receive the most tuition. A number of for-profit schools
receive a disproportionate share of tuition payments, while community colleges receive less money
relative to the number of students they enroll.
18
CBO
Institutions That Received the Most Tuition Under the
Post-9/11 GI Bill, 2017
Schools with the most enrollees do not always receive the most tuition. A number of for-profit schools
receive a disproportionate share of tuition payments, while community colleges receive less money
relative to the number of students they enroll.
Millions of 2018 Dollars
19
CBO
The 10 Institutions That Received the Most Tuition Under
the Post-9/11 GI Bill, 2009 to 2017
Since the start of the Post-9/11 GI Bill, a disproportionate share of the money spent on tuition has gone to
for-profit schools. Eight of the 10 institutions that received the most in tuition and fees were for-profit schools.
Of those, two (ITT Technical Institute and Education Management Corporation) have declared bankruptcy,
and Career Education Corporation has sold or closed most of its campuses.
Millions of 2018 Dollars

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The Post-9/11 GI Bill: Beneficiaries, Choices, and Cost

  • 1. Congressional Budget Office Western Economic Association 94th Annual Conference July 1, 2019 Elizabeth Bass Principal Analyst The Post-9/11 GI Bill: Beneficiaries, Choices, and Cost
  • 2. 1 CBO  Overview of the Post-9/11 GI Bill program  Beneficiaries’ usage: CBO’s findings  Institutions’ tuition and fees: CBO’s findings Outline
  • 4. 3 CBO  Post-9/11 GI Bill took effect in August 2009 –Beneficiaries must have served at least 90 days since September 11, 2001 –No expiration date for using the benefit for veterans who are eligible after January 1, 2013  Benefits are available for active-duty service members or veterans, including members of the National Guard and reserves with qualifying service  Benefits are available for certain dependents  Definition of institution of higher learning is broad –By statute: institution with an “identified educational, professional, or vocational objective” –Aside from bartending, unclear what type of programs would be denied Who Is Eligible? What Programs Are Eligible?
  • 5. 4 CBO  In-state tuition and fees (100 percent) –Private institutions, overseas institutions, and non-degree-granting programs have a tuition cap of $24,477 for the 2019–2020 academic year  Housing is equivalent to what the Department of Defense pays for a service member at the E-5 level with dependents for those attending more than half time –Amount of housing assistance depends on locality  Various other related supplies and fees  Covers 36 months of postsecondary education –“Academic month” varies by program –Amount that the Veterans Administration covers begins at 40 percent and depends on program, full-time/part-time status, and length of qualifying service –No monetary cap on in-state tuition or housing payments What Educational Assistance Is Covered?
  • 6. 5 CBO  Since inception, about $65 billion expended for veterans and dependents (2010 to 2016)  Veterans Benefits Administration reported outlays for 2018 as $10.7 billion –About a tenth of total VBA budget –About 700,000 people, although not all are enrolled  Outlays in 2016 were four times greater than they were in 2008 ($2.6 billion) under the Montgomery GI Bill, the last version of the GI Bill before the current one –Additional benefits were added in August 2017 How Much Has Been Spent?
  • 7. 6 CBO Historical Spending on the Post-9/11 GI Bill The amount of money spent per student each year under the Post-9/11 GI Bill has remained about the same since the law took effect. Billions of 2018 Dollars Thousands of 2018 Dollars
  • 8. 7 CBO Total Spending on the Post-9/11 GI Bill, by Beneficiary Type, 2016 Although the Post-9/11 GI Bill allows service members to transfer their benefit to a spouse or child, the vast majority of the benefits were used by veterans themselves. 2018 Dollars
  • 10. 9 CBO * Veterans in apprenticeships received about $8,000 in housing, on average.  Average age at use is 31  70 percent attended full time in 2016  About one-third of veterans attended junior college; 18 percent attended graduate programs; 1 percent were in apprenticeships; and the remainder were undergraduates*  The percentages for spouses were similar  One-third of veterans attended for-profit programs  By contrast, their children were traditional students: young undergraduates attending full time, mainly at state schools  Share of veterans choosing online programs was about the same as share of students nationwide (13 percent) Veterans and Spouses Are Nontraditional Students
  • 11. 10 CBO Type of Education Chosen Under the Post-9/11 GI Bill, by Beneficiary Type, 2016 Beneficiaries chose undergraduate programs more often than other types of educational programs, but children were much more likely to choose undergraduate programs than were veterans and spouses. Percentage of Beneficiaries
  • 12. 11 CBO Type of Institution Attended Under the Post-9/11 GI Bill, by Beneficiary Type, 2016 For-profit schools accounted for a substantial share of the programs attended by veterans and spouses under the Post- 9/11 GI Bill. By contrast, most service members’ children used the benefit to attend a public college or university. Percentage of Beneficiaries
  • 13. 12 CBO Online Program Use Under the Post-9/11 GI Bill, by Beneficiary Type, 2016 Few beneficiaries chose online programs. Of those who did, most enrolled in for-profit programs.
  • 14. 13 CBO Online Program Use Under the Post-9/11 GI Bill, by Beneficiary Type, 2016 (Continued) Percent
  • 15. 14 CBO Average Outlay on the Post-9/11 GI Bill’s Benefits, by Beneficiary Type, 2016 After housing, tuition and fees accounted for the greatest share of the money spent for veterans and children. Many spouses attend school while the service member is on active duty, so they already receive a housing benefit through the service member. Thousands of 2018 Dollars
  • 16. 15 CBO Institutions’ Tuition and Fees: CBO’s Findings
  • 17. 16 CBO Average Tuition Outlay per Beneficiary Under the Post-9/11 GI Bill, 2017 Type of Education Public Nonprofit For Profit University, College, or Professional 7,000 10,500 7,600 Junior College 2,400 11,300 11,000 Noncollege Program 4,700 8,700 10,900 Nursing and Health Sciences 9,700 10,000 9,900 Average Tuition Outlay for Each Type of Institution 4,800 10,500 8,700 2018 Dollars
  • 18. 17 CBO Most Popular Institutions Under the Post-9/11 GI Bill, 2017 Schools with the most enrollees do not always receive the most tuition. A number of for-profit schools receive a disproportionate share of tuition payments, while community colleges receive less money relative to the number of students they enroll.
  • 19. 18 CBO Institutions That Received the Most Tuition Under the Post-9/11 GI Bill, 2017 Schools with the most enrollees do not always receive the most tuition. A number of for-profit schools receive a disproportionate share of tuition payments, while community colleges receive less money relative to the number of students they enroll. Millions of 2018 Dollars
  • 20. 19 CBO The 10 Institutions That Received the Most Tuition Under the Post-9/11 GI Bill, 2009 to 2017 Since the start of the Post-9/11 GI Bill, a disproportionate share of the money spent on tuition has gone to for-profit schools. Eight of the 10 institutions that received the most in tuition and fees were for-profit schools. Of those, two (ITT Technical Institute and Education Management Corporation) have declared bankruptcy, and Career Education Corporation has sold or closed most of its campuses. Millions of 2018 Dollars