yet ANOTHER student loan question..

[coolmom04]

sorry to ask another student loan question. i know i read something about this particular thing somewhere, but now I can't find it!

I think I read somewhere that a federal student loan is NOT considered income, right?

So... if I were to receive my student loan (less tuition & books paid) via check, could I just cash it and use it for things like... clothes for the upcoming seasons, etc? It wont be much and I am not trying to hide the money. I'll save receipts for everything I use it on. I don't want to screw up our income for the six month look-back.

[backtoschool]

A federal student loan is not considered income, but is considered a cash asset if the refund portion (the portion you have left over after tuition is paid) is sitting in your bank account. If your loan refund is in your bank account when you file, you will have to exempt it.

[coolmom04]

A federal student loan is not considered income, but is considered a cash asset if the refund portion (the portion you have left over after tuition is paid) is sitting in your bank account. If your loan refund is in your bank account when you file, you will have to exempt it.

Thank you!