What Does the GI Bill Offer?
The GI Bill offers veterans a way to pay for some or all of their education after they have served on active duty for an agreed upon length of time. Benefits can be used during active duty in some cases, but many soldiers choose to postpone schooling until they can focus on it full time.
Montgomery GI Bill – Chapter 30 (MGIB)
The Montgomery GI Bill is offered to soldiers who began active service after June 30th, 1985 and completed three years of continuous active duty. This program is in the process of being replaced by the Post-9/11 GI Bill for those who began active duty after September 10th, 2001.
The MGIB includes up to 36 months of educational benefits for eligible veterans. These don't have to be consecutive months, so this actually covers tuition for four years of classes (assuming you take each summer off). This means you can afford to attend a college or a vocational school and get a four-year degree. Some veterans choose distance learning or on-the-job training benefits instead. Tutoring and even flight training may be reimbursed for qualifying individuals. This GI Bill also covers the cost of taking national assessment tests and certain tests for licenses and certifications. All these options make it possible for soldiers returning from active duty to choose the ideal career for their skill set and personality.
Each individual state determines which schools and courses qualify under the MGIB. That means where you live may affect what you can or cannot be reimbursed for. MGIB payments are made directly to you and not to the educational institution. You will receive a monthly allowance once proof of enrollment into a certified, degreed program is turned in.
MGIB Participation – Fees
During your first 12 months of active service, you would have had $100 deducted from your paycheck each month (unless you declined MGIB participation in writing). In exchange, you will receive a much larger dollar amount in monthly payments while going to school. The exact amount depends on a set schedule that is posted on the VA site and changes each year. However, the reimbursement for just one month of tuition is over $1200*. This means you more than make up for those payroll deductions as soon as you start using your benefits.
There was also a Buy-Up program offered under the MGIB. Under this plan, $600 additional dollars contributed by a soldier during active duty would entitle him/her to an additional $5,400 in benefits. If you took advantage of that opportunity, you will be able to afford to go to a more expensive school or study for longer. Also, if the DoD added a "kicker" to your benefits you will receive more money.
You must use your MGIB benefits within 10 years of your discharge from the military. Don't wait!
*Note: Part-time students do not get as much as full-time students. If you start using your MGIB benefits while you are still on active duty you may also be eligible for less.
Post-9/11 GI Bill
The Post-9/11 veterans' educational benefits went into effect on May 1st, 2009. The first payments toward tuition and fees under these new rules will not be processed until August 1st of 2009.** Tuition checks will be made out to the college or other institution of higher learning instead of to you. This means you don't have to worry about getting those payments in on time. This GI Bill pays out over a 36-month period and there is no $1,200 fee for participation.
If you attend school in person, a housing allowance and a stipend for books are also available. This makes it more likely that you will have the opportunity to get a great education at the college of your choice. You have 15 years to take advantage of your benefits under this version of the GI Bill.
**Note: These payments won't be retroactive, so don't take any classes you can't afford right now assuming they will be paid back out of the new program.