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Question: I am receiving Social Security Disability for a disability that began before the age of 22. I am now 60 years old. I want to return to school. What effect would taking out a student loan have on my Disability payments and my Medicare AND Medi-Cal payments?



Response 1: None. Your student loan proceeds are not income and would not be counted against you.


Can I arrange to have only $900 disbursed to me monthly so I don't exceed the limit of $1,010 per /month income?


Response 2: This is not necessary. Your student payments are not income and would not affect you disability benefits, Medicare and Medi-Cal.

What SSA and Medi-Cal would count as income

• Wages from your job, whether in cash or another form;

• Net earnings from your business if you are self-employed;
• The value of food or shelter that someone gives you, or the amount of money some gives you to help pay for them;
• Department of Veterans Affairs benefits;
• Railroad retirement and railroad unemployment benefits;
• Annuities, pensions from any government or private source, workers’ compensation, unemployment insurance benefits, black lung benefits and Social Security benefits;
• Prizes, settlements and awards, including court ordered awards;
• Proceeds of life insurance policies;
• Gifts and contributions;
• Support and alimony payments;
• Inheritances in cash or property;
• Rental income; and
• Strike pay and other benefits from unions

Items that do not count as income

The following items are not income:

• Medical care and services;
• Social services;
• Money from the sale, exchange or replacement of things you own (though the money may count as a resource if you retain it until the next month);
• Most types of interest and dividend income;
• Income tax refunds;
• Earned Income Tax Credit payments;
• Payments made by life or disability insurance on charge accounts or other credit accounts;
• Proceeds of a loan;
• Bills paid by someone else for things other than food, clothing or shelter;
• Settlement payments to eligible American Indian landowners whose assets had been mismanaged by the United States;
• Replacement of lost or stolen income; and
• Weatherization assistance.