More on scholarships:

For the payments to the teacher's to be tax free there are specific
conditions that must be met.

1.  They must be a candiate for a degree at an educational institutions.
2.  Amounts paid for scholarship are used for tuition and fees required for
enrollment or attendance at the educational institution, or for books,
supplies, and equipment required.
3.  The amounts received are not a payment for services.

__________________________________________________
Kris E. Rhodes,
Coordinator, Research and Sponsored Programs
Stephen F. Austin State University
Box 13024 SFA, Nacogdoches, TX 75962
Phone 409/468-6606, Fax 409/468-1251
http://www.research.sfasu.edu
email: xxxxxx@sfasu.edu