This information sheet provides some answers and direction on the impact and effect of scholarship awards on Financial Aid and income taxes.  

Scholarship awards disbursed through the City College Scholarship Office are considered achievement awards. These awards will not affect a student’s financial aid eligibility for the academic year in progress.  However, awards will be considered taxable income for the following fiscal year.

Scholarship awards that are not disbursed through the City College Scholarship Office are considered awards by outside donors.  These types of awards may affect a student’s financial aid eligibility for the academic year in progress.

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

1. The amount of the scholarship will be added to your “Other Resources”,that includes: fee
    waivers, veterans’ educational benefits, vocational rehabilitation benefits, AmeriCorp
    award, EOPS book voucher, etc.
2. Reduce any Stafford Loan(s) that has not been disbursed.
3. Reduce a student's Federal Work Study award that has not been earned yet.
4. Adjust Perkins Loan & grants such as FSEOG, CAL B & CAL C.  The Pell Grant is
    never adjusted.

Grant aid will be the last portion of the financial aid package to be effected; however, if a reduction is required, students may have to refund part of their financial aid award to CCSF.  Students are advised to make an appointment with a 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 the cost of a computer.

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. Please have your tax consultant refer to IRS Instructions for Form 1042S and Form 1098T for more information.

Refer to the current CCSF Financial Aid Office Student Expense Budget, printed in the student’s Award Letter, or available in the Financial Aid Office, Cloud Hall, Room 324.