Karen L. Fooks, Director
The Office for Student Financial Affairs would like to clarify the appropriate procedures for paying student scholarships/awards when service is a condition of that award.
Auditors recently identified instances where colleges/departments were treating these awards as scholarships and processing them as college-awarded scholarships. Scholarships, by definition, are considered to be gifts to the recipients and cannot require service as a condition of receipt.
Awards which require service are considered to be a type of employment contract and must be paid through Other Personnel Services (OPS) via the student payroll system or purchase order. Such earnings do not affect eligibility for other aid during the current year, but the student must report them as earnings for the calendar year, and these earnings will be considered when determining eligibility for financial aid for the subsequent academic year.
If you have any questions or need any additional information, please contact Gordon Andrews, assistant director for scholarships and student employment, at (352) 392-1272.