New Bill Lets Veterans Use GI Bill Funds to Pay Up to $500 for College Credit Exams

The newly proposed Military Learning for Credit Act of 2025 is a straightforward piece of legislation designed to make it easier and cheaper for veterans to translate their military experience into college degrees. Essentially, it allows eligible veterans and their families to use their existing educational benefits—like the GI Bill (Chapters 30, 32, 33, 34, and 35)—to pay for tests and assessments that grant college credit.

The Fast Pass to a Degree

This bill directly tackles the cost barrier for veterans trying to skip general education courses. Previously, veterans often had to pay out-of-pocket for exams like the DANTES Subject Standardized Test Program (DSST) or the College Level Examination Program (CLEP), which test knowledge already gained through military service or life experience. Now, the bill lets veterans use their existing educational funds to cover the cost of these exams, portfolio assessments (where a college reviews military training documentation), and other similar tests approved by the Secretary of Veterans Affairs (SEC. 2).

This is a big win for saving time and money. Imagine a veteran who was a logistics specialist in the service. Instead of spending a semester and thousands of dollars on a basic supply chain management class, they can take a CLEP exam, pay the fee using their benefits (up to $500 per test), and get the credit immediately. For busy people juggling work, family, and school, this acceleration is invaluable.

The Cost: Trading Dollars for Time

While the bill reduces the immediate financial burden, there’s a crucial trade-off to understand. The legislation clearly states that when you use your benefits for these tests, it counts against your total entitlement time (SEC. 2). There is a cap of $500 per covered exam. The number of months deducted from your total benefit time is calculated by dividing the test cost by your normal monthly benefit rate.

For example, if your monthly benefit rate is $1,500 and you use the full $500 cap for an exam, you will lose about one-third of a month of entitlement. This means you are essentially trading a small portion of your future tuition and housing allowance for immediate credit. This calculation requires careful consideration: is it worth reducing your total benefit time to gain credits faster? For veterans close to finishing a degree, the answer is likely yes; for those just starting, it requires a closer look at their long-term education plan.

No Conflict with DoD Assistance

One clear provision in the bill ensures that using these funds for testing does not affect eligibility or benefits under the Department of Defense Tuition Assistance Program (SEC. 2). This is important because it means veterans can utilize both avenues for funding, maximizing their resources without penalty. The bill is a practical update that recognizes that modern learning isn't always confined to a traditional classroom and provides a necessary funding mechanism to match the reality of veterans' educational paths.