Question

You might hear people say that they “need to learn to live within a budget.” The funny thing is that most people who say this haven't actually prepared a personal budget, nor do they intend to. Instead, what they are referring to is a vaguely defined, poorly specified collection of rough ideas of how much they should spend on various aspects of their lives. However, you can't live within or even outside of something that doesn't exist. With that in mind, let's take a look at one aspect of personal-budget templates.

Many personal-budget worksheet templates that are provided for college students treat student loans as an income source. For example, the template included in the “Steps to Creating a Household Budget” article available at the balance's website. Based on your knowledge of accounting, is this correct?

YES: Student loans provide a source of cash, which can be used to pay costs. As the saying goes, “It all spends the same.” Therefore, student loans are income.

NO: Student loans must eventually be repaid; therefore, they are not income. As the name indicates, they are loans.

Instructions
Write a response indicating your position regarding this situation. Provide support for your view.

Answer 1

Tehe student loan cannot be consisdered as income In the view of IRS the loan do not count towrds your annual income the is as simple as that unlike actual income income your loan must br paid back along with interest and the only thing that you have to worry about with loan and the IRS is you deduct the amount that you paid in that year once you start paying loans off.

If a student apply for a credit card your income may possituvely impact your approvals for much you qualify for.

but you cannot count your student loan as your income.

However only in one sitation which you nee to cosisdered as income at the time when you fail to repay the loan amount then you have to report the same as forgiven amount as income.