Avoid the GI Bill “BAH Gap”
For student veterans, the Post-9/11 GI Bill Monthly Housing Allowance (MHA) provides some financial stability, enabling veterans to focus on their coursework. But there’s an X-factor of sorts to contend with financially.
What do Post-9/11 GI Bill students do about their housing expenses during the summer semester and summer break?
Summer is a time when full-time attendance may not be possible, depending on the college, and this can result in reduced GI Bill housing allowance payments. For students who choose not to attend a summer semester, GI Bill housing allowance payments will stop until the student resumes attending classes.
Do you know why?
How Summer Semester GI Bill MHA Works
The Department of Veterans Affairs (VA) calculates MHA using two factors: the school’s location and a student’s “rate of pursuit.” Rate of pursuit is the VA’s measurement of a student’s course load. To receive any MHA, a student’s rate of pursuit must be more than 50 percent. To receive the full MHA payment, a student must be enrolled full-time.
A standard semester lasts about 16 weeks. A college may define 12 credit hours as full-time enrollment. A student taking 12 credits achieves a 100 percent rate of pursuit. Six credits would be a 50 percent rate of pursuit, which qualifies for no MHA.
Summer terms are short. A college might define six credit hours as full-time during an eight-week summer session. In this case, taking six credits provides a 100 percent rate of pursuit and the full MHA. The formula compensates for an accelerated workload.
The problem emerges when a student takes fewer credits. Taking a single three-credit class in that eight-week term results in a 50 percent rate of pursuit. The student receives no housing allowance. Moreover, the VA renders payment only for days a student is in class. The breaks before and after the summer term are periods without MHA.
Construct a 12-Month Budget
It pays not to view your year-long finances in semester blocks, but to take a more long-term approach.
In the fall, when MHA payments are consistent, calculate your total monthly income and your total monthly expenses. The amount left over is your surplus. This surplus is the key resource for funding the summer months.
To manage this, consider opening a dedicated savings account. Name this account your “Summer Fund.” Every month from September through May, transfer a set amount into this fund. Automate this transfer so it functions like any other bill. This discipline of saving during the nine months of full payments creates the exact buffer you will need.
This action transforms a potential summer shortfall into a planned and covered expense. The process is simple: list your income, list your bills, and calculate the difference. Determine your likely summer MHA gap, then divide that number by nine. The result is your target for monthly savings.
Use the VA Work-Study Program
The VA has a work-study program for students. This program offers the opportunity to earn a tax-free wage while attending school. Students who participate work at a VA facility, a university’s veteran office, or other approved locations.
To be eligible, a student must be enrolled at a rate of three-quarters time or higher. The work often involves helping other veterans. Duties might include assisting a school certifying official with paperwork or greeting veterans at a clinic.
The hours are designed to be flexible around a student’s class schedule. The number of hours is limited to ensure work does not interfere with education.
You must apply for this program. Inquire with your school’s VA office or on the VA website early in the spring. A work-study position provides a direct way to generate income during the summer break.
Smart Academic Planning
The classes you choose have a direct impact on your finances. Schedule a meeting with your academic advisor and your school’s certifying official (SCO) well in advance of the summer registration period. The SCO is the school employee who reports your enrollment to the VA and is an expert on how your schedule affects your benefits.
Discuss your degree requirements and ask about the courses available during the summer. If your school’s offerings permit, construct a schedule that the VA will consider full-time. This might involve enrolling in two classes during a single session or taking classes in overlapping “mini-mesters.”
Ask about the school’s online courses. The VA allows students to mix campus classes and online classes. As long as you take at least one class in person, you can use online courses to reach a full-time load and still receive the resident MHA rate. Careful academic planning is a primary defense against a reduction in MHA.
Preparation Leads to College Success
GI Bill payment rules for summer are a known part of the system. Through year-round financial discipline, you can work to remove the uncertainty that the summer semester can create. Build your annual budget.
Save a portion of your MHA from your fall and spring payments. Use the resources designed to help you, including VA programs and scholarships. Plan your class schedule with your benefits in mind. These actions will help keep your attention focused on your studies and on the goal of completing your degree.
About the author
Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.
