Financial Aid for Military Families Paying for Higher Education

The average cost for four years at a public in-state university is $108,584, and four years at a private college or university comes with a hefty average price tag of  $234,512. While the GI Bill is designed to ease the financial burden on service members and veterans seeking an education, it won’t necessarily cover the full cost of a college education. Fortunately, the federal grants and loans that can be accessed by completing the FAFSA can help fill in the financial gaps.

Even if you don't plan on applying for federal financial aid, it's still a good idea to fill out the FAFSA. Many universities and private scholarships require it for additional scholarships.

What is the FAFSA?

The FAFSA gives applicants access to the largest source of financial aid for education available within the United States. Colleges and career schools use this program to determine how much financial aid you're eligible to receive.

Why Should Service Members Apply for the FAFSA?

Filing the Free Application for Federal Student Aid unlocks federal grants, work-study, and low-interest loans — and it’s the form many states colleges and universities use to award their own aid. The federal deadline for the 2025–26 year is June 30, 2026; state and school deadlines can be earlier, so file as soon as the form opens for your year.

Are all service members eligible?

Yes. Most active-duty members serving for purposes other than training qualify as independent students on the FAFSA. Veterans are also eligible, and support for education is more extensive for those who’ve served in the military. Let’s explore some additional education funding benefits available to you.

How to Pair FAFSA and Military Education Benefits

Even if you’re using Veterans Affairs or Department of Defense programs, filing the FAFSA matters. Federal student aid (grants, work-study, loans) and military education benefits are separate funding streams that schools coordinate to cover tuition, fees, and other costs. Filing the FAFSA keeps you in the running for grants and school/state aid while you use your GI Bill or DOD Tuition Assistance.

What the FAFSA unlocks

Here’s what filing the FAFSA can open up — whether or not you’re using the GI Bill.

• Pell Grant (need-based, undergraduate)
• Federal Supplemental Educational Opportunity Grant (FSEOG) (campus-awarded, limited funds)
• Federal Work-Study (campus-awarded, limited funds)
• Direct loans (subsidized/unsubsidized for students; PLUS for graduate students/parents)

What the VA and DoD provide

With federal aid covered, here’s what your military benefits bring to the table:

• Post-9/11 and Montgomery GI Bill: tuition/fees paid to the school; housing and book stipends to you.
• Yellow Ribbon: for use at participating institutions by those VA beneficiaries at the 100% benefit level.
• DoD Tuition Assistance (TA): for voluntary off-duty education at schools that sign the DoD Voluntary Education Partnership MOU; service-specific policies apply.
• TA Top-Up: if your tuition exceeds what TA covers, Top-Up can pay the difference using your GI Bill entitlement.
• Family Options: GI Bill transfer to a spouse or child, plus other family education benefits; VA.gov has a good overview.
• My Career Advancement Account (MyCAA): for eligible spouses (licenses, certificates, associate degrees).

Each program has its own eligibility rules and timelines; your advisor and school can help you decide what to use when considering your education funding options. Planning ahead for gaps or a child’s future tuition? Learn the basics of a 529 plan to see how savings can work alongside federal aid and military benefits.

Schools start with your FAFSA information and the total estimated costs of higher education (tuition, fees, books, housing) to build your aid offer. Then, they add any military education money you qualify for. If Tuition Assistance doesn’t cover everything, the aid office may fill the gap with grants or federal loans. You can also use the  TA “Top-Up” to cover the rest, but it will use some of your GI Bill benefits. Before you enroll, check your branch’s TA rules and make sure the school has a current agreement with the DOD (a.k.a. the DOD MOU).

How Does Federal Student Aid Work?

In short, anyone seeking post-secondary education can complete the FAFSA, including:

• Active-duty service members: File the FAFSA regardless of income; many are treated as independent students.
• Veterans: Submit the FAFSA — you’re usually independent, and aid can stack with VA benefits.
• Spouses and dependents: FAFSA uses family information; VA-transfer options or spouse programs may apply too.

If you’re in one of those groups, here’s how the process plays out from start to finish.

1) Create FSA IDs and identify “contributors.”

Every person whose info is required (you, spouse, or a parent if you’re dependent) needs an FSA ID. Essentially, anyone who impacts you financially needs to contribute that information to your application, which makes them a contributor. With the FUTURE Act Direct Data Exchange (FA-DDX), verified tax data can flow in securely — less typing, fewer errors — once each contributor gives consent.

2) Complete and submit the FAFSA.

List your target schools. The system calculates your Student Aid Index (SAI)—an index schools use (along with cost of attendance) to figure out what aid to offer. The SAI is not your bill and can be negative.

3) Schools build your aid offer.

Your school packages federal, state, institutional, and (as applicable) VA/DoD funds. You’ll get an aid offer that details grants, work-study, and loans. Want to estimate and prepare for any expenses that might not be covered by aid? Use our guide on saving enough for your child’s college to size the gap and set a target.

4) You accept, then funds disburse.

Grants and loans generally credit your student account first. If there’s a surplus after tuition/fees, you receive the difference for other education costs. Keep meeting Satisfactory Academic Progress to maintain eligibility.

Tips for Preparing to Fill Out the FAFSA

Use these steps to make filing smoother—and to keep more options on the table while you use your GI Bill or Tuition Assistance.

Beware of scams

The FAFSA is free. Always file and manage your aid through the official Federal Student Aid website. If a site asks for a fee to “file for you,” skip it.

Apply early

Some aid (like the Federal Supplemental Educational Opportunity Grant and Federal Work-Study) is limited to campus-based funding, and many states set earlier priority dates. File as soon as the form opens for your year and check state and school deadlines. For the 2026–27 year, the FAFSA is slated to be available October 1, 2025. The federal deadline is later, but earlier filing helps your chances of receiving limited aid.

Make it an annual habit

You must file a FAFSA every year you want aid. Put a reminder on your calendar near opening day and keep your login details handy.

Have your documents ready

Gather any information you will need before you start: your FSA ID, Social Security number or Alien Registration number, last year’s tax info (the IRS will transfer this if you consent), and details about cash, savings, investments, and untaxed income. You can list up to 20 colleges online—line them up now. (Student Aid)

Have your contributor information ready

“Contributors” (you, your parent(s), and/or your spouse, depending on your situation) each need their own studentaid.gov account and must give consent so the IRS can share tax data via the Direct Data Exchange. If a required contributor lacks a Social Security number, there’s a specific workflow — don’t wait to set that up.

Avoid common errors

• Using an unofficial site or forgetting to sign and submit — every required contributor must sign or your form won’t process.
• Entering info that doesn’t match your legal name/SSN on file.
• Skipping schools (add all you’re considering; you can update later).
• Manually typing tax data when you can consent and transfer it automatically. (Student Aid)

Use in-form help (and official support) when stuck

The FAFSA includes built-in guidance, and the application site offers videos and a help center if you need a hand — helpful for “Who’s my FAFSA parent?” and other common snags.

Update your personal information

After you submit, review your FAFSA Submission Summary and correct anything that changes — addresses, contact info, or school list. Schools can’t package accurately if your details are out of date.

Military-specific considerations

• Basic Allowance for Housing (BAH): You don’t report BAH as income on the FAFSA. However, when a student receives BAH or lives on base, schools exclude housing costs from the cost of attendance, which can affect need calculations. Plan accordingly.
• Paperwork to keep handy: Leave and Earnings Statement (LES), deployment orders (if applicable), and your education benefit documentation (for school coordination with GI Bill/TA).
  

Ready to explore your education benefits?

Exploring longer-term options? Review our education savings plan for military families and then speak with a First Command Financial Advisor to align your FAFSA-based aid with your GI Bill or Tuition Assistance.

Frequently Asked Questions

Do I have to refile the FAFSA every year?

Yes. Aid isn’t a one-and-done. Filing annually keeps you in the pool for grants, work-study, and loans.

I’m Guard/Reserve. Am I independent?

If you’re on active duty for purposes other than training, FAFSA treats you as an independent student; otherwise, dependency questions apply.

Does filing the FAFSA hurt my VA benefits?

No. They’re separate programs. Schools coordinate them so you can use what fits your plan.