Question: Are these emergency financial aid grants to students considered taxable income? Answer: No. Emergency financial aid grants made by a federal agency, State, Indian tribe, higher education institution or scholarship-granting to a student because of an event related to the COVID-19 national emergency are not included in the student's gross income. For more information, please see the Internal Revenue Service (IRS) bulletin Emergency aid granted to students due to COVID is not taxable (March 30, 2021).
Question: Is a student emergency financial aid grant part of a student's financial aid award package? Answer: No, these emergency financial aid grants are not part of the financial aid package. They are awarded in addition to other financial aid.
Question: Should institutions include a student's receipt of a HEERF emergency financial aid grant when calculating that student's Expected Family Contribution (EFC)? Answer: Emergency financial aid grant received by a student under the CARES Act, CRRSAA, or ARP should not be counted as income when calculating a family's EFC.
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