Montgomery G.I. Bill VS. the Post 9/11 G.I. Bill: Comparing the Changes

On June 30, 2008, President Bush signed into law the new G.I. Bill, also known as the 9/11 G.I. Bill. This was the first complete overhaul of the G.I. Bill since the Montgomery G.I. Bill was introduced after World War II. That version was designed to allow enough money for military members who serve a certain amount of time in combat or in service (and invest $100 a month for 12 months) to have enough money to complete a four-year degree. However, the financial situation since then has changed dramatically and many military members were finding it more and more difficult to afford certain schools without paying out-of-pocket. Revision had been called for, and after a few years of tinkering, the new G.I. Bill was signed. This made people like me, a veteran taking classes with the Montgomery G.I. Bill, very happy. Here are some highlights as to who the new G.I. Bill affects, what the benefits are, and when they will be enacted.

Tuition. Under the Montgomery G.I. Bill, your tuition (distributed by the Veterans Administration) was paid to you and in turn you paid the qualified school you attended. The 9/11 G.I. Bill will pay the institution directly. In addition, the G.I. Bill will pay an amount that maximizes at the cost of the most expensive school in the state that you reside in. Let's say the maximum tuition at a school in your state is $2900 per class. If you attend a qualified school where classes cost $2600 and you were only receiving $1100 in Montgomery G.I. Bill benefits, you would have to pay the difference out of pocket. The 9/11 Bill will pay the institution the $2600 directly.

Additional Supporting Funds. The Montgomery G.I. Bill offered little to no funding for books and living expenses associated with going to college. The 9/11 Bill will offer a lump sum amount up to $1,000 at the beginning of the year to cover books and a monthly housing allowance that is equal to an E-5 living in the same zip code as the school. This is applicable to full time students only.

Transferring Bill Benefits to Dependents. The often-overlooked dependents of military members will now have a chance to use the G.I. Bill benefits given to their sponsors. Active duty military members who are serving as of August 1, 2009, will be allowed to transfer those benefits. The details of what the requirements are will be forthcoming but the Montgomery G.I. Bill made no such allowance.

Current G.I. Bill users. Those who are currently using the Montgomery G.I. Bill will receive an interim increase of 20% in G.I. Bill rates effective August 1, 2008.

So if you still have time to enroll into the G.I. Bill program, I suggest you take a real hard look at this new program and see if these benefits could apply to you.