Is Combat-Related Special Compensation Reported On the FAFSA?

Award Year: 2024-25 KA-36706 Helpfulness Rating 72 page views

This guidance is specific to the 2024-25 award year and later.

No. Starting with the 2024-25 award year under the FAFSA Simplification Act, combat-related special compensation (CRSC) is not reported on the FAFSA, is not included in need analysis, and is not other financial assistance (OFA) when packaging the student with Title IV aid.

According to the U.S. Defense Finance and Accounting Service of the U.S. Department of Defense, CRSC is a special compensation for combat-related disabilities. It is nontaxable, and retirees must apply to their Branch of Service to receive it. The purpose of this entitlement is to recover some or all of the retired pay that military retirees waive for veterans disability compensation.

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