Transfer Eligibility: Can Family Members Use Your GI Bill?

Transferring your education benetis to a spouse or child is a great feature of the New GI Bill, and you should know about the stipulations. Under the Montgomery GI Bill (MGIB), only members of the Army were able to transfer their education benfits. On a case-by-case basis, other members of the armed forces could transfer benefits, but this decision was always left up to each branch of service (transferability is not up to the VA). Under the new, Post-9/11 GI Bill, all eligible service members will be able to transfer their unused education benefits. This policy, called TEB (Transferring Educational Benefits) was issued June 23 by the Department of Defense.

To transfer benefits, you need to have at least six years of service and reenlist for an additional four. Once that's been verified, you can transfer up to 36 months of your benefits to a dependent. This is great news--and great motivation--for those considering reenlistment.

If you qualify for GI Bill benefits, you can transfer them to a family member starting August 1, 2009, but only if you've served:

• At least six years in the Armed Forces, and you reenlist for an additional four
• Ten years of service, but can't serve an additional four because of a service or Defense Department policy (you must serve the maximum time allowed before separating from the military, though)

When to Transfer Your GI Bill Benefits

Your GI Bill benefits can be used by a spouse immediately, though a child is only eligible to use the benefits after you've completed ten years of service. Under the MGIB, members of the Army could transfer your benefits at any time; however, under the Post-9/11 GI Bill, you need to be currently serving in the Armed Forces when you transfer your benefits. Under both bills the sponsor can modify or revoke those benefits at any time. Any family member you chose to sponsor must be enrolled in the Defense Eligibility Enrollment Reporting System before he or she can receive the benefits.

When looking to transfer your GI Bill benefits to a dependent and you're nearing retirement, there are additional caveats you need to consider. Be sure to talk to a VA counselor about transferability prior to retirement.