What happens with your GI Bill tuition and monthly housing allowance if you fail a class twice?

Monthly housing stipend: unaffected as long as you maintain a full-time course load. Usually this amounts to approximately 12 credits at a semester-based institution, but check your student bulletin.

Tuition: If you fail the course, and did not withdraw, then payments generally continue as normal, but your GPA will take the hit. Some institutions will remove the hit if you retake and pass the same course. Saying that, check your school's policy on failed courses. The college I went to had a policy whereby if a student fails a major course 3 times you cannot continue in that major; also, a third attempt is scrutinized by your advisor and may need to be approved by the dean. If the course is a gen-ed or mid-tier course (one required by virtually any major within a specific school/college), that may lead to possible academic probation or potentially expulsion.

Also, be aware that the admins for the GI Bill may make you reimburse the fund if you withdraw from a course for any reason (I would contact them first if the reason is something beyond your control to work out a potential deal). Before pursuing an additonal course attempt, ask yourself if you are in a major that you really want to be in, as tuition is only paid for courses within your declared major and minor(s). You may just want to change majors to something more manageable.

The one exception to required major/minor course selections and receving GI Bill tuition is your last semester - they will let you take miscellaneous courses to fulfill gaps in a full-time course load and receive the housing stipend if you have only a class or two left to graduate and need to generate a full-time schedule.

Usually if you fail a class twice they put you on academic suspention for a long semester. so if you get put on suspention for example summer sessions do not count so your really suspended for two semesters if you normally go to school over the shorter summer sessions. This means they put your financial aid on hold as well during that period of time.

If you fail a class or drop a class you will have to pay back all allotted allowances for that class. Happened to me when I had to drop a class due to work schedule.