Paying for College with Military Benefits: What Veterans and Their Families Should Know

It is November 18, 1998. I step off my bus at Lackland Air Force Base, TX to be instantly "greeted" by Military Training Instructors. Over the next 6 weeks, I earned my stripes and amazing educational benefits. Even 27 years later, my family and I are still benefiting from them.

Your educational benefits depend on when you served, how you served, and any service-connected disabilities, since some benefits follow you into separation or retirement.

Whether you are an active-duty service member, a veteran, or a military spouse or child, you may have benefits you weren't tracking. VA.gov is the source for all of it, and the VA's GI Bill® Comparison Tool can help you see what your benefits will cover! I'll start with the most recent version of the GI Bill® and work through it from there.

The Post-9/11 GI Bill® (Chapter 33)

The Post-9/11 GI Bill® is the most current education benefit available to military members who served on active duty after September 11, 2001. Depending on your time served and type of service, you could be eligible for up to 36 months of benefits.

What it covers

• Tuition and fees: Covers 100% of in-state tuition and fees at public colleges and universities. At a private or foreign school, the benefit caps out at a maximum per academic year, adjusted annually and currently $30,908.34 for 2026/2027.

• Monthly Housing Allowance (MHA): Equivalent to the Basic Allowance for Housing (BAH) for an E-5 with dependents, based on your campus ZIP code. NOTE: even if you are attending an online school, you may be eligible for MHA at a reduced rate.

• Books and supplies stipend: Up to $1,000 per academic year, paid proportionally based on your enrollment.

Post-9/11 GI Bill® bonus: transferring benefits to family members

One of the greatest financial tools available to service members is the ability to transfer educational benefits to a spouse or children. I was able to do this for the remainder of my benefit and it was awesome! For eligibility and rules, see the “Transfer your Post-9/11 GI Bill benefits” section at VA.gov.

Note: if you have any interest in doing this, there is a ticking clock on you right now! Transfers generally have to be requested while you're still serving.

The Yellow Ribbon Program: tag team to the Post-9/11 GI Bill®

If you want to attend a private university, a foreign school, or a public school as a non-resident student, the Yellow Ribbon Program may help you make up the difference in tuition and fees. It's a voluntary program some colleges and universities participate in to help the military community. If you qualify, your school contributes a certain amount toward your extra tuition and fees and the VA matches it. NOTE: Yellow Ribbon schools have limited slots, and depending on your full program costs, you may still have a bill, so research what your school offers.

Yellow Ribbon funding is for veterans (or dependents using transferred benefits) at the 100% benefit tier of the Post-9/11 GI Bill®. Since 2022, active-duty service members and their spouses using transferred benefits can qualify too.

The Montgomery GI Bill®

While the Post-9/11 GI Bill® is the newest offering, the old school Montgomery GI Bill® (MGIB) remains a powerhouse. It was the main funding source I relied on for my graduate education (Go Zags!).

MGIB Active Duty (Chapter 30)

The Montgomery GI Bill Active Duty (MGIB-AD) is designed for veterans who contributed $100 per month during their first year of active duty, as well as those who paid the MGIB Kicker for additional monthly benefits. Instead of paying tuition directly to the school (as with the Post-9/11 GI Bill®), Chapter 30 pays a fixed monthly amount directly to the veteran, who then pays the school.

Those who still had benefits remaining had the option to convert to the Post-9/11 GI Bill® in 2009. If you didn't convert, reach out to the VA to see if you have any entitlements remaining. A recent court ruling could provide you additional benefits.

MGIB Selected Reserve (Chapter 1606)

The Montgomery GI Bill Selected Reserve (MGIB-SR) program is specifically for reserve component (Reserve or Guard) members of the Army, Navy, Air Force, Marine Corps, or Coast Guard. It provides a monthly amount directly to the service member to assist with their educational program.

Veteran Readiness and Employment (Chapter 31)

If you have a service-connected disability that limits or prevents you from working, Veteran Readiness and Employment (VR&E) can help. VR&E is classified more as an employment program than an education benefit. Based on your disability and ability to work, it may fund a college degree, certification, trade training, and/or necessary equipment (e.g. laptops and tools) if required to overcome an employment handicap.

Using VR&E first does not use up your other educational benefits, so you may be able to have VR&E pay for a degree or training without touching your GI Bill®.

Benefits for survivors and dependents (Chapter 35 and Fry Scholarship)

For families of service members who paid the ultimate sacrifice or became permanently disabled based on service, specialized education benefits exist to help ease the financial burden.

Chapter 35 (DEA)

The Dependents’ Educational Assistance program provides a monthly payment directly to eligible spouses and children of veterans who died, are missing in action, or have a 100% permanent and total service-connected disability.

The Fry Scholarship

The Fry Scholarship is available to children and surviving spouses of service members who died in the line of duty on or after September 11, 2001. Fry Scholarship recipients receive full Post-9/11 GI Bill® benefits.

State-level veteran education benefits

Many states offer tuition assistance or waivers for resident veterans and their families. Your state's Department of Veterans Affairs can tell you what local tuition waivers exist, and in some cases you may be able to use both state and federal resources toward your education.

Wrap-up

Managing education benefits is 99% proactive and 1% reactive. Start by determining your eligibility at VA.gov. I can personally attest to the VA's willingness to help: since my retirement on April 1, 2026, they have reached out to me multiple times to see if I needed any assistance.

Next, get your updated Certificate of Eligibility (COE) through VA.gov. Your COE is the key to all your benefits, just like with a VA Home Loan (see VA Loans Explained).

Once you have applied to your school or program, your new best friend will be the School Certifying Official (SCO). Every veteran-approved college has one, usually in the Registrar or Veteran Affairs Office. They submit your enrollment certification to the VA so your payments kick in on time.

NOTE: Military benefits do not disqualify you from federal financial aid, so you can still file your Free Application for Federal Student Aid (FAFSA). Your aid eligibility depends on factors like income and marital status.

Once you are enrolled and good-to-go, keep up with your monthly enrollment verification so your payments keep flowing on time. Questions? Your SCO or the VA can help.

Where a Fruition Mentor fits in

There are a lot of moving parts here. A Fruition Mentor can help you connect the dots and think through how each benefit applies to your situation.

Connect with a Mentor today to start the conversation.

This content is for educational purposes only and does not constitute financial, tax, or legal advice. Please consult a qualified professional for guidance specific to your situation.