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Colleges volunteer financial aid for returning soldiers

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"What we're trying to have is an incentive scholarship to fill the gap between what the GI bill provides and what tuition is," says Lou Traina, vice president for institutional advancement. It would cover the cost of one credit, $1,600, each semester. The school has raised about $350,000 so far and hopes to reach $1 million by December.

"I remember when I came back from overseas and was starting a family and trying to go to college, and it was very, very difficult," says Peter Thomas, a World War II veteran who is on the fund's board.

Currently, at least 160 of the school's 1,800 students are veterans, says Mr. Traina. "What we're hearing from students is that the college experience and getting a degree and moving into the career they want has been a vehicle for transition to civilian life," he says.

The Horatio Alger Association, a provider of need-based scholarships, recently awarded nearly 700 $5,000 scholarships to veterans of Iraq and Afghanistan trying to get a bachelor's degree. It is the first scholarship designed specifically for veterans of the current conflicts.

At the University of Illinois, meanwhile, Mr. van der Hooning came up with the idea for the scholarships after reading about the Welcome Home GI Bill that Rep. Rahm Emanuel (D) of Illinois had introduced. The bill, which hasn't left committee, included education benefits. "I thought, why are we waiting? Why does it have to go into a political process?" says van der Hooning.

He worked with Representative Emanuel and Lt. Gov. Pat Quinn to craft a program that used the state's existing veteran fund and picked up the shortfall to cover remaining expenses, including books, a computer, and travel to China, where part of the academic program takes place.

The response, he says, has been overwhelming. Since last month, he's talked to some 250 vets and awarded scholarships to about 30. Another 50 are in the pipeline. Some calls have been from younger soldiers who don't qualify for the executive MBA program - designed for mid-career candidates - so van der Hooning plans to make a similar program for younger professionals available next year.

Most of the feedback has simply convinced him how much this is needed.

"The morning after we announced this, I got a call on my cellphone at home from a soldier in Iraq who had just gotten back from his nighttime run," says van der Hooning. The man said his commander had told the unit about the scholarship before they went out, and they had talked about it all night. He submitted his résumé later that night and was admitted a few days later.

"He told me we have no idea what this does to their psyche, to their sense of looking forward to coming home after the third tour," says van der Hooning.

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