The background: Scholarship amounts received by students during a tax year, that exceed the cost of tuition, books and fees, are taxed as unearned income to the student in that year. Scholarship amounts awarded to the student to specifically pay for room and board, are taxed as unearned income. The Good News. Most undergraduate scholarships…
The US Education Department has just issued suggestions to schools on the wording and content of financial aid offers sent to students. The body of the notice is shown below. The take-away is that there are no set guidelines that schools must adhere to when designing financial aid offers. Also, that schools often send offers…
Important Note to Seniors As you organize your admissions application, it is very important that you review the financial aid requirement and deadlines for each of your target schools. Do not wait until after you have submitted the admissions application to begin researching the financial aid application process! Every college will have different requirement and…
The Tax Cuts and Jobs Act changed the following provisions: Federal Student loans: Stafford Loans, Perkins Loans and Grad Plus Loans that are discharged due the death or permanent disability of the student borrower are no longer considered income when discharged. Effective for tax years 2018-2025. Federal Parent Plus Loans: Loans that are discharged due…
