A stipend is money a school, employer, or organization gives you to cover living costs while you study or train
Unlike a scholarship that pays tuition, a stipend is cash meant for everyday expenses—rent, food, transportation, books. You receive it on a set schedule, usually monthly or per semester. The money comes with no requirement to repay it, but it often comes with conditions: you must maintain a certain grade, stay enrolled full-time, or work a certain number of hours in exchange.
Stipends are common in graduate programs, internships, apprenticeships, and some undergraduate programs. A graduate student in a research program might receive a stipend to live on while doing lab work. An intern at a nonprofit might get a stipend to make the unpaid internship financially possible. A nursing student might receive one from a hospital in exchange for working there after graduation.
The amount varies widely—from a few hundred dollars a month to several thousand, depending on the field, the organization, and where you live. A stipend in a major city covers less than the same amount in a rural area. A STEM graduate stipend typically exceeds one in humanities.
Key Takeaways
- A stipend is money for living expenses, not tuition, and you do not repay it.
- Most stipends require you to maintain enrollment, grades, or work hours to keep receiving them.
- Stipends come from schools, employers, government agencies, and nonprofits—each with different rules about how much and for how long.
- The amount depends on your field of study, location, and the organization funding it.
- You may owe taxes on a stipend if it exceeds what the IRS considers a may have access to educational expense.
Where stipends come from
Graduate programs in universities often fund students through stipends. A master's student in engineering or a PhD candidate in biology typically receives a monthly stipend in exchange for teaching or research work. The stipend covers living costs while the student studies and contributes to the program.
Employers offer stipends to interns and apprentices to make training positions affordable. A law firm might pay an intern a monthly stipend. A manufacturing company might stipend an apprentice learning a trade. These stipends acknowledge that the trainee is working and learning at the same time.
Government agencies and nonprofits sometimes fund stipends for students in fields they want to encourage—nursing, teaching, social work, public service. A state health department might stipend nursing students who commit to working in rural clinics after graduation. The military offers stipends to students in ROTC programs.
How stipends differ from scholarships and grants
A scholarship or grant pays your tuition and fees directly to the school. A stipend pays you cash for living expenses. You might receive both: a scholarship covering tuition and a stipend covering rent and food.
Some scholarships include a stipend as part of the package. Others do not. When you read a scholarship offer, look for what it actually covers—tuition only, or tuition plus a living allowance. The living allowance is the stipend.
Grants work the same way. A federal Pell Grant goes to tuition; a living stipend from a foundation goes to you. The two serve different purposes and come from different sources.
Conditions that come with a stipend
Most stipends require you to stay enrolled full-time. If you drop to part-time status, the stipend stops. Some require a minimum grade point average—often 2.5 or 3.0—and you lose the stipend if you fall below it.
Work-based stipends require you to work a set number of hours per week. A graduate research stipend might require 20 hours of lab work weekly. An internship stipend might require 40 hours on site. If you do not meet the hours, the stipend ends.
Some stipends come with a service obligation. A nursing stipend funded by a hospital might require you to work there for two years after graduation. A military ROTC stipend requires active duty service. If you break the obligation, you may have to repay part or all of the stipend.
Read the stipend agreement carefully before accepting. Understand what you must do to keep it and what happens if you cannot meet the conditions.
How much a stipend typically is
Graduate stipends in STEM fields range from roughly $15,000 to $35,000 per year, depending on the university and region. Humanities and social sciences typically offer less. A PhD student in computer science at a major university might receive $30,000 annually; a master's student in history might receive $12,000.
Internship stipends vary by industry and location. A tech company internship in San Francisco might pay $3,000 to $5,000 per month. A nonprofit internship in a smaller city might pay $500 to $1,500 per month. Some internships offer no stipend at all.
Apprenticeship stipends often start lower and increase as you progress. A first-year trade apprentice might receive $15,000 to $20,000 annually; by year three, $25,000 to $35,000.
These are rough ranges. The actual amount depends on the organization's budget, the cost of living in your area, and the field. Always ask what the stipend covers—some include health insurance or housing; others are cash only.
Tax implications of receiving a stipend
Whether you owe taxes on a stipend depends on what it covers and why you received it. The IRS treats stipends differently based on the circumstances.
If a stipend covers may have access to educational expenses—tuition, fees, books, required equipment—and you are a degree candidate, that portion may not be taxable. If the stipend exceeds may have access to expenses or covers living costs like rent and food, that excess is taxable income and you report it on your tax return.
A graduate research stipend is usually taxable as income, even though you are a student, because it is payment for work. An internship stipend is taxable for the same reason. A scholarship or grant stipend that covers only tuition and books may not be taxable.
Your school will send you a 1098-T form (for scholarships and grants) or a 1099-NEC or 1099-MISC form (for work-based stipends) showing what you received. Keep records of what the stipend covered so you can report it correctly. If you are unsure, ask your school's financial aid office or a tax professional.
How to find stipend opportunities
If you are considering graduate school, ask each program directly about stipend funding. Most universities list stipend amounts and conditions on their graduate admissions pages or in program materials. Contact the graduate coordinator or financial aid office to learn what is available in your field.
For internships, check the employer's website or job posting. Many internships now disclose whether they are paid and how much. If the posting does not say, email and ask. Internship databases like Idealist.org and Indeed filter by paid versus unpaid.
For apprenticeships, contact unions, trade schools, or employers directly. Most registered apprenticeships include a stipend that increases as you progress through the program.
For service-based stipends (nursing, teaching, military), search the specific agency or organization's website. The military has ROTC programs at many colleges. State health departments post nursing stipend programs. Teaching fellowships are listed on education job boards.
Frequently Asked Questions
Do I have to repay a stipend?
No, a stipend is not a loan. You do not repay the money itself. However, if the stipend comes with a service obligation—like working for an employer for a set time after graduation—and you do not fulfill it, you may have to repay part or all of the stipend. Always read the agreement before accepting.
Can I receive a stipend and a scholarship at the same time?
Yes. A scholarship typically covers tuition; a stipend covers living expenses. Many students receive both. However, some schools have rules about total aid—if your combined aid exceeds the cost of attendance, the school may reduce one or the other. Ask your financial aid office how they handle multiple aid sources.
What happens to my stipend if I take a semester off?
Most stipends stop if you are not enrolled. If you take a leave of absence or drop to part-time status, the stipend ends. Some programs allow you to pause and resume; others do not. Check your stipend agreement or ask your program coordinator before taking time off.
Is a stipend considered income for financial aid purposes?
Yes. If you fill out the FAFSA for the next year, you must report a stipend as income. This may reduce your may be able to access for need-based aid. Ask your financial aid office how they count stipends when calculating your aid package for the following year.
Can I lose a stipend for poor grades?
Yes, if your stipend agreement includes a grade requirement. Most graduate and work-based stipends require you to maintain a minimum GPA, usually 2.5 or higher. If you fall below it, the stipend may be suspended or terminated. Check your agreement for the specific requirement.