Q: I enlisted September 1999 with a $40,000 contract for 4 years of active duty service. Through out my seven years of active duty I reenlisted twice before my ETS dates. I was honorably discharged in 2007.

Today the Veterans Affairs Office informed me that the DOD Education Incentives Department, who regulates payment, set my benefit at $583.70 a month. Divided by 36 months is $21,012.20. This is $18,986 less than the $40,000 contract I signed.

When I applied for education benefits under the Post 9/11, the Veteran Advisor informed me I would not lose the ACF of $40,000. I have called the Education Incentives Dept.(1800-827-8272), but they do not pick up. I can't leave a message because the voicemail is full. Please advice, assist. Thank you for your time.

A: Ah yes, the ACF dilemma; it confuses a lot of people. Somewhere in your contract, the $40,000 will be referred to as either maximum ACF or total ACF. The wording was tricky. What you actually signed up for was a total of $40,000 between your Montgomery GI Bill (MGIB) and your ACF combined - not just the ACF portion. So, when you converted to the Post 9/11 GI Bill, they stripped out the MGIB portion and what you have left is your ACF amount.

What the Veteran Advisor told you is true - you did not lose your $40,000 ACF. You will get the Post 9/11 GI Bill (which in most cases is far better than the Montgomery GI Bill anyway) and your ACF of $21,012.20.

If you figure your Post 9/11 GI Bill over your 36 months:

• the average housing allowance is $36,000 ($1,000 per month). It runs as high as $2,700 per month in New York City.
• the book stipend is $4,000 (1,000 per year)
• and your tuition averages around $400 per credit hour for 12 credits per term, it all adds up to $212,000, plus your $21,012 ACF.

Your housing allowance is based off of an E-5 with dependents for the zip code of your school and your tuition the VA pays is state-dependent on your schools location, so these amounts may vary up or down from the average, but still, you are far exceeding your $40,000 ACF. So while you may feel you were duped on your GI Bill, you are coming out far better than you would have otherwise.