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245 (07/2026) Chapter 2:Eligibility • Section 5: Financial eligibility To determine the amount of educational income to exclude, educational expenses listed in the financial aid letter are used unless one of the following is true: • The student provides verification of amounts different than those listed in the award letter, in which case the verified amounts from the student are used. • The student receives child care benefits – ERDC benefits or other child care subsidies. The amount the student actually pays for child care (including the ERDC copay) is excluded as educational income instead of the amount shown in the award letter. • The student states that actual transportation costs exceed the amount allowed for the expense in the award letter. In that situation, the number of miles to and from school is multiplied by 20 cents. The product or the amount shown in the award letter, whichever is greater, is excluded. The following items are excluded: • Educational income authorized by the Carl D. Perkins Vocational and Applied Technology Education Act or Title IV of the Higher Education Act or made available by the Bureau of Indian Affairs • All income from educational loans. The cost of the following items from the remaining educational funds (including non-Title IV work study, externship, graduate assistantship, graduate fellowship wages and internship) is excluded: • Tuition, mandatory fees, books and supplies, transportation, required rental or purchase of equipment or materials charged to students enrolled in a specific curriculum, all miscellaneous personal expenses (except room and board), and loan originator fees and insurance premiums required to obtain an educational loan • In all programs except ERDC, dependent care. After allowing exclusions, the remaining income is treated as follows: • Income received through work study (including work study provided through a VA program or other educational program), fellowships and teaching-assistant positions (not previously indicated to be excluded) is considered earned income. • Educational income not indicated in the above bullet is prorated over the period it is intended to cover. If the applicant has already received the income, the prorated amount is counted monthly beginning the first month of the period. If the applicant has not received the income at the time the eligibility determination is made, the prorated income is counted starting the month the applicant expects to receive it. Educational awards paid under the National and Community Service Trust Act of 1993 (including AmeriCorps) are excluded.