Medicaid Policy
Medicaid Policy
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Aged, Blind, Disabled, and Long Term Care
When a student retains educational income, apply the following provisions to decide if the funds are excluded from resources, and how long to exclude the funds, depending on the source and intended use of such funds.
Student financial assistance received under Title IV of the Higher Education Act of 1965 or under Bureau of Indian Affairs (BIA) student assistance programs regardless of use. These funds are excluded from resources for as long as the individual has them. Interest earned and retained on these excluded funds is not excluded as a resource. (See 415-6 for the types of Title IV assistance and for income exclusion.)
Grants, scholarships, fellowships and gifts other than Title IV or BIA.
Exclude from resources for nine months after the month of receipt, any funds received from grants, scholarships, fellowships and gifts (or portion of gifts) that are used to pay for tuition, fees, books or other necessary educational expenses. This includes funds being held for future educational expenses the student expects to pay. Begin counting any remaining amounts as a resource in the 10th month after the month of receipt. This exclusion does not apply to funds set aside or actually used to pay for food, clothing or shelter or other non-educational expenses.
Count any excluded retained funds as income in the month they are used for expenses other than necessary educational expenses or when the individual no longer expects to use the funds for educational expenses. Any amounts remaining after that month will then count as a resour
Non-Title IV Loans. Do not exclude from countable resources retained funds from loans to pay educational expenses that are not federal educational loans under Title IV of the Higher Education Act or BIA student assistance programs. (see 415-6)
Interest earned on retained educational income is not excluded from resources.
Medically Needy Family, Child, and Pregnant Woman
Do not count educational assistance and college work study as a resource. The portion of Veteran's educational assistance intended for family members is considered a resource when there are funds left after the month of receipt. The student's portion is always exempt. (See 415-6 for more info).