The Montgomery GI Bill (MGIB) is an older GI Bill program that differs greatly from the Post-9/11 GI Bill. Click here to learn more about the Post-9/11 GI Bill.
The Montgomery GI Bill is an education benefit worth over $87,000. This amount is based on the 2024-25 monthly full-time student payment rate of $2,438 multiplied by the 36-month limit for a single term of service. This “payment rate” automatically increases each Oct. 1. You get the annual increase no matter when you became eligible or begin using it.
The term “36 months of benefits” refers to academic months — time actually enrolled at the full-time rate of pursuit. This means you will have up to eight semesters (four years) of traditional academic education.
Note: Your actual benefits may be higher if you signed up for the Army, Navy or Marine Corps College Funds; and members who serve two or more terms of service may qualify for 48 months of benefits.
The Montgomery GI Bill (MGIB) is an education benefit program for active duty, reserve, and National Guard members of the US military. It provides up to 36 months of funding for degree and certificate programs, apprenticeships, on-the-job training, and more. But what exactly does the MGIB pay for? Let’s take a closer look.
A Quick Overview of the Montgomery GI Bill
First authorized in 1984, the MGIB helps military personnel and veterans cover education and training costs. There are a few different versions of the MGIB based on your military status:
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Montgomery GI Bill – Active Duty (MGIB-AD): For those who enlist in active duty.
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Montgomery GI Bill – Selected Reserve (MGIB-SR) For reservists who enlist re-enlist, or extend their enlistment for 6 years.
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Reserve Educational Assistance Program (REAP) For reservists who were activated under federal authority for at least 90 days after 9/11
In general, the MGIB provides a monthly payment directly to the student to help cover expenses. The exact payment amount depends on your GI Bill program, enrollment status, and length of service.
To qualify, you must have a high school diploma or GED, complete your initial active duty obligation, and meet any additional program requirements. There may also be a $100/month contribution required during your first 12 months of active duty service.
What Programs Does the Montgomery GI Bill Cover?
The MGIB is quite flexible in terms of what types of education and training programs it will fund. Here are some of the main options:
1. College Degrees
One of the most popular uses of MGIB benefits is earning an associate, bachelor’s, or advanced degree at a college or university. This includes vocational programs offered by technical and trade schools.
The MGIB will cover tuition and fees, books and supplies, and housing costs if taking classes full-time.
2. Licensing and Certification
Many occupations require professional licenses and certifications beyond just a degree. The MGIB can help cover the exam fees for getting licensed or certified in your career field.
For example, teachers need certifications, healthcare workers need licenses, IT professionals get certified in systems and software, and more. The MGIB can reimburse you up to $2,000 for test fees.
3. Apprenticeships
Paid apprenticeships combine classroom learning with on-the-job training under the supervision of experienced professionals. Apprenticeships can be a pathway into skilled trades or tech occupations.
The monthly MGIB benefit helps supplement the typically lower apprenticeship wages.
4. On-the-Job Training
Some companies provide structured on-the-job training programs for new hires to help them gain hands-on experience. The MGIB can provide a living allowance while completing this employer-provided training.
5. Flight Training
Learning to fly? The MGIB covers flight training programs to help veterans and service members earn private, commercial, and airline transport pilot licenses and ratings.
The benefit covers 60% of approved flight training costs.
6. National Testing Programs
Earning college credit through CLEP, DSST, AP, or other national testing programs can accelerate your degree. The MGIB will reimburse you for fees associated with taking these tests.
7. Correspondence Courses
Can’t attend classes in person? The MGIB pays a portion of costs for approved correspondence or distance learning courses that allow self-paced study.
8. Tutorial Assistance
If you need some extra academic help with a tough class, the MGIB provides a tutor allowance of up to $100 per month (with a max of $1,200 over your enrollment).
9. Refresher Training
For those who need review before starting a program, the MGIB covers “refresher” training to sharpen up skills in basic subjects like math, science, English, and more.
10. Training after Getting a Degree
Already earned a bachelor’s degree with the MGIB but want career-focused training in another field? You could potentially use any remaining months of MGIB benefits for a non-degree program.
Key Factors That Determine Your MGIB Benefits
Your monthly payment rate, total amount of benefits, and how long you can use the MGIB depend on these key factors:
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Time in service: Active duty members who serve at least 3 continuous years (36 months) qualify for the maximum benefit. Serving between 2-3 years results in a reduced benefit.
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Service obligations: Meeting your initial active duty or reserve/guard commitments is required to get MGIB approval.
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College fund contributions: Opting into the college funds for either the Army, Navy, Marines, or Air Force adds up to an extra $20,000 in benefits.
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Enrollment status: Full-time students get a higher monthly benefit than part-time students.
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Education program: Benefits are calculated differently for degree programs, apprenticeships, flight training, etc.
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School tuition rates: MGIB payments are capped at $2,438 per month. If tuition is lower, you may get less.
How Much Does the MGIB Pay On Average?
The average payment amount varies depending on your GI Bill program and military status. Here are some approximations:
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MGIB-AD: For active duty members, the average benefit is around $2,300 per month or roughly $27,600 per year if attending full-time.
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MGIB-SR: For reservists, the average monthly benefit is approximately $398, or about $4,700 per year of full-time training.
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REAP: For reservists called to active service, this offers a maximum benefit of around $1,600 per month or $19,200 per 12 months of full-time enrollment.
These are just estimates – your individual benefits depend on the factors discussed earlier. Also note that the monthly payment rates increase slightly each year on October 1st based on inflation.
How to Apply for and Use Montgomery GI Bill Benefits
Applying for your MGIB benefits involves a few key steps:
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Establish eligibility: Meet active duty and/or reserve obligations and have qualifying service.
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Provide documentation: Have your DD214 discharge papers, orders, contracts/agreements, college fund contract, and other documents available.
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Submit application: Complete VA Form 22-1990 for MGIB-AD or VA Form 22-1990N for MGIB-SR/REAP.
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Get letter of eligibility: VA will process your application and mail a letter confirming your benefit details.
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Pick a program: Choose an approved degree or training program at a VA-accredited school or institution.
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Enroll: Apply and enroll in your chosen program.
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Verify attendance: Confirm your enrollment each month to the VA so benefits can be sent directly to you.
Be sure to apply for MGIB benefits well in advance so that your paperwork can be processed in time for school enrollment. The VA advises allowing 1-3 months for first-time claims.
Can the Montgomery GI Bill Be Used with Other Education Benefits?
The MGIB can be used in conjunction with other education funding sources such as:
- Federal tuition assistance for active duty via Top-Up
- Employer tuition reimbursement plans
- Scholarships, grants, fellowships
- Personal funds
- Loans (but loans aren’t needed with MGIB)
However, you can’t use the MGIB at the same time as certain other VA education benefits like the Post-9/11 GI Bill or Vocational Rehabilitation assistance.
Converting to the Post-9/11 GI Bill
The Post-9/11 GI Bill often provides more generous benefits than the MGIB. Active duty members who qualify for both can elect to convert their MGIB to the Post-9/11 GI Bill.
However, after conversion you cannot revert back to the MGIB. Carefully weigh the pros and cons to determine the best option for your education plans and financial situation.
Is the Montgomery GI Bill Worth It?
For most active duty service members and reservists pursuing higher education, the MGIB is a huge benefit that provides over $36,000+ in tuition, housing, and other college costs.
For career training programs, MGIB funding helps cover tuition, fees, and supplements lost wages through a monthly living allowance.
Given today’s sky-high education costs, the financial assistance afforded through the GI Bill should not be underestimated. The MGIB can be the ticket to making college or career training affordable.
The key is choosing the right program and school – make sure your degree or certificate will lead to meaningful employment afterward. Conduct research on career
Montgomery GI Bill Eligibility
You qualify for the Montgomery GI Bill if:
- You contribute $100 a month for the first 12 months you are on active duty or qualify under Veterans Educational Assistance Program conversion.
- You have completed high school or have an equivalency certificate before you apply for benefits.
- You have served at least two years on active duty.
- If discharged from active duty, you received an honorable discharge.
Check out our detailed explanation of Montgomery GI Bill eligibility for more information.
When to Use Your Montgomery GI Bill
If you are eligible for the Montgomery GI Bill, you can begin using your benefit after two years of service. Those who left the military on Jan. 1, 2013, or later have no time limit to use it.
If you are still on active duty, it’s usually not a good idea to use the Montgomery GI Bill because the Department of Veterans Affairs administers the program differently for active-duty members and veterans.
For instance, a veteran is charged one month of benefits for each $2,438 — the fiscal 2024 GI Bill “payment rate” — in education benefits used.
Example: If a veteran receives $8,533 and the current full-time payment rate is $2,438, divide $8,253 by $2,438. The veteran will be charged 3.5 months of the 36 months of benefits.
However, a service member on active duty who goes to school full time for four months will still be charged four months of benefits even if their tuition is only $1,000. Therefore, it makes sense to use the Montgomery GI Bill on active duty only if your tuition costs are high or you use your “GI Bill Top-Up” benefit.
For those who left the military prior to Jan. 1, 2013, the Montgomery GI Bill has a time limit or expiration date. Once you have left the service, you have 10 years to use it. Any benefit remaining after the 10th anniversary is lost, and you will also lose your $1,200 initial contribution.
Always consult your education service officer before using your GI Bill or taking any college classes. These officials are trained to help you avoid wasting your time and benefits.
Once you begin attending classes, you need to certify your attendance with the VA before you can receive your monthly benefits payments.
Note: Only Department of Veterans Affairs representatives can answer specific questions about your GI Bill account. You can reach them at 888-GIBILL-1.
Although the GI Bill application process can be time-consuming, it is relatively easy and worth the time invested. In most cases, the process will take you four steps or less.
Montgomery GI Bill: Unlocking Your Veteran Education Benefits
FAQ
Does the Montgomery GI Bill pay full tuition?
Your Montgomery GI Bill Payment Rate (How Much You Get): Once you leave active duty, the GI Bill will pay the full payment rate, no matter how much the tuition costs. The only students who get less than that are those who are attending less than half time, who only get enough to cover tuition and fees.
What exactly does the GI bill pay for?
The program may cover tuition and fees, give a monthly housing allowance, a books and supplies stipend, Yellow Ribbon payments, college fund payments, rural benefit payments, and allow eligible immediate family members (spouse and children) to receive the money. It depends on the person’s situation.
How much does the Montgomery Reserve GI Bill pay?
Based on how many classes you’re taking, we’ll pay you up to this amount: full-time enrollment: $481 00 for each full month. 3/4-time enrollment: $360. 00 for each full month. 1/2-time enrollment: $240. 00 for each full month.
Does the MGIB pay for housing?
Term: Up to 36 months of eligibility. GI Bill housing benefit: This benefit is equal to the BAH for an E-5 with dependents living in the school’s ZIP code. It is paid out by the government after 9/11.
What benefits does the Montgomery GI Bill provide?
Service members and Veterans who qualify can get up to 36 months of education benefits through the Montgomery GI Bill (MGIB). These benefits can be used for programs like college, business, technical, or vocational school; apprenticeship or on-the-job training; correspondence courses; remedial, deficiency, or refresher training (in some cases); and flight training.
What is the Montgomery GI Bill active duty program?
The Montgomery GI Bill Active Duty can help you pay for education and training programs. If you’ve served at least two years on active duty, you may qualify for the MGIB-AD program. The amount you get is based on: You usually have 10 years to use your MGIB-AD benefits, but this could change if certain things happen.
Does Montgomery GI Bill pay tuition?
The GI Bill will pay the full amount of your tuition once you leave active duty, no matter how much it costs. The only exception is for students who are taking less than half time, who only get enough to cover tuition and fees. Click here to see the current Montgomery GI Bill payment rates.
What is the Montgomery GI Bill (MGIB)?
The Montgomery GI Bill (MGIB) is an older version of the GI Bill that is very different from the Post-9/11 GI Bill. Click here to learn more about the Post-9/11 GI Bill. You can pay for many things with your Montgomery GI Bill, such as: The Montgomery GI Bill is an education benefit worth over $87,000
Can I use the Montgomery GI Bill if I leave the military?
Those who left the military on Jan. 1, 2013, or later have no time limit to use it. The Montgomery GI Bill isn’t usually a good idea for people who are still in the military because the Department of Veterans Affairs runs it differently for veterans and people who are still in the military.
When can I start using my Montgomery GI Bill?
Click here to see the current Montgomery GI Bill payment rates. Before you can use the Montgomery GI Bill, you have to serve in the military for two years. Those who left the military on Jan. 1, 2013, or later have no time limit to use it.
