Mei-Ling Is a Candidate for a Master's Degree in Taxation

Mei-Ling is a candidate for a master's degree in taxation from Western State University. During the current year she receives the following cash payments:
How much must be included in Mei-Ling's gross income?
$\begin{array}{lr}\text { State allocated tuition waiver scholarship } & \$ 2,200 \\\text { A Microsoft scholarship (for fees and books) } & 800 \\\text { Check from her grandmother } & 1,700 \\\text { Loan proceeds from the college financial aid office } & 2,500 \\\text { Prize won from a "rub and scratch" lottery ticket } & 300 \\\text { Loan from her roommate } & 100 \\\text { Interest received from National Bank CD } & 400\end{array}$

A) $- 0-
B) $700
C) $1,500
D) $3,700
E) $8,000