Does GI Bill 2.0 Spell the End of the MGIB?

For nearly 60 years, the U.S. government has been helping to pay for the education of men and women from branches throughout the Armed Forces. The first program was born in 1944 as the Servicemen's Readjustment Act, commonly known as the GI Bill of Rights. Subsequent GI Bills have provided education benefits as one way for the country to thank those who risk everything in the nation's service.

Throughout the years, the GI Bill has undergone amendments and name changes, most notably in 1984 when the Montgomery GI Bill came into being. Twenty-five years later, the Post-9/11 GI Bill was created to meet the challenges of educating the modern armed forces, but it did not replace the Montgomery GI Bill, and many still chose to use the older program. But in 2011, the Post-9/11 GI Bill has seen major changes. The reboot of the program--dubbed GI Bill 2.0 by some--offers expanded career training opportunities, which has some wondering if the storied Montgomery GI Bill is on its last legs.

Changes to the Post-9/11 GI Bill

After the terrorist attacks on Sept. 11, 2001, military personnel were thrust into overseas conflicts--first in Afghanistan and then in Iraq. The Montgomery GI Bill had been enacted during a time of peace, and required two years of continuous enlistment before eligibility for educational benefits. In addition, servicemembers had to pay $100 a month for 12 months to enroll in the program.

Recognizing that military service required considerable sacrifice in the post-9/11 world, Congress authorized a new GI Bill in 2009 that made individuals eligible for partial benefits after just 90 days of active service. However, money from the Post-9/11 GI Bill was limited to programs (both degree and non-degree) offered by institutions that granted degrees. While the Montgomery GI Bill continued to provide benefits for non-degree programs such as apprenticeships and on-the-job training, veterans overwhelmingly began to opt for the Post-9/11 GI Bill.

Starting October 1, 2011, the Post-9/11 GI Bill will be expanded to allow participants in that program to use money for non-degree programs as well. The change erodes the difference between the training covered by the two current GI Bills, and some say it may indicate the Montgomery GI Bill is on the way out.

"The October 1st change that is coming significantly affects the Post-9/11 GI Bill. It makes the bill more flexible and will in the end benefit students," said Patrick Street, an active-duty officer and columnist for personal finance site MoneyCrashers.com.

"By giving students the opportunity to take full advantage of on-the-job training, flight programs and correspondence training, the role of the Montgomery GI Bill is becoming much more insignificant."

Montgomery GI Bill: A look back

Named after former Mississippi Congressman Gillespie V. Montgomery, who helped revamp the program, the Montgomery GI Bill was passed in 1984. Servicemembers entering active duty in 1985 were the first to be eligible for the program's benefits.

While the Montgomery GI Bill offered educational benefits, it did not provide a living stipend as the original Servicemen's Readjustment Act did. In addition, a 2009 report from the American Council on Education indicated Montgomery GI Bill benefits did not keep pace with rising college tuition costs. As a result, many veterans found it difficult to attend school without also holding down a job.

Fortunately for veterans, the Post-9/11 GI Bill improved educational benefits and reinstated the living stipend. Commenting on the Post-9/11 program, a representative from the Veterans Affairs Department said that it offered the most comprehensive benefits of any current education program offered by the administration. Veterans seem to agree.

"Honestly, the Post-9/11 GI Bill was the reason why I had chosen to get out of the military," said veteran William Curtis. "They were going to pay 100 percent tuition and pay me $1200 a month to live--I couldn't pass up that opportunity."

Is there still a place for the MGIB?

Given the enhanced benefits offered by the Post-9/11 GI Bill, military personnel may be tempted to simply opt out of the Montgomery GI Bill. However, veterans shouldn't be so quick to forget about the MGIB. For servicemembers in special situations, such as veterans living in states where tuition is waived, the MGIB may still be a better deal.

Additionally, representatives from the VA remind servicemembers they may be eligible for up to 48 total months of benefits from veteran education programs. Since the Post-9/11 GI Bill limits benefits to 36 months, some veterans may be able to combine the two GI Bills to get an extra year of benefits.

Servicemembers who are eligible for both GI Bills can use 36 months of MGIB benefits and then get an additional 12 months if they switch the Post-9/11 GI Bill. However, since benefits vary under each program, veterans should do the calculations for their individual situations before deciding what benefits to use.

Share This

Email