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Article | HOTMA Highlights | Student Financial Income Part 1 | Section 8 Programs

hotma hud income calculations students Oct 16, 2023

Summary Note |  Section 8 programs will continue to handle student financial assistance as it used to be handled before HOTMA. This will continue until such time as future HUD Appropriations Acts alter language relating to student income. 

The Details |  HOTMA significantly changes how student financial assistance will be addressed. According to HUD's Implementation Notice, G.16., "the treatment of student financial assistance depends on the HUD program, student/household characteristics, and the type of financial assistance received by the student. The student financial assistance rules apply to both full-time and part-time students." However, because the language of HUD appropriations continues to address student assistance using the previous methodology, Section 8 programs will continue to handle student financial assistance as it was previously handled. Most importantly, this means that HEA assistance and income from private sources are counted as student assistance that may have to be counted if it is in excess of tuition. This will continue until such time as future Appropriations Acts change the language relating to Section 8 recipients. There is an exception here. Persons who are excluded from counting student financial assistance under old rules (individuals over 23 with dependent children) will have any student financial assistance handled according to HOTMA rules. 

Students in households that receive student assistance and that do not meet the traditional exceptions will have any assistance in excess of tuition and other fixed costs counted as income. The traditional definition of student assistance includes:

  1. Income from the Higher Education Act of 1965 (HEA).
  2. Other scholarships and grants
  3. Money from private sources (such as parents and grandparents).

These are added up, and tuition and fixed fees are subtracted. Any amount of assistance in excess of education costs is income. 


Excerpts from the HOTMA Implementation Notice | Chart G2 and Example G13


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