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<TITLE>NOT-OD-02-017: GRADUATE STUDENT COMPENSATION</TITLE>
<META NAME="description" CONTENT="NIH Funding Opportunities and Notices in the NIH Guide for Grants and Contracts: GRADUATE STUDENT COMPENSATION NOT-OD-02-017. NIH">
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<pre>GRADUATE STUDENT COMPENSATION
Release Date: December 10, 2001
NOTICE: NOT-OD-02-017
For the latest NRSA stipend levels, please visit
the NIH Training website: <a href="http://grants.nih.gov/training/nrsa.htm">http://grants.nih.gov/training/nrsa.htm</a>
<a href="http://grants.nih.gov/grants/guide/notice-files/NOT-OD-11-067.html">April 25, 2011</a> - See Notice NOT-OD-11-067 This Notice supersedes <a
href="http://grants2.nih.gov/grants/guide/notice-files/NOT-OD-10-047.html">NOT-OD-10-047</a>,
and establishes new stipend levels for fiscal year (FY) 2011 Kirschstein-NRSA
awards for undergraduate, predoctoral and postdoctoral trainees and fellows, as
shown in the table.
National Institutes of Health
INTRODUCTION
This notice establishes a new policy related to the level of
compensation for graduate students supported by funds from National
Institutes of Health (NIH) research grants and cooperative agreements.
This notice supersedes the notice that appeared in the NIH guide for
Grants and Contracts on December 2, 1998
(<a href="http://grants.nih.gov/grants/guide/notice-files/not98-168.html">http://grants.nih.gov/grants/guide/notice-files/not98-168.html</a>).
Under this new policy, the maximum amount awarded by the NIH for the
support of a graduate student supported on a research grant or a
cooperative agreement is tied to the zero level National Research
Service Award (NRSA) stipend in effect at the time the grant award is
issued. The schedule for NRSA stipends can be found at
<a href="http://grants.nih.gov/training/nrsa.htm">http://grants.nih.gov/training/nrsa.htm</a>. Consistent with cost
principles for educational institutions described in Office of
Management and Budget (OMB) Circular A-21 at section J.41.b
(<a href="https://www.whitehouse.gov/omb/circulars/a021/a021.html">http://www.whitehouse.gov/omb/circulars/a021/a021.html</a>), the
compensation of graduate students supported by research grants must be
reasonable. These operating principles associated with the
compensation of students performing necessary work on NIH funded
research projects are described in detail in the NIH Grants Policy
Statement at <a href="http://grants.nih.gov/grants/policy/nihgps_2001/part_iia_4.htm">http://grants.nih.gov/grants/policy/nihgps_2001/part_iia_4.htm</a>.
As before, the amount provided for compensation includes salary or wages,
fringe benefits, and tuition remission.
These guidelines apply to graduate students at the grantee institution
who are supported by NIH research grants and cooperative agreements and
not to individuals supported by NRSA training grants and fellowships.
NIH has separate appropriations to support research training under the
NRSA authorization at Section 487 of the Public Health Service Act.
The stipends provided to recipients of NRSA support offset the cost-of-
living during the period of training and are not considered equivalent
to salaries or other forms of compensation provided to individuals
supported on research grants. Nevertheless, the entry-level
postdoctoral NRSA stipend provides a useful benchmark for an award
amount that approximates a reasonable rate of compensation for graduate
students. Anticipated escalations in NRSA stipends (see
<a href="http://grants.nih.gov/training/nas_report/NIHResponse.htm">http://grants.nih.gov/training/nas_report/NIHResponse.htm</a>) in future
years should permit annual increases in the maximum award amount for
such individuals.
BACKGROUND
In 1994, the Department of Health and Human Services Inspector General
reported that three of the four universities reviewed where using
Federal research grant funds to compensate graduate students at rates
above amounts paid to first-year postdoctoral employees performing
comparable work (<a href="https://oig.hhs.gov/oas/reports/region1/19404002.pdf">http://oig.hhs.gov/oas/reports/region1/19404002.pdf</a>).
Since postdoctoral employees were considered to have more experience
and training than comparable graduate students in this study, the
excess compensation for students was considered unreasonable. With
encouragement from the OMB, the NIH developed guidelines to establish
the maximum award for graduate student compensation in 1995
(<a href="http://grants.nih.gov/grants/guide/notice-files/not95-141.html">http://grants.nih.gov/grants/guide/notice-files/not95-141.html</a>). The
maximum award amount was modified in 1996 and again in 1998. This
document ties the amount awarded for graduate compensation to an NRSA
stipend amount that is likely to be adjusted for increases in the cost-
of-living in future years.
OPERATING GUIDELINES
For all new and competing grant and cooperative agreement awards, the
NIH will provide reasonable amounts for graduate compensation,
consistent with the requested budget for the position(s) and up to the
currently effective NRSA zero postdoctoral stipend level. For example,
in FY2002 until a NIH budget is finalized, any competing awards issued
will use the FY2001 level of $28,260. Once FY2002 stipend levels are
established, awards will be issued using the new (yet-to-be-determined)
higher level. As in the past, no adjustments will be made to
noncompeting total cost award levels or future year commitments. NIH
staff will review the compensation requested for graduate students on
competing and cooperative agreement applications for which a detailed
budget is submitted. NIH will not request nor accept budgets for those
applications using a modular budget format solely for the purpose of
reviewing graduate student compensation.
Grantees are reminded that when submitting detailed budgets that
request support for a graduate student, actual institutional-based
compensation should be requested and information justifying the
requested compensation level should be provided. If not provided, this
information will be obtained from the institution"s business office for
any request that appears excessive. NIH institutes and centers will
review the requested compensation level and, if considered reasonable,
will award the actual amount requested, up to a maximum equal to the
NRSA zero level postdoctoral stipend. Revised budgets submitted solely
to adjust requested levels for graduate students will not be accepted.
Institutions may continue to rebudget funds to charge more than the
awarded amount provided that OMB cost principles requiring reasonable
compensation are observed. In general, graduate student compensation
will not be considered reasonable if in excess of the amount paid to a
first-year postdoctoral scientist at the same institution performing
comparable work.
INQUIRIES
These guidelines are effective immediately with new and competing
awards issued on or after the date of this announcement. No
adjustments will be made to any competing FY2002 awards already issued.
However, grantees may rebudget to accommodate the higher compensation
level. Questions should be referred to the grants management
specialist identified on the notice of grant award.
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