Tax Credit Educational Benefits
Aside from the standard scholarships which are available for people who wish to pursue college education, there is also known as tax cuts or credits for education that can be used to return a portion of your educational expenses. The two types of tax credits that have educational benefits are HOPE Tax Credit and Lifetime Learning Tax Credit.
I can say that this is a type of indirect scholarship since you will not have any actual discounts from the cost of your tuition but this can be useful in reducing the taxes that you should pay hence, it has an effect of giving back portion of the amount you have paid for college tuition that reflect as tax credits.
Each eligible student is entitled to claim one type of tax credit scholarship per year. For parents who are paying for the expenses of more than one college student, they can use Hope Credit for the first student and apply the Lifetime Learning Credit for the second student.
But one cannot take either tax credit if he/she has deducted the same educational expenses on the same return. This also means that if one decides to take the tuition and fees deduction, they would not be eligible to claim for the Hope Credit or the Lifetime Learning Credit anymore.