What are “Scholarships and Grants” seen in Part 2 of the financial supplement?
The category “Scholarships and Grants” includes many sorts of “gift aid” and “fee reductions” that may be identified as funds that students normally are not required to repay. Besides scholarships and grants, other common types of “gift aid” are fellowships and traineeships. Fee reductions are credits applied to registration fees to decrease the balance owed by the student. Examples include waivers and tuition/fee remissions. For more information, read the discussion on the “Definitions” page in this web site. “Scholarships and Grants” may be viewed as “Adjustments to Qualified Expenses,” if they are claimed as tax-free funds. As stated under “Adjustments to Qualified Expenses” for either the Hope or Lifetime Learning credit in IRS Publication 970: Tax Benefits for Education [download], tax-free educational assistance may include scholarships, Pell grants, employer-provided educational assistance, veterans’ educational assistance, and any other nontaxable payments (other than gifts, be
