Many universities seeking to upgrade their faculties are willing to offer educational assistance scholarships, loans, and grants to current faculty. This permits a university to retain and upgrade desirable faculty while encouraging them to increase their academic credentials. Ways to minimize the tax consequences are explored.(MLW)

The Tax Reform Act of 1986 made changes with negative implications for scholarships, fellowships, and grants for study or research. The Act also affects three fringe benefits available to academics: tuition remission plans, educational assistance plans, and the provision of faculty housing for no rent or a nominal rent. (MLW)

An overview of the former taxation of scholarships and fellowships is presented, along with information on the practical implications of the changes brought about by the Tax Reform Act of 1986. Included is a copy of the guidelines issued by the Treasury Department and supplementary legislative history information from the "General Explanation…

The federal government has changed the status of grant money provided to student athletes, with certain portions of the grants now taxable and others not. These changes have implications for athletes, parents, and institutions, and some aspects of the law remain unanswered. (MSE)