$600 Buy-up Rates for Montgomery GI Bill or REAP

$600 Buy-up Rates for Montgomery GI Bill or REAP

The Montgomery GI Bill (MGIB) provides up to 36 months of education benefits to eligible Service members and Veterans for programs such as: college, business, technical, or vocational school; apprenticeship / on-the-job training; correspondence courses; remedial, deficiency, and refresher training (in some cases); and flight training. You usually have 10 years to use your MGIB benefits, but the time limit can be fewer or more years depending on the situation.

Buy-Up Program Quick Facts

  1. The $600 buy-up is only applicable for Montgomery GI Bill or REAP.

  2. l or REAP (Reserve Educational Assistance Program).

  3. Veterans who use the Post-9/11 GI Bill are not eligible to use the Buy-Up benefit, even if they already paid into it.

  4. Contribute $20 to $600 while still on active-duty and get as much as $150 more per month added to your Montgomery GI Bill or REAP payments.

  5. A $600 maximum contribution increases total benefits by as much $5,400.

  6. Each $20 contribution is another $180 in benefits.

  7. The Air Force program is called the GI Bill Kicker.

  8. Buy-Up table listing GI Bill monthly payment increases if participating in the Buy-Up program.

The following table lists the amounts by which your GI Bill monthly payments will be increased if you participated in the buy-up program. The $600 buyup is only applicable for Montgomery GI Bill or REAP.

If this amount paid Add this amount to Full Time payment Add this amount to ¾ time payment Add this amount to ½ time payment Add this amount to less than ½ time but more than ¼ time payment Add this amount to ¼ time payment
$20 $5.00 $3.75 $2.50 $2.50 $1.25
$40 $10.00 $7.50 $5.00 $5.00 $2.50
$60 $15.00 $11.25 $7.50 $7.50 $3.75
$80 $20.00 $15.00 $10.00 $10.00 $5.00
$100 $25.00 $18.75 $12.50 $12.50 $6.25
$120 $30.00 $22.50 $15.00 $15.00 $7.50
$140 $35.00 $26.25 $17.50 $17.50 $8.75
$160 $40.00 $30.00 $20.00 $20.00 $10.00
$180 $45.00 $33.75 $22.50 $22.50 $11.25
$200 $50.00 $37.50 $25.00 $25.00 $12.50
$220 $55.00 $41.25 $27.50 $27.50 $13.75
$240 $60.00 $45.00 $30.00 $30.00 $15.00
$260 $65.00 $48.75 $32.50 $32.50 $16.25
$280 $70.00 $52.50 $35.00 $35.00 $17.50
$300 $75.00 $56.25 $37.50 $37.50 $18.75
$320 $80.00 $60.00 $40.00 $40.00 $20.00
$340 $85.00 $63.75 $42.50 $42.50 $21.25
$360 $90.00 $67.50 $45.00 $45.00 $22.50
$380 $95.00 $71.25 $47.50 $47.50 $23.75
$400 $100.00 $75.00 $50.00 $50.00 $25.00
$420 $105.00 $78.75 $52.50 $52.50 $26.25
$440 $110.00 $82.50 $55.00 $55.00 $27.50
$460 $115.00 $86.25 $57.50 $57.50 $28.75
$480 $120.00 $90.00 $60.00 $60.00 $30.00
$500 $125.00 $93.75 $62.50 $62.50 $31.25
$520 $130.00 $97.50 $65.00 $65.00 $32.50
$540 $135.00 $101.25 $67.50 $67.50 $33.75
$560 $140.00 $105.00 $70.00 $70.00 $35.00
$580 $145.00 $108.75 $72.50 $72.50 $36.25
$600 $150.00 $112.50 $75.00 $75.00 $37.50

Montgomery GI Bill (MGIB) Fact Sheet

An Army Reserve Service member on drill status may be eligible for Montgomery GI Bill-Selected Reserve, Chapter 1606, benefits if:

One of these must be true. You:

  • Have a 6-year service obligation (you agreed to serve 6 years) in the Selected Reserve, or

  • Are an officer in the Selected Reserve and you agreed to serve 6 years in addition to your initial service obligation

Note: Your obligation must have started after June 30, 1985, or for some types of training after September 30, 1990.

And all of these must also be true. You:

  • Complete your initial active duty for training (IADT), and

  • Get a high school diploma or certificate of equal value, like a High School Equivalency Diploma or GED, before finishing IADT ( Note: You can’t use 12 hours toward a college degree to meet this requirement), and

  • Stay in good standing while serving in an active Selected Reserve unit

    (Note: You’ll still be eligible if you’re discharged from Selected Reserve service due to a disability that was not caused by misconduct)

The benefits can be used until 14 years from the Service member's beginning date of eligibility or until the date they leave the Selected Reserve if eligibility for this program began on or after October 1, 1992. If eligibility began before October 1, 1992, ability to use this program ends 10 years from the Service member's beginning date of eligibility or on the date they leave the Selected Reserve. An exception to this rule is when a Service member is mobilized (recalled to active duty from reserve status) eligibility may be extended for the amount of time mobilized plus an additional four months. If a Service member has been mobilized on or after 9/11/01 for at least 90 consecutive days, the Service member may be eligible for Chapter 1607 benefits. However, The National Defense Authorization Act of 2016 ended REAP on November 25, 2015. Some individuals will remain eligible for REAP benefits until November 25, 2019, while others are no longer eligible for REAP benefits. Important: The Department of Defense (DoD) determines eligibility. The Veterans Affairs (VA) doesn't have the authority under the law to make or reverse eligibility determinations. The Department of Veterans Affairs (VA) recommends that all Service members file a claim for benefits to receive a formal decision on their eligibility.

If a Service member has been mobilized on or after 9/11/01 for at least 90 consecutive days, the Service member may be eligible for Chapter 1607 benefits. However, The National Defense Authorization Act of 2016 ended REAP on November 25, 2015. Some individuals will remain eligible for REAP benefits until November 25, 2019, while others are no longer eligible for REAP benefits. Important: The Department of Defense (DoD) determines eligibility. The Veterans Affairs (VA) does not have the authority under the law to make or reverse eligibility determinations. The Department of Veterans Affairs (VA) recommends that all Service members file a claim for benefits to receive a formal decision on their eligibility.

Benefit Highlights

The Montgomery GI Bill-Selected Reserve (MGIB-SR) provides up to 36 months of education benefits to eligible Service members. Generally, Service members have 14 years from the date they become eligible to use the benefits. If a Service member leaves, the Selected Reserves benefits end the day the Service member separates. An exception to this applies and Service members retain eligibility for MGIB-SR benefits for the full 14 year period if: 1) a Service member's Reserve or National Guard unit was deactivated, or a Service member was involuntarily separated from Reserve or National Guard service (such as a reduction in force), during the period October 1, 1991 through September 30, 1995; and/or October 1, 2007 to September 30, 2014 or 2) a Service member was discharged from Selected Reserve service due to a disability not caused by misconduct.

Education programs that qualify under the GI bill include:

  • attending classes that lead to a college degree like an Associate's, Bachelor's, Master's or Doctorate Degree

  • vocational programs that lead to a degree or certificate

  • accredited independent study such as online or internet training

  • correspondence training (55% of approved costs)

  • on-the job (OJT) or apprenticeship training - reimbursed at:

    • 75% of the fulltime GI Bill rate for the first six months of training

    • 55% for the second six months

    • 35% for the remainder of the training

    • Service member also receives a salary from employer

  • flight training - up to 60% of approved charges (must have private pilot license and valid medical certificate)

  • licensing & certification up to $2,000.00 per exam - pass or fail

  • entrepreneurship classes offered through the Small Business Development Center or the National Veterans Business Development Center

  • high cost tech courses - up to 60% of the charges may be reimbursed

  • Tuition Assistance: "Top-Up"

Payment Rates are based on a number of factors, including:

  • length of Service member's original enlistment

  • type of training taken

  • amount of classes Service member is enrolled in

  • participation in the GI Bill $600.00 buy-up program

  • participation in a college fund program

  • rates determined by Congress which usually change each fiscal year

Current Payment Rates:

The following rates are effective as of 1 October 2020:

For Service members enrolled in institutional training:

  • Full time: $397.00 per month

  • ¾ time: $297.00 per month

  • ½ time: $199.25 per month

  • Less than ½ time: $99.25 per month

For Service members enrolled in apprenticeship and on-job training:

  • First six months of training: $297.75 per month

  • Second six months of training: $218.35 per month

  • Remaining pursuit of training: $138.95 per month

For Correspondence and Flight: Entitlement charged at the rate of one month for each $397.00 paid

Cooperative: $397.00

Correspondence Payments: 55% of the approved charges

Flight Payments: 60 % of the approved charges

Veterans Affairs (VA) Notification:

  • For colleges, vocational schools, independent study, flight, correspondence, and high-tech training, the school reports Service member's enrollment to the VA.

  • For OJT and apprenticeship training, Service member's employer or union notifies the VA.

  • For licensing & certification tests, Service member must report his enrollment and provide the VA with a receipt, his test results, and written permission for VA to view his records.

  • For entrepreneurship classes the Small Business Development Center of the National Business Development Center will report Service member's enrollment to the VA.

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