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Effective: December 1, 2006 |
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20.25.55ar1 - Student Financial Aid (Archive) |
Archived: March 1, 2009 |
Loans, grants, scholarships and work study funds received by clients while attending school must be evaluated to determine if this income is counted or excluded.
For further information on budgeting student financial aid income, see Income Calculation (Community).
MinnesotaCare and MA Method A.
For all programs, exclude the portion of veterans' benefits designated as educational assistance benefits. Treat the remaining amount of the benefit as unearned income.
Allowable student expenses for all programs are:
l Tuition.
l Mandatory fees.
l Course and lab fees.
l Books.
l Supplies and equipment required for course work.
l Child care costs incurred while at school and in transit.
l Transportation to and from school.
Note: Use the same transportation expense rate as allowed for self-employment transportation.
Exclude training expenses paid through the Trade Adjustment Reform Act of 2002.
For undergraduate students exclude all of the following:
l Student financial aid.
l State work-study income.
l Paid internship income.
For graduate students:
l Exclude income from Bureau of Indian Affairs (BIA) student assistance programs.
l Exclude all Title IV financial aid which includes:
n PELL or BEOG grants.
n Presidential Access Scholarships (Super PELL).
n Supplemental Education Opportunity Grants (SEOG).
n Minnesota State Scholarships and Grants.
n Stafford Loan (formerly Guaranteed Student Loan).
n PLUS loans.
n Perkins loans (formerly NDSL).
n SLS (formerly ALAS).
n Robert C. Byrd Honor Scholarships.
n Federal work study income.
n Bureau of Indian Affairs Grant Program.
n High School Equivalency Program (HEP).
n College Assistance Migrant Program (CAMP).
n Upward Bound (Trio Grants).
n National Early Intervention Scholarship and Partnership Program.
n Robert E. McNair Post-Baccalaureate Achievement.
l Count financial aid when it is available to meet the client’s educational expenses and budget it over the months it is intended to cover, whether or not the client attends school.
n Count as earned income any financial aid that requires a student to work in order to receive the aid.
Note: Do not allow deductions for educational expenses from earned income.
Examples include:
m Graduate student fellowships.
m Internships.
m Stipends.
m Teaching assistant income.
n Count as unearned income any non-Title IV or BIA aid.
Note: Deduct allowable student expenses listed in the general provisions from counted unearned financial aid income for necessary educational expenses. Do not include a deduction for living expenses.
Examples include:
m Graduate student scholarships.
m Stipends.
m Any other types of grants that do not require teaching or research or any other similar work.
l To arrive at a monthly amount to budget follow these steps:
1. Determine the net counted unearned financial aid by subtracting allowable educational expenses (in general provisions) for a given period of time (semester, quarter, year) from a graduate student’s counted unearned financial aid over the same period of time.
2. Divide the result from Step 1 by the remaining number of months in the time period.
3. Budget the monthly amount.
n If the client receives the aid before the school year begins, do not budget the income until the period it is intended to cover.
n If the financial aid was received prior to the application, do not budget it for that period.
l For MA Method A only: Exclude gifts used to pay tuition or education related expenses.
Note: This includes funds deposited into an account under the Uniform Gift to Minors Act (UGMA) by someone other than the client, to which the client does not have access.
Example:
Abigail is a 19 years old college student who lives on her own with her young child. Her father had deposited money into an account under the UGMA. These funds are intended for Abigail’s college expenses. Abigail is not able to withdraw these funds until age 21. Her father withdraws funds from this account and pays tuition directly to the college.
Action:
These funds are excluded.
Exclude the following financial aid:
Note: Do not deduct allowable student expenses from the excluded aid.
l Financial aid loans, including loans from the Tribal Development Student Assistance Revolving Loan Program.
l Title IV financial aid in the month the client receives it.
l Financial aid used to fulfill an approved Plan to Achieve Self Support (PASS) for disabled or blind people.
l Training expenses paid through the Trade Adjustment Reform Act of 2002.
l Gifts used to pay tuition or education related expenses.
Note: This includes funds deposited into an account under the Uniform Gifts to Minors Act (UGMA) by someone other than the client, to which the client does not have access.
l Paid internships for undergraduates.
Count all other available financial aid as income in the month received.
l Do deduct allowable student expenses listed in the general provisions and the following expenses:
n Work expenses and deductions from work study income.
n Any impairment-related expenses necessary to attend school or perform school work.
l Consider student financial aid available to the client when the client or client's representative actually receives it.