Service members who choose to contribute $100 a month to receive the Montgomery GI Bill Active Duty can increase their benefit by making additional contributions through a program called "Buy-Up." Buy-Up allows troops increase their total GI Bill benefit by as much as $5,400. But there are four important facts you need to know to take advantage of this benefit.
Note: Veterans who select to use the Post-9/11 GI Bill are not eligible to use the Buy-Up benefit, even if they already paid into it; the Buy-Up benefit is non-refundable.
1. How It Works
If you're an eligible active-duty service member, the GI Bill Buy-Up program can help you get up to an extra $150 a month added to your standard MGIB "pay rate." This could increase your total benefits by as much as $5,400. The program lets you make contributions in $20 increments up to $600. Each $20 contribution results in a $180 increase to your total 36-month Montgomery GI Bill benefit.
2. The Buy-Up Payment Rates
The following table lists the amounts that your GI Bill monthly payments will increase if you participate in the Buy-Up program.
| If you contribute this additional amount: | You will add this amount to your monthly: | ||||
| Full-Time payment: | 3/4 time payment | 1/2 time payment | less than 1/2 time but more than 1/4 time payment | 1/4 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 |
NOTE: The amounts added for apprenticeship and on-the-job training are less than shown in the above table. For the first six months of training, VA pays 75% of the amount shown. For the second six months of training, VA pays 55%. For the remaining months of training, VA pays 35%.
3. How to Contribute to Buy-Up
To apply, you must have joined the military for the first time after June 30, 1985, still be on active duty, and elect to contribute an amount from $20 to $600 before you separate. To participate, you must contribute through your military branch using form DD-2366-1 to process your request.
Note: The Air Force refers to this program as a GI Bill kicker.
4. How to Use Your Buy-up Benefit
Currently the VA does not have a way to interface with the US Department of Defense to verify if you have made additional contributions. VA asks each servicemember who paid this contribution to submit photocopies of the following:
- DD Form 2366-1
- Your LES's - if deductions are payroll deducted
- DD Form 1131 - Cash Voucher if paid cash in full
These documents provide proof to VA you paid the $600 and will help to process your claim to include the additional amount.
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