The type of  institution that a student attends will affect the cost of attendance. Depending on the aid program, GI benefits may or may not  be considered as another source of financial assistance for veteran  students, thus affecting veterans’ eligibility for these programs. With regard to various federal tax incentives available for  postsecondary education, receiving GI benefits does not prevent veterans  from claiming such benefits, but may affect the amount they would be  eligible to claim. Generally Veteran Students Receive the Same or More Federal Assistance than Nonveteran Students with the Same Characteristics

On average, veterans and nonveterans with similar characteristics are  awarded about the same amount of federal Title IV aid, and when GI  benefits are included, the total amount of federal assistance for  postsecondary education is greater for veterans than nonveterans. When  GI benefits are combined with Pell grant and Stafford loan aid, veterans  receive aid packages that include a lower proportion of loans than  nonveterans. Veterans receive smaller campus-based aid awards than  nonveteran dependents, but more than nonveteran independent students  at 4-year institutions. Although the actual amount claimed in HOPE and  Lifetime Learning tax credits by veteran and nonveteran students is  unknown, there are several factors that affect the amount a student may  be eligible to claim. The  amount of HOPE or Lifetime Learning tax credit one may be eligible to  claim is affected by several factors, including the amount of tuition and  fees paid, amount of GI benefits and grant aid received, and family income  and taxes owed. Appendix I: Estimated Federal Title IV Aid Awarded to Students

The following three tables provide estimates of the amount of Pell grant,  subsidized Stafford loan, and unsubsidized Stafford loan aid awarded to  veteran and nonveteran students at public 2-year, public 4-year, and  private 4-year institutions and the amount of GI benefits available in  academic year 1999-2000.
What GAO Found

The Montgomery GI Bill provides a monthly stipend to pay postsecondary education expenses for veterans and eligible service members. Concerns have been raised about whether GI benefits adequately cover educational costs and whether the receipt of GI benefits affects other federal financial assistance available to postsecondary students under Title IV of the Higher Education Act and the Internal Revenue Code. Under Title IV, GI benefits do not affect the amount of aid veterans receive under the Pell grant and subsidized Stafford loan programs but may affect the amount they receive in unsubsidized loans and through campus-based aid programs. Depending on the program, GI benefits may be considered as another source of financial assistance for students, which may decrease a veteran student's financial need and thus the amount of need-based aid provided. With regard to available federal tax incentives, the receipt of GI benefits does not preclude veterans from claiming such benefits but may affect the amount they would be eligible to claim. On average, veterans and nonveterans with comparable characteristics are awarded similar amounts of federal Title IV aid. When GI benefits are included, the total amount of federal assistance is greater for veterans than it is for nonveterans. Moreover, veterans' total aid, including Pell Grants, Stafford loans, and GI benefits has a lower proportion of loans compared with nonveterans' packages. On average, veteran students received slightly lower average campus-based aid awards than did nonveteran dependent students, but they received more than nonveteran independent students at four-year institutions. The actual amount of HOPE and Lifetime Learning tax credits by veteran and nonveteran students is unknown. However, the amount of tuition and fees paid, amount of GI benefits and grant aid received, and family income and taxes owed will affect the amount of tax credit one may claim.