excludable income

(1) an amount equal to the education credits described in paragraphs (1) and (2) of section 25A(a) of title 26;

(2) if an applicant elects to report it, college grant and scholarship aid included in gross income on a Federal tax return, including amounts attributable to grant and scholarship portions of fellowships and assistantships and any national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990 (42 U.S.C. 12511 et seq.), including awards, living allowances, and interest accrual payments; and

(3) income earned from work under part C of this subchapter.