MGIB $600 Buy-up

Published May 13, 2009
By Malmstrom Education and Training Center staff

MALMSTROM AIR FORCE BASE, Mont. -- The MGIB $600 Buy Up goes by many different names -- MGIB Increased Benefit, MGIB Extra $600 Deal, MGIB Kicker, MGIB Plus-up, etc. The Department of Veterans Affairs states that the most common referred to term is MGIB Buy up. This program provides an exceptional opportunity to add to your basic Montgomery GI Bill entitlement and should be taken advantage of.

Implemented on May 1, 2001, Public Law 106-419 provides certain eligible active-duty personnel the opportunity to increase Chapter 30 GI Bill benefits by $5,400 simply by making a maximum contribution of $600.

Benefit information:
-- Participants may contribute a maximum of $600.

-- Contributions are not refundable.

-- The minimum contribution is $20 and is made in increments of $4.

-- Unlike the $1,200 pay reduction, the contributions do not offer participants a tax benefit.
-- Contributions increase the monthly Chapter 30 benefit by $1 for each $4 contribution.

-- Contributions can be started and ceased at any time while the participant is on active duty.

-- The maximum $5400 benefit is achieved by contributing $600 and receiving 36 months of full-time benefits.

This example shows how the benefit works:
If an individual contributes $600, the monthly benefit rate will increase by $150. With a basic full-time student rate of $1,320 (based on completing an obligation of three years or more), the monthly rate would then increase to $1,470.

Eligibility: (These requirements cannot be waived)
-- This benefit is ONLY open to those active -duty personnel who first entered active duty on or after July 1, 1985, and who elected to participate in the Montgomery GI Bill.

-- Eligible participants may make contributions at any time while on active duty up to their Date of Separation.

T-- he benefit is NOT open to Vietnam-era (Ch. 34/30 "Rollover") personnel or VEAP convertees, nor will it be available to those who convert to the Post 9/11 GI Bill.

Additional information on this and many other Veterans Education programs are available by visiting http://www.gibill.va.gov/