Grants, Loans, Awards and Scholarships
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This section includes information about income provided by Title IV of the Higher Education Act.
Policy
Payments provided by Title IV of the Higher Education Act are considered Educational Income and are not countable.
Countable income is used to determine an income budget. (See Income Budgeting to see how FAA determines the income budget.) FAA needs to know about income that is both countable and not countable to determine whether a budgetary unit’s expenses are exceeding their income. (See Income Eligibility for more information about how FAA uses countable and not countable income.)
These payments include, and are not limited to, any of the following:
●BEOG/PELL Grant-Basic Education Opportunity Grant
●Super PELL Grant-Presidential Access Scholarship
●SEOG Supplemental Educational Opportunity Grant
●SSIG State Student Incentive Grant
●TRIO Grant-Special Disadvantaged Student Programs
●CAMP College Assistance Migrant Program (Special Migrant and Seasonal Farm Work Programs)
●Robert C. Byrd Honors Scholarship Program
●Work Study Program (Not all federal work study funds are under Title IV of the Higher Education Act)
●Income Contingent Direct Loan Demonstration Project
●NDSL (Perkins Loan) Direct Loan to Students in Institutions of Higher Education.
●FDSLP Federal Direct Student Loan Programs (formerly known as GSL and FFELP)
●HEP High School Equivalency
●National Early Intervention Scholarship and Partnership Program
●Carl D. Perkins Vocational and Applied Technology Education Act
Procedures
When the participant is present, have them sign the Authority to Release (FAA‑1765A) form to contact any companies or businesses involved. The FAA-1765A can be faxed or emailed to the participant's employer when it is not possible to use the Application for Benefits (FAA-0001A) or the HEAplus Authority to Release signed statement.
Verification
System interface and the case file(g) must be reviewed before verification is requested. No additional verification is needed when AZTECS interface or HEAplus hubs have verified the information.
The participant has the primary responsibility for providing verification. (See Participant Responsibilities – Providing Verification for additional policy.)
For NA, all of the following income is required to be verified before eligibility is determined:
●Reported on a new application, during the interview of a new application, or changes reported before the eligibility determination of a new application.
●Changes after an eligibility determination of a new application (e.g., a renewal application, mid approval contact, etc.) and any of the following apply:
The source of the income has changed.
The income is questionable(g) or unclear(g).
The reported income amount has changed by $51 or more.
The previous verification in the case file is more than 59 calendar days old.
For CA, all income is required to be verified before determining eligibility.
Examples of verification that can be used for Grants, Loans, Awards and Scholarships include, and are not limited to, any of the following:
●Award letter
●Loan paper
●School
●Student expenses
●Bank loan funds
●Participant statement for transportation expenses
●Expense receipts
●School budget sheet or computer printout
●Assistance payments records
●Benefit award letters from SSA, Statement of Earnings VA, and other agencies
●Bank records
●Current check reflecting gross income
●Federal or state tax forms
●Insurance policies
●Contracts
●Signed statement from the agency or payer providing the income
●Participant Statement verification when one of the following occur:
Obtaining documented or collateral contact verification may cause harm or undue hardship(g) for the participant.
When all of the following occur:
●Other attempts to obtain the verification have failed. This includes documented and collateral contact verification.
●The participant has requested assistance from FAA.
●The worker has evaluated the request for assistance and cannot obtain the verification from another acceptable source.
●The participant statement is not questionable(g).
AZTECS Keying Procedures
For all the Grants, Loans, Awards and Scholarships listed above, provided by Title IV of the Higher Education Act, key EI in the TYPE field on UNIE.
Grants, loans, and scholarships paid from any source other than the previously listed Title IV or Title XIII sources are also not countable. Key GN in the TYPE field on UNIE.
Document the case file(g) thoroughly to support keyed codes, amounts, and frequencies. See the AZTECS Data Entry Guide for instructions on keying the AZTECS income screens.
NOTE Documentation must support determinations of eligibility and benefit level. Document in sufficient detail to ensure that any reviewer can assess whether the determination is reasonable and accurate. Include specific information regarding the reason the income is determined to be normal. (See Budgeting Income Documentation Requirements for additional information.)
Legal Authorities
AAC R6-12-503(2)(a-h)
A.R.S 46-292-P01
7 CFR 273.9(b)(1)(vi)
7 CFR 273.9(c)(3)(i)
7 CFR 273.9(c)(1)(iv)
7 U.S.C. 2014(d)(3) a-c
7 U.S.C. 2014 (d)(16)
last revised 10/02/2023