Departmental Funding & Student Award Payments
Departmental Funding &
Student Award Payments
In some cases, undergraduate students might qualify for awards through their department or school. Contact your individual program for more information. If you receive an award from your department, we are required to include it as part of any existing financial aid offer. To remain compliant with federal guidelines aid initially offered by the Office of Scholarships & Student Aid may be adjusted so that your total does not exceed the cost of attendance budget or financial need.
If you are an graduate student receiving departmental funding, click here.
How Departmental Funds and Student Award Payments Affect Your Financial Aid Offer
All financial aid payments must be coordinated with any other aid a student receives. Any student receiving state, federal or need-based institutional funding may not receive total aid from all sources which exceeds the cost of attendance or financial need. In some cases, a reduction to federal or state aid initially offered by the Office of Scholarships & Student Aid Office will be necessary to remain compliant with federal guidelines.
Here are a few examples of how different departmental awards may affect your aid:
Example 1:
No departmental awards
| Aid Type | Aid Amount |
|---|---|
| University Grant | $16,000 |
| Federal Work-Study | $3,500 |
| Federal Direct Subsidized Loan | $3,500 |
| UNC Loan | $500 |
| Total Need | $23,500 |
Example 2:
$2,000 Departmental Award
| Aid Type | Aid Amount |
|---|---|
| Departmental Award | $2,000 |
| University Grant | $16,000 |
| Federal Work-Study | $3,500 |
| Federal Direct Subsidized Loan | |
| UNC Loan | |
| Total Need | $23,500 |
Example 3:
$10,000 Fellowship Award
| Aid Type | Aid Amount |
|---|---|
| Fellowship Award | $10,000 |
| University Grant | |
| Federal Work-Study | |
| Federal Direct Subsidized Loan | |
| UNC Loan | |
| Total Need | $23,500 |
More about Departmental Funding
Funding such as tuition/fee awards, scholarships, fellowships, training grants, certain travel payments and prizes for contests, awards and recognition will be reported to us by your department through a portal called GradStar. Departments begin to report these awards to our office beginning in August for the fall semester and January for the spring semester. Awards will be added to any existing financial aid offer which may result in an adjustment to aid initially offered by the Office of Scholarships & Student Aid.
Departmental Funding & Student award Payment frequently asked questions
You can find FAQs below by topic to assist with questions you may have about departmental funding and student award payments.
General FAQs
Any educational benefits paid because of enrollment in a postsecondary education institution, or to cover postsecondary education expenses is considered financial aid. Please view the Understanding Student Payment Type Chart to learn more about student payments and department funds that are considered financial aid.
Federal financial aid guidelines specify that the follow types of payments are not considered financial aid.
- Employment earnings or compensation for work performed.
- Prizes, contests, or awards open to the general public (are not specific to only students).
- Travel or reimbursement of expenses for University business.
Federal financial aid guidelines specify that any educational benefits paid to students because of enrollment in a postsecondary education institution, or to cover postsecondary education expenses is considered financial aid. As a result, our office is required to coordinate these payments with any other aid a student receives such that the total aid from all sources does not exceed the cost of attendance or financial need. Students who have been offered state, federal or need-based institutional aid from the Office of Scholarships & Student Aid may have these funds adjusted in order to remain compliant with financial aid guidelines.
Generally, all student payments and departmental funds count as financial aid unless it is compensation or reimbursement for work performed (employment) or awards open to the general public (not student specific).
The Cost of Attendance is a budget of education related students for students enrolled at the University. Costs are developed as guides to help students anticipate their expenses at UNC Chapel Hill. Some students may spend more than the typical amounts, others less, depending on individual lifestyles and circumstances. A student’s eligibility for financial aid, however, will not be based on individual preferences and spending habits, but on the standard budget allowances.
The Cost of Attendance will be displayed on your Financial Aid Offer in ConnectCarolina. You can view your total aid from the Financial Aid Offer to determine if it meets the total Cost of Attendance listed in your aid offer.
- Financial need is determined based on your FAFSA application and your Student Aid Index (SAI). We use the cost of attendance (COA) and subtract your SAI to determine your financial need. Financial need can be met with need-based aid which includes the following types of aid: Pell Grants, Subsidized Loans, Work-Study, University Loans, State Grants, and University Grants.
- You can see your calculated financial need in ConnectCarolina on your award offer:
- In some cases, when students receive departmental funding, an award payment, or report an outside scholarship need-based aid initially offered by our office has to be reduced to remain compliant with federal guidelines.
For planning purposes, the Office of Scholarships & Student Aid included an estimated award on your aid offer if case you receive an award during spring. The estimated award is not a promise of funding, but rather, is a placeholder in case you are awarded money during spring. Estimated fellowship/scholarship awards are automatically removed from your financial aid offer on February 1.
The estimated award is not an indication of eligibility. Your department will report actual spring amounts to our office during the spring semester. You will receive a revised financial aid offer once actual spring amounts are reported to our office.
Tuition/Fee and Fellowship/Scholarship FAQs
Federal, state, or need based institutional aid awarded by the Office of Scholarships & Student Aid may be reduced such that the total aid (with the addition of the award) does not exceed the cost of attendance or financial need.
Travel Payment FAQs
Yes. All payments for educational expenses, like travel for a research project, are considered financial aid.
Yes. All payments for educational expenses, like travel to a conference, are considered financial aid.
Depending on your specific situation, federal, state, or institutional aid awarded by the Office of Scholarships & Student Aid may be reduced so that the total aid (with the addition of the travel payment) does not exceed the cost of attendance.
Training Grant FAQs
No.
However, federal, state, or institutional aid awarded by the Office of Scholarships & Student Aid may be reduced so that the total aid (with the addition of the training grant) does not exceed the cost of attendance.
Your academic department will use GradStar to report one payment to the Student Aid Office for the fall semester (which generally includes expenses for the months of August-December). Your academic department will report another payment for the spring semester (which generally includes expenses for the months of January- April). Your department may also report payments separately during the summer term (May – July).
The Office of Scholarships and Student Aid will send stipend payments to the University Cashier’s Office. The University Cashier’s Office will issue applicable refunds starting on the first day of classes each semester or term of enrollment.
Please ensure that you have signed up for Electronic Refund with the University Cashier’s Office.
Tax liability is based on many factors for each individual, the University cannot speak definitively on tax liability each student.
In general, financial aid may be taxable if it exceeds your qualified tuition and related expenses. Qualified tuition and related expenses are defined by the Internal Revenue Service (IRS) as “tuition and fees required for enrollment or attendance at the educational institution or for books, supplies and equipment required for courses of instruction at the institution and required of all students in your course of instruction.” If the sum of your financial aid exceeds your qualified tuition and related expenses, part of your award may be taxable. You should direct questions concerning the taxability of financial aid to the IRS or a qualified tax consultant.
Training Grants are reported on Form 1098-T which is issued by the Cashier’s Office. Form 1098-T helps students determine if a tax deduction or education credit can be claimed on their federal tax return.
Questions concerning the taxability of financial aid should be directed to the IRS or a qualified tax consultant.
Questions concerning the taxability of financial aid should be directed to the IRS or a qualified tax consultant. Below are example resources of where to find relevant information:
- To learn more about taxes and educational expenses, go to IRS Publication 970: Tax Benefits for Education.
- International students should consult the Office of International Student & Scholar Services.
- The Volunteer Income Tax Assistance (VITA) program offers free tax help to low- to moderate-income individuals who cannot prepare their own tax returns. To locate the nearest VITA site, call 800-829-1040. The UNC-Chapel Hill School of Law and the Compass Center for Women and Families each host a VITA chapter.
Prizes/Contest/Recognition Award FAQs
Yes. Any cash amounts or the values of items given to students solely because of their enrollment at the University must be treated as financial aid. This includes prizes for competitions open only to students.
Use the Cost of Attendance & Aid Calculator to determine remaining aid eligibility when receiving recognition awards.
Yes. Any cash amounts or the values of items given to students solely because of their enrollment at the University must be treated as financial aid. This includes prizes for competitions open only to students.
Use the Cost of Attendance & Aid Calculator to determine remaining aid eligibility when receiving recognition awards.
Yes. Any cash amounts or the values of items given to students solely because of their enrollment at the University must be treated as financial aid. This includes prizes for competitions open only to students.
Use the Cost of Attendance & Aid Calculator to determine remaining aid eligibility when receiving recognition awards.