OFA.	You	can	ask	the	student	to	identify	the	specific	program	under	which	they	are	receiving	their	veterans	education
benefits.	Veterans	education	benefits	are	also	not	to	be	counted	as	income,	and	therefore	are	not	reported	as	income	on
the	FAFSA	form.	For	a	list	of	federal	veterans	education	benefits	that	are	to	be	excluded	from	OFA,	see	the	Appendix	at
the	end	of	this	chapter.
Noneducational	veterans	benefits	are	also	not	counted	as	OFA.	Noneducational	veterans	benefits	include	Death
Pension	and	Dependency	and	Indemnity	Compensation	(DIC)	benefits,	and	income	from	the	Veteran9s	Affairs	Student
Work-Study	Allowance	Program	(VASWSAP).	The	student	must	report	these	noneducational	benefits	as	nontaxable	income
on	the	FAFSA	form.
AmeriCorps	Benefits
AmeriCorps	benefits	are	not	included	as	OFA	when	determining	eligibility	for	Direct	Subsidized	Loans,	but	they	are
counted	as	OFA	when	determining	eligibility	for	Direct	Unsubsidized	Loans.
When	packaging	Campus-Based	or	TEACH	Grant	awards,	you	may	exclude	from	the	OFA	any	portion	of	a	Direct
Subsidized	Loan	that	is	equal	to	or	less	than	the	amount	of	the	student9s	AmeriCorps	benefits.
Vocational	Rehabilitation	Funds
If	you	have	a	student	who	qualifies	for	both	
Title	IV	funds	and	for	vocational	rehabilitation	assistance	funds,	you	should
determine	the	student9s	aid	package	without	including	costs	related	to	the	student9s	disability	in	the	student9s	COA,	and
Veterans	Benefits	Not	OFA
August	13,	2009	Electronic	Announcement
HEA	480(c)
Volume	3,	Chapter	3,	Example	6:	Packaging	When	a	Student	Receives	AmeriCorps	Benefits
A	third-year	dependent	student	has	a	COA	of	$15,000	and	an	SAI	of	2,400,	and	is	receiving	a	$5,100	Pell	Grant*,
$3,000	in	AmeriCorps	benefits	and	$1,000	in	FSEOG.	Because	AmeriCorps	benefits	are	not	counted	as	OFA	when
determining	eligibility	for	Direct	Subsidized	Loan,	you	may	award	the	student	$5,500	in	Direct	Subsidized	Loan
funds:
$15,000	COA	3	2,400	SAI	3	$5,100	Pell	Grant*	3	$1,000	FSEOG	=	$6,500	Direct	Subsidized	Loan	eligibility	(limited
to	$5,500	because	of	the	annual	loan	limit)
In	contrast,	AmeriCorps	benefits	are	considered	OFA	when	determining	eligibility	for	Direct	Unsubsidized	Loans.
Therefore,	the	student	may	receive	an	additional	$455	in	Direct	Unsubsidized	Loan	funds	to	replace	part	of	the
SAI	and	fully	cover	the	COA:
$15,000	COA	3	$5,100	Pell	Grant*	3	$1,000	FSEOG	3	$3,000	AmeriCorps	benefits	3	$5,500	Direct	Unsubsidized
Loan	=	$400	Direct	Unsubsidized	Loan	eligibility
*The	$5,100	Pell	Grant	amount	shown	in	this	example	is	for	illustrative	purposes	only	and	is	not	intended	to
represent	the	actual	Pell	Grant	amount	that	a	student	would	be	eligible	to	receive.	See	
Volume	7	for	guidance	on
the	determination	of	Pell	Grant	awards.
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