CATS: Campus Administrative Training Series

Untitled Document

Financial Aid Guidelines AY 2008-09

Undergraduate Students - Object Codes - Scholarships

Activity: Undergraduate Student Scholarships – 5880

Financial Policy: N/A

Related Policies: N/A

Additional Forms: N/A

Things to Know:

Financial aid should be budgeted according to the following expenditure object codes and descriptions that are specific to financial aid activity.

Undergraduate Student Scholarships – 5880
Scholarships include all unrestricted, non-service related stipends, regardless of the funding source or name of the award for the purpose of aiding an undergraduate students study, training, or research. “Unrestricted” means that funds are not limited to paying certain expenses, such as tuition. Scholarship recipients are expected to enroll in at least 1 credit hour per term (including summer term). Expense for this category is to be processed through SIS financial aid

This includes student funding with the name “prize” or “award” if that funding is for the purpose of aiding the student's study, training, or research.

Per IRS guidelines, “prizes” and “awards” that are not for the purpose of aiding the student's study, training, or research are not considered scholarships or fellowships. Examples include a prize paid for winning a piano competition, a prize paid to a figure of world renown for his outstanding achievements in a certain area of research or politics, or a prize paid for winning some sort of contest. When paying a prize of this nature, the grantor does not specifically intend that the grantee spend the prize amount "for the purpose of aiding his study, training, or research", but instead intends the prize to be an award which recognizes the achievement or renown of the grantee and which may be spent in any fashion the grantee sees fit. Such “prizes” and “awards” should be processed using an FIS disbursement voucher and object code 4866 to ensure that they are not counted as financial aid. IU reports such payments for tax purposes on Form 1099-MISC. Contact responsible financial aid office if there are additional questions.


Activity:	Undergraduate Student Scholarships – 5880


Financial Policy:	N/A


Related Policies:	N/A


Additional Forms:	N/A


Things to Know:	Financial aid should be budgeted according to the following expenditure object codes and descriptions that are specific to financial aid activity.

	Undergraduate Student Scholarships – 5880 Scholarships include all unrestricted, non-service related stipends, regardless of the funding source or name of the award for the purpose of aiding an undergraduate students study, training, or research. “Unrestricted” means that funds are not limited to paying certain expenses, such as tuition. Scholarship recipients are expected to enroll in at least 1 credit hour per term (including summer term). Expense for this category is to be processed through SIS financial aid

	This includes student funding with the name “prize” or “award” if that funding is for the purpose of aiding the student's study, training, or research.

	Per IRS guidelines, “prizes” and “awards” that are not for the purpose of aiding the student's study, training, or research are not considered scholarships or fellowships. Examples include a prize paid for winning a piano competition, a prize paid to a figure of world renown for his outstanding achievements in a certain area of research or politics, or a prize paid for winning some sort of contest. When paying a prize of this nature, the grantor does not specifically intend that the grantee spend the prize amount "for the purpose of aiding his study, training, or research", but instead intends the prize to be an award which recognizes the achievement or renown of the grantee and which may be spent in any fashion the grantee sees fit. Such “prizes” and “awards” should be processed using an FIS disbursement voucher and object code 4866 to ensure that they are not counted as financial aid. IU reports such payments for tax purposes on Form 1099-MISC. Contact responsible financial aid office if there are additional questions.