GI Bill for dependents?

[marcb747]

Can military servicemembers transfer their GI Bill education benefits to their dependents? Better yet, are their any upcoming legislation or lobbying that aim to do just that?

I have a 5 year old son, and although its still a long ways for him before he goes off to college, I need to worry about how to finance his education now, other than relying solely on loans, scholarships or the service academies in the future.

Realistically, knowing that my officers' salary would simply cover the essentials, it sure would be nice to know if the government can extend similar benefits to my kid/s.

I'm curious to know, for all you parents on this board, how are you dealing with this situation? I have a college plan set up for him at the moment, contributing a monthly amount, but I'm not sure if I can afford to do this once I am in the Navy --- with the huge paycut and all, even on an Officer's salary.

I'm sure there are alternatives but I would like to hear some insight from active duty folks with dependents.

 

[kaiangel]

I don't know how much you are used to making, but I am an active duty E-6 getting commissioned next year and I think that I am not having too much trouble saving for my children's education. I realize that I will not be able to finance an expensive school alone, but at least I can put them through a school where they can have the same opportunity that I have. As for the GI bill transfer, there has been a lot of talk about that but I don't think that anything is certain yet.

 

[webmaster]

Interesting question, I remember hearing about the transfer stuff awhile back, looks like it is about to be implemented, if not already.

Other options that you have probably already considered, include the Thrift Savings Plan (Military 401k), an educational IRA for your kid, and of course an instate tuition program (I am currently paying into Florida's for both my kids).

If you look at the pay scale for Officers, it definitely ramps up in the first four years, so maybe you are taking a pay cut, but hopefully it will be short lived! Then again, you get to fly planes for a living also!

quote:http://www.gibill.va.gov/education/News/PL107107.htm

January 8, 2002

SUBJ: Education Provisions of Pub. L. 107-107

This letter explains the education provisions of the National Defense Authorization Act for Fiscal Year 2002, which was enacted December 28, 2001.

Return to the "NEWS" page.

Education Provisions of the Act

The Act contains the following education provisions, outlining the highlights of the transferability section of the Act:

Transfer of Entitlement: The transfer of entitlement to basic educational assistance under the Montgomery GI Bill-Active Duty (MGIB) is permitted to one or more of a servicemember’s dependents
Who Can Transfer Entitlement: Individuals allowed to transfer entitlement are those who, after approval by the service secretary concerned: (1) have completed six years of service in the Armed Forces and (2) either have a critical military skill designated by the Secretary for transferability purposes; or are in a military specialty designated by the Secretary concerned for transferability purposes as requiring critical military skills; and (3) enter into an agreement to serve at least four more years as members of the Armed Forces.
Eligible Dependents: Transfers may be made to the individual’s spouse, to one or more of the individual’s children or to a combination of the above.
Months of Transfer: The total number of months of entitlement transferred by an individual may not exceed 18 months.
Designation of Transferee: Those transferring entitlement have to designate the dependent or dependents receiving the transfer; have to designate the number of months of such entitlement to be transferred to each dependent; and have to specify the period for which the transfer will be effective for each dependent designated.

Time for Transfer and Revocation or Modification: An approved individual may transfer such entitlement at any time after the approval of the individual’s request to transfer such entitlement and before the individual’s delimiting date without regard to whether the individual is a member of the Armed Forces when the transfer is executed. The transferring person may modify or revoke any unused portion at any time.
When the Transferred Entitlement Can be Used: For a spouse, transferred entitlement may not be used until the transferring person completes six years of service in the Armed Forces; or, in the case of a child, the completion of ten years of service by the transferring person and, either the completion by the child of the requirements of a secondary school diploma (or equivalency certificate); or the attainment by the child of 18 years of age.
Administrative and Overpayment Issues Concerning Transferability: These types of issues will be outlined in a future circular.
Implementation: By June 30, 2002, the Secretary of Defense has to make a report to Congress describing how the various service secretaries will implement the transferability provisions of this law.

 

[marcb747]

Thanks for the insight you guys. It'll definitely be a huge paycut for us because I will be starting at the bottom of the officer's totem pole. O-1 with less than 2 yrs., which equates to roughly 35-40k/yr. That is even lower than a new grad's salary in the private industry. I have 6 yrs of IT experience in high-tech. Not to mention that my wife will have to quit her job and move to wherever the Navy tells us to go. So from a two-income household to a single-income family, teetering above or below the poverty line.

Don't get me wrong, it's not all about money. We all join the service for all the right reasons, and like John said, I'd rather be doing something that has purpose instead of being a highly paid desk jockey for life. However, I am looking for realistic ways to take care of my family while in the Navy, and since money will always be an issue regardless, I just need to make sure that I've done all the due diligence, planning and logistics beforehand.

I sure hope that the paycut is temporary and the hard work begins to pay-off as my tenure with the Navy continues.

Again, thanks for the advice!

marc

 

[Steve Wilkins]

quote:So from a two-income household to a single-income family, teetering above or below the poverty line.

Hey Marc,

Don't take this the wrong way, but I think you've been smokin a little too much crack. Officers may not get paid what the private industry pays (especially starting out as an Ensign - under 2 years). However, we are hardly at the poverty level. A good example of somebody at the poverty level would be an E-2 with three kids and a wife (yes, one of my guys). You may just need to make an adjustment in your lifestyle. Also, change your residency to Florida as soon as you possibly can. In addition to not having to pay any state income tax, you too (like John) could start paying into Florida's instate tuition program. Man, that is a sweet deal.

--Steve

 

[ghost_ttu]

Marc:

Texas has the same programs, and has no state income tax. And You could send your kids to a Texas school!

 

[marcb747]

You're right, I guess I've been a little too paranoid.
I guess it's all relative to where you're stationed.
We haven't lived outside of Silicon Valley for the past seven years
so I have no real insight on the cost of living in other states.
I've been doing a little research here and there, so hopefully the transition would not be as rough.

The poverty level is defined a little differently here in the valley so I feel a little comfort with what you guys have said. I'm sure it'll be alright.

So Steve, a couple of questions, how does the Florida instate tuition program work? Can you point me to some sites that can provide me with additional information? Lastly, regarding the residency thing, do I need to be physically located in Florida to claim residency? What if I get transferred to another state, am I required to transfer residency once this happens or can I always claim FL regardless, just by the fact that I lived there? I know this is an obvious answer in the civilian world but I'm not sure how the Navy deals with this, since transfers are a part of Navy life.

Thanks,
marc

 

[webmaster]

Marc,

Here is the site for the Florida PrePaid College program, you also aren't locked into schools in Florida, you can take the money to other out of state schools.

http://www.fsba.state.fl.us/prepaid/

As for declaring your state of residency, that will be quite easy for you when you go to OCS and API. You will be asked what your home of record is, and just use your address there in Florida, and you are good to go. You can change it later on in you career at any time, but most military stick to such states as Florida or Texas, no state taxes to pay.

When you transfer to different duty stations in various states, you maintain your home of record for tax purposes.

Hope that answers the question.

Oh, speaking of poverty level, I was an E3 under 2 years (for pay) with two new borns while stationed in Hawaii for my first tour. I qualified for every single program out there from WIC to foodstamps, so I definitely know first hand about the poverty level aspect of being a junior sailor (and I am sure other prior Es have the same experiences). Granted, HI is a rough first duty station financially, and I was still elligible for foodstamps when I left as an E5!

I think there are some definite tax benefits (only your base and special pays are taxable, allowances such as housing are not) and other aspects of how we get paid that you aren't used to, plus the locales we live in probably aren't quite as expensive as where you are now. Still, probably a lifestyle and spending change in store for you for the first couple of years.

 

[Steve Wilkins]

Yea, that's what I meant to say. John is always so much more eloquent than I am.

--Steve

 

[kaiangel]

It is true that the pay for an O-1 under 2 years is fairly low. In fact, it is less than I make as an E-6 over 6. However, the great thing about being an officer is that your first two advancements are automatic and bring significant pay raises. So while the first 2 - 4 years may not be so easy, it should be pretty good after that. The best thing is that the pay never goes down and you can always anticipate some sort of pay raise.

 

[Vic]

kaiangel,
Remember that if you are commissioned (warrant or offier) from the active duty elisted side, you keep the pay that is higher. For instance, if you make a million dollars as an E-6 and the O-1 pay is 500,000; then you keep the million until the commissioned paygrade catches up. Go to the DFAS website and look up the DoDFMR vol 7, I think.

Don't sweat the small stuff!

 

[marcb747]

This is awesome information! Thanks you guys!
This forum is a godsend, its a real great tool to unofficially tap into the Navy's greatest asset - its people! Information is definitely power.

On the poverty issue, its sad to think that the people that do the most sacrifice for this country, are the least compensated. To the point that they have to avail for foodstamps. This definitely gives me more reason to respect the guys that do all the back-end grunt work.

Hopefully the Bush administration is working towards resolving that issue.

 

[webmaster]

quote:This is bad gouge. Officers cannot ever change their home of record entry.

Ok, there are two different sets of data that have just been brought up, and what I said before is not bad gouge.

First, what Mari is talking about, is in your Officer Service Record on the right hand side is the "NAVPERS 1070/74 — Officer's Report of Home of Record and Place from Which Ordered to a Tour of Active Duty", which is where you came into the military, and where your initial move was made from. And as Mari said, at the completion of your military service you can ship your personal belongings there.

But, if you read what I was talking about, principally taxes, there is your home of record for TAX PURPOSES, which as we can see is completely different. Mari is correct that you will now be voting in that county (maybe there is a way around this, but I haven't heard of it), but providing or needing to have the registration for your car or driver's liscense moved to that state doesn't matter. PSD and the DKs just need an address to update their system, and the DFAS computer that handles your pay. So, your pay will no longer be taxed from that state.

Case in point, I have a car registered in Hawaii, a Texas driver's liscense and for tax purposes am a resident in Florida and vote there also. Now if I leave Hawaii, when the registration is up on the car I will need to change it since I am no longer stationed in Hawaii, same for the driver's liscense when it expires.

Unfortunately, if your spouse is employeed in a state where you are stationed, they have to pay taxes there, and don't get the same benefit. Problems also arise when purchasing property, and paying the associated millage or property taxes that go along with it in that state.

 

[mattlowery]

Mari,

Where are you now? I used to read your posts before i ever went to OCS and asked you about swimming a little bit. I am in API now; it seems overwhelming right now, but hopefully i'll feel a little better after the first test. anyhoo, just thought i'd say hi and see how you were doing.

Matt L.

 

[Steve Wilkins]

Mari,

Don't ever, ever, ever counter what a YN or ex-YN for that matter, says about residency, BAH, etc.....unless you have it in writing in a Navy instruction of course. They are VERY sensitive on these subjects.

But in all seriousness, I do have to agree with John. He's not putting out any bad gouge. HOWEVER, you most certainly can change you home of record....even as an officer. Perfect example is me.

When I came in the Navy, I lived in California. Because I pretty much new of nothing outside of CA, my home of record was set to CA. I kept it there for awhile until I finally decided that I had no desire to ever go back there to live. After I got commissioned (at University of Florida), I had it changed to that location. It's pretty much as simple as telling your command's YN1 that you want to change your home of record and updating your Page 2. And as you pointed out Mari, the Navy won't move your stuff, after you get out of the Navy, to any location that's distance is further from your current duty station to your home of record (i.e. stationed in San Diego and home of record is in Denver, CO.....Navy won't move your stuff from San Diego to Florida - without cost anyway.) Hope this helps.

--Steve