GI Bill Cheat Sheet

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Effective August 1, 2009, the Post-9/11 GI Bill is among the most comprehensive education benefit programs veterans and active-duty servicemembers have ever had. For some military personnel, the new GI Bill (Chapter 33) replaces the older Montgomery GI Bill (MGIB, Chapter 30) with a higher level of benefit pay-out. For others, the MGIB still serves their education goals a bit better, and they may elect to continue using the older benefit program. In all cases, veterans and servicemembers should weigh their options before deciding which VA GI Bill to use. While servicemembers can switch from the MGIB to the Post-9/11 GI Bill, once the switch is in place it cannot be reversed.

Am I Eligible for the Post-9/11 GI Bill?

To establish eligibility for the Post 9/11 GI Bill, one must receive an honorable discharge and meet one of the following two conditions:

• Serve at least 90 days on active duty, on or after September 11, 2001 or
• Serve at least 30 days on active duty after the same date, and be released with a service-connected disability

The Post-9/11 GI Bill: New Features, Better Benefits

For those who meet the eligibility requirements, the Post-9/11 GI Bill benefits include 36 months of education benefits. With the new GI Bill, the percentage the VA pays varies with the amount of active duty time the servicemember has after September 10, 2001; the minimum of 90 days gets the veteran 40 percent of his or her education expenses paid by the VA. Thirty-six months or more of active duty service gets servicemembers to the 100 percent level. Service time in between 90 days and 36 months equates to a benefits percentage between 40 and 100 percent.

Those who use GI Bill benefits after separating from active duty get:

• Tuition and fees paid by the VA directly to his or her school, up to a predetermined amount (the maximum benefit amount equates to the highest public school tuition in the veteran's state)
• A monthly housing allowance based on the school's zip code, paid at the E-5 with dependents rate
• A book stipend of up to $1,000 per academic year

For those who are on active duty, Post-9/11 GI Bill benefits differ slightly. Individuals can use GI Bill benefits to pay tuition and fees not covered by his or her Tuition Assistance. However, active duty servicemembers don't get the housing allowance and book stipend.

The New GI Bill pays for degree programs, starting with associate's degrees up through advanced degrees that are completed at "institutions of higher learning." If one plans on taking courses in a non-degree program, the MGIB is generally a better choice.

An additional key feature of the new GI Bill is the GI Bill transfer provision. This new option allows servicemembers to transfer their GI Bill benefits to eligible family members. The transfer election must be made while on active duty, but once complete, the family member will be eligible for all Post-9/11 benefits that are available to the servicemember.

The Yellow Ribbon Program

Another new feature in the latest version of the GI Bill is the Yellow Ribbon Program. This is a generous feature if one:

• Attends a private school
• Is in a graduate studies program
• Pays out-of-state tuition

Yellow Ribbon schools have an agreement with the VA to pay up to 50 percent of what the VA does not cover in tuition and fees. The VA agrees to then match the amount paid by the school, leaving the servicemember with reduced out-of-pocket costs. Yellow Ribbon schools offer a wide array of both undergraduate and graduate degree programs as well as online education.

The Post-9/11 GI Bill offers veterans and servicemembers a means to an end for reaching their educational goals. One's service to his country qualifies him for some of the best education benefits available. Taking advantage of these benefits, including the GI Bill, and completing an education is one of the best investments a servicemember can make in his future.