Sec. 8. 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 that award as income or as a resource of the individual when applying for assistance for a destitute child under this chapter; and
(2) the award shall not be considered as income or a resource of the individual in determining initial or continuing eligibility for assistance under this chapter.