DHHS - CHIP Policy Manual
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OBSOLETE POLICY

CHIP MANUAL

 

402-10  Educational Assistance

Effective October 1, 2010

Previous Policy

  1. Veteran's Education Assistance

    • The student portion is exempt.

    • Any amounts intended for family members is NOT exempt.

  2. Title IV of the Higher Education Act of 1965 or Bureau of Indian Affairs (BIA)

    • Do not count any type of education assistance or college work study.

    • Exclude income from all student financial assistance an individual receives under Title IV of the Higher Education Act of 1965 or under the BIA student assistance program, regardless of use.

    • Interest earned on retained funds is excluded from income.

Examples of Title IV programs include:

  1. Pell Grants (formerly BEOG)

  2. Federal Supplemental Educational Opportunity Grants (FSEOG)

  3. State Student Incentives (SSIG)

  4. Academic Achievement Incentive Scholarships

  5. Byrd Scholarships

  6. Upward Bound

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

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

  9. LEAP (Leveraging Educational Assistance Partnerships)

  10. SLEAP (Special Leveraging Educational Assistance Partnerships)

  11. Work-Study Programs

  12. Academic Competitiveness Grant

  13. National SMART Grant

Note:  State educational assistance programs, including work study, funded by LEAP or SLEAP are programs under Title IV of the Higher Education Act.

  1. Loans Other Than Title IV Federal Educational Loans

    • Cash received from non-Title IV Federal Educational loans is not counted as income, because a bona fide loan that must be repaid is not income.

  2. Grants, Scholarships, Fellowships and Gifts Received

    • Any type of grant, scholarship or fellowship is exempt.  The funding source does not matter.  For example, Title IV, non-Title IV, BIA or non-BIA grants, scholarships and fellowships are all exempt.

  3. Gifts Received

    • Cash gifts received for educational purposes from any person is the same as a cash contribution.  (See 402-8.)

  4. Work Study, more information

    • There are two types of work-study. Federal Work Study (FWS) and non-Federal Work Study (non-FWS).

    • Both types of work-study are taxable.

    • Other types of work study are exempt income.