New GI Bill Becomes Reality

The debate over improving the GI Bill has finally ended at President Bush's desk. Although the law has been passed, the new benefit does not go into effect until August 1, 2009.

In an effort to push through Sen. James Webb’s (D-VA) popular “Post 9/11 GI Bill” (S. 22), Congress inserted it in the Military Construction and Veterans Affairs and Related Agencies Appropriations Act (HR 2642).

The New GI Bill provides servicemembers or veterans with over 36 months of active-duty service since Sept. 11, 2001, some veteran students could see an increase of up to about $2,000 a month over the current Montgomery GI Bill payment rate of $1,321.

It is important to note that the Post 9/11 GI Bill is not a replacement for the Montgomery GI Bill (MGIB). Many servicemembers and veterans will be able to choose the program that best suits their personal situation. Many veterans may find it best to remain with the current MGIB due to certain payment stipulations.

At-a-Glance GI Bill Comparison

The following table highlights the differences between the Montgomery GI Bill and the proposed Post 9/11 GI Bill. The data presented here reflects current language found in the pending legislation (H.R. 2642). As is normally the case with legislation some details remain sketchy until the final version is made public and the VA determines how best to administer this new benefit.

 

Montgomery GI Bill
Chapter 30

Post 9/11 GI Bill
Proposed - Chapter 33

Payment Rate for
Full-Time Student

Annually set - nationwide - monthly payment rate. The payment rate will increase to $1,321 for the 2008-2009 academic year+

A payment indexed to full in-state undergranduate tuition rate for public schools. Paid per term.

Additional expense
payments

No additional payments for expenses.

Living Expenses - stipend based on local BAH for E-5 with dependents – paid monthly

Up to a $1,000 a year for books and fees

Eligibility Requirements

Entered military after June 30, 1985

Active-duty service since Sept. 11, 2001

VEAP-era 
Eligibility

No - Except those who elected to convert in the past.

Yes – those who meet the eligibility criteria above.

Benefit Expiration

10 Years after separation or discharge.

15 Years your last period of active duty of at least 90 consecutive days.

Transfer benefits
to families

Limited - Currently Limited to Army for Critical MOS only.

Yes - open to servicemembers with six years service who agree to reenlist. Details Below.

Enrollment fee

 Yes - $1,200

None

Transferring Post 9/11 GI Bill Benefits: The Department of Defense (DoD) is authorized to allow individuals who, on or after August 1, 2009, have served at least 6 years in the Armed Forces and who agree to serve at least another 4 years in the Armed Forces to transfer unused entitlement to their dependents (spouse, children). The Department of Defense may, by regulation, impose additional eligibility requirements and limit the number of months transferable to not less than 18 months.

Transfer of Unused Education Benefits Under MGIB (Chapter 30), 1606, or 1607 to Family Members. The Department of Defense is authorized to allow individuals who have served at least 6 years in the Armed Forces and who agree to serve at least another 4 years in the Armed Forces to transfer unused entitlement to their dependents (spouse, children) under chapters 30, 1606, and 1607.  The Department of Defense may, by regulation, impose additional eligibility requirements and limit the number of months transferable to not less than 18 months.

NOTE: Although the transfer of entitlement provisions are effective as of June 30, 2008, DoD must develop regulations and provide VA with eligibility information before we can make payments under this provision. The ability to transfer benefits is limited to those currently serving in the military.

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About Terry Howell

Terry Howell

A Retired Coast Guard Chief Petty Officer, Terry completed his BS in Management and Communications using a combination of CLEP exams, credit for military service, and distance learning while on active-duty. Terry now serves as Managing Editor for the Education Channel at Military.com.

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