Anya Kamenetz Generation Debt

Both my grandfathers served in World War II, and both went to school on the GI Bill. One became an accountant and the other a pharmacist.

It's a common experience: about 8 million Americans took advantage of GI Bill benefits between 1944 and 1956. Back then, the military provided full tuition, fees, books, and a stipend to returning soldiers.

Diminishing Returns

The considerable investment paid off in both human and economic terms. It's estimated that for every dollar spent on initial GI Bill benefits, six were returned to the Treasury due to increased earnings by members of the Greatest Generation.

Flash forward 55 years, and our nation is engaged in a conflict that's surpassed the amount of time we fought in the WWII. And according to the Iraq and Afghanistan Veterans of America, a 2004 survey found that "money for college" was the No. 1 reason civilians gave for enlisting to fight in those countries.

But the current Montgomery GI Bill, passed in 1984, far from lives up to its predecessor. Higher costs, stingier benefits, and bureaucracy have put obstacles in the way of young vets attending college. Veterans' advocates are backing a new proposed law that would restore the promise of the GI Bill for all who serve.

'A Convoluted Mess'

Erik Christensen was deployed to Iraq with the Army between December 2003 and February 2005. Now he helps fellow veterans get the benefits they're entitled to at the University of Minnesota, Mankato.

"The thing about these GI Bill benefits is that it pretty much takes a lawyer to read through this stuff," he says. "These dates to these dates, active duty versus reserves, this combat zone or that one. It's a convoluted mess."

In contrast to the full ride of the original GI Bill, current benefits provide $1,075 a month for 36 months in exchange for at least three years of service and a $1,200 buy-in, taken out of a veteran's salary the first year. Under most circumstances, benefits total $38,700, which pays for about 75 percent of a public school education.

Catch-22 Revisited

Besides the red tape and the less-than-full-tuition benefits, the problem, vets say, is timing and different treatment for different branches of the military.

Anthony Arakelian, 21, an Army Reservist who did a tour in Iraq from 2005 to 2006, is a student now. He's also a Veterans Administration representative in a work-study position at Harrisburg Area Community College York Center in southeastern Pennsylvania.

Arakelian says there's a catch-22 with the Montgomery GI Bill: Benefits aren't processed until your enrollment in a college is certified, which doesn't generally happen until the semester starts. After that, "it takes about ten weeks for a new person to get processed. If somebody's trying to start school and they don't have the funds to do it, the school can't hold their classes open."

The delay, more than half a semester, might be enough to put vets in debt or turn them away from school altogether. And since benefits are paid monthly, a veteran might still have to take out a loan to pay her full tuition. (Some colleges, such as the University of Vermont, do give veterans a break on paying tuition up front).

Flyaway Benefits

A second snag is the use-it-or-lose-it trap. While active duty soldiers have 36 months of benefits and 10 years after their tour of duty is over to use them, members of the National Guard and Reservists earn reduced benefits and must be enlisted to use them, give or take a few months. That can be tough in a war of unpredictable extended deployments, and the military is relying heavily on both these branches in combat.

"The education benefits are great -- if you can go to class between combat zones," says Christensen. He points out that Minnesota is currently welcoming home 3,000 National Guard members who have been in Iraq for 22 months, one of the first groups to be affected by the ongoing surge. With all their time in combat, this group will have no more than a year to collect education benefits unless they reenlist.

Arakelian is in a similar predicament. He's currently taking summer classes and is optimistic about earning his bachelor's degree by the end of his contract in 2011, unless he's called up again. "I tried taking online classes over there," he says, "but you can only sit in front of the computer for so long. I was moving around to different bases, and you never know what the Internet access is going to be like."

Supporting Our Troops

But help may be on the way for vets like Arakelian and Christensen. Earlier this year, Sen. Jim Webb (D-Va.) introduced the Post-9/11 Veterans Educational Assistance Act of 2007.

Like the old GI Bill, this new bill provides a full ride for anyone who sees active duty: tuition, room, and board at the most expensive public university in a veteran's home state, plus a $1,000-per-month stipend. Benefits would be delivered in a lump sum in time to pay tuition bills, and red tape would be streamlined. In mid-June, Rep. Bobby Scott (D-Va.) introduced the bill in the House as well.

At the end of June a second bill -- the Veterans Education Tuition Support (VETS) Act -- was introduced in both houses. This law, drafted by veteran, activist, and law student Patrick Campbell, would help students who deploy to stay in good standing at school and with their student loans, and cap student loan interest rates for active duty military.

Tips to Use Now

While awaiting word on the passage of the Post-9/11 Veterans Educational Assistance and VETS acts, here are some tips veterans can use to take full advantage of educational benefits right now:

• Master the forms.

To get your benefits as soon as possible, you can send in form VA 22-1990 to determine eligibility even before you choose a school. It asks for your education, employment, and service information, as well as your educational goals. You can submit it online.

While you're enrolled, you'll need to verify eligibility each month either at the web site or by calling 1-888-GIBILL-1.

• Get your full benefits.

In addition to the GI Bill, drilling Reservists and active-duty military may be eligible for up to $4,500 annually in tuition assistance.

• Watch the clock.

Active-duty troops have 36 months of benefits and 10 years to use them. Reservists and National Guard members can use benefits while they're enlisted, prorated for time spent overseas. You may need to take summer or night classes to finish a degree on-schedule.

• Look for state and other supplemental cash.

Many states have expanded education benefits for military members. You can find them on this list.

There are also thousands of scholarships across the country targeted to military members. Search for them here or here.

• Reach out for help.

An increasing number of colleges of all sizes have veterans' clubs or veterans' affairs offices or both. Here are a few examples: CUNY, California Community Colleges, University of Michigan Dearborn, and University of Minnesota.

Veterans often face problems adjusting to college, and these groups can be invaluable sources of information and support.