http://newgibill.org/get_answers#66
(For clarification: the gi bill being used by DS is one being transferred from active duty Marine dad; in now for 20 + years. It will pay for room and board etc. not covered by ROTC scholarship. Also to transfer dad must stay active duty and commit to 4 more years service time, DS would not have been allowed to use GI bill had dad been pending retirement or been retired: I know not fair to retirees).
c) How do financial aid and the GI Bill work together? Will taking one affect the other?
Veterans' education benefits are not considered in determining eligibility for federal financial aid (they even took it off the FAFSA form). However, every state/school sets its own policies for determining how veterans' education benefits affect state/local aid. We strongly encourage all veterans to apply for federal financial because many veterans qualify for additional educational funds like Pell Grants, worth over $5,500/yr.
Recent legislative modifications to the Post-9/11 GI Bill (Chapter 33) have changed what tuition/fees the VA will reimburse. The VA is now considered a “payer of last resort”, meaning that they will only pay for tuition/fees that are not already paid for by other financial aid. For example if a veteran is receiving an ROTC scholarship that will cover the full cost of tuition/fee, the VA will not pay anything toward tuition/fees. Prior to August 2011 they would have paid tuition/fees regardless of any scholarships received by the veteran.
There are several exceptions to the “payer of last resort” rule. The following types of financial aid are excluded from consideration when determining a student’s GI Bill benefits:
Title IV Federal Financial Aid: Benefits a student would be eligible for by filling out the FAFSA form (e.g., Pell Grants) do not count against your Post-9/11 GI Bill benefits.
General Scholarships: General scholarships given directly to the veteran or intended to cover any type of expenses are also excluded. Only scholarships given directly to the university to cover specifically tuition/fees and nothing affect GI Bill benefits.
Yellow Ribbon Program Contributions: Yellow Ribbon contributions can still be used to pay for the full cost of tuition/fees that are not covered by other sources.