Online Veteran Students Get Full Housing Stipend: 50% Cap Removed Starting August 2025

The “Expanding Access for Online Veteran Students Act” is a straightforward bill that fixes a long-standing issue for veterans using their Post-9/11 GI Bill benefits. Currently, if you are a veteran taking classes exclusively online and are enrolled more than half-time, the Department of Veterans Affairs (VA) caps your Monthly Housing Allowance (MHA) at 50% of the national average MHA rate. This bill completely removes that 50% cap, meaning eligible online students will receive the full MHA rate, just like their peers attending classes in person.

The Cap That Didn't Make Sense

For years, veterans who chose the flexibility of distance learning—perhaps because they lived in a rural area, had demanding family obligations, or were working full-time—were penalized financially. The current rule assumes that online students have lower housing costs, but anyone who pays rent or a mortgage knows that the bills don't stop just because your classes are remote. Section 2 of this Act corrects that by eliminating the language that limits the stipend to half the rate. This is a big deal for financial equity, recognizing that housing expenses are real whether you’re sitting in a lecture hall or your home office.

What the Full Stipend Means for Your Budget

This change translates directly into more cash flow for veterans pursuing their education online. For example, if the full MHA rate in your area is $1,800 a month, under the old rules, you were only getting $900. Once this bill takes effect, you’ll receive the full $1,800. That extra $900 could cover a major chunk of rent, utilities, childcare, or transportation costs—making the difference between scraping by and focusing entirely on studies. It essentially removes a financial barrier that pushed many veterans to choose less flexible, in-person programs just to get the full housing benefit.

The Rollout Date

While the change is beneficial, it’s not immediate. The bill specifies that the new full stipend rate will only apply to any school quarter, semester, or term that starts on or after August 1, 2025. Veterans planning their education should keep this date in mind, as the current 50% cap will remain in place until then. For the VA, this means an increased financial outlay, but for the veteran community, it’s a much-needed boost that finally treats online education as a fully supported pathway under the GI Bill.