Legislation was recently introduced in the Senate by Sen. Hillary Rodham Clinton, (D-NY). The proposed legislation will enhance GI Bill benefits, VA Home Loans, and Small Business Loans for Veterans.

Proposed Enhancements:

  • GI Bill: The proposed new version of the GI Bill would eliminate the requirement to pay into the system, and would only require the veterans to have spent 2 consecutive years on Active Duty after 2001. They veteran would then be eligible to receive up to 8 semesters of college education based on the national average cost for college tuition. Room and board would also be covered under this proposal. Currently, members pay $1200 to buy into the GI Bill to receive benefits to be used during or after their Active Duty service. These benefits would extend the Reservists and National Guardsmen who meet the 2 year criteria.
  • VA Home Loans: The proposed changes to the VA Loan would raise the cap from $417,00 to $625,000 and reduce a number of associated fees.
  • Small Business Loans: There is currently a program called the Microloan Program, which qualifies veterans to receive a small business loan up to $25,000, with interest rates capped at $2.5%. The proposed legislation increases the cap to $100,000 with the same interest rates.

The GI Bill is a program that many politicians have looked at enhancing in recent years. In most cases, the current benefits have not kept up with the rise in tuition costs. There was no word if those who have already paid into the system would receive refunds if the requirements change. I wouldn’t count on it though.

VA Loans can be difficult to use due to required paperwork and associated fees. Streamlining the process will make it much easier for veterans to use the benefits they have earned through their service.

Increasing small business loans will help many veterans realize their dream of owning their own business. Small businesses are also a strong part of the American economy’s backbone. I think Congress sees the small business loans as an investment in America. And that’s a good thing. ;)

These enhancements are currently only proposals, and there is not word if and when these will be approved and implemented. But if you support these proposals, please contact your state representatives. They are the key decision makers.

Source: Stars and Stripes