Army Staff Sgt. Stephen Lee was still in Afghanistan—his second deployment to the war zone—when he began looking at colleges. The California native settled on the University of Wisconsin-Madison and already had begun his studies when he learned of the coming changes to his GI Bill benefits.

He was looking at an extra $20,000 a year out of pocket.

“It was a huge jump,” says Lee, whose military occupational specialty, or MOS, was human intelligence collector. “And that’s when I had to start thinking really hard about whether or not I was going to be able to afford school, or whether I’d have to take a year off and work while I tried to get in-state status.”

Around that time, the university opted into the Yellow Ribbon Program, a provision of the GI Bill under which the school and the VA agree to split the difference between the resident and nonresident rate. There was only a limited amount set aside for the program, and students have to reapply each year, but Lee lucked out.

“This uncertainty almost took me out of school,” he says. “California’s not home for me anymore. At the same time, I didn’t have any choice of living in Kentucky or Tennessee. That’s where the Army told me I was going. You’re kind of in this limbo where you don’t know where your state residency lies.”

He graduated in May with a bachelor’s degree in political science.

Hayleigh Perez’s case is a prime example of how convoluted these situations can become.

Perez, 26, enlisted in 2005 and was stationed at North Carolina’s Fort Bragg, where she trained as a radiology technologist. She later did a 15-month deployment to Camp Bucca, Iraq.

While serving, the Iowa native met and married Sgt. 1st Class Jose Perez-Rodriguez, a medic, and the couple bought a home in Raeford, near the North Carolina base. Perez’s next assignment took her to Texas, where she mustered out in 2009.

When Perez learned in late 2011 that her husband’s orders would bring the family back to North Carolina, where they had continued paying property taxes, she began applying to schools. She was accepted at both Fayetteville State University and UNC-Pembroke.

But while FSU granted her resident status, Pembroke—which had the courses she most required—classified her as an out-of-state student. The difference in her out-of-pocket costs: $4,603.50 per semester.

When Perez’s appeal to UNC was denied, she and Thigpen’s group sued.

“Mrs. Perez provided ample evidence to both UNC System Schools in order to substantiate her domicile as a resident in and of the State of North Carolina,” she said in her suit, filed Nov. 8. “Mrs. Perez filed for a residency appeal hearing with UNC Pembroke, was denied any representational assistance and in turn her appeal was denied after being treated with malice and contempt by UNC Pembroke officials.”

The university system has not yet responded to the complaint, but spokeswoman Joni Worthington denied discrimination against Perez or any other veteran.

“We certainly believe that the university has complied fully with federal and state law,” she told The Associated Press. “On the contrary, we have demonstrated a strong commitment to be very supportive of the military, which is obviously very important here in North Carolina.”

Under North Carolina law, active-duty service members stationed in the state are to be considered residents. But Perez had been discharged by the time she was accepted at the schools and had not yet been back the requisite year.

“The burden of proof is on the student,” Worthington says.

Worthington agreed that because of the GI Bill changes, “recipients are financially disadvantaged if they choose to attend a public institution of higher education. We believe the level of tuition benefits available at private institutions should apply to public institutions, as well.”

(Next page: What’s being done about the problem)


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