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What new NURSE Corps scholars need to know about stipend timing, invoices and taxes
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Summary
Program staff told scholars that tuition is paid to schools after itemized invoices and ISVs are submitted, stipends and ORC are taxable (federal and FICA withheld), and typical stipend payments post between the 20th–30th of each month; first payments expected by October but no later than Nov. 15.
Program staff and analysts used the webinar Q&A to clarify payment timing, what the program pays, and how tax withholding works.
Staff stressed that schools must submit itemized tuition invoices for each term before the Nurse Corps scholarship program will pay tuition to the institution. "We pay your school after your school submit an itemized tuition invoice for each term to the Nurse Corps scholarship program," Karen Bourgeois said. Staff repeated that participants are responsible for managing communication between their school finance office and assigned analyst so invoices and required documents are submitted on time.
Speakers explained Other Reasonable Costs (ORC) — which cover books, uniforms and supplies — are typically paid once a year and are usually disbursed together with stipend payments. A participant in the chat asked whether ORC is paid directly to participants with stipends; staff replied "yes" and said those payments are typically posted around the end of the month and are not considered late until the 15th of the following month.
Miranda, a Nurse Corps analyst, addressed questions about student loans taken before award notification. She said the program will pay eligible tuition and fees for the specified semester(s) provided (a) the student was enrolled during the covered period and (b) the school submits an itemized invoice. "The Nurse Corps scholarship program will pay the full tuition and eligible fees for the fall 2025 semester and/or summer 2025 semester, providing that you were enrolled in the summer 2025 semester through 07/01/2025," Miranda said, and added that payments are made directly to the school, not to students.
On taxes, staff stated that the entire scholarship award (tuition, stipend, ORC) is taxable. Program staff confirmed federal income tax and FICA are withheld from payments; they cited applying a 7.65% FICA deduction. Participants will receive a W‑2 reflecting the full award; electronic delivery is optional with a 12/31/2025 opt‑in deadline.
Finally, staff described a typical invoice processing timeline: once payment accounts are set up in the program’s payment system, invoices are processed (staff estimated about one week for processing and another week for payment), making the normal turnaround roughly two weeks.
