Student Compensation (Work, Benefits & Aid) Process

Title IV Financial Aid

As an institution that disburses Title IV financial aid to students, SRJC must adhere to the regulations.

Under 34 CFR 673.5 and 685.102(b), any funds a student receives as a result of being enrolled in postsecondary education are considered other financial assistance (OFA) and must be counted as OFA when packaging the student. There is no de minimis or minimum amount that would not have to be counted--any amount is OFA. 668.16(b)(3) of the administrative capability regulations requires all campus offices to report to the financial aid office any information which may have bearing on a student's receipt of Title IV federal student aid.

Student Compensation Options

At Santa Rosa Junior College, there are three options for how students can be compensated:

Option 1:

Student Employment - Run through the Student Employment/Payroll Department and the individual hiring departments.  These funds are not aid, they are taxable income.  The students will need to be able to work in the US and will provide an I9 for each student. This is considered taxable other income and recipients will receive a W2 form.

Option 2:

Services Rendered (Not related to Financial Aid or Student Employment)

  • Definition: A payment to the student for services rendered.  This could be for completing surveys, attending events, participating in focus groups, completing a specific scope of work, or a list of items to complete, any time they are providing a service.

  • Process:

    • Step 1: create and submit a requisition for each person.

      • A Personal Services Agreement is required outlining the scope of work. This needs to be attached to the Escape requisition.

      • These agreements are considered a service and should be charged to object code 5690.

      • The students will provide a W9 with a tax identification number, this will need to be attached to the Escape requisition. 

    • Step 2: once a PO is assigned to the requisition. A signed invoice for the total amount must be submitted to accountspayable@santarosa.edu for the payment to be made.  Payments cannot be made based on the personal service agreement alone.

      • Checks will then be mailed to the student’s address on file through the Accounting Weekly AP check run. 

      • These are considered taxable other income by the IRS and recipients may receive a 1099-MISC form if the annual value received meets or exceeds $600. 

Option 3:

Financial Aid - any funds or anything of monetary value that is given to the student.  This can be through one of four (4) ways:

  1. Grants/Loans/Other Student Aid

    1. Are there any requirements? No – this is aid given to students, it does not have to be earned or qualified for.

    2. What are some current types of Aid? Pell Grants, Direct Loans, Local Loans, Cal Grants, Local Grants, Student Success Completion Grant, Other Grants

    3. How Are the Funds Tracked & Paid? All payments are run through the Financial Aid Office and then through BankMobile (our aid partner). If it is part of a grant or local funding source, it is tracked as a 75XX object code.

    4. Will this trigger a tax form? Yes - students receive a 1098T at the end of the year for these funds.   

       

  2. Scholarships

    1. Are there any requirements? Yes – Scholarships are student aid that the student has to apply or qualify for some requirements to receive. That may be an initial application and then selected, or the completion of an internship, a cohort or other GPA or completion of a course.

    2. What are some Examples of the Types? Internships, Teaching Fellows, Cohort Requirements, GPA Requirements

    3. How Are the Funds Tracked & Paid? All payments are run through the Financial Aid Office, processed through BankMobile (our aid partner), and paid by the SRJC Foundation.

    4. Will this trigger a tax form? Yes - students receive a 1098T at the end of the year for these funds.   

       

  3. Benefit Aid Given to the Student Directly (please follow the Gift Card/Incentive Process)

    1. Aid students are given, that is already paid for by a Department, through a Grant/Foundation or Other Funding

    2. Examples of Aid: Any kind of gift card or incentive, parking passes, gifts won in a raffle (laptops, books, gift cards), anything given to students (books, backpacks full of supplies for students to use, other supplies packaged and given to students, ear pods, laptops, keyboard and mouse, stoles for students to wear for graduation, movie tickets, etc.

    3. How Are the Funds Tracked & Paid? The items need to be purchased using a 767X object code.  The department distributing the items needs to follow the district process and submit the log to the required departments, on a monthly basis, to be added to the student aid package.

    4. Will this trigger a tax form? Yes- students receive a 1098T at the end of the year for these funds/items.   

       

  4. Benefit Aid Paid for A Student to an Outside Party (please follow the Gift Card/Incentive Process)

    1. Are there any requirements? Yes, each departments/program vary.

    2. What are some examples of the Types? Childcare, some medical appointments, hotel rooms (emergency placement, not associated with travel requests), transportation, other bills or need paid to a third party on behalf of a student.

    3. How Are the Funds Tracked & Paid? The items/payments need to be purchased using a 767X object, as it is aid being provided to students. 

    4. Will this trigger a tax form? Yes - students receive a 1098T at the end of the year for these funds.  

    5. These are considered financial aid and must be tracked as required in the gift incentive process

Frequently Asked Questions

  1. The term stipend is used in many different ways, how do I know which one is correct?

    1. A stipend is compensation for services rendered and falls into category 2 above. 

  2. Can I purchase gift cards on my Cal Card?

    1. Yes, AFTER the "Authorization Form for The Purchase of Gift Cards and/or Incentives" form is completed and fully approved.  The fully approved form date must be PRIOR to the purchase date on the CalCard statement and should be attached to the CalCard monthly report. 

  3. Can I purchase gift cards with my own personal credit card or cash and get reimbursed?

    1. No, gift cards and other items that qualify as aid to students are not eligible for reimbursement.

  4. If I report it as student aid, won’t that limit the amount of aid the student can receive?

    1. It is very rare that a student will max out on their unmet need.  The Financial Aid Office is dedicated to working with each student individually to ensure they can accept as much aid as possible.

  5. Do I need to follow these processes to access SRJC Foundation funds?

    1. Yes. If you are using a Foundation fund for any of the student compensation options or to provide gift cards to students, you must provide the appropriate backup from the process as part of your Request for Disbursement. Please contact Karen Brooks, Foundation Development Associate, at kbrooks@santarosa.edu, with any questions.

Recommendations

  1. Lending libraries are a great way to purchase items that students can use, but not keep.​​​​​ Examples of items could be graduation stoles, study guides, calculators, headphones, and laptops. 

  2. Evaluate if an item is allowable and reasonable.

  3. Report aid frequently and often. The Financial Aid Department will have a better chance of working with a student's aid package if they are given advance notice.