Relief societies cut back on education grants - Navy Education - GI Bill | Navy Times

Relief societies cut back on education grants

The three largest military relief societies are tightening their belts after their investment portfolios lost a combined $163 million in the recent stock market downturn.

The societies still sit on $419 million in reserve assets and say their recent losses will not impair their main mission: to help eligible troops and families buy food, pay for car repairs and take care of other unforeseen emergency needs.

But they are trimming back in other areas, notably in their education grant programs.

According to preliminary, unaudited figures for 2008:

• Army Emergency Relief’s reserve fund lost $80.6 million and stands at $213 million.

• Air Force Aid Society’s reserve fund lost $40.8 million and is at $123 million.

• Navy-Marine Corps Relief Society’s reserve fund lost $42 million and is at $84 million.

AER has cut its 2009 budget for education grants by one-third, to $8 million. Retired Army Col. Dennis Spiegel, deputy director for administration, said AER will try to give some money to all who qualify, but everyone probably will get less. The average amount in 2008 for education grants for children was $3,100.

The Navy-Marine Corps Relief Society has converted its overseas Spouse Tuition Aid Program from education grants to no-interest loans of up to $3,000, with a 24-month repayment term.

Air Force Aid Society is cutting its number of $2,000 education grants to 3,000 this year from about 3,500 last year, said retired Air Force Lt. Gen. John Hopper Jr., AFAS chief executive officer.

Although the investment portfolio of Coast Guard Mutual Assistance, the smallest relief society, is down about 18 percent, CGMA has decided to increase its education assistance, said Barry Boisvere, executive director.

Supplemental education grants that offset costs such as textbooks and lab fees have increased to $250 from $160 for eligible Coast Guardsmen and family members.