Other financial assistance guidelines

Administrative capability requirements

To continue to participate in the Federal Student Aid (FSA) programs, a school must demonstrate that it is administratively capable of properly managing these programs. This includes following the Other Financial Assistance (OFA) reporting requirements. Essentially, all departments must share any information that could affect a student's federal Title IV aid with the financial aid office. If the university doesn't meet these reporting requirements, it could face penalties, fines, or even lose the ability to offer Title IV aid in severe cases.

The Higher Education Act of 1965 defines Other Financial Assistance (OFA) as the amount of help a student (or their parent) is expected to receive during their enrollment period. This assistance can come from various sources like federal, state, institutional, or other sources such as scholarships, grants, need-based employment earnings, or loans.

Other financial assistance – reporting requirements

By making sure all gifts are reported accurately and promptly, Wayne State University can stay compliant with federal regulations and help students manage their financial aid effectively. Timely reporting helps avoid potential issues like reducing other aid or creating a situation where the student might owe money back to the university.

Both university and external sources of financial assistance must be reported as other financial assistance, no matter the amount or whether the assistance is taxed or not. This includes, but is not limited to, the following:

• Scholarships, discounts and other assistance applied to a student’s account.
• Fellowships, stipends, assistantships, or honorariums that are not need-based and/or considered employment under federal or state law must be reported.
• Financial assistance given to the student that can cover enrollment and educational expenses or is given because of their enrollment. This includes cash, cash advances, and cash equivalents (e.g., gift cards, pre-paid debit cards) provided for postsecondary enrollment expenses (e.g., groceries, gas) when tracked on a per-student bas
• Prizes, winnings, or gifts (including tangible personal property) received from contests or drawings and tracked on a per-student basis must be reported as OFA when any of the following occur:
  • Prizes of cash or non-cash items (including cash equivalents) that can be used to pay educational expenses.
  • Eligibility to participate in the contest or drawing is restricted to WSU students.
  • The recipient is required or has the discretion to use the prize for educational purposes.
  • The contest or drawing is part of the student’s course, program, or degree completion (such as a poster competition required by an instructor as a course requirement).
• Payments or the monetary value of materials or equipment given to and owned by the student, which are required by the academic program (e.g., musical instruments, computer software or hardware)
• Other sources considered reportable OFA include but are not limited to:
  • University fees and charges paid on behalf of or paid directly to the student
  • Employer provided tuition assistance programs
  • Housing discount programs
  • Churches, professional, civic, or service organizations and private foundation funding

Financial assistance that may have to be reported

Expenses for conference or travel required for academic credit or part of a course must be reported as OFA when: payment is made directly to a student, payment is reimbursed to a student, or payment is made to a third party.

Expenses for optional trips or conferences that are not required for academic credit or part of a course do not have to be reported as OFA when: payment is reimbursed to a student by the school for actual expenses or payment is made directly to a third party.

Financial assistance that does not have to be reported

University and external sources of financial assistance that are not reported as OFA include, but are not limited to:

• Non-need-based wages earned by a student and considered employment under federal or state law
• Human subject compensation
• Federal veterans’ education benefits

Frequently asked questions (FAQs)

When must other financial assistance be reported?

Reporting must happen as soon as the financial assistance for a student is known. Prompt reporting helps avoid potential negative impacts, such as the reduction of other aid or the creation of a bill-back situation where the student might owe money back to the university.

Is there a minimum threshold for reporting?

No, there is no minimum dollar amount. Any amount of financial assistance provided to a student, no matter how small, must be reported as OFA.

Do gift cards, hats or swag need to be reported?

The value of the gift and gift card is considered other financial assistance (OFA) if it is tracked on a per student basis. If a unit does not track the gift card on a per student basis, it is not OFA and does not need to be reported.

How will reporting other financial assistance impact a student’s other financial aid?

The amount of assistance will be included in the student’s financial aid package. Including this assistance doesn't always mean other aid will be adjusted.

Timely reporting can help reduce a student’s reliance on student loans and their debt after graduation. Early reporting can prevent situations where late notifications cause the student to exceed their Cost of Attendance (COA), which might require a reduction in other aid if reported too late in the year.

Are their options to minimize the impact to other financial aid?

If a student’s other financial aid is affected, the Office of Student Financial Aid (OSFA) will do its best to minimize the impact. OSFA can make allowable increases to the Cost of Attendance (COA) for educational expenses that aren't already included.

Do gifts, stipends, and other assistance made to students need to be reported during a semester the student was not enrolled?

Yes. Assistance paid to students who have not graduated and are expected to reenroll must still be reported to OSFA. Gifts during the summer will be counted for the following academic year.

Are all stipends and fellowships treated as OFA?

Fellowships and stipends that are not considered employment under federal or state law must be reported as other financial aissistance (OFA). If a fellowship or stipend is considered employment or compensation under federal or state law, it is exempt from OFA reporting.

If a faculty member provides students with textbooks at no charge, does the value need to be reported?

Yes, if the textbook is gifted to a student. No, if the textbook is loaned.

Do funds provided for an optional trip or conference need to be counted?

• Yes, if the funds are paid directly to the student or advanced to the student.
• No, if the expenses are paid by WSU directly to a third party or reimbursed to the student by the school for actual expenses incurred.

Do funds for a required trip need to be counted?

Yes, amounts paid to a student, reimbursed to a student, or paid directly to a third party must be counted since this is a course requirement. A COA appeal with documentation may be considered since the additional costs are part of a course requirement.

Is there any tax information about other financial assistance available for students?

Information for students is available on our website at wayne.edu/financial-aid/types/other#stipends.

Reporting process

The Office of Student Financial Aid is developing a new form for business managers to report any student assistance disbursed outside the standard scholarship process. In the meantime, please send us an email with the following details:

• Student’s name
• AccessID
• Type of gift
• Gift amount/value
• Date of gift

Send this information to: scholarships@wayne.edu.