The amount of a grant, scholarship, or fellowship used for paying tuition, fees, or other necessary educational expenses is excluded income. It is not counted when determining eligibility for benefits. However, any part of the financial assistance that is made available only for basic living needs, such as housing and food, is not excluded. 55 Pa. Code § 181.123(2)
Grants or loans to undergraduate students that are made or insured under a program administered by the Secretary of the U.S. Department of Education are also considered to be excluded income. (See section 507 of the Higher Education Amendments of 1968—20 USCA Section 1060 note and 1091 note.)
The following are examples of these grants and loans:
PELL grant, formerly known as the Basic Educational Opportunity Grant (BEOG).
Supplemental Educational Opportunity Grant (SEOG).
Carl D. Perkins Loan program, formerly known as the National Direct Student Loans (NSDL).
The State Student Incentive Grant (SSIG).
The PLUS program.
The Robert T. Stafford Loan program, formerly known as the Guaranteed Student Loan.
The Paul Douglas Teacher Scholarship.
Pennsylvania Higher Education Assistance Agency (PHEAA) grants and loans.
The Robert C. Byrd Honors Scholarship.
Nursing Loans and Health Professional Loans (NL and HPL).
Updated September 27, 2018, Replacing May 28, 2015