Sec. 5. If an individual receives a state or federal higher education award that is paid directly to an approved postsecondary educational institution for the 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 through federal surplus food programs; and
(2) the award may not be considered as income or a resource of the individual in determining eligibility for assistance through federal surplus food programs.