Sec. 13. If an individual receives a state or federal higher education award that is paid directly to an approved postsecondary educational institution for that individual's benefit:
(1) that individual is not required to report that award as income or as a resource of that individual when applying for assistance provided under this chapter; and
(2) the award may not be considered as income or a resource of the individual in determining initial or continuing eligibility for assistance under this chapter.