[Mi_chief_fan]

Originally Posted by htismaqe

And here's another wrinkle...

Most (if not all) grants are done directly to the institution. The student never gets a "check", and in the case of institutional scholarships, money never actually changes hands at all.

If they become employees and get a paycheck, not only will that be taxable, but that income will be issued TO THE STUDENT. At that point, like any work-study job, it becomes the student's money to do with as the please.

What happens when 30+ athletes at a school suddenly default on their tuition payments because they decided to spend that money on something else?

Boosters will happen.