GI Education Bill Benefit Now 54% Below Inflation Adjusted Vietnam Era Benefit.

As a strong supporter and prior user of the GI educational benefit, I have been interested in the growing political battle over the GI Bill, S.22. Senator McCain has opposed the expansion of benefits that this bill will provide while many other Congressional members support the expansion.

I went back and looked at the cost levels for S.22, as detailed by the Congressional Budget Office. Their estimate HERE is that the average benefit cost would be $90,000 for 36 months of benefits--4 years of college.

I then went back and constructed a table HERE showing what education benefits would be if Vietnam era benefit levels were adjusted, using the rate of college tuition inflation since 1970.

Three Conclusions:

1. Current GI educational benefit levels are 54% below what they would be if they were at the same level of benefits available to Vietnam era veterans, after adjusting for tuition inflation.
2. S. 22 benefits levels are somewhat more generous than called for by tuition inflation alone. Using CBO's benefit estimate of $90,000, the benefit provided by S.22 would be about 8% more--nearly $9,000 more- than what Vietnam era benefit levels would be adjusted through 2007 for tuition inflation.
3. After inflation adjustments for 2008 are added, the proposed benefit levels in S. 22 are only marginally higher than they should be if they were adjusted only for tuition inflation since 1990.