Understanding the Types of Student Payments
| Payment type | Counts as financial aid? | Payment process | Student Center account* | Notes on taxes and forms** |
|---|---|---|---|---|
| Employment compensation Research Assistant or Teaching Assistant positions held by students |
No | Entered as payroll (ePAR) in ConnectCarolina. Monthly payments made directly to student. | N/A | Reported on W-2 Students may be exempt from FICA if enrolled at least ½ time during the compensated period. |
| Pre-Paid/Non-Monetary Award*** The value of gifts, awards, items, or services over $25 provided to students. Paid in other University systems (such as BuyCarolina or Pcard), recorded in GradStar for reporting purposes only. |
Yes | Entered in GradStar by department | N/A – amount applied to financial aid only, not student account | Reported on 1098-T Taxes not withheld for US persons; may be withheld for non-US persons |
| Emergency Award Awards provided are typically one-time in nature and used to address immediate needs of the student. |
Yes | Entered in GradStar by department | Refund Only | Reported on 1098-T Taxes not withheld for US persons; may be withheld for non-US persons |
| Fellowships and scholarships Paid to an individual to support the pursuit of study or research |
Yes | Entered in GradStar by department | Pays outstanding charges on student account | Reported on 1098-T Taxes not withheld for US persons; may be withheld for non-US persons |
| Training grants An agreement that provides a coordinated training program for students; not compensation (no effort reporting) |
Yes | Entered in GradStar by department | Pays outstanding charges on student account *Trainee dependency and travel payment types are Refund Only |
Reported on 1098-T Taxes not withheld for US persons; may be withheld for non-US persons |
| Prizes over $25/contests open to students only*** Ex: Honors Taylor Research Award, Innovate Carolina Award |
Yes | Entered in GradStar by department | Pays outstanding charges on student account | Reported on 1098-T Taxes not withheld for US persons; may be withheld for non-US persons |
| Prizes/ contests open students, staff, faculty or public Ex: Innovation in Equity and Inclusivity Service Awards |
No | Entered as a voucher in ConnectCarolina, direct payment to student | N/A | May be subject to reporting on 1099-M or W-2 Taxes not withheld for US persons; may be withheld for non-US persons |
| Research studies and internships opportunities (UNC or external) Ex: Graduate School’s Off Campus Dissertation Fellowship |
Yes | Entered in GradStar by department | Refund Only | Reported on 1098-T Taxes not withheld for US persons; may be withheld for non-US persons |
| Travel for the student’s academic benefit Ex: attending or presenting at a professional conference; conducting fieldwork; and other research activities |
Yes | Entered in GradStar by department | Refund Only | Reported on 1098-T Taxes not withheld for US persons; may be withheld for non-US persons |
| Travel for University business Ex: attending an admissions recruitment event for the department |
No | Entered in University’s travel system, direct payment to student | N/A | Not taxable |
| Reimbursement of expense Ex: a student purchases office supplies for their department from their own funds |
No | Entered as a voucher in ConnectCarolina, direct payment to student | N/A | Not taxable |
| Reimbursement of expense for personal research project or similar Ex: an Art student required to create a project to graduate and is reimbursed for the supplies |
Yes | Entered in GradStar by department | Refund Only | Reported on 1098-T Taxes not withheld for US persons; may be withheld for non-US citizens and non-Resident Aliens. |
“Refund only” payments are refunded to the student without paying against outstanding charges. However, if a student has received a loan, and receives a departmental award that causes the loan to be reduced, the university is required to repay the loan amount, and the student is required to repay the university any amount from that loan that had been refunded for living expenses. Any departmental award applied to the student's account will be used to repay the loan amount that had been refunded and is now due back to the University, but no other outstanding charges.
*Fellowships/Scholarships, Trainee Stipend, Trainee-Other and Trainee-Non-Degree award types pay against all outstanding charges on a student’s account, and if there is a credit balance, a refund is issued.
**Notes on Taxes and Forms are applicable to US persons. Non-resident aliens and others may have withholding depending on the situation. Even if tax is not being withheld, please consult your personal tax accountant on whether a tax liability exists.
***Any funding/gift card/non-monetary gift provided to a student exceeding $25 (and exclusive to students) is considered financial aid and must be reported via GradStar. If students and the general public/University staff are eligible to receive a $25+ funding/gift card/non-monetary gift, then reporting via GradStar for students is not required.