nuts and bolts

Soo, does anybody with more experience in grant-receiving have any advice on taxes?

Because I'm strictly bound to only use the money I get to pay for my trip, right?  Which I have done.  But I still have to pay taxes on that money, but because I can't use the grant money to pay for the taxes, I'm left kind of in a bind.

Of course, if those grants were my only income, then my deductible would cover it and everybody would be happy.  But I also have the scholarship funds that pay for my college education... and yes, Virginia, I pay taxes on those, too (everything that isn't tuition).  Add in the fact that I'm getting money to go to London in the fall, and I am fairly positive that my tax bill will be larger than my total non-grants-and-scholarships income for the year, and certainly larger than my savings account.  And not just a little bit larger.

I've been thinking, but I don't think I can possibly budget tightly enough to save that money out of what my scholarship will cover in London - there's not a lot of wiggle room there to being with.  My current plan is just to spend the grant and scholarship money as I was instructed to do, and then borrow money to pay for the taxes.

I'm not complaining - it's a great problem to have, and if I have to take out loans to cover the taxes on my grants and scholarships, well, it's still a great deal.  But I was wondering if anybody out there who has done this before can reassure me that this is standard practice for grant recipients?  or is it an unusual side effect of being personally broke, but in strictly-regulated-possession of large amounts of other people's money?

(Confidential to Jenny:  I love taxes!  Taxes are great!  My taxes cover lots of wonderful programs!  I don't mind paying taxes as it is my duty as a citizen benefiting from the services provided by this great country!  WHOO TAXES)