The Consequences of the Post-9/11 GI Bill on Veterans and Higher Education

Abstract

This study investigates how the Post-9/11 GI Bill is used by veterans to attend higher education institutions offering 4-year college degrees. The Post-9/11 GI Bill was intended to give the benefit of payment assistance to all of those that served the United States military on, or after, September 11, 2001, as they pursue their college education. This study examines the school choices of the students utilizing that benefit and the implications of a large number of these students using their benefits to attend for-profit institutions.

To do this, the study first explores the history of the GI Bill, as well as its many sub-programs that provide assistance to unique subcategories of veterans and family members. The study then empirically shows that veterans are substantially more likely than non-veterans to attend for-profit colleges, which have lower graduation rates and higher student loan default rates than their non-profit and public counterparts. GI Bill funds thus flow disproportionately to the for-profit sector, raising concerns about the impact of such funds on student outcomes.

The study then explores the potential inadequacies of the 90/10 rule for for-profit colleges. Four potential solutions to the problem are considered, with a specific focus on the possibility of Military Universities being revamped to provide a better path to a college degree for service members.