A Budgeting Educational Example

FAA6.N Examples : 23 Unearned Income Education (UNIE/EDWO) Examples : A Budgeting Educational Example

Budgeting Educational Example

The student has two sources of countable unearned educational income. A $2400 deferred private loan intended to cover six periods (months) and $600 scholarship from his employer intended to cover three periods (months). The student has allowable educational expenses (some used for four periods and another for six). The following calculation must be completed:

Income	$2400	countable loan amount
	/ 6	divided by six periods
	$400	equals converted amount

	$600	countable scholarship amount
	/ 3	divided by three periods
	$200	equals converted amount

	$400
	+ $200
	$600	The results of the two added together equals the total income amount

Expenses	$1200	deductible mandatory fees
	/ 6	divided by six periods
	$200	equals converted amount

	$800	deductible books and supplies
	/ 4	divided by four periods
	$200	equals the converted amount

	$200
	+ $200
	$400	The results of the two added together equals the total expense amount

	$600
	- $400
	$200	The results of the income amount with the expense amount subtracted is the total adjusted income amount

The $200 total is used as a monthly amount over the period of time that is the longest; in this example, it is six periods.