What You Need to Know About the GI Bill
Use it, or LOSE it
The Montgomery G.I. Bill is one of the many benefits Veterans can use to obtain an education. However, most Veterans are unaware of an important limitation of this benefit. After you leave the service you have 10 years to use your GI Bill — or lose it.
A: Not in the traditional sense. In most cases, the school’s financial aid department does not consider the MGIB financial aid because it is normally paid directly to you, not the school. Most schools require you to sign a promissory note or apply for student loans to pay them upfront.
This also means that you are eligible for student loans, scholarships, and Pell Grants along with the GI Bill. But it is important to note that your GI Bill income will reduce the amount of student financial aid you are eligible to receive.
A: 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, rejoining active-duty service for more than 90 days, during the 10- year period, will reset your 10-year clock. In other words, you get 10 years from your last discharge.
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 reset at the 10-year mark when she leaves the service again. She now has a fresh 10 years left to use all of her benefits or she will loose her remaining balance, which then returns to Uncle Sam.
Q: When can I use my GI Bill?
A: You can begin using your benefit after two years of service. However, before you use the GI Bill you should know that it is usually not a good idea to use it while on active duty, because VA administers the GI Bill differently for active duty and Veterans. For instance a Veteran is charged one month of benefits for each $1,075 — the current GI Bill "payment rate" — in education benefits used.
Example: If a Veteran receives $4,300, and the current full-time payment rate is $1,075, divide $4,300 by $1,075. The Veteran will be charged four months of the 36 months of benefits.
But, if you are on active duty and go to school full-time for four months, you will still be charged four months of benefits even if your tuition is only $1,000.
Considering this, it only makes sense to use your GI Bill on active duty if your tuition costs are high or you use your “GI Bill Top-up” benefit.
Note: You should always consult your Education Service Officer or Navy College representative before using your GI Bill or taking any college classes. They are trained to give you the counseling that will help you avoid wasting your time and benefits.
A: Yes. Unfortunately, many people believe that once you apply for benefits you have to remain enrolled in school to get the full benefit. Thankfully that’s not true, you can use the MGIB for any period of time, take time off and re-apply to use it again at a later date.
A: For Veterans: Every time you use the current Fiscal Year (FY) maximum "payment rate" ($1,075) of MGIB benefits you use a month.
Here is what the VA says:
If you’re a Veteran and you receive $4,300, and your full-time MGIB rate is $1,075, divide
$4,300 by $1,075. Your entitlement charge is four months.
However for active duty
:
If you are on
active duty and you go to school full-time for four months, but your tuition is
only $1,000, you will still be charged for four months of your GI Bill 36 month entitlement.
Note: It only "pays" to use your GI Bill on active duty if your tuition costs are high or you use it as Top-Up.
A: If you receive $537 for Top-Up, and your full-time rate is $1,075, divide $537 by $1,075. Your entitlement charge is one-half month. '
A: In most cases you will receive your benefits on a monthly basis. However, you’re required to verify your "status" every month you’re not in classes. This can be accomplished through Web-Automated Verification of Enrollment (WAVE) or by telephone. Within five days you will receive a direct deposit of your monthly benefits. However, you will not receive your payment until you verify.
A: No. Your MGIB benefits are not taxable.
A: The MGIB Payment rates increase every year. See the current GI Bill payment rate tables to view the details and this year’s payment rate.
A: 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.
- 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
A: You can apply for the GI Bill by filling out and following the instructions on VA Form 22-1990, Application for Education Benefits.
