For the GI Bill, I put in $1200 ($100/month for the first year), and I while enrolled at an accredited university I was paid $400/month. I could use that however I wanted. Early 90's, that didn't come close to paying for much, but it was certainly something.
I was in the Marines, however. The Army, Navy and Air Force had matching funds and paid a lot more (like triple). This may have all changed or become consolidated.
I've also been through the VA for something and it's very much a government bureaucracy. If you have things documented it will run smoother, and it may run slow at times, but there is certainly no policy of denying everything.
The poster above just has an axe to grind and isn't concerned with reality.