Does the GI Bill Pay for College? A Complete Guide to Using Your Benefits

For millions of veterans and service members the GI Bill is a life-changing benefit that makes college affordable. Since 1944 these education programs have helped generations go to school and enter promising careers. But how exactly does the GI Bill pay for higher education? And what steps do you need to take to access these benefits?

In this complete guide, I’ll explain everything you need to know about using the GI Bill to earn a college degree

GI Bill Background and Benefits

First, let’s start with some background. The original GI Bill was passed in 1944 to help WWII veterans transition to civilian life. It provided money for college, unemployment benefits, and home loans. Over 16 million vets used the education benefit to attend colleges and vocational programs.

The bill has been updated several times over the decades. The Post-9/11 GI Bill, which was made in 2008 for veterans who served after September 10, 2001, is the most recent version.

The Post-9/11 GI Bill provides:

• Full tuition coverage for in-state public schools
• Up to $26,042.81 per year for private or foreign schools
• A monthly housing allowance
• Up to $1,000 per year for books and supplies

These benefits can be used to earn undergraduate or graduate degrees at colleges, universities, and even vocational programs. The bill really opens the doors to higher education for veterans.

Am I Eligible for the GI Bill?

Active duty members and veterans may qualify for Post-9/11 benefits. The eligibility criteria are:

• Serving at least 90 aggregate days on active duty after 9/10/01
• Receiving an honorable discharge

The amount of benefits you can get is based on how long you were on active duty:

• 100% of benefits: 36 months or more of active duty service
• 90% of benefits: At least 30 months, but less than 36 months
• 80% of benefits: At least 24 months, but less than 30 months
• 70% of benefits: At least 18 months, but less than 24 months
• 60% of benefits: At least 12 months, but less than 18 months
• 50% of benefits: At least 6 months, but less than 12 months
• 40% of benefits: At least 90 days, but less than 6 months

The Marine Gunnery Sergeant John David Fry Scholarship or Survivors’ and Dependents’ Educational Assistance may also help the spouses and dependents of veterans who have died or become disabled.

How to Apply for the GI Bill

Applying for your education benefits is straightforward. You can submit an application online, in-person, or by mail.

The key information you’ll need includes:

• Your military background and service dates
• College or program you want to attend
• Bank account details for direct deposits
• Education history

Once approved, you’ll receive a Certificate of Eligibility confirming your benefits. Provide this to your school’s certifying official when you enroll.

I recommend applying early so your benefits are sorted out before classes begin. The process can take some time.

Using the GI Bill While on Active Duty

You can start tapping your GI Bill even if you’re still serving. But carefully consider the pros and cons first.

The main downside is you won’t receive the housing allowance if you pursue college while active duty. That allowance can provide thousands per year. You essentially give up a major benefit.

However, using some GI Bill now lets you get a head start on earning your degree. Just weigh options carefully and budget accordingly.

Transferring Benefits to Dependents

If you don’t need GI Bill benefits for yourself, you may be able to transfer them to your spouse or children. Eligibility rules for transferring benefits include:

• Having at least 6 years of service
• Being able to serve 4 additional years after transfer
• Designated dependents being enrolled in DEERS

Transfers must be completed while serving. Once separated, you can no longer transfer benefits.

How Much Does the GI Bill Pay for College?

One major advantage of the GI Bill is it reduces your out-of-pocket college costs significantly. Here’s a breakdown of what’s covered:

Tuition and Fees

For public in-state schools, the GI Bill pays 100% of tuition and fees. The benefit covers up to $26,042.81 per year for private colleges in the 2022-2023 school year. Rates are adjusted annually.

If costs exceed the yearly cap at a private or foreign school, look into the Yellow Ribbon program. This allows schools to share those additional expenses with the VA.

Housing Allowance

You’ll receive a monthly housing stipend based on the Basic Allowance for Housing for an E-5 with dependents in your school’s area. Exact rates vary by location.

Online students receive a reduced national average allowance of around $955/month.

Books and Supplies

Get up to $1,000 per year for textbooks, laptops, and other supplies.

Tutorial Assistance

If you need help with coursework, you can receive up to $100 per month for a tutor.

Maximize Your Benefits

Follow these tips to make the most of your GI Bill benefits:

• Compare schools and programs on the GI Bill Comparison Tool
• Attend an in-state public school to maximize coverage
• Find an approved Yellow Ribbon school if costs will exceed the cap
• Take at least one course on campus for full housing allowance
• Use scholarships, grants, work study to supplement costs
• Start benefits after active duty when possible
• Apply for tuition assistance while serving

The GI Bill opens doors for veterans to access top-notch higher education. Manage your benefits wisely and they will pay off tremendously down the road.