6 Game Changers to Your GI Bill Benefits

 Eligibility for each GI Bill differs slightly as noted below, however two traits they all share is that a service obligation is needed to qualify and a specified amount of time to use the benefits. The Forever GI Bill eliminated the time limitation to use Post-9/11 GI Bill.

MGIB-AD

Also known as Chapter 30, it is a paid program meaning enlistees must choose the program at the time of enlistment and agree to pay $100 per month for their first 12 months of service. In return, they can get up to 36 months of a monthly education benefit, provided they meet the minimum service obligation which depending on the enlistment is at least 24 or 36 months. With three years or more of qualifying service, the current monthly pay rate for a full-time student is $1,928 for up to 36 months. With less than three years of service, the full-time student amount drops to $1,566 per month; Under some extenuating circumstances, the service time can be less than 24 months; in those cases, the number of months of coverage is typically based on one month of benefit for one month of service.

MGIB-SR

Under Chapter 1606, Selected Reservists going to school full-time can get up to $375 per month for 36 months in exchange for a six-year enlistment; MGIB-SR does not have an initial cost like the MGIB-AD. This GI Bill does not have any residual benefit after separation, so its benefit must be used while in the Selected Reserve and usually within the first 14 years of service. Selected Reservists using the MGIB-SR typically also qualify for Federal Tuition Assistance and even some State Veteran Education Benefits depending on their state of residence. Under both Montgomery GI Bills, students are paid a flat rate each month and must pay their own tuition, fees, books and other education-related expenses from these funds, out-of-pocket or through other education funding sources, such as scholarships and grants.

Post-9/11

When Chapter 33 came out it was a radical departure from all the other GI Bills before it. Under this GI Bill, a minimum of 40 percent eligibility is authorized with as little as 90 days of service. From there, coverage incrementally increases 10 percent based on each additional six-month period of service, with eligibility topping out at 100 percent with 36 months of service. Also, this GI Bill uses a different payment system. Up to this point, veterans were paid a fixed amount monthly when going to school. Under the New GI Bill, the VA pays the student’s tuition (at the resident rate) and certain fees directly to the school and the student receives a book stipend and a monthly housing allowance. More on how that works in a minute.

This expense is paid by the VA directly to the school and includes common fees applicable to all students. If attending a public school, 100 percent of the resident tuition is paid provided the veteran is at the 100 percent tier. If at the top tier and attending a private or foreign school, then the tuition and fees are capped at $23,671.94 per year, based on the 2018/2019 academic year. If the student is not at the top tier, then the amount paid by the VA is prorated down to the percentage tier matching the equivalent months of service. The table below better explains the relationship between months of service and tier percentage.

Note: Disabled veterans, whose disability is service-connected, are 100 percent tier qualified provided they have at least 30 days of continuous service. All other months of service relate directly to a tier percentage.

This payment too is paid directly to the student, but monthly instead of by semester. It, too, is also calculated using the tier percentage, along with the zip code of the school and paid at the rate of an E-5-with-dependents according to this BAH chart. Students going to school on either the East or West Coast get paid more per month than if going to an interior school like in South Dakota or Wyoming due to the difference in BAH rates which are driven in part by the cost of living.

A feature of the Post-9/11 GI Bill, it can be a great way to maximize benefits for some students. The students advantaged by the Yellow Ribbon Program are the ones that fall into a non-resident status for tuition purposes. Several years ago, the VA changed the rules schools must follow if they want to accept GI Bill students. If a veteran has been out of the military for less than three years, the school must accept him as a resident student and charge resident tuition rates regardless of the student’s resident status in that state. Typically, non-resident tuition rates are much higher than resident students. When a student has been out longer than three years and is not a resident in the state where the school is located, the VA tuition rate becomes an issue. Then they must pay the higher tuition rate, which is where the Yellow Ribbon Program comes into play as explained below. Keep in mind that the Post-9/11 GI Bill only pays up to the resident rate at public schools or up to $23,671.94 per year at private schools. But for schools having a Yellow Ribbon Agreement with the VA, up to 50 percent of the difference between what the VA initially pays and the school charges can be waived. Under the Agreement, the VA agrees to pay an equal amount, so in theory the entire unpaid balance could be waived. If the schools choose to waive less than 50 percent according to their Agreement, then of course the VA pays less, and the student could incur out-of-pocket costs. Use the Yellow Ribbon link above to check a school’s program to see:

The information on each school enrolled in the program will give students an idea of how difficult it could be to get into a particular school’s Yellow Ribbon Program.

This expense is paid by the VA directly to the school and includes common fees applicable to all students. If attending a public school, 100 percent of the resident tuition is paid provided the veteran is at the 100 percent tier. If at the top tier and attending a private or foreign school, then the tuition and fees are capped at $23,671.94 per year, based on the 2018/2019 academic year. If the student is not at the top tier, then the amount paid by the VA is prorated down to the percentage tier matching the equivalent months of service. The table below better explains the relationship between months of service and tier percentage.

Note: Disabled veterans, whose disability is service-connected, are 100 percent tier qualified provided they have at least 30 days of continuous service. All other months of service relate directly to a tier percentage.

This payment too is paid directly to the student, but monthly instead of by semester. It, too, is also calculated using the tier percentage, along with the zip code of the school and paid at the rate of an E-5-with-dependents according to this BAH chart. Students going to school on either the East or West Coast get paid more per month than if going to an interior school like in South Dakota or Wyoming due to the difference in BAH rates which are driven in part by the cost of living.

A feature of the Post-9/11 GI Bill, it can be a great way to maximize benefits for some students. The students advantaged by the Yellow Ribbon Program are the ones that fall into a non-resident status for tuition purposes. Several years ago, the VA changed the rules schools must follow if they want to accept GI Bill students. If a veteran has been out of the military for less than three years, the school must accept him as a resident student and charge resident tuition rates regardless of the student’s resident status in that state. Typically, non-resident tuition rates are much higher than resident students. When a student has been out longer than three years and is not a resident in the state where the school is located, the VA tuition rate becomes an issue. Then they must pay the higher tuition rate, which is where the Yellow Ribbon Program comes into play as explained below. Keep in mind that the Post-9/11 GI Bill only pays up to the resident rate at public schools or up to $23,671.94 per year at private schools. But for schools having a Yellow Ribbon Agreement with the VA, up to 50 percent of the difference between what the VA initially pays and the school charges can be waived. Under the Agreement, the VA agrees to pay an equal amount, so in theory the entire unpaid balance could be waived. If the schools choose to waive less than 50 percent according to their Agreement, then of course the VA pays less, and the student could incur out-of-pocket costs. Use the Yellow Ribbon link above to check a school’s program to see:

The information on each school enrolled in the program will give students an idea of how difficult it could be to get into a particular school’s Yellow Ribbon Program.