Choose Your GI Bill School Wisely: A Case Study

When it comes to choosing a GI Bill school, veterans should do their homework. In addition to tuition, the BAH rate for a school's zip code can significantly factor in to the total benefits amount the veteran receives.

A GI Bill Rate Case Study

Let’s assume a servicemember qualifies at the full GI rate and plans to carry 12 credits per term at the most expensive public schools in either South Dakota or Texas. Should this veteran be eligible for both the Post 9-11 and Montgomery GI Bills, he’ll receive quite different amounts depending on the state and version of the GI Bill he elects to use:

MGIB Benefits

South Dakota

• GI Bill Benefits: $5,472.00 per term (4 months @ 1,368.00 per month)
• Tuition: $1,120.80
• Net Benefits: $4,351.20

Texas

• GI Bill Benefits: $5,472.00 per term (4 months @ 1,368.00 per month)
• Tuition: $17,652.00
• Net Benefits: -$12,180.00

Post-9/11GI Bill Benefits

South Dakota

• GI Bill Benefits: $1,120.80
• Book Stipend: $500.00
• BAH: $3,992.00 (4 months in Spearfish, S.D. @ $998 per month)
• Tuition: $1,120.80
• Net Benefits: $4,492.00

Texas

• GI Bill Benefits: $17,652
• Book Stipend: $500
• BAH: $6,120 (4 months in Houston, TX @ $1,530 per month)
• Tuition: $17,652
• Net Benefits: $6,620

If the veteran goes to school in South Dakota, the net amount he’ll receive to cover school expenses is close to the same regardless of which GI Bill he chooses. However, in Texas, the situation is quite different. The Post-9/11 GI Bill would pay him $6,620, where the MGIB would cost him $12,180.

The phrase location, location, location not only applies to real estate investments—it can mean a significant difference in GI Bill benefits as well. The bottom line is that servicemembers would be well served to do their homework and choose a GI Bill school wisely.

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