Full funding but does not cover their estimate of cost

[a761127]

One university is offering full funding (full tuition, health insurance, and stipend) for 9-months period but in return I am not allowed to hold any other employment. Their stipend amount is exactly their estimate of cost of living but since they did not take tax into account, the stipend will not actually cover the living with their standard (the bare minimum). I think this is a mis-calculation issue but the school thinks it's a case with individual needs/preference and therefore not willing to explore how to modify.

Any thoughts on this?

[ridgey]

If you're receiving a nine month stipend, then they only prohibit you from taking outside employment during those nine months. You can still work in the summer.

You're right that the COA doesn't include tax and therefore you're not actually getting the "minimum". But I doubt there's anything you can do about it. Cost of living is such a variable thing anyway - there are probably plenty of people who couldn't live on the stipend even if it included tax, and plenty who still have some left over on the lesser amount.

[a761127]

If you're receiving a nine month stipend, then they only prohibit you from taking outside employment during those nine months. You can still work in the summer.

You're right that the COA doesn't include tax and therefore you're not actually getting the "minimum". But I doubt there's anything you can do about it. Cost of living is such a variable thing anyway - there are probably plenty of people who couldn't live on the stipend even if it included tax, and plenty who still have some left over on the lesser amount.

Cost of living varies, yes, there is no doubt about it. But being told by the program that I should be fine in having ends meet (on basis of their estimate from which they determined the stipend amount) but that estimate doesn't cover tax.

Not that I think there is anything I can do about it (as you mentioned)...

[red_crayons]

You could work off the books to make a little extra. Tutoring comes to mind. Being an artist's model is something I've done in the past (while working an underpaying OFFICE job), and it pays well.

[frenchpress]

The tax burden will be minimal. Under the Tax Code, only the portion of the stipend that goes directly to living expenses is taxable. The tuition scholarship isn't. So say they're giving you a total of $50,000: $30,000 towards tuition and fees and $20,000 living expense. Although you have to report the entire 50k on your 1040, only the 20k living expense is taxable. Once you take your standard deduction and personal exemption, it's unlikely you'll owe any tax. Unless of course, you're earning additional income over the summer which will raise you Gross Income. In that case, you should just withhold an extra 15% of your summer paycheck. If you're married or a dependent of someone else, ignore what I just said.