Sec. 19. Except as provided by federal law, 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) the individual is not required to report the award as income or as a resource of the individual when applying for assistance administered 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 administered under this article.