Scholarship vs. Fellowship Guide

Grad

Undergrad

Grad

Undergrad

CODE

Typically starts with 90004 (900043 - institutional awards, 900041 - federal awards), ending with acct #

Typically starts with 90002

Account Type Used*

FND or KFS

FND or KFS

Fee Bill Impact

No, 100% refundable to student (Exceptions: if a student received a refund/loan from federal or institutional aid that is reduced as a result of the fellowship, the fellowship will be used to pay back that refund; if the fellowship Item Type is set up to apply to charges, it would not be a refund either. The fellowship may pay back any refund that is owed.)

Yes, if there is a fee bill balance at the time of posting, it will hit the fee bill first and then be refunded. Depending on when the scholarship is posted, it might roll forward to the next semester fee bill balance. (Exception: if the scholarship Item Type is set up not to apply to charges, it may pay out rather than posting against fee bill charges, but that is unusual). 

What is it for?

Non-compensatory Award

Award/Prize/Reimbursement

Updating Amounts

When increasing an existing award for the same term, a new request for the full amount needs to be submitted, which will replace the original (add notes as applicable). 

For increases, new scholarship should be submitted for the additional amount - both will remain. For reductions or cancellations, please contact OSFAS.

Pay to student

Funds are 100% paid to student (technically occurs as a Fee Bill refund, but would not be applied to Fee Bill)

Fee bill first, then check cut to student if there is no fee bill balance - or Direct Deposit to student if they are enrolled. Has the potential to impact loans. 

Fee bill first, then check cut to student if there is no fee bill balance - or Direct Deposit to student if they are enrolled. Scholarships may impact loans and gift aid for undergraduate students.

Award Term

Submission Timeframe

Hits Student Fee Bill**

University Acct: Hits KFS

FND Acct: Hits Felix*

AY

Late-March until 6/1/XX

12 monthly payments on the 1st day of each month (August-July) - allow 3-5 business days for the refund to be generated

Once the fellowship is disbursed and applied to the fee bill, you will see the KFS transaction in the overnight system batch.

Once approved by the University, the Foundation receives a monthly list to approve, so posting dates will vary based on when the information is received/reviewed/approved, but should be ~1 month after University approval

Fall

Late-March until 6/1/XX

5 monthly payments on the 1st day of each month (August-December) - allow 3-5 business days for the refund to be generated

Spring

From 10/01/XX - until 6/15/XX

4 monthly payments on the 1st day of each month (January-April) - allow 3-5 business days for the refund to be generated

Summer

Late-March until 8/23/XX (or the start of the fall semester)

3 monthly payments (May-July) - allow 3-5 business days for the refund to be generated

Summer and future fall or future AY fellowships hit in the following FY from when they are submitted

Lump Sum

Late-March until 8/23/XX (or the start of the fall semester)

Payment will occur on the first day of the Term that the lump sum is awarded for if the award is processed prior to the start of the Term. If the award is processed after the start of the term, or if it is a summer award, payment will be made on the next Tuesday disbursement once the award is processed. 

Lump sum payments follow the details above based on what Term they are submitted for.

Award Term

Submission Timeframe

Hits Student Fee Bill**

University Acct: Hits KFS

FND Acct: Hits Felix*

AY

Late-March until 6/1/XX (ex. May 2025 for an AY25/26 award)

within 3-5 days of approval

Once the scholarship is disbursed and applied to the fee bill, you will see the KFS transaction in the overnight system batch.

Once approved by the University, the Foundation receives a monthly list to approve, so posting dates will vary based on when the information is received/reviewed/approved, but should be ~1 month after University approval

Fall

Late-March until 6/1/XX (ex. April 2025 for a fall 2025 award)

within 3-5 days of approval

Spring

Late-March until 6/1/XX (ex. Oct. 2025 for a spring 2026 award)

within 3-5 days of approval

Summer

Late-March of the following year until 8/23/XX, or the start of the fall semester (ex. May 2025 for a summer 2025 award)

within 3-5 days of approval

Summer and future fall or future AY Scholarships hit in the following FY from when they are submitted

A scholarship or fellowship is not taxable to the recipient to the extent it is used for:  (i) required tuition and fees; and (ii) books, supplies and equipment required for courses. 

Under IRS rules, room and board, travel, insurance, and medical expenses (including student health fees) are not considered required expenses, therefore, a scholarship or fellowship used for any of these items is taxable income, which the student is required to report on their income tax return.

It is generally the sole responsibility of the student to determine the taxable portion of their scholarship or fellowship and to report and pay income taxes on the taxable portion.

UConn does not withhold income taxes on the taxable portion of a scholarship or fellowship except in limited circumstances involving nonresident alien students (see below).

UConn is required to withhold 14% US income tax (called "NRA tax") on the taxable portion of a scholarship or fellowship awarded to an NRA student, unless the student qualifies for an exemption by way of an income tax treaty between the US and the student's home country. 

When a scholarship or fellowship is posted to the fee bill of a student who is not a US citizen, an NRA Tax Hold is placed on their account.

The purpose of the NRA Tax Hold is to prevent the student from taking a refund of their scholarship or fellowship before the Tax Office can determine if NRA tax withholding is required.

Once the Tax Office determines whether NRA tax withholding is required, they will post any required NRA tax withholding as an expense to the fee bill, and then remove the NRA Tax Hold from the student's account.