<p>Grad students! Sue, see post 10 & 11 - there is no line for reporting these refundables, in fact FAFSA instructions specifically state do not include them as non taxed income. The education tax credit is reported but is a lttle different (formula backs out of equation).</p>
<p>I would consider doing this for my D if she were farther along…6 years worth of room would make a sizeable dent in a mortgage and she’ll likely have to do summer courses just to finish in that time. An $8K inducement is tempting…but of course no one would write a mortgage for an 18 year old without a trust fund!</p>