Student and Parent Loans are not
taxable under any circumstance.
Scholarships, grants, fellowships, qualified tuition reductions and stipends are tax free only if
you are a candidate for a degree at an eligible education institution and
used those funds to pay tuition, registration fees, books, supplies and equipment required for the courses being taken.
However, any scholarships, grants, fellowships, qualified tuition reductions and stipends used to pay room, board, travel, research, clerical help or equipment and other expenses that are not required for enrollment in or attendance at an eligible education institution are taxable
Detailed information on the taxability of scholarships and grants can be obtained from the following Internal Revenue Service publications:
For additional help and information, please visit the IRS website.