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Unearned income from each source received or anticipated to be received during the month of application is counted for that month.

a. Full Month’s Income When verification is reflective of a full month’s amount to be received or anticipated to be received the income from that source is calculated using the Projected Monthly Income method. b. Not a Full Month’s Income This situation often occurs when an individual begins or stops receiving payments resulting in the first (1st) or last payment covering less than a full month’s payment amount. The amount received or anticipated to be received from the source reflecting less than the full month’s payment is included in the family’s income.

2. Projecting Unearned Income by Source

a. Educational Income Educational income is calculated separately from any earned or other unearned income the family receives. Countable educational income is the funding received for educational purposes minus the allowable educational expenses. Educational income received in the form of a loan is not included in the countable educational income.

The countable educational income is prorated over the educational term it is intended for, even if some of the time is outside the family’s certification period. This prorated amount is then added to the family’s income for those months of the term included in their certification period. See sections 4080-3. 3 Educational Income and 4080-4 C. Educational Expenses.

Designees total the countable educational income from all sources; subtract all the allowable expenses to determine the total countable educational income for the term; and divide by the number of months in the term the income is intended to be used, to arrive at the monthly countable educational income.

A family’s educational income is anticipated for the full eligibility period based on the information provided. If there are changes in the amount the family receives due to changes with each term it must be reported if it causes the family’s