Confusion Surrounding Student Financial Aid

Written by Katie Rawson, Spectrum Enterprises

Many managers are still unsure if they should count financial aid as income.  All forms of financial aid are typically excluded from income.  This includes grants, scholarships, educational entitlements, work study programs, and financial aid packages.  The exception to the rule is for students receiving Section 8 assistance.  For those students all financial assistance in excess of amounts received for tuition is included in annual income unless the student is over the age of 23 (meaning 24 or older) with dependent children or the student is living with his or her parents who are receiving Section 8 assistance.

You may refer to the 4350.3 REV-1, page 5-10, to review this information.

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