by Greg Dunn

Created on: April 16, 2009   Last Updated: April 24, 2009

The Montgomery GI Bill for Active Duty, known affectionally as "The GI Bill" to millions of veterans, provides up to 36 months of education benefits to eligible former servicemen and women. Currently, it provides over $45,000 of education benefits, if the serviceman takes a reduction of pay of $1200 and receives an honorable discharge after 3 years of military service. The $1200 reduction is withheld at $100 per month during the first year of enlistment.

The Veteran can receive their MGIB benefits while attending College, Technical or Vocational Schools, Apprenticeship Job Training, Flight Training, Licensing & Certifications, Entrepreneurship and Hi-Tech Training. The monthly paid benefits rates as of August 1, 2008 for institutional training were:

Full time $1321

3 / 4 time $990.75

1 / 2 time $660.50

1 / 4 time $330.25

Rates for different training, categories and classification can be different. The veteran will need to contact the Veteran Administration (VA) or program they are interesting in attending to see exactly what will be paid. Most Schools and Training Centers have a representative in their financial aid department to assist veterans in filing for benefits.

The MGIB is the offspring of the Serviceman's Readjustment Act of 1944. This act, known as the GI Bill of Rights, provided a home loan guaranty and financial assistance for WWII veterans for education and training. The GI Bill allowed many to seek higher education, something that was reserved for only for well-to-do families prior to the 1940's. It was so popular, 49% of 1947 college admissions were made up by veterans.

In 1984, Mississippi Sonny Montgomery introduced a GI Bill that would encourage recruitment into an all volunteer force. This bill would include his name and become known as the Montgomery GI Bill. The Congress has recently passed the Post 9/11 Veteran Assistance Program that modifies and enhances the MGIB.

The new post 9/11 program, being referred as the "GI Bill for the 21st Century" goes into effect August 1, 2009 and could provide over $80,000 in benefits. It will contain provisions to pay full tuitions, $1000 yearly allotment for books and supplies, and housing stipend. The VA has until August 1, 2009 to publish the new rates. The rates will be depended on which state the school is located in.

The GI Bill, through its many forms and variations, has allowed millions of veterans to further their education and will continue to do so in the future. A study in 1988, stated for every dollar spent on the GI BILL, returned seven dollars to the national economy. It is Veteran Benefit, managed by the Veterans Administration based on laws enacted by the Congress. Anyone with questions on the MGIB, should visit www.va.gov or call 1-888-GI-BILL-1.

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