Servicemen's Readjustment Act

AAA

DEFINITION of 'Servicemen's Readjustment Act'

A United States law that provided benefits to military veterans. Benefits provided by the Servicemen’s Readjustment Act included loans and mortgages at low interest rates, unemployment compensation, and more commonly known, payments to cover college tuition and board. These benefits were available to any veteran, male or female, who had served during WWII, provided he or she served for at least 90 days and was not dishonorably discharged. Combat service was not a requirement. The law was signed on June 22, 1944.

INVESTOPEDIA EXPLAINS 'Servicemen's Readjustment Act'

During WWII, the U.S. federal government sought a way to reintegrate veterans when they returned from service. The U.S. Department of Labor estimated upwards of 15 million veterans would be coming home, and without a program in place, they could overwhelm the labor market. Memories of the poor treatment of veterans following WWI was relatively fresh in politicians’ minds, as well as protests like the Bonus March and the creation of shanty towns (dubbed “Hoovervilles” after President Herbert Hoover).

The effects of the law were considered positive. Low-interest mortgages helped fuel a housing boom, with many veterans moving out of urban areas to suburban communities. By the time the law expired more than four million home loans had been granted. Nearly half of all veterans used the tuition benefit to go to college or to attend other training programs, with nearly $14.5 billion in funding dispersed.

While the law expired in 1956, the Servicemen’s Readjustment Act’s nickname, the G.I. Bill, has been used to describe other veterans’ benefit programs in subsequent years.

RELATED TERMS
  1. Investment Company Act Of 1940

    Created in 1940 through an act of Congress, this piece of legislation ...
  2. Essential Health Benefits

    A set of benefit requirements that must be included in certain ...
  3. Law Of Diminishing Marginal Productivity

    An economic principle that states that while increasing one input ...
  4. American Taxpayer Relief Act Of ...

    A U.S. bill signed by President Obama on January 2, 2013, that ...
  5. Valued Policy Law - VPL

    A statute that requires insurance companies to pay the full value ...
  6. Volunteer Protection Laws

    Federal and state legislation that shields individuals, nonprofit ...
RELATED FAQS
  1. Who is eligible for student loan forgiveness?

    Your eligibility for student loan forgiveness depends on the type of student loan in question. If you have a federal Stafford ... Read Full Answer >>
  2. All of the following are regulated by the Investment Companies Act of 1940 EXCEPT

    a) closed-end funds.b) private investment funds.c) mutual funds.d) unit investment trusts. Answer: B.Also called hedge ... Read Full Answer >>
  3. How does the American Housing Rescue and Foreclosure Prevention Act of 2008 affect ...

    The passage of the American Housing Rescue and Foreclosure Prevention Act of 2008 at the end of July 2008 made about $15 ... Read Full Answer >>
  4. How does accrued interest work on student loans?

    Using private and federal student loans to finance a college education is a common funding strategy, but students are often ... Read Full Answer >>
  5. Where did the term Magna Cum Laude originate from and why is it used in academics?

    The Latin phrase magna cum laude translates to "with great praise." Literally, "magna" translates to "great," "cum" to "with" ... Read Full Answer >>
  6. How do managers measure human capital?

    Human capital is the knowledge, skill sets and intangible assets that add economic value to an individual. Human capital ... Read Full Answer >>
Related Articles
  1. Entrepreneurship

    10 Tax Benefits For The Self-Employed

    Running your own business has both personal and financial perks.
  2. Credit & Loans

    An Introduction To Student Loans And The FAFSA

    Learn how to fill out the FAFSA form so that it is easier for you to fund your education.
  3. Professionals

    Economic Effects Of Life After Military Service

    The end of operations in Iraq and Afghanistan will have an impact on the economy. Discover how.
  4. Professionals

    Financial Careers After Military Service

    Experience and knowledge gained in the military can transfer over to many business and finance jobs.
  5. Taxes

    A Concise History Of Changes In U.S. Tax Law

    We look at how U.S. taxes have changed since their inception.
  6. Credit & Loans

    All About Student Loans

    Student loans bridge the gap between college savings, scholarships and the part-time work.
  7. Retirement

    Pension Law Could Reduce Your Payout

    Discover how this act negatively affects your lump-sum withdrawals.
  8. Credit & Loans

    What It Costs To Study Abroad In London

    Studying in London puts you right at the center of a cultural, academic and business hub. And careful budgeting will get you there. Here's how.
  9. Savings

    Best Ways To Save Money On College Textbooks

    Here are nine ways you can stretch your budget for college textbooks. No, wait – maybe make that ten.
  10. Personal Finance

    How Much is a Graduate Degree Worth?

    Whether or not a graduate degree will increase your earnings depends on a number of factors.

You May Also Like

Hot Definitions
  1. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  2. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  3. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  4. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  5. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
  6. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
Trading Center