GI Bill

The GI Bill is the common name for the education and training benefits the Department of Veterans Affairs provides to eligible service members, veterans, and in some cases their families. It is an umbrella rather than one benefit. The two versions in use today are the Post-9/11 GI Bill (Chapter 33 of Title 38), which pays tuition, housing, and books with the tuition share tied to length of qualifying service, and the Montgomery GI Bill (Chapter 30), an older program that pays a flat monthly stipend after the service member makes a required pay reduction during service. Benefits generally cover up to 36 months of education.

The two programs pay in fundamentally different shapes. The Post-9/11 GI Bill splits its payment: it pays tuition and fees directly to the school (up to the full cost at a public in-state school, or up to an annual national cap at private and foreign schools), plus a monthly housing allowance to the student that is based on the location of the school, plus an annual stipend for books and supplies. The tuition percentage is tiered by how long the member served, so not every veteran receives the full benefit. The Montgomery GI Bill instead pays the veteran a single flat monthly amount, out of which the veteran pays tuition, housing, and everything else; it requires a $1,200 pay reduction during service to enroll.

Two features extend the Post-9/11 benefit's reach. Transferability lets a qualifying service member assign unused months to a spouse or children, subject to a further service commitment, which the Montgomery program does not allow. The Yellow Ribbon Program lets participating schools and the VA jointly cover tuition and fees above the national cap, so a veteran at an expensive private school can attend with little or no out-of-pocket tuition. Because the housing allowance, the private-school tuition cap, and the Montgomery monthly rate are all adjusted over time, the exact dollar amounts are published by the VA each year rather than fixed. Choosing between Chapter 33 and Chapter 30 is generally a one-time, irrevocable election, so it is worth comparing them against the specific school and living situation before enrolling.

Using the GI Bill runs from eligibility to a school's certification each term.

1. Confirm which chapter you qualify for and, where you have a choice, elect one; the election between Chapter 33 and Chapter 30 is generally irrevocable.

2. Apply to the VA for a Certificate of Eligibility, which states your benefit level, such as the Post-9/11 tuition percentage tied to your service length.

3. Enroll at an approved school and have its certifying official report your enrollment to the VA each term.

4. Under the Post-9/11 GI Bill, the VA pays tuition and fees to the school and the housing allowance and books stipend to you; under the Montgomery GI Bill, the VA pays you a flat monthly amount to cover everything.

A conceptual example. A veteran with full Post-9/11 eligibility attending a public in-state university has tuition and mandatory fees paid in full to the school, receives a monthly housing allowance set by the school's location while enrolled more than half time, and gets an annual books stipend. The same veteran attending an expensive private school might face tuition above the national private-school cap, which the Yellow Ribbon Program could close if the school participates. Actual amounts depend on the year's published rates.

Pros

• Substantial, earned education funding: the Post-9/11 GI Bill can cover full in-state public tuition plus housing and books.
• Transferability lets a qualifying member pass unused Post-9/11 benefits to a spouse or children.
• The Yellow Ribbon Program can eliminate out-of-pocket tuition above the cap at participating schools.

Cons and cautions

• The Post-9/11 tuition benefit is tiered by length of service, so not every veteran gets 100 percent.
• Choosing between Chapter 33 and Chapter 30 is generally irrevocable, and the wrong choice can leave money on the table.
• Benefits are usually limited to 36 months, and the housing allowance depends on enrollment intensity and the school's location.