A Social Security Number is required to apply for federal, state and in some cases private financial aid, as well as claim tax credits for higher education costs known as the American Opportunity Tax Credit in accordance with the Taxpayer Relief Act of 1997.
Federal law requires Laguna College of Art + Design (LCAD) to provide specific information to the Internal Revenue Service (IRS) for the purpose of filing an information return (IRS Form 1098-T "Tuition Statement") for each student in attendance, with a few exceptions.
The information required by the IRS includes the student's name, address, Social Security Number (SSN) or Taxpayer Identification Number (TIN/iTIN), and enrollment status, as well as the amount of tuition paid or billed, and scholarships received. (26 C.F.R. 1-60505-1(b)(2)(ii).)
Failure to provide a correct Social Security Number or TIN while claiming tax credits for specified education expenses may result in a penalty levied against the student by the IRS in the amount of $100, per year, until the missing or incorrect information is provided (26 C.F.R. 1-60505-1(e)(4)).