Payments to students are complex. It is possible to pay a student through three different systems/processes: scholarship automation (financial aid), accounts payable, and payroll. It is critical that the payment is done in the proper system, using the correct process in order to comply with federal laws. The University must also comply with reporting requirements to the individual and the Internal Revenue Service, such as 1098T reporting (financial aid), 1099 reporting (accounts payable), and W-2 reporting (payroll).

The following guide from the University's Tax Management Office is helpful in determining the type of payment being made and the correct corresponding process to use.

Tax Management Office Guideline #8 - Payments to Students  (in PDF format) - 11/10/2014

Not every payment situation has been covered in the above guideline document. The Tax Management Office is available to help analyze situations that are unclear or not addressed in the examples. Contact them for help determining the type of payment being made at or 612-624-1053.

University Scholarship Resources

From Academic Support Resources (ASR):

Scholarship Administrators page - Resources, important dates, and bi-monthly meeting minutes for scholarship administrators

Best Practices for Scholarship Administration - scholarship awarding "to do" and "do not" lists

Scholarship Automation - Related resources and access to the scholarship automation process, which is used to pay institutional scholarship, grant, or fellowship amounts that help students defray the cost of attendance (COA)

UM Departmental Scholarship Processes Detailed steps required for processing department scholarships in PeopleSoft 9.0 - 02/19/2016

UM Departmental Scholarship Upload Template Spreadsheet template for upload in PeopleSoft 9.0 (in Excel .xlxs format) - 01/30/2015

From the Office of Human Resources (OHR):

Scholarship and Fellowship Department Aid - Frequently Asked Questions, including:

When is it appropriate to use non-service fellowship stipends paid through the payroll system?

Non-service fellowship payments that equal at least a 25% appointment should be paid via a non-service classification in company UNS. They are paid through the biweekly pay cycle. The non-service classifications are 9560, 9561, 9562, 9564, 9565, 9566, 9567, 9568, 9569, 9582, and 9583.

$4,375 is the value of a single semester 25% appointment amount for FY17 in CLA.

Who to Contact

Scholarship Unit
Office of Student Finance
Academic Support Resources

Scholarship processing and application support

Scholarship/Fellowship Tracking and Reporting (STAR)
University of Minnesota Foundation

STAR support and training

Mary O'Brien