Which GI Bill Is Better: Post-9/11 or Montgomery?

The GI Bill offers educational benefits to service members, veterans, and their families, aiding in the pursuit of higher education or vocational training. This article clarifies the distinctions between the primary GI Bill programs, helping individuals determine which program best suits their educational and financial needs. The comparison focuses on eligibility, entitlement, and benefit components.

Understanding the Primary GI Bill Programs

The GI Bill encompasses programs designed to support the educational endeavors of those who have served. Among the most prominent are the Post-9/11 GI Bill (Chapter 33) and the Montgomery GI Bill, which includes the Active Duty program (MGIB-AD or Chapter 30) and the Selected Reserve program (MGIB-SR or Chapter 1606).

The Post-9/11 GI Bill, enacted in 2008, provides comprehensive educational benefits for individuals who served on active duty after September 10, 2001. This program provides substantial financial assistance for tuition, housing, and other educational expenses.

The Montgomery GI Bill programs predate the Post-9/11 GI Bill. The MGIB-Active Duty (Chapter 30) supports individuals who entered active duty after June 30, 1985, and contributed to the program. The MGIB-Selected Reserve (Chapter 1606) is for members of the Reserve and National Guard who commit to a six-year service obligation. These programs typically provide a monthly stipend to the beneficiary to cover educational costs.

Eligibility and Entitlement

Eligibility for GI Bill benefits varies across programs, dependent on service dates, length of service, and discharge status. For the Post-9/11 GI Bill (Chapter 33), individuals generally qualify if they served at least 90 days on active duty after September 10, 2001, or were discharged with a service-connected disability after 30 continuous days of service post-9/11. Full benefits, meaning 100% of the maximum allowable amount, typically require at least 36 months of aggregate active duty service after September 10, 2001.

The Montgomery GI Bill-Active Duty (MGIB-AD or Chapter 30) generally requires service members to have entered active duty after June 30, 1985, and typically involves a two to three-year active duty commitment. Beneficiaries usually contribute $100 per month for the first 12 months of service to qualify. An honorable discharge and a high school diploma or equivalency certificate are also common requirements.

For the Montgomery GI Bill-Selected Reserve (MGIB-SR or Chapter 1606), eligibility extends to members of the Army, Navy, Air Force, Marine Corps, or Coast Guard Reserve, and the Army or Air National Guard. To qualify, individuals must incur a six-year obligation to serve in the Selected Reserve, often with an enlistment after June 30, 1985. They must also complete initial active duty for training and remain in good standing with their unit.

Entitlement, representing the total months of benefits available, is generally limited to 36 months for most GI Bill programs. However, under certain conditions, such as eligibility for both Post-9/11 GI Bill and MGIB-AD, individuals may qualify for up to 48 months of combined benefits.

The ability to transfer benefits to dependents, such as a spouse or children, is primarily associated with the Post-9/11 GI Bill. Service members must typically have served at least six years and agree to serve an additional four years to transfer benefits, and the dependent must be enrolled in the Defense Enrollment Eligibility Reporting System (DEERS). The Marine Gunnery Sergeant John David Fry Scholarship, an extension of the Post-9/11 GI Bill, provides benefits to children and surviving spouses of service members who died in the line of duty after September 10, 2001.

Key Benefit Components Compared

Financial support provided by GI Bill programs differs substantially, particularly in how funds are disbursed and what expenses they cover.

Tuition and Fees

The Post-9/11 GI Bill offers comprehensive coverage for tuition and fees, with payments made directly to the educational institution. For those attending public schools as in-state residents, the Post-9/11 GI Bill can cover the full cost of tuition and fees, provided the individual qualifies for the maximum benefit. For private or foreign schools, the Department of Veterans Affairs caps the maximum tuition and fee reimbursement, updated annually. The Yellow Ribbon Program, a provision of the Post-9/11 GI Bill, can supplement this by helping to cover tuition and fees that exceed the national maximum at private institutions or out-of-state public tuition. Participation in the Yellow Ribbon Program is voluntary for schools, and the amount of additional funding varies by institution.

The Montgomery GI Bill-Active Duty (MGIB-AD) and Montgomery GI Bill-Selected Reserve (MGIB-SR) do not pay tuition directly to the school. Instead, these programs provide a fixed monthly stipend directly to the student. The amount of this monthly stipend is predetermined and depends on factors such as enrollment status and the specific program.

Monthly Housing Allowance (MHA)

The Post-9/11 GI Bill includes a Monthly Housing Allowance (MHA). The MHA is based on the Basic Allowance for Housing (BAH) for an E-5 with dependents at the zip code of the main campus where the student attends the majority of their classes. However, students on active duty, those taking courses less than half-time, or those enrolled in entirely online programs generally do not receive the MHA or receive a reduced rate.

For beneficiaries of the Montgomery GI Bill programs (MGIB-AD and MGIB-SR), there is no separate housing allowance. Any funds for housing are included within the overall monthly stipend paid directly to the student.

Books and Supplies Stipend

The Post-9/11 GI Bill provides an annual stipend for books and supplies, capped at a specific amount per academic year. This stipend is paid directly to the student, typically at the beginning of each term.

The Montgomery GI Bill programs (MGIB-AD and MGIB-SR) do not offer a separate books and supplies stipend. Funds for books and supplies are expected to be covered by the monthly stipend received by the student.

Other Benefits

Both GI Bill frameworks offer additional benefits. The Post-9/11 GI Bill covers tutorial assistance and reimbursement for national exams, licensing, and certification tests. It also provides a rural relocation benefit in certain circumstances.

The Montgomery GI Bill programs also offer reimbursement for licensing and certification tests, as well as tutorial assistance. Additionally, MGIB-AD allows for a “buy-up” program where service members can contribute extra funds to increase their monthly stipend. Both Montgomery programs can be used for a wide range of educational pursuits, including vocational training, apprenticeships, and on-the-job training.

Making an Informed Decision

Choosing between GI Bill programs requires careful consideration of individual circumstances and educational aspirations. There is no single “better” option, as the optimal choice depends on personal and financial factors.

The type of educational institution plays a role. If attending a public school in-state, the Post-9/11 GI Bill may cover full tuition and fees, which can be a significant advantage. For private institutions or out-of-state public schools, the Yellow Ribbon Program’s availability and the school’s specific contribution become important considerations. If the chosen school does not participate in Yellow Ribbon or offers minimal contributions, the Post-9/11 GI Bill’s tuition cap might leave a substantial out-of-pocket expense.

A student’s enrollment status also impacts benefits. Full-time students typically receive the maximum allowable benefits under both programs. The Post-9/11 GI Bill’s Monthly Housing Allowance is calculated based on the cost of living at the school’s location, which can be a substantial benefit, especially in areas with high housing costs. For students enrolled less than half-time or those taking only online courses, the MHA may be reduced or not provided under the Post-9/11 GI Bill.

Considering other financial aid or scholarships is also prudent. Some scholarships might reduce the amount of Post-9/11 GI Bill benefits received, as the VA coordinates with other aid to prevent overpayment. The Montgomery GI Bill’s direct monthly stipend provides more flexibility, as it is not directly tied to tuition costs or other aid. The cost of living in the area where the student plans to attend school can significantly influence the actual value of the housing allowance or monthly stipend.