Does community college financial aid affect EDD unemployment eligibility? (FAFSA, grants, etc.)
I just got approved for unemployment after being laid off from my warehouse job. I'm planning to start community college this fall (finally getting my degree at 33!) and will qualify for financial aid through FAFSA. My question is - do I need to report my financial aid (grants and maybe loans) when I certify for unemployment? Will this count as income and reduce my weekly benefit amount? I don't want to accidentally commit fraud, but also really need both to make ends meet right now. The EDD website doesn't make this clear at all. Has anyone dealt with this situation before?
18 comments
Join the conversation
Freya Christensen
yea dont report it! financial aid isnt income, its for school. i never reported mine and nothing happened
0 coins
Ravi Malhotra
•Are you sure? I'm really paranoid about getting hit with an overpayment notice down the road. Did you get grants or loans or both?
0 coins
Omar Hassan
This is actually an important distinction. Financial aid like Pell Grants and student loans are NOT considered income for unemployment purposes. You don't need to report these when certifying for benefits as they're specifically for educational expenses. However, if you receive a stipend, work-study payment, or any compensation for actual work performed, THAT would count as income and needs to be reported. Also, as a student, make sure you're still able to work full-time and are actively seeking work while in school - EDD sometimes questions full-time students about availability for work.
0 coins
Ravi Malhotra
•Thank you so much! That's exactly what I needed to know. I'll be taking classes part-time while still looking for work, so that part should be fine. Really appreciate the clear explanation!
0 coins
Chloe Robinson
I had this EXACT same issue last year and almost lost my benefits because of it!!! The EDD system is SO confusing and the agents all tell you different things depending who you talk to. My advice? CALL EDD directly and get it in writing somehow. I ended up having to do an eligibility interview because I reported my grant money one week (thinking I had to) and then stopped reporting it the next week (after a friend told me I didn't have to). The inconsistency flagged my account and it was a NIGHTMARE to sort out.
0 coins
Diego Chavez
•calling EDD? lol good luck with that. I've been trying for 2 weeks and can't get thru
0 coins
NeonNebula
wait im confused. so ur saying if i get a pell grant i dont report it but if i get work study i do? what about scholarships? and what about the money that gets refunded to you after tuition is paid? cuz sometimes you get extra money back right?
0 coins
Omar Hassan
•Good question! Here's how it breaks down: - Pell Grants: Not reportable income for EDD - Scholarships for tuition/books: Not reportable - Student loans: Not reportable - Work-study: IS reportable (because you're performing work) - Stipends for living expenses: Generally reportable For refunds after tuition is paid - if it's from grants/scholarships intended for educational expenses like books, supplies or living costs, it's still not considered income for EDD purposes. But if you're earning money through any type of work, even if it's related to your education, that needs to be reported.
0 coins
Anastasia Kozlov
Be careful about the full-time student status though. EDD can disqualify you if they determine your school schedule makes you unavailable for work. When I went back to school while on unemployment in 2023, I had to fill out a special form showing my class schedule and confirming I was still able and available to work full-time despite being in school. Make sure you can document that your classes don't prevent you from accepting suitable work in your field.
0 coins
Ravi Malhotra
•That's really helpful - I didn't know about that form. Do you remember what it was called? I'm only planning to take evening classes so I should be available during normal business hours, but I want to make sure I have everything documented properly.
0 coins
Anastasia Kozlov
•I don't remember the exact form number, but when you certify, there's a question asking if there was any reason you couldn't accept full-time work. If you answer yes because you're in school, it will prompt you to provide more information. Just make sure you can explain how your class schedule still allows you to work full-time. Taking evening classes is perfect for this situation.
0 coins
Freya Christensen
just curious why do u need both financial aid AND unemployment? isnt that kinda double dipping? no offense just asking
0 coins
Chloe Robinson
•That's a really unfair comment. Financial aid is for EDUCATIONAL expenses - tuition, books, supplies. Unemployment is to help cover LIVING expenses while you look for work. They serve completely different purposes, and many people need both to survive while improving their job prospects through education.
0 coins
Diego Chavez
This whole system is designed to confuse people! My gf got hit with an overpayment notice for $11,400 because she didn't report some income from her side gig properly. Now they're taking 25% of her current benefits to pay it back. Make sure you document EVERYTHING and keep copies of all your certifications!
0 coins
Ravi Malhotra
•Wow, that's terrifying! I definitely don't want to end up in that situation. I'll make sure to keep detailed records of everything.
0 coins
Sean Kelly
Congrats on going back to school! I did the same thing a few years ago and it was the best decision I ever made. Just make sure you're balancing your course load with your job search requirements. EDD requires you to be looking for work, so keep detailed records of all your job applications. I found it helpful to create a spreadsheet with dates, company names, positions, and any responses. This came in handy when EDD randomly selected me for a work search review.
0 coins
Ravi Malhotra
•That spreadsheet idea is brilliant! I'm going to set that up right away. Did you ever have any issues balancing school and the job search requirements?
0 coins
Sean Kelly
•I did have to adjust my course load after the first semester. I initially signed up for 15 units, but it was too much alongside the job search activities. I dropped down to 9 units (3 classes) and that was much more manageable. Just remember that your job search is your "job" while on unemployment - EDD expects you to treat it that way.
0 coins