Procedure: Budgeting Educational Income
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This section provides information about procedures for budgeting educational income.
Procedures
Begin an educational income budget with the month in which the total or the first payment the participant receives or expects to receive. Document the case file(g) with the reason for the date selected.
When the participant receives educational income after the period the income is intended to be covered, consider the income as a lump sum when received. (See Lump Sum – Liquid Assets)
When income is received after the beginning of the period it is intended to cover, but before the end of that period, complete all of the following steps:
●Average the income over the period it is intended to cover.
●Budget the income for the remaining months of that period.
●Do not count the prorated amount from prior months.
See Example 1 for details on determining educational income.
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.
AZTECS Keying Procedures
UNIE is used to key unearned educational income. Use UNIE to add, change or remove educational income.
EDWO is a calculation screen that establishes countable amounts of unearned educational income.
To access EDWO, key all of the following on UNIE:
●Key Y in the FIN AID field.
●Key the Educational Income Type Code in the TYP field.
●Press ENTER for EDWO to display.
NOTE AZTECS auto-populates the SCH ST field using information keyed on SSDO.
On EDWO, key all of the following:
●Educational income in an AMOUNT field.
●Education Income Type Code in the TYPE field.
●Education expense in an AMOUNT field.
●Education Expense Type Code in the TYPE field.
●The number of months to divide the income by in the PERIOD field. The period range limit in AZTECS is from 01 months to 60 months.
NOTE Do not change the number (1) in the PERIOD field when a monthly amount is budgeted.
●Y in the SEND (Y/N) field to send a screen print to OnBase
NOTE AZTECS does not save information keyed on EDWO. A screen print of EDWO must be placed in the case file(g).
●Press ENTER twice to complete all of the following:
The first time AZTECS calculates all of the following regarding the amount of education income to budget:
●The countable amount of education income after deducting expenses.
●The net amount that is divided by the number of months in the PERIOD field.
The second time AZTECS returns to UNIE.
After keying EDWO, UNIE displays the monthly countable amount for each program.
NOTE When a participant receives more than one type of educational income, an EDWO must be keyed and printed for each type.
Examples
1) The participant has two sources of countable unearned educational income. A $2400 deferred private loan intended to cover six periods (months) and a $600 scholarship from his employer intended to cover three periods (months). The student has allowable educational expenses (some used for four periods and another for six).
Complete all of the following calculations:
●Countable income $2400 loan amount. To determine the amount to cover six periods, complete all the following:
Divide $2400 by six
The results equal $400 in income
●Countable income $600 scholarship amount. To determine the amount to cover three periods, complete all of the following:
Divide $600 by three
The results equal $200 in income
●The adding all sources of income together, as follows:
$400 + $200
Total income equals $600
●To determine the allowable Expense amount, complete all of the following:
$1200 for mandatory fees for six periods (months) equals $200 per month
$800 for books and supplies for four periods (months) equals $200 per month
Total allowable expense is $400 ($200 + $200)
●The results of the income amount with the expense amount subtracted is the total adjusted income amount.
$600 income minus $400 expenses equal a $200 adjusted income amount.
Use the $200 total as a monthly amount over the longest period in this example, it is six periods.
last revised 10/02/2023