Effect of Scholarships on

Financial Aid and Income Taxes

 

Financial Aid

City College of San Francisco awards disbursed through the Scholarship Office are achievement awards and will not effect a student's financial aid eligibility for the academic year in progress. Instead, these awards will be considered income for the following academic year.

In contrast, scholarships awarded by an outside donor, such as the Bureau of Indian Affairs or the Marin Educational Fund, may affect a student's financial aid eligibility for the academic year in progress.

The CCSF Financial Aid Office wants to assure all students who are receiving financial aid that the college will do everything legally possible not to reduce scholarship recipient's financial aid award as a result of winning an outside scholarship. If an adjustment is made, the following schedule will be followed:

1. First, the amount of the scholarship will be added to your Other Resources, which includes fee waivers, veterans' educational benefits, vocational rehabilitation benefits, Americorp award, EOPS book voucher, etc.

2. Second, reduce Stafford load that has not been disbursed.

3. Third, reduce College Work Study award that has not been earned yet.

4. Fourth, adjust Perkins Loan and grants (FSEOG, CAL B, and CAL C). Note: Pell grant is never adjusted.

Grant aid will be the last portion of the financial aid package to be affected; however, if a reduction is required, students may have to refund part of their financial aid award to CCSF. You are advised to see make an appointment with your financial aid assistant to see if a budget adjustment to eliminate any over-award is possible. Reasons for budget adjustments include additional expenses such as dependent care, disability related expenses, increased transportation costs, and cost of a computer.

Income Taxes

Scholarships are not taxable to the student as long as they do not exceed expenses incurred for tuition, fees, books, supplies, and required equipment (room and board is not included). Each scholarship recipient is responsible for determining whether the total amount of all scholarships received by one individual is greater than such tuition and fees and is to report any excess amount as taxable income to the Internal Revenue Service.

Refer to the current City College of San Francisco Financial Aid Office Student Expense Budget, printed in the student's Award Letter or available in the Financial Aid Office, Cloud Hall, Room 324.