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Title 5: Centrally Administered Programs Page 59 Iowa Department of Human Services Employees’ Manual Chapter E: Healthy and Well Kids in Iowa (hawk-i) Types of Income Revised July 3, 2009 Job Corps

Exempt as income the value of the room and board. Also exempt the clothing allowance, because it is a vendor payment. Job Corps makes the payment directly to the stores.

NOTE: Job Corps participants are considered full-time students, but may be in high school or post-secondary education. Accept the participant’s word is as to which it is. If the participant’s statement is questionable, the participant must obtain verification from Job Corps.

Exempt as income only the earnings of participants 19 or younger who are in high school. See Student Earnings for more details. Loans 441 IAC 86.2(2)“b”(20) Exempt bona fide loans from any source, including undergraduate and graduate student loans when: ♦ The loan is from an institution or person engaged in the business of making loans, and ♦ There is a written agreement to repay the money within a specified time.

When the loan is from a person who is not normally engaged in the business of making loans, consider the loan legitimate or bona fide when it meets at least one of these criteria:

♦ There is a borrower’s acknowledgment of obligation to repay (with or without interest). There must be an agreement between the person making the loan and the borrower that the money is a loan. This agreement may be oral or in writing.

♦ The borrower expresses intent to repay the loan when funds become available.

♦ There is a timetable and a plan for repaying the loan.