Scholarships and stipends both forms of non-employment student support. They differ from each other in important ways.
Scholarships are the most common type of student support processed at UCorp. While completing the paperwork is relatively simple, the behind-the-scenes process is a little more complicated and may take several weeks to complete. Scholarships are not issued to the students from UCorp directly; instead, SF State issues the payments to students, and UCorp is then invoiced by the University.
Scholarship forms should be submitted to UCorp as soon as the awardee is determined. UCorp will review the form, approve the scholarship, and forward it to Financial Aid for processing if adequate funding is in place. UCorp will contact the department if there are issues with funding.
Other terms of the scholarship, such as the required number of units or the minimum GPA, are reviewed by Financial Aid. The department will be contacted by Financial Aid if the student does not qualify for the scholarship. The department will be responsible for contacting UCorp to void the original submission if Financial Aid finds scholarship terms are not properly met.
Stipends are payments issued to SF State students for class participation or general support to serve as aid in the pursuit of their studies. Stipends are not compensation, and must not be used in lieu of wages.
Stipends are not performance-based, and may not be adjusted or withdrawn as a result of performance. However, stipends may be accompanied by certain terms and conditions which must be met. Terms and conditions may include enrollment in a particular degree program or completion of a particular course. These conditions must be outlined on the “Stipend Award” form. It is the responsibility of the Project Director to contact UCorp if any of the terms and conditions of the stipend are not met, and if subsequent payments should be suspended.
In certain instances, the stipend recipient may be required to attend a course or perform certain activities as a condition of receiving the stipend. These activities must have an educational benefit to the student, and SF State must not derive any benefits from the activities.
Procedure- Project Director
The Project Director or other authorized signer must complete a Stipend Appointment Form. It is the Project Director’s responsibility to obtain the student’s signature. Once the form has been signed by the student and an authorized signer, it should be forwarded to UCorp for processing.
Note: A W-9 form must back up the Stipend Appointment Form if a stipend has not previously been awarded to the student through UCorp. Recipients who are not legal US Residents must have their stipends approved by SF State’s Tax Specialist. In those cases, additional documentation will be required.
When UCorp receives the signed Stipend Agreement Form, it is forwarded to Financial Aid for signature. Once all approvals are in place, the form is reviewed for cost allowability.
Stipends are issued monthly, approximately around the 15th of every month. Students may pick their checks up at the Disbursement Desk located in Administration Building- ADM 358, or they may opt to have their checks mailed to them.
Reporting to the IRS
Stipends are considered taxable income, and will be reported to the IRS on an IRS Form 1099-MISC.