Income

Student Income

Student income is any specific income paid for attending school or training. It includes educational:

Deferred payment loans
Grants
Scholarships
Fellowships
College work study
Veteran's benefits

Meant for use at a(n):

Institution of post-secondary education (including correspondence school)
School for the physically or mentally disabled (at any level)
High school or program that provides for the completion of a secondary school diploma or the equivalent (including correspondence school)
Vocational education program.

Reminder: The income regulations in this section apply to all student income received by an eligible household member, regardless of whether that member is considered a “student” or a “nonstudent” (such as a disabled person, high school student, or 17-year-old college student) for CalFresh purposes.

Income Exclusions

In general, education assistance is considered to be an excluded income for CalFresh. The student income listed below is excluded from consideration as income for CalFresh.

EXEMPT STUDENT INCOME	ADDITIONAL INFORMATION OR RESTRICTIONS
Payments or reimbursements entirely or partially funded by Title IV of the Higher Education Act (PL 102-325)	Includes the following: Pell Grants California State Scholarship (CAL Grant A) California Opportunity Grant (CAL Grant B) Occupational Educational and Training Grant (CAL Grant C) Federal Supplemental Educational Opportunity Grant (SEOG) Perkins Loan Federal Direct Loan Demonstration Program Family Education Loans: Stafford Loan Supplemental Loans to Students (SLS) PLUS Loan Consolidation Loan Grants to Students in Attendance at Institutions of Higher Education Model Program Community Partnership and Counseling Grants California Guaranteed Student Loans (CGSL) California Loans to Assist Students (CLASS) Federal Parent Loans for Student Program (PLUS) Federally insured student loan program Income Contingent Direct Loan Demonstration Program.
Payments or reimbursements completely or partially funded by Title IV of the Higher Education Act (PL 102-325) (Cont.)	Early Outreach and Student Services Programs: Trio Program Talent Search Upward Bound Student Support Services (Special Services) Ronald E. McNair Postbaccalaureate Achievement Program National Early Intervention Scholarship and Partnership Program Presidential Access Scholarship National Student Savings Demonstration Project Technical Assistance for Teachers and Counselors State Student Incentive Grant (SSIG) High School Equivalency Program (HEP) Robert C. Byrd Honors Scholarship Program. Special Programs for Students Whose Families are Engaged in Migrant and Seasonal Farmwork, including the College Assistant Migrant Program (CAMP) Special Child Care Services for Disadvantaged Students. Upward Bound Paul Douglas Teacher Scholarship Program Special Child Care for the Disadvantaged.
Bureau of Indian Affairs (BIA) Student Assistance (PL 102-325) Title XIII Payments	Includes payments received through the following: Indian Higher Education Programs Tribal Development Student Assistance Revolving Loan Program (Tribal Development Student Assistance Act).
Carl D. Perkins Vocational and Applied Technology Education Act Amendments of 1990 (20 U.S.C. 2301-2466d)
Fee Waivers	Including the California College Promise Grant (CCPG), formerly the Board of Governors Grant (BOGG) fee waiver.
Student loans and grants excluded from the CalWORKs Program	Grants administered by the Federal Secretary of Education Loans or Grants Administered by: The community college extended opportunity services; The California Student Aid Commission; or A college accredited by the Western Association of Schools and Colleges Awards and scholarships for dependent children based on the child's academic or extracurricular activity Needs-based grants for undergraduate students Grants whose proceeds are not available to the student to meet current needs Any other loans which have a written agreement specifying the obligation to repay and a repayment plan Any other educational assistance when it is used for allowable educational expenses Servicemen's Readjustment Act of 1944 (Galvanized Iron [G.I.]} and other Veterans Administration (VA) educational, vocational, training, and rehabilitation benefits if the monies are used to meet educational expenses AmeriCorps program living allowance for housing, meals, member uniforms (referred to as a stipend), limited medical benefits, educational awards, and childcare benefits All payments received by members of AmeriCorps State and National and AmeriCorps National Civilian Community Corps (NCC) Californians for All College Corps volunteer program stipends and educational awards AmeriCorps Volunteers in Service to America (VISTA)-Stipends and Educational Awards if the household was receiving PA or CalFresh at the time they became members of VISTA Other Educational assistance not otherwise excluded by federal statute, to the extent that it is either earmarked by the lender, used for, or intended to be used for, allowable educational expenses at qualifying institutions (Any program that provides the equivalent of a high school diploma, Vocational education, Post-secondary education [college]).
Reimbursements or allowances	When issued for educational expenses specifically earmarked by the grantor, such as travel or books, refer to Exempt Income [63-502.2] for more reimbursement information.
Work Study Income	All earned income is from federal and state work study programs.
Educational expenses (per the Standard Student Budget) for: Tuition Mandatory fees Books and supplies Transportation School-related dependent care Miscellaneous personal expenses incidental to attending a school or program (other than living expenses such as rent or mortgage, personal clothing, or food eaten at home)	This exemption applies to income received by students in the following ways: Any program that provides the equivalent of a high school diploma Vocational education Post-secondary education (college). Allow the amount earmarked or intended to be used for an expense as an exemption, even if actual costs differ. When the expense amounts earmarked by the grantor and listed on the Standard Student Budget are different, use the higher amount as an income exemption. ExampleExample The “Standard Student Budget” lists $400 tuition. The student received a private scholarship with $500 earmarked for tuition. Actual tuition cost is $400. Exempt $500, the higher amount, regardless of the actual cost. No exemption is allowed for expenses not listed on the Standard Student Budget or earmarked by the grantor. Note: Students can verify allowable educational expenses through self-attestation.

Tuition and Mandatory Fees

Mandatory fees include:

Rental or purchase of any class-related equipment, materials, and supplies.
Origination fees and insurance premiums on student loans.

Students who have recently moved to California may be charged a higher tuition amount than long-time residents at the State's colleges, universities, and junior colleges. Since tuition is a mandatory expense, allow the verified higher amount to be charged in this situation.

Any questions about tuition, fees, or the period intended to cover should be directed to the institution by phone.

Veteran's Educational Benefits

Galvanized Iron [G.I.] Bill and other Veteran's Administration (VA)educational, vocational, training, and rehabilitation benefits are exempt from consideration as income only if that the monies are used to meet educational expenses.

Housing allowance and subsistence payments, portions of VA educational, vocational, training, and rehabilitation benefits, and programs are countable as income for CalFresh households.
Other types of VA benefits, such as disability or retirement payments, are countable as unearned income.

Earnings

Please refer to the chart below to decide whether to count or exempt student earnings.

STUDENT EARNINGS

COUNT AS INCOME (Allow the 20% earned income deduction)

EXEMPT

Earnings of a post-secondary (post-high) school student (except Title IV work study)

Earnings of a child under age 18 who:

Lives away from home (parents) and is not under “parental control”, or
Is not enrolled in elementary or secondary (high) school or
Attends elementary or secondary (high) school less than half-time.

EXAMPLEEXAMPLE

A 17-year-old attends De Anza College part-time, works part-time at Macy's, and lives at home. Count the full amount of the college student's earnings in the CalFresh budget after allowing the 20% earned income deduction.

Title IV work study earnings.

All earnings of a student under age 18 who is both:

Under parental control (a child in the case) and
Attending elementary or secondary (high) school at least half-time.

ExampleExample

A 17-year-old attends San Jose High School and works part-time at Pizza Hut. The student's earnings are exempt until one of the following occurs.

The student:

Turns 18, or
Moves out of his parent's home or
Attends school less than half-time, or
Graduates from high school.

Students Under Age 18

Loans, Grants, Scholarships, etc.

Subtract exempt expenses and count the remainder as income to the household. This income is treated the same for all students, regardless of the student's age. Refer to Exemptions [63-507(a)(6)] for further information.

Earnings

Exempt the earnings of a student under age 18 who is:

Under parental control, and
Attending elementary or secondary (high) school at least half-time.

This exemption applies to work study earnings and other jobs. For further information, refer to Earnings.

Third-Party Payments

Student income provided to a third party to meet the household's living expenses shall be treated as money payable directly to the household and not considered a vendor payment. Living expenses may include, but are not limited to:

Rent
Mortgage
Personal clothing
Food eaten at home.

Income Paid Directly to the School

Grants, scholarships, fellowships, veteran's benefits, and loans are sometimes paid directly to the school, not the student. Once awarded, this money is legally obligated to the student. It must be counted as unearned income and averaged over the school term after subtracting exempt educational expenses.

Countable Income

Any student income, after exclusions, must be averaged over the period for which it was provided. Countable student financial aid includes:

Any non-needs-based awards and scholarships, including private scholarships, some athletic scholarships, some fellowship grants, or other non-needs-based grants, are counted as unearned income when they are:
- not indicated as exempt in the income exclusion chart above
- not received by a dependent child, and
- not earmarked, used for, or intended to be used for qualifying educational expenses.
Any loans, not otherwise exempt, that do not have a written agreement and repayment plan.
Housing allowance, subsistence payments, portions of VA educational, vocational, training, and rehabilitation benefits, and programs are countable as income.
- Reminder: Other types of VA benefits, such as disability or retirement payments, are countable as unearned income.
Stipends for educational/research and employment purposes when participating in a particular program or major. Regardless of the receipt date, the stipend income is to be averaged over the period for which it was provided – typically a semester. Any amount that can be verified as spent on allowable educational expenses can be excluded from consideration prior to averaging.
New applicants who are members of the AmeriCorps VISTA program and were not receiving public assistance or CalFresh when they joined VISTA will have any payments received from the program counted as earned income.

Reminder: Under Semi-Annual Reporting (SAR), CalFresh benefits are determined using prospective budgeting and reasonably anticipated income. Prospective budgeting requires that the county determine CalFresh eligibility based on a household’s reasonably anticipated circumstances. Reasonably anticipated income is any income the household can reasonably anticipate receiving over the length of the certification period.

Verification

When needed, Income verification must include all of the following:

Amount
Source
Period the income is meant to cover.

Income may be verified by a:

Financial aid award letter from the school/grantor, or
Student Income Verification Request (CSF 50) completed by the school.

Exempt Expenses

Exempt educational expenses on the Standard Student Budget must be verified by one of the following:

A Student Income Verification Request (CSF 50) completed by the school, or
A copy of the educational institution's “Standard Student Budget” with information to identify the specific budget category used for the student (such as “living at home” versus “away from home”).

The format of the Standard Student Budget will vary by educational facility. If the institution's Financial Aid Department provides written documentation/verification of the necessary amounts, the EW shall accept this and make the appropriate budget computation.