HPSP Stipend - Gross or Net held against Cost of Attendance

[packersfans]

I'm about to start in the fall on HPSP. Currently HPSP stipend is at $2178 which would put me over the schools Cost of Attendance (COA). After taxes I'm expecting to net roughly $1800 which would put me under the schools COA as far as living goes. I've spoken with someone from the schools Financial Aid office asking if I could take out loans for the difference between what I net on HPSP and the schools COA for living, roughly $200-300 a month. They wouldn't actually answer my question directly and simply answered that most "HPSP student don't do that".

From doing your taxes does anyone know if the gross or net value of HPSP is held against your COA at tax time. Even if the school won't provide the loans, I can pull from some other sources but only if I won't be exceeding the COA at the end of the year.

Any thoughts on the gross vs net issue?

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[dwb8p]

They are doing you a favor. Avoid the debt.

 

[Red Lobster Actual]

Find some place cheap to rent and don't eat out often. Find seminars with free food and take home the leftovers.

 

[packersfans]

Thank you both for not answering my question. While I appreciate the advice, I'm talking about roughly $250 a month for 9 months out of the year. At current interest rates, over 4 years that would be about $10k at graduation time, a relatively small and manageable number (I paid off undergrad a few ago so I have a good feel for what that means). Additionally as noted above, I have access to other funds I can tap into (phantom stock from my previous employer), but it only makes sense if I will fall under the COA after net receipts. Leaving me still with zero debt.

I really do appreciate your attempt at bestowing otherwise solid financial advice, however in my personal situation I've decided that having that little extra would allow me to fly home every so often to visit family and friends. Being able to do that has value to me far beyond the small amount of money I am talking about, I'm sure you can understand.

If anyone else knows, your input would be much appreciated.

 

[deleted480308]

They won't loan you the tuition but you can still borrow the full living expense

 

[Homunculus]

They won't loan you the tuition but you can still borrow the full living expense

many moons ago when i took the HPSP (before signing bonuses and increased stipend- i think it was a paltry $900 or something a month back then) i took out extra loans for my family to live on. still paying them back but they're consolidated at some ridicuously low rate and it was well worth the expense-- even if i do make too much now to claim any exemption on the interest.

--your friendly neighorhood a man's gotta eat caveman