Can I Use FAFSA and GI Bill at the Same Time?

Understanding available financial support is a crucial first step for higher education. Two prominent avenues for assistance in the United States are federal student aid, accessed through the Free Application for Federal Student Aid (FAFSA), and education benefits provided by the GI Bill. This article explores how these distinct funding sources can be utilized to help individuals.

Understanding the Free Application for Federal Student Aid (FAFSA)

The Free Application for Federal Student Aid (FAFSA) is the foundational application for federal financial aid programs for higher education. It assesses a student’s financial capacity and determines eligibility for various types of federal assistance. This includes federal grants, such as the Pell Grant and Federal Supplemental Educational Opportunity Grants (FSEOG), which generally do not need to be repaid.

FAFSA also provides access to federal student loans (Direct Subsidized, Unsubsidized, and PLUS Loans), which must be repaid. It also determines eligibility for Federal Work-Study programs, where students earn money through part-time employment. General eligibility criteria for federal aid include:
U.S. citizenship or eligible non-citizen status
Possession of a high school diploma or GED
Enrollment in an eligible degree or certificate program
Maintaining satisfactory academic progress

A key concept from the FAFSA is the Student Aid Index (SAI), which replaced the Expected Family Contribution (EFC) starting with the 2024-25 FAFSA. The SAI is a numerical value calculated from the student’s and, if applicable, their parents’ or spouse’s income, assets, and tax information. This index indicates a student’s financial strength, with a lower SAI suggesting greater financial need, and it is used by colleges to determine federal student aid.

Understanding GI Bill Education Benefits

The GI Bill provides educational assistance to eligible service members, veterans, and their dependents. While several GI Bill chapters exist, the Post-9/11 GI Bill (Chapter 33) is the most widely utilized program for those who have served on active duty since September 11, 2001.

Benefits under the Post-9/11 GI Bill include direct payment of tuition and fees to the educational institution, often covering full in-state public tuition for those with maximum eligibility. Eligible individuals also receive a monthly housing allowance (MHA) based on the school’s location, and a stipend for books and supplies (typically up to $1,000 per academic year). Benefit levels are tiered based on the length of active duty service, with 36 months or more generally qualifying for 100% of benefits. Eligibility requires at least 90 days of aggregate active duty service after September 10, 2001, or a service-connected disability discharge after 30 continuous days of service.

Coordinating FAFSA and GI Bill Benefits

Eligible individuals can use both FAFSA and GI Bill benefits simultaneously to finance their education. When a student applies for federal student aid through FAFSA, GI Bill benefits are considered “estimated financial assistance” (EFA) by college financial aid offices. This means GI Bill benefits can impact a student’s eligibility for need-based federal aid programs.

The inclusion of GI Bill benefits as EFA can reduce a student’s demonstrated financial need, which may lower the amount of need-based federal grants or subsidized loans they qualify for. Financial aid offices typically apply GI Bill benefits first to cover tuition and fees. Any remaining educational costs, such as living expenses, books beyond the GI Bill stipend, or tuition not fully covered by the GI Bill, can then be addressed by FAFSA-derived aid.

GI Bill benefits generally do not affect eligibility for non-need-based federal aid, such as unsubsidized federal student loans or PLUS loans, which are available regardless of a student’s financial need. Combining these sources provides comprehensive financial support, covering a wider array of expenses and potentially reducing the need for private loans. Proactive communication with both the school’s financial aid office and veterans’ affairs office is advisable to understand how specific benefits will be coordinated and applied.

Application Process for Both Programs

Applying for federal student aid through FAFSA is an annual process. The FAFSA typically opens on October 1st for the following academic year; applying early is recommended to meet federal, state, and institutional deadlines. The application is completed online at the official Federal Student Aid website, requiring tax data, demographic details, and school codes for planned institutions. After submission, applicants receive a FAFSA Submission Summary, which provides their Student Aid Index and estimated federal aid eligibility.

For GI Bill benefits, individuals should apply through the Department of Veterans Affairs (VA) website after deciding on an educational program or school. The application typically requires documentation such as Social Security number, military history (e.g., DD-214), and basic information about the chosen school. Once the VA processes the application, they issue a Certificate of Eligibility (COE), which confirms benefit eligibility and must be provided to the school’s VA certifying official. Applying for both programs early ensures timely processing and maximizes support.