Student loan account

Posted by Sam on February 3, 2007, 11:33 pm

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I have started back to school and I am trying to figure out how to
track my tuition payments. I am paying for college with student loans,
the loans are first dispursed to the college, then the tuition
expenses are deducted, the remaining balance is deposited into my
checking account. Because the tuition expenses are not being paid out
of my checking account how can I track the tuition expenses in
quicken? I cannot enter the transactions into my checking account
because I would never be able to balance my checking account.

For example:

Student loan amount: $5k
Tuition for semester: $2k
Balance deposited in my checking acct: $3k
My loan balance is $5k but I only received $3k, how do I account for
the other $2k in a manner that would allow me to create a report to
show all my tuition expenses?

Thanks for any comments,

Sam

430 No such article
I have started back to school and I am trying to figure out how to
track my tuition payments. I am paying for college with student loans,
the loans are first dispursed to the college, then the tuition
expenses are deducted, the remaining balance is deposited into my
checking account. Because the tuition expenses are not being paid out
of my checking account how can I track the tuition expenses in
quicken? I cannot enter the transactions into my checking account
because I would never be able to balance my checking account.

For example:

Student loan amount: $5k
Tuition for semester: $2k
Balance deposited in my checking acct: $3k
My loan balance is $5k but I only received $3k, how do I account for
the other $2k in a manner that would allow me to create a report to
show all my tuition expenses?

Thanks for any comments,

Sam

Posted by TomYoung on February 4, 2007, 10:08 am

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> I have started back to school and I am trying to figure out how to

> track my tuition payments. I am paying for college with student loans,

> the loans are first dispursed to the college, then the tuition

> expenses are deducted, the remaining balance is deposited into my

> checking account. Because the tuition expenses are not being paid out

> of my checking account how can I track the tuition expenses in

> quicken? I cannot enter the transactions into my checking account

> because I would never be able to balance my checking account.

> For example:

> Student loan amount: $5k

> Tuition for semester: $2k

> Balance deposited in my checking acct: $3k

> My loan balance is $5k but I only received $3k, how do I account for

> the other $2k in a manner that would allow me to create a report to

> show all my tuition expenses?

Here's one way:
Create a Student Loan liability account. Deposit $5k in your checking
account with the offset to the Student Loan liability account.
Disperse $2k (use the EFT action) to the school out of your checking
account with the category being Tuition expense. Net result:
Liabilty, Checking and Tuition expense all stated correctly. When you
go to reconcile your checking account mark the $5k as a cleared
deposit and the $2k as a cleared disbursement, even though they never
phyically will show up on your statement.

If you don't like the idea of "fictional" transactions showing in your
checking account enter the $5k as a split transaction in the Student
Loan liability account; $3k to the checking account, $2k to Tutition
expense.

Tom Young