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, 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.