I used my excess scholarship money to pay off a 2016 student loan. Do I have to file the amount paid as income since it was used for previous tuition/fees?

[kcb33r]

I had a scholarship of $9,000 that didn't go towards 2018 tuition/fees, instead I put it towards my tuition/fees on a 2016 student loan. Does this count as tax exempt or do I have to claim the scholarship as income? 

[JohnW15 · Accepted solution]

Unfortunately, you'll need to claim this as income. 

Scholarships are considered taxable income to the extent that they exceed qualified educational expenses you incurred during the year for tuition, fees, books, and course related materials.