Scholarship, Fellowship and Participant Payments
Scholarship, fellowship and participant payments are amounts paid to an individual to aid and support that individual in the pursuit of study, training or research. Scholarship recipients include undergraduate or graduate students. For recipients who are not degree-seeking students, such as post-doctorates or faculty members, the funding may be referred to as a fellowship. For discussions of tax treatment, the Internal Revenue Service (IRS) uses the terms scholarship and fellowship interchangeably. Payments to support various categories of individuals involved in learning or training activities supported by federally sponsored agreements may be designated by the sponsor as participant payments. Participant payments share many of the attributes of scholarship or fellowship payments and are subject to similar tax treatment.
Beginning July 1, 2015 the Scholarships/Stipends/Participants Payment Using Object Codes E56xx will no longer be used. PPM Chapter 6320.070 provides an overview of how to process scholarship, fellowship and participant payments for Grant and Non-Grant purposes.