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EDUCATIONAL SERVICES

COLLEGE STUFF

FINANCIAL AID

MONTGOMERY GI BILL - SELECTED RESERVE

 

The MGIB-SR (Chapter 1606) program provides up to 36 months of full-time education benefits which may be used for degree and certificate programs, flight training, apprenticeship/on-the-job training, and correspondence courses. Remedial, deficiency, and refresher courses may also be approved under certain circumstances.

For example, say you want to run your own charter boat service.  You can use the MGIB-SR to get reimbursed for many (if not most) OUPV (operator of uninspected passenger vessel) courses.  Check out the list of course providers on the Coast Guard's web site and then check the Department of Veterans' Affairs (DVA) web site to see if the provider has been approved for GI Bill benefits.

 

Benefits are payable as soon as you become eligible (usually when you graduate from "A" school) and are enrolled in an approved program.  You're eligible for these benefits as long as you're in the Selected Reserve.  That is, you may not use them after you leave the Selected Reserve.

The maximum monthly amount you can receive under the Ch. 1606 GI Bill is currently $356 (FY13).  For a look at current dollar amounts, depending on how many credits you're taking in school, see the table farther down on this page.

This is your money, which gets sent directly to your bank account once you've activated your benefit and filed a claim and is paid as long as you verify that you're maintaining the required course load.  The amount that gets deposited in your account depends on how many credits you're taking.  The terms used by the VA to determine how much money you're entitled to are full-time, three-quarter-time, less than half-time, or half-time.  For a standard semester, here's how those terms translate in to credit load:

Full-time

≥12 credits

¾-time

9-11 credits

½-time

6-8 credits

Less than ½-time

4-5 credits

¼-time

1-3 credits

You can use it to pay for the following types of programs:

You were automatically enrolled in this program (at no charge to you) when you went through boot camp.  However, you're not eligible to use your benefit until you've completed all eligibility requirements.  These include completing your initial active duty for training (IADT) which, in most cases, is "A" School.

After you've met all those requirements, you will receive a Notice of Basic Eligibility (NOBE, DD form 2384-1).  Your "A" School should automatically prepare the NOBE for you.  However, ask the Servicing Personnel Office (SPO) for "A" school students about it some time in the last two weeks at "A" school.  Without the NOBE you can't apply for GI Bill benefits.  If your "A" school doesn't provide you with a NOBE before you graduate, you'll need to contact the Reserve GI Bill person at PSC and request one.

Once  you have the NOBE, you should immediately activate your benefit (see below).

The amount of money the VA will pay you for your GI Bill benefit will be based on the amount of time you’re in school (see table below).  If you’re going to college, this “training time” translates into credits.

Training time

monthly rate*

Full-time (12 or more credits)

$356.00

¾-time (9 - 11 credits)

$266.00

½-time (6 - 8 credits)

$176.00

¼-time or less (1 - 5 credits)

$89.00

* FY13 rates

 

Other GI Bill Options for Reservists

 

Coast Guard Reservists who are called to active duty under title 10 of the U.S. Code can become eligible for MGIB-AD benefits if they serve continuously for two or more years.

As a general rule, those who serve less than three continuous years on active duty are eligible for benefits at the rates shown on the first table below.  And those who serve three or more continuous years on active duty are eligible for payment at the rates in the second table below.

Training time

monthly rate*

Full-time (12 or more credits)

$1,270.00

¾-time (9 - 11 credits)

$952.50

½-time (6 - 8 credits)

$635.00

Less than ½-time, more than ¼-time (4 - 5 credits)

$635.00

¼-time or less (1 - 3 credits)

$317.50

 

Training time

monthly rate*

Full-time (12 or more credits)

$1,564.00

¾-time (9 - 11 credits)

$1,173.00

½-time (6 - 8 credits)

$782.00

Less than ½-time, more than ¼-time (4 - 5 credits)

$782.00

¼-time or less (1 - 3 credits)

$391.00

* FY13 rates

To find out exactly which rate you're eligible for (based on your specific situation) you'll need to enroll in the MGIB-AD (by completing the DD form 2366, "Basic Enrollment" form) and pay the required $1,200, then activate your benefit and inquire of the DVA which rate you're entitled to.

 

Yet another possibility is REAP.  If you were called to active duty in response to and and served in a contingency operation (as determined by Congress or the president) for 90 days or more since 11 September 2001 you may be eligible for the Reserve Education Assistance Program (REAP).  If you are, you can receive monthly payments of up to 80% of the MGIB-AD rate.

 

Transferring Benefits to Dependents

 

Congress has enacted a law which authorizes the armed forces to offer their personnel the option of transferring unused MGIB-SR benefits to dependents.

However, although this law took effect on 30 June 2008, none of the services have not made this option available and for a number of reasons it's unlikely they will.

 

Certification & Licensing Exams

 

After you complete a vocational course or other non-academic program, you may want to become certified by one of the many organizations in the country.  Your GI Bill benefit will pay up to $2,000 per exam for as many exams as you want or need to take to achieve your certification or licensing goals as long as you're eligible to receive GI Bill benefits.

Following up on the example above, say you've completed the 100-ton license exam preparation course and are ready to take the licensing exam.  You can receive up to $2,000 for each test you take – no matter how many times it takes you to pass.  AND the money to pay for these exams doesn't affect your 36-month entitlement in any way.

This is true for other licensing and certification programs, as well: the DVA will pay for the course and as many certification/licensing exams as you need to take (up to $2,000 per test): law school and the bar exam, an MBA degree and CPA license, cosmetology school and the licensing exam, culinary school and certification exams, etc.

 

Activating Your Benefit

 

Before you can receive payments under the MGIB-SR, you must first apply for your benefit (also called activating it).  Here's a list of things you'll need to do to do this:

* If you don't have a NOBE because you didn't attend an "A" school (e.g., you entered the Coast Guard through REBI) or for any other reason, you'll need to contact the Reserve GI Bill person at PSC and request one.

 

The Department of Veterans' Affairs (DVA) may take as much as six months to process your request.  Once the DVA has processed your application, it will send you a Certificate of Eligibility by mail.

Once you've activated your benefit, you can either use or not use it immediately.  Remember: you can use your benefit as long as you're in the Coast Guard Reserve.

Once you decide to start using your benefit for college, take a copy of your letter of eligibility to the office at your school which deals with veterans'/military/GI Bill stuff.  Someone in this office will verify the number of credits you're taking (or, if you're in a vocational program, how much time you're enrolled for) and send this information to the DVA.

The DVA will typically start paying you within a couple weeks after your school submits the verification form to the DVA.
 

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Last Modified 02/27/2013