How Much Does The Montgomery GI Bill Pay? A Complete Guide

The Montgomery GI Bill is one of the most popular education benefits offered by the Department of Veterans Affairs (VA). But if you’re considering using the GI Bill for college or training, you may be wondering – how much does the Montgomery GI Bill actually pay?

In this complete guide, we’ll cover everything you need to know about Montgomery GI Bill payment rates. We’ll break down the monthly rates for full-time and part-time enrollment, explain how your length of service impacts payments, and provide real-world examples of GI Bill amounts.

A Brief Overview of the Montgomery GI Bill

First, let’s start with a quick refresher on the Montgomery GI Bill. Officially known as the Montgomery GI Bill Active Duty (MGIB-AD), this program provides education benefits to veterans who enlisted in the military and contributed money from their paychecks to fund the benefit.

The MGIB-AD has been around since 1984 and has helped millions of veterans attend college, vocational schools, flight training and other programs.

To qualify for the full benefit you generally need to have an honorable discharge after serving at least 3 consecutive years of active duty. Veterans with less service may receive reduced monthly rates.

Now let’s look at the all-important question: how much does the MGIB actually pay for school?

Monthly Payment Rates for Full-Time Enrollment

If you qualify for the full MGIB benefit here are the monthly payment rates you can expect if enrolled full-time

• Colleges and Universities: $2,358 per month
• Vocational Programs: $2,358 per month
• On-the-Job Training: Up to $1,768.50 per month

These rates are accurate as of October 1, 2023 for the 2023-2024 school year. Rates are typically adjusted each year on October 1.

To qualify for the full monthly rate at a college or university, you need to be enrolled in 12 or more credit hours. At a vocational school, full-time is generally 22 hours or more per week.

Now let’s look at monthly rates for part-time enrollment.

Monthly Payment Rates for Part-Time Enrollment

The MGIB also provides monthly benefits if you attend school part-time. Here are the part-time rates:

• 3/4 Time: $1,768.50 per month
• 1/2 Time: $1,179 per month
• Less than 1/2 Time: Up to $1,179 per month (or tuition/fees, whichever is less)
• 1/4 Time or Less: Up to $589.50 per month (or tuition/fees, whichever is less)

At most colleges, 3/4 time status equals 9-11 credit hours, 1/2 time is 6-8 hours, and 1/4 time is 3-5 hours.

So for example, if you took just one 3-credit course, you would qualify for the 1/4 time monthly rate of $589.50 under the MGIB.

Your actual payment would be prorated if your term of enrollment is shorter than a full month.

MGIB Payment Examples for 2 Years of Active Service

The payment rates above apply to veterans who served at least 3 consecutive years on active duty. If you served less, your payments will be reduced.

Here are some examples of MGIB monthly rates for a veteran who served 2 continuous years on active duty:

• Full-time college enrollment: $1,913 per month
• 3/4-time vocational enrollment: $1,434.75 per month
• 1/2-time on-the-job training: $956.50 per month

So while payment amounts are less, you can still receive a solid education benefit with just 2 years of active duty service.

Kicker and Buy-Up Can Increase Your Monthly Rates

There are two main programs that allow you to increase your monthly MGIB benefit:

• College Fund/Kicker – Additional $150 to $350 per month
• $600 Buy-Up Program – Raises rate by up to $150 per month

The kicker is an extra incentive some branches offer when you enlist. The buy-up program lets you contribute up to an extra $600 during your first 12 months of service to receive higher payments.

If you qualified for either of these programs, the extra money is added to your normal MGIB monthly payment.

For example, if you received a $300 kicker, your full-time college rate would be $2,358 from the MGIB, plus $300 kicker, for a total payment of $2,658 per month.

MGIB Has Annual and Aggregate Limits

While the MGIB covers most veterans for the typical length of a bachelor’s degree, there are lifetime limits on how much you can receive:

• Annual limit: $27,376 for the 2022-2023 year
• Aggregate limit: $1,257 for each month of active duty service

For example, if you served for 3 years, your aggregate limit would be around $46,000. This is still usually enough for a full undergraduate degree.

If you reach either the annual or lifetime limit, you can no longer receive MGIB payments. So it pays to carefully plan out your degree.

Summary of MGIB Monthly Payments and Limits

To wrap things up, here’s a quick summary of MGIB payment amounts and limits:

• Full-time: Up to $2,358 per month
• Part-time: $589.50 to $1,768.50 per month
• Kicker/Buy-Up: Can add $150 to $350 extra per month
• Annual Cap: $27,376
• Lifetime Cap: Around $46,000 for 3 years of service

So in general, the MGIB provides a robust education benefit that covers most or all tuition at public colleges along with a monthly housing stipend. By planning carefully and using kicker/buy-up, you can maximize your monthly payments.

Just be sure to verify your actual benefit amount by contacting the VA, since length of service and other factors impact your personal rate.