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Chapter: 1800 Income Program: MSSI, SFP 36

Examples of necessary educational expenses include books, supplies, laboratory fees, student activity fees, carfare, and impairment-related expenses necessary to attend school or perform schoolwork (e.g. special transportation to and from classes, special prosthetic devices necessary to operate school machines or equipment etc.). 1840.1205 Grants, Scholarships, or Fellowships (MSSI, SFP) Not all educational monies are received as grants, scholarships, gifts or fellowships; therefore, these sources of income are included:

1. Tuition and subsistence allowances to members of the Armed Forces of the U.S. who are students at an educational institution operated by the U.S., such as the U.S. Naval Academy and the U.S. Military Academy; 2. Retainer payments and subsistence allowances to students under the Reserve Officer's Training Corps (ROTC); 3. Any amount paid or allowed an individual for pursuit of studies or research when the amount represents payments for services subject to the direction or supervision of the grantor or used primarily for the benefit of the grantor; and 4. Grants-in-aid with a work requirement, and any grants requiring performance of work before, during, or after pursuit of study or research. 1840.1206 Verification of Educational Income (MSSI, SFP) All student income from educational grants, gifts, scholarships, and loans must be verified if questionable. Case record documentation must include the name of the educational institution and the amounts, dates of payment, and payee, of any grants, gifts, scholarships and loans.

The eligibility specialist may obtain this information by using documents in the individual’s possession or by phoning the school or loan office or the grantor of the educational income. The eligibility specialist must record the name, position, and phone number of the person providing the information.

A written agreement with the lending institution or grantor of the educational income that is signed by the individual and contains the necessary dates and amounts will also serve as documentation. 1840.1300 INCOME FROM OTHER SOURCES (MSSI, SFP) This section presents the application of policy for other sources of income. 1840.1301 Loans (MSSI, SFP) All loans including loans from private individuals as well as commercial institutions are excluded income if there is an intent to repay.

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