10:87-5.11 Treatment of educational assistance

(a) Educational assistance includes grants, scholarships, fellowships, work study, educational loans on which payment is deferred, veterans' educational benefits and the like. (b) To be excluded, educational assistance, as defined at (a) above, must be awarded to a household member enrolled at a: 1. Recognized institution of post-secondary education (meaning any public or private educational institution which either normally requires a high school diploma or equivalency certificate for enrollment, or admits persons who are beyond the age of compulsory school attendance in which the institution is legally authorized or recognized by the State to provide an educational program beyond secondary education in the State, or provides a program of training to prepare students for gainful employment, including correspondence schools at that level); 2. School for the handicapped; 3. Vocational education program; 4. Vocational or technical school; or 5. A program that provides for obtaining a secondary school diploma, or the equivalent. (c) To be excluded, the education assistance must also be used for or identified (earmarked) by the institution, school program, or other grantor for the following allowable expenses: 1. Tuition; 2. Mandatory school fees, including the rental or purchase of any equipment, material, and supplies related to the pursuit of the course of study involved; 3. Books; 4. Supplies; 5. Transportation; 6. Miscellaneous personal expenses, other than normal living expenses, of the student incidental to attending a school, institution or program. No portion of any educational assistance that is provided for normal living expenses (room and board) shall be considered a reimbursement excludable under this provision. 7. Origination fees and insurance premiums on educational loans; or 8. Dependent care. i. Amounts excluded for dependent care costs shall not be excluded under the income exclusion for reimbursements at N.J.A.C. 10:87-5.9(a)9iii(3). ii. Dependent care costs which exceed the amount excludable from income shall be deducted from income in accordance with N.J.A.C. 10:87-5.10(a) 4. (d) In order to allow an educational income exclusion based on use (as cited in (c) above), the allowable expense must be incurred or anticipated for the period the educational income is intended to cover regardless of when the educational income is actually received. If a student uses other income sources to pay for allowable educational expenses in months before the educational income is received, the exclusions to cover the expenses shall be allowed when the educational income is received. When the amounts used for allowable expense are more than amounts earmarked by the institution, school, program or other grantor, an exclusion shall be allowed for amounts used over the earmarked amounts. Exclusions based on use shall be subtracted from unearned educational income to the extent possible. If the unearned educational income is not enough to cover the expense, the remainder of the allowable expense shall be excluded from any earned educational income. (e) A student's total educational income exclusions granted under this subchapter cannot exceed that individual's total educational income. History HISTORY: New Rule, R.1989 d.121, effective February 21, 1989. See: 20 New Jersey Register 2689(a), 21 New Jersey Register 511(b). Amended by R.1990 d.565, effective November 19, 1990. See: 22 New Jersey Register 2219(a), 22 New Jersey Register 3486(a). Change of "used" for "made available" for educational expenses in accordance with P.L. 100- 50. Repeal and New Rule, R.1998 d.498, effective October 5, 1998. See: 30 New Jersey Register 1928(a), 30 New Jersey Register 3669(b). Section was "Treatment of educational assistance".