topic Re: can scholarships count as income? in Credit Cards

can scholarships count as income?

revvystoke — Fri, 24 May 2013 16:55:10 GMT

I work full time, but I also take grad courses throughout the day/night. I recieved scholarships, and until now I didn't think of adding them to my income, if that is even possible when app'ing. I know when I was a full time student, discover allowed me to add scholarship's as income.

Re: can scholarships count as income?

PokemonMaster — Fri, 24 May 2013 18:17:49 GMT

From what I recall scholarships and student loans can count as income. My general rule I go by is if the IRS has me fill out a from regarding it than it's income.

http://www.finaid.org/scholarships/taxability.phtml

Read the first paragraph. If your scholarships fall under the taxable category I would count them as income. If they don't I wouldn't count them as income.

Re: can scholarships count as income?

navigatethis12 — Fri, 24 May 2013 17:14:36 GMT

It depends on the issuer, but I don't see how it could possibly be income. If you get a 30,000 scholarship to a school, it doesn't make sense to put that down on an application since the money for school use.

Re: can scholarships count as income?

revvystoke — Fri, 24 May 2013 17:30:00 GMT

I always thought of them as a passthrough and never bothered adding them to my income. I am only part -time student, so my scholarship's are nowhere close to 30k. Last semester it was close to 15k, not a huge % of my full-time job income but enough that it may help with a little better rate if I apply in the future for a card or loan.

Re: can scholarships count as income?

jsucool76 — Fri, 24 May 2013 17:30:54 GMT

as far as I know, scholarships can count as income, but student loans cannot (since they require repayment).

Technically, any student loans and scholarships in excess of your tuition costs are counted as taxable income by the IRS (and have to be reported), but I still wouldn't count loans as income. Shouldn't have any problems with scholarships, and if a lender asks for verification of the income, a 1098-T should suffice.

Re: can scholarships count as income?

Stralem — Fri, 24 May 2013 17:59:18 GMT

@jsucool76 wrote:
as far as I know, scholarships can count as income, but student loans cannot (since they require repayment).

This.

ANY money you obtain that does not require repaiment -- basically anything that isn't a loan -- can be counted as income.

Yes, this even includes one-off gifts like, say, that $20 and bag of gummy bears that grammy gave you for your 34th birthday.

...*cough*...

This is from the mouth of an actual underwriter I spoke with from Barclay Bank.

Re: can scholarships count as income?

Anonymous — Fri, 24 May 2013 18:05:37 GMT

Scholarships are not taxable if used for tuition/fees/books. If the money is used for anything else, then it is taxable.

Re: can scholarships count as income?

PokemonMaster — Fri, 24 May 2013 18:24:06 GMT

It seems to be safer to not count scholarships as income. Student loans seem iffy though. Googling around some banks consider it income and others adamantly deny it as income. I would say overall it's just safer to not include any of it as income. Personally I haven't put any of my loans as income on applications. I have seen people put scholarships and student loans as income but I wouldn't risk it.

Re: can scholarships count as income?

Anonymous — Fri, 24 May 2013 19:02:33 GMT

Most lenders DO count scholarships/grants/financial aid awards as income.

As a student, with limited income/job opportunities, you'll need ALL the help you can get in order to be approved for a credit card since most lenders would lump you into the high-risk category. Having a "steady source" of income (regardless HOW you obtain it) WILL help you acquire credit. Just use it wisely!

Good luck,

Re: can scholarships count as income?

Anonymous — Fri, 24 May 2013 20:40:17 GMT

Scholarships can be considered as income.

Financial aid isn't income.

Student loans and loans of any kinds are not either.

Re: can scholarships count as income?

revvystoke — Fri, 24 May 2013 21:51:18 GMT

@Anonymous wrote:
Most lenders DO count scholarships/grants/financial aid awards as income.

As a student, with limited income/job opportunities, you'll need ALL the help you can get in order to be approved for a credit card since most lenders would lump you into the high-risk category. Having a "steady source" of income (regardless HOW you obtain it) WILL help you acquire credit. Just use it wisely!

Good luck,

I've never had an issue aquiring credit, just thought adding in scholarship income could help for better rates on a loan or CC if I ever came across one I wanted. I'll leave scholarship income off. I don't think its worth the hassle just to add 15k to my annual income if they ever ask for backup or do a FR.

Re: can scholarships count as income?

Chaos122 — Fri, 24 May 2013 21:57:08 GMT

Depends on the issuer, when I was in college I had a full time job plus got scholarships. I would include the scholarship amount given to me for living expenses as part of my income. Whenever a bank of credit union would ask for paystubs, i would include my stubs from work as well as bank statements for scholarship refunds. Out of 5 lenders, only 1 said i couldnt use my scholarship school refund per their policy but still got approved based on my work income..

Good luck to you

Re: can scholarships count as income?

andre181 — Fri, 24 May 2013 21:58:16 GMT

All through school I counted my scholarships as income. I've never had a problem.