Student debt is increasing amongst all Americans¹, but on average, a veteran will take on more debt than a civilian student²—in spite of generous GI Bill benefits.
The primary contributors to veteran student loan debt are the same federal student loans that the average undergraduate takes out. In spite of GI Bill contributions, many vets either have to or choose to take out additional loans to pay for education-related fees or to put toward personal finances while in school. GI Bill benefits do not currently cover:
- Out-of-state tuition at public universities.
- Tuition fees at for-profit universities greater than $18,077.50 per year.
- Unaccredited programs such as those found in vocational and technical colleges.
Is Federal Loan Debt Really All That Bad?
Federal loans come with low interest rates, which means debt in this category is typically more manageable. Plus, veterans now do not have to devote more than 10% of their income to debt repayment.³ While this may seem non-threatening at first glance, these policies may lead veterans to take on more debt than they otherwise would.
And, as you […]