101 STAT. 354
PUBLIC LAW 100-50—JUNE 3, 1987 !
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(A) by striking out "paragraphs (2) and (3)" in subsection (a)(1) and inserting "paragraphs (2) through (4)"; (B) by inserting before the period at the end of such subsection the following: "minus excludable income (as defined in subsection (f))"; (C) by striking out paragraph (2) of subsection (a) and inserting the following: "(2) In the computation of family contributions for the programs under subpart 2 of part A and parts B, C, and E of this title for any academic year, there shall be excluded from family income any proceeds of a sale of farm or business assets of that family if such sale results from a voluntary or involuntary foreclosure, forfeiture, or bankruptcy or an involuntary liquidation."; (D) by inserting at the end of subsection (a) the following: "(4) No portion of any student financial assistance received from any program by an individual shall be included as income in the computation of expected family contribution for any program funded in whole or in part under this Act."; (E) by striking out subsections (b) and (c) and inserting the following: "(b) UNTAXED INCOME AND BENEFITS OF PARENTS AND INDEPENDENT STUDENTS WITH DEPENDENTS.—The term 'untaxed income and
benefits' when applied to parent contributions or the contributions of independent students with dependents (including spouses) means— "(1) child support received; "(2) welfare benefits, including aid to families with dependent children under a State plan approved under part A of title IV of 42 USC 601. the Social Security Act and aid to dependent children; "(3) workman's compensation; "(4) veterans' benefits such as death pension, dependency and indemnity compensation, but excluding veterans' education benefits; "(5) interest on tax-free bonds; "(6) housing, food, and other allowances (excluding rent subsidies for low-income housing) for military, clergy, and others (including cash payments and cash value of benefits); "(7) cash support or any money paid on the student's behalf; "(8) the amount of earned income credit claimed for Federal income tax purposes; "(9) untaxed portion of pensions; "(10) credit for Federal tax on special fuels;
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"(11) the amount of foreign income excluded for purposes of Federal income taxes; "(12) untaxed social security benefits; "(13) payments to individual retirement accounts and Keogh accounts excluded from income for Federal income tax pur", poses; and "(14) any other untaxed income and benefits, such as Black Lung Benefits, Refugee Assistance, railroad retirement benefits, 29 USC 1501 or Job Training Partnership Act noneducational benefits. note. "(c) UNTAXED INCOME AND BENEFITS OF DEPENDENT STUDENTS OR INDEPENDENT STUDENTS WITHOUT DEPENDENTS.—For the purpose of this part, the term 'untaxed income and benefits' when applied to the contributions of dependent students or independent students without dependents means— "(1) child support received;
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