Social Security disability benefits for college students

Key takeaways:

• Social Security disability benefits for college students can help them afford tuition and other educational expenses.
• However, income restrictions on SSI can limit how a recipient can earn money to pay for college.
• Some resources, such as the Pell Grant and scholarships, don’t count towards income for SSI, as long as the money is used for education.

Flickr user William Murphy

While disability benefit programs can put restrictions on earnings and assets, there are ways for recipients to pay for college without affecting their benefit eligibility. Two programs – Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) – can help pay for your education if you’re eligible, as well as other financial aid options. In this article, we highlight Social Security disability benefits for college students and resource exclusions so you can make a plan for your finances.

Social Security disability benefits for college students

College students with disabilities may be receiving two types of Social Security benefits, depending on their situation.

Social Security Disability Insurance (SSDI)

Social Security Disability Insurance (SSDI) is a disability program for disabled workers and their families. Eligibility and benefits are determined by the individual’s length of employment and income. There is no means test or limit on resources.

SSDI recipients can set aside money for future educational expenses without risking their benefits. Auxiliary benefits paid to children under 18 or adult disabled children of parents who receive SSDI are also not affected.

However, benefits for non-disabled children end after they graduate from high school or two months after they turn 19, whichever comes first. Additionally, adult children with a disability may qualify for disability benefits after the age of 18 if a parent is receiving SSDI or Social Security retirement benefits.

Supplemental Security Income (SSI)

Supplemental Security Income (SSI) pays monthly benefits to those with low incomes and limited assets, such as disabled children or the elderly. It supplements a recipient’s income up to a certain threshold. Eligibility for children under 18 depends on parental income and assets. After the age of 18, a child may qualify on their own for SSI, even while attending college.

When it comes to saving for college, SSI presents certain challenges. It’s a mean-tested program, so it imposes restrictions on both income and resources, specifically $2,000 for a single person and $3,000 for a couple. Fortunately, there are certain resource exclusions that permit SSI recipients to save for post-secondary education without losing their benefits.

Resource exclusions for college funds

If you’re receiving SSI or SSDI and want to go to college, there are some avenues and income sources available to you that won’t affect your benefits.

• ABLE Accounts: ABLE accounts are tax-advantaged savings and investment options for qualifying individuals with disabilities. If the individual became disabled before 26 and currently uses SSI or SSDI benefits, they can set up an ABLE account without it affecting their eligibility.
• Pell Grants: Pell Grants from the U.S. Department of Education are for college students with demonstrated financial need. It doesn’t count as income, so it doesn’t affect SSDI or SSI benefits. You need to complete the Free Application for Federal Student Aid (FAFSA) each year of college to be considered for the grant.
• Other federal grants and loans for students: Other types of financial assistance aren’t considered income or resources for Social Security benefits, including Federal Educational Loans, Academic Achievement Incentive Scholarships, Leveraging Educational Assistance Partnership (LEAP), Work-Study programs, and the Federal Supplemental Educational Opportunities Grant (FSEOG), among others.
• Grants, scholarships, fellowships, and gifts used for educational expenses: If you use a grant, scholarship, fellowship, or gift to pay for necessary educational expenses, it won’t be counted towards your income or resources.
• Special Needs Trust: A Special Needs Trust allows a benefactor to leave the money in a trust instead of giving it directly to you. Since you have no control over the funds, it won’t affect your SSI eligibility, but your benefactor should work closely with a lawyer or financial advisor.

Receiving SSI while in college

Attending school full- or part-time doesn’t usually affect a student’s SSI disability status. In most cases, they can continue to receive benefits while earning a degree. However, the SSA regularly reviews cases to check for improvement, and attending college could impact eligibility if you were approved for SSI on the basis of a mental impairment.

For more information about receiving SSA disability benefits while attending college, please visit the SSA website. You can also go to your nearest SSA office or call 1-800-772-1213 if you have questions about college funding and your benefits eligibility.

Did you know there are scholarships specifically for students with disabilities? Use our Scholarship Search Tool to discover awards you may qualify for.