For military families whose retirement and college savings have been decimated by the recession, the Post-9/11 Veterans Educational Assistance Act of 2008 – also known as the “New GI Bill” – took effect at a most opportune time.

Those who had funds set aside in college savings plans have seen much of this money evaporate under the weight of last year’s 40 percent decline in the U.S. stock market. When the new GI Bill went into effect on Aug. 1, 2009, however, eligible veterans and active duty service members gained an opportunity to earn a free college education with the new benefit estimated at as much as $97,000 based on current college tuition rates.

The new education assistance plan is available to most service members who served on active duty since Sept. 11, 2001. Unlike the Montgomery GI Bill, the new benefit package covers all in-state tuition and fees at public universities, provides a living allowance and includes a $1,000 per year stipend for books, and is transferable to spouses and children, if certain criteria are met.