Awards from External Sources
- Where to send scholarship checks
- What to include with a scholarship check
- When to send scholarship checks
- Scholarship disbursement
- Effects of scholarships on other aid
- Refunds to scholarship donors
- Disclosure of a student’s cost of attendance or other financial aid
- Bill/invoice for scholarship payment
- Evaluation of academic performance
- Confirmation of check receipt
- Verification of enrollment
- Is Your Scholarship Taxable?
- For More Information
Where to send scholarship checks
All outside scholarship checks for students attending Loyola University Chicago should be sent to:
Office of Student Financial Assistance
1032 W. Sheridan Rd.
Chicago, IL 60660
Make all scholarship checks payable to Loyola University Chicago. If a check is made co-payable to Loyola University Chicago and the student, the student will be required to sign the check which may delay the application of the funds to the student’s account.
What to include with a scholarship check
Please submit the Outside Scholarship Report Form (OR), available on our forms page.
Please include the following with each check:
Student’s Loyola University Chicago identification number or student’s social security number
Scholarship donor’s name, address and telephone number
Directions on how the funds are to be disbursed, i.e. fall only, spring only or for the full academic year
Any restrictions of the funds, i.e. tuition only, tuition and fees only or toward the total cost of attendance.
When to send scholarship checks
In order for a scholarship to credit a student’s account before their charges are due, we recommend that checks be submitted to the Scholarship Director by these dates:
August 1 for fall semester
December 1 for spring semester
May 1 for summer sessions
Unless otherwise stipulated, all outside scholarship checks received that are $1,000 or less will be disbursed to the term in which the check is received.
Scholarship funds first pay a student’s outstanding Loyola University Chicago charges. After a student’s current charges are paid, any resulting credit balance is refunded to the student by the Office of the Bursar.
Effects of scholarships on other aid
The receipt of a private scholarship may result in the reduction or prepayment of need-based financial assistance previously awarded to the student by Loyola University Chicago. In accordance with federal regulations, our office is required to monitor whether a student’s total financial assistance remains within their financial need-based eligibility. Similar practices are followed with some institutional need-based grants. Whenever possible, self help awards (Federal Work Study and loans) are reduced before federal or institution gift assistance.
Refunds to scholarship donors
Once an award has credit a student’s account in the current semester, the student’s enrollment status is not monitored. If a student withdraws from school after he/she has received an award, the donor is responsible for collecting any scholarship funds disbursed. However, if a student withdraws from school before he/she received the award, any non-disbursed funds are refunded back to the donor.
Disclosure of a students cost of attendance and other financial aid
Donors wishing information regarding the student's other awards, estimated cost of attendance, or financial need should ask the student to submit a copy of his or her Financial Aid Award letter. This standard award letter is available to students through the Loyola Online Connection to University Services (LOCUS). If this information is to be entered on a form provided by the donor, forms should be mailed to the address below. We recommend that requests for information be submitted to the Loyola University Chicago Office of Student Financial Assistance by the following dates:
July 1 for fall semester
November 1 for spring semester
April 1 for summer sessions
A student's signed authorization to release confidential information to the donor must be received by the Scholarship Director before any information can be provided to the donor. Verification of actual costs of attendance should be obtained directly from the student.
Bill/Invoice for scholarship payment
The Office of Financial Assistance does not bill donors for scholarship payments. If an invoice or bill is required for payment, the student needs to provide their account statement from the Office of the Bursar. If bills for housing, books or other educational costs are required, the donor needs to ask the student to obtain appropriate documentation from all eligible creditors.
Evaluation of academic performance
If an evaluation of academic performance is required for scholarship payments, students may request official transcripts through LOCUS here .
Confirmation of check receipt
The canceled scholarship check serves as the donor's receipt. If donors need further documentation of their donation for tax purposes, they must make special arrangements with the Scholarship Director directly.
Verification of enrollment
If a donor requires verification of enrollment then the student must complete the Enrollment Verification Request form available through the Office of Registration and Records. Please note that a Verification of Enrollment cannot be confirmed until approximately 30 days from the beginning of the semester when the student is responsible for all charges.
Is Your Scholarship Taxable?
A scholarship is tax-free if:
You are a full-time or part-time candidate for a degree at a primary, secondary or accredited post-secondary institution.
The award covers tuition and fees to enroll in or attend an educational institution.
The award covers fees, books, supplies and equipment required for your courses.
The award is tax-free only as long as you use it for the purposes outlined above.
Taxable Scholarships and Fellowships
Your scholarship is taxed if it is used to cover:
Room and board
If your award, for example, covers both tuition and room and board, the amount you use for tuition is tax-free, while the amount you use for room and board is taxable. If you need to make this adjustment, you may have to adjust other parts of your return as well. For example, if you are filing a deduction for educational expenses, you must reduce the amount of your deduction by the tax-free amount of the award.
If your only income is a tax-free scholarship or fellowship, you’re in the clear. You don’t have to file a tax return or report the award. On the other hand, if all or part of your scholarship is taxable and if that money is not recorded on your W2 form, you must report it:
If you are filing a 1040EZ form, print “SCH” and the taxable amount to the right of the words “W-2 form(s)” on line 1.
For the 1040 or 1040A forms, write “SCH” and the taxable amount on the dotted line next to line 7 on the 1040 or in the space to the left of line 7 on the 1040A.
If you’re not sure if your award is taxable, ask the organization that sponsored the award. They may have information from the IRS regarding your award’s tax status.
You can also seek information directly from the Internal Revenue Service. Check the IRS website, call the IRS help line at 800.829.1040, or download IRS Publication 970, which covers the tax benefits of education. If you have questions, ask as soon as possible to get your answers before tax time.
Being informed about the tax procedures for scholarships will make your life easier come April 15. Find out what’s taxable and report it correctly. You want to stay on your Uncle Sam’s good side.
For more information
If you have question about these procedures please contact the Office of Student Financial Assistance:
Loyola University Chicago
1032 W. Sheridan Rd.
Chicago, IL 60660