Post-9/11 GI Bill vs Montgomery GI Bill: Which Should You Choose in 2026?

Choosing between the Post-9/11 GI Bill and Montgomery GI Bill is one of the most important financial decisions veterans make. The right choice can mean tens of thousands of dollars in additional education benefits. This guide breaks down both programs with updated 2026 rates so you can make an informed decision.

Quick Comparison: Post-9/11 GI Bill vs Montgomery GI Bill

Before diving into details, here's the bottom line:

Post-9/11 GI Bill Explained

The Post-9/11 GI Bill (Chapter 33) is the most robust education benefit available to veterans who served after September 10, 2001.

Eligibility

You're eligible for Post-9/11 GI Bill if you served on active duty for at least:

• 90 days (aggregate) after September 10, 2001, OR
• 30 continuous days and were discharged for service-connected disability

Benefit Tiers

Your benefit percentage depends on your total active duty service after 9/10/2001:

What's Covered (at 100%)

Tuition and Fees:

• In-state tuition rates at public schools paid directly to school
• Private school cap of $29,920.95/year (AY 2025-2026 rate)
• Yellow Ribbon Program can cover amounts above the cap

Monthly Housing Allowance:

• Equal to E-5 with dependents BAH rate
• Based on school's ZIP code
• Only paid if enrolled more than half-time
• Prorated by benefit percentage

Books and Supplies:

• Up to $1,000 per academic year
• Prorated by enrollment

One-Time Rural Benefit:

• $500 relocation allowance if moving from rural area

Duration

• 36 months of benefits (full-time equivalent)
• No expiration if you separated on or after January 1, 2013 (Forever GI Bill)
• 15-year time limit from last discharge date only if you separated before January 1, 2013
• Can be combined with other VA education benefits up to 48 months total

Montgomery GI Bill Explained

The Montgomery GI Bill (MGIB, Chapter 30) is the older education benefit that requires a buy-in during service.

Eligibility

You're eligible for MGIB if you:

• Entered active duty after June 30, 1985
• Had pay reduced by $100/month for 12 months ($1,200 total)
• Served continuously for 3 years OR 2 years active + 4 years reserves
• Received honorable discharge

What's Covered

Monthly Payment:

• Flat rate paid directly to you: $2,518/month (2026 rate for full-time, 3+ years service)
• You pay tuition and living expenses from this amount
• Same rate regardless of school cost or location

Duration:

• 36 months of benefits
• 10-year time limit from separation (shorter than Post-9/11)

Buy-In Requirement

The $1,200 MGIB buy-in is non-refundable if you:

• Never use the benefit
• Switch to Post-9/11 GI Bill before exhausting MGIB

Side-by-Side Comparison

Scenario 1: Public University

Example: State university with $10,000/year tuition, living in area with $1,800/month BAH

Winner: Post-9/11 GI Bill

Scenario 2: Trade School / Vocational Program

Example: 6-month welding certification, $5,000 total cost

Winner: Post-9/11 GI Bill (unless housing costs are very low in your area)

Scenario 3: Online-Only Program

Example: Fully online degree program

Winner: Depends—MGIB may provide more cash if you're in a low cost-of-living area taking an inexpensive online program.

Transfer to Dependents

One of the Post-9/11 GI Bill's most valuable features is the ability to transfer benefits to dependents.

Eligibility for Transfer

You can transfer Post-9/11 GI Bill benefits if you:

• Have at least 6 years of qualified service AND
• Commit to serve 4 additional years from the date of transfer
• Are currently on active duty or in the Selected Reserve (you cannot transfer after separation)

Who Can Receive Transferred Benefits

• Spouse
• Children (must be in DEERS and under 21, or 21-22 if enrolled full-time or incapable of self-support)

Transfer Rules

• You choose how many months each dependent receives (up to 36 months total to all dependents)
• Spouse can use benefits immediately
• Children must wait until you've completed 10 years of service OR separated from service
• Children must use benefits before age 26
• You must be on active duty or in Selected Reserve to initiate transfer (request through milConnect)

MGIB Transfer?

The Montgomery GI Bill cannot be transferred to dependents. This is a major advantage of the Post-9/11 GI Bill for family planning.

The $600 Buy-Up (Kicker)

If you contributed to MGIB, you may have been offered the $600 buy-up option. This increased your MGIB monthly payment.

Here's the important part: If you switch to Post-9/11 GI Bill after buying up, you can receive an additional monthly payment on top of Post-9/11 benefits. This is one of the few ways to get more than the standard Post-9/11 GI Bill payment.

The buy-up kicker adds approximately $150/month to your Post-9/11 GI Bill benefits.

Yellow Ribbon Program

The Yellow Ribbon Program is a partnership between the VA and participating schools to cover tuition costs above the Post-9/11 GI Bill cap.

How It Works

1. School agrees to contribute a certain amount
2. VA matches that amount
3. Together they cover the gap between the Post-9/11 cap and actual tuition

Eligibility

• Must be at 100% Post-9/11 GI Bill eligibility
• Must be enrolled in a participating school
• School must have available Yellow Ribbon spots

Example

Private university tuition: $55,000/year Post-9/11 cap: $29,921 Gap: $25,079

If school contributes $12,540 and VA matches $12,540: Your cost: $0

State Education Benefits That Supplement

Many states offer additional education benefits that work alongside federal GI Bill:

Illinois Veterans Grant

• Free tuition at Illinois public universities
• Can be used after exhausting GI Bill
• 120 credit hours

Texas Hazlewood Act

• 150 credit hours at Texas public schools
• Can transfer unused hours to children
• Covers tuition and most fees

California CalVet Fee Waiver

• Waives tuition at California public universities
• Available to dependents of disabled/deceased veterans
• Can be used in addition to GI Bill

Other Notable Programs

Decision Matrix: Which GI Bill is Right for You?

Choose Post-9/11 GI Bill If:

• You're attending a traditional college or university
• You want housing allowance paid separately
• You might transfer benefits to dependents
• Your school participates in Yellow Ribbon
• You live in a high cost-of-living area
• You're attending in-person classes

Choose Montgomery GI Bill If:

• You're taking only online courses in a low-cost area
• You prefer maximum flexibility in how you spend funds
• The program cost is very low (MGIB flat rate may exceed costs)
• You won't be transferring benefits to family
• You're attending a non-accredited program not covered by Post-9/11

Consider Both If:

• You have the MGIB buy-up kicker (get the bonus with Post-9/11)
• You want to maximize total education (use one, switch to other)

How to Switch Between Programs

You can switch from MGIB to Post-9/11 GI Bill, but not back.

To Switch:

1. Complete VA Form 22-1990 (new application)
2. Indicate you're electing Post-9/11 GI Bill
3. Acknowledge the irrevocable decision
4. Lost MGIB contribution ($1,200) is not refunded

Frequently Asked Questions

Can I use both GI Bills?

Not simultaneously, but you can use months from both (up to 48 months total combined benefits).

What happens to my MGIB money if I use Post-9/11?

The $1,200 buy-in is not refunded if you switch. However, if you had the buy-up kicker, you receive additional monthly payments.

Does my disability rating affect GI Bill benefits?

Your disability rating doesn't change your GI Bill eligibility or payment amounts directly. However, veterans with service-connected disabilities have an additional option: Vocational Rehabilitation and Employment (VR&E, Chapter 31). VR&E can provide education benefits plus additional support services, and in some cases, it's more valuable than the GI Bill. You can use VR&E and then switch to GI Bill, potentially maximizing your total education benefits.

What is VR&E (Chapter 31) and should I consider it?

Vocational Rehabilitation and Employment (VR&E) is a separate program for veterans with service-connected disabilities who face employment barriers. Benefits include:

• Tuition and fees paid to the school
• Monthly subsistence allowance (often higher than GI Bill housing allowance)
• Books, supplies, and equipment provided
• Job placement assistance
• No time limit on benefits (unlike MGIB's 10-year deadline)

If you have a service-connected disability rating of at least 10%, consider VR&E before using your GI Bill. You can use VR&E first, then your GI Bill for additional education.

Can I use GI Bill for graduate school?

Yes, both GI Bills can be used for graduate programs, professional certifications, and even some non-degree programs.

Key Differences Summary

Understanding the core differences helps you decide which GI Bill works best for your situation:

Next Steps

1. Check your eligibility tier at VA.gov
2. Calculate your benefits using the GI Bill Comparison Tool
3. Research state benefits that supplement federal GI Bill
4. Verify Yellow Ribbon status for your target schools
5. Consider dependent transfer if you have remaining service obligation (must be done while serving)

Take Action Now

Whether you choose Post-9/11 or Montgomery GI Bill, you've earned significant education benefits. The key is to:

• Act before deadlines: If you separated before January 1, 2013, your Post-9/11 GI Bill expires 15 years after separation
• Plan for family: If you want to transfer benefits to dependents, you must do so while still serving
• Stack benefits: Combine federal GI Bill with state education programs to maximize your total benefit

Your service earned these benefits. Use them wisely to invest in your future and your family's future.

Related Resources

• State Veteran Benefits: Property Tax Exemptions and More
• 2026 VA Disability Compensation Rates
• VA Home Loan Benefits Guide