Wait to Change GI Bills

Post-9/11 Vets Get 12 Extra Months of Pay if They Use up Their MGIB

Aug 31, 2009 Christopher Pascale

The Department of Veterans Affairs has announced that veterans with the Montgomery GI Bill may want to wait before switching to the superior Post-9/11 GI Bill.

Veterans today have more opportunities than ever, especially with the introduction of the new Post-9/11 GI Bill, which will eventually phase out the Montgomery GI Bill.

While there are many reasons that eligible veterans should replace the MGIB with the new program, they should not do so without knowing all of the details of these programs.

First, veterans should find out which program is better for their educational needs since some will find greater benefit in the MGIB than they will in the Post-9/11 GI Bill. Next, veterans should figure out how long they will be in school, especially since they can utilize both programs for more benefits.

Veterans Who Use Both Programs Can go to School Longer

The different GI Bills offer veterans 36 months of benefits for school. Whether they are attending trade school, community college, or pursuing their MD, PhD, or JD, the benefits do not typically extend for longer than 36 months.

There is an exception to this rule. Eligible veterans for the Post-9/11 GI Bill who paid into the Montgomery GI Bill are allowed to exhaust their MGIB and then receive 12 extra months of benefits through the Post-9/11 GI Bill.

If this sounds too good to be true, call the VA Education line at 1(888) 442-4551 to hear it straight from the source.

Which Veterans Should Switch to the Post-9/11 GI Bill Early?

While receiving money to go to school over a longer period of time is better for many people, there are some students who should not wait to switch their GI Bills. They include:

People who need more money right away
Those in high BAH areas
Students in high cost schools
Veterans in need of 36 months of schooling or less

Patience may be a virtue, but it is not always wise. The new GI Bill almost always offers more money than the MGIB. If money is a key factor to utilizing the GI Bill, then the new one will most likely be the program of choice once the options are weighed.

Another factor that must be considered is that the new GI Bill pays for tuition, housing, and text books whereas the MGIB pays a lump sum of cash (that is usually less) for veterans to make the most out of. So, for those who live in areas like Long Island and Washington, DC where housing rates exceed what the MGIB pays, then using the older program may be contrary to one's best interest.

Veterans can go here to find out the BAH of their prospective school.

Students living in moderate level BAH areas, but are attending expensive schools, may want to change to the new program since it pays tuition up front up to the cost of the highest costing public college in the state that the school is located. In places like Texas, where state tuition can exceed $10,000, this is a tremendous help.

And for students who left the military with enough college credits that they will not need more than 36 months worth of benefits, such as those pursuing graduate or trade school, then waiting to use the better program would make little sense since there is a decreased likelihood that it will be used at all.

Which Veterans Should not Switch From the Montgomery GI Bill?

There are several groups that would be hindered in switching from the MGIB to the Post-9/11 GI Bill early. Among them are:

Students halfway through the MGIB
Those wanting to get a bachelor's and a graduate degree
Students on full scholarship in low BAH areas

If a veteran has used up half of his GI Bill or more, and/or will need more months for school than he has benefits left, it would be best to exhaust the MGIB and then switch, because the result is that he will receive another 12 months of benefits. To switch early would be to pass up the extra assistance.

Another group that should wait is students on full scholarship in low BAH areas. For example, veterans attending school in Buffalo, New York would currently receive $1,150 a month through the new GI Bill. For those who paid into the old program for 18 months, they would receive $1,471, or $321 more. So, if a student was on a full scholarship to the nearby private school, Niagara University, he would benefit more from the MGIB than he would from the Post-9/11 GI Bill.

Overall, deciding which educational program to use is a matter of weighing the options. While the Post-9/11 GI Bill is far superior in most ways to the MGIB, those who paid into the older program can find great benefits in utilizing both.

The copyright of the article Wait to Change GI Bills in Consumer Education is owned by Christopher Pascale. Permission to republish Wait to Change GI Bills in print or online must be granted by the author in writing.

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