Chapter 15: Student Payments and Other Financial Assistance
15.1 Purpose
To provide guidance on the manner and extent to which students of The University of Texas at El Paso (University) may be recipients of funds awarded by the University or because of their enrollment at the University, and whether said funds meet the definition of Other Financial Assistance (OFA) and how they may impact eligibility for financial aid.
15.2 Introduction
Funds received by a University student, or a parent on behalf of the student, because of postsecondary enrollment, are considered OFA as described in Title 34 of the Code of Federal Regulations, §685.102(b). This is true whether the assistance is awarded by the University or by an external individual or organization, whether the assistance is taxed or untaxed, and regardless of the way the funds are provided, be it cash or any item of any financial value that is tracked on a per-student basis.
OFA covers the student’s Cost of Attendance (COA) and reduces unmet financial need, which may impact the student’s eligibility for federal, state, institutional, or private financial aid or scholarships. It is the policy of the University to adhere to all federal and state regulations regarding eligibility and awarding of student financial aid, and to maintain an equitable distribution of institutionally-controlled funds by observing COA limits as determined by the Office of Financial Aid and Scholarships.
15.3 Policy
All funding provided to students by the University or because of enrollment at the University, including all grants, scholarships, and need-based employment (most commonly work-study employment), with few exceptions (listed below), are considered OFA. The determination of whether a student payment constitutes OFA must be made by the Office of Financial Aid and Scholarships.
OFA reduces the student’s unmet financial need, limiting the student’s eligibility for need-based aid, such as federal, state, and institutional grants. OFA that is not need-based may exceed financial need but still reduces unmet need and thus may impact a student’s other awards.
External scholarships and other awards that are funded by external sources and for which the students are selected by an entity external to the University, or for which the award amount is mandated or established by the external entity, may exceed the student’s COA, as the University has no direct involvement other than facilitating payment of the student’s direct costs. However, because these awards meet the definition of OFA, they require the reduction, up to the removal, of other aid awarded before they can exceed financial need and/or COA. For the student to receive funding in excess of COA, the external scholarship must first replace all other aid.
Scholarships and other student awards funded institutionally, or for which the University or the University employees determine the award amount, must not exceed the student’s COA when combined with all OFA awarded to the student.
OFA awarded to a student during a period of nonattendance must be recorded as a resource for the student’s upcoming period of enrollment.
To ensure compliance with these policies, any payments to University students not covered by any of the exceptions listed in this policy, must be made through the Office of Financial Aid and Scholarships. Any grant proposals that include payments to students must include language approved by the Office of Financial Aid and Scholarships that refers to this policy, the definition of Other Financial Assistance, and its potential impact to the eligibility of students for financial aid and scholarships. Compliance with this requirement is the responsibility of the Office of Research Administration.
15.4 Departmental Student Financial Awards
The Office of Financial Aid and Scholarships is responsible for the administration of named scholarships, government student aid programs, and institutional financial aid programs. Departments with signatory authority over funds meant for student aid must coordinate with the Office of Financial Aid and Scholarships to establish an application and selection process that is compliant with all applicable policies and regulations.
Departmental Student Financial Awards (DSFA), previously known as Student Notices of Award, are ad hoc payments provided to University students by a college, department, or unit, and paid with institutionally-controlled funds, which meet the definition of OFA. The DSFA process allows departments to provide OFA funds to students in compliance with regulations when a fund-specific process does not exist and is not necessary or practical, as determined by the Office of Financial Aid and Scholarships.
15.5 Exceptions
Funds provided to University students are considered OFA, with the following exceptions:
- Wages from non-need-based employment (not federal, state, nor institutional work-study programs) are not considered OFA. Payments of wages are processed through the Payroll Office.
- Payments received by student athletes under NIL contracts are not considered OFA.
- Emergency financial assistance to cover an unexpected expense not already included in the student’s COA, is not considered OFA. UTEP defines Emergency Assistance as funding to cover non-recurring expenses that must be paid immediately for the student to continue their education and that are either unexpected, unusually high due to unforeseen circumstances, or place the student’s health or safety at risk. These funds may be provided by the Divisions of Business Affairs, Academic Affairs, Student Affairs, or Enrollment Management. The request for emergency aid and the expense being covered must be documented by the department providing the funds according to applicable processes and procedures.
- University sponsored travel and participation in educational activities are not considered OFA, as long as the request for funds documents the expenses being covered with quotes, applicable per diem rates, or invoices, and payments do not exceed the documented amounts. This must be in accordance with the University Travel policy.
Any student payments that do not meet the definition of one of the exceptions above must be presumed to be OFA until otherwise determined by the Office of Financial Aid and Scholarships.
15.6 Definitions
Cost of Attendance (COA): of a student, also known as budget or COA, is an estimate of that student’s educational expenses for the period of enrollment, assigned based on the student’s program of study, enrollment level, eligibility for in-state tuition, housing arrangements, and other characteristics, and calculated based on the typical costs of similar students as determined by the policies and procedures of the Office of Financial Aid and Scholarships in accordance with federal guidelines. The COA includes allowances for tuition and fees, books and supplies, and reasonable accommodations for housing, food, transportation, and personal miscellaneous expenses. The Office of Financial Aid and Scholarships also establishes Professional Judgment procedures for students to appeal their assigned COA by documenting a special circumstance within the guidelines of the US Department of Education.
Emergency Assistance: Funding to cover non-recurring expenses that must be paid immediately for the student to continue their education and that are either unexpected, unusually high due to unforeseen circumstances, or place the student’s health or safety at risk.
Financial Need: a student’s Gross Financial Need is determined by subtracting SAI from the COA. After subtracting DSFA, any remaining amount is considered the student’s Unmet Financial Need. For the purpose of calculating Financial Need, negative SAI values are replaced by zero.
Other Financial Assistance (OFA): previously known as Estimated Financial Assistance, OFA includes any educational benefits paid because of enrollment in postsecondary education. Such benefits include but are not limited to:
- Pell Grants.
- Direct Subsidized Loans (gross amount, including origination fees).
- Direct Unsubsidized and PLUS Loans (gross amount, including origination fees), except amounts used to replace the Student Aid Index (SAI).
- Long-term need-based loans, including loans made by the school (but not short-term emergency loans).
- Financial aid grants, including the Federal Supplemental Educational Opportunity Grant FSEOG, state grants, and institutional grants.
- Grants, scholarships, stipends, participant support, tuition support, tuition remissions, and similar awards paid from any source, including federal research funding.
- Prizes, rewards, and incentives provided for any reason, by the University or any third-party, when contingent on enrollment or status as the University student.
- Fellowships or assistantships, except non-need-based employment portions of such awards.
- Scholarships, including athletic scholarships and scholarships that require future employment but are given in the current year.
- Employer reimbursement of employee’s tuition.
- Waivers and exemptions of tuition and fees.
- Income from insurance programs that pay for the student’s education.
- Net income from need-based employment such as federal, state, and institutional work-study programs.
- AmeriCorps awards or post-service benefits (except when determining eligibility for Direct Subsidized Loans).
- McNair Postbaccalaureate Achievement Program.
- TEACH Grants, except amounts used to replace the SAI.
- Private educational loans, except amounts used to replace SAI.
- Funds received through income share agreements that are used to finance a student’s expenses for postsecondary education.
Examples of awards that are not considered OFA include:
- Wages from non-need-based employment.
- Payments received by student athletes under NIL contracts.
- Veteran educational benefits.
- The amount of any Direct Subsidized Loan that is equal to or less than the amount of the student’s AmeriCorps national service education awards or post-service benefits paid for the student’s COA.
- AmeriCorps national service education awards or post-service benefits.
- The amounts of any TEACH Grants, Direct Unsubsidized Loans, Direct PLUS Loans, and non-federal non-need-based loans, including private, state-sponsored, and institutional loans, that are used to replace the SAI (amounts that exceed the SAI must be treated as OFA).
- Foster care benefits received under Title IV, Part E, of the Social Security Act, including education and training vouchers and room and board that students receive as extended foster care benefits under Section 477 of the Social Security Act.
- Emergency financial assistance provided to a student for expenses that are associated with an allowable COA component and not otherwise included in the student’s COA.
Student Aid Index (SAI): is a value determined by the Needs Analysis most often associated with the Free Application for Federal Student Aid, and which represents the expected financial contribution from the student and their family toward the COA for purposes of determining Financial Need and eligibility for student financial aid.
15.7 Dates Approved or Updated
December 19, 2025
