U Educational Assistance

Revised 12/30/2019

Policy

How Educational Assistance is treated depends on the following:

If the payment is...	And the customer is eligible for...	Then the treatment is...
Financial assistance, including work study, received under Title IV of the Higher Education Act of 1965	Any program	Excluded.
Educational Assistance, including work study, received under BIA student assistance programs.	Any program	Excluded.
Empowerment Scholarship Agreement received from the AZ Department of Education	Any program	Excluded.
For any other type of educational award or gift	Any program	Excluded when used for educational expenses. Counted as unearned income when used for living expenses.
Veteran’s Administration (VA) Educational Benefits	ALTCS SSI-MAO MSP	Excluded if paid under a program for vocational rehabilitation. If not part of vocational rehabilitation, counted after deducting educational expenses.
	Adult Caretaker Relative Pregnant Woman Child, or KidsCare	Excluded.
State funded student loans and other loans	Any program	Excluded.
Work study that is not paid under Title IV or a BIA program.	Any program	Counted as earned income.

 

Definitions

Term	Definition
Educational expenses	Includes tuition, books, lab fees and other required expenses to enroll in a course.

 

Proof

Income is first obtained through the Federal and State Data Services Hubs. If needed, other proof includes:

• Request for Verification of Student Information (DE-209) form;

• Award letter;

• Empowerment Scholarship Agreement

• Loan documentation;

• Written statement from the school; or

• Collateral contact with the school.

 

Types of proof for education gifts include, but are not limited to:

• Written statement from the person or entity providing the educational gift; and

• Collateral contact with the person or entity providing the educational gift.

 

Expenses must be verified to deduct the expense from the income. Proof of expenses is only needed if the educational income is countable. Types of proof include, but are not limited to:

• Request for Verification of Student Information (DE-209) form;

• Receipts;

• Written statement from the school; or

• Collateral contact with the school.

 

Legal Authority

This requirement applies to the following programs:

Program	Legal Authorities
ALTCS SSI-MAO Medicare Savings Program Freedom to Work	42 USC 1382a(b)(7) 20 CFR 416.1124(c)(3) 20 CFR, Appendix to Subpart K of Part 416, Section III AAC R9-22-1909
Adult Caretaker Relative Pregnant Woman Child KidsCare	42 CFR 435.603(e) 42 CFR 457.10, 300, 301 and 315