Case Studies Showing Differences Between the Post-9/11 GI Bill and the Reserve GI Bills

United States Department of Veterans Affairs

Overview

The Post 9/11 GI Bill offers some new benefits to eligible Reservists and National Guard members, including:

Tuition and fees (paid directly to the school)
A housing allowance (based on the zip code where the school is located)
Funds for books & supplies (up to $1000 a year)
Longer period to exercise benefit (15 years from release date following minimum of 90 days on active duty)

For many eligible participants, the Post 9/11 GI Bill is a better alternative than other education benefit programs, such as the Montgomery GI Bill-Selected Reserve and the Reserve Education Assistance program (REAP). However, the best program for an individual depends on several factors, including the type of education or training he or she plans to take and the amount of money or other benefits received under each program.

Scenarios Showing Differences Between the Post-9/11 GI Bill and REAP Where the Veteran Paid an Additional $600 “Kicker”

We have developed several scenarios to show how this information can be used. In these scenarios, we make these assumptions:

The service member involved is a member of the National Guard, who was activated for a total of 18 months after 9/10/2001 and plans to pursue a degree program full time.
Based on length of post-9/10/2001 active duty service, the National Guard member is entitled under the Post-9/11 GI Bill to 70% of tuition and fees, 70% of the monthly housing allowance, and 70% of the $1000 annual book stipend ($500 for 2 credits during the 4-month term).
The first six scenarios assume that the highest in-state tuition & fees for the enrollment period (four months) is $5,800 (scenario #7 assumes low tuition & fees of $3,065.)
The housing allowance under the Post 9/11 GI Bill is based on the zip code where the university is located; for these scenarios, the full allowance (100%) is assumed to be $1000 per month. The National Guard member would be entitled to 70% or $700/month.
Under REAP, the monthly educational assistance allowance for full-time institutional training and one+ year of consecutive service is $762.60.
The Guard member paid an additional $600 while on active duty to increase his benefit rate, which provides $150 additional each month. For more information click here.
Each scenario is based on a 4-month academic term.

Scenario #1: Public University / In-State Tuition & Fees
Scenario #2: Public University / Out-of-State Tuition & Fees
Scenario #3: Public University / Veteran Pays No Tuition or Fees
Scenario #4 Private University / Tuition & Fees Higher than State Tuition Cap
Scenario #5: Private University / Distance “on-line” program
Scenario #6: Public University / Low Tuition & Fees

Scenario #1: Public University / In-State Tuition and Fees
Program	Post 9/11 GI Bill	REAP
Highest in-state tuition & fees	$5,800	N/A
70% of highest in-state tuition	$4,060	N/A
Tuition & Fees Charged by University	$4,000	$4,000
VA Pays on Veteran’s Behalf	$2,800	$0

Housing allowance ($700/month for 4 months)	$2,800	N/A
REAP monthly rate ($792.60/month for 4 months)	N/A	$3,170.40
Books & supplies (70% of $500 stipend for 12 credits)	$350	N/A
$600 Buy-Up Program ($150/month for 4 months)	N/A	$600

Benefit Paid Directly to Veteran	$3,150	$3,770.40
Tuition & Fees Paid by Veteran	$0	$4,000
Net to Veteran	$3,150	-$ 229.60

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Scenario #2: Public University / Out-of-State Tuition & Fees
Program	Post 9/11 GI Bill	REAP
Highest in-state tuition & fees	$5,800	N/A
70% of highest in-state tuition	$4,060	N/A
Tuition & Fees Charged by University	$10,850	$10,850
VA Pays on Veteran’s Behalf	$4,060	$0

Housing allowance ($700/month for 4 months)	$2,800	N/A
REAP monthly rate ($792.60/month for 4 months)	N/A	$3,170.40
Books & supplies (70% of $500 stipend for 12 credits)	$350	N/A
$600 Buy-Up Program ($150/month for 4 months)	N/A	$600

Benefit Paid Directly to Veteran	$3,150	$3,770.40
Tuition & Fees Paid by Veteran	$6,790	$10,850
Net to Veteran	-$3,640	-$7,079.60

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Scenario #3: Public University / Veterans Pay No Tuition or Fees
Program	Post 9/11 GI Bill	REAP
Highest in-state tuition & fees	N/A	N/A
Tuition & Fees Charged by University	$0	$0
VA Pays on Veteran’s Behalf	$0	$0

Housing allowance ($700/month for 4 months)	$2,800	N/A
REAP monthly rate ($792.60/month for 4 months)	N/A	$3,170.40
Books & supplies (70% of $500 stipend for 12 credits)	$350	N/A
$600 Buy-Up Program ($150/month for 4 months)	N/A	$600

Benefit Paid Directly to Veteran	$3,150	$3,770.40
Tuition & Fees Paid by Veteran	$0	$0
Net to Veteran	$3,150	$3,770.40

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Scenario #4: Private University / Tuition & Fees Higher than State Tuition Cap
Program	Post 9/11 GI Bill	REAP
Highest in-state tuition	$5,800	N/A
70% of highest in-state tuition	$4,060	N/A
Tuition & Fees Charged by University	$10,000	$10,000
VA Pays on Veteran’s Behalf	$4,060	$0

Housing allowance ($700/month for 4 months)	$2,800	N/A
REAP monthly rate ($792.60/month for 4 months)	N/A	$3,170.40
Books & supplies	$350	N/A
$600 Buy-Up Program ($150/month for 4 months)	N/A	$600

Benefit Paid Directly to Veteran	$3,150	$3,770.40
Tuition & Fees Paid by Veteran	$5,940	$10,000
Net to Veteran	-$2,790	-$6,229.60

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Scenario #5: Public University – Distance “on-line” Program
Program	Post 9/11 GI Bill	REAP
Highest in-state tuition	$5,800	N/A
70% of highest in-state tuition	$4,060	N/A
Tuition & Fees Charged by University	$4,000	$4,000
VA Pays on Veteran’s Behalf	$4,000	$0

Housing allowance	N/A	N/A
REAP monthly rate ($792.60/month for 4 months)	N/A	$3,170.40
Books & supplies(70% of $500 stipend for 12 credits)	$350	N/A
$600 Buy-Up Program ($150/month for 4 months)	N/A	$600

Benefit Paid Directly to Veteran	$ 350	$3,770.40
Tuition & Fees Paid by Veteran	$0	$ 4,000
Net to Veteran	$ 350	-$ 229.60

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Scenario #6: Public University / Low Tuition & Fees
Program	Post 9/11 GI Bill	REAP
Highest in-state tuition	$3,065	N/A
70% of highest in-state tuition	$4,060	N/A
Tuition & Fees Charged by University	$3,065	$3,065
VA Pays on Veteran’s Behalf	$3,065	$0

Housing allowance ($700/month for 4 months)	$2,800	N/A
REAP monthly rate ($792.60/month for 4 months)	N/A	$3,170.40
Books & supplies (70% of $500 stipend for 12 credits)	$350	N/A
$600 Buy-Up Program ($150/month for 4 months)	N/A	$600

Benefit Paid Directly to Veteran	$3,150	$3,770.40
Tuition & Fees Paid by Veteran	$0	$3,065
Net to Veteran	$3,150	$ 705.40

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Comparison

To further help in the decision process, we have prepared a table showing side-by-side comparison of benefits under the Post-9/11 GI Bill, MGIB-SR, and REAP. More detailed information about each program can be found here.

If you wish to use this table to help guide your decision, it will be useful to have the following data on hand:

Length of active service performed after 9/11 and the percentage of benefit to which you are entitled (e.g., 36 months – 100%) Click here to determine the percentage of Post-9/11 GI Bill benefit payable to you based on your military service
Type of education or training desired, such as degree program in an Institution of Higher Learning (IHL), apprenticeship, job training, technical or vocational courses, flight training, certification tests, distance learning courses.
The in-state and out-of-state tuition and fees charged for full-time study at the school you wish to attend (assume that full time is 12 credit hours during the enrollment period of August 15 – December 15.) See here for a chart showing the maximum tuition & fees payable for each state.
Eligibility for other tuition assistance, including Federal Tuition Assistance, State Tuition Assistance for national guard (varies from state to state), Federal Student Loans, scholarships and loans. [Note: VA education benefits are payable without respect to other types of financial assistance, such as Pell Grants and Stafford Loans.]

Education Benefits for Reservists and Guardsmen
Program	Post 9/11 GI Bill	Montgomery GI Bill - Reserves	REAP
Eligible participants	Reservists and National Guard with Post-9/11 service	Members of Army Reserve, Navy Reserve, Air Force Reserve, Marine Corps Reserve, Coast Guard Reserve, and the Army National Guard and the Air National Guard	National Guard and Reservists called to active duty in response to war or federal emergency callup (DoD and DHS will determine eligibility)
Benefits	Up to 36 months for education undertaken after August 1, 2009	Up to 36 months (4 regular school years) of education benefits	36 months at a percentage of MGIB - Active Duty 3-year or more enlistment rate; not more than 48 months of entitlement under any combination of VA educational programs after September 10, 2001.
Length of service required	At least 36 cumulative months after 9/10/01 for 100%; 90 aggregate days for 40%; 30 continuous days with disability discharge	6 year obligation after June 30, 1985	A minimum of 90 consecutive days
Additional commitment required	None	None as long as they remain a member in good standing of the Selected Reserves	None
Time limit for use of benefit	15 years after separation or discharge	eligibility ends once you leave the service OR 14 years from date of eligibility - an exception to this rule exists if you are mobilized, in this case your eligibility may be extended for the amount of time you are mobilized PLUS four months.	No fixed time period; a member called to active service from the Selected Reserve is eligible by continuing to serve in the Selected Reserves; if released from the Selected Reserves for disability, eligible for 10 years
Types of training that can be taken	Only for programs taken at a degree-granting Institution of Higher Learning (college or university)	College, Business (undergraduate or graduate) Non-college degree courses Technical or vocational courses Certificate programs Correspondence courses On-the-job training Apprenticeship Flight training	All education programs, with the exception of: National Examination / Testing Reimbursement
Payments Directly to Service Member
Monthly housing allowance	Paid monthly at the E-5 with dependents BAH rate; amount is based on the zip code of the school. Click here for BAH by school’s zip code	N/A	N/A
Educational Assistance Allowance	N/A	Up to $329 monthly pay rate for full-time institutional training (effective October 1, 2008)	Based on time activated, a percentage (40, 60, or 80%) of the Montgomery GI Bill – Active Duty benefit (which is up to $1,321 per month for full-time institutional training)
Annual Book stipend	Up to $1,000	N/A	N/A
Tutorial Assistance	Up to $1,200	Up to $1,200	Up to $1,200
Licensing/ certification tests	Up to $2,000	Up to $2,000	N/A
Other Payments
Tuition & fees (paid directly to school)	Not to exceed the state’s highest undergraduate in-state tuition. Click here for a preliminary table listing maximum tuition & fees for each state.	N/A	N/A