The Wall Street Journal-20080125-We Need a New GI Bill
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We Need a New GI Bill
New York State Gov. Eliot Spitzer deserves the highest praise for his powerful commitment to the thousands of New York citizen soldiers fighting in the Iraq and Afghanistan war theaters. In his State of the State address this month, he proposed guaranteeing a full-tuition scholarship to these heroic men and women, so that they may attend any State University of New York or City University of New York college or university upon their return.
Mr. Spitzer's initiative should serve as a paradigm for what our nation must do for this new generation of veterans. They have sacrificed so much for us. We owe them honor, respect and the opportunity for a brighter future. We owe them a new GI Bill assuring them a college education.
When my service in the U.S. Navy ended after World War II, America welcomed me home with just such an opportunity: the G.I. Bill of 1944. In those days, veterans' benefits were generous -- the old saying was that if you got into Harvard, the G.I. Bill would pay for Harvard. This legislation allowed me to earn a bachelor's degree from Swarthmore College, a business degree from Harvard, and a law degree from Columbia.
I was among the almost eight million veterans -- more than half of us who returned home safely -- who were suddenly able to pay for the college or university of our choice. Many had never dreamed of going to college before the war.
This unprecedented educational opportunity transformed American society, as a whole generation of blue collar workers became engineers, doctors, lawyers, teachers and entrepreneurs. The economy boomed as we entered the workforce with new skills and training that increased productivity and stimulated innovation.
Sixty years after Pearl Harbor, a new generation of young men and women has now enlisted in the service of our nation. Regardless of our political differences about the war, we must be united in deep appreciation of the exceptional sacrifices made by our brave troops in Afghanistan and Iraq. This includes thousands of members of the Reserve and National Guard, most of whom have also served multiple tours of duty half a world away from their homes and families.
Unfortunately, the educational benefits that were available to WWII- era veterans are no longer afforded to today's returning troops. The sad reality is that while the cost of an education has increased, the benefits available to veterans have not kept up. Today, the GI Bill pays just a fraction of the cost of getting a degree.
Consider, for example, that the maximum educational benefit available to veterans of Iraq and Afghanistan is just $1,101 per month, or $39,636 over four years. Those veterans who served combat tours with the National Guard or Reserves are eligible for even less -- typically just $440 per month. The College Board reports that the average four-year public college costs more than $65,000 for an in- state student, while a private university costs upwards of $133,000.
Moreover, once National Guard and Reserve members leave the military, they are no longer eligible for any benefits. And if service members are discharged because of a disability, their GI Bill benefits are limited to only the equivalent number of months they served, even if their discharge was the result of injuries suffered in combat.
This is as unbelievable as it is unjust.
The severe restrictions of the current GI Bill extend beyond the educational benefit. There is an initial, non-refundable buy-in cost of $1,200 just to be eligible. That is essentially a "combat tax" on 19- and 20-year-olds who are getting ready to put their lives on the line for our country.
Hard as it is to imagine, if they don't use their GI Bill benefits when they return, they never see that money again. Some 30% of veterans don't use any of their GI Bill funds, which translates into more than $230 million going directly into the U.S. Treasury, rather than back to these young men and women.
War veterans who served in Iraq and Afghanistan must pay tuition, room and board and other college costs upfront out of their own pockets, and then are reimbursed up to their eligible benefit. In addition, benefits used under the GI Bill count against eligibility for federal student aid, with such support reduced if veterans receive any GI Bill funds. And there is a 10-year limit on assistance for current educational benefits.
All these restrictions effectively put the dream of higher education out of reach for far too many of the 1.6 million who have served our nation in the current wars.
I deeply believe that we have a moral responsibility to provide today's returning veterans with the same educational opportunities that my generation received. Mindful of that responsibility, many of us who benefited greatly from the original G.I. Bill have now established a private scholarship fund -- the Fund for Veterans' Education -- to offer the same "full boat" educational opportunities to returning veterans from all 50 states over the next 12 months.
To be sure, this is a limited effort that will only serve a relatively small number of returning Iraq and Afghanistan veterans. However, we view our program as a direct challenge to our elected officials in Washington. Just as President Roosevelt and the Congress did in 1944, they must now choose to commit the resources necessary to fund a comprehensive G.I. Bill for another generation of America's brave soldiers.
Sens. Jim Webb of Virginia, Chuck Hagel of Nebraska, and Blanche Lincoln of Arkansas have introduced legislation that would again make that sacred promise to our returning veterans: A promise that says, if you've put your life on the line to help secure America's future, your own educational future will never be in doubt.
Their legislation is good public policy and it is fiscally prudent. In the long run, a new G.I. Bill will more than pay for itself. As our experience proved after World War II, better educated veterans have higher income levels which, over the long run, will inevitably increase tax revenues. A congressionally mandated cost-benefit analysis concluded that for every $1 invested in education under the original G.I. Bill of 1944, the nation received between $5 and $12 in economic benefits, such as increased tax revenue and heightened productivity.
In my lifetime, the original G.I. Bill was one of this nation's proudest accomplishments and one of its most solemn commitments. We must now renew that commitment to a new generation of men and women who have served our country with extraordinary courage and distinction. In so doing, they will achieve the better lives they so richly deserve. And we will secure a better America.
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Mr. Kohlberg, a founding partner of Kohlberg Kravis Roberts and a limited partner of the private equity firm Kohlberg & Co., is chairman of the Fund For Veterans' Education.
