Tutition Assistance Program question

I would like to know if you need to claim the UPS tuition assistance when filling out the FAFSA form.

If the UPS tuition assistance decreases the amount of federal aid you can receive, then what is the point of the ups tuition assistance program? I have had someone tell me that it is just a marketing ploy to lure in young people to help for college. I am not sure how true that statement is.
 
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