Making the Most of Your GI Bill Benefits: A College Budgeting Guide

If you’re planning to pursue higher education after military service, the Post-9/11 GI Bill may be a valuable asset. From covering tuition to providing housing allowances, the bill’s benefits can offer strong financial support. However, making the most of these benefits takes smart planning and budgeting.

Understanding Your GI Bill Benefits

Your GI Bill education and training benefits apply to many valuable learning opportunities. What’s more, a servicemember can transfer all or part of their unused benefits to their spouse or dependent family members.

Even if you’re not sure what your path looks like, it’s important to understand the benefits you’re entitled to. Let’s break down what’s available to help you make informed choices about your education.

Post-9/11 GI Bill: The Basics

The GI Bill (Chapter 33) was signed into law in 2008, one of the biggest expansions of education benefits since the original GI Bill of 1944. Created to support a new generation of servicemembers in the wake of September 11, this bill is adjusted to address today's education costs.

The Department of Veterans Affairs (VA) administers the GI Bill benefits. Its role is to ensure that veterans, servicemembers and their families receive the financial assistance they need for college tuition, training programs and career counseling.

• Tuition and fees. Servicemembers who qualify for the full benefit are covered the cost of public in-state tuition and fees. The rates for private and foreign schools are capped and updated annually, so you’ll need to review your benefits each year.
• Monthly housing allowance. Servicemembers who are in school more than half time receive a monthly housing allowance based on the cost of living where the school is located (equal to the military BAH for an E-5 with dependents).
• Moving allowance. You may qualify for a one-time payment to help cover costs to move from a rural area to your chosen school. This is available for people living in counties with 6 or fewer people per square mile who are moving at least 500 miles for school.
• Books and supplies. You’ll also receive a stipend of up to $1,000 for necessary books and school supplies (per academic year), paid to you at the start of each term.

The Montgomery GI Bill and Other Programs

While the GI Bill is one of the best education resources for many servicemembers, there are other GI Bill programs that may be more applicable to your situation. The Montgomery GI Bill benefits, for instance, may be more applicable for those looking to pursue a part-time education. Consider the following if you qualify and they apply to your situation:

• Montgomery GI Bill (Active Duty): This may work better for part-time students.
• Montgomery GI Bill (Selected Reserve): A resource available for members of the Reserves.
• Army National Guard Kicker: A supplement to the Montgomery GI Bill that provides additional monthly payments in return for serving in a critical unit.
• Veteran Readiness & Employment: Support for those with a service-connected disability.
• Yellow Ribbon Program: Participating schools may cover costs above GI Bill limits.
• Veteran Work-Study Allowance Program: This program offers additional allowance in return for working at a VA-related approved site.

A Closer Look at GI Bill Benefit Rates

Your GI Bill benefit rates aren’t one-size-fits-all—they’re based on your active-duty service time and the type of program you choose. The longer you’ve served, the higher percentage of benefits you’ll receive. For example, if you qualify for 100% of the benefits and attend a public in-state school, you’ll receive full tuition and fees coverage, maximum monthly housing allowance for your school’s location and the complete books and supplies stipend.

Here’s how the rates break down:

• 100% benefit: 36 months or more of active duty.
• 90% benefit: 30-35 months of active duty.
• 80% benefit: 24-29 months of active duty.
• 70% benefit: 18-23 months of active duty.
• 60% benefit: 6-17 months of active duty.
• 50% benefit: 90 days to 5 months of active duty.

Planning for Your GI Bill Benefits

While you’re entitled to the education benefits offered by the GI Bill as a servicemember, it’s still important to plan ahead. You should be aware of caveats such as tuition caps for certain private colleges or foreign schools if you’re considering them. 

Start by checking your eligibility percentage and understanding exactly what your benefits will cover. Then, focus on building a budget that creates financial stability while using your benefits to their fullest.

How to Budget to Maximize Your Education Benefits

Let’s talk about making your money work for you while in school. Even with strong education and training benefits, smart budgeting helps you stay on track and handle any unexpected expenses that arise during your college journey.

1. Start with a clear picture

Successful budgeting starts with reviewing all your financial information. Start by calculating your expected GI Bill benefits and any school costs that might exceed these benefits. Look into the monthly living expenses for your school’s area as costs can vary by location. Make sure to also account for any other income sources you might have along with your regular monthly bills.

2. Consider all your college costs

College expenses go beyond tuition and books, especially when enrolling in a training program. You’ll need to plan for extra academic expenses like lab fees, special equipment and technology needs. Don’t forget about transportation costs, whether that’s daily commuting or occasional trips home.

In addition, some programs may require professional attire for internships or presentations, and many students join clubs or participate in campus activities that have their own costs. Don’t forget to account for any scholarships or financial aid that might help offset these college costs.

3. Choose a budgeting method

There’s no one-size-fits-all strategy for budgeting—the best method is the one you’ll actually use. The popular 50/30/20 rule works well for many students, where 50% of your income goes to needs, 30% to wants and 20% to savings. If you prefer more control, try the envelope method by setting specific spending limits for different categories.

4. Build your emergency fund

It’s always good to have some money set aside for emergencies: laptops can crash, vehicles may need repairs, etc. An emergency fund may help provide financial stability while in school. Try to set aside enough money to cover 3-6 months of basic expenses. Keep these funds accessible but separate from your daily spending money. 

5. Track and rebalance your college budget

The best budget plan evolves with your needs throughout your college journey. Take a few minutes each month to review your spending and see if your budget is working as planned. You might find that some expenses, like textbooks or meal plans, cost more or less than expected. That’s normal—the key is to catch these differences early and adjust your budget.

Budget for College With Navy Federal Credit Union

At Navy Federal, we’re committed to helping servicemembers like you achieve your education goals. With your GI Bill benefits and a solid financial plan, you’re well-equipped to start your college journey. We’re here to support you every step of the way—from managing your education benefits to keeping your budget on track. 

Ready to take the next step? Learn more about how our personal financial management counselors can help you make the most of your military education benefits. If your GI benefits don’t cover what you need, Navy Federal could help you make up the difference with a private student loan.