<p>Well, the school isn’t actually receiving money from itself when you get a FA award. Perhaps it is just agreeing to have you attend for less.?</p>
<p>At my daughter’s school they say that the per student cost to run the school is close to 80K, but tuition is 40K - so all students can be said to be getting FA in a sense. This amount is not taxable. </p>
<p>I have heard of graduate school tuition awards being taxable. It is an interesting question.</p>