More than 1,100 private and public schools have signed agreements with the Veterans Affairs Department to reduce tuition for student veterans in the coming school year as part of the Post-9/11 GI Bill’s “Yellow Ribbon” program, VA announced Wednesday.

Under this program, VA matches dollar-for-dollar any reduction in fees charged to GI Bill students if tuition and fees exceed the reimbursement rate in the state where the school is located. Because schools can have more than one Yellow Ribbon agreement, VA officials said a total of 3,200 agreements are in effect for the 2010-11 school year.

That is about the same number of schools and total agreements that were in place for the 2009-10 year.

VA has posted a list of participating institutions.

Steady participation in the program is a pleasant surprise for VA officials, who had been concerned that some schools might drop out of the program because of tightening economic conditions.

Yellow Ribbon benefits, often available on a first-come, first-served basis to enrolled students, are an important addition to Post-9/11 GI Bill for those paying more in tuition and fees than the reimbursement cap set for each state. The cap is based on the highest tuition and fees charges for an in-state student taking undergraduate courses at a four-year public college or university. Public school students paying out-of-state tuition rates or taking graduate classes can have higher costs, as can students at private schools.

Yellow Ribbon benefits have eligibility limits. One key restriction is that only people who are eligible for full GI Bill benefits, earned from either completing three years of active service or being separated as a result of a service-connected disability, may apply. That eligibility extends to both veterans and active-duty service members, or to family members using transferred benefits from someone who had a full entitlement.

Rules for applying for Yellow Ribbon benefits vary from school to school. Students interested in applying for the extra assistance should contact their college or university.

In a statement, VA Secretary Eric Shinseki said he is “pleased that so many institutions are joining us to support the educational goals of the men and women who served this nation so honorably.”

The Yellow Ribbon list was released one day before the Senate Veterans’ Affairs Committee meets to consider changes in the year-old Post-9/11 GI Bill program. The only significant change under consideration for the Yellow Ribbon program would be to remove a restriction that prevents National Guard and reserve members who have less than three years of active service from being eligible because they have not earned 100 percent of the tuition benefit. This change, if approved, is not expected to take effect until the Spring 2012 term.

By Rick Maze – Staff writer Posted : Wednesday Aug 4, 2010 12:06:42 EDT