College Savings & Post 9/11 GI bill

[Anonymous]

Plan is to transfer the post 9/11 GI bill benefits to our 2 year old. Based on this, which other college savings would you recommend to supplement the GI bill? Initially, we planned on enrolling in the Virginia prepaid education plan but that covers tuition and fees which is what the GI covers? Should we put money in the Virginia Education Savings Trust? Chances are that we will stay in Virginia through active duty retirement but that's not a gurantee. Would appreciate feedback from other active duty families who have transferred the post 9/11 GI bill benefits to their children.

[Anonymous]

We are putting additional money in VA 529 plan - American Funds

[Anonymous]

I hate to rain on your parade but I would plan as though you haven't transferred anything to your child. By the time your little one goes to college, I imagine that the transfer option will no longer be honored due to funding constraints. Transfer of one's GI Bill benefits is a giant rat hole that DoD opened up and will not be able to fill. Just look at what just happened to the funded spouse education program. I'm not saying that it will definitely not be there, I would simply plan as though it won't be.

[Anonymous]

Anonymous wrote:I hate to rain on your parade but I would plan as though you haven't transferred anything to your child. By the time your little one goes to college, I imagine that the transfer option will no longer be honored due to funding constraints. Transfer of one's GI Bill benefits is a giant rat hole that DoD opened up and will not be able to fill. Just look at what just happened to the funded spouse education program. I'm not saying that it will definitely not be there, I would simply plan as though it won't be.

That's a good point-the benefit is almost too good to be true. However, don't you think that instead of not honoring the transfer in the future, they would perhaps end the option of being able to transfer it to your children? However, I agree that a back up plan would be good idea due to budget constraints.

[Anonymous]

How many years is the active duty parent from retirement?

[Anonymous]

Anonymous wrote:How many years is the active duty parent from retirement?

14 years.

[Anonymous]

NP here - DH just transferred his to our DS. DH will be retiring next year, DS is pre-school age. We are planning as if the benefit may not be available when DS is college age, due to DoD budget issues. Are exploring our options, and like OP would be interested in where people are putting their college savings.

[Anonymous]

I thought the transferred benefits expired 10 years after retirement. Pp have you looked into that?

[Anonymous]

I think that limit is if you are tranferring to a spouse not a child.

[Anonymous]

Do other military families have this same fear?

[Anonymous]

My husband is using his up for a second masters because he separated before 2009 which means the benefits are not trasnferable to a spouse and we don't have children yet. There are a lot of twists and turns and a good possibility that it will not be funded 10 or 20 years from now. Make sure you check and double check what benefits you have.

[Anonymous]

Use it or loose it. For real, I would be shocked if this isn't cut for next year's budget

[Anonymous]

I certainly hope the transfer benefit doesn't go away. When the military changes a policy, it generally grandfathers those that have already used the benefit and changes the policy for future generations. This is the way most of the discussion regarding military pensions has been going, where the future generations may have more of a 401k style plan. Also, the GIBill has been around for a long time, and if the service member uses it or their child, it will cost the govt the same.

[Anonymous]

None of you are identifying the root cause of this problem. The more Uncle Sam "gives" in education benefits, the more colleges raise tuition.

Everyone supports providing benefits for those who've worn the uniform, but housing, healthcare, education, food and gas subsidies. At some point this eats into the actual defense of the nation.

[Anonymous]

Anonymous wrote:None of you are identifying the root cause of this problem. The more Uncle Sam "gives" in education benefits, the more colleges raise tuition.

Everyone supports providing benefits for those who've worn the uniform, but housing, healthcare, education, food and gas subsidies. At some point this eats into the actual defense of the nation.

The real cause of the increase in college tuition is the lack of state funding and the increase in the availability of federal loans. Except for a few scrupulous private colleges, the GI Bill is not funding many colleges.

Benefits for veterans are the least our society can do to thank them for their service. They make incredible sacrifices for low pay. Junior enlisted members qualify for food stamps. An education is the least we can do.