Understanding is such monies if used for room and/or board are taxable, and that is an IRS policy that should be changed. The Congress over the years has allowed the middle class to be crushed in the area of higher education, and that is a topic for itself. A little tweaking like that should not be a hard issue. Not asking for "free education at community college" or to any college, just not having to go into perpetual debt (have four children). Like most here on this forum son worked incredibly hard to get AROTC scholarship, and to expensive private school. School gave him very nice scholarship that will cover room and board but that will be a taxable event. Son also knows the AROTC is more like a loan and he will pay it back with time in service. Just saying taking care of little things can go a long way.