How do (up to "full ride") scholarships work with grants?

Paying for College
11

<p>^^^</p>

<p>The student is a NMSF with strong stats who can get top scholarships. So, she has some great options where costs will be covered by scholarships and Pell.</p>

<p>I think now the OP realizes that the student won’t be hurt Pell-wise and probably not tax-wise, since the part that is taxable will mostly come under the $5700 amount that is exempt from taxes.</p>

<p>The student can get…
Free tuition (not taxed)
Stipend (for books) not taxed
room (taxable amount is about $4500)
Laptop (not taxable - it’s “equipment”)
Pell for board and misc. (depending on EFC, could be up to $5550 grant)</p>

<p>If the student’s Pell amount is large enough, then it can cover board and misc and also have some left over to cover any possible tax liability.</p>

<p>Swimcatsmom does a great job explaining on this thread…</p>

<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1021026-how-do-scholarships-hurt-pell-eligibility.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1021026-how-do-scholarships-hurt-pell-eligibility.html&lt;/a&gt;&lt;/p&gt;

<p>Generally speaking, a scholarship or fellowship is tax free if you are a degree candidate and the award is used to pay for tuition and required fees, books, supplies and equipment. Any amounts used to pay for room and board and a stipend for living expenses is taxable.</p>