Set up process
Scholarships: Uses the “Item Type Request Form”
Third Party Payments: N/A
Scholarships: Submit Scholarship Upload Form each term
Third Party Payments: Submit Internal Third Party Authorization Form each term, and submit an interdepartmental billing form to pay the deferral after receiving an invoice.
Remissions: Submit Tuition Remission Authorization Form each term.
Type of tuition charges and/or fees that apply
Scholarships: Does not distinguish. Applies to all tuition types and fees.
Third Party Payments: Applies to the charges specified in the Internal Third Party Authorization Form (Examples: resident tuition, non-resident add-on tuition, segregated fees, all tuition, all tuition and fees, etc.)
Remissions: Applies to instructional fees and/or non-resident fees, depending on the type of remission.
Amount applied to student account
Scholarships: Specific (fixed) dollar amount.
Third Party Payments: The assessed (billed) amount for the identified tuition and fee type(s) or a specific (fixed) dollar amount. Defers tuition and/or fees from the student tuition account to the Department. Bursar’s Office invoices the department for the deferred tuition and/or fees – the department is expected to pay within 60 days.
Remissions: Fellowship Remission waives the non-resident tuition only. RA, PA, TA, & LSA remission waives resident and non-resident tuition only. Remissions do not waive segregated fees.
Timing for posting on the student account
Scholarships: Scholarships submitted to the Bursar’s Office prior to the start of the semester will be applied to the student’s account by the tuition due date. Scholarships submitted after this date will be processed within 3 to 5 business days.
Third Party Payments: Internal Third Party Authorization forms submitted to the Bursar’s Office prior to start of the semester will be applied to the student’s account by the tuition due date. Third Party Authorizations submitted after this date will be processed within 3 to 5 days. These do not roll from Spring to Summer.
Remissions: Tuition Remission Authorization forms submitted to the Bursar’s Office prior to start of the semester will be applied to the student’s account by the tuition due date. Tuition Remission Authorizations submitted after this date will be processed within 3 to 5 days. These do roll from Spring to Summer.
Who receives the refund
Scholarships: Unused amounts are refunded to the student.
Third Party Payments: Unused amounts are refunded to the department.
Eligibility of the students
Scholarships: International students: disbursed to student through payroll. Amount received is net of taxes. UW-Madison non-student employees: may have tax limits due to purpose of education.
Third Party Payments: International students: eligible because Third Party is limited to tuition & fees only and is non-refundable. UW-Madison non-student employees: may have tax limits due to purpose of education.
Departmental scholarships provide a fixed dollar award to the student. The amount is refundable to the student. Note that International students scholarships will need to be processed through payroll and may not receive the full scholarship amount since taxes must be deducted first.
Internal third-party deferrals are contracts that can specify the following: (1) type of tuition or fees; and (2) the maximum amount per student. The type of tuition or fee can be broad, such as all tuition and fees, or specific, such as the non-resident tuition add-on (to the base resident tuition amount). The payment amount can be fixed, such as $1,000, or the total amount assessed (based on the type of tuition charges or fees identified).
Factors to consider when determining the type of financial support
Third-party deferrals have more set-up options and more processing controls than scholarships. Here are some factors to consider:
Departmental scholarships only pay fixed dollar amounts. A third-party deferral can pay either a specific dollar amount or an assessed (billed) amount. The latter amount will adjust as the types of charges it covers change (generally due to a credit load change).
Tuition and fee types
Third-party deferrals will allow the department to identify specific tuition and fee types (e.g., instructional/resident tuition, segregated fees, etc.). Scholarship amounts will apply to all charges.
Tuition refund processing
Changes to the student’s credit load may result in a refund. Departmental scholarships are refunded to the student while internal third-party deferrals are refunded to the department. Scholarships are considered to be the student’s money and are not returned to the department. A department must use a third-party deferral to receive refunds.
Eligibility of student
Tax laws may impact whether a student is eligible to receive a scholarship or a third–party deferral and how much the student can receive.
- International students (Nonresident Aliens) must have taxes deducted from their financial award. Consequently, scholarships for Nonresident Aliens (NRAs) are processed through payroll (and not by the Bursar’s Office) and go directly to the student. The student is expected to use the money for his or her bill but nothing guarantees this. However, NRAs are eligible for third-party deferral because third party payment is limited to tuition & fees only and is not refundable to the student. Please refer to the Accounting Services website for more information: Scholarship Payments to Nonresident Aliens.
- UW-Madison employees may be subject to tax law depending on the purpose of the education. Contact Laura Rader in the Bursar’s Office to discuss UW-Madison employee eligibility.