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Stipend Payment Guidelines

To provide greater clarity, West Virginia University (“the University”) has developed the following guideline related to the payment of stipends. In general, the term “stipend” is defined as follows:

A fixed regular sum paid as a salary or allowance.

The term stipend is used to describe diverse types of payments made by the University and is often used differently by departments within the University community. “Stipend” is used as a catch-all category for a variety of payments but often takes the form of a subsistence allowance given to students to help defray living expenses during the educational or training experience; as additional funding for their education; and/or as compensation for work performed. Stipends can also include travel and/or other reimbursements and gifts or prizes awarded to students. In addressing these payments, it is important to ensure proper classification to satisfy compliance requirements with federal and state financial aid rules, IRS tax reporting requirements, the Fair Labor Standards Act, other federal and state regulations, and University rules and policies. It is also important to understand the details surrounding the stipend payment to facilitate accurate treatment and financial aid and tax reporting requirements for both the individual and the University.

Governance
The stipend payment process, including the payment method approval process if applicable, shall be followed for all stipend payments made regardless of the recipient, the funding source, or the specific situation, past practices, and/or other concerns that may arise.

Procedure
Effective December 1, 2025, for all stipend payments, whether paid to a WVU or a non-WVU student, including some travel reimbursements and/or gifts and prizes, the determination of the appropriate payment method must be preapproved by WVU Tax Services (Tax) and Student Financial Services (SFS) before a program, project, internship, fellowship, activity, student travel, gift/prize, etc. (program) can begin. All decisions will be final, and all stipend payments will require an approved Stipend Approval Form before payment can be made. Payment requests without prior approval will be delayed and/or denied until the appropriate review and approval can be made by Tax and SFS.

Exception – Stipends (1) paid via payroll to employees, including student workers; or (2) payments made via the student’s Banner account do not require a Stipend Approval Form. All other forms of stipend payments, regardless of funding source (Foundation, State, Research Corporation, grant, etc.), must have prior approval via the Stipend Approval Form process.

Note – The Stipend Approval Form should also be submitted for review by Tax and SFS in situations where the paying department is unsure of the appropriate payment method.

Once approval is received, multiple payments within the same time period can be made under the same approval. However, reoccurring programs must submit for a new Stipend Approval Form with each program start. For example, a 2026 summer internship that will make five payments over the course of the summer can submit for and receive one approval covering those payments. However, if the same summer internship is available the following calendar year (2027), a new approval request must be submitted even if the recipients are the same individuals and/or there have been no significant changes to the program.

The following steps must be completed for stipend approval:
  1. Complete the Stipend Approval Form.
    1. Upon completion of the Stipend Approval Form, it will automatically be submitted to SFS and Tax for review.
    2. Forms should be submitted at least two weeks before the program is to begin.
  2. SFS and Tax will review the request and make one of the following determinations:
    1. Employment: The program is deemed to be employment. The Department must pay the individuals through the payroll system. The Department will need to work with Talent & Culture to establish an appropriate job position, and the individual will need to process for payroll before the start of any activity.
    2. Educational Stipend WVU Student: The program and/or payment is deemed an educational related stipend for a WVU student. The payment must be made through the student’s Banner account if the student is currently enrolled.
    3. Educational Stipend non-WVU Student or WVU Student during a period of non-enrollment : The payment should be made through Mountaineer Marketplace as a vendor payment using one of the following stipend line items.
    • 5010401 – Gen Exp – Awards, Educational Scholarships, Loans, Tuition & Fees
    • 5014801 – Gen Exp – Stipends-Non Student Related
  3. Educational Stipend payments to a group that includes both WVU and non-WVU students: Payments to enrolled WVU students must be made through the student’s Banner account. Payments to non-WVU students should be made through Mountaineer Marketplace as a vendor payment using a stipend line item. These payments will require an approved Stipend Approval Form.
  4. Travel or other reimbursement stipend – Employment Related: Payable through MyExpenses.
  5. Travel or other reimbursement stipend – Educational related: Lump sum and/or up-front payments must be paid through the student’s Banner account. Reimbursements following the accountable plan rules may be paid through MyExpenses.
  6. Gift or Prize Stipend – Limited to WVU students and/or educationally related: Payable through the student's Banner account.
  7. Gift or Prize Stipend - Open to the general public: Payable through Mountaineer Marketplace or as a tangible gift.
Definitions
Cost of Attendance (COA): also known as the budget, is an estimate of that student’s educational expenses for the period of enrollment. Any eligible institution of higher education that receives Title IV, Higher Education Act (HEA) funds must create a uniform Cost of Attendance for similarly enrolled students. See 20 U.S. Code § 1087II

Estimated Financial Assistance (EFA): any funds for a period of enrollment that a student (or a parent on behalf of a student) will receive from Federal, State, institutional, or other sources in accordance with 34 CFR § 682.200

Title IV Aid: refers to the financial aid programs for postsecondary students, authorized under Title IV of the Higher Education Act of 1965, as amended (Title IV, HEA) and administered by the U.S. Department of Education and listed in 34 CFR 668.1(c)

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