Background
This information sheet is intended to assist UC Merced departments who wish to make departmental program payments to UCM undergraduate students only. Please review this information carefully before submitting the Student Disbursement Request Form. If you have any questions, please contact the Scholarship Coordinator located within Office of Financial Aid and Scholarships at disbursementrequests@ucmerced.edu or (209) 228-2470. For visiting students please contact Accounts Payable.
Payment Classification
The first step in making a departmental program payment to an undergraduate student is determining the correct classification for the payment. For all intents and purposes there are two types of student financial support: 1) Non-need based employment and 2) Financial Aid. Regardless of what an award is called (scholarship, grant, loan, stipend, prize, etc.) it is considered financial aid unless it falls into the non-need based employment/compensation category. All means of financial aid must be routed through the Office of Financial Aid and Scholarships. The following are guidelines for determining the appropriate payment type.
Compensation:
Payments to students in recognition of past, present, or future service to UC are forms of compensation to an employee. A student is considered an employee if the service performed is controlled by the employer (i.e., what will be done, how it will be done, when it will be done). The scope of work is assigned and the student receives compensation for the performance of specific assigned job duties. Compensation is distinguished by the student’s service being necessary to the student being eligible to receive the compensation. Compensation payments are made through the payroll system. Do not use the Student Disbursement Request Form to process compensation payments. Please contact Student Employment for compensation payments.
Scholarships, Grants, and Fellowships:
Payments to UCM students that are considered scholarships, grants, or fellowships are amounts paid to, or for the benefits of, individual students to support their pursuit of studies or related research. Typical examples of what the payments are intended to help pay for include tuition, fees, housing & meals, supplies, and travel primarily related to the student’s scholastic development. Other terms sometimes used to describe these awards and payments include: travel awards, financial aid, stipends, waivers, and trainee stipends. The critical characteristics of these payments to students are that recipients are NOT expected to render past, present, or future services to UC in consideration for their award, nor are they expected to repay the award. These payments are made through the Student Information System by the Office of Financial Aid and Scholarships.
Procedures
Complete the Student Disbursement Request Form to initiate new, revised, supplement and re-awards. If the program/award will be funded for more than a year, please select “YES” on the form. Disbursement requests for UC Merced students should be directed to disbursementrequests@ucmerced.edu. Departmental program payments to UC Merced students are posted to the students’ billing account and applied to tuition, fees, on-campus Housing, and any other charges on the student account before they are refunded to students. The student will only receive the amount of the payment that exceeds the current charges on the student’s account. In addition, a student’s total financial aid (federal and non-federal) may not exceed the student’s demonstrated financial need, so all financial aid received by the student will be taken into account before the payment is processed. This could mean that the student’s loans are offset by the program payment instead of being refunded directly to the student. The Office of Financial Aid and Scholarships will make this determination. The FA Disbursement Date field on the Student Disbursement Request Form is the date you expect the funds to be disbursed through the financial aid office. It will take 3-5 days after disbursement date to process a payment/refund by Student Business Services as adequate time is needed to gather and approve all paperwork and processing payment before funds are available. Please encourage all payment recipients to complete an Electronic Funds Transfer for faster processing.
Tax Considerations
The portion of a scholarship or fellowship used to pay for costs required of all students in the course of instruction, such as tuition and fees or supplies and
equipment, is considered qualified and is subject to IRS 1098-T reporting. The amount of a scholarship or fellowship payment used for incidental costs not required for enrollment or attendance in a course of instruction, such as room and board, travel, research-related expenses, and non-required equipment and supplies, is considered non-qualified, and is usually subject to tax treatment. Contact Tax Services on tax determinations and GLACIER requirements, if applicable.
