How to Use CLEP and DSST Exams to Save 12 Months of GI Bill Benefits

Key Takeaways

• CLEP and DSST exams let you earn college credit without using your GI Bill months for classroom time.
• Passing exams can eliminate up to 30–45 credit hours, equal to two full semesters or more.
• The VA reimburses exam fees, but reimbursement can reduce GI Bill entitlement if not timed strategically.
• Taking exams before activating full-time GI Bill benefits can preserve up to 12 months of eligibility.
• A coordinated degree plan and exam strategy is critical to maximizing savings.

Why CLEP and DSST Matter for GI Bill Optimization

The Post-9/11 GI Bill provides up to 36 months of education benefits. For many veterans, that equals four academic years of tuition, housing allowance, and book stipends. The problem is that once those 36 months are used, they are gone.

CLEP (College Level Examination Program) and DSST (originally DANTES Subject Standardized Tests) allow you to earn college credits by passing an exam instead of completing a 16-week course. If structured correctly, these exams can eliminate an entire freshman year of college and preserve up to 12 months of GI Bill benefits for graduate school, housing payments, or career certifications.

Understanding CLEP and DSST Exams

What Is CLEP?

Administered by the College Board, CLEP exams primarily cover lower-division general education courses such as:

• College Composition
• College Algebra
• U.S. History I and II
• Psychology
• Biology

Most exams award 3 to 6 credit hours depending on the institution.

What Is DSST?

DSST exams are often more flexible and include business, technical, and upper-level subjects such as:

• Principles of Finance
• Business Ethics
• Organizational Behavior
• Cybersecurity

Many schools accept DSST for upper-division credit, which can be strategically valuable.

CLEP vs. DSST Comparison

FeatureCLEPDSSTAdministered ByCollege BoardPrometric / DANTESTypical SubjectsGeneral EducationBusiness, Technical, Upper-LevelCredit LevelMainly Lower DivisionLower and Upper DivisionBest Used ForFreshman Year ReplacementMajor or Elective Credits

How the GI Bill Covers CLEP and DSST

Exam Fee Reimbursement

The Department of Veterans Affairs reimburses approved exam fees, including CLEP and DSST. However, reimbursement may be charged against your GI Bill entitlement based on the cost of the test.

For example, if the VA reimburses $100 for an exam, a proportional amount of your entitlement is deducted. While the deduction is typically small, it is not zero.

The Strategic Insight Most Students Miss

The key is not just reimbursement. The real benefit comes from replacing semester-long courses. If one semester equals approximately 4 months of benefits, eliminating two semesters can save 8 months. Combining CLEP and DSST strategically can push that savings closer to 12 months.

How to Save 12 Months of GI Bill Benefits: Step-by-Step Strategy

Step 1: Lock in Your Degree Plan First

Before taking any exam, request a detailed degree map from your college. Identify:

• General education requirements
• Core major courses
• Elective requirements
• Maximum transfer or exam credit limits

Many universities cap exam transfer credit at 30 credits. Some allow 45 or more.

Step 2: Target High-Impact Courses

Focus on courses that:

• Are required for graduation
• Have high pass rates nationally
• Cover material you already know from military training

High-yield examples include:

• College Algebra
• Analyzing and Interpreting Literature
• Introductory Psychology
• Principles of Management
• Information Systems

Step 3: Build a 30–45 Credit Examination Block

Here’s what 30 credits can represent:

Total Credits Earned by ExamApproximate Semesters EliminatedGI Bill Months Preserved15 Credits1 Semester4 Months30 Credits2 Semesters8–9 Months45 Credits3 Semesters12 Months

If your school allows 45 transfer credits and you pass those exams before enrolling full-time under the GI Bill, you effectively remove an entire academic year from your benefit usage timeline.

Step 4: Time Your GI Bill Activation

The biggest mistake veterans make is activating GI Bill benefits before exhausting low-cost credit options.

Best practice sequence:

1. Take CLEP and DSST exams while on active duty if possible.
2. Confirm credits are officially accepted and posted.
3. Enroll full-time only after maximizing exam transfers.

This sequencing prevents unnecessary benefit consumption.

Real-World Example Scenario

Assume a veteran pursuing a Bachelor of Business Administration:

• 120 total credit hours required
• 36 months of GI Bill eligibility available

By earning:

• 24 credits via CLEP in general education
• 12 credits via DSST in business electives

Total: 36 credits replaced.

Instead of completing eight traditional semesters, the student now needs only six full semesters. At roughly 4.5 months per semester of entitlement usage, that saves approximately 9 to 12 months of GI Bill benefits.

Those preserved months can fund:

• A master’s degree
• A housing buffer during job transition
• Licensing or certification exams

Common Pitfalls to Avoid

Not Verifying School Acceptance

Not all institutions accept both CLEP and DSST. Some limit upper-level credit. Always confirm with the registrar in writing.

Ignoring Residency Requirements

Many universities require 25 to 30 percent of credits to be completed directly at the institution. Exceeding exam limits can create transfer issues.

Overlooking Upper-Level Requirements

Some degrees require a minimum number of upper-division credits. DSST is valuable here because certain exams qualify as upper-level, unlike most CLEP tests.

Taking Exams Without Preparation

Each failed exam costs time and may reduce future reimbursement eligibility. Use official study guides, base education centers, or on-base testing resources.

Advanced Optimization: Stack with Military Credits

In addition to CLEP and DSST, request a Joint Services Transcript. Many military occupations translate into college credit. When combined with exam credits, some veterans begin college with 45 to 60 credits already satisfied.

This stacking approach significantly accelerates degree completion while preserving GI Bill months.

Pre-GI Bill Activation Checklist

• Choose your degree and university.
• Request official transfer credit policies.
• Identify exam-eligible courses in your degree map.
• Take CLEP and DSST exams strategically.
• Ensure credits are posted before enrolling full-time.
• Consult a VA certifying official to confirm benefit timing.

By following this structured strategy, you transform CLEP and DSST from optional exams into a deliberate financial tool. The result is not just faster graduation, but measurable preservation of GI Bill entitlement that can fund your next academic or professional step.

Frequently Asked Questions about Using CLEP, DSST, and the GI Bill

How can CLEP and DSST exams help you save GI Bill benefits?

CLEP and DSST let you earn college credit by exam instead of sitting in class. When you replace 30–45 credits with exams before using your GI Bill, you can cut out up to a full year of school and keep 8–12 months of benefits for later use.

Does using the GI Bill to reimburse CLEP and DSST exams reduce your entitlement?

Yes. When the VA reimburses your CLEP or DSST exam fee, it deducts a small, prorated amount of your GI Bill entitlement. The charge is usually small, but it is not zero, so timing and planning matter.

What is the best time to take CLEP and DSST exams if you plan to use the GI Bill?

You get the most benefit if you take CLEP and DSST exams before you start full-time enrollment under the GI Bill. This way, exam credits reduce the number of semesters you need, so you use fewer months of entitlement overall.

How many credits can you usually earn through CLEP and DSST exams?

Many schools let you apply 30 exam credits, and some allow 45 or more. If you reach 30–45 credits through CLEP, DSST, and military transcripts, you can often skip one to three full semesters of classes.

Do all colleges accept CLEP and DSST credits the same way?

No. Each college sets its own rules for which CLEP and DSST exams it accepts, how many credits you can transfer, and whether credits count as lower- or upper-division. You should confirm policies in writing with the registrar before testing.

What is the difference between CLEP and DSST for GI Bill planning?

CLEP mostly covers lower-level general education courses, which helps you replace your freshman year. DSST includes more business, technical, and upper-level exams, which can help you meet major and upper-division credit requirements.