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Chapter: 1800 Income

Program: CIC 20 A written agreement with the lending institution or grantor of the educational income that contains the necessary dates and that is signed by the individual will also serve as documentation. 1850.1300 INCOME FROM OTHER SOURCES (CIC) This section presents the application of policy for other sources of income. 1850.1301 Loans (CIC) All loans, including loans from private individuals as well as commercial institutions with intent to repay, are excluded income.

When the eligibility specialist questions that a loan exists, the individual must verify the existence of the loan. A signed statement from the loan provider that confirms that repayments are being made or will be made in accordance with an established payment schedule is sufficient.

When an individual is the borrower:

Proceeds of a valid loan received by the borrower are not income in the month of receipt. If the loan is determined not to be valid, the proceeds are considered income in the month received. The amount remaining from the loan in the month following receipt is considered as an asset to the borrower.

When an individual is the lender:

If the loan is determined to be valid and negotiable, the loan is a countable asset; only the interest portion of the payment received is excluded as income to the lender. The principal portion of the payment is conversion of an asset, not income. If the loan is determined to be not valid and not negotiable the loan is not a countable asset, the entire payment received (principal and interest) is counted as income. 1850.1302 Contributions (CIC) All direct money payments from any source that represent gain or benefit to the individual are included as unearned income.

A contribution is cash received by any member of the standard filing unit. A contribution may be received on a one-time basis or on regular or irregular intervals.

An allowance is considered a contribution when paid to an individual by a person outside the individual's standard filing unit. This would apply to money from a non-legal father when there is a legal father.

The individual must provide verification of the amount received as a gift or contribution. When written verification is unavailable, documentation must include the following information:

1. date oral verification received, 2. source of verification, 3. source of funds, 4. date made, and 5. the amount.

Standard verbal verification policy applies. If the individual is unable to obtain verification, a request for exception to verification of income may be submitted to the Region or Circuit Program Office. The Region or Circuit Program Office may grant the supervisor the authority to approve or to deny the policy exception.