Tuition costs

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Mary Olson

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Mar 25, 2021, 4:25:29 PM3/25/21
to CACoP Allowable Direct Charges Forum, olso...@umn.edu
If we have a student who is not allowed to "work" due to the visa type, is
she allowed to take classes?  And are we able to pay for her tuition on our
sponsored project?

Rachel Veenstra

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Mar 26, 2021, 9:39:37 AM3/26/21
to CACoP Allowable Direct Charges Forum, Mary Olson
Hi Mary,

I am interested to see what 'official' answer you receive on this.  My response would be no on a sponsored project.  Tuition was budgeted/justified as an allowable fringe benefit of employment.  Paying tuition through 3rd party billing is processed as student assistance, and I am not sure this is allowable on most sponsored projects.

If non-sponsored funds are used, this also feels problematic.  Who is selected to receive tuition assistance outside employment, fellowship or scholarship, seems ripe for favoritism.  This is an area I feel deserves clarification and a University regulated process.  The ask to pay tuition as a stand alone cost is not uncommon.  The basis by which one person, vs another, is the beneficiary of such generous support is unregulated, and I believe a slippery slope for abuse of power.

Rachel

David Hagen

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Mar 26, 2021, 11:21:09 AM3/26/21
to CACoP Allowable Direct Charges Forum, Mary Olson
Hi Mary,

Can you elaborate on the type of visa and the type of sponsored project?

If the student can't be hired by the U because they are from one of the countries with which the U doesn't have a tax treaty, then HR and the tax office have developed a work around to hire them through iWork as contract employees.  If they are hired as a contract employee through iWork, then the U has decided to provide the tuition remission benefit.

If they are a trainee on a T or F grant, then I believe tuition could be paid as trainees, but I would need to verify with the managers in SPA since training grants are my area of expertise. 

For other types of sponsored projects the answer would be no, but I think more information is needed about the visa type and why they cannot be hired by the U or through iWork.

Whether or not you can use non-sponsored funds to pay their tuition would be a question for the Controller's Office.

David


On Thursday, March 25, 2021 at 3:25:29 PM UTC-5 Mary Olson wrote:

David Hagen

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Mar 26, 2021, 11:37:43 AM3/26/21
to CACoP Allowable Direct Charges Forum, David Hagen, Mary Olson
Sorry.  I meant to write " I would need to verify with the managers in SPA since training grants are not my area of expertise"

Mary Olson

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Apr 2, 2021, 11:12:34 AM4/2/21
to CACoP Allowable Direct Charges Forum, David Hagen, Mary Olson
Sorry for the delay...deadlines, you know.

Here's what I know:
The individual currently holds a H4 visa and has applied for a change to O3.  This doesn't have much relevance, but their spouse is a current UMN faculty member who had a H1B visa and changed to a O1A visa. 

Potential funding would be an NIH R01 grant. 

Within the UG, we located the following information regarding allowability of tuition:

1. for a trainee on a training grant (section 200.466   Scholarships and student aid costs.)

2. as a fringe benefit for an employee, if applied consistently across the institution. (section 200.431 (j)  Compensation—fringe benefits)


Therefore, we are thinking it is unallowable.


However, if allowable, the next question would be how to pay it if the person doesn't have a student account. 

David Hagen

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Apr 6, 2021, 12:41:22 PM4/6/21
to CACoP Allowable Direct Charges Forum, Mary Olson, David Hagen
It wouldn't be allowable to pay for her tuition on the R01 if she is neither a trainee nor an employee.  

I think the question about how to pay it without a student account would be one for the Bursar or similar office.  Whether or not it is allowable to pay for tuition for a non-employee from a non-sponsored program would also be something I would check with the Controller's Office.

~ David
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