A fellowship is an amount paid for the benefit of an individual (usually a graduate student at an educational institution) to aid in the pursuit of study or research.
To qualify as a fellowship, the payment must be a relatively disinterested, "no strings attached" educational grant with no requirement on the recipient's part to perform substantial services. A payment will qualify as a fellowship provided the University, as grantor will obtain no benefit, or only incidental benefit, as a result of the fellowship.
If the University will receive more than incidental benefit, the payments are compensation for services performed that are subject to federal income tax withholding and also Social Security and Medicare (FICA) tax withholding.
Payments to USF Students are made through Student Financial Services