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 Bil determines the payment amount in a much different way. It pays an amount equal to the tuition and mandatory fees (for example, health insurance premiums and lab fees) charged by your school; the maximum it pays is equal to the in-state tuition at the most expensive public university in your state. Payment is made directly to your school. If you are attending full-time, on campus (as opposed to Internet-based or distance learning courses), you are also eligible for a Basic Allowance for Housing (BAH), to help defray your cost of living while attending school.

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. After August 2009, when the new Post-9/11 GI Bill comes into effect, you can choose to transfer to this newer version 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.