FAFSA counting my Post-9/11 GI Bill benefits toward financial aid - Is this legal?

You are 100% correct. The financial aid office is making a MAJOR error. The Veterans Access, Choice, and Accountability Act specifically prohibits schools from considering VA education benefits as income or financial aid when determining eligibility for federal student aid. This has been reinforced by more recent Department of Education guidance. Print out the law (38 U.S.C. § 3679) and the 2022 guidance memo and bring it to your financial aid office. They need to recalculate your package immediately. This is happening because many financial aid systems weren't properly updated to reflect these changes.

my schools did this to me last semester!! it took me weeks of calling the financial aid office and getting nowhere. the system is rigged against veterans if u ask me

Schools get confused about this ALL the time. What's happening is they're putting your Chapter 33 benefits in the wrong column in their software. It should be listed as a resource but not as financial aid that reduces need. I had the exact same issue at my university and had to keep explaining it to them repeatedly until someone understood the difference.

This is specifically addressed in the Higher Education Act, section 480(c)(2), which excludes veterans' education benefits from being counted as income or resources in determining eligibility for federal financial aid. The issue was further clarified in 2021 guidance that specifically states GI Bill benefits cannot reduce your FAFSA-based aid package. Your school is making a common error in how they're applying your benefits. This typically happens when financial aid officers aren't familiar with the latest regulations regarding veteran benefits. I recommend: 1. Print the relevant law and guidance (HEA section 480(c)(2)) 2. Request a meeting with a senior financial aid officer, not just the front desk staff 3. Ask them to show you exactly how your package was calculated 4. Point out specifically where they've included your Chapter 33 benefits in a way that reduces other aid 5. Request a written recalculation If they resist, mention that you'll need to contact the Department of Education's Federal Student Aid Ombudsman and the VA's GI Bill Hotline about their non-compliance with federal regulations.

I've been trying to get through to the Federal Student Aid helpline for DAYS about a similar issue with my VA benefits. Always on hold for hours and then get disconnected. Has anyone found a better way to actually reach a human at FSA?

wait im confused...isn't the GI Bill supposed to pay for everything anyway? why do u even need financial aid?

UPDATE: I just checked the Department of Education's latest guidance from October 2024 (Federal Student Aid Handbook, Chapter 5), and it specifically addresses this: "When packaging federal student aid, schools must exclude Chapter 33 veterans benefits from estimated financial assistance calculations." The only exception is for AmeriCorps or DoD Tuition Assistance, which are treated differently. So yes, your school is 100% in the wrong here. The guidance is explicit.

My daughter went through EXACT same thing last year!!! The financial aid people kept saying GI Bill (my husband transferred his benefits to her) counts against her Pell Grant eligibility. We fought them for months and they finally admitted they were wrong but only after we got congressman involved!!! The system is completely broken!!!

Just to add one more important point: make sure your school distinguishes between: 1. The Post-9/11 GI Bill housing allowance (which does NOT count as income for FAFSA purposes) 2. The actual tuition benefit (which is paid directly to the school and isn't even relevant to your income calculation) Sometimes schools mistakenly count the MHA (Monthly Housing Allowance) as income on your FAFSA, which is incorrect. Neither component should affect your federal aid eligibility. Also, when you meet with them, ask specifically for them to show you the "COA minus EFC minus other aid" calculation they used. The GI Bill should NOT appear in the "other aid" section of this formula when determining federal aid eligibility.

After reading all this I just checked my own aid package and realized my school might be doing the same thing!! My SAI score qualified me for way more aid than I'm getting. I'm going to call financial aid tomorrow. Thanks for bringing this issue up!

As someone who just went through this exact situation last semester, I can confirm what everyone is saying - your school is absolutely wrong. The 2021 IAVA (Iraq and Afghanistan Veterans of America) advocacy efforts specifically addressed this issue and resulted in clear DOE guidance that Chapter 33 benefits cannot reduce federal aid eligibility. What worked for me was bringing a printed copy of 38 U.S.C. § 3679 and asking them to show me exactly where in their system they entered my GI Bill benefits. Turns out they had it coded as "institutional aid" instead of "veteran benefits" in their software. Once they recoded it properly, my Pell Grant eligibility was restored. Also, document everything in writing. Send a follow-up email after your meeting summarizing what was discussed and what they agreed to fix. This creates a paper trail if you need to escalate further. Good luck - you've got the law on your side!