You have to report any taxable portion of your scholarship or fellowship on your tax return.

FORBES: Back to School: Scholarships and Fellowships

Any amounts received as a scholarship or fellowship used to pay these costs are considered taxable.

FORBES: Back to School: Scholarships and Fellowships

If the candidate receives another award, scholarship or fellowship for the proposed research, she should inform UNESCO immediately and her application will be reviewed and may be withdrawn.

UNESCO: Sources

You can use money that you borrow in order to calculate the deduction but you cannot claim a deduction or credit based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds such as a Coverdell education savings account, tax-free savings bond interest or employer-provided education assistance.

FORBES: Back to School: Tuition and Fees Deduction

However, if the only income you receive during the year is a tax-free fellowship or scholarship, you do not have to file a return.

FORBES: Move up http://i.forbesimg.com t Move down

Those services include teaching, research, or other services even if they required as a condition for receiving the fellowship or scholarship and even if there are restrictions or penalties imposed if you do not comply with the requirement to perform services.

FORBES: Move up http://i.forbesimg.com t Move down

Normally, all or part of what you receive as part of a fellowship or scholarship is tax free so long as you are a candidate for a degree at an educational institution and the amounts you receive are considered qualified educational expenses.

FORBES: Move up http://i.forbesimg.com t Move down

Turned down first for a Rhodes Scholarship at Oxford and then later denied a fellowship at Cambridge, Schwarzman had little choice but to follow the well-trodden path to Wall Street.

FORBES: The New Colossus of Rhodes