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4 Reasons to Choose Your GI Bill Carefully

May 10, 2009

By Terry Howell

Several readers have asked “what’s the big deal about choosing the Post-​​9/​11 GI Bill over the Montgomery GI Bill.” In fact, one reader asked, “I don’t understand this. How can another program be better for me if I want to attend college? Isn’t the reason for the new Post-​​9/​11 GI Bill to pay for any state tuition of my choice?”

Many veterans think this is a no-​​brainer, but there are several factors that can severely limit your GI Bill education benefits. And, since you cannot change your mind once you make the switch, choosing carefully is your best option.

As a friend of mine likes to say, “the devil’s in the details.” Well, here are some of those details - reasons to choose carefully:

1. Payment rates are set for undergraduate tuition rates – this could mean that veterans who wish to attend grad school will need to pay the difference out-​​of-​​pocket.
2. The housing stipend is not available for students taking all their courses through non-​​traditional classes – online and other distant learning students won’t receive payment for cost of living. In addition, veterans talking courses on a half-​​time rate and active duty servicemembers are also excluded from the housing stipend.
3. The Post-​​9/​11 GI Bill is set at the in-​​state undergraduate tuition rate which varies from state-​​to-​​state. In some states the tuition rate may severely limit a student’s education options. For example, the tuition rate for California is $0 and Massachusetts is only $71. That won’t go very far in a private college or master’s degree program.
4. The new Post-​​9/​11 GI Bill does not cover trade schools or on the job training and apprenticeship programs like the Montgomery GI Bill.

I am not the only one warning servicemembers and veterans about making an uneducated decision about their education benefits. Department of Veterans Affairs officials are also encouraging anyone considering enrolling in the Post-​​9/​11 GI Bill program to learn the facts and make sure the Post-​​9/​11 GI Bill is the right fit for them.

The VA recommends getting answers to the following before changing programs:

1) Which benefit will pay more?
2) What tier of benefit am I eligible for under the Post-​​9/​11 GI Bill?
3) What type of training do I want to pursue?
4) How long do I expect to take to use the benefit?
5) Do I plan to attend school less than full-​​time?

The Bottom Line
If you plan to attend classroom based courses at a state operated college on a more than half-​​time basis — or - you intend to transfer your benefits to a family member, then the Post 9/​11 GI Bill most likely fits your needs perfectly. Otherwise, take your time — don’t be in a rush.

Learn more about comparing the GI Bill programs (next).

If you are eligible for the Post 9/11 GI Bill and other GI Bill benefits such as the Montgomery GI Bill (MGIB) you will at some point be required to make an irrevocable choice of which benefit you wish to receive.

It is important to note that the Post-9/11 GI Bill will not go into effect until August 1, 2009. Veterans with multiple benefit options will not be required to make a choice at this time. The VA will notify such veterans when they will be required to choose.

There are many things to consider before choosing which benefit you wish to receive and whether or not to participate in the Active-Duty or Reserve GI Bill programs. Consider the following most important factors when making your choice:

• The Type of Training You Plan on Taking
• The Amount of Benefits You Will Get Under Each Benefit
• Extending Benefits by 12 Months
• Other Factors to Consider

Types of Training Offered Through GI Bill Programs

There are several t types of training that can be taken using your Montgomery GI Bill benefits. These include college (undergraduate, graduate), certificate programs, on-the-job training, apprenticeship training, flight training, and non-college degree courses. However the Post-9/11 GI Bill can only be used for programs taken at a college or university.

If you switch training programs and you have eligibility under more than one type of GI Bill you MAY be able to change which GI Bill you draw depending on your eligibility.

For example: you have eligibility under the Post 9/11 GI Bill and the Selected Reserve GI Bill. You can get a degree in electrical engineering under the Post-9/11 GI Bill at a community college, then you can enroll in an apprenticeship program with the electrician's union under the Selected Reserve GI Bill and receive Journeyman certification.

Learn more about the programs covered under the MGIB.

Amount of Benefits Offered Under Each Program

The amount of benefits and the money you will receive is an important factor to consider before selecting a benefit. While you may think you will receive more money under the Post-9/11 GI Bill, it may not be the case. So read the following carefully:

NOTE: You can use the Military.com GI Bill Calculator to determine and compare the cash value of both benefits.

Under the Post-9/11 GI Bill you may receive:

• A tuition & fees payment (paid directly to the school) not to exceed the tuition & fees at the most expensive state Institution of Higher Learning (IHL)
  For a listing of the maximum tuition & fees for each state click here
  
  A monthly housing allowance based on the Basic Allowance for Housing (BAH) for an E-5 with dependents. This amount is based on the ZIP code of the location of the school you are attending
  To determine the BAH for your ZIP code click here (link goes to the DoD per diem website)
  
  An annual book stipend of $1,000 paid proportionately based on enrollment. The rate is $41 per credit hour. Once you have been paid $1,000 you are done for the school year.
• A one-time rural benefit payment of $500.00 if you reside in a county with 6 persons or less per square mile (as determined by the most recent decennial census) and:

1. either physically relocate at least 500 miles to attend an educational institution or
2. travel by air to physically attend an educational institution if no other land-based transportation exists

NOTE: Post-9/11 benefits are paid on a percentage basis, which is determined by your length of active duty service since Sept. 11, 2001. Click here to view the table of Post-9/11 benefit tiers.

Under all other GI Bill programs:

You will receive a monthly payment at a rate set by Congress that does not vary based on your expenses.

For a full-time student using the Montgomery GI Bill for Active Duty this comes to $1368 a month. This payment is paid to the student, making it the student's responsibility to pay the tuition and fees to school.

The following links will give you more exact break down for each benefit and level of enrollment:

• MGIB for Active Duty Payment Rates
• MGIB for Selected Reserve Payment Rates
• REAP Payment Rates

Click here to see a head to head comparison of benefits.

Extended GI Bill Benefits By 12 Months

Normally, your months of entitlement under the Post-9/11 GI Bill will be equal to the number of months of entitlement you have remaining under the MGIB-AD. However, if you use all of your MGIB-AD benefits, then you may be entitled to a maximum of 12 additional months of benefits under the Post-9/11 GI Bill. [Giving you a total of 48 months of education benefits]

Many veterans don't realize this means they may actually be better off to use up their MGIB before applying for the Post-9/11 GI Bill.

Here is an example:

Active duty veterans that are qualified for both the MGIB and Post-9/11 and have used some (lets say 26 months) of their MGIB may be able to extend their education benefit by 12 months - but - only if they first exhaust all of their remaining MGIB benefit before electing to receive Post-9/11 benefits.

However, if veterans switch to the Post-911 GI Bill before using all 36 months of the MGIB, they will only get the equivalent of the remaining months of their MGIB credited to their Post-9/11 account and will not be eligible to extend the benefit to 48 months.

Other Factors to Consider

• In some locations the costs of college and housing (which you would receive payment for under the Post-9/11 GI Bill) are less than the payment you would receive under the Montgomery GI Bill.
• In some states veterans do not have to pay tuition at selected state colleges. The Post-9/11 GI Bill may then pay only the housing benefit and the book stipend. (Since you have no tuition costs the Post-9/11 GI Bill will not pay the college any tuition.) Your payments under other GI Bill programs such as the Active-Duty GI Bill may be higher in these cases.
  Click here to see other GI Bill rates.
• If you are eligible for the Navy, Army or Marine Corps College Fund (enlistment Incentive programs) under MGIB and MGIB-SR programs you may receive your college fund as before, unless you are attending classes at half-time or less.
• If you participated in the $600 buy-up under the Montgomery GI Bill or REAP you will not receive that additional benefit under the Post 9/11 GI Bill.
• The Post-9/11 GI Bill payment is based on the amount of service completed after September 10, 2001. Your tuition & fees payment, housing allowance, and book stipend are all based on this percentage. You will receive a larger benefit if you served more active duty or mobilization time.

To see a breakdown of the amount payable based on service completed after September 10, 2001 click here.

For an explanation of the various types of training click here.

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Reminder: The Post-9/11 GI Bill is only payable at an Institution of Higher Learning (IHL), you are only eligible for GI Bill benefits for other types of training if you have eligibility under other GI Bill programs such as the MGIB-Active Duty GI Bill, MGIB-Reserve GI Bill, REAP, or VEAP. You should contact your Education Service Officer or the VA for more information.

* Paid on a proportional basis. See table below for details.

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Post-9/11 GI Bill Benefits rates are tiered based on your time in active service since Sept. 11. 2001. The following table shows the tiers for active-duty personnel:

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Post-9/11 GI Bill Benefits rates are tiered based on your time on active duty since Sept. 11. 2001. The following table shows the tiers for reserve and National Guard personnel:

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Related Content

• 5 Must Know GI Bill Facts
• Guidance for Choosing Between GI Bill Programs
• The GI Bill Application Process
• Post-911 GI Bill Transferability Fact Sheet
• GI Bill - Not Just for College

If you have questions about your personal eligibility or need more assistance, please call the VA at              

         1–888-GIBILL-1 or visit the VA’s GI Bill website at www​.GIBILL​.VA​.gov.

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