Minnesota Minnesota

Combined Manual

Combined Manual


WHEN TO BUDGET STUDENT FINANCIAL AID

ISSUE DATE: 03/2026

MFIP, MSA, GA, HSP:
No provisions.


SNAP:
Follow the procedures in this section for when to budget counted student financial aid. See 0017.15.36 (Student Financial Aid Income) for what student financial aid is counted or excluded.

When dividing student financial aid by the months it is intended to cover, count each month only once for each source of aid. If the same source of aid covers a month where 1 term ends and another term begins, include that month only for the 1st term.

When to begin budgeting student financial aid depends upon the type of aid and the budgeting cycle. For budgeting cycles, see 0022.03 (How and When to Use Prospective Budgeting), 0022.06 (How and When to Use Retrospective Budgeting), 0022.09 (When to Switch Budget Cycles - Cash).

Do not budget financial aid until it is available.

GRANTS, SCHOLARSHIPS: Consider the income available when the student receives the award letter.

OTHER LOANS: Consider the loan available when the student receives the award letter from the lending institution. Prorate the loan over the months it covers, regardless of the disbursement dates.

STATE WORK STUDY INCOME: Consider work study income available in the month the student receives it.


If the student receives or signs the award letter before the school year starts, do not budget the income until the school year begins.

If a student signs or receives the award letter after some of the months it covers have passed, prorate the aid over the months it covers, but disregard the portion intended for prior months.

If a student verifies that a school withheld the student's aid because of unsatisfactory progress, do not budget the income.


To arrive at a monthly amount to budget:

1.

Exclude all Title IV or Bureau of Indian Affairs (BIA) educational assistance.

2.

Exclude educational assistance earmarked for specific costs of tuition, mandatory fees, books, supplies, dependent care, transportation, or miscellaneous personal expenses (other than living expenses).

3.

Prorate each non-excluded, available financial aid and remaining expenses over the number of months it is intended to cover or it is incurred. The result is the monthly aid and expenses.

4.

Subtract all remaining monthly educational expenses used for tuition, mandatory fees, books, supplies, dependent care, transportation, or miscellaneous personal expenses (other than living expenses).

5.

Allow a 20% work expense deduction from work study income or fellowships that have a work requirement. See 0017.15.36.09 (Student Financial Aid Deductions) and TEMP Manual TE02.08.050 (Daycare Expenses) for instructions on allowing the deduction.


Continue budgeting student income over the period it is intended to cover for a client no longer in school. Deduct allowable expenses that the client must actually pay. Exclude the income if the grantor of the aid demands immediate repayment beginning with the 1st budget month after the grantor demands repayment.

See 0017.15.36.06 (Identifying Title IV or Federal Student Aid), 0022 (Budgeting and Benefit Determination).
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PREVIOUS REVISIONS

DateNotes
09/2025 removes cross-reference 0022.09.03 (When to Switch Budget Cycles – SNAP) due to the removal of this section.
10/2016 Updates section due to Legislative changes for Program Uniformity/Income.
12/2014 Removed WB.  This program was suspended 12/1/14.
06/2013 update cross-references to 0022.09.03 (When to Switch Budget Cycles - SNAP). No policy was changed.

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