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

With the GI Bill, you don’t have to worry about tuition costs that are getting ridiculously steep these days.  

You can even receive a housing allowance, as well as a stipend for books and supplies! Want to know how? Keep reading!

Who Can Use the GI Bill for Online Based Education?

• Post 9/11 GI Bill (and the Fry Scholarship)
• Montgomery GI Bill- Active Duty and Selected Reserve
• Reserve Educational Assistance Program
• Survivors and Dependents’ Educational Assistance Program

As long as you (or your dependents) qualify for any of the above mentioned programs, you can definitely use the GI Bill to take online classes.

If you are a veteran, then most commonly, you are receiving benefits under the Post 9/11 GI Bill or the Montgomery GI Bill. Typically, service members that went active duty towards the end of 2009 are under the Post 9/11 GI Bill, which is the newer program. 

Post 9/11 GI Bill vs Montgomery GI Bill For Online Classes

You might be asking this question if you are still under the Montgomery GI Bill, and thinking of shifting to the Post 9/11 one. Before you make your decision, here are the factors that you need to consider:

Pros of shifting to the Post 9/11 GI Bill

• The maximum reimbursable payment for tuition and fees under the Post 9/11 GI Bill is higher, which is capped at $24,476.79 per year, as compared to $23,928 (based on the monthly cap at $1,994) of the Montgomery GI Bill
• You will receive a monthly housing allowance, and yearly books and supplies stipend. On the Montgomery GI Bill, you do not get this.

Cons of shifting to the Post 9/11 GI Bill

• If you used the Montgomery GI Bill’s Buy Up Program, you cannot refund it, nor transfer it to the Post 9/11 GI Bill

Sounds a bit unfair, doesn’t it? But we have good news for you!

Combining the Post 9/11 and Montgomery GI Bill Benefits

If you want to maximize your money first by using up all your Montgomery GI Bill benefits, and then transfer to the new Post 9/11 GI Bill, you can definitely do so!

You are able to use up to 12 months of Post 9/11 benefits after using up the allotted 36 months under the Montgomery GI Bill.

But first, make sure that you are qualified for the Post 9/11 GI Bill.

Am I qualified for the Post 9/11 GI Bill?

Here are the qualifications set by the VA for receiving benefits under the Post 9/11 GI Bill:

• Honorable discharge after at least 90 days of active duty service after September 10, 2001, or
• Discharge due to a service related disability after at least 30 days of active duty service after September 10, 2001, or
• A member of the National Guard

GI Bill Payment Rates For Online Classes

The reimbursable payment amounts for taking online classes are the same as when you study at a physical institution, whether you are taking a degree program or a vocational course. The difference lies in:

• Whether you are under the Post 9/11 GI Bill or the Montgomery GI Bill
• The amount of time you have served on active duty
• Whether you are studying full time or part time

Attending a Public vs Private School

Another factor to consider in determining how much benefits you can receive is on whether you are studying at a public or private school. For public schools, the VA pays the full in-state tuition costs of your education. So if your eligibility percentage is at 100% and you are studying full time, then your tuition will be completely free!

On the other hand, there is a set maximum payable amount for private schools, which varies depending on your GI Bill program. Because of this, you have to take into account if the school you want to attend is expensive (this is also affected by the registered location of your school).

You can check out the payment rates for the Post 9/11 GI Bill and the Montgomery GI Bill below.

Online Education Payment Rates- Post 9/11 GI Bill

• Degree and Non-Degree Programs:

1. Public School- full in-state tuition costs
2. Private School- annual maximum of $24,476.79

This also applies for second degrees and postgraduate degrees.

• Vocational- annual maximum of $13,986.72

You can look at CURRENT RATES published on the VA website here. 

How much you are eligible for also depends on the amount of time you have served on active duty. Find out how much you qualify for:

Chart drawn from VA.gov website here:

Moreover, how much you receive also depends on whether you are studying full time or part time.

Online Education Payment Rates- Montgomery GI Bill

1. Active Duty

• 3 years or more of completed enlistment: $1,994 monthly rate

• Less than 3 years of completed enlistment: $1,619 monthly rate

2. Selected Reserve: $384 monthly rate

You can look at CURRENT RATES published on the VA website here. 

The amount you may reimburse also depends on your training time, and is calculated as follows:

Do Online Classes Count As Full Time? Determining Credit Hours:

Your GI Bill payment rates depend on your rate of pursuit (how much of a course load you are taking).

You must be wondering how many credit hours are considered full time when taking online classes.

The thing is, the requirements are no different than if you were at a physical university. The GI Bill Full Time rate is at 12+ credit hours. 12 units usually counts as full time for undergraduate degree programs. More often than not, this might also be the case for when you are studying through an online program.

But if not, your school prescribes how many hours they consider as a full time load, and the VA pays you following this rate. 

For accelerated classes and short term programs, the rates are prorated based on the regular term full time rate as well.

If you'd like to take advantage of the GI Bill on a part-time basis, that is also possible (and a common solution for active-duty members). 

How Much Monthly Housing Allowance (MHA) / BAH Do I Get When Taking Online Classes

As we mentioned earlier, benefit recipients of the Post 9/11 GI Bill are also entitled to receive a monthly housing allowance (otherwise called as BAH) and a yearly books and supplies stipend.

The housing allowance that the Post 9/11 GI Bill provides for fully online courses is 50% the rate of the national average. The current rate, calculated off the national average, for exclusively online education is $895.50.

You can stay updated on current rates here: 

A great loophole for this is if you are take at least one class at a physical classroom. Then, you are eligible to get the full monthly housing allowance!

You can check the actual rates you will receive by clicking this link.

*It is important to note that the GI Bill only provides a housing allowance if you are enrolled in at least a 50% rate of pursuit.

As you can see, the GI Bill has many options to help you with pursuing your online education. But, what if the rate you qualify for is not enough to pay for all your tuition costs?

Fret not- the VA has another solution for you!

What can I do if I have excess tuition that is not covered by the GI Bill?

Say hello to the Yellow Ribbon program. It’s a great additional benefit offered to veterans pursuing higher education such as an undergraduate or a masters degree.

This is a voluntary program that schools can opt to participate in. If you qualify under this program, it comes at absolutely no additional charges to your benefits entitlement.

You can check the list of participating schools as well as the qualifying requirements here.

How Can I Start Receiving the GI Bill for Online Classes?

The process for applying for this benefit is easy, whether you apply online, by mail, or in person. Just follow these simple steps:

1. Online

Go to the VA website and log on to your account. Access the VA Form 22-1990 and fill up all the required information. Once you hit submit, it will take around 30 days for your application to be processed.

2. By mail

Call the VA hotline at 1-888-GI-BILL-1 (888-442-4551) anytime from Monday to Friday, 8am to 7pm, to request a copy of the application form to be mailed to you. Once you have received and filled up the form, mail it to the nearest VA regional processing office. You can visit this link for a list of offices in your location.

3. In person

Go to the nearest VA regional processing office and approach an accredited representative to assist you in filing your application. See the list of offices here.

That’s it! Taking advantage of your GI Bill benefits for an online education is easy. You can use it for thousands of different opportunities so that you can broaden your horizons and advance your career after your time in the military. 

Find out all the things you can use your GI Bill benefits for by checking out this link: http://milversity.com/explore