Course Catalog / BMU 103 / Lesson 4 of 5

BMU 103

Lesson 4: Fund It in the Right Order

About 8 minutes, plus 45 minutes for your action step

Quick review

Why compare total cost to finish instead of cost per credit?

See the answer

Because credit transfer and fees change how much you actually pay to finish.

Two people can pay for the same degree and end up in very different places. One uses up the GI Bill early and borrows for the rest. The other uses the right money first and saves the biggest benefit for later. Order matters.

Start where you are: Which funding sources are you counting on right now? Write them down in the order you planned to use them. You will compare that order to today's list.

A sensible order to check

1. Money that expires or is "use it or lose it." For many service members this is Tuition Assistance, which generally must be used while serving.
2. Free money you never repay. File the FAFSA every year at StudentAid.gov to see if you qualify for federal grants, such as the Pell Grant. Check state grants, state veteran benefits, and scholarships, including ones for military spouses and children.
3. Employer help. Many civilian employers offer tuition assistance.
4. Big earned benefits. GI Bill benefits are valuable and limited. Many people treat them as a strategic reserve, used for the most expensive part of the journey or, for some, transferred to family. A transfer to family must be requested and approved while you are still serving, so ask early.
5. Loans last, only federal loans, and only for what you truly need.

File the FAFSA, even if you think you will not qualify

Some people skip the FAFSA because they assume they earn too much. Filing is free (StudentAid.gov) and tells you for sure. File every year.

Ask how benefits stack

Some states require their benefit to be applied before or after federal money. Ask your school's financial aid office: "In what order are my benefits applied to my account?" Get the answer in writing.

Watch the deadlines

Some state programs have deadlines tied to your separation date. Check your state veterans agency before you separate, not after.

Verify before you decide

Benefit rules, caps, and eligibility change, sometimes every year. Before you decide, check with your education center or school certifying official, at VA.gov for the GI Bill, and at StudentAid.gov for federal aid.

Worked example: one funding stack

An illustrative composite. The person and details are made up.

1. Situation: active duty, target is an associate degree at a community college.
2. Step 1: Tuition Assistance for each class, approved through the branch education office.
3. Step 2: FAFSA filed. If a Pell Grant comes through, it may help with books and fees. State and scholarship searches added.
4. Step 3: no civilian employer tuition help yet. Ask about it at any future civilian job.
5. Step 4: GI Bill left untouched for a future bachelor's degree. Step 5: no loans planned. Each line lists the office or website that will confirm it.

Common mistakes

• Using the GI Bill first by default. Fix: Check which money expires, and use that first when it makes sense.
• Skipping the FAFSA. Fix: File every year. It is free.
• Trusting a friend's advice on benefit rules. Fix: Verify with an official source.

Check your understanding

Pick an answer, then open "See the answer." Try as many times as you like.

1. In the lesson's order, what usually comes last?

1. A. Tuition Assistance
2. B. Loans
3. C. The FAFSA

See the answer to question 1

The best answer is B: Loans

• A: Not quite. TA often comes first, because it generally must be used while serving. To improve: reread A sensible order to check, then explain to yourself why the correct answer works.
• B: Correct. Loans last, federal only, and only for what you need.
• C: Not quite. File it every year, early. To improve: reread A sensible order to check, then explain to yourself why the correct answer works.

2. You are on active duty, eligible for TA, and also have the GI Bill. Your friend says use the GI Bill now. What does this lesson suggest?

1. A. Use the GI Bill now
2. B. Look at using TA first and saving the GI Bill, then confirm with your education center
3. C. Take out a loan instead

See the answer to question 2

The best answer is B: Look at using TA first and saving the GI Bill, then confirm with your education center

• A: Not quite. Many people save it as a reserve and use TA while serving. To improve: reread A sensible order to check, then explain to yourself why the correct answer works.
• B: Correct. That fits the lesson's order and its verification step.
• C: Not quite. Loans come last. To improve: reread A sensible order to check, then explain to yourself why the correct answer works.

3. You think your family earns too much for federal grants. What should you do about the FAFSA?

1. A. Skip it
2. B. File it anyway, every year
3. C. File it once and never again

See the answer to question 3

The best answer is B: File it anyway, every year

• A: Not quite. You will not know unless you file. To improve: reread File the FAFSA, even if you think you will not qualify, then explain to yourself why the correct answer works.
• B: Correct. It is free and tells you for sure.
• C: Not quite. File every year. To improve: reread File the FAFSA, even if you think you will not qualify, then explain to yourself why the correct answer works.

4. Where should you confirm current GI Bill rules?

1. A. A social media group
2. B. VA.gov or your school certifying official
3. C. A school recruiter

See the answer to question 4

The best answer is B: VA.gov or your school certifying official

• A: Not quite. Rules change. Use an official source. To improve: reread Verify before you decide, then explain to yourself why the correct answer works.
• B: Correct. These are official sources.
• C: Not quite. Recruiters are not the official source. To improve: reread Verify before you decide, then explain to yourself why the correct answer works.

Next up: Lesson 5 puts everything on one page.

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