Customer Account Services, Accounting, and Financial Aid have created a new form entitled “Payment for Student Travel”. The purpose of the form is to help ensure payments made for student travel are compliant with IRS and federal financial aid regulations. Attached is a copy of the form. It can also be accessed on the Accounting Downloadable Forms webpage and will be available on the Financial Aid webpage.
The Higher Education Act of 2008 (the first HEA became law in 1965) defines other financial assistance as any other assistance known to the school. If the assistance was a result of enrollment, but not a result of employment, the school must treat it as a financial aid resource. Assistance is distinguished from reimbursement for expenses. Reimbursement for expenses can only occur if there was a legitimate business reason for the student to have incurred the expense for which they are being reimbursed, not simply as a form of payment for a prize, stipend for travel related to their education, or undefined “other” reason.
The form must be submitted with any student travel payment that is being paid with an Accounts Payable Voucher or as a scholarship. The purpose of completing the form is to determine the primary beneficiary. If the primary beneficiary is NDSU, the payment is deemed business-related and should be processed on an Accounts Payable Voucher through Accounting. If the primary beneficiary is the student (i.e. the primary purpose of the travel is to provide an educational benefit to the student), the payment should be processed as a scholarship through the Financial Aid Office.
Please note, this form is not to be used for student employees traveling for university business (i.e. a Grad Assistant traveling to conduct research on a grant). Continue to reimburse these students through a travel voucher.
Please take a moment to review the form. If you have any questions, contact Tyson Lund at firstname.lastname@example.org or 701-231-9724.