Book Review: The GI Bill, A New Deal for Veterans by Glenn C. Altschuler and Stuart M. Blumin

Stuart Nachbar
Approximately one year ago, U.S. Senator James Webb (D-Virginia) sponsored the Post 9-11 Veterans Educational Assistance Act, which was passed by overwhelming majorities in both houses of Congress and later signed into law by former President George W. Bush. Webb's legislation is the most recent iteration of the G.I. Bill, which defines educational benefits for former service members in the Armed Forces.

But, according to Altschuler and Blumin's new book, The G.I Bill, A New Deal for Veterans, Senator Webb's legislation pales in comparison to the original G.I Bill passed and signed by President Franklin D. Roosevelt in 1944. The concerns about the economic well-being of returning World War II veterans were far greater than any president had to address until then, and afterwards. Considently, the 1944 legislation was signed in June, just as Senator Webb's bill was signed into law fifty four years later.

The treasure trove of facts in this book about the original G.I. Bill and subsequent modifications (higher mortgage limits being one) is too vast for a single blog post. The economic adjustments brought on by the G.I. Bill were as great, if not greater, than those that resulted from the implementation of the Marshall Plan for Europe.

Ten years after World War II, according to the authors, the Census Bureau found that 15.4 million military veterans had returned to civilian life in the United States. Of that number 12.4 million (78 percent) benefited from the original G.I. Bill. While the passage of the bill did not end discrimination against women and minorities in their access to education and housing, it became a catalyst for future acts that did.

The original G.I Bill, then called the Serviceman's Readjustment Act of 1944 was actually a bi-partisan collaboration of Republicans and conservative Democrats. Roosevelt had lost the majority of the House in the 1942 mid-term elections. The Act not only covered educational benefits, but also an unemployment benefit, and government guaranteed (up to $2,000) small business and farm loans and home mortgages. The issue of the unemployment benefit was historical; previous veteran's benefit legislation from prior wars had dealt with transition payments and pensions. The Bill also appropriated $500 million for the construction of veteran's facilities,including hospitals.

The education benefits of the bill were originally quite unpopular. Only 23 percent of military veterans had completed high school and less than four percent had a college degree. The authors report the suspicions that veterans would take the education benefit and loaf their way through school without earning a degree. Those suspicions proved unfounded; the veterans were among the best students at most colleges.

In 1944, a veteran who had served in the military for at least 90 days was eligible for a tuition payment of up to $500 as well as a living allowance of $65 to $90 per month depending on the service member's marital and family status. These benefits could be applied to the costs of a college degree, or vocational training.


This resulted in a college enrollment boom in larger universities that can best be described in this post as supersonic. For example, at Purdue, enrollment jumped 5,600 to 11,500 students form 1945 to 1946, and Syracuse University's enrollment leaped from 4,300 to 15,200 during the same period. The $500 per student was a windfall for many public universities; it often exceeded out-of-state tuition charges at the time.

Universities grew faster than their ability to house new students and their families, so the military aided in the provision of new housing by dismantling structures on bases, then reassembling them on college campuses. Within New York alone, three colleges were established upstate. These were later closed as enrollments declined, and New York became the last state to establish a state university system.

Also interesting is the transition of the G.I. Bill from an all-encompassing piece of legislation into separate acts, especially for housing finance and access as well as education. Until Senator Webb's bill was signed into law last year, G.I Bill educational benefits were a match where the military matched $2 for every dollar the service member paid. The benefit was promoted more as a military recruitment tool than a veteran's benefit. However, past policy meant that the amount of the college benefit was tied to a soldier's savings and, that the benefit became less significant as college tuition increased faster than inflation.

Senator Webb's bill provides a tuition benefit that is equal to the highest tuition charged to in-state students in the veteran's home state. So, for example, in New Jersey, the tuition benefit should be equal to the tuition at Rutgers-New Brunswick (approximately $9,300).

The original G.I Bill was a remarkable act. It eased the demobilization of over seven million veterans and helped to return them into more lucrative civilian employment opportunities than many had thought possible. It is also remarkable that the colleges, especially the larger universities, sustained their enrollment growth even after the last of the Greatest Generation had used their benefits (former service members were given ten years to accept the benefit and complete their education).

Anyone who has doubts about what government "can do" should read this book. It provides a detailed example of the successes that were achieved when government "did."

Stuart Nachbar blogs on education and politics at www.EducatedQuest.com. His new novel, Defending College Heights, is about a investigation into the murder of a U.S. Army recruiter within a college community. Learn more at www.DefendingCollegeHeights.com
Print Email
Bookmark and Share

Stuart Nachbar

Stuart Nachbar has been involved in education politics and economic development for two decades as an urbna planner, government affairs manager, software executive, and now as a writer. For more details about his first novel, the Sex Ed Chronicles, please go to www.sexedchronicles.com

Got Debt?  Get Debt Wise.