You are a candidate for a degree at an educational institution described in section 170(b)(1)(A)(ii) of the Internal Revenue Code.

Amounts you receive as a scholarship or fellowship are used  under the conditions of the grant for tuition and fees required for enrollment or attendance at the educational institution, or for books, supplies, and equipment required for courses of instruction.

The amounts received are not a payment for your services unless required by the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program.