Due to misinformation, rumors, and bureaucratic language, the MGIB seems a mystery to most people. The following information will help you to solve the MGIB mystery, use the benefits you have earned, and explain how to take full advantage of them.

Here's how the Montgomery GI Bill Works for You!

If you are qualified for the "NEW" MGIB (Categories 1 and 4 ) and you have completed more than three years active duty,your total benefits will be $35,460 in October 2003. This sum is reached by multiplying the current FY maximum benefit ($985) by 36 (the number of portions or months in your account). Don't let the term "months" confuse you -- months only correlate with the calendar for full-time academic (non-active duty) students. 

Here's how it works for Active Duty members:

If you are currently on active duty the VA will pay up to the cost of your education tuition and fees (with a limit of $985 per month as a full-time student). 

Example 1: If you are a full-time student (usually 12 units) and your tuition is $5800 (or more) for a semester, you would receive the full $985 per month from the VA. However, if your tuition costs are only $3000 for the semester, you would receive approximately $500 per month. 

Example 2: If you are a part-time student (carrying less than 6 units) and your tuition is $2960, you would receive $492.50 per month (capped at the part-time student GI Bill rates). However if your tuition were only $150, you would only receive $150 from the VA. 

Critical Note: Receiving a smaller MGIB payment each month does not adversely affect your MGIB benefits because you don't actually loose a month of benefits until you have used $985. That means a 12 unit semester while on active duty could cost you less than 2 months of your total VA benefits. While the same 12 unit semester could cost a veteran up to 5 months of benefits. 

Check out the FAQ below for more information.

Here's how it works if you are a Veteran:

If you have successfully completed your military service and are a full-time student (as defined by your school), the VA will pay you the full $985 per month regardless of the tuition costs. 

Example: If you are a full time student and your tuition cost is $100 you would still receive the full $985 per month while enrolled in school.

Frequently Asked Questions

Why isn't the MGIB considered Financial Aid?

The MGIB is not considered financial aid because in most cases it is paid directly to you, not the school. This also means that you can use student loans, scholarships, and Pell Grants along with the MGIB. For help in locating scholarships, see the Scholarship Search. 

How long do I have to use my benefits?

Once you have separated from the service you have 10 years to use all of your benefits. Although separating from service "starts the clock" on your 10-year time limit, be aware that if you re-join the service, the "clock stops" until you leave the service again. This broken service will subtract time from your 10-year limit. 

Example: Seaman Smith left the active duty and joined the Navy Reserve. Three years later she returned to active duty with seven years remaining on the MGIB clock. At that point the clock is on hold at the seven year mark until she leaves the service again, at which point the clock will start ticking again, meaning she now has seven years left to use ALL of her benefits, or she will loose her remaining balance, which then returns to Uncle Sam.

Clarification: She has not lost her available benefits; she simply has less time to use them. 

Can I stop and start using the MGIB at will?

YES! Unfortunately, many people believe that once you apply for benefits you have to remain enrolled in school to get the full $35,000. Thankfully that's not true, you can use the MGIB for any period of time, take time off and reapply to use it again at a later date. 

What does a "month" of benefits mean?

Every time you use the current FY maximum "payment rate" ($985) of MGIB benefits you use a month. Most active duty members will use smaller portions of the funds at different times through programs like Top-up, Vo-Tech, Certification Tests, or as Part-time students. This means that the length of the course doesn't determine how many months of benefits you use, the amount of benefits you draw determines the amount of months you've used. You are charged a month only when your total payments reach $985 or a multiple of the maximum "payment rate". 

Example: If Airman Jones uses $450 dollars for top-up, he has used a half-month of his benefits. The key to remember is that a "month" is more correctly defined as a monetary portion not a 30-day period of training. 

How often will I receive payments?

In most cases you will receive your benefits on a monthly basis. However each month that you are enrolled in classes you are required to verify your "status" this can be accomplished through Web Automated Verification of Enrollment (W.A.V.E.) or by telephone. Within 3-5 days you will receive a direct deposit of your monthly benefits. However you will not receive your payment until you verify. 

Will I have to pay taxes on my MGIB benefits?

NO! Your MGIB benefits are NOT taxable! 

What are the current "payment rates"?

The MGIB Payment rates increase every year; Click here to see the current and future "payment rates."

Can I be eligible for more than one benefit?

You may be eligible for more than one VA education benefit. If you are, you must elect which benefit to receive. You can't receive payment for more than one benefit at a time. The other benefits are: 

• Training and Rehabilitation for Veterans With Service-Connected Disabilities 

• Post-Vietnam Era Veterans' Educational Assistance Program 

• Survivors' and Dependents' Educational Assistance 

• Montgomery GI Bill-Active Duty Educational Assistance Program 

• Educational Assistance Test Program 

• Educational Assistance Pilot Program 

How do I get started?

You can apply for the GI Bill by filling out and following the instructions on VA Form 22-1990, Application for Education Benefits. For more details, see How to Apply for GI Bill Benefits and get started using your benefits today! 

Remember, many schools offer free information packets they will mail you. You can request information from multiple schools at once by filling out a form on Military.com. With no obligation or cost, learning about different schools is a great way to take the first step. Click here to request information.

 This content courtesy of Military.com