undergraduate bulletin - LaGrange College

LaGrange College Work Aid Program, an institutionally funded student employment program,
provides students with opportunities to earn additional money for school through employment in
on-campus departments or off-campus community service activities. Although this is a nonneed-based
program, first priority will go to students who demonstrate financial need.
STUDENT FINANCIAL AID AND FEDERAL TAX IMPLICATIONS
Students receiving scholarships and grants that exceed their tuition, fees, books and supplies
should be aware that these funds are taxable under federal and state tax law. It is important that
students maintain records of their grants and scholarships and documentation of educational
expenses for reporting purposes.
Federal tax law allows for only qualified scholarships and grants to be excluded from income.
Qualified scholarships are any amount of grant and scholarship received that is used for tuition,
fees, books, supplies, and equipment required for course instruction. Scholarships and grants that
are specifically designated for educational expenses other than those described under qualified
scholarships (room, board, transportation, or living expenses) are taxable.
For information, please read IRS Publication 970, Tax Benefits for Education, for more details
on reporting requirements or consult a tax professional.
SUSPECTED FRAUD
Institutions are required to report cases of suspected fraud to the Office of the Inspector General
of the Department of Education, or, if more appropriate, to the state or local law enforcement
agency having jurisdiction to investigate these allegations. Fraud may exist if the institution
believes the applicant misreported or altered information in order to increase their financial aid
eligibility or fraudulently obtained federal funds.
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