Ohio considers bill to make college grants non-taxable

College grants and scholarships have long been a source of free financial aid for students looking to earn a postsecondary degree. However, many of these resources are subject to income tax, which can reduce their value to recipients.

Recently, a bill was proposed to make college grants tax-free in Ohio, according to The Associated Press. The document is currently waiting to be signed by Governor John Kasich, and it could relieve individuals who rely on this money to pay for room and board.

As it stands right now, college grants are taxable in Ohio if they are used for living purposes, rather than for tuition and books. If the new bill passes, room, board and meals will be exempt from income tax in Ohio. However, some legislators say that this could cause the state to lose millions of dollars.

Students who find it hard to get by on college grants alone might want to consider applying for additional scholarships. Unlike loans, this money does not have to be repaid and can be used to curb the cost of tuition. Scholarships can also help pay for expenses, such as textbooks and college credit courses.

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