Best Of
Re: Scholarship Room & Board/Potentially Taxable Expenses
Hi @RandyMacon,
The burden of proof falls on the student. We have students sign a document acknowledging direct payment and intended use. There is a paragraph that states tax implications if money is not used for educational purposes. Most times, a student won't be taxed because their income and scholarship distribution is too low to have a significant impact. Best practice is to pay institution, but we are finding the barriers to completion are those expenses not included in COA. Families put all their money into the tuition/room/board and not much left for books, transportation, etc.
I hope this helps!
