Tax-Free Taxable Scholarships
Roxana Hadad
Congratulations! You’ve won a scholarship! You’ll want to call Mom, Dad, Grandma, Cousin Bob … and Uncle Sam. Your scholarship may count as income; if so, it will be taxed. To make sure you’re ready for tax-time, find out if your award is taxable and what you need to do to file your return.
Tax-free Scholarships and Fellowships
A scholarship is tax-free if:
- You are a full-time or part-time candidate for a degree at a primary, secondary or accredited post-secondary institution.
- The award covers tuition and fees to enroll in or attend an educational institution.
- The award covers fees, books, supplies and equipment required for your courses.
The award is tax-free only as long as you use it for the purposes outlined above.
Taxable Scholarships and Fellowships
Your scholarship is taxed if it is used to cover:
- Room and board
- Travel
- Research
- Clerical help
- Equipment
If your award, for example, covers both tuition and room and board, the amount you use for tuition is tax-free, while the amount you use for room and board is taxable. If you need to make this adjustment, you may have to adjust other parts of your return as well. For example, if you are filing a deduction for educational expenses, you must reduce the amount of your deduction by the tax-free amount of the award.
Find money before you pick school
From Daily News
If you or your kids plan to begin college this fall, spring is the “Show Me the Money” part of the college-picking process.
Students have received admissions decisions and aid offers, but some packages may not include grants you were hoping for and others might not meet your full needs.
Your options? One is to dig harder for scholarship money.
Searching for scholarships should cost you nothing (although some sites may require registration). Free sites include fastweb.com, collegenet.com and collegeboard.com.
Skip the services that charge; they can be expensive, especially for what they offer. A colleague’s cousin once spent $395 for a search service that guaranteed five sources of aid. The results: The report said the student should apply for a state grant, federal Pell grants, a federal subsidized student loan, a federal unsubsidized student loan and work-study.
Gee, thanks, but that info could have been obtained for free and the $395 could have helped pay for school.
Aside from the free search services, other scholarship sources may be right in front of you. If a parent belongs to a union, ask whether it offers scholarships to children of members. Ask employers if there’s a company scholarship program or an employee benefit to help with dependents’ college bills.
Remember that most colleges make their initial admissions decisions based on six semester high school transcripts; any academic-based scholarship offers, such as CUNY’s Peter F. Vallone Academic Scholarship for B students from city high schools, are based on that record. If a grade-point average has improved, ask a school to review updated records to determine whether a scholarship can be awarded.
School Grants Application Process
Regardless the scenario you’re operating under, you’ve enrolled and it ’s going to cost you money. How much? Well that depends on your eligibility for school loans, scholarships, or grants offered by governments (federal and state) or the school itself.
School grants have special appeal because, like scholarships, they do not have to be repaid. This gives them that extra benefit over student loans. Grants can be accessed through federal and state government agencies via a detailed application process.
The issue of applying for a school grant to help with the financial demands of higher education is certainly something you should consider. If and when you do, there are many resources available to make your application process less daunting.
The best way to approach the school grant process is to talk to the financial aid department at the school you’re interested in attending. A counselor in one of these departments will be able to point you in the direction of federal and state government programs for students.
Another great resource to learn about the process of applying for school grants is the US Department of Education ’s website:
www.fafsa.ed.gov
And their web portal entitled Student Aid on the Web, located at:
www.studentaid.ed.gov
There you will find a wealth of information designed to guide you through the process of applying for a school grant.
Once you’ve decided to apply for a grant be prepared to provide detailed information and documentation about your current financial situation. It is also wise to apply as soon as possible, beginning January 1st each year. A separate application has to be made for every year of study.
As stated above, the school you are planning to attend may offer grants through an institutional grant program. They may have in place a process that will help cover the costs you cannot while at their institution. The criteria may be based on your financial situation or there may be no criteria at all: being awarded on academic merit alone.
Private corporations also assist with grant money to children of their employees who, because of stellar academic achievement, earn this reward as part of a company ’s goodwill and commitment to the community. If you qualify for this scenario then it ’s worth investigating.
American NGO Awards Scholarships To Underdevelop Region
From Thisday Online
Bauchi
An American NGO, Leadership Initiatives has awarded scholarships to 50 post-graduate students from the northern part of the country.
The Director of Operations and Co-Founder of the organization, Mr. Antonie Eloi said this when he visited the Bauchi Zonal Office of the News Agency of Nigeria (NAN).
Eloi said the scholarship intervention program was part of the organization’s Northern Nigeria Regional Leadership Development Program.
He said the Northern Nigeria Regional Leadership Development Programme was multi-faceted and designed to combat the problems of underdevelopment in the region.
Eloi said the organization had also signed a Memorandum of Understanding (MOU) with the Abubakar Tafawa Balewa University (ATBU), Bauchi, to provide leadership entrepreneurship training to the students.
He said the objective was to train the institution’s undergraduates on how to be job providers rather than job seekers at the end of their studies. We partner with a local university to provide leadership, entrepreneurship and community development training to classes of approximately 20 students. Our first group of students will be selected this year at Abubakar Tafawa Balewa University, Bauchi. Our goal is to make university education relevant to the needs of communities and society.
CampusRN Announces a Nationwide Nursing Students Scholarship Program
From PRWEB
CampusRN will award $50,000 in scholarships to nursing students.
Cambridge, MA (PRWEB) April 15, 2008 — CampusRN is launching a new scholarship program in conjunction with the creation of the CampusRN state edition network. This nationwide nursing scholarships initiative is the most comprehensive of its kind for nursing programs and nursing students because it features scholarship winners from all 50 states. CampusRN will award a $1000 scholarship to a deserving nursing student in each state on the anniversary of the launch of that state’s customized site.
Matt Casey, CEO of CampusRN said, “We are thrilled to be able to offer such a comprehensive scholarship program. It was important to us to be able to help a nursing student in each state because there are qualified and needy nursing students nationwide and all too often scholarship opportunities tend to only target candidates in and around large metropolitan areas.”
IES Abroad Announces New Study Abroad Scholarships
From
IES Abroad (the Institute for the International Education of Students) is pleased to announce several new study abroad scholarship opportunities for U.S. college and university students. New scholarships are available to help make studying abroad possible for students in three categories: students traditionally under-represented in study abroad programs, students participating in the IES Abroad European Union Summer program and students interested in studying in Australia.
Chicago (PRWEB) April 14, 2008 — IES Abroad (the Institute for the International Education of Students) is pleased to announce several new study abroad scholarship opportunities for U.S. college and university students. New scholarships are available to help make studying abroad possible for students in three categories: students traditionally under-represented in study abroad programs, students participating in the IES Abroad European Union Summer program and students interested in studying in Australia.
“For today’s young adults, study abroad experience is no longer a luxury; it is a priority,” said Mary Dwyer, Ph.D., president and CEO of IES Abroad. “With these new scholarships we move closer to our goal of helping make study abroad a reality for all qualified students, regardless of financial limitations.”
Furthering IES Abroad’s commitment to diversity, the IES Abroad David Porter Diversity Scholarship, named in honor of David Porter, a member of the IES Abroad Board of Directors since 1995, will award up to $5,000 to one student per term toward an IES Abroad semester or academic year program. The scholarship is open to students who have been traditionally under-represented in study abroad programs, including but not limited to, students of color, the Gay, Lesbian, Bisexual, Transgender population, students from under-represented religious and ethnic groups, students from low income families, first-generation college students, students with physical disabilities, and students with a demonstrated history of overcoming adversity.
Students interested in studying abroad in Australia can apply for several new IES Abroad scholarships worth up to $3,750 per student, per term. In coordination with the University of Adelaide, the University of Melbourne and Macquarie University, the scholarships are available to students with a 3.0 grade point average in addition to other program-specific requirements.
“Applying for and receiving a scholarship was definitely a main factor in my being able to study abroad,” said Lisa Diaz, a nursing major at the University of Portland who participated in the IES Abroad Santiago Summer Health Studies in 2007. “The award helped me keep my costs manageable, which was really important considering my limited financial resources as a student.”
In addition, a new IES Abroad European Union Summer program scholarship also is now available. The scholarship will provide up to $500 per term to one student who can show financial need through their home campus financial aid office.
Currently Available Student Scholarships To Apply
From Beacon News
The following scholarships are currently available:
• AIA scholarships — AIA Northeast Illinois, in conjunction with The American Institute of Architects, is offering three $3,000 scholarships. Applicants must be United States citizens and be enrolled for fall 2008 in one of the 27 accredited architecture programs within the National Architectural Accrediting Board’s East Central or West Central regions. Applications, including two letters of recommendation, must be postmarked by May 1. Visit www.aianei.org.
• CSBG Scholarships — The annual Kendall-Grundy Community Action Agency has $4,000 in Community Services Block Grant Scholarships available for individuals who need financial assistance and are majoring in education or occupational training in Illinois. Applications will be evaluated on the basis of financial eligibility, scholarship potential, commitment to civic affairs, career goals and personal interviews. Deadline is April 18. Call Diane Alford at (630) 553-9100.
• Doroteo Arroyo and Juan Ruberte Scholarship — Aurora Puerto Rican Council, Inc., is accepting scholarship applications for students of Puerto Rican descent (at least one parent or grandparent of Puerto Rican descent) who will be graduating from high school or who are currently enrolled in a college or university this fall. Students must have a current cumulative GPA of at least 2.0 on a 4.0 scale or 3.0 on a 5.0 scale. Deadline is May 2. Call (630) 299-8379.
• Kane County Bar Foundation Scholarships — The Kane County Bar Foundation has two $1,000 scholarships available for Kane County residents who are attending law school during the 2008-09 academic year. Deadline is May 1. Visit www.kanecountybar.org/files/2008-2009scholarship.doc.
• Philip J. Becker Scholarship — The Batavia Lions is accepting applications for this scholarship of $500 to $1,500 for one year. It is applicable to the first year at an accredited college, university or community college. All high school seniors who are residents of Batavia are eligible to apply. Deadline is April 27. Call (630) 879-7990 or e-mail batavialions@yahoo.com.
Scholarship Scams Desperate Measures
Now comes a government warning that families have another challenge to contend with: con artists.
According to a report released Monday by the Federal Trade Commission, 482 individuals filed complaints with the agency about scholarship fraud in 2002, up one-third from 322 in 2001.
In fact, that is just a fraction of the families who are misled, said FTC spokesperson Brenda Mack.
According to National Association of Student Financial Aid Administrators, some 350,000 people are cheated out of $5 million in scholarship scams each year.
Many families fall victim because they’re so eager to send kids to school that they’ll try anything and trust anyone.
Desperate ties, desperate measures
It’s easy to understand their desperation. Tuition, fees room and board now average $25,052 a year at four-year private colleges and universities, according to College Board. At four-year public institutions, the tab runs $9,663.
Scholarship scams have been around for decades. But experts say con artists are getting more sophisticated. Years ago, a family might receive a letter inviting them to send money to obtain scholarship information that never materialized.
Now, such offers are coming over the Internet, through e-mails, and in telemarketing calls.
Families may be invited to attend a free seminar about scholarships only to be pressured to signing expensive contracts — as much as $200 or more — to “hire” professionals to help them obtain scholarship dollars. Many times that’s the last they hear of operators or, at best, they receive scholarship information they could have obtained for free from legitimate sources.
Another scam? Families are told they will receive guaranteed scholarship money if they provide financial information to obtain it. Experts say you should never give out a credit card or bank account number to “hold” scholarship dollars.
In addition, be wary of any offer saying you’ve been named as a finalist for scholarships you’ve never heard of. For more information about common scholarship scams, click here.
First Scholarship Fund Partners With Agassiz Village
From PRWEB
First Scholarship Fund, a non-profit organization providing college scholarships to low income teens, is excited to announce a partnership with Agassiz Village, a unique non-profit summer camp in Poland, Maine catering to children from racially, economically, and socially diverse backgrounds.
Cary, NC (PRWEB) April 10, 2008 — First Scholarship Fund, a non-profit organization providing college scholarships to low income teens, is excited to announce a partnership with Agassiz Village, a unique non-profit summer camp in Poland, Maine catering to children from racially, economically, and socially diverse backgrounds. First Scholarship Fund will provide five scholarships to low income students from the Boston area to attend summer camp at Agassiz Village. Funding for these summer camp scholarships, including transportation, has been donated by Agassiz Village. Each of these students will then receive up to a $1,000 college or university scholarship upon graduation from high school.
“Agassiz Village and First Scholarship Fund are both dedicated to the mission of motivating and inspiring all students to complete their high school education,” says Rebecca Funk, President of First Scholarship Fund. “With this partnership, we can directly impact the lives of teens at the highest risk for dropping out by giving them a positive experience at summer camp and giving them the motivation of a guaranteed college scholarship.”
The drop-out rate among American high school students is alarming and organizations such as First Scholarship Fund and Agassiz Village are committed to turning the tide in our public schools. By combining the positive experience of summer camp with the pride of earning a college scholarship at a young age, low income students will be inspired and motivated to stay in school.
“This partnership is not only an opportunity to encourage our campers to shoot for higher educational goals, but also for them to know they are attainable,” said Lisa Gillis, Executive Director of Agassiz Village.
Eligible students are between the ages of 12 and 15, attend public school, qualify for reduced or free school lunch, and must submit a completed application to First Scholarship Fund by May 9. Once applications are received First Scholarship Fund will choose five students who will receive a free summer camp experience at Agassiz Village and are guaranteed a college scholarship from First Scholarship Fund upon high school graduation.
How to Go to College Without Drowning in Debt
From diversityinc
Let’s face it: These days, getting into a good college is the easy part. It’s paying for college that’s proving difficult, especially for students from low- to middle-income families. And despite efforts by wealthy universities to improve their financial-aid packages for low- and middle-income students, many students are still forced to take out huge loans to pay for school.
Today, the average annual tuition (including fees, room and board) at a four-year private college or university is $32,307. That’s up 77 percent from $18,312 in 1986. For public colleges and universities, the average total costs are now $24,044, up 219.4 percent from 1986 when the average tuition for public universities was $7,528, according to the College Board.
“There are a variety of factors that can cause tuition to go up,” says Jean McDonald Rash, university director of financial aid at Rutgers University. “Most public schools rely on investment from state government in order to keep the tuition and other costs down for students. When the budget situation in states becomes dire and higher education is cut across the board, essentially those costs are pushed on to families.”
So how are most people paying the bill? With loans. Big ones.
“For many low-income families, paying for school is a big challenge because, often, home-equity loans are not available. More and more families are relying on private borrowing,” says Rash.
For the 2003–2004 school year, the latest year for which data is available, the average college loan for a Black student was $19,800. For Asian students, the average was $17,900, while the average Latino borrowed $17,000, according to the National Center for Educational Statistics. And these numbers are expected to rise dramatically as the price of higher education continues to soar.
Financial advisers warn parents and students to explore all of their financial options before drowning themselves in debt. Here are a few tips on how to keep your head above water.
No. 1: Plan
Financial planning is vital at the onset. Figuring out how much you can contribute toward paying for school will give you a clear picture of how much financial aid you will need and also may help you decide which school best suits your educational needs but is within your budget.
“Knowing how much your school costs is very important … if you are at a lower-cost public school versus a higher-cost private, that public school is going to save you a lot more for your money, in terms of offsetting your cost,” says Rash.
So how do you calculate your family contribution?
The estimated family contribution is based on the income and assets of the student and his or her family, the number of people in the household and the number of children in college. A family needs to take the total cost of the school and subtract what the federal government says you should be able to contribute; the difference is your need.
No. 2: Apply for Scholarships
There are many scholarships that are specifically for people from traditionally underrepresented groups. Financial advisers say applying for scholarships should be the first step applicants make.
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