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!

I'm dealing with something similar right now and this thread has been incredibly helpful! My school initially told me the same thing about my GI Bill benefits reducing my aid eligibility. After reading through all the responses here, I printed out the relevant laws and regulations everyone mentioned and scheduled a meeting with my financial aid director. The key was asking them to walk me through their exact calculation step by step. Sure enough, they had my Chapter 33 benefits listed under "estimated financial assistance" which was directly reducing my Pell Grant eligibility. Once I showed them the Federal Student Aid Handbook guidance that explicitly states VA education benefits should be excluded from this calculation, they admitted the error and agreed to recalculate my package. For anyone else facing this issue, I'd recommend being persistent but professional. Most financial aid staff genuinely want to help but aren't always up to date on the latest regulations regarding veteran benefits. Having the specific citations ready made all the difference in getting a quick resolution. Thank you to everyone who shared their experiences and legal references - this community is amazing for helping veterans navigate these complicated systems!

This is such an important issue that more veterans need to know about! I just wanted to add that if you're having trouble getting through to your financial aid office or they're being resistant to making changes, you can also file a complaint with your state's higher education agency. Most states have consumer protection divisions that handle complaints about financial aid practices at colleges and universities. Also, keep in mind that this error could affect multiple semesters, not just your current one. If they've been incorrectly calculating your aid for previous terms, you may be entitled to retroactive adjustments. Make sure to ask about reviewing your entire enrollment history when you meet with them. The fact that so many people in this thread have experienced the exact same issue shows how widespread this problem is. It's frustrating that veterans have to become legal experts just to get the aid they're entitled to, but at least we have a strong community here to help each other navigate these challenges!

I just wanted to thank everyone who contributed to this thread - the information shared here has been absolutely invaluable! As a veteran who's navigating the FAFSA process for the first time, I had no idea about these specific protections for GI Bill benefits. Reading through all these experiences, it's clear that this is a systemic issue affecting veterans nationwide. The fact that multiple people have dealt with the exact same miscoding problem suggests that financial aid software systems and training programs haven't been properly updated to reflect the current laws. For anyone else facing this issue, I'm bookmarking all the legal references mentioned here: - 38 U.S.C. § 3679 (Veterans Access, Choice, and Accountability Act) - Higher Education Act section 480(c)(2) - Federal Student Aid Handbook Chapter 5 (October 2024 guidance) It's unfortunate that we have to become experts in federal law just to get the aid we're entitled to, but this community has made that process so much more manageable. Thank you all for sharing your knowledge and experiences - it's exactly this kind of mutual support that makes the difference for veterans trying to use their hard-earned benefits for education.

This thread has been incredibly educational! I'm a veteran who's been considering using my GI Bill benefits for grad school, but after reading all these experiences, I realize I need to be way more prepared for potential issues with financial aid calculations. The pattern here is really troubling - it seems like almost every school is making the same mistake with how they code VA benefits in their systems. It's particularly concerning that this appears to be happening nationwide, which suggests either widespread training gaps or software issues across the higher education system. I'm curious - has anyone had success preventing this issue from happening in the first place? Like, is there anything we can do during the initial FAFSA process or when first enrolling to make sure schools code our GI Bill benefits correctly from the start? It seems like most people are only discovering the error after receiving their aid packages, which then requires all this back-and-forth to fix. Also, for those who successfully got their packages corrected, how long did the recalculation process typically take? I'm trying to plan ahead since I know these financial aid offices can be pretty slow to process changes. Thank you to everyone who shared their experiences and legal references - this is exactly the kind of information veterans need to protect our hard-earned benefits!

As someone who's been helping veterans navigate these issues for years, I want to emphasize how important it is to get this fixed quickly. Schools that continue to violate federal law regarding VA benefits can actually face penalties from the Department of Education, so they have every incentive to correct this once you bring it to their attention with proper documentation. One additional resource I haven't seen mentioned yet: if your school continues to resist after you've shown them the relevant laws, contact your state's Student Assistance Commission. They often have more leverage with schools than individual complaints to federal agencies, and they're usually more responsive. Also, make sure to ask for a written confirmation of any changes they make to your aid package. I've seen cases where schools verbally agreed to fix the issue but then "forgot" to actually process the corrections. Having everything documented protects you if there are any delays or misunderstandings. The silver lining here is that once you get this resolved, you'll likely have a significantly better financial aid package than what they initially offered. Stay persistent - the law is clearly on your side!

I'm a newcomer to this community and just wanted to say how incredibly helpful this entire thread has been! As someone who's about to start using my GI Bill benefits for the first time, I had no idea that schools were making these kinds of systematic errors with VA education benefits. Reading through everyone's experiences, it's both frustrating and reassuring - frustrating that this is such a widespread issue affecting veterans nationwide, but reassuring to know that there are clear legal protections and that other veterans have successfully fought these miscalculations. I'm definitely bookmarking all the legal references that have been shared here (38 U.S.C. § 3679, HEA section 480(c)(2), and the Federal Student Aid Handbook) so I'll be prepared if my school makes the same mistake. The advice about asking to see exactly how they code benefits in their system and requesting written documentation of any changes seems particularly valuable. Thank you to everyone who shared their experiences and legal knowledge - this is exactly the kind of community support that makes a real difference for veterans trying to navigate these complex systems. It's unfortunate that we have to become experts in federal law just to access benefits we've earned, but having this collective wisdom makes the process so much more manageable!

Welcome to the community! This thread has been an absolute goldmine of information. I'm a veteran who's been putting off going back to school partly because I was worried about navigating all the financial aid complexities, but seeing how this community comes together to share knowledge and support each other is really encouraging. The systematic nature of this problem is shocking - it sounds like financial aid software across the country hasn't been properly updated to comply with the Veterans Access, Choice, and Accountability Act. What's even more concerning is that many financial aid officers seem unaware of these regulations, which means veterans are having to educate the very people who should be helping them. I'm saving all the legal references and documentation strategies that have been shared here. The advice about asking schools to show exactly how they code GI Bill benefits in their system seems like it could prevent a lot of headaches by catching errors early in the process. Has anyone found that certain types of schools (public vs. private, large vs. small) are more likely to make these errors, or does it seem pretty random across all institutions? I'm trying to decide where to apply and wondering if this might be a factor to consider when choosing schools. Thank you to everyone who shared their experiences and legal expertise - this is exactly why veteran communities are so valuable!

As a newcomer to this community, I'm absolutely amazed by the wealth of knowledge and support shared in this thread! I'm a veteran who's been hesitant to pursue higher education partly because I was intimidated by the financial aid process, but reading through everyone's experiences has been incredibly educational and empowering. It's shocking to learn how widespread this issue is - the fact that schools nationwide are systematically miscoding GI Bill benefits suggests there's a fundamental problem with either the financial aid software systems or training protocols (or both). What's particularly frustrating is that veterans are being forced to become legal experts just to access benefits we've rightfully earned through our service. I'm definitely saving all the legal citations that have been shared here (38 U.S.C. § 3679, HEA section 480(c)(2), and the Federal Student Aid Handbook references) as well as the strategic advice about requesting to see exactly how schools code benefits in their systems. The tip about getting written confirmation of any changes seems crucial too - I never would have thought about the possibility that schools might verbally agree to fix issues but then not follow through on processing the actual corrections. For those who successfully resolved this issue, did you find that having these legal references made financial aid offices more responsive, or did you still face resistance even with proper documentation? I'm trying to gauge whether this is typically a quick fix once you show them the law, or if it often requires escalation to higher levels of administration. Thank you to everyone who shared their experiences and expertise - this is exactly why veteran communities are so valuable for helping each other navigate these complex bureaucratic systems!