It's a crazy system indeed and it's not only for scholarships that marginal tax rates on the poor with benefits are often extremely high. Other examples include

It's a crazy system indeed and it's not only for scholarships that marginal tax rates on the poor with benefits are often extremely high. Other examples include people on disability who lose their benefits forever if they try to work full time, even if they fail after a week. It's going to be hard to change things because every little rule has people making a living a living of it.