The government offers programs to help deserving and/or needy students further their education on specific criteria. Fellowships and scholarships are two such programs that are frequently misunderstood in this regard. In general, the terms "scholarship" and "fellowship" imply "financial aid" for researchers, students, and anybody else who is interested in looking for, discovering, and studying anything new. A university, research center, academic institution, laboratory, government, or foundation establishes "scholarships" and "fellowships."
What is a Fellowship?
With the help of an academic fellowship, graduate students can expand their research experience at the graduate, postgraduate, and occasionally undergraduate levels without breaking the budget. While some fellowships function more like graduate student internships, others have minimal or no explicit employment requirements. Graduate students who have the chance should apply for these rewards since they can improve their financial situation and resume. Fellowships are awarded based on merit, with preference for those with strong GPAs and bright futures.
Different types of fellowship models
Fellowship models are subject to the discipline, the partner organizations involved, and the targeted outcomes for fellows (i.e., employment with the host institution, a completed project, or a presentation of their work). Below are the fellowship models that are most commonly conducted.
1. Group fellowships: Disciplines that rely on team effort and collaboration may benefit from implementing peer work into a fellowship program. Fellows can collaborate on singular projects while learning from each other and improving group dynamics like delegation and communication. A group fellowship also builds a support system for fellows to turn to during their program.
2. Alumni fellowships: An alumni fellowship offers return programs for the institution's alumni. This can include students who could not partake in extra programs before graduating or those who want to further their work with the institution more deeply. This setup can also allow fellows to collaborate with the host institution’s partnerships as an extension of their studies.
3. Art or cultural fellowships: A fellow participating in the Lambda Literary Writers Retreat is given a full or partial scholarship to participate in their artistic residency. The Native Arts and Cultures Foundation funds emerging Native artists who share and discuss their culture. These fellowship programs tend to be run by non-profit organizations that rely on funding via grants or donations. There are also government-funded arts fellowships driven by the initiative to develop and support the arts and artists.
4. Dissertation-centered fellowships: University graduate programs can offer fellowships that provide funding and support towards a graduate student’s dissertation research and completion. The student receives funding to pay for their tuition or a stipend to cover their research and submission of their completed dissertation. Students can apply for these fellowships in their senior year of undergrad or first year in graduate school.
5. Medical fellowships: A medical fellowship typically spans one to three years and can be a step further toward a physician's specialty after completing medical school and residency. Participating doctors can dive deeper into the specialty they are pursuing and get an opportunity to work closely with the host facility. Many medical fellows go on to work full-time with the facility where they completed their fellowship.
6. Graduate fellowships: As mentioned before, a graduate fellow receives a scholarship to help cover the costs of their graduate studies. The funds can also be used for research materials, accommodation, and extracurricular activities related to their program.
7. Postdoctoral fellowships: A postdoctoral fellowship is awarded to those who recently completed doctorates but want to commit more time and research into their study. They are given a subsidy to extend their coursework and to become even more specialized and experienced in their field. A postdoc fellowship can fund the courses and related projects the fellow wishes to pursue.
If a student, artist, physician, or any person wishes to learn more about their field, work with professionals, receive financial support, and accumulate quality work experience, fellowships are a viable option.
Are you a corporation, educational institution, or non-profit organization hosting a fellowship program? Symba provides the program management and data analytics tools you need to elevate your fellowship or workforce development program. Sign up for a demo today.
Benefits of Fellowships
The benefits of an institution that offers fellowships are built around supporting new careers, accessibility, and education. These benefits include:
1. Providing guidance, institutional support, and professional development to the fellow
2. Receiving new ideas, tactics, and perspectives from the fellow
3. Taking part in social responsibility and community engagement
4. Opening their doors, allowing for transparency
5. Contributing to the success of future leaders in a given field
The benefits for a person participating in a fellowship are geared towards supporting their educational and career paths. These benefits are listed below:
1. Fellowships can help subsidize the ever-increasing cost of education.
2. Fellowships can be an alternate option to pursuing formal education, graduate school, or doctoral degrees.
3. The fellow gains practical knowledge through experiential learning [link to Symba article on Experiential Learning Models]
4. The fellow can receive feedback from the program managers, their peers, or the community.
5. A participant gains exposure to the field and a network with professionals or other fellows.
What is a Scholarship?
A scholarship is a program that helps students with results and aims at students who wish to study at the tertiary level, including universities and colleges. Many students drop out after passing secondary school or grade 12 because they cannot afford tertiary studies since they are very expensive. Their dreams simply fade and are not fulfilled; some have very good qualifications and meet the minimum requirements to be admitted to universities. However, due to the bad experience, they cannot afford to continue their studies. Scholarship is there to close the gap.
Benefits of Scholarship
1. Transport/Travel Fees: If the student is studying outside the campus, far from the campus, he or she will receive money for transport. Again, not all SCHOLARSHIPS pay for this
2. Accommodation: The money is for the residence of students and the place where they are staying during their studies. It can be the residence from the institution or renting from outside. Usually, the money is paid directly to the institution if you are staying on the institution’s campus. Still, if you stay outside the campus, the money is paid directly into your account.
3. Tuition Fees: The money the student pays to an institution for lectures, classes, lab equipment, and study materials All the SCHOLARSHIPS are paying this fee even though some only pay these fees.
4. Book Fees: Some scholarships pay for study materials such as books, computers, cell phones, tablets, etc. For this, the money is paid directly to the student’s account.
Difference Between Scholarship And Fellowship
| Scholarship | Fellowship
| Need-based or merit-based | Typically merit-based
| Offered by institutions, private businesses, professional organizations, and foundations | Generally offered by institutions, government agencies, and foundations
| Most provide one year of funding | Often provides multiple years of funding
| Recipients receive a set monetary award to cover educational expenses | Recipients often receive a monthly stipend and a tuition waiver
| Available to both undergraduate and graduate students | More common for graduate students
Tax Implications Of Scholarships And Fellowships
Scholarships and fellowships awarded to students earning the degree are generally not taxable income for the student when used for qualified expenses. These expenses are defined by the “Internal Revenue Service (IRS)” to include the tuition and fees required and/or books, supplies, and equipment necessary for all students in the course. These payments do not have to be reported to the IRS by the student or university.
Scholarships and fellowships used for expenses other than those that qualify are taxable income. A tax grant is a payment, usually called a salary, in which no service is provided or required. Examples of stipends are payments that can be used for living and unforeseen expenses, such as accommodation and food, travel, books, and personal computers that are unnecessary. The granting department is responsible for accurately determining the amount, which should be classified as salary, but such decisions are always subject to review and reclassification by the tax office. All stipend payments will be paid through your account, except certain sports grants paid through the athletic account service for students.
Stipends paid to non-resident foreigners with F-1, J-1, M-1, or Q-1 visas have a 14% withholding tax on US income. Unless a tax treaty is available, Even if you currently have taxes payable by the state, you do not have to withhold state taxes. However, this may change due to changes in state law. FICA does not withhold taxable scholarships and fellowships because they are not a service fee.
Students from countries with tax treaties with the United States that contain the scholarship clause may be exempted or claim a 14% reduction if the payment meets the treaty's requirements. However, the student must complete the required form in the university’s tax department.
Frequently Asked Questions
What is the main purpose of fellowship?
Fellowships can provide opportunities for cultural immersion, expanding both professional and personal networks, experiential learning, and professional development
How many years is a fellowship?
One to three years
Conclusion
Fellowships and scholarships are valuable sources of financial support for students and individuals pursuing education and career development. Fellowships are often merit-based and offer research, specialization, and networking opportunities, while scholarships cater to both merit and financial needs and primarily support undergraduate and graduate studies. Understanding the distinctions between these programs and their associated tax implications is essential for those seeking assistance to bridge financial gaps and achieve their academic and professional goals.