A stipend is money a school, employer, or organization gives you to cover living costs while you study or train
A stipend is a fixed amount of money paid regularly — usually monthly or per semester — to help you pay for expenses while you're in school or a training program. Unlike a scholarship, which often rewards academic achievement or merit, a stipend is typically given to cover the actual cost of living: rent, food, transportation, or books. The money comes from the institution offering the program, a private employer, a government agency, or a nonprofit organization.
Stipends are common in graduate programs, apprenticeships, internships, and professional training. Some undergraduate students receive them too, particularly those in work-study positions, teaching assistantships, or research roles. The amount varies widely depending on the program, the field of study, where you live, and who is paying it.
Key Takeaways
- A stipend is regular payment for living expenses, not tuition, and is usually given by your school, an employer, or a sponsoring organization.
- Stipends differ from scholarships because they are not based on merit or need, but rather on the role you hold or the program you enter.
- Graduate assistantships, internships, apprenticeships, and some undergraduate work-study positions commonly include stipends.
- Stipend amounts depend on the program, field, location, and funding source, and can range from a few hundred dollars per month to several thousand.
- You may owe taxes on a stipend if it exceeds a certain threshold or if it is paid for services rather than as a living allowance.
How stipends differ from scholarships and grants
A scholarship typically rewards grades, test scores, athletic ability, or other achievements. A grant is usually based on financial need. A stipend, by contrast, is payment for work you do or a position you hold. If you're a teaching assistant, research assistant, or graduate fellow, the stipend is compensation for that role — you're expected to work in exchange for the money.
Some stipends are not tied to work at all. They may be given straightforward because you are enrolled in a particular program that the institution or sponsor wants to support. In those cases, the stipend functions more like a grant. The key difference is that stipends are almost always a fixed amount, not adjusted based on your grades or financial situation the way need-based aid often is.
Common sources of student stipends
Universities and colleges offer stipends through graduate assistantships, teaching positions, and research roles. A master's student working as a teaching assistant in the chemistry department, for example, might receive a monthly stipend plus tuition coverage. Doctoral candidates often receive stipends as part of their funding package.
Employers offer stipends to interns and apprentices. A law firm might pay an intern a monthly stipend; a manufacturing company might pay an apprentice a weekly amount while they train on the job. Government agencies, the military, and professional licensing boards also fund stipends for people in training programs.
Nonprofits, foundations, and private organizations sometimes sponsor stipends for students in specific fields. A healthcare nonprofit might fund stipends for nursing students; a tech company might sponsor stipends for computer science graduate students. The source determines the amount, how often you receive it, and whether there are strings attached — such as a requirement to work for the sponsor after graduation.
What expenses a stipend is meant to cover
A stipend is intended to help you live while you study. The expenses it covers typically include rent or housing, food, utilities, transportation, and sometimes books or course materials. Some stipends are large enough to cover all of these; others cover only part of your living costs and assume you have other income or savings.
The amount is usually set based on the cost of living in the area where the program takes place. A stipend for a graduate student in San Francisco will be higher than one for a student in a rural area, even if the program is identical. Some organizations publish a breakdown of what the stipend is meant to cover; others straightforward give you a lump sum and leave it to you to budget.
Tax treatment of stipends
Whether you owe taxes on a stipend depends on what it is and how it is classified. If the stipend is payment for work — such as wages for a teaching assistantship — it is taxable income and your employer will issue you a W-2 or 1099 form. You will owe federal income tax, and possibly state and local taxes.
If the stipend is a scholarship or fellowship used for tuition, fees, books, and course materials, it may not be taxable. However, if any part of it is used for room, board, or other living expenses, that portion is taxable. The organization paying the stipend should tell you how much, if any, is taxable. When you file your taxes, you will report the taxable portion as income.
Some stipends fall into a gray area. The IRS rules on scholarships and fellowships are specific: money used for may have access to education expenses (tuition, fees, books required for the course) is not taxable, but money for living expenses is. If your stipend is not clearly labeled, ask the organization for a written breakdown of what portion, if any, is taxable.
Stipends in graduate programs versus undergraduate programs
Graduate students are far more likely to receive stipends than undergraduates. Most master's and doctoral programs in fields like science, engineering, and humanities include a stipend as part of the funding package. Graduate assistantships — teaching, research, or administrative roles — almost always come with a stipend.
Undergraduate stipends are less common but do exist. Work-study positions on campus may include a stipend. Some undergraduate internships, particularly in professional fields, offer stipends. Honors programs, leadership positions, and residential assistant roles sometimes include small stipends. However, most undergraduate financial aid comes in the form of scholarships, grants, and loans rather than stipends.
How to find information about stipend amounts
If you are considering a program that offers a stipend, the program's website or admissions materials should list the amount. Graduate program pages often show the stipend alongside tuition coverage and other benefits. If the amount is not listed, contact the department or program directly — they can tell you the current stipend and whether it has changed in recent years.
For internships and apprenticeships, the job posting should state the stipend or hourly wage. If it does not, ask during the interview process. Stipend amounts can vary by year, by location, and by the specific role, so what you find for one year may not match the next.
If you are comparing programs, ask whether the stipend covers tuition or only living expenses, whether it is may provide for the full length of the program, and whether it increases over time. Some programs offer a higher stipend in later years; others keep it flat. These details matter when you are deciding between options.
Frequently Asked Questions
Is a stipend the same as a salary?
A stipend is a fixed payment for living expenses or for a role you hold, while a salary is typically hourly or annual pay for a job. Stipends are often smaller and less frequent than salaries. However, if you are paid a stipend for work — such as a teaching assistantship — it functions like a salary and is taxed the same way.
Do I have to pay back a stipend?
No. A stipend is a gift or payment for work, not a loan. You do not have to repay it. However, if the stipend comes with conditions — such as a requirement to work for the sponsor after graduation — you may face penalties if you do not fulfill those conditions.
Can I receive a stipend and a scholarship at the same time?
Yes. Many students receive both. A scholarship might cover tuition, and a stipend from a graduate assistantship might cover living expenses. However, some schools have rules about the total amount of aid you can receive, so check with your financial aid office to make sure there are no conflicts.
What happens to my stipend if I take a leave of absence?
That depends on the program and the reason for your leave. Some programs pause the stipend while you are not enrolled; others continue it. Ask your program coordinator or financial aid office before you take a leave to understand how it will affect your stipend.
Do I need to report a stipend on my FAFSA?
Stipends are not typically reported on the FAFSA (Free process for Federal Student Aid) because they are not federal aid. However, if the stipend is large enough to affect your financial situation, it may be considered income when you fill out the FAFSA the following year. Ask your financial aid office whether your specific stipend should be reported.