Pell Grant Disbursment

[BrokeJoke22]

Hi,
I was hoping someone could give me a quick answer to my question. I searched on the forum but I couldn't find a definitive answer. I am a two person household, me and my daughter (currently full-time college student). She gets a Pell Grant every year and usually the school takes all of it and we have to pay for her room and board with student loans or out of pocket. It became too much so we moved her back home and she takes her classes online. According to the college, she is going to receive a Pell Grant refund check on the 22nd in HER name. How much I don't know. Will this count as income for me since she is my dependent or is it a cash asset that I need to get rid of before filling? TIA

[tcreegan]

Hi BrokeJoke22,

I searched on the forum but I couldn't find a definitive answer. I searched several federal courts and couldn't find a definitive answer....

I suspect this is going to be determined by previous cases in your federal circuit. On the forum I have seen people claim student loan disbursements are not income and I have seen posts saying the part for school expenses is not income, but the part used for living expenses is income. But I have seen nothing on grants.

If courts have held it is income, you count it. If not, you don't count it.
If it is in a bank acct as cash, it is a cash asset that trustee can go after. But you might have exemptions to protect it instead of spending it (on legit expenses of course.)

Can you post your state and what court you would be in?

Tom in Colo

ps: how big is the Pell Grant refund (roughly)?

[Flamingo]

She is your dependent and lives with you; therefore, this Pell Grant money she receives that is not kept by the school is considered income for your household. Talk to your attorney because, as stated previously, a lot depends on your district and your state. Also, you need to check if she is still eligible for the grant his year if she moved back home and doesn't have the expense of room and board anymore. Since her circumstances have changed, that may affect the grant. I would check into that before there is a problem and you have to refund the money received or pay for more of her school tuition.

[BrokeJoke22]

Thanks to you both for your quick replies and help.
I am from Oklahoma and my income is around $2,000 below the median. I am hoping to file Pro-SE as I have no loose money nor can I borrow from anyone to hire a lawyer and have no assets outside my car which is valued below the allowed exemption. My daughter called the college yesterday and she's getting a refund of a little less then $600. According to the school they don't go by if she lives on campus or not but by how many credit hours she has and the income of the student and/or parents when it comes to grants. I will try to at least speak to a lawyer but if I do have to declare it as income on the Means Test would I also have to add the $600 on my schedule I?

[BrokeJoke22]

deleted.

[backtoschool]

Student loan refunds are not income but need to exempted as a cash asset if not spent before filing. Pell grant refunds are income. If your daughter is a dependent and you are claiming her expenses on your bankruptcy schedules then you need to count the pell grant as income as well.

I agree with Flamingo that since your daughter's living situation has changed, the pell grant refund might have to go back to the school. I would call the financial aid office and find out.

[tcreegan]

Okla exemptions

Hello again brokejoke22,

Okla huh? No federal exemptions, no wildcard on state exemptions,

But.....you can exempt 2 bridles and 2 saddles; 100 chickens, 20 sheep, 10 hogs, 5 cows and calves under 6 months, 2 horses and forage for livestock to last 1 year; and 2K worth of firearms.

Take the Pell grant refund and buy some chickens....?

Seriously, since you are well under median, the $600 Pell grant is not going to make a difference, throw it in with the other income. Then spend your bank acct down on legit expenses b4 you file.

Tom in Colo

ps: since you are pro-se, do you know about the NOLO book? Great resource, apparently has step-by-step instructions. www.nolo.com



Tom in Colo