Taxpayer was a student in final year of college. Took out a loan to pay tuition of $25,000
Graduated, became a teacher in public school system.
Applied for a grant for education and received the grant.
Used the grant to pay off part of her tuition loan
It appears that the grant is taxable.
Had she applied for the grant while in school and used the grant to pay tuition it would not have been taxable.
Any thoughts on a different conclusion?