The economy was bad and the President knew it.  World War II was sending home soldiers who would be looking for non-existent jobs.  These were young men and they would be draining the poor economy while they were job-hunting.

 

Opportunities for education and home ownership were virtually non-existent at this time.  The key benefits of this bill included education and training, home loan guaranty, business loan guaranty and unemployment funds.

 

 

GI Bill Solved Economic Crisis

 

This was no longer a wartime economy driven by the needs of the Department of Defense.  The only resolution was to keep the returning military away from the job market, thus allowing for assimilation over a four year period on a staggered entry plan.  Education and re-training was the answer to this problem.

 

Therefore, the American Legion National Commander drew up the first draft of the “GI Bill” and introduced it to the House on 10 January 1944.  It went to the Senate the very next day.  The result was the release of two very different versions of the original bill!  This bill almost died in debate when the members of the House and Senate came together to argue on behalf of their own versions.

 

Both the House and the Senate were in agreement with the benefits for education and home loans, but they were tied on the unemployment benefit.  The tie-breaking vote came from the Representative from Georgia.  The final form of the bill was passed by the Senate on 12 June 1944 and the House on 13 June 1944.  President Roosevelt signed off on it 22 June 1944.  The benefits of the bill would be administered by the Veteran’s Administration (VA).

 

As a result, veterans made up about 49% of the 1947 college enrollments.  Veterans took advantage of the education and home loan benefits.  However, less than 20% of the unemployment funds were tapped before the bill ended in 1956.

 

Figures released at the end of the bill’s life revealed that less than 50% of the eligible veterans actually participated in any educational or training program.  During the 8-year period from 1944 to 1952, the Veteran’s Administration provided the home loan guaranty to almost 2.5 million World War II veteran applicants.

 

 

Mississippi Congressman Montgomery Gives New Life to GI Bill

 

Former Mississippi Congressman, Gillespie Montgomery, rewrote the original GI Bill in 1984.  This ensured that the benefits of the original GI Bill would suitably serve the newest group of combat veterans.  The benefits of this newer version were updated to reflect new educational costs, acknowledge the rise in the cost of living and offer more reasonable benefits allowing entry into the home/business ownership market. His work was rewarded with the renaming of this bill which has become known as the Montgomery GI Bill to this day.

 

Under the Montgomery GI Bill, monthly benefits of nearly $40,000 would be available to both active duty military as well as veterans.  The main focus of this updated bill was the education benefit – and that benefit amount would be tax-free – that allowed for tuition, books, fees and living expenses for those pursuing undergraduate and/or graduate degrees or a trade school.

 

 

Post 9/11 GI Bill Update

 

History repeats itself and the Montgomery GI Bill needed to be revamped.  The cost of living has risen dramatically, new technology has been released (and upgraded) and the cost of higher education, as well as its method of delivery, has increased.

 

On 30 June 2008, President Bush signed the Post 9/11 GI Bill.  Updated provisions of this bill will not go into effect until 1 August 2009.  Since this bill is a Veteran’s Benefit and not a Military Benefit, it is administered by the VA based upon laws enacted by Congress.  Only those veterans who were on active duty after 11 September 2001 are eligible to participate in the benefits of this bill.

 

One of the stipulations is that election to participate must be made at the start of active duty or sometime during basic training.  An eligible participant cannot have a change of mind once the participation document is signed.

 

The Post 9/11 GI Bill more closely matches the spirit of the original 1944 Servicemen’s Readjustment Act. However, this bill goes one step further: spouses and children will see benefits, too.  The totally free college education applies to the veteran who actually served.  Unused portions can be designated for spouse and children.

 

Upon leaving active duty, the veteran has up to 15 years to use the benefits.  Under the Montgomery GI Bill, veterans had only 10 years to use these benefits.  Colleges are gearing up now in anticipation of a strong wave of veterans coming home from Iraq and Afghanistan.

 

The Post 9/11 GI Bill will make higher education 100% free for these new veterans – in most cases.  It even includes the cost of housing and many other expenses.  This is a higher education well-earned benefit and not a student loan.  The best part of the new bill allows for either physical or virtual participation in degree-earning classes.  It truly is a 21st century recognition.