Exceptions in MHA: If you are an active duty trainee or a transferee spouse of a veteran, Post-9/11 doesn’t pay for it.

One of the confusing things about the BAH payment schedule is knowing when your GI Bill BAH gets deposited.  This happens between your school and the VA- make sure that your school's certifying official has all the documents they need to make sure it does not get delayed.

Are Books & Supplies Paid For?

Under the Post-9/11 GI Bill, it pays an allowance of up to $1,000 per year for books and supplies that are given directly to you at the beginning of the term.

If you are not full-time, then be aware this will be paid proportionally to your enrollment status.

Understanding Post-9/11 GI Bill for Graduate School

Post-9/11 GI Bill is the most common program that provides education benefits to veterans and their dependents. You are qualified if you have served on active duty for 90 days or more after September 2011. It has 36 months of entitlement, which can be used in your lifetime.

Many think that if they served at least 90 days of service after September 2011, they are already entitled to 100% education benefits.

However:

The percentage of benefits depends on the length of your service. The shorter your service is, the lower the percentage you receive.

With the changes brought in through the Forever GI Bill, you can now use your 36-month entitlement anytime you’d like in your lifetime.

Under the old program, you only had 15 years to utilize it. Thankfully, this is no longer the case.

Here’s an overview of how much percentage you are going to receive under the Post-9/11 if you are one of those veterans who served after September 2011:

Using The Montgomery GI Bill-Active Duty (MGIB-AD) For Grad School

This is a program that pays education expenses to Service members who want to pursue higher education. Learn more about the Montgomery GI Bill rates here.

Montgomery GI Bill Eligibility

All these facts below must be true to be eligible:

• You contributed $100 each month during your first 12 months in service.
• You have completed at least two years of active duty in service.
• You have a high school diploma, GED or 12 hours credit in college.
• You started active duty for the first time after June 30, 1985.

For more details on the categories of eligibility, click here.

Montgomery GI Bill-Selected Reserve (MGIB-SR)

It is another program under the Montgomery Bill that gives education benefits to personnel who enlisted as reserves to any unit of the Selected Reserves. It covers up to $11,000 throughout your 36-month entitlement. See current rates here.

Eligibility

To be eligible, one of the following must be true:

• You have at least completed 6 year-service in the selected Reserve.
• You are an officer and agreed to add 6 years more in addition to your previous service obligation. Your obligation should have started after June 30, 1985, or after September 30, 1990, for some other types of training.

Additional qualifications are as follows:

• You must have completed your initial active duty for training (IADT).
• You must have a high school diploma or an equivalent like GED, before finishing IADT.
• Have a good standing while serving in an active Selected Reserve unit. You are still eligible if you were discharged because of a disability not caused by misconduct.

Post-9/11 GI Bill vs Montgomery GI Bill for Grad School

Post-9/11 is the most common GI Bill that members use due to its promising benefits. With its no-limit entitlement which is a part of the Forever GI Bill which already took effect, compared to the 10-yr limit of the Montgomery GI-Bill (MGIB-AD), one would choose the Post 9/11. 

But then again, the Montgomery GI Bill has also its advantages.

Look at the table below to see more differences between these two bills to help you decide which one suits you better.

$600 Buy-Up Program

Under the Montgomery GI Bill-Active Duty (MGIB-AD), members can contribute an additional $600 (on top of your $1,200 contribution on your first year as active duty) to receive an increased monthly benefit.

It must be made while active on duty, so you can receive another $4,500 in addition to your GI Bill benefits.

Click here for the rates under this program.

GI Bill vs Tuition Assistance for Grad School

There are a few differences between the GI Bill (Post-9/11) and Tuition Assistance (TA):

One significant distinction is that the first is education assistance provided by the VA to veterans, and the latter is for Reserve and those on active duty, and is provided by their respective service branch: Army, Navy, Coast Guard, Marines, Air Force, and National Guard. 

You should be on active duty throughout your studies to reap the benefit of Tuition Assistance (TA), and there are some payback periods which could apply.

Below is a simplified table to see the differences between the GI Bill and Tuition Assistance:

Tuition Assistance TOP-UP

This is financial assistance on top of the Tuition Assistance for active-duty personnel. It pays the difference that the TA doesn't. 

You are qualified to use this benefit if you are eligible to receive the Montgomery GI Bill-Active Duty (MGIB-AD) or the Post-9/11 and are using tuition assistance. 

It is limited to 36 months entitlement only and pays the exact amount of your tuition fee. For more details about this program, click here.

GI Bill or Yellow Ribbon Program for Grad Degree?

The Yellow Ribbon Program is an add-on to the GI Bill, usually, the Post-9/11, if you opt to go to a private school. 

For public institutions, the GI Bill is enough to cover 100% of tuition costs; you don't need the Yellow Ribbon Program

There are times when you don't need to spend any money out of pocket for a private school with the Yellow Ribbon assistance.

But often, some out of pocket cost will be required. It depends on the school. 

Currently, the Post-9/11 GI Bill pays up to $23,671.94 for an academic year at a private university. 

Yellow Ribbon Program Example:

Your private school charges you $60,000 a year for your tuition, this is where the Yellow Ribbon Program helps. 

If your school covers $15,000 with its agreement with the Yellow Ribbon Program, the VA matches the amount. 

So, you get $30,000 from this benefit along with your GI Bill assistance. As a result, you only pay less than $7,000 out of your pocket.

Make sure that your choice of the school participates with the Yellow Ribbon Assistance. Click here to see participating schools.

How to Use the GI Bill and Yellow Ribbon Program at the Same Time

The Yellow Ribbon Program is most useful when trying to use the GI Bill to go to a Private University, and the GI Bill won’t cover the whole amount. 

To be able to use the GI Bill and the Yellow Ribbon Program at the same time, you must be eligible for the maximum benefit rate of the GI Bill. 

Once you are, you can use the Yellow Ribbon Program to help pay the remaining amount, and minimize the amount you have to pay out of pocket.

To qualify for Maximum Benefit Rate for the Post 9/11 GI Bill, one of the following must be true:

• You served for 36 months on active duty, either continuous or with breaks.
• You received a Purple Heart on or before September 11, 2001, and were honorably discharged after any amount of service.
• You received a Fry Scholarship on or before August 1, 2018.
• You served for at least 60 days continuously, without a break, on or before September 11, 2001, and were honorably discharged because of a disability caused by your service.
• You are a dependent child of a veteran or a service member, who has served for at least 36 months on active duty and transferred his/her benefits to you. The member should qualify for the maximum benefits. Find out how to transfer Post-9/11 benefits here.
• You are receiving the Fry Scholarship since August 1, 2018.

Your school must also meet these requirements:

• Offers the Yellow Ribbon Program.
• Your school has not given Yellow Ribbon assistance to more than the maximum number of students in their agreement with the Veterans Affairs.
• Your school certified your enrollment and submitted your Yellow Ribbon information to the VA.

To Get GI Bill Benefits with the Yellow Ribbon Program, Follow These Steps:

1. Apply for Post-9/11 online, by mail, or in-person in a regional processing office, or with a trained professional's assistance. Click here to do one of these. You will receive a Certificate of Eligibility (COE) if you qualify for the benefits.
2. Bring your COE to your school. Usually to a certifying official, financial aid, military liaison, or any appropriate office. Ask for assistance about the Yellow Ribbon application.
3. Wait for your school’s decision. If it will be granted, you will also be informed about how much assistance you will receive.

Find VA-certified schools in your area by clicking here.

Is Using the GI Bill for Graduate School Different than Undergraduate?

The GI Bill can fund both graduate and undergraduate degrees. 

In the case of undergraduate studies, VA allows you to have more than one degree as long as you still have remaining entitlement.

So if you already have a degree in business, you can have another in a different field. 

It also covers your tuition at another school, while paying for your current school. This is possible as long as your school guarantees that you need the classes at the second school to attain your degree. 

Note that the GI Bill won't pay for the same class twice unless you failed it, and need to take it again in order to graduate.

For both graduate and undergraduate, the school decides what is considered full-time. 

For grad school, if your school says 2 hours is full time, then the VA pays full time for it.

(The school is the authority on what is considered "full time").

In most cases for undergrad, 12 hours or more is considered full time. So the VA pays for full time.

For 9 to 11 hours, it’s considered ¾ time; 6-8 hours is half time; and for less than six hours, the GI Bill pays at a rate that doesn’t exceed the exact tuition and fees for the course.

The VA pays directly to your school for both graduate and undergrad, while books and supplies financial assistance will be given to you directly at the beginning of the term, as well as your housing allowance every end of each month.

Applying for benefits has the same process, too.

How to Use the GI Bill For a Private or Foreign School

Although private and foreign schools participate in the GI Bill, there's no guarantee that your full tuition and fees are covered, like in-state and public universities. 

So before enrolling, make sure your school also participates in the Yellow Ribbon Program, which waives a portion of the difference that your GI Bill cannot pay. 

The Housing allowance is still based on BAH rates, and book stipend is the same as in public schools. There is an increase in the Monthly Housing Allowance (MHA) if BAH increases every January each year.

To apply, you still need to follow the standard steps. After receiving your Certificate of Eligibility (COE), bring it to your school’s certifying office.

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What is the Forever GI Bill?

Also known as Harry W. Colmery Veterans Educational Assistance Act, the Forever GI Bill is expanded financial assistance that brings changes to the educational benefits of veterans, their survivors, beneficiaries and dependents. Most notably, it removes the 15 year timeline to use your GI Bill. You can now use it anytime in your lifetime.

Here are some of the enhanced benefits brought forth with the Forever GI Bill:

Impact of Using the GI Bill While on Active Duty vs. As a Veteran

There are many benefits that the GI Bill provides for all eligible recipients, such as paying for tuition costs in pursuing higher education or training, paying for licensing and certification tests, and providing an allowance for housing as well as a stipend for books and supplies.

However, what benefits you are eligible to use depends on whether you are on active duty or a veteran: 

Since the GI Bill is designed primarily to aid veterans in transitioning to civilian life by providing educational assistance so they can open career opportunities, it goes to say that there are certain limitations for active duty service members who want to use the GI Bill benefits they have earned.

This is also in part due to the fact that there are programs specifically designed for active duty service members who want to study while serving the country, such as the Tuition Assistance, which is implemented by the Department of Defense through its individual branches.

Here are some limitations of using your GI Bill benefits while on active duty:

Fewer GI Bill Benefits While Active Duty

If you are an active duty service member who is eligible to receive benefits under the Post 9/11 GI Bill, you cannot claim a monthly housing allowance and a books and supplies stipend if you use your benefits while on active duty. 

For all other GI Bill programs (such as the Montgomery), however, these benefits are not provided whether you are on active duty or a veteran.

Higher Entitlement Charges

Furthermore, GI Bill recipients using their benefits while on active duty are automatically charged the full monthly rate of tuition costs on their entitlement benefits, regardless of the actual cost of their education.

For example, if you are receiving benefits from the Montgomery GI Bill, the current maximum payable amount for tuition and fees is $1,994 per month.

Let’s say you are at 100% eligibility percentage (which means if your tuition amounts to $1,994 monthly, you can receive this full amount).

Since this dollar amount is a monthly rate, it is directly equivalent to 1 month of entitlement benefit.

If you are a veteran, this means that you use up 1 month out of the maximum of 36 months of benefits you can have, for every $1,994 the VA spends on your tuition.

So if your tuition is only half, you only get charged 15 days of entitlement.

This is not the case when you are using your GI Bill benefits while on active duty. If you study for say, 6 months, you get charged 6 months of entitlement benefits, regardless whether your tuition is lower than the $1,994 full monthly rate.

When Does It Make Sense to Use my GI Bill While Active Duty?

Given these circumstances, you are probably wondering if you should even think about using your GI Bill benefits while you are still on active duty. 

Well, here’s when it might make sense to use it:

Scenario 1: You Are Separating From The Military Soon:

Like I previously stated, I used my GI Bill the last two years of active duty.  Many veterans want to hit the ground running when they get out of the military and have a job already lined up. For this reason, I spent my last two years of active-duty going to night and weekend classes so that I had my MBA the day that I separated. 

This way I didn't have to spend my first two (critical) years as a civilian going to school, and I was ready to start my career as soon as I separated.

If this is you, then It might make sense for you to use your GI Bill benefits while active duty.

What if you're separating via a medical discharge and want to use the GI Bill? In this case, you might want to wait.

A word of caution:

You need to make sure that your commander signs off on your game plan to go to school while active duty. This will depend on your commander, your deployment schedule, and your job in the military. 

Get “buy-in” first, before you put the plan in motion.  The last thing you want is to be pulled into another surprise deployment while in the middle of a school term!

Scenario 2: Tuition Assistance Won’t Cover Your Desired Program:

Many military members are trying to weigh tuition assistance versus the GI Bill. Let's be honest, if you want to go to a premium University, tuition assistance will probably not cover all the costs. If this is the case then you need to consider using the GI Bill while active duty.

I would only do this if you are not willing to (or can’t) wait until separation to get your degree/training done. 

You might consider using your GI Bill benefits while you are still in the military if the tuition costs for the school or training facility you want to attend are equivalent to or higher than the maximum payable amount set by the VA ($24,476.79 annually for Post 9/11 GI Bill, or $1,994 for the Montgomery GI Bill- Active Duty).

This way, you are making the most of using up your entitlement charges. 

You can check the current payment rates for all GI Bill programs on the VA Rate Tables.

Remember :

You lose out on your monthly housing allowance (MHA), also referred to as BAH, if you use your GI Bill while active duty, for obvious reasons: you are already getting BAH.

Also, if you are under a GI Bill program other than the Post 9/11 GI Bill, you won’t be missing out on housing allowances and books stipends. Though you might want to consider transferring to the Post 9/11 GI Bill. Find out more information about that here.

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If you want to push through with using your GI Bill benefits while on active duty, do consult with your Education Services Officer on how to proceed. They will provide counseling and assistance to make sure that you are making the most of your benefits.

Meanwhile, here are the eligibility requirements for the Post 9/11 GI Bill and the Montgomery GI Bill:

Post 9/11 GI Bill Eligibility

You can receive educational benefits from the Post 9/11 GI Bill if you have served for at least 90 days on or after September 10, 2001.

Your eligibility percentage goes higher with the duration of your active duty service. You can refer to the table below as a guide:

Information sourced from the VA website

Montgomery GI Bill Eligibility

You are eligible to receive benefits under the Montgomery GI Bill if you meet the following requirements:

• You have a high school diploma, a GED, or 12 hours of college credit, 

• You have been contributing $100 per month for your first 12 months of active duty service, and

• You meet the other qualifying requirements set per eligibility category as listed here

If you are eligible, you can start using your benefits after you have served for at least 2 years in active duty.

Another smart option we haven’t addressed yet:

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Using the GI Bill for Online School While Active Duty

Online schools allow for a lot of flexibility in terms of study hours and living situations. It’s perfect for military service members who have to attend to their military duties such as training, or for those who are TDY or deployed to different locations in and out of the country.

If you want to use your GI Bill benefits while studying at an online school, the VA will pay for your tuition costs under the same rates as when you are attending a physical institution.

If you are under the Post 9/11 GI Bill, you are still also qualified to receive a monthly housing allowance and a books and supplies stipend (this is not included if still active duty). 

However, the housing allowance is only applicable if you are at least a 50% rate of pursuit.

Also, if you are taking all your classes online, you are only eligible to receive half of the national average, which is currently at $1,789, meaning, you can get $894.50. 

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One loophole to this:

If you attend at least one class at a physical school. Then, you can get the full rate (provided you meet other qualifications such as 100% rate of pursuit). The only problem is, this might be difficult if you have to be deployed in the middle of the semester.

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Whether you are an active duty service member or an honored veteran, the GI Bill is there to assist you in pursuing your education.

Discover 29,000+ more opportunities to take advantage of your GI Bill benefits by going to milversity.com/explore

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While using your benefits for in-state tuition has a time limit of 3 years after your discharge, there are a lot of other ways you can take advantage of your GI Bill entitlement.

With the Harry W. Colmery Veterans Educational Assistance Act of 2017, also called the Forever GI Bill, there is no longer a 15-year limit to using your Post 9/11 GI Bill entitlement benefits. 

This way, you can take the time to evaluate the best options for you in pursuing higher education and advancing your career after your military service.

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If you want to find out more about the GI Bill and the accredited schools where you can use it, you may explore which colleges and universities that accept the GI Bill here: https://milversity.com/explore/

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