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Yes, low income people, subject to certain levels, are automatically awarded a Pell Grant. This is money to be given to a participating College and University that does not have to be paid back.

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Student Tip: Understand Tuition Expenses?

Understanding one's tuition expenses and the source that pays them is essential for filing taxes. If you are using a grant to pay for your room and board in college, then this income may be considered taxable income. This is usually quite a surprise for students in college or grad school. A lot of students are under the impression that a grant is completely non-taxable income. The truth is that a grant is a form of income that may be taxed if it is not used for tuition or book expenses. If you have questions about your grant, then you should contact a tax professional.


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