Exempting Student Loan Refund Money

[dumpinmydebt]

I'm wondering which law I'm supposed to use to exempt an anticipated refund?

This is a refund of student loan money. This is the extra loan money after the school is paid. My husband and I are expecting around $2200 total. Need to exempt it as at least half of it will be for dental work.

I am in Ohio.

I am wondering if I use the "wildcard" (as I have not used that) or if I use "tuition credit or payment."

Thanks!

[justbroke]

You need to find a "cash" exemption for your State (Ohio). You must also make sure that you have enough exemptions for other things.

[dumpinmydebt]

So I can only use the "cash" exemption? I've already used that, mainly for deposits. Ohio only has $400, so that's $800 for two. Our apartment deposit was $600 alone I can't use the wildcard?

I have plenty of room to exempt everything. We don't own very much. It's just this one thing I am having a hard time finding the room to exempt.

Thanks for your help.

[justbroke]

There is no specific category to exempt "excess" student loan money, especially sitting in a bank account. Are you sure you don't need it for books, tuition, fees?

First, Ohio 2329.66(A) (16) is about tuition units or payments. This is not for refunded money. As a matter of fact, a tuition refund/reimbursement, where an employer compensates you for going to school by reimbursing the fees, is not only income, but is probably taxable income. (Noting that taxable income has nothing to do with the calculation of current monthly income.)

The Bankruptcy Exemptions weren't meant to let you keep everything, although most people get to. How much money are we talking?

[dumpinmydebt]

backtoschool had stated that Pell Grant refunds were income, but stafford loan money was a cash asset.

This isn't an employer compensating anyone going to school. I wish my husband's employer paid him to go, but they don't offer those types of benefits.

This is how it works. The stafford loan is disbursed directly to the school a few weeks after the quarter starts. The tuition and fees are paid, then whatever is left over comes to us in the form of a check in the mail. We do use some of the money to buy books for the next oncoming quarter, but we already have the books for the current quarter (because we used the previous loan money to buy them). I expect to use about $300 of it to buy next quarters books. I need the rest for my husband's crown (at least $1000), then I need to have a medical test done (which is $200.)

We're talking about around $2k this quarter. Of course, it's never for sure, only an estimate. I won't know the "for sure" amount until it's actually disbursed.

I would wait to file until after we spent it (already have the dental appointment scheduled), but my husband has a Case Management Conference on October 13th (same day these checks are mailed) for a $4k small claims lawsuit. He can't go (his boss is in the hospital and he is next in command. Just absolutely no way he can take off work) and I'm afraid of what will happen if he doesn't go (someone had something something about a sanctions -though I thought that sanctions were issued in criminal cases. I figured he'd just get a judgment.)

[dumpinmydebt]

Nevermind on that "tuition payment or credit" thing. That definitely does not apply to me.

But I'm pretty sure I can use the wildcard to exempt the cash, right?

We still have like $15,000 in personal property exemptions (yes, we don't have much. Bought all of our furniture used, except for the mattress), so I'm not worried about not having enough to exempt our stuff.

[justbroke]

Yes, I would just use the wildcard since you indicate that there is money left to use!

[dumpinmydebt]

Thanks!

You know what, someone else actually said this to me not too long ago.

Dang, I totally had a major relapse of brain function at the moment I asked this question. Sorry about that! But thanks for your help. Much appreciated.