While the Post-9/11 GI Bill offers a very generous post-service education benefit, a special provision allows career service members the opportunity to share their education benefits with immediate family members. The Post 9/11 GI Bill is the only one which allows transferring education benefits.
Transferring GI Bill benefits to a dependent can be done once they’ve served at least six years in the military, with the caveat that they agree to serve a further four years.
But what happens when someone is involuntarily separated from the military before they’ve satisfied that requirement?
If a servicemember fails to complete that obligation, it’s as if the entire eligibility was wiped out, and the VA has to recoup all the benefits that have been paid out.
The Government Accountability Office reported that in fiscal year 2014, one in four GI Bill beneficiaries was hit with a bill for overpayments.
This amounted to $416 million owed by beneficiaries.