At my institution, we host several international students who stay temporarily for a semester or two.  To make sure that the student is identified properly in the system despite not having funds flow through your institution, make sure that their faculty host fills out the paperwork for them to be a "visiting student" (some institutions may have "visiting student" be the same as "visiting scholar"), which at my institution is ran through the Provost Office. I strongly recommend that the faculty host issue an offer letter for the student that states that their funding is provided by their government along with information on the duration of their time at the institution and any expectations for them to work in the lab or spend their time. The Provost Office at your institution may have an offer letter template for visiting students that makes it easy to use.  The Provost Office (or whichever office oversees administration of visiting students) should inform HR such that the student can be listed as a non-employee affiliate of the campus and issued an institutional email address if needed.

I believe that is all that is involved, but if there are further questions feel free to ask me.

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