VA Loans for Military Families
At over $1,000 a month, your GI Bill income is sizable, but VA benefits are not reportable to the IRS. Veteran education benefits won't end up costing you money at tax time.
 
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VA LOAN RATES
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for 3/12/2010

30 Year Fixed
0.000 points
4.875%
4.991% APR

15 Year Fixed
0.000 points
4.500%
4.704% APR
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GI Bill and Military Education

Using the GI Bill Benefits You Worked Hard to Earn

-- Getting Started Early is the Key
-- Online Education and GI Bill Friendly Schools
-- GI Bill Issues: Earned Credits, Taxes, etc.
-- GI Bill and Your Family

GI Bill Issues: Earned Credits, Taxes, etc.

If you are a Reservist, it may be tempting to file for both military education benefits; Montgomery GI Bill and the MGIB-SR or Selected Reserve programs. Unfortunately the rules are designed to let you use one or the other, but not both. Additionally, you may only use the same period of active duty to establish eligibility for one program.

Some people do qualify for both programs depending on the nature of their military service, but the system is designed to avoid confusion. When filing a claim for VA benefits the Veterans Administration will inform you which of these two military education benefits you are eligible to use.

The GI Bill is Just the Start
Did you know that many states offer programs to assist veterans in their educational pursuits? A great example is the Illinois Veterans Grant, which offers 100% tuition payments in public schools. Unfortunately, private schools are not part of this program, but in qualifying schools this veteran's benefit program is offered above and beyond your GI Bill benefits!

It's easy to see how your educational goals can become a reality with such help, but many veterans don't know these programs exist. Ask your college counselor to put you in touch with the campus VA rep, who can explain any such benefits your state has to offer. You will be very glad you did.

Getting Credit for What You've Already Done
As you start your journey to higher education, don't forget that your military education--Basic Training, technical schools, leadership training and upgrade training--can count for college credit. To get some of these credits your school will require you to submit either a DD214 (your discharge papers) or a form showing you are still on duty.

To have military education credits recognized you'll need to request a transcript from your technical school, Community College of the Air Force or other military education institutions. Be sure to submit these transcripts unopened, as most colleges won't accept them otherwise. Some schools want you to make a 'special request' in order to have these transcripts evaluated, others require you to contact the head of the departments your credits might transfer to for an official evaluation. Be prepared to start early and do some legwork to get this done, but it's well worth it in the end.

Is My VA Benefit Money Taxable?
At over $1,000 a month, your GI Bill "income" is sizable. Fortunately, any VA benefits--including all veteran education benefits--are not reportable to the Internal Revenue Service. This news comes as a welcome relief to those using combinations of student loans, veteran education benefits and grants to pay for school. Your financial road to higher education may be a winding one, but rest assured, veteran education benefits won't end up costing you money at tax time.

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Military guidelines, regulations, and benefits are introduced each year for everything from Military Pay Charts to your VA Loan benefits. We can help you stay informed. > See also: 2009 Military
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