Reminder | HOTMA Change - New Higher Education Act Program Income Exclusion

HOTMA redefined student assistance for everyone except those who receive Section 8 assistance. The new definition of student assistance excludes as income programs funded under the Higher Education Act of 1965 (HEA). However, while excluded as income this funding is applied to expenses before determining if any other student assistance exceeds student expenses and is counted as income. The explanation of the new HOTMA student assistance rule explains a change that takes effect July 1, 2024, "Section 479B of the HEA has been modified slightly to exclude student financial assistance under the Bureau of Indian Education (instead of the Bureau of Indian Affairs) and to expand the forms of excluded income to include income earned in employment and training programs under Section 134 of the Workforce Innovation and Opportunity Act (WIOA) (29 U.S.C. 3174 et seq.)

Action item: Starting now, be sure to add the named WIOA programs to the list of programs treated as HEA programs. 

Bonus

Based on our research, below is the updated list of HEA 479B programs, effective 7/1/2024.

Note | Below is a list of HEA Title IV programs. There may be sub-programs:

• Grants to Students in Attendance at Institutions of Higher Education
  • Federal Pell Grants
  • Federal early outreach and student services programs
    • Federal TRIO Programs
    • Gaining Early Awareness and Readiness for Undergraduate Programs
    • Model Program Community Partnership and Counseling Grants
    • National Student Savings Demonstration Program
  • Federal supplemental educational opportunity grants
  • Leveraging Educational Assistance Partnership program
  • Special programs for students whose families are engaged in migrant and seasonal farmwork
  • Robert C. Byrd Honors Scholarship Program
  • Childcare access means parents in school
  • Teach grants
  • Scholarships for veteran’s dependents
• Federal Family Education Loan Programs
• Federal Work-Study Programs
• William D. Ford Federal Direct Loan Program
• Federal Perkins Loans
• Higher Education Relief Opportunities for Students

Note that the following was added on July 1, 2024, when an HEA amendment took effect.

• Section 134 of the Workforce Innovation and Opportunity Act (WIOA). This includes income earned in employment and training programs: workforce investment activities for adults and workers dislocated as a result of permanent closure or mass layoff at a plant, facility, or enterprise, or a natural or other disaster that results in mass job dislocation, to assist such adults or workers in obtaining reemployment as soon as possible.

HOTMA Online On-Demand / Live Hybrid Training is Opening Again in September! 

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