Fellowship recipients should be aware of the following information:
Tuition & Fees
Most Graduate School fellowships are eligible to pay in-state tuition rates. The award letter from the Graduate School will indicate if the fellowship includes a Non-Resident Tuition Exemption.
Fellowships may be electronically deposited or mailed to a student’s local address. Stipends pay out monthly. One-time payments and money toward medical insurance pay out at the beginning of the semester for which they are awarded. Tuition coverage is applied directly to the fee bill.
If the student does not go through early registration for the spring semester, there will be a delay with the January 1 fellowship check. Again, in order to receive a summer fellowship, the student must be registered by June 1 in order for the University to release fellowship money on June 1.
If a student has work appointment (Teaching Assistantship or Research Assistantship) following the fellowship period, the checks for the work appointment will be issued on the last day of the month. In such cases, there will be a two-month interval between the last fellowship check and the first work appointment check, and the student must plan accordingly. (Example: If you have a fellowship in the fall and a work appointment in the spring, your last fellowship check will arrive on December 1, and your first check for the work appointment will arrive on February 1 and will be for the half month from January 15 to February 1).
The Graduate School urges all students to maintain health insurance coverage. A university fellowship does not automatically provide the recipient with health insurance. Fellows have several options for meeting their health insurance needs. A Graduate School fellowship may include an additional payment towards the cost of medical insurance.
Information is available online to help you determine your eligibility for the student insurance plan or staff group insurance. Graduate fellows need to have a stipend of $10,000 or more per year to access the staff group insurance plan. Questions? Contact Elizabeth Korves for more details.
Federal & State Income Tax
University fellowship stipends are subject to federal income tax, but there is no state income tax in Texas. Since the university will not withhold federal income tax from fellowship stipends, Fellows must make estimated tax payments.
If you are a foreign student and your country does not have a tax treaty with the United States, 14 percent for Federal income tax will be withheld from the fellowship stipend checks.
Social Security Number
If a student does not have a valid taxpayer number (SSN or ITIN) on file with student records, they will be required to either take the SSN card to the registrar's office or self-report their tax number on UT Direct.
Government Loans and other Financial Aid
If a student receives a fellowship or funding from another source, their financial need will decrease, and the amounts they are eligible for in other forms of financial aid (loans) may have to be adjusted. Students who receive a fellowship should contact the Student Financial Aid office to determine how this other resource may affect their financial aid award.