Summary;
ROTC Educational Benefits are now classified as Federal veterans’ education benefits-
So now ROTC payments are not classed as income and
must not to be included on FAFSA.
(Stipend = subsistence allowance benefits)
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"Q4: Are the education benefits provided under the DOD’s Reserve Officers Training Corps (ROTC) considered Federal veterans’ education benefits and therefore not considered EFA even though they are not administered by the VA and are not provided to veterans?
A4: As noted earlier, the amended section 480(c) of the HEA includes, in addition to education benefit programs administered by the VA, two ROTC programs that are administered by the DOD. These are the scholarship benefits provided under the Senior Reserve Officers Training Corps (ROTC) in chapter 103 of title 10 of the United States Code and the subsistence allowance benefits provided under the ROTC in chapter 3 of title 37 of the United States Code. Therefore, education benefits from these two ROTC programs must be excluded as EFA even though they are not VA programs and the recipients are not veterans.
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Q7: Since these Federal veterans’ education benefits are no longer considered EFA, may they be included as income in the calculation of a student’s expected family contribution(EFC)?
A7: No. Federal veterans’ education benefits, as defined in section 480(c) of the HEA, have been and continue to be excluded from the calculation of a student’s EFC"
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Guidelines
HERE
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A recent bill Higher Education Act Technical Corrections Bill (H.R.1777) was passed which changes how federal student aid eligibility is determined for Veteran and ROTC students. Among the provisions included in the bill is an updated definition of the term "Veterans Education Benefits".
Previously, Veteran and ROTC Education Benefits were counted as part of a student's overall financial aid package. The new legislation
exempts these benefits, resulting in the potential for expanded eligibility for various types of federal financial aid programs including but not limited to the Supplemental Educational Opportunity Grant, Federal Work-study, and Federal Direct Student and Parent Loans.
Veteran and ROTC Education Benefits will be considered when awarding institutional need based aid.
Link