Can I create a scholarship for my child?

Can a person set up a scholarship, contribute to it tax free, and be able to use the scholarship for his own child''s college education?

No. Generally, making a contribution to a scholarship fund is usually considered a charitable contribution and can generate a tax deduction. Scholarships, for federal tax purposes, are governed by a strict set of regulations in order to stop people for from trying to do an end run around the limited deductions and credits available for college tuition payments.