Is financial aide scholarship grants considered income?

[RichardG]

In most cases, no.  A scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution.

A scholarship or fellowship grant is tax free only to the extent:

• It doesn't exceed your qualified education expenses;
• It isn't designated or earmarked for other purposes (such as room and board), and doesn't require (by its terms) that it can't be used for qualified education expenses; and
• It doesn't represent payment for teaching, research, or other services required as a condition for receiving the scholarship.