I signed up for the Montgomery GI Bill (MGIB) when I enlisted in the military. Like many military members and veterans, I haven’t had the chance to use all of my MGIB benefits yet. Part of the reason is because the military has a generous Tuition Assistance (TA) program. I completed a year of college before I enlisted and I used Tuition Assistance to complete my bachelor’s degree while I was on active duty. The only time I touched my GI Bill was to get a top up when I started a Master’s Program (TA only covers up to a certain dollar limit per semester hour and the Master’s classes exceeded that limit). So it was GI Bill to the rescue!
What happens if you don’t use your GI Bill Benefits?
Unfortunately, the Montgomery GI Bill is pretty much a use it or lose it benefit. In most cases you will lose your Montgomery GI Bill Benefits if you don’t use them within 10 years of separating from the military. The Post-9/11 GI Bill expires 15 years after you separate – just one of many reasons why you should make the switch if you are eligible!
If you aren’t eligible for the Post-9/11 GI Bill and your 10 year time limit has already passed, then you may be out of luck. I’m coming up on 4 years since I separated from the USAF, so I have to start making plans if I want to use my GI Bill benefits.
Can You Get a Refund on Your Montgomery GI Bill?
We receive several common questions about GI Bill benefits – primarily about losing GI Bill benefits, transferring GI Bill benefits, and getting a refund for GI Bill benefits if the benefits are not used. In most cases, the answer is no, you cannot get a refund for your GI Bill.
The Montgomery GI Bill usually works like this: You have one chance to buy in to the MGIB when you join the military service. If you opt in, you pay $1,200. Then you can use your MGIB benefits while on active duty or with 10 years from the time you separate from the military (there are some exceptions to the time limits, particularly if you rejoin the service or are recalled to active duty; this will restart your clock). You typically lose any portion of your MGIB that you do not use within the 10 year time limit, and there are usually no refunds.
MGIB Refunds Available for Post 9/11 GI Bill users
There is an exception to the no refund policy for the Montgomery GI Bill. You can get a refund of your $1,200 buy-in if you are eligible for the Post 9/11 GI Bill, you elect to use those benefits instead of the Montgomery GI Bill you bought into, and you use the entire Post 9/11 GI Bill benefits.
From the GI Bill FAQ Page:
Q: Do I get a refund of the $1,200.00 buy-in for the Montgomery GI Bill?
A: Any individual who paid the $1,200.00 buy-in for the Montgomery GI Bill and elects to use the Post-9/11 GI Bill may be refunded a proportional amount if, and after all entitlement under the Post-9/11 GI Bill is used. Individuals who do not use all their entitlement under the Post-9/11 GI Bill will not receive a refund of contributions paid under the Montgomery GI Bill.
How does the Montgomery GI Bill Refund work?
Based on my understanding, you have to be eligible for the Post-9/11 GI Bill, elect to give up your MGIB benefits and switch to the Post-9/11 GI Bill, use all your Post-9/11 GI Bill benefits, and request a refund.
Of course, there is some fine print: You will receive the MGIB refund with your final BAH payment, which means you must be attending an in-residence program (veterans attending college via online eduction are not currently eligible to receive BAH benefits through the Post-9/11 GI Bill program). If you are primarily taking online courses, then I recommend taking at least one class at a local university, even if it doesn’t specifically apply to your program – you can still declare another major. The only purpose of taking that class is to get he $1,200 refund.
The MGIB refund is also prorated based on the amount of Montgomery GI Bill eligibility you have remaining. For example, if you didn’t use any of your Montgomery GI Bill benefits, you should receive the entire $1,200 refund. If you used 1/3 of your MGIB benefits, you may only receive $800 back, etc. However, I am not 100% certain on the formula used, and the VA rep I spoke with on the phone mentioned he would have to run the query on a case by case basis. Please contact the Department of Veterans Affairs for more information specific to your situation.
This is a great benefit for veterans who are eligible for the Post-9/11 GI Bill. Just keep in mind the requirements: you must use 100% of your Post-9/11 GI Bill to be eligible, you must be receiving BAH during your final month of GI Bill eligibility, and you will receive a prorated refund if you used any portion of your MGIB benefits.
Comments
I’ve been attending online college full-time for about 3 months so will I receive back payment once Oct 1st arrives? I’ve been told no today but yes for the last 3 months by VA. The laws are not clear at all.
Jones, I recommend contacting the VA directly as they are the only agency who will be able to look at your profile. Thanks for your service!
I had to switch to from the MGIB to the Post 9/11 GIB before I could transfer it to my son. I put $1200 into the MGIB initially, then another $600 for more coverage almost 20 years later. Will I get a refund of the $1800 I put into the MGIB if my son uses all of the Post 9/11 GIB ? He is attending an in-residence program.
Craig, The GI Bill refunds are limited to the unused portion of the $1,200 contribution. The VA has stated they do not offer refunds on the $600 kicker when the MGIB is transferred to the Post 9/11 GI Bill.
I have not been able to find any information on receiving GI Bill refunds when transferring benefits to family members, so the best I can do is refer you to the VA for that specific question.
Hello! I have almost completed my 4 year enlistment in the army. I payed the 1200 dollars into the Montgomery gi bill. However, I had already planned to opt for the post 911 gi bill. Since I am already paid into the former, am I entitled to dual coverage or at least partial mgib along with my full post 911?
Thank you very much in advanced
Daniel, You can’t use both benefits in conjunction. You can only use one of the other. However, there are ways you can maximize your benefits. If you exhaust all of your Montgomery GI Bill, then you can go back and apply for the Post 9/11 GI Bill and get an additional year of benefits. If you want to start with the Post 9-11 GI Bil, then you can get a refund for hte unused portion of your MGIB once you use all your Post 9-11 benefits.
I’ve been told since bootcamp that after we pay the $1200.00, we can somehow collect that money back and still keep our MGIB. Now is this true? Im in the USN and been in for a year.
From my understanding, the only way to get a refund on the MGIB is to use your entire Post-9/11 GI Bill, and you will receive a refund for the MGIB. If you have used a portion of your MGIB, you can receive a pro-rated refund if you use your entire Post-9/11 GI Bill. I don’t know of any way to keep the MGIB benefits and receive the refund.
It is possible that someone had a misunderstanding of the benefits, and they may have meant that you can still maintain GI Bill benefits and receive a refund of the $1,200, which is true, provided you use the entire Post-9/11 benefit. Hope this helps.
I have PTSD so bad I don’t think I can ever complete school. Having said can I get a refund for my unused portion aprox 34 mo of post 9/11 please feel free to contact my cell 660-353-9635
James, I am sorry to hear about your struggles with PTSD. The only way I am aware of to get a refund for your MGIB is to use all of your Post-9/11 GI Bill. Then the unused portion of your MGIB will be refunded to you. I am unaware of any refunds for to being unable to attend school. You may wish to contact the VA for more information on your options. Best of luck, and thanks for your service.
My G.I. Bill is about to expire but Im still in school. Will I still recieve the monthly payment or will it stop. I’ve been told it continues as long as you are in school.
If i have pell grant for school which pays for the majority of my classes. Will i still get my money from my Montgomery G.I bill
From my understanding, the GI Bill does not affect Pell Grant eligibility. Federal financial aid eligibility is determined by the FAFSA, which doesn’t not count the GI Bill and other VA education benefits. Some states or schools may have different policies, so I encourage you to contact your financial aid department for specific information.
I was using the Post 9/11 Gi bill to attend online school but switched 29 Septmeber to an Oncampus school to get full BAH. For some reason, the VA paid me directly for my tuition instead of my school like they are suppose to in the 9/11 information. Additionally, on my paper they say I qualify for the mgib/mgib-sr kicker which I know I do not because I already been using the Gibill for 8 month. I do not understand and the Va has not been answering the phone for the past 2 days.