*** The Health Care Programs Manual (HCPM) has been replaced by the Minnesota Health Care Programs Eligibility Policy Manual (EPM) as of June 1, 2016. Please refer to the EPM for current health care program policy information. ***
Effective: June 1, 2011 |
|
19.25.50 - Student Financial Aid |
Archived: June 1, 2016 (Previous Versions) |
Student financial aid includes loans, grants, scholarships, fellowships, internships, gifts, some training expenses, and work-study funds. Student financial aid may be counted as an asset, excluded indefinitely or excluded for a limited time.
Note: For Method B, MA-EPD and Medicare Savings Programs, any excluded student financial assistance must be identifiable. See Excluded Assets for information on determining whether assets are identifiable.
Title IV of the Higher Education Act of 1965.
Non-Title IV of HEA and Non-BIA Financial Assistance.
Veterans' Affairs Educational Benefits.
Coverdell Education Savings Accounts.
Title IV of the Higher Education Act of 1965
Title IV of the Higher Education Act of 1965 (HEA) is a federal law that authorizes programs that provide student financial aid. These programs include, but are not limited to:
l Pell grants (formerly Basic Educational Opportunity Grant (BEOG)).
l Academic Competitiveness Grants (also known as AC Grants and ACG).
l National Science and Mathematics Access to Retain Talent (SMART) Grants.
l Federal Family Education Loan (FFEL) Program (also known as FFEL Program and FFEL loans). FFEL includes four components:
n Stafford Loans (formerly Guaranteed Student Loan),
n Unsubsidized Stafford Loans,
n Federal PLUS Loans, and
n Federal Consolidation Loans.
l Federal Perkins Loan Program (formerly National Defense Student Loan and National Direct Student Loan).
l Federal Supplemental Educational Opportunity Grant (FSEOG) Program.
l Supplemental Education Opportunity Grants (SEOG) Program.
l Federal Work-Study (FWS) Program (also known as FWS awards, FWS employment. Formerly College Work-Study Program).
l Teacher Education Assistance for College and Higher Education (TEACH) Grants (also known as TEACH Grant Program, TEACH Grants).
l William D. Ford Federal Direct Loan Program (also known as Direct Loan program and Direct Loans). Direct Loans includes four components:
n Direct Subsidized Loans,
n Direct Unsubsidized Loans,
n Direct PLUS Loans, and
n Direct Consolidation Loans.
l Leveraging Educational Assistance Partnership (LEAP) Program (also known as LEAP Program). Formerly State Student Incentive Grants (SSIG).
l Special Leveraging Educational Assistance Partnership (SLEAP) Program.
l Robert C. Byrd Honors Scholarship Program (also known as Byrd Honors Scholarships).
l Student Support Services (also known as SSS and TRIO). Student Support Services is one of several TRIO programs.
l Academic Achievement Incentive Scholarships.
l Federal Supplemental Loans for Students (SLS) (formerly Auxiliary Loans to Assist Students (ALAS)).
l Upward Bound (also known as TRIO). Upward Bound is one of several TRIO programs.
l Gear Up (Gaining Early Awareness and Readiness for Undergraduate Programs).
l High School Equivalency Program (HEP).
l College Assistance Migrant Program (CAMP).
l Robert E. McNair Post-Baccalaureate Achievement (also known as McNair and TRIO).
l State Student Incentive Grant Program.
l Presidential Access Scholarships.
Exclude all student financial aid provided under Title IV of the HEA for all Minnesota Health Care Programs (MHCP), regardless of its use. This asset exclusion has no time limit.
Bureau of Indian Affairs (BIA) provides student financial aid to eligible individuals.
Exclude all student financial aid provided by the BIA for all MHCP, regardless of its use. This asset exclusion has no time limit.
Treat non-Title IV of HEA and non-BIA student financial aid (grants, scholarships, fellowships, gifts intended to be used to pay the costs of tuition, fees, or necessary educational expenses) as follows:
l MinnesotaCare and MA Method A: For both undergraduate and graduate students exclude as assets until the month following the last month the student is enrolled in classes.
l MA Method B, MA-EPD and Medicare Savings Programs (MSP): For both undergraduate and graduate students exclude as assets until the month following the last month the student is enrolled in classes.
Veterans' Affairs Educational Benefits
Treat the portion of Veterans’ Affairs (VA) benefits designated as educational assistance as follows:
l MinnesotaCare and MA Method A: For both undergraduate and graduate students exclude as assets until the month following the last month the student is enrolled in classes.
l MA Method B, MA-EPD and Medicare Savings Programs (MSP): For both undergraduate and graduate students exclude as assets until the month following the last month the student is enrolled in classes.
Treat financial aid used to fulfill an approved Plan to Achieve Self Support (PASS) for disabled or blind people as follows:
l MinnesotaCare and MA Method A: For both undergraduate and graduate students determine the type of financial aid used to fulfill the PASS. Follow MinnesotaCare/MA Method A policy for that type of financial aid.
l MA Method B, MA-EPD and Medicare Savings Programs (MSP): For both undergraduate and graduate students exclude as assets.
Count funds in a Qualified Tuition Program (QTP), also referred to as a Section 529 Plan, as an asset for the individual who owns the account (e.g. a parent or grandparent) for all MHCP. Normally, the owner is the person who established the account. In most instances, the individual who establishes a QTP retains the ability to withdraw any or all of the funds in the account for his or her own benefit.
Note: In most cases, the designated beneficiary (for example, the student or future student) is not the owner of the account and does not have any rights to the funds in the account.
Coverdell Education Savings Accounts
A Coverdell Education Savings Account (ESA), referred to as a Section 530 Plan and formerly known as an Educational Individual Retirement Account, is an account(s) established to pay the educational expenses (i.e., elementary, secondary, and postsecondary school) of an individual who is the designated beneficiary and is under age 18 or a special needs beneficiary.
Note: Assume an individual who is age 18 or older and eligible for Supplemental Security Income (SSI) due to blindness or disability is a ”special needs beneficiary.”
Assets in a Coverdell ESA are excluded for the designated beneficiary of the account.
Note: An individual may establish a Coverdell ESA and name themselves as the designated beneficiary.
Exclude distributions as an asset for the designated beneficiary for nine months following the month of receipt. Exclude contributions as an asset for anyone that contributes money to the account beginning the month following the month the funds are put into the account.
Example:
Mary contributes $1,000 from her savings account to her daughter’s Coverdell ESA in June.
Action:
Count the $1,000 as an asset in June. Exclude the $1,000 beginning in July.
Any contributions made to a Coverdell ESA by a client who is not also the designated beneficiary must be evaluated as a transfer of assets if the client applies for MA Payment of Long-Term Care (LTC) services.
Funds in a Coverdell ESA may be transferred or ”rolled over” to a member of the beneficiary’s family. When a designated beneficiary ”rolls over” funds in a Coverdell ESA to a family member, the rollover must be evaluated as a transfer of assets if the client applies for MA Payment of LTC services.