Outside Scholarships along with a full ride, stackable?

mommdc
Sun, 06 Mar 2016 20:22:46 +0000

I’m not sure but I think it depends on the school how they handle it.

Will outside scholarships stack or will they reduce their awards?

A full ride might pay for tuition, fees, room and board (certain options), some might cover books.

It might be a specific amount and not increase with cost increases.

So the outside scholarships might cover a more expensive housing option, increases in tuition and fees, books.

Then the rest might be refunded to the student for travel or personal expenses.

Scholarships in excess of tuition, fees, books are taxable income to the student and unearned income of more than $2100 is taxed at the parent rate (kiddie tax, form 8615).

So a student with a significant scholarship that covers room, board, travel, personal expenses might have quite a tax burden.