A Florida State spokesman confirmed to ESPN.com on Monday that the university is paying for the reigning Heisman Trophy winner's loss of value policy with the school's Student Assistant Fund.
The spokesman did not provide a specific number as to how much the university is paying. The website Tomahawk Nation, which first reported the news, said Florida State will pay a premium in the $55,000 to $60,000 range.
Sources told ESPN.com's Darren Rovell in July that the $10 million policy is split equally between a permanent disability policy, which Winston would collect if he were injured and could never play again, and a loss of value policy, which he would collect at least a percentage of if he fell in the draft. Winston is projected to be a high first-round selection -- potentially No. 1 -- in the 2015 NFL draft if he declares following his redshirt sophomore season.
The NCAA's website states the Student Assistant Fund "shall be used to assist student-athletes in meeting financial needs that arise in conjunction with participation in intercollegiate athletics, enrollment in an academic curriculum or that recognize academic achievement."
The website adds the responsibility of the oversight and administration of funds, including interpretations of how the fund can be used, lies with the conferences.
Programs have rarely used the fund to help pay loss of value insurance policies, but a Fox Sports report documented how Texas A&M recently paid for the policy of star offensive lineman Cedric Ogbuehi, which helped convince Ogbuehi to forgo the 2014 NFL draft and return to Texas A&M.
The Florida State spokesman said the university's compliance department has been aware of the provision for quite some time.
Winston, who threw an ACC-record 40 touchdowns the past season, is eligible for the 2015 NFL draft. He was noncommittal at the ACC Kickoff earlier this month about whether he would declare following the 2014 season, but his father, Antonor, told AL.com in June that the plan is for Winston to play for Florida State in 2015. Florida State's paying for part of Winston's policy could, theoretically, help the odds that Winston returns for a fourth year.