*Explanation

As defined in IRS Publication 970 Tax Benefits for Education, scholarships, fellowships and educational assistance grants are amounts paid for the benefit of an individual to aid in the pursuit of study or research. They are generally paid to or for the benefit of students at an educational institution, to aid in the pursuit of their studies or related research. No past, present or future services are expected in return for these payments, nor are recipients expected to repay them. These payments typically support educational needs, such as, tuition, fees, room, board, supplies and travel, primarily for the benefit of the student's academic development.