Does The Montgomery GI Bill Pay For Housing?

The Department of Veterans Affairs (VA) offers several education benefit programs to help veterans and their families go to college or get job training. One question that many veterans have is whether the Montgomery GI Bill includes a housing allowance.

An Overview of the Montgomery GI Bill

The Montgomery GI Bill, which is also called Chapter 30, helps veterans pay for school if they joined the military after June 30, 1985, and paid $100 a month for 12 months during their first year of service. This program gives up to 36 months of school benefits that can be used to get an undergraduate or graduate degree, flight training, correspondence training, certification tests, on-the-job training or an apprenticeship, and more.

The main benefits provided by the Montgomery GI Bill include

• A monthly education benefit paid directly to the veteran
• A one-time $1200 contribution to an education fund after completing 2 years of service
• Up to $2,000 reimbursement for licensing and certification test fees

The monthly education benefit is paid directly to the veteran as opposed to the school. The payment amount depends on several factors like length of service, education level, and training hours.

The Montgomery GI Bill Does Not Provide a Housing Allowance

One question that people often have about the Montgomery GI Bill is whether it includes a housing allowance along with the monthly benefit for school.

The answer is no, the Montgomery GI Bill does not pay for housing.

The monthly education payment is a flat rate amount that does not include any additional allowances for housing, books, or other expenses.

This sets the Montgomery GI Bill apart from some other VA education programs like the Post-9/11 GI Bill, which does include a monthly housing allowance based on the zip code of the school.

The lack of a housing allowance is an important factor for veterans to consider when deciding which VA education program to use. For some, the housing allowance provided by the Post-9/11 GI Bill can make a huge difference in affordability.

Why Doesn’t The Montgomery GI Bill Pay For Housing?

Because of the following, a housing allowance was not added to the Montgomery GI Bill’s educational benefits:

• It was created before other benefit programs with housing allowances – When the Montgomery GI Bill was first instituted in 1984, housing allowances were not commonly offered yet as part of VA education benefits. Other programs like the Post-9/11 GI Bill came later and included housing as a way to expand benefits.

• It provides a flat rate payment – The Montgomery GI Bill was designed to provide veterans with a flat monthly education payment. Adding variable housing rates would have made the benefit more complex to administer.

• To encourage enrollment in other programs – By not offering housing payments, the Montgomery GI Bill may encourage some veterans to enroll in programs like the Post-9/11 GI Bill that provide a housing allowance and other enhanced benefits. However, the Montgomery GI Bill still makes sense for some veterans.

• Cost considerations – Providing housing allowances in addition to the education benefit would have significantly increased the overall cost of the program. Policymakers may have excluded housing in order to control costs.

Alternatives For Housing Assistance

Even though the Montgomery GI Bill does not directly provide money for housing, there are some alternative options veterans can consider:

• Save part of the monthly payment for housing – Carefully budgeting the monthly education benefit is one way to set aside money for housing costs. The payment amounts will be consistent each month.

• Utilize tuition assistance – Active duty military members who qualify for Montgomery GI Bill can use tuition assistance while serving to help pay for school. This allows them to save more of their education benefit for housing after separating from service.

• Take higher course loads – Taking more classes per term results in a higher total education payment, which provides more money to put toward living expenses.

• Use student housing – Enrolling in a college or university with affordable student housing on campus can help reduce overall housing costs.

• Apply for financial aid – Fill out the FAFSA to see if you might qualify for additional grants, loans, or work-study opportunities to help cover housing.

• Get a part-time job – Having a steady part-time job for supplemental income can provide money needed for rent, groceries, and other expenses.

While not ideal, there are ways to work around the lack of housing benefits under the Montgomery GI Bill. Veterans will need to be smart with their finances and explore all options available to them.

Key Takeaways

• The Montgomery GI Bill does NOT provide any payment for housing expenses. It only pays a flat rate monthly education benefit.

• Housing allowances are offered under the Post-9/11 GI Bill but were not included in the original Montgomery GI Bill program established in the 1980s.

• To help with housing costs, veterans can carefully budget payments, utilize tuition assistance while on active duty, take more classes, live in student housing, apply for financial aid, and work part-time.

• Consider both academic fit and financial benefits when deciding between using the Montgomery GI Bill versus other education programs like the Post-9/11 GI Bill.

The lack of housing payments under the Montgomery GI Bill is disappointing to some veterans but doesn’t mean the program lacks value. Thousands of veterans have successfully leveraged the Montgomery GI Bill to earn degrees and certifications without receiving any money directly for housing. With careful planning, it is possible to make the most of this education benefit.