All Programs

Financial assistance is considered a loan if:

there is an understanding that the individual will repay the money; and

the individual can reasonably explain how the loan will be repaid.

These loans are exempt from income. Contributions that are not considered loans must be considered as explained in A-1326.1 , Cash Gifts and Contributions.

Note: See A-1234 , Noneducational Loans, for policy on treating loans as a resource.