GI Bill Tuition Payment Rates

You know that the GI Bill is available to help you pay for a college education. But you're probably wondering how much of your tuition the GI Bill will pay and how much you need to pay out of your own pocket. The answer depends on several factors, with the biggest one currently being the version of the GI Bill you are using.

Montgomery GI Bill Payment Rates

The amount the Montgomery GI Bill pays is a set monthly amount, which is adjusted each year based on cost of living increases. It also increases if you have dependents. This version is paid directly to you, either through direct deposit or via check. Benefits under the Montgomery GI Bill often do not cover the full amount of college expenses.

Post-9/11 GI Bill Payment Rates

The new Post-9/11 GI Bill determines the payment amount in a different way. For students attending a public school, the Post-9/11 GI Bill pays the in-state student rate for tuition and fees. If you are attending a public school as an out-of-state student, you are responsible for any difference between the two rates. At private and foreign schools, the GI Bill covers eligible tuition and fees up to a $17,500 maximum. You are responsible for any costs above the maximum. Some schools may choose to participate in the Yellow Ribbon Program, which allows schools to enter into a cost-sharing agreement with the VA to help cover additional fees.

Tuition benefits under the Post-9/11 GI Bill are paid directly to the school. Many students are also eligible for a housing allowance, prorated for students attending less than full time, and a stipend for books.

Which One Should You Use?

If you are eligible for both versions of the GI Bill, you are by default assumed to be using the older Montgomery GI Bill. You can choose to transfer to the new version of the GI Bill, but you won't be able to reverse that change once you've made it. Therefore, before taking any action, it's a good idea to understand the differences between these GI Bills and talk with an education representative to make sure you've considered all possibilities.