5162-4        EDUCATION ASSISTANCE

5162-4 A.   TITLE IV HIGHER EDUCATION ACT AND BUREAU OF INDIAN AFFAIRS GRANTS AND AWARDS

The total amount of any grant, scholarship, or award issued under any program funded under the Title IV of the Higher Education Act or under a Bureau of Indian Affairs student assistance program is not counted as income in determining eligibility or benefit amount.

Payments that fit this category include:
 

• Pell Grants
   

• State Student Incentive Grants (SIG State Student Incentive Grant)
   

• Academic Achievement Incentive Scholarships
   

• Byrd Scholars
   

• Federal Supplemental Educational Opportunities Grants (FSEOG)
   

• Federal Educational Loans (Federal PLUS Loans, Perkins Loans, Stafford Loans, Ford Loans, etc.)
   

• Upward Bound
   

• Gear Up (Gaining Early Awareness and Readiness for Undergraduate Programs)
   

• LEAP (Leveraging Educational Assistance Partnership)
   

• SLEAP (Special Leveraging Educational Assistance Partnership)
   

• Work-Study Programs
   

Verify that the source of the education assistance is Title IV or BIA Bureau of Indian Affairs by viewing the individual’s award letter.  Contact the awarding institution if the award letter is not available or is unclear.

5162-4 B.  OTHER EDUCATIONAL GRANTS AND AWARDS

Education assistance that is not funded under Title IV of the Higher Education Act or the Bureau of Indian Affairs student assistance program funds is excluded as income if it is used or will be used for paying tuition, fees, or other necessary education expenses at any educational institution, including vocational, technical, and correspondence schools, and schools for people with disabilities.  

Any portion of education assistance that is not used or set aside for paying tuition, fees, or other necessary education expenses is countable unearned income.

5162-4 C. BUDGETING COUNTABLE EDUCATION INCOME

Total all countable education assistance.  Do not add any other type of earned or unearned income unless it is received specifically because of the student's status and is intended to pay education-related expenses.
 

1. Subtract from the above the costs for tuition and fees charged by the school.
    

2. Subtract the costs for books, school supplies, and any special clothing, tools, or other expenses of the student that are related to the cost of attending school.
    

3. Subtract costs for childcare necessary for the student to attend school.  The child care limits of section 5165-2 do not apply.
    

4. Subtract costs for transportation (actual costs, such as bus pass or parking fees, or standard mileage rate permitted by IRS).
    

5. Divide the remaining amount by the number of months the money is intended to cover.
    

6. Count the prorated amount as monthly income for each month in the period of intended use.  If the money is received after the period it is intended to cover has already begun, prorate the money over the entire period of intended use and apply the prorated amount only to the months in which it was received and the remaining months it is intended to cover.
    

7. Any amount of money retained after the period of intended use is a countable resource.
    

8. These deductions from countable education income are also given to anyone not included in the assistance unit whose income is used to determine eligibility and benefit amount.

Verification of source, amount, period of intended use, and allowable education expenses is required.