How Has the Post-9/11 GI Bill Affected Veteran Students’ College Loans? A Longitudinal Analysis of NPSAS Using Propensity Score Weighting

ABSTRACT

Using data from four waves of the National Postsecondary Student Aid Study (NPSAS) in 2004, 2008, 2012, and 2016, this study examines the effect of the PGIB on veterans’ student loans. Results indicate that the PGIB has significantly affected veteran students’ borrowing behavior, with an average $1,100 reduction in Stafford Loans. Veteran students attending for-profit institutions experience a larger loan decrease than their peers at public and private nonprofit institutions. In addition, loan reductions have occurred mainly at the extensive margin. The decrease in student loans is relatively small compared to the increase in veterans’ education benefits under the PGIB, partly due to a rise in the cost of attendance after the implementation of the PGIB, driven by a higher proportion of veteran students attending for-profit institutions. Finally, loan reductions vary across veteran students.

KEYWORDS:

• Post-9/11 GI Bill
• veterans’ education benefits
• Pell Grant
• student loan
• Stafford Loan

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. Author’s calculation based on National Postsecondary Student Aid Study (NPSAS 2016). The average loan amounts do not include Parent PLUS Loans.

2. Monthly Housing Allowance is based on the Basic Allowance for Housing (BAH). Some examples of BAH in FY 2022 for Grade E05 with dependents: $1080 in Springfield, IL; $2052 in Colorado Springs, CO; $3,345 in New York, NY; and $4,797 in San Francisco, CA (highest in the nation). Students enrolled in online programs receive a flat allowance rate of half the national average, which is $950.75/month in FY 2022.

3. Author’s calculation based on National Postsecondary Student Aid Study (NPSAS 2016). The average loan amounts do not include Parent PLUS Loans.

4. All sample sizes are rounded off to the nearest 10 per IES requirements.