When I was in school I used to make $1000-ish every graduation season by playing "Pomp and Circumstance" with my brass quartet for the various schools' graduation ceremonies. I also used to play paid gigs whenever I could get them. I was getting a scholarship from the school of music to attend (not a full ride, but still something). That money was also taxable. I don't see much difference...I would have been pissed if the music school had pimped me out for paid gigs and kept the money.