<p>Or maybe it’s a free lunch with strings attached. You never know 'till you get there what kind of “free” you’ve agreed to. We know a kid stuck at a school she’s miserable at; parents refuse to even think about allowing her to transfer since there is zero merit money available at the schools she’s interested in for transfers; the schools that originally admitted her that would have been a better fit don’t offer merit aid at all, and they’ve decided why pay for college if your kid can get a free ride. Hey, it’s their money and their kid so they can do what they like-- but life is full of trade offs.</p>
<p>It’s not a free lunch anyway, because the college gets something for it–they get to attract good students, which helps them to look better, and to attract even more good students.</p>
<p>What’s COA? I’ve heard of COLA but not COA.</p>
<p>^Cost of Attendance</p>
<p>Thanks! ^^^</p>
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Dad II, no offense, but on these boards you sometimes come off as a 5 years old that just blurts out whatever comes to his mind, without any regard to his audience…
Most kids and parents had been much less fortunate than you and your D this year. So to hear you complain annoys them. (It even annoys me - and I have no dog in this race…)</p>
<p>I agree with chevda–my s recvd full ride to wash and lee–and partial tuition to others–emory, tufts–we are very grateful–but also recognize he put in the effort all these years (as all of our kids have) it’s a tradeoff as others have pointed out–I’m sure your d could have recvd full ride at 2nd tier school–but if she was accepted at Stanford you make the choice for her to receive that amazing opportunity and education–and sounds like she is reaping benefits of the new fin aid policy so not sure what it is that she didn’t get…wish her the best as to all of our hard working kids…</p>
<p>Sybbie 719: Could you please explain what you mean by this? </p>
<p>Also remember that all “free money” over the cost of tuition, books and fees is considered taxable income (so there really is no such thing a a free lunch or a free ride, because Uncle Sam is getting his cut).</p>
<p>Your statement is very clear, but how exactly does it happen? Does the school report amount awarded to the government just as if it were salary? I had never heard of this before.</p>
<p>Regarding the athletic free ride, we all know that athletes spend so much time during college on their sport that they are paying dearly for their scholarships. At lots of schools many of them never even graduate, or their courses are so watered down that they dont learn much.</p>
<p>In reality, someone somewhere is always paying for the lunch.</p>
<p>Receiving merit and/or financial aid is wonderful, but it isn’t free. As previous posters have said, those with merit aid earned it, and those with financial aid have lived lives with less.</p>
<p>Colleges can issue 1099’s and report the income to the IRS. You get a 1099 that comes, or is available to download from Blackboard, etc at the same time as W-2’s are issued.
[FinAid</a> | Scholarships | Taxability of Scholarships](<a href=“Your Guide for College Financial Aid - Finaid”>Taxability of Scholarships - Finaid)</p>
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<p>Thanks, Sunny. I learn something new every day on cc.</p>
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<p>Best line ever.</p>
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<p>That statement is incomplete and misleading. </p>
<p>In general terms, scholarships are fully taxable, but subject to allowable deductions for tuition and fees required to all students in a program. Expenses for books and supplies fall into a grey area, depending the IRS guidelines one reads. </p>
<p>In the end, the taxable amount of a scholarship exceeds the cost room and board.</p>
<p>Xiggi:</p>
<p>I’m sorry if I’m being obtuse, but we’re new to this game.</p>
<p>Let’s suppose that D receives scholarship from State U to cover tuition, fees and some books. Then suppose she goes out and gets a corporate scholarship that will cover almost all but not all of the cost of room and board. Is the corporate scholarship subject to taxes?</p>
<p>Thanks for your answer!</p>
<p>Same Cage –</p>
<p>We just finished the taxes and were in this situation..
The scholarship for tuition was not taxed and the scholarship for room & board was and since payable to D was considered income for her tax return.</p>
<p>Hope that helps</p>
<p>It’s not the corporate scholarship itself that is subject to taxes. It’s the amount of money your child receives in the form of grants/scholarships (“free money”) over & above tuition and mandatory fees (including books that are required of every student in a particular course) that is taxable. You are required to report all outside scholarships to the college. At the end of the year, the college will send you IRS Form 1098-T, which lists the amount you received in scholarships. It also lists the amount of qualified expenses, from which you subtract the scholarships/grants to figure out how much (if any) is taxable income. The form is filed by the college with the IRS, I believe. Here is a good link that explains it: <a href=“http://www.keystone.edu/tuition_aid/1098_t.dot[/url]”>www.keystone.edu/tuition_aid/1098_t.dot</a>.</p>
<p>I guess what I’d like to hear from DadII is what lessons did he learn that he will apply to the college selection process with his son. </p>
<p>All of us have our areas that we’re uneducated and inexperienced at, but learn when we go through a process. If we repeat the exact same behaviors, knowing they weren’t helpful the first time around, then we haven’t learned anything. But if we take the experience and go into it again with a different attitude and approach, then the lesson was well taken.</p>
<p>Thanks Kelsmom! That clears it up.</p>