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Awarding University Funds to Students

Overview

When awarding funds to a student, whether from a grant or scholarship, you will need to either complete a Scholarship Recipient List or appropriate Accounts Payable form. To determine which one you will need to complete, please use the Decision Tree below.

Expand or Collapse all.

Are the recipients currently (or will be) enrolled as Texas State University students in the semester(s) for which the funds are intended?

  • Yes – Continue to question 2.
  • No – Do not proceed to question 2 and complete the appropriate Accounts Payable form (route through Accounts Payable).

What is the purpose of the payment?

Content updated 11/07/2016
  • To pay for employee services - complete a Personnel Change Request(PCR) form.
  • To pay for non-employee services – Complete the appropriate Accounts Payable form (route through Accounts Payable).
  • *To assist with educational costs (e.g., tuition, fees, room, board, books, research, etc.) or if the award is contingent upon the student’s enrollment at Texas State University (i.e., student would be ineligible for the prize or award if not enrolled at Texas State University) – Complete the Scholarship Recipient List (route through Financial Aid and Scholarships).

Suggested Text for Research Award Letter

To ensure the consistency and accuracy of the information being communicated to students regarding their research-related awards, it is suggested that you use the letter at the below link. It is strongly recommended that you not change the letter (with the exception of adding eligibility criteria) as any changes have the potential to incorrectly communicate information that may negatively affect a student’s other financial aid awards. If desired, you may provide additional award-specific information in a separate attachment to this letter.

Student Award Payment Letter

Students and Scholarship Recipient List

Students whose award is being processed via the Scholarship Recipient List should always visit with Financial Aid and Scholarships regarding how their award may affect the other aid they have received.

First Time to Award from This Account

If you are requesting scholarship funds to be disbursed for the first time from the account, please complete the Departmental Scholarship Transmittal Form. This information will allow for the creation of the award code in the student information system and its integration with SAP. This creation and integration process typically takes 5 - 7 business days.

Awards Processed Via Scholarship Recipient List

Most awards will be processed as a financial aid refund since they are intended to assist with educational costs such as tuition, fees, room, board, books, research, etc. Once funds intended for research expenses are processed through the Scholarship Recipient List and disbursed, students will personally purchase the needed equipment, supplies, software or any other materials required to complete their educationally-related research project. Any items purchased with these funds are the students to keep.

When completing the Scholarship Recipient List, please be sure to indicate if these funds are to be used for specific research-related expenses. If so, also be sure to provide a separate attachment of the relevant research-related expenses so that the student’s other aid may not have to be potentially reduced.

Typically, Financial Aid and Scholarships processes award requests within 24 – 48 hours of receiving the Scholarship Recipient List from the awarding department. Student Business Services will then disburse the refund to the student in accordance with the refund schedule.

Tax Implications

The refund from Financial Aid and Scholarships may have some income tax implications as it is considered a scholarship under tax laws. For specific tax questions, students should consult with their tax professional as Texas State University is not able to provide individual tax advice.

Students may find it helpful to read IRS Publication 970, Tax Benefits for Education, which is available at www.irs.gov/publications/p970/index.html. All federal income tax forms and publications may be downloaded from the IRS website at www.irs.gov .

*Controlled Materials

Even though certain awards may be intended to assist with educational costs, students do not have the ability to purchase certain materials or substances (such as chemicals or live specimens) as an individual on the open market. When such items are needed for a student’s research project, the portion of a student’s award covering these costs will be placed in a university account. The university will then make the purchases on the student’s behalf.

In some cases, equipment may also be purchased under this method. Please note that when purchased in this manner, Texas State assumes ownership of such purchased supplies or equipment. Under this method, Texas State will always make payment directly to the vendors for these purchases. Students should never pay directly for such items and later ask for reimbursement.