What Is the Yellow Ribbon Program?

The Yellow Ribbon GI Education Enhancement Program was created as part of the Post-9/11 Veterans Educational Assistance Act of 2008. Here’s the basic concept: when you attend a private school, an out-of-state public school, a graduate program, or a foreign institution, your Post-9/11 GI Bill benefits may not cover everything. For the 2025-2026 academic year, the GI Bill caps private school payments at $29,920.95—but many private universities cost significantly more.

This is where Yellow Ribbon steps in. Schools voluntarily agree to cover a portion of the remaining tuition gap through grants or scholarships. The VA then matches whatever the school contributes, dollar-for-dollar. So if your school contributes $10,000 toward your remaining tuition, the VA adds another $10,000—potentially eliminating your out-of-pocket costs entirely.

You don’t receive Yellow Ribbon funds directly. Both the school’s contribution and the VA’s matching funds are paid directly to your institution and applied to your tuition bill.

Eligibility for the Yellow Ribbon Program is more restrictive than basic GI Bill eligibility. You must qualify for Post-9/11 GI Bill benefits at the maximum (100%) benefit level, which requires meeting specific service criteria.

You’re eligible if at least one of these applies:

You served at least 36 months on active duty (either continuously or with breaks) after September 10, 2001, and received an honorable discharge. You received a Purple Heart on or after September 11, 2001, and were honorably discharged after any amount of service. You served at least 30 continuous days after September 10, 2001, and were discharged for a service-connected disability. You’re an active-duty service member with at least 36 months of service. You’re using transferred benefits from someone who meets the above criteria. You’re a Fry Scholarship recipient (as of August 1, 2018).

If you served less than 36 months and qualify for only 70% or 80% of Post-9/11 GI Bill benefits, you’re not eligible for Yellow Ribbon—even if you attend a participating school.

Understanding how Yellow Ribbon calculates your benefit is essential for financial planning. The process works in a specific sequence.

First, your total tuition and mandatory fees are calculated. Then any other financial aid designated specifically for tuition (excluding federal Title IV aid, such as Pell Grants) is subtracted. The Post-9/11 GI Bill then pays its maximum amount. Whatever remains is your “tuition gap”—and this is where Yellow Ribbon applies.

Here’s a practical example: You attend a private school charging $50,000 per year. The GI Bill pays its maximum of $29,920.95. That leaves a $20,079.05 gap. If your school’s Yellow Ribbon agreement contributes $10,039.53, the VA matches that amount. Your gap is completely covered.

However, schools control two critical variables: how much they contribute and how many students they accept into the program. Some schools offer unlimited Yellow Ribbon spots with full tuition coverage; others cap both the dollar amount and the number of participants. Enrollment is first-come, first-served, so applying early matters.

The Yellow Ribbon application process requires multiple steps, but it’s manageable if you follow the sequence correctly.

School participation in Yellow Ribbon is entirely voluntary. Some institutions cover 100% of the remaining tuition for unlimited students; others offer modest contributions to a handful of students. Your school choice significantly impacts your out-of-pocket costs.

The VA provides two tools to research participating schools. The “Find a Yellow Ribbon School” search tool lets you filter by state, contribution amount, and degree level. The GI Bill Comparison Tool provides broader school information, including Yellow Ribbon participation, alongside graduation rates and other metrics.

Key details to check for each school:

The maximum contribution amount per student (this is what the VA will match). The maximum number of students the school accepts into the program each year. Which degree levels are covered (undergraduate, graduate, doctoral). Which specific colleges or programs within the university participate? A school might offer Yellow Ribbon for its nursing program but not its law school.

Foreign schools became eligible to participate starting in the 2021-2022 academic year. The VA updates the participating foreign school list each September following an open enrollment period that runs from June through July.

Understanding Yellow Ribbon’s scope helps you budget accurately. The program specifically covers mandatory tuition and fees that exceed your Post-9/11 GI Bill maximum. However, several common educational expenses fall outside its reach.

Yellow Ribbon covers: Tuition charges above the GI Bill cap. Mandatory institutional fees are required for enrollment. Out-of-state tuition differentials at public schools.

Yellow Ribbon does NOT cover: Room and board expenses. Books and supplies (though your GI Bill provides a separate stipend for these). Study abroad costs unless your degree program requires a specific course. Penalty fees such as late registration, parking fines, or returned check fees. Any fees that aren’t mandatory for your program.

One important clarification: you don’t need to attend full-time to receive Yellow Ribbon benefits. Part-time students with 100% GI Bill eligibility still qualify. However, if you reduce your course load, both your GI Bill and Yellow Ribbon payments adjust proportionally.

One significant advantage of Yellow Ribbon: you don’t need to reapply every year. If your school continues participating in the program, it must continue funding your benefits in subsequent years, provided you meet all requirements.

To maintain your benefits, all of these must remain true:

You make satisfactory academic progress according to your school’s standards. You remain continuously enrolled without breaks (in accordance with your school’s enrollment policies). You haven’t exhausted your Post-9/11 GI Bill entitlement.

If you take a leave of absence but return to the same school while it still participates, you should retain your Yellow Ribbon status—assuming you still meet the other requirements. However, if you transfer to a different school, you must apply for Yellow Ribbon at your new institution. Your previous school’s acceptance doesn’t guarantee acceptance elsewhere.

The funding amount you receive also stays consistent. If you’re accepted into Yellow Ribbon and receive $5,000 in your first year, you’ll continue receiving $5,000 each subsequent year (assuming your school maintains its agreement).

Several legislative changes have expanded Yellow Ribbon eligibility beyond the original criteria. Understanding these expansions helps you determine whether you qualify through alternative pathways.

Fry Scholarship Recipients: Since August 1, 2018, children and surviving spouses using the Marine Gunnery Sergeant John David Fry Scholarship qualify for Yellow Ribbon benefits. The Fry Scholarship provides Post-9/11 GI Bill-equivalent benefits to dependents of service members who died in the line of duty after September 10, 2001.

Purple Heart Recipients: Also effective August 1, 2018, veterans who received a Purple Heart on or after September 11, 2001, and were honorably discharged qualify for Yellow Ribbon—regardless of their total active-duty time. Previously, the 36-month service requirement excluded some Purple Heart recipients.

Active-Duty Service Members: Starting August 1, 2022, active-duty service members who have served at least 36 months and are eligible at the 100% benefit level can participate. Their spouses using transferred entitlement also qualify. Previously, active-duty members were excluded entirely.

Transferred Benefits: If a veteran transfers their Post-9/11 GI Bill benefits to a spouse or child, the dependent can use Yellow Ribbon if the original service member qualified at the 100% level. Children of active-duty members may be eligible even if the service member isn’t eligible themselves.