Montgomery GI Bill for Active Duty (MGIB)

Category 1 - Service After June 30, 1985
To be eligible under Category 1, veterans must: have entered active duty for the first time after June 30, 1985; and not have declined MGIB in writing upon entry onto active duty. The military reduces their pay by $100 a month for the first 12 months of active duty. These pay reductions are not refundable. Eligible servicemembers can use the MGIB benefit while on active duty after completing two continuous years of service. Veterans can use the MGIB benefit if they: completed three continuous years of active duty, or two continuous years of active duty if they first signed up for less than three years or have an obligation to serve four years in the Selected Reserve (the 2x4 program) and enter the Selected Reserve within one year of release from active duty.

Every veteran must establish GI Bill eligibility for under one of the following four categories:

Category 1 | Category 2 | Category 3 | Category 4

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Servicemembers or veterans are barred from eligibility under Category 1, however, if they received a commission as a result of graduation from a service academy or completion of an ROTC scholarship. However, such a commission isn't a bar if the applicant:

received a commission after becoming eligible for MGIB benefits (including completing the minimum service requirements for the initial period of active duty)
received a commission after Sept. 30, 1996, and received less than $3,400 during any one year under ROTC scholarship

Under Category 1, applicants are also barred from benefits if they declined MGIB because they received repayment from the military for education loans. If they did not decline MGIB and received loan repayments, the months served to repay the loans will be deducted from MGIB entitlement. Individuals who received loan repayments for one period of active duty can still be eligible based on another qualifying period of active duty as long as they did not decline MGIB upon entering active duty.

Early Separation

Veterans who did not complete the required period of service may still be eligible under Category 1 if discharged for one of the following reasons:

convenience of the government-with more than 30 continuous months of service for an obligation of three or more years, or 20 continuous months of service for an obligation of less than three years
service-connected disability
hardship
a medical condition diagnosed prior to joining the service
a condition that interfered with performance of duty
a reduction in force (in most cases)

Servicemembers planning to separate early should ensure their separation reasons are coded properly to avoid disqualification for MGIB benefits.

>> go to MGIB - Category 2

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