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As many of you noticed, we have not issued payments for the MI Future Educator Stipend program in two weeks. This brief pause allowed us time to receive a response from Federal Student Aid regarding our treatment of the MI Future Educator Stipend, and whether the stipend must be counted towards estimated financial assistance in financial aid packages.
Federal Student Aid has indicated they agree with our interpretation that the Stipend is NOT to be included in Estimated Financial Assistance. Please see below for their language regarding our inquiry:
“Based on your interpretation of the Michigan statute, we agree that the MI Future Educator Stipend funds may be considered wages from non-need-based employment (and therefore not counted as estimated financial assistance), subject to the conditions described in your email. That is, postsecondary institutions receiving stipend funds for payment to eligible student teachers must issue the appropriate tax forms to stipend recipients, and recipients must be informed that they are required to report the income provided through the program on their tax return, and, if applicable, on future FAFSAs, and that this may affect their future eligibility for need-based aid.”
-Office of Policy and Implementation and Oversight, Federal Student Aid, U.S. Department of Education
MI Future Educator Stipend payments will resume today. Please begin disbursing this money to your students. We will provide further clarification on the taxability of the stipend soon.
As we work to continue developing new scholarship programs, it is important we hear your feedback and concerns. We are eager to partner with you and want you to be a part of the process.
Please contact us directly at 888-447-2687 or mistudentaid@michigan.gov so that we may listen, assist, explain, and work through the process with you.
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