Every dollar should count toward a student's education and career training. That is why Scholarship America is leading a national effort to educate communities and Congress about the need to make scholarships and grants tax-free beyond tuition, fees, books and supplies. We have a college completion crisis in America, and our tax laws are not helping students access the full support they need to stay in college and succeed.
Students put in a great deal of work to apply and successfully secure scholarships, yet they may not receive all the benefits intended of their award. Read more >>
Students Susceptible to Being Taxed on their Scholarships & Grants
Students who receive a "full-ride" scholarship could have a tax liability because the portion of the scholarship used for college living expenses is currently taxable. Students who work throughout the year could also surpass the tax filing threshold, and have a tax liability.
According to Balancing Work and Learning, The Georgetown University Center on Education and the Workforce report released in August 2018, college students are working while enrolled regardless of their income status. About 14 million students work and attend college, and just under half with jobs report having the job is a necessity. In 2015, the average annual work earnings of an enrolled undergraduate student working a 29-hour work week were $16,000 - this is well above the income threshold above which a tax return must be filed. Students who receive a mix of scholarships and federal, state or institutional grants could also be impacted and pay tax on the portions of those funds used for college living expenses. Finally, graduate students, who often work more, or students pursuing fellowships or professional degrees could face tax liability on their scholarships and paid fellowships.
Stay tuned as we raise awareness with Congress.
We will be working to raise awareness and educate members of Congress about this issue. Please contact Despina Costopoulos Emerson, Scholarship America Engagement Director, at dcostopoulos@scholarshipamerica.org for further information, or to become involved in the national policy and educational effort. For policy questions, contact Kalwis Lo, Scholarship America's Policy Director, at klo@scholarshipamerica.org.
Resources
To help you through the thick of your scholarship season, you will find the following Webinars and PowerPoint's in the redesigned Affiliate Resources.
Getting Students to Apply
Tracking Students Throughout the Scholarship Season
Report, Remind, Review: Tools & Tasks for Selection Sucess
March 18:Student Volunteer Award Program opens. Encourage your students to update volunteer activities in their student profile. Eligible students will be identified and invited to apply.