(1) If a child is determined to be IV-E eligible, eligibility continues as long as the child remains in state or tribal custody or jurisdiction regardless of subsequent changes in the filing unit's income or resources. However, eligibility no longer exists when the child is age 18 unless the child is a full-time student in a secondary school who is reasonably expected to obtain a secondary school diploma or its equivalent in or before the month of their 19th birthday and is under the jurisdiction of a tribe whose code allows for foster care past the age of 18.

(2) When a child becomes ineligible for IV-E benefits, a written notice must be sent to the placing worker at least 10 days prior to the date on which the benefits will terminate, except as provided in (3) (a) through (c) (ii) . The notice must state that the benefits are being terminated, the reason for the termination, and the date on which the benefits will terminate. The notice must also contain information about the right to a fair hearing and to contact the department prior to the effective date of termination to discuss any disagreement or misunderstanding regarding eligibility.

(3) The department is not required to send notice 10 days prior to the date of termination but must send notice not later than the date of termination if:

(a) the department has information from a reliable source that the child has died;

(b) the child's whereabouts are unknown; or

(c) the placing worker has signed a written statement which:

(i) requests the termination of benefits for the child; or

(ii) contains information which indicates that the child is no longer eligible for benefits and also contains an acknowledgment that benefits for the child must be terminated as a result of that information.