Do student loans count as income?

Student loans do not count as income as income on a credit card application. That’s because credit card issuers categorize student loans as a debt that you must pay back. Your student loan debt appears on your credit report, and credit card issuers consider that debt when it evaluates your application.

This might be confusing when you consider that students often use part of the money from student loans to pay for everyday living expenses. But as far as credit card issuers are concerned, if it’s money that has to be repaid, it is not considered income.

When you apply for a credit card, you are required to list an annual income, and provide source(s) of that income beyond annual salary and wages. Sources of income include, but are not limited to, rental income, interest and dividends from investments, Social Security and other retirement benefits, and military allowances.

While credit card issuers don’t consider student loans as income, they will apply that label to student financial aid such as scholarships, stipends, grants, work study earnings.

Generally, any financial aid proceeds used for living expenses may be classified as income. That would not apply to sources that directly cover curriculum-related expenses such as tuition, textbooks, and fees.