FAFSA confusion with VA education benefits for dependent child - help needed

You don't need to report VA education benefits on the FAFSA! They're considered non-taxable income that doesn't count toward your SAI (Student Aid Index) calculation. This is actually specifically addressed in the FAFSA instructions. The benefits your daughter receives through her veteran father's status are protected and won't reduce her eligibility for federal student aid. Make sure you're completing the 2025-2026 FAFSA though, as some of the rules have changed with the new FAFSA rollout.

I went through this exact situation with my son last year!! It was so confusing but dont stress. VA benefits are excuded from FAFSA calculations completely. What chapter benefits is your daughter eligible for? Chapter 35 DEA? Or is it Transfer of Entitlement? Each one works a little differently with financial aid packages.

my sisters kid got va benefits and its actualy an advatage cuz schools dont count it as income in there financial aid packages either most of the time. she got full fafsa and used the va money for her apartment off campus.

To clarify some misconceptions: VA education benefits (including Chapter 35 DEA) are NOT reported on the FAFSA as income. However, you should know that some schools may practice "scholarship displacement" where they reduce institutional aid when they learn about outside funding sources like VA benefits. This varies by institution. Some important points: 1. Never report VA benefits as income on FAFSA 2. Always inform your school's financial aid office about VA benefits 3. Ask specifically how they handle VA benefits in their aid packaging 4. Some states have anti-displacement laws that prevent schools from reducing aid If your daughter is using Chapter 35, she'll need to apply through the VA's website with VA Form 22-5490. This is completely separate from the FAFSA process.

DONT CALL FINANCIAL AID OFFICES!!!! Its IMPOSSIBLE to get through these days. I spent 3 hours last week on hold with my sons school and got disconnected twice. So frustrating and the FAFSA helpline is even worse!!!!

As a financial aid counselor, I need to point out that while VA benefits aren't reported on FAFSA, there's still an important step many families miss. You need to contact EACH SCHOOL your daughter applies to and ask about their specific policies regarding VA benefits. Some schools will count VA benefits when determining institutional aid (scholarships from the school itself), even though federal methodology excludes them. Also, with the recent FAFSA simplification changes, make sure you understand how the new Student Aid Index (SAI) works compared to the old EFC. The treatment of veteran benefits hasn't changed, but many other aspects of need calculation have.

Ask these specific questions: 1. "How does your institution treat Chapter 35 VA education benefits in your institutional financial aid methodology?" 2. "Do you practice scholarship displacement for students receiving VA benefits?" 3. "Is there documentation I should provide about these benefits?" 4. "Are there any institutional scholarships specifically for dependents of veterans?" Make sure to get the name of who you speak with and follow up with an email summarizing what they told you. Financial aid policies can be complex and having written confirmation helps if there are questions later.

also chek if ur state has any extra benefits for vets kids. my neice got a state grant on top of her va benefits!

One more thing to be aware of - if your daughter gets a Pell Grant AND VA Chapter 35, she might have limits on how she can use each funding source. For example, some schools won't let you use Pell for tuition if VA benefits are covering that already. Just make sure she knows what expenses each benefit can cover so she maximizes her aid!! We learned this the hard way :

To address your question about documentation: Yes, keep EVERYTHING. I recommend creating a dedicated financial aid folder with: 1. Screenshots of all FAFSA submissions 2. VA benefit eligibility letters 3. Award letters from each school 4. Emails and notes from conversations with financial aid offices 5. A spreadsheet tracking different aid types and their restrictions The VA and financial aid systems don't always communicate well with each other, so you often become the coordinator between them. Having comprehensive documentation has saved many families from administrative errors.

Just to bring this full circle - the bottom line is that VA education benefits don't count against your FAFSA eligibility. Your daughter could potentially receive full federal financial aid (including Pell Grants if your income qualifies) PLUS her VA benefits. Just be transparent with schools about all sources of funding to avoid complications later. And congratulations to your daughter on her college journey!

I'm so glad you found helpful answers here! As someone who works with veteran families navigating financial aid, I just want to emphasize one more important point: make sure your daughter applies for her Certificate of Eligibility (COE) through the VA well before her first semester starts. Even though the financial aid processes are separate, having that COE ready helps streamline everything with the school's veteran services office. Also, many schools have dedicated veteran coordinators who can be incredibly helpful - they often know the ins and outs of how VA benefits work with other aid better than general financial aid staff. Best of luck to your daughter!