You need to consult expert sources on this. I'm not sure the above pp is correct.

Taxable, but you should take it anyway as $27k is more than $24k. Take a student loan for expenses and to pay the tax and to max retirement contribution if it is all government loans.

I just started grad school this summer. It's a one year program that leads to a masters in special education. The way the program is set up, we will work during the day as a teacher's assistant and attend classes at night. I was given the option of working for money (@$24k) or working for free and receiving 75% tuition assistance (the program costs $36k). My question: Is this tuition assistance taxable? It's paid directly to the school. The irs website mentions 5200 being the mad unless it's work study. I don't know if this qualifies or not.