AB 12 Direct Payments and their impact on financial aid eligibility

Q: A youth on my caseload was in a Supervised Independent Living Placement (SILP) last year and received his foster care payments directly. He’s now completing financial aid forms for college and isn’t sure whether this income will impact his eligibility for financial aid. What should I tell him?

A: The U.S. Department of Education Dear Colleague Letter GEN-13-18 (2013) clarified that extended foster care payments made directly to foster youth are to be excluded when determining Title IV federal student aid eligibility. This determination states: “Extended foster care payments paid under the authority of Title IV –Part E of the Social Security Act are excluded from income for purposes of the calculation of a student’s Expected Family Contribution (EFC) and thus not reported on the FAFSA.” The determination further clarifies that these payments are also not considered to be Estimated Financial Assistance. Click here for a more detailed summary of the clarification.

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