Does The Montgomery GI Bill Pay BAH?

The Montgomery GI Bill (MGIB) is one of the most popular education benefits offered by the Department of Veterans Affairs (VA) to veterans and active duty service members. Many people wonder if the MGIB pays a Basic Allowance for Housing (BAH) like the Post-9/11 GI Bill does.

Overview of MGIB

The MGIB, also known as Chapter 30, provides up to 36 months of education benefits to eligible veterans and servicemembers. It helps pay for degree and certificate programs, flight training apprenticeship/on-the-job training, and correspondence courses.

The MGIB pays a monthly benefit directly to the veteran that can be used to cover tuition, fees, books, and supplies. The payment amount depends on several factors like length of service, enrollment status, and type of training.

MGIB Does Not Pay BAH

The short answer is no – the MGIB does not pay a housing allowance like the Post-9/11 GI Bill’s Monthly Housing Allowance (MHA).

The MHA under the Post-9/11 GI Bill is equal to the military’s Basic Allowance for Housing (BAH) rate based on the student’s school location and enrollment level. It helps cover housing costs while pursuing an approved program.

The MGIB program does not include a housing benefit. The monthly payment rates are intended to cover tuition, fees, books, and supplies. Housing costs need to be paid out-of-pocket by MGIB users.

Key Differences Between MGIB and Post-9/11

There are several key differences between the MGIB and Post-9/11 GI Bill:

• Housing Allowance – The Post-9/11 GI Bill provides a monthly housing stipend based on the BAH rate. The MGIB has no housing allowance.

• Tuition Coverage – The Post-9/11 GI Bill pays up to 100% of in-state tuition and fees directly to the school. MGIB pays a flat rate to the veteran who must pay the school.

• Eligibility – The Post-9/11 GI Bill has stricter eligibility requirements regarding length of service. The MGIB is available after 2 years of active duty.

• Benefit Usage – MGIB benefits expire after 10 years from discharge. Post-9/11 benefits never expire for eligible veterans.

• Transferability – Post-9/11 benefits can be transferred to dependents after 6 years of service. MGIB cannot be transferred.

Monthly Payment Rates

As mentioned above, the MGIB provides a monthly payment to the veteran rather than direct reimbursement of tuition and fees. Here are the current full-time monthly payment rates based on length of service:

• Served 3+ years of active duty: $2,438
• Served 2-3 years of active duty: $1,978
• Served less than 2 years of active duty: $1,701

These rates are lower for part-time enrollment, apprenticeships, on-the-job training, and correspondence courses. The VA makes payments once per month based on verified enrollment.

Using MGIB for Housing Costs

While the MGIB does not directly cover housing, the monthly payments can be used to help pay rent, mortgage, or utilities. However, tuition and fees often consume most or all of the payment amount.

Veterans should budget carefully when relying on the MGIB and have a plan to cover any gaps in housing costs. In some cases, combining the MGIB with financial aid or scholarships may provide enough funding.

Options for Housing Support

Here are some options veterans can explore for help with housing costs while using the MGIB:

• Apply for scholarships, grants, work-study, or federal student aid to supplement MGIB payments.

• Look into employer tuition assistance programs that may free up MGIB funds.

• Consider lower cost school options like community college to reduce tuition expenses.

• Find on-campus housing which may be more affordable than private housing.

• Get a part-time job to earn additional income for housing expenses.

• Apply for VA programs like Vocational Rehabilitation or Veterans Pension based on eligibility.

• Check if eligible for state, non-profit, or private housing assistance programs.

Weighing MGIB vs. Post-9/11

Since the Post-9/11 GI Bill covers tuition and provides a housing allowance, it offers more comprehensive benefits for many veterans. However, it also comes with stricter eligibility requirements.

Veterans who qualify for both programs need to consider their individual circumstances carefully before choosing between the two. Factors like tuition costs, housing plans, school choice, career goals, and length of service all impact the decision.

The MGIB makes the most sense for veterans who served less than 3 years on active duty or attend low-cost schools. The Post-9/11 GI Bill tends to provide greater benefits for those with 3+ years of service pursuing higher cost degrees.

The bottom line is that the MGIB does not pay BAH or directly cover housing expenses like the Post-9/11 GI Bill. Veterans using this program need to plan ahead and budget for housing costs when relying on the monthly MGIB payments. Combining benefits with other income sources, exploring lower cost schooling options, and minimizing expenses can help make the MGIB workable for housing needs.