Making money from scholarship, but not initially (7)
I believe the answer is:
earning
'making money' is the definition.
(I've seen this before)
'scholarship but not initially' is the wordplay.
'scholarship' becomes 'learning' (synonyms).
'but not initially' means to remove the first letter.
'learning' with its first letter taken off is 'EARNING'.
'from' acts as a link.
(Other definitions for earning that I've seen before include "Being paid for work" , "Deserving" , "Receiving in return for work" , "Gaining by work" , "Meriting" .)