Hal - yes - the program was through Michigan, but the school in Spain is non-accredited as far as the US loans go. Apparently, as I am learning now, this is extremely common, and there are literally only a handful of programs that are accredited. I'm still trying to double check with U of M, but I spoke with the study abroad program directly, they basically told me - "Yeah - you're screwed". I spoke at length with the paper shuffle people there and told them I just basically needed a 1098T from them to prove where the money went. She told me in no uncertain terms that the rules strictly forbade them from issuing any such because the school was not accredited through the govt loan program.
She sent me a copy of the cost breakdown of the program (which I already had) - but - if I understand it correctly, the bottom line is most simply this: The Govt will not allow the use of their loans on a tax free basis for school curricula that have not been approved through their process. It doesn't matter if the curriculum was approved by a school program they HAVE approved - the program in question must be approved directly, and if its not, while you can still use the money for said program, you're going to pay taxes on that portion of the loan as if it were income....if I understand what they are telling me.
