How to Use the Buy-Up Program to Increase Your GI Bill Monthly Check

Key Takeaways

• The $600 Buy-Up Program increases your monthly Montgomery GI Bill Active Duty (MGIB-AD) payment.
• For every $1 contributed, you receive up to $3 more in total education benefits.
• The maximum $600 contribution can add up to $5,400 in additional benefits over 36 months.
• The Buy-Up only applies to MGIB-AD, not the Post-9/11 GI Bill.
• You must enroll and contribute while on active duty through your service branch.

What Is the GI Bill $600 Buy-Up Program?

The GI Bill $600 Buy-Up Program is an optional program available to service members using the Montgomery GI Bill Active Duty program. It allows you to contribute up to $600 while on active duty in exchange for increased monthly education benefit payments later.

This program is sometimes called the “MGIB Buy-Up” or “$600 kicker.” Unlike bonuses or enlistment incentives, this increase is funded directly by your personal contribution through payroll deduction or lump sum payment to your finance office.

The key benefit: for every $20 you contribute, the VA increases your monthly full-time MGIB benefit by $5. With the maximum $600 contribution, that equals a $150 increase per month.

Who Is Eligible for the Buy-Up Program?

Eligible Service Members

• Active duty members enrolled in Montgomery GI Bill Active Duty (Chapter 30)
• Members who paid the initial $1,200 MGIB contribution
• Service members still on active duty at the time of Buy-Up enrollment

Who Is Not Eligible

• Post-9/11 GI Bill (Chapter 33) users
• Montgomery GI Bill Selected Reserve (Chapter 1606) users
• Veterans who have already separated and did not contribute on active duty

Once you leave active duty, you cannot retroactively enroll in the Buy-Up Program. The decision must be made before separation.

How Much More Will You Receive? Full ROI Breakdown

The Buy-Up Program offers one of the highest returns on investment available to military members. Below is a breakdown assuming full-time enrollment for 36 months of benefits.

Contribution Monthly Increase Total Extra Over 36 Months Net Gain $200 $50 $1,800 $1,600 $400 $100 $3,600 $3,200 $600 $150 $5,400 $4,800

At the maximum contribution, you invest $600 and potentially receive $5,400 more in education payments. That is a 9x total return and $4,800 in net gain.

If you attend school part time, the increase is prorated according to your training time.

How the Monthly Increase Is Calculated

The formula is straightforward:

• For every $20 contributed, receive $5 added to your full-time monthly MGIB rate.
• Maximum $600 contribution equals $150 per month increase.
• The additional amount is paid monthly, alongside your standard MGIB benefit.

Example: If the standard MGIB full-time rate is $2,300 per month, and you contributed the full $600, your payment would increase to $2,450 per month.

Step-by-Step: How to Enroll in the Buy-Up Program

Step 1: Confirm MGIB Enrollment

Verify that you elected Montgomery GI Bill Active Duty during basic training and that you paid the $1,200 contribution.

Step 2: Contact Your Finance or Personnel Office

Each branch handles Buy-Up contributions through its finance system:

• Army: Through your installation finance office
• Navy: Via MyNavy Career Center or command career counselor
• Air Force: Finance office or virtual Military Personnel Flight
• Marine Corps: Installation personnel administration center
• Coast Guard: Servicing Personnel Office

Step 3: Elect Contribution Amount

You may contribute in increments up to $600 total. Payments are typically handled via payroll deduction, though some branches allow lump sum payments.

Step 4: Keep Documentation

Retain LES statements or confirmation paperwork showing the contribution. The VA automatically factors this into your MGIB payments when you apply for benefits.

What Happens If You Switch to the Post-9/11 GI Bill?

This is one of the most misunderstood areas.

The Buy-Up increase only applies to Montgomery GI Bill payments. If you later switch to the Post-9/11 GI Bill:

• The Buy-Up does not increase your housing allowance or tuition payment.
• You may receive a prorated refund of unused Buy-Up contributions.
• The refund is paid after exhausting Post-9/11 GI Bill entitlement.

This means the Buy-Up has the greatest value for members who plan to use MGIB for most or all of their education benefits.

Real-World Example

Scenario: A service member contributes the full $600. After separation, they attend a four-year university full time for 36 months using MGIB.

• Standard MGIB total: 36 × monthly rate
• Buy-Up increase: $150 × 36 = $5,400
• Total net gain after $600 investment: $4,800

Even if the veteran uses only 24 months of benefits full time, the increase equals $3,600. That is still a $3,000 net gain.

Common Misconceptions About the Buy-Up Program

“It increases Post-9/11 GI Bill payments.”

False. It only increases MGIB payments.

“You can enroll after leaving active duty.”

False. Contributions must be made while on active duty.

“It extends your 36 months of entitlement.”

False. It increases the monthly payment amount, not the number of months.

“It is not worth it.”

Mathematically, the return is significant for those who plan to use MGIB. However, if you are certain you will use only the Post-9/11 GI Bill, the benefit is limited to potential refund value.

MGIB vs Post-9/11 GI Bill: Which Makes the Buy-Up Worthwhile?

Feature MGIB-AD Post-9/11 GI Bill Monthly Housing Paid to You Yes Yes Tuition Paid to School No Yes Buy-Up Applies Yes No

The Buy-Up is often most beneficial if:

• You plan to attend lower-cost schools.
• You want full control of the monthly payment amount.
• You want maximum cash flow flexibility.

Is the $600 Buy-Up Worth It?

For most eligible service members who intend to use the Montgomery GI Bill, the answer is yes. The potential 9x return is difficult to match with other guaranteed government-backed programs.

The key considerations are:

• Your likelihood of using MGIB instead of Post-9/11
• Your expected enrollment status
• Your timeline before separation

Because enrollment must occur on active duty, this is a decision best evaluated early in your career with your education office or finance counselor.

Frequently Asked Questions about the GI Bill $600 Buy-Up Program

What is the GI Bill $600 Buy-Up Program?

The GI Bill $600 Buy-Up Program lets you pay up to $600 while on active duty to increase your Montgomery GI Bill Active Duty (MGIB-AD) monthly payment. For every $20 you put in, your full-time MGIB payment goes up by $5 per month, up to an extra $150 per month.

Who is eligible for the $600 Buy-Up?

You are eligible if you are on active duty, enrolled in the Montgomery GI Bill Active Duty (Chapter 30), and have paid the standard $1,200 MGIB contribution. You are not eligible if you only use the Post-9/11 GI Bill, use the MGIB Selected Reserve (Chapter 1606), or have already separated without paying into Buy-Up while on active duty.

How much extra money can you get from the $600 Buy-Up?

If you contribute the full $600 and use 36 months of full-time MGIB benefits, you can receive up to $5,400 more in total payments, or $150 extra per month. At 24 months full time, you would receive $3,600 extra. Part-time training pays a smaller, prorated increase.

How do you enroll in the $600 Buy-Up Program?

You enroll while on active duty by confirming you have MGIB-AD, then working with your finance or personnel office. You choose how much to contribute, up to $600, usually through payroll deduction or a lump sum. Keep your Leave and Earnings Statements or other proof of contribution for your records.

Does the $600 Buy-Up increase Post-9/11 GI Bill benefits?

No. The Buy-Up only increases your Montgomery GI Bill Active Duty monthly payment. If you switch to the Post-9/11 GI Bill, the Buy-Up does not raise your tuition or housing payments, though you may receive a prorated refund of unused Buy-Up contributions after you use up your Post-9/11 benefits.

Is the $600 Buy-Up Program worth it for you?

The Buy-Up can be a strong value if you expect to use MGIB-AD for most or all of your education and plan to attend at least part time. You pay in once, while on active duty, and receive higher monthly payments later. If you are sure you will only use the Post-9/11 GI Bill, the benefit is limited to a possible partial refund of your contribution.