Absolutely! There is no stipulation in the Montgomery GI Bill that prevents you from collecting benefits from it even though your tuition is being covered by a program from another source, as long as the source isn’t another form of federal student aid or Veterans Affairs educational benefits.
Many states have programs that pay for partial or even full tuition for veterans to get a degree. It is completely within the limits of the Montgomery GI Bill to use the GI Bill funds to cover other expenses, which can include not just books and fees, but also food, housing, medical, and anything else that comes up while you are going to school.
It’s worth noting that this is one way that the Montgomery GI Bill is often preferable to the new Post 9/11 GI Bill. You can’t use the new GI Bill to cover tuition when your tuition is already paid by another source, simply because the new GI Bill pays for your tuition, directly to the school.
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