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1. The following are specific types of educational assistance:

a) VA Educational Benefits, which are discussed in Rule 7.10);

b) Assistance under Title IV of the Higher Education Act (HEA) of 1965 or Bureau of Indian Affairs;

1) All student financial assistance received under HEA or BIA assistance programs is excluded from income and resources, regardless of use. 2) The resource exclusion does not have a time limit, i.e., regardless of how long held, the assistance is excluded from resources.

3) Interest and dividends earned on unspent educational assistance under Title IV HEA and BIA are excluded from income.

c) Grants, Scholarships, Fellowships and Gifts;

1) Grants, scholarships and fellowships are defined as follows:

(a) These are amounts paid by private nonprofit agencies, the US government, instrumentalities or agencies of the US, state and local governments, foreign governments and private concerns, e.g., a private citizen, to enable qualified individuals to further their education and training by scholastic or research work, etc.

2) Gifts are defined as follows:

(a) A gift is something a person receives which is not repayment for goods or services provided and not given by legal obligation on the giver’s part. To be a gift, something must be irrevocably given.

3) Any portion of a grant, scholarship, fellowship or gift used for paying tuition, fees, or other necessary educational expenses at any educational institution, including vocational or technical education, is excluded from income.

4) Any portion of such educational assistance that is not used for paying current tuition, fees or other necessary educational expenses but will be used for paying this type of educational expense at a future date is excluded from income in the month of receipt.

(a) This exclusion does not apply to that portion set aside or actually used for food, clothing or shelter.

5) 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 income