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GI Bill Comparison
In with the New and Out with the Old? Not Necessarily:
A Comparison of the Old Montgomery and New Post 9/11 G.I. Bills
by G.I. Ron Kness 
In 2011, the GI Bill got another face lift as GI Bill 2.0 was signed into law. GI Bill 2.0 makes the Post-9/11 GI Bill more like the Montgomery GI Bill, expanding the range of educational programs covered and streamlining the payment system. Yet differences remain. Here's a breakdown of the major differences between the two GI Bill programs.
| BENEFIT DETAILS | NEW GI BILL | OLD GI BILL |
|---|---|---|
| Eligibility Requirements |
Must have served after September 10, 2001, with a minimum of either 90 aggregate days of active-duty service or 30 continuous days for veterans who were discharged with a service-connected disability. No enrollment fee. To be eligible for full benefits, you must have served at least three years, but veterans with less time served may be eligible for a percentage of benefits. Length of service requirements and associated benefit percentages are as follows:
|
Minimum of a two-year service period after June 30, 1985 and a $1,200 program enrollment fee. |
|
Payment Rate for Tuition and Fees |
As of August 1, 2011, the VA pays 100% of in-state public school tuition and eligible fees directly to your school each term. If you are an out-of-state student, you are responsible for paying the difference between the resident and non-resident charges. Also effective August 1, 2011, the VA is capping tuition and fees at private schools nationwide at $17,500. Students attending schools in Arizona, Michigan, New Hampshire, New York, Pennsylvania, South Carolina and Texas who enrolled on or before January 4, 2011, were granted an exception to this cap provided they stay at the same school and finish before August 1, 2014. Students enrolling in a private school in those seven states after January 4, 2011, are subject to the $17,500 cap. |
The Old GI Bill pays a flat rate nationwide. Rates are adjusted annually, and payments are sent directly to veterans. With three years or more of service, the current payment is $1,426 per month ($1,473 effective October 1, 2011); with less than three years, the rate is $1,158 per month ($1,196 effective October 1, 2011). |
| Additional Expense Payments |
Under GI Bill 2.0, eligible students can receive stipends for both living expenses and books and supplies. Paid monthly directly to the student, the living expense stipend is based on the basic allowance for housing, or BAH, for an E-5 with dependents in the zip code where the college is located. Full-time students receive 100 percent of the housing allowance, while students enrolled less than full-time receive a prorated amount. The stipend is only available when classes are in session. Effective October 1, 2011, distance learners are eligible to receive up to $673.50 in a housing allowance. The new GI Bill also includes a stipend of $41.67 per credit, up to $1,000 per year, for students in degree-producing courses for books and supplies. Students in non-degree courses qualify for a stipend of up to $83 per month. As of October 1, 2011, active-duty personnel and their spouses or dependents using transferred Post-9/11 GI Bill benefits also qualify for the book stipend. This stipend is also paid directly to the student. |
Under the old program, a veteran does not receive any additional payments for these or any other expenses. |
| Benefit Expiration | The benefit period spans 15 years from your last period of active duty of at least 90 aggregate days or more. | The old bill benefit period spans 10 years after your last separation or discharge. |
| Transfering Benefits to Family |
Under the new GI Bill, eligible servicemembers can transfer up to 36 months of benefits to family members. Family members are defined as spouses and legally dependent children. To qualify for the transfer-of-benefits option, currently serving military members must have at least six years of service, of which a minimum of three must be after September 10, 2011, and agree to serve an additional four years. These two service requirements must be met before making a benefits transfer request. If you are within four years of being retirement eligible (20 years or more), the additional service requirement is prorated to a lesser amount. A spouse can start using transferred benefits immediately, while a son or daughter must wait until the servicemember has completed 10 years of service. While a spouse has up to 15 years to use transferred benefits, a dependent child must use his/her benefits between the age of 18 and 26. Unused benefits at age 26 are lost. A sponsoring servicemember may revoke or modify transferred benefits at any time, even after retiring. |
Although the Air Force and Army both briefly offered an MGIB transferability option in 2003 and 2006, respectively, the programs were eliminated due to low participation. |
| Enrollment Fee | New enrollees pay no fees. | For eligibility under the old bill, you had to pay a $100 per month for the first 12 months. |
| Education Programs Covered |
In addition to programs at accredited colleges and universities, effective October 1, the new GI Bill expands benefits to include vocational training and other non-college degree programs taught at non-degree producing schools, provided they are approved by the VA. Non-degree training includes:
|
The MGIB can be used for both degree and non-degree programs, including flight training, licensing and certification tests, online courses, and vocational training. Courses can be at both degree-granting and non-degree granting institutions, but schools must be approved by the VA for GI Bill use. Under both bills, only the certification test cost is covered, up to $2,000 per test; no other associated fees are covered. You can take the tests as many times as you need until you pass the test, however, each time you submit reimbursement for the certification test cost, it reduces your entitlement benefit. |
| Yellow Ribbon Program |
This is a new provision in the GI Bill. Under the Yellow Ribbon Program, participating institutions whose tuition or fees are above what the GI Bill pays agree to contribute up to half of the additional fees. The VA matches the school's contribution, leaving veterans with little or no out-of-pocket costs. Veterans must be at the 100% eligibility tier to be able to take advantage of the Yellow Ribbon Program. |
This program did not exist under the old bill. |
GI Bill 2.0 eliminates a lot of the original differences between the two GI Bills. Selecting the best GI Bill for you depends on your individual circumstances, including available benefits, location and program.
About the Author:
G.I. Ron retired from the military in 2006 with 36 years of service. His last assignment was a Division Command Sergeant Major/E-9.
