New Bill Lets Vets Use GI Bill Funds for CLEP/DSST Exams, Capping Costs at $500

The Military Learning for Credit Act of 2025 is a straightforward piece of legislation designed to help veterans get college credit faster and cheaper. Essentially, it allows eligible veterans to tap into their existing educational benefits—think the Post-9/11 GI Bill or similar programs—to cover the costs of certain exams and assessments that grant college credit.

Turning Military Service into College Credit

For anyone who’s served, this bill is about making sure that the skills and training you picked up in uniform don’t just disappear when you transition to civilian life. The bill specifically authorizes veterans to use their benefits to pay for exams like the DANTES Subject Standardized Test Program (DSST) and the College Level Examination Program (CLEP). These tests are a huge time and money saver because passing them often means skipping a whole semester of a required college course. The bill also covers the National Career Readiness Certificate exam and, importantly, assessments where a college reviews a veteran's portfolio or written history to award credit for prior military learning.

The $500 Cap and the Trade-Off

There’s a hard limit on how much of your benefit money you can use for these tests: the lesser of the actual test cost or $500. This cap is designed to cover the expense without draining the entire fund. Here’s the catch, and it’s the main thing veterans need to watch out for: Every dollar you spend on these tests counts against your total educational entitlement time. The VA calculates how many months of benefits are deducted by dividing the cost of the exam (up to the $500 limit) by your current monthly assistance rate. While this is a minor drawback, it’s a trade-off—a few hours of entitlement time now for potentially skipping hundreds of hours of classroom time and thousands of dollars in tuition later.

Streamlining the Path to a Degree

This bill addresses a common frustration for veterans: having to pay out-of-pocket for tests that validate knowledge they already possess. By covering these costs, the legislation accelerates the path to a degree. For example, a veteran who spent four years as a logistics specialist might be able to CLEP out of several business management courses, saving time and money right out of the gate. Crucially, the bill makes it clear that using your benefits for these tests won't interfere with any other educational assistance you might be getting from the Department of Defense, like Tuition Assistance. This separation ensures that the programs don't accidentally cancel each other out, which is a smart move for maximizing benefit usage.