The restriction regarding the Private only applies if you are using GI Bill benefits at a Part 141 school that is NOT part of a degree granting "Institute of Higher Learning (IHL)" as the VA likes to call it. Basically what this means is you can get everything paid for (including your Private) if you do it through a college or university that has a flying program that leads to some type of degree (Associate's or Bachelor's).

If you just go to the local FBO that is a Part 141 school that isn't associated with a university, then you cannot use the money for the Private rating. Additionally, you can only get reimbursed for 60% of the cost of flight training (after you paid for the lessons up front, you are reimbursed each month).

Someone please correct me if I'm wrong about the straight Part 141 school under the Post 9/11 GI Bill. My ratings were done under the Montgomery Ch. 30 GI Bill, and I got reimbursed each month (4-6 weeks after the paperwork was submitted. Going to do my helicopter ratings through an IHL which will cover 100% of all flight and groundtraining costs, including the Private.

Hope that helps.