Candidates for admission must both apply directly to the academy and receive a nomination, usually from a congressman. Students are officers-in-training and are referred to as midshipmen. Tuition for midshipmen is fully funded by the Navy in exchange for an active duty service obligation upon graduation. Approximately 1,300 "plebes" enter the Academy each spring with about 1,000 midshipmen graduating. Graduates are usually commissioned as ensigns in the Navy or second lieutenants in the Marine Corps, and occasionally as officers in the US Air Force and US Army. The academic program grants a bachelor of science degree with a curriculum that grades midshipmens' performance upon a broad academic program, military leadership performance, and mandatory participation in competitive athletics. Midshipmen are required to adhere to the Honor Concept.

The United States Naval Academy's campus is located in Annapolis, Maryland, at the confluence of the Severn River and the Chesapeake Bay.

Some ranking agencies, such as usnews.com, do not rank the Naval Academy directly against other colleges because "Colleges that offer most or all of their degrees in fine arts, performing arts, business, or engineering are listed here as specialty schools." Currently, however, the USNA offers a wider range of majors. Some agencies do recognize the academy's scholastic standing: Forbes.com ranked the Academy as 30th in the United States in its "America's Best Colleges" site for 2009.

Prospective candidates must be first nominated by a Congressman, Senator, Vice-President, or President; and must pass a physical fitness test and a medical exam. In the 21st century, there have been about 1,200 in each new class of plebes (freshmen). The U.S. government pays for tuition, room and board. Midshipmen received $845.70 per month in 2005. From this they were required to pay for uniforms, books, and supplies. They must pledge to serve a minimum number of years of service after graduation.

Students at the Naval Academy are addressed as Midshipman, an official military rank and paygrade. As midshipmen are actually in the United States Navy, starting from the moment that they raise their hands and affirm the oath of office at the swearing-in ceremony in Memorial Hall, they are subject to the Uniform Code of Military Justice, of which USNA regulations are a part, as well as to all executive policies and orders formulated by the Department of the Navy. The same term comprises both males and females. Upon graduation, most Naval Academy Midshipmen are commissioned as Ensigns in the Navy or Second Lieutenants in the Marine Corps and serve a minimum of five years after their commissioning. If they are selected to serve as a pilot (aircraft), they will serve 8–11 years minimum, and if they are selected to serve as a naval flight officer they will serve 6–8 years. Foreign midshipmen are commissioned into the armed forces of their native countries. Since 1959, midshipmen have been able to "cross-commission," or request a commission in the Air Force, Army, or Coast Guard, provided they meet that service's eligibility standards. Every year, a small number of graduates do this- usually 1 or 2, and usually in a one-for-one "trade" with a similarly inclined cadet at one of the other service academies.

Midshipmen who resign or are expelled from the academy in their first two years incur no military service obligation. Those who are separated — voluntarily or involuntarily — after that time are required to serve on active duty in an enlisted status, usually for two to four years. Alternatively, separated former Midshipmen can reimburse the government for their educational expenses, though the sum is often in excess of $150,000. The decision whether to serve enlisted time or reimburse the government is up to the Secretary of the Navy.

There is no graduate school directly associated with the Naval Academy. Instead, the Navy operates the Naval Postgraduate School and the Naval War College separately. The Naval Academy Preparatory School (NAPS) is the official prep school for the Naval Academy. The Naval Academy Foundation provides Post-Graduate high school education for a year of preparatory school before entering the Academy for a very limited number of applicants. There are several preparatory schools and junior colleges throughout the United States which host this program.

The institution was founded as the Naval School in 1845 by Secretary of the Navy George Bancroft. The campus was established at Annapolis on the grounds of the former U.S. Army post Fort Severn. The school opened on 10 October with 50 Midshipmen students and seven professors. The decision to establish an academy on land may have been in part a result of the Somers Affair, an alleged mutiny involving the Secretary of War's son that resulted in his execution at sea. Commodore Matthew Perry had a considerable interest in naval education, supporting an apprentice system to train new seamen, and helped establish the curriculum for the United States Naval Academy. He was also a vocal proponent of modernization of the Navy.

Originally a course of study for five years was prescribed. Only the first and last were spent at the school with the other three being passed at sea. The present name was adopted when the school was reorganized in 1850 and placed under the supervision of the chief of the Bureau of Ordnance and Hydrography. Under the immediate charge of the superintendent, the course of study was extended to seven years with the first two and the last two to be spent at the school and the intervening three years at sea. The four years of study were made consecutive in 1851 and practice cruises were substituted for the three consecutive years at sea. The first class of Naval Academy students graduated on 10 June 1854.

In 1860, the Tripoli Monument was moved to the academy grounds. Later that year in August, the model of the USS Somers experiment was resurrected when the USS Constitution, now 60 years old, was pulled out of ordinary and refurbished as a school ship for the fourth-class midshipmen. She was anchored at the yard, and the plebes lived on board the ship to immediately introduce them to shipboard life and experiences.