Is Financial aid Pell Grant considered earned or unearned income ?

Paying for College
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<p>From: <a href=“http://studentaid.ed.gov/students/attachments/siteresources/2012-13CTF.pdf[/url]”>http://studentaid.ed.gov/students/attachments/siteresources/2012-13CTF.pdf&lt;/a&gt;&lt;/p&gt;

<p>Q. When is student aid considered income?</p>

<p>A. Generally, grants and scholarships that do not exceed tuition, fees, books, and required supplies are not considered to be taxed or untaxed income. If you have an ROTC scholarship, a private scholarship, or any other kind of grant or scholarship, that grant or scholarship will be considered as an available resource by the financial aid office when packaging aid.
You should report grants and scholarships you reported on your tax return. You should then report these items as exclusions from income in Question 43(d): Student‘s 2011 Additional Financial Information. These amounts will be treated as exclusions from your income.</p>