Get matched with vetted scholarships and enter our
Please select whichever best describes you for the 2024 - 2025 academic year.
I’m a high school student I’m a college or graduate student
100% Free. No Spam.
    Start typing in the text field above
    Advertiser disclosure

    Student-centric advice and objective recommendations

    Higher education has never been more confusing or expensive. Our goal is to help you navigate the very big decisions related to higher ed with objective information and expert advice. Each piece of content on the site is original, based on extensive research, and reviewed by multiple editors, including a subject matter expert. This ensures that all of our content is up-to-date, useful, accurate, and thorough.

    Our reviews and recommendations are based on extensive research, testing, and feedback. We may receive commission from links on our website, but that doesn’t affect our editors’ opinions. Our marketing partners don’t review, approve or endorse our editorial content. It’s accurate to the best of our knowledge when posted. You can find a complete list of our partners here.

    What is a College Stipend and How Do They Work?

    Gabriel Jimenez-Ekman Cece Gilmore By Gabriel Jimenez-Ekman
    Gabriel Jimenez-Ekman

    Gabriel Jimenez-Ekman is a content editor and writer at Scholarships360. He has managed communications and written content for a diverse array of organizations, including a farmer’s market, a concert venue, a student farm, an environmental NGO, and a PR agency. Gabriel graduated from Kenyon College with a degree in sociology.

    Full Bio Linked-In

    Learn about our editorial policies

    and Cece Gilmore
    Cece Gilmore

    Cece Gilmore is a Content Writer at Scholarships360. Cece earned her undergraduate degree in Journalism and Mass Communications from Arizona State University. While at ASU, she was the education editor as well as a published staff reporter at Downtown Devil. Cece was also the co-host of her own radio show on Blaze Radio ASU.

    Full Bio Linked-In

    Learn about our editorial policies

    Reviewed by Annie Trout
    Annie Trout

    Annie has spent the past 18+ years educating students about college admissions opportunities and coaching them through building a financial aid package. She has worked in college access and college admissions for the Tennessee Higher Education Commission/Tennessee Student Assistance Corporation, Middle Tennessee State University, and Austin Peay State University.

    Full Bio

    Learn about our editorial policies

    Edited by Maria Geiger
    Maria Geiger

    Maria Geiger is Director of Content at Scholarships360. She is a former online educational technology instructor and adjunct writing instructor. In addition to education reform, Maria’s interests include viewpoint diversity, blended/flipped learning, digital communication, and integrating media/web tools into the curriculum to better facilitate student engagement. Maria earned both a B.A. and an M.A. in English Literature from Monmouth University, an M. Ed. in Education from Monmouth University, and a Virtual Online Teaching Certificate (VOLT) from the University of Pennsylvania.

    Full Bio Linked-In

    Learn about our editorial policies

    Updated: October 1st, 2024
    Group of students smile and talk about what a college stipend is

    As you apply to research positions, internships, and scholarships, you may see the term “stipend” come up a lot. But what is a stipend, and how do they work? Stipends are a bit different from wages, although they both end up paying you money. It’s a good idea to have a comprehensive knowledge of the term so you know all of the rules for how you’re receiving your money. 

    Here, we’ll go over the technical definitions of the term compared with salary. We’ll discuss where you’re most likely to encounter stipends versus salaries. Finally, we’ll close with the most important piece: what that means for you. You’ll get a good idea of how the two types of payment can be taxed and used differently.

    Related: Are work study earnings taxed?

    What is a stipend?

    Stipends are paid to people who are performing positions that do not function under the typical wage system. This could be because the primary function of their position is to educate them or because they are volunteering. They can also be offered as part of a scholarship reward. In all of these circumstances, an organization is paying an individual for a reason other than services rendered. In these cases, you don’t have an employer-employee relationship.

    What is the purpose of a stipend?

    The purpose of a stipend is not to compensate someone for their work, but rather, to allow them to satisfy living expenses while they perform their duty. For example, nonprofits may offer stipends for at-risk youths to learn work skills. This allows them to put food on the table while learning skills to land a job. They are not getting paid for their work, but rather to allow them to work.

    College stipends typically come as part of scholarship rewards. They are especially common for recipients of full-ride scholarships. Once the tuition and fees are all paid, there are still living expenses that come along with college. This is where a stipend comes in; a scholarship organization will pay the student a flexible amount of money to pay for things like books and basic living expenses.

    Also see: Tuition reimbursement: What it is and who offers it

    Stipend versus salary

    So, while both stipends and salaries put money in the recipient’s pocket, they serve different purposes. If you receive a salary, you are being compensated for a service that you perform. For example, you earn money for your company or help fulfill the mission of your nonprofit. This is the primary function of your job. You may gain skills from your work, but that is not the intention behind your employment. 

    On the other hand, stipend earners are occupying a position where their own development is the main objective. This could be for an apprenticeship or an internship. It could even be through volunteer opportunities like the Peace Corps. And, most relevantly for college students, it could be through scholarships. When you win a scholarship, the organization is not paying you for the services you provide to them. They are paying you to ensure that you can afford to attend school and benefit from their assistance.

    Also see: The Peace Corps and college loans: What you need to know

    How college stipends differ from others

    College stipends are unique because, rather than taking the place of a salary, they are basically just an extra source of income. After winning a scholarship, you’ll automatically receive your stipend as long as you continue to satisfy internship requirements and attend college. Some scholarships may require you to submit documentation that your stipend is being used on approved expenses. However, most of the time, the money is used at your discretion.

    Quick Tip

    If you receive a stipend, make sure to reach out to the provider to learn whether they require documentation to certify your expenses.

    Related: What are internships and why are they important?

    Where you’ll see stipends offered

    Here are some situations in which you may expect to see stipends offered instead of salaries:

    What this means for you

    If you are receiving a college stipend, congrats on winning a scholarship! You should be sure to check in with your scholarship organization about any rules around your stipend. Also, check whether you need to document how you spent your stipend to satisfy requirements. Finally, make sure you ask about how taxes will interact with your stipend. Some college stipends won’t be taxed at all, but others will. Check beforehand that you are filling out the right tax information and that you know how much you’ll owe in taxes before tax-day rolls around.

    Related: Everything you need to know about graduate assistantships

    Key Takeaways

    Key Takeaways

    • Stipends come in lieu of salaries in positions that serve mostly to educate the recipient rather than provide value to the company
    • College stipends help you pay for your books and other costs of living
    • You can usually use college stipends at your own discretion
    • Stipends are taxed differently than salaries, but their tax eligibility may vary. Check in with your employer to ensure you’re paying the proper taxes

    Frequently asked questions about college stipends

    Can a college stipend be used for anything?

    A stipend could be used for almost anything as long as it is to assist with living or work-related expenses. However, it does come down to the restrictions of the stipend specifically so double check any rules regarding your stipend.

    Do stipends affect financial aid?

    Stipends paid to college students in return for work performed for the university are not considered financial aid. Rather, these stipends are wages that are reported on a W-2 statement at the end of the year’s income. These stipends are reported on the tax return as wages and are reported on the following years FAFSA.

    How are college stipend checks disbursed?

    Usually stipends are paid on a schedule, whether that be weekly, monthly, or yearly. Like any other wage payment, students receive funds through direct deposit or by   check. 

    Can I receive a stipend and a tuition waiver?

    Yes, students can receive both a college stipend and tuition waiver; this is most common in regard to graduate students.

    Do stipends count against financial aid?

    Stipends are considered as financial aid and thus may affect the final financial aid package.

    3 reasons to join scholarships360

    • Automatic entry to our $10,000 No-Essay Scholarship
    • Personalized matching to thousands of vetted scholarships
    • Quick apply for scholarships exclusive to our platform

    By the way...Scholarships360 is 100% free!

    Join For Free