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2860.00.00 EDUCATIONAL INCOME DEFINITION Educational income includes, but is not limited to, grants, scholarships, fellowships, work-study, veterans’ educational benefits, and deferred educational loans (loans received for educational expenses which are to be repaid at a later date, usually after graduation), that is used for tuition and mandatory fees at an institution of post-secondary education, including correspondence schools at that level or a school at any level for the physically or mentally handicapped. Wages from graduate assistantships are not treated as educational income if they are subject to taxation and are available for meeting the individual's non-educational living expenses; they are budgeted as earned income. A loan on which repayment must begin within 60 days after receipt is not considered a deferred loan. For MED 3 AGs, all scholarships, awards, or fellowship grants used for educational purposes and not for living expenses are not taxable income and are not utilized in the calculation of MAGI. All scholarships, awards, or fellowship grants used for non-educational expenses, such as living expenses, are taxable income and are utilized in the calculation of MAGI, unless they are specifically exempted by federal or state law.40 2860.05.00 EXEMPT EDUCATIONAL INCOME (MED 1, 2, 4) Grants, awards, scholarships, and work study income received under Title IV of the Higher Education Act, or the Bureau of Indian Affairs (BIA) programs are exempt. For MED 1, 2, 4 AGs, they are exempt only for undergraduate students. Included are the following: • Basic Educational Opportunity Grants (BEOG or PELL Grants) • Presidential Access Scholarships (Super PELL Grants) • Supplemental Educational Opportunity Grants (SEOG) • State Student Incentives Grants (SSIG) • Federal Work Study Funds (NOTE: Not all federal work study funds come under Title IV of the Higher Education Act.) (Refer to IHCPPM 2860.15.00.) • TRIO Grants (which go to organizations or institutions for students from disadvantaged backgrounds): o Upward Bound (Some stipends go to students) o Student Support Services o Robert E. McNair Post-Baccalaureate Achievement. • Robert C. Byrd Honors Scholarship Program • College Assistance Migrant Program (CAMP) for students whose families are engaged in migrant and seasonal farm work • High School Equivalency Program (HEP) • National Early Intervention Scholarship and Partnership Program.