Financial Aid Package

<p>What do school's mean by personal expenses in their student budgets? How would one go about using the amount allotted for this (is there a student account at the uni or...)? Are there private scholarships to cover these expenses (I'm assuming they're covered by work study and summer contribution)?</p>

<p>Also, if anyone could tell me what the Hope Tax Credit is for? Does the student have to pay taxes for the financial aid given to him/her?</p>

<p>Please, if someone could answer....</p>

<p>Personal expenses; pocket money, frat/sorority dues, travel money, books, snacks, movies, sundries, etc. You are correct that these expenses are covered from work study funds and the student contribution.</p>

<p>Same info as Sybbie's...worded differently.Personal expenses are things YOU might spend money on yourself...things like clothing, entertainment, travel to and from home, eating out. They are typically things that are "personal" and are not related to college (like books, tuition, room, board, fees). Most schools give a guestimate of personal expenses as part of their total cost of attendance. No..they usually don't maintain an account for these at the school for you. I would venture that most students pay these bills through earnings in the summer that they have saved or through college jobs. Personal expenses are NOT billed to you by the college.</p>

<p>In ds's financial aid package, travel is itemized separately from personal expenses. Also the amount they figured for him for personal expenses is exactly what they awarded him in work study, and they say they expect the work study money to be the student's for personal expenses -- clothes, eating outside the school's food service, entertainment, incidental expenses, etc. My son will have to also pay his own phone expenses, and basically everything while he's away except his health insurance and two round trips home per year, so he'll have to live within the budget of what he earns in work study. The amount the school figures as his summer earnings is separate, and I assume will have to be paid directly to the school towards COA.</p>

<p>Billable expenses are what the school sends bills for. These include room, board, tuition, fees, school health insurance (if you elect to take it), and any other costs associated with the schooling that are directly incurred by the school (e.g. private instrument instruction, lab fees, etc). The costs of any other expenditures (travel, clothing, books, personal entertainment, etc) are not billed by the school.</p>

<p>Typically, financial aid is subtracted from the items the school bills for and the student pays the rest. The student also pays for those "other expenses" as well. Now...yes, some students do receive enough financial aid to cover costs other than those for which the school bills. Some students receive a stipend for "other expenses". It varies. If your financial aid is more than what the school bills for and includes your personal expenses, there will be an arrangement with the school for dispersement of that money to you (if it's work study, it will come in the form of a paycheck).</p>

<p>Remember also, that any financial aid above the cost of tuition, fees and books (I believe books are included) is considered taxable income. In most cases the amount will not have a severe impact on the student's tax payment...but it IS considered income.</p>