You're arguing in circles. I know it's compensation, and I'm not the one who proposed we make it need based. I'm pointing out why your solution wouldn't work.

You're arguing in circles. I know it's compensation, and I'm not the one who proposed we make it need based. I'm pointing out why your solution wouldn't work. >it should be taxed We tax what we want to tax, and we offer deductions to encourage behavior that we think is beneficial. Scholarship income used for tuition isn't taxed. We tax capital gains differently from ordinary income. We offer mortgage interest deductions. Should is subjective. There is no inherent reason to tax tuition waivers the same as employment income, apart from that's the way the IRS does it now (absent this specific deduction).