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G. Financial Assistance

This version of the Guide to Graduate: G. Financial Assistance handbook has been made available for users who prefer to print or read it in its entirety.

G1. Financial Support and Recruitment

Well-planned programs of financial support are some of the most effective recruitment and retention tools available to departments. The key to a successful funding strategy for both departments and individual students is to use as many of the University’s resources as possible, rather than to rely on one or two traditional forms of support.

Departments are encouraged to plan “packages” of financial assistance, especially for newly admitted students. By offering several years of support — for example, two years of fellowship support (multi-year, block award, traineeship, or departmentally restricted fellowships) and subsequent years of Graduate Student Instructor or Graduate Student Researcher appointments — Berkeley can continue to attract the most outstanding students.

Students are encouraged to be aggressive in their search for funds. The Graduate Division website (www.grad.berkeley.edu) provides much useful information. Graduate Fellowships often offers workshops explaining certain fellowships. The workshops will be announced via email, the eGrad Newsletter or the Graduate Division Calendar. The students who are most successful in finding support tend to be those who investigate the many types of financial assistance available and apply for all the programs for which they are eligible.

Graduate advisers and assistants should inform students that some of the available funding is based on need. To be eligible for awards, including block awards, students who are U.S. citizens or permanent residents must complete the Free Application for Federal Student Aid (FAFSA).

G1.1 Types of Financial Assistance

University-sponsored financial assistance falls into three main categories:

  1. Fellowships
  2. Academic Appointments
  3. Loans

Fellowships

University and external fellowship programs are available to new, continuing, and returning students (domestic and international). Fellowship programs help departments attract and retain the most highly qualified students. Some also aid in enhancing diversity on campus. Details on nominating entering students are included in the Fellowships Handbook, sent to departments in January. Inquiries should be directed to the Graduate Services Fellowships Office (318 Sproul Hall, 642-0672).

Multi-year fellowships for entering students. University-sponsored multi-year fellowships are awarded through an annual campus-wide competition administered by the Graduate Student Services: Fellowships office. Instructions for nominating are included in the Nominations Procedures and Checklist section of the Fellowships Handbook. Inquiries should be directed to Graduate Student Services: Fellowships, 318 Sproul Hall, and 642-0672.

University fellowships and grants for continuing or returning students. Some departments normally hold internal fellowship competitions to select continuing and returning students for receipt of Block and Restricted Endowment awards. The Graduate Division also offers various fellowship programs for continuing students, including a conference travel grant, summer grant, and, for parent students with financial need, a parent grant. For more information, please visit the Fellowships Office web site.

Note: Per Graduate Council’s resolution of April 5, 2000, previously registered graduate students at UCB in any department are considered continuing or returning students and are not eligible for the University multi-year fellowship competition, except those who were admitted for a master’s degree only and received a master’s degree the previous May in Folklore, Asian Studies or Range Management.

External fellowships for entering, continuing or returning students. Many external fellowships are available to entering and continuing students. A list of major external fellowship programs can be found on the Fellowships web page. In addition, a list of web links is also available to assist students in the search for fellowships specific to the student’s field of studies and stage in the degree program.

University and extramural fellowships for international students. International students are not eligible for the federal financial assistance programs available to U.S. citizens and permanent residents. Departments should keep this in mind when advising continuing students and corresponding with prospective international students, who may interpret any encouraging letter from the University as a commitment for admission and financial assistance.
Overall, the cost of graduate school for international students is considerably higher than it is for domestic students. International students in F-1 or J-1 status cannot establish California residency and must pay nonresident tuition except for a three year exemption when advanced to doctoral candidacy.

International students are eligible for some University fellowships and departmental block fellowships. Entering students should follow the instructions in the Graduate Application for Admission and Fellowships. Continuing international students apply directly to their departments.

Some extramural fellowships such as the HHMI International Student Research Fellowships for certain fields of study are open to international students. The Berkeley International Office offers some tuition and fee awards for needy students, as well as grants to students who have a child living with them. Eligibility for these grants is based on financial need and changes in a student’s financial situation. Please visit their web site for more information.

Academic Appointments

Academic appointments provide a substantial source of financial support for Berkeley graduate students. Most financial packages, such as multi-year fellowships, provide academic appointments during the third and fourth year.

Several types of appointments are available to both doctoral and Master’s students:

For information on academic appointments policies and procedures, please refer to the Appointments web page

Loans

Most graduate students easily qualify for loans. Student loans are an important resource, but they should be considered as a last resort due to the danger of borrowing too much and accumulating high indebtedness. It is suggested that students actively pursue other funding, such as fellowships, employment, work-study, and outside funding, throughout their academic careers. For more information on loans and work-study, please visit the Office of Financial Aid web site.

Financial assistance for international students. International students are not eligible for the federal financial assistance programs available to U.S. citizens and permanent residents. Departments should keep this in mind when advising continuing students and corresponding with prospective international students, who may interpret any encouraging letter from the University as an offer of admission and financial assistance.

Overall, the cost of graduate school for international students is considerably higher than it is for domestic students. International students in F-1 or J-1 status cannot establish California residency and must pay nonresident supplemental tuition except for a three-year exemption when advanced to doctoral candidacy. In addition, there are fewer sources of financial support and international students lack the safety net of U.S. government-insured student loans, such as William D. Ford (formerly Stafford Loans or Guaranteed Student Loans), which most domestic students can rely on if they need substantial assistance. International students also do not qualify for any financial assistance intended for domestic minority students, no matter what their ethnic background. As a result, they are dependent in large part on assistantships and support from their families or governments.

G1.2 Taxes on Financial Assistance

Virtually all financial assistance to graduate students, except loans, is taxable under the terms of the Tax Reform Act of 1986. Fellowship and grant funds used to pay tuition, fees, and course-related expenses are excluded from taxation, but funds used for living expenses are taxable. It is up to students to claim as taxable the portion of their awards used for living expenses. The University does not withhold taxes from the stipend portions of fellowships.

The University reports awards made to international students to the IRS. Fourteen percent of their fellowship stipends will be withheld as federal tax unless their countries have a tax treaty with the United States that exempts its citizens from withholding.

Tax breaks for graduate and professional students. The 1997 Taxpayer Relief Act includes substantial tax breaks for college students and their families. The Lifetime Learning Credit, equal to 20 percent of the first $10,000 of qualified tuition and fees paid each year, or up to $2,000, is designed for adults who go back to school to upgrade their skills, college juniors and seniors, and graduate and professional students.

To be eligible for the credit, tuition and fees must be paid out of the students (or the student’s family) pocket. Grants, scholarships, or other tax-free educational assistance will not qualify, but loans and gifts will. For example, a Graduate Student Researcher (GSR) with a full fee remission will not be able to use this tax benefit. But a GSR or a Graduate Student Instructor with partial or no fee remissions or a student whose fellowship or grant covers only partial expenses may be eligible to claim a credit on the amount of qualified fees and tuition not covered. The credit is phased out when joint or single filers reach certain adjusted gross income levels. Other restrictions apply. Non-citizens are generally not eligible.

The University will provide students early in the new year with a statement of the eligible fees they have paid. They will file this statement with their tax returns. Graduate students who have children or other family members attending college may qualify for the Hope Scholarship Tax Credit for undergraduate study, and graduate students repaying student loans may qualify for the student loan interest deduction. For more information on the educational provisions of the 1997 Taxpayer Relief Act, see the Billing and Payment Services website

Students will find more information in the following IRS publications online.

Your Federal Income Tax Publication 17

U.S. Tax Guide for Aliens Publication 519

U.S. Tax Treaties Publication 901

Tax Withholding and Estimated Tax Publication 505

Tax Benefits for Education Publication 970

Tax Guide for U.S. Citizens and Resident Aliens Abroad Publication 54

Exemptions, Standard Deduction, and Filing Information Publication 501

Foreign Tax Credit for Individuals Publication 514

Taxable and Nontaxable Income Publication 525

How Do I Adjust My Tax Withholding Publication 919

G1.3 Fellowships

The Graduate Services Fellowships Office is a student services office dealing primarily with graduate students, although outreach and counseling for undergraduates and postdoctoral scholars is common. The unit handles over 600 fellowship funds, each with unique criteria and terms for awarding.

Approximately two-thirds of the graduate student population at UCB receive awards through the Graduate Fellowships Office. These programs include federal, University, endowments, departmental and private foundation awards.

The Fellowships Office:

Restricted Endowment Fellowships. The Graduate Services Fellowships Unit administers some Restricted Endowment Fellowships. It is the responsibility of the Chair of the Department to ensure that recommendations for Restricted Endowment Fellowships meet the terms of the endowment or agency. Generally, these awards must be made to registered and fully enrolled graduate students who maintain a 3.0 GPA. Departmentally restricted funds cannot be used for students on filing fee or to pay professional degree supplemental tuition. Departments now have the option of entering their departmentally restricted awards in GLOW or of continuing to deliver award forms to Fellowships as in the past. Departments who choose to enter awards in GLOW must appoint a data entry person as well as an approver (similar to DSAS). Data entry persons who already have GLOW access do not need further access approval. However, Graduate Fellowships will need to grant access to the approver(s). If your department wishes to start entering awards, please inform the Assistant Director of Fellowships of the data entry person and the approver to ensure that GLOW access is properly set up.

How students receive University fellowship funds. Fellowship stipend payments are normally issued by semester or monthly, depending on the award. The first payment is released no earlier than the first day of the semester. Graduate Division will send fellowship stipend payments to CARS only after the recipient has registered. (Registration is complete when at least 20% of fees/tuition are paid, the student is enrolled in one unit, and there are no active registration blocks.) Funds will be disbursed via Electronic Funds Transfer (EFT) for those who have elected this option (http://eftstudent.berkeley.edu) and whose CARS account is not past due; those who have not opted for EFT will be notified when a paper check is available for pick up.  Students should bring their valid Cal 1 Card and social security number to pick up their checks. Checks that are not picked up within 21 days will be mailed to the student’s local address on file in BearFacts.

Fellowship payment of fees and nonresident supplemental tuition, if applicable, will appear as a credit on the student’s Campus Accounts Receivables System (CARS) fee billing statement.

Electronic funds transfer (EFT). Electronic Funds Transfer is recommended for graduate students. Students may sign up for EFT online (http://eftstudent.berkeley.edu). It is normally activated in 7 business days. If EFT has been previously authorized, it will remain in effect. Please note: EFT for fellowship stipend payments is separate from automatic payroll deposits for GSI/GSR positions. Each needs to be authorized separately.

Terms and conditions of fellowships. Students who receive University fellowships are required to register full time (generally 12 units per semester) and to devote their time to study and/or research in the field in which the award is made, make satisfactory academic progress, and maintain a 3.0 GPA. Students who are receiving a summer stipend as part of their multi-year award are required to register for 3 units during the summer. To be considered registered, one must be enrolled in at least one class, have had at least the first installment of fees paid, and have no registration blocks.

The Graduate Services Fellowships Unit should be informed immediately, in writing, of any changes that may affect the fellow’s award, such as substandard performance, resignation, withdrawal, change of major, etc.

Entering students receiving a national award in addition to a University multi-year fellowship must request a “multi-year fellowship deferral” in writing and indicate the name and award criteria of the outside fellowship. If the total length of support exceeds four years, then one year of the University multi-year fellowship will be relinquished. Exceptions to this policy will be considered by the Associate Dean of Fellowships upon student’s request.

Supplementing fellowships with employment or another fellowship. Fellowships enable students to spend the majority of their time studying, and their need for additional financial assistance should be minimal. Departments and students must adhere to the following fellowship supplemental policies:

Students who are receiving a fellowship administered by the University that will give them at least $14,000 in stipend plus fees, are subject to an employment restriction: students may work up to 25% during the academic year (that is, 25% each term or 50% for one term only). There is no work restriction for the summer term.

University fellowships may be withdrawn or modified if the student received two full Graduate Division fellowships (each composed of a stipend plus fees) or if the student receives more than $31,000 in stipend funding during the 12-month academic year (Fall, Spring, and the following summer). In either case, the combined funding must be approved by the Associate Dean of Fellowships. In addition, students are advised to carefully read any departmental award offer(s) because these awards may have further restrictions regarding the maximum stipend amount rule or holding more than one fellowship.

Students receiving external fellowships must refer to the fellowship terms set by the corresponding agency regarding supplementation.

Traveling fellowships. Continuing students may apply to their departments or the Graduate Division for traveling fellowships. Students who receive traveling fellowships are required to register during the tenure of their awards, even if they are studying or doing research away from campus. If they are outside the state of California, they may be eligible for in absentia registration. Information regarding the in absentia registration status is available here.

Renewal of multi-year fellowships. Every spring, the Graduate Services Fellowships Unit sends departments the certification forms for recipients of the University multi-year and of extramural multi-year fellowships administered by the Fellowships Office, such as the NSF Graduate Fellowship. The Head Graduate Adviser should certify whether or not each student is making satisfactory progress toward the doctoral degree and whether the student will continue on the fellowship for the following year or will be supported by other means, such as a teaching or research appointment. The Head Graduate Adviser should consult with fellowship recipients about their plans for the coming year.

G1.4 Extramural Fellowships

If a student is selected solely by an awarding agency, and the department or Graduate Division has no responsibility for nominating or selecting the student, the fellowship funds for that student may be sent directly to the Financial Aid Office.

The Graduate Services Fellowships Unit maintains a list of extramural fellowships that are administered by Graduate Division on the Fellowships web site: (www.grad.berkeley.edu/financial/deadlines.shtml#extramural).

G1.5 Grant Proposal Advising

The Graduate Division Academic Services Unit assists graduate students in the development of academic skills necessary to successfully complete their graduate programs and prepare for future faculty positions. This unit offers workshops on topics such as academic writing, grant writing, dissertation writing, editing, and preparing articles for publication, in addition to writing groups and individual consultations on these topics. Students should consult the website (www.grad.berkeley.edu/acapro/academic_services.shtml) for a calendar of upcoming workshops, or contact Academic Services (643-9392; academic_services@berkeley.edu) for more information.

G1.6 Financial Aid

Graduate students may apply for need-based loans, emergency loans and work-study through the Graduate Unit of the Financial Aid Office (201 Sproul Hall, 642-0485).  For the most up to date information, please refer to the FAO web site (http://students.berkeley.edu/finaid/graduates/index.htm).

G1.7 Educational Allowance Top-Offs for External Fellowships

Graduate Division offers financial assistance to doctoral students whose external fellowship does not provide sufficient educational allowance to cover the fees and health insurance assessed by the University. The conditions for this assistance and the process by which it is provided are outlined here.

1. External fellowships that are administered through Graduate Division (i.e., Graduate Division is responsible for disbursement of funds to the student and for financial reporting.):
Graduate Division automatically ‘tops off’ the educational allowance provided by the external fellowship in order to pay in-states fees and health insurance (Graduate Division generally pays non-resident tuition only for the first year, and does not pay professional degree fees). Examples of such external fellowships include NSF, Javits,  DDRA Fulbright, and HHMI International.

2.  External fellowships that are administered by outside agencies:
Graduate Division will ‘top off’ the educational allowance for fees provided by an external fellowship to pay in-state fees and health insurance (but not non-resident tuition or PDF), provided that

Examples of such fellowships include DOE, DHS, and NDSEG.

Graduate Division will automatically process a fee subsidy award for the DOE and NDSEG programs. New NDSEG Fellows will receive an award to cover the health insurance balance. New DOE Fellows will receive an award to cover the difference between the fee allowance amount and the CARS assessment amount. However, Graduate Division will not cover the NRST or PDST fees. Continuing Fellows will be required to submit a copy of their renewal award letter.

3.  Training grants:
Graduate Division encourages faculty to compete for external grants that include training components for doctoral students.  At the time of proposal writing, faculty may contact the Graduate Dean’s Office to obtain a letter of support, with the possibility of a meaningful financial matching contribution from Graduate Division if the proposal is funded.

Graduate Division also provides departments with more than $20M in annual block allocations for support of graduate students; faculty should work with department chairs to request access to these monies. Graduate Division expects that top-off needs for training grant education allowance shortfalls would have a high priority for being funded from the department’s block allocation.