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MISSISSIPPI DIVISION OF MEDICAID Eligibility Policy and Procedures Manual CHAPTER 200A – Income: ABD Categories Page |83 Effective Month: July 2025 Treatment of Grants, Scholarships, Fellowships or Gifts Not Used or Set Aside Any portion of grants, scholarships, fellowships, or gifts that is not used or set aside for paying tuition, fees, or other necessary educational expenses is countable income in the month received and a resource the month after the month of receipt, if retained. Treatment of Funds Set Aside, But Not Used for Paying Educational Expenses If any portion of grants, scholarships, fellowships or gifts that is excluded from resource because it is set aside to pay for necessary educational expenses is used for some other purpose, the funds are income at the earliest of the following points: • In the month that it is spent; or • The month the individual no longer intends to use the funds to pay necessary educational expense. Excluded Funds Not Spent If the funds set aside to pay for necessary educational expenses are not spent after the 9th month, they are countable resources as of the 10th month following the month of receipt. 200A.07.31C DETERMINING COUNTABLE AND EXCLUDABLE AMOUNTS OF ASSISTANCE • Verify that the assistance is a grant, scholarship, fellowship or gift. o Use documents in the individual’s possession, contact with the institution or provider to verify the nature of the assistance. If the assistance is not totally excluded as Title IV HEA or BIA, verify the amount, date(s) of payment, payee and source of payment/payer, etc. • Determine the amount of tuition, fees, and other necessary educational expenses. o Use receipts, bills with cancelled checks, contact with the provider, etc., to verify expenses paid. If an expense is verified as incurred, but not paid, assume it will be paid. A signed allegation is acceptable evidence of expenses when it is unreasonable to obtain other evidence, e.g., daily bus fare, small expendable items, etc., but this does not apply to tuition, fees or books. • Deduct the amount of tuition, fees and other necessary expenses from the gross amount of assistance. • Exclude any remainder from income if the individual alleges it will be used for necessary educational expenses. o Any portion not used or set aside is income in the month received and a resource the following month.