IM-#155 November 21, 2002
- Loans or grants to an undergraduate student for educational purposes made or insured under any program administered by the Commissioner of Education. This includes Basic Educational Opportunity Grants Program (BEOG), Supplemental Educational Opportunity Grants (SEOG), National Direct Student Loans (NDSL), Guaranteed Student Loans, and PELL grants.
- Scholarship monies used to pay for education not available for current living expenses.
- Other loans and grants received by the family. If an individual receives a grant, not available for current living expenses, exclude it as income in preparing the budget. This includes HUD Community Development Block Grants for property rehabilitation.If the family receives a bona fide loan from any source, exclude it as income in preparing the budget.A loan is bona fide if supported by a written agreement to repay within a specified time or if received from an individual or establishment engaged in the business of making loans. If neither of the above conditions apply, consider a loan bona fide if the participant acknowledges (either verbally or by a written statement):
- an obligation to repay (with or without interest),
- a pledge of real or personal property or anticipated income with the intent to repay when funds become available or future anticipated income is received; or
- a written timetable and plan for repayment.