student loan?
Monday, March 1st, 2010 at
8:09 pm
stace asked:
I had a medical emergancy and used some of my student loan that is subsidized to pay for it… Could I get in trouble for doing this? Also, do you have to report your loan for taxes? I’m way stressed about all of this. Please serious answerrs only.
I had a medical emergancy and used some of my student loan that is subsidized to pay for it… Could I get in trouble for doing this? Also, do you have to report your loan for taxes? I’m way stressed about all of this. Please serious answerrs only.
Tagged with: Emergancy • Student Loan • Taxes
Filed under: Student Loans
Like this post? Subscribe to my RSS feed and get loads more!
Leftover student loans are to be used for education expenses including living expenses. A medical emergency would be considered a living expense since if you did not do it, you might not be living. You do not have to worry at all about it.
You need to talk to an accountant about tax situations.
If you have satisfied all of your financial obligations with your school, then you may use your financial aid in any way the helps you continue with your schooling – keeping yourself healthy qualifies.
You do not have to report your loan on your taxes because it is not actual income or compensation for labor. You may be able use any interest paid on student loans to take a credit on your taxes if you like.
The loan money is for you to be the best student you can be. If the tuition/books/etc were paid in full and you had funds left over, the funds are yours for whatever you need to invest in to continue going to school. Taxes? No need to claim financial aid benefits unless you are already in a tax bracket that is high enough to actually pay taxes rather than get a refund. Most students do not fall into the higher tax bracket and therefore do not claim financial aid loans. That’s what I’ve heard around campus, in any case. But I’m not a bona fide accountant, so check into it for sure!
Hello how are you? Well the first thing you should do is apply for scholarships and grants. This is because they are both sources of free college money that does not need to be paid back. Student loans should be last on the list if she can’t get a scholarship or grant. You can refer to my sources for more information about scholarships, grants and student loans. Good Luck.