MARINE CORPS AIR STATION IWAKUNI, Japan -- A good mind is a terrible thing to waste, but failing to maximize GI Bill benefits is just plain foolish.
Although most service members still have plenty of time to make a decision, at some point they will need to decide whether or not to opt into the Post 9/11 GI Bill or remain under the Montgomery GI Bill.
While this article will serve as a down-and-dirty guide explaining important differences, there is no way to account for every possible nuance in a person’s situation.
For most people, opting into the Post 9/11 GI Bill will give the best benefits; however, there are ways to make the Montgomery GI Bill more beneficial.
Here are the top 9 things to keep in mind:
Plan ahead.
Although this cannot be emphasized enough, if you take nothing else from this article, planning ahead is the most important step when it comes to using any GI Bill benefits.
Planning will allow you to maximize your benefits. Verify coverage with the Department of Veterans Affairs.
Once a plan has been created, individuals should check to ensure they will be covered under the GI Bill they plan to use.How the different bills can be used:
The Post 9/11 GI Bill can only be used when working toward a degree, undergraduate or graduate.
For career choices requiring certification tests, the Post 9/11 GI Bill will only pay for one test.
The Montgomery GI Bill can be used for non-college degree programs, on-the-job and apprenticeship training, flight training, licensing and certification, national testing programs, entrepreneurship training, co-op training, tuition assistance top up and tutorial assistance.
Some of the latter could be covered under the Post 9/11 GI Bill but only if it is part of a degree; e.g., some aviation engineering degrees require flight training and because the training is part of the degree the Post 9/11 GI Bill should cover those costs.
Ultimately the benefit user needs to contact Department of Veterans Affairs to verify coverage.Eligibility:
For both bills, an honorable discharge is required.
In addition, service members must have served three consecutive years and paid $1,200 toward the Montgomery GI Bill to use it. Service members who served two consecutive years or more but less than three years are eligible for a percentage.
To receive 100 percent benefits under the Post 9/11 GI Bill, service members must have served at least 36 cumulative months after Sept. 10, 2001 or served 30 continuous days on active duty and been discharged due to service-related disability.
Less time results in a reduced coverage percentage.
Service members can receive a percentage of benefits if they served an aggregate of 90 days after Sept. 10, 2001.
Exact percentages based on time served can be found near the very bottom of the following Web site: http://www.gibill.va.gov/GI_Bill_Info/CH33/Benefit_Comparison_Chart.htm.How the two bills pay once eligibility is determined:
The Montgomery GI Bill is paid as a monthly lump sum directly to the benefit user. Currently, for a full-time student the rate is $1,368 per month for those who have served three or more years, but that amount can increase based on needs; e.g., a benefit user wants to take several certification tests exceeding the $1,368 per month.
So long as the tests meet coverage eligibility, they will be paid for; however, this will affect the total remaining months of coverage. The limit is $2,000 per test, but individuals may take as many tests as they wish.
A good way to think of the Montgomery GI Bill is this: right now, 36 months of GI Bill coverage is worth approximately $49,248 (36 x $1,368).
The value is only approximate because the lump sum amount is recalculated annually.
The Post 9/11 GI Bill pays tuition and fees directly to the school based on the pay tables at the following Web site: http://www.gibill.va.gov/GI_Bill_Info/CH33/Tuition_and_fees.htm.
For active duty personnel, the Post 9/11 GI Bill will pay 100 percent tuition while on active duty.
Also, the Post 9/11 GI Bill will pay monthly BAH at the rate of an E-5 with dependents, regardless of rank upon end of active service, based on the zip code of the actual institution where courses are being taken. To determine BAH, input the institution’s zip code at the following Web site: http://www.defensetravel.dod.mil/perdiem/bah.html. Don’t forget to select E-5 for rank.
Students attending schools outside the U.S. that do not have a main campus within the U.S. receive $1,333 for 2009.
If the school does have a main campus in the U.S., BAH is calculated by the zip code of the main campus located in the U.S.
Students must attend one credit hour over what the institution attended considers part-time to be eligible for BAH.
Active duty personnel are not eligible for BAH.
Students taking only online courses are not eligible to receive BAH, but if they take one class at an actual institution they qualify for BAH.
Any kickers a service member received as an enlistment or retention incentive will be added onto the monthly BAH at the rate of up to $950 per month for critical military occupational specialties, and up to $350 per month for retention.
The Post 9/11 GI Bill will also pay a lump sum book stipend at the current rate of $41.67, for those who are 100 percent eligible, per credit hour, up to 24 credit hours per year.
Active duty personnel are not eligible for the book stipend.Opting into the Post 9/11 GI Bill is permanent;
individuals cannot go back to the Montgomery GI Bill, but they can go from the Montgomery GI Bill to the Post 9/11 GI Bill at anytime.
There are several points to consider here.
First, if Montgomery GI Bill benefits have been used, upon switching to the Post 9/11 GI Bill, benefits will be pro-rated month for month; e.g., if a person has used 6 months under the Montgomery GI Bill, upon switching to the Post 9/11 GI Bill, the person will have 30 months of coverage under the Post 9/11 GI Bill.
Second, if individuals completely exhaust their Montgomery GI Bill benefits, they will receive 12 more months under the post 9/11 GI Bill giving a total of 48 months of benefits.
Third, if a individuals already paid the $1,200 into the Montgomery GI Bill and they switch to the Post 9/11 GI Bill, they will receive the $1,200 with the last basic allowance for housing check once all Post 9/11 GI Bill benefits have been exhausted. If the Montgomery GI Bill has been used, the $1,200 will be pro-rated based on how much of the Montgomery GI Bill benefit was used. For those who topped up their Montgomery GI Bill, only the initial pay-in of $1,200 will be returned.
Fourth, the Montgomery GI Bill is good for 10 years from date of last discharge or separation while the Post 9/11 GI Bill is good for 15 years from date of last discharge or separation. If a service member is called back, the time completely resets upon the new discharge or separation date.
If the 10 years is almost up and benefits have not been used, opting into the Post 9/11 GI Bill will grant the additional five years.Benefit transfer to spouses or dependents can be done only under the Post 9/11 GI Bill, and service members are required to have served at least six years and reenlisted for four more years.
Reenlistment requirements vary for service members close to service limitations and who have surpassed 10 years already.
Under the Post 9/11 GI Bill, a service member can only transfer benefits while on active duty; e.g., if a service member with a spouse and one child allocates benefits only to the spouse and leaves the military, the service member will not be able to transfer any benefits to the child later. But, if the service member allocates any percentage to the child and the rest to the spouse, the service member will be able to modify the percentages as desired later.
Spouses may begin using benefits immediately and all the stipulations applying to the service member in terms of use will apply to the spouse. Remember, while on active duty, service members, and by extension their spouses, do not rate the BAH or the book stipend given under the Post 9/11 GI Bill.
For children, the 15-year time limit to use benefits does not apply, but the service member must have completed 10 years of service before children may use benefits.
Once children reach 26 years of age they are no longer eligible for benefits.
While children are using the benefits, they will receive BAH and the book stipend.Students who drop out will have to return a pro-rated percentage of received funds to the Department of Veterans Affairs.
People choosing to take time off or dropping out should immediately contact the Department of Veterans Affairs to explain the situation and find out what they will have to pay back.Once benefits are applied for, the final step before payment will be processed is to find the Veterans Affairs certifying officer at the institution. This last step is the only way to get paid.
The bottom line: this article should only serve as a guide.
For most, the Post 9/11 GI Bill is the best option, but there are circumstances where the Montgomery GI Bill can be better.
There are two clear situations where the Montgomery GI Bill will be more beneficial.
First, if not pursuing a degree, the Montgomery GI Bill is the only option.
Second, some states waive tuition for residents attending state schools. If this is the case, or individuals find a way to fund their tuition through alternate means such as scholarships, the monthly lump sum from the Montgomery GI Bill will almost always be more than the BAH and yearly book stipend; however, check the BAH rate and factor in the stipend to be sure.
As a final note for active duty, unless there are serious financial issues or a spouse wants to attend an expensive school, saving GI Bill benefits and using tuition assistance is probably a better idea.
For more information about the Montgomery GI Bill or Post 9/11 GI Bill, visit http://www.gibill.va.gov/ or contact the station’s Veterans Affairs representative Tiffany Gemas at 253-6439 to set up an appointment or e-mail her at VAtgemas@aol.com.
Note: All information contained in this article was evaluated for accuracy by Tiffany Gemas, the station’s Veterans Affairs representative.