Box 9, Folder 1, Document 28

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ME me


Tuesday, May 13, 1969 o- Washington, D. es “


Department of Health, Education, %
and Welfare ~- Peg i

Office of Education is a



Chapter I—Office of Education, De-
partment of Health, Education, and


Chapter I of Title 45 of the Code of
Federal Regulations is hereby amended
by adding a new part, Part 175.

Federal financial assistance made
available pursuant to the regulations set
forth below is subject to the regulations
in 45 CFR Part 80, issued by the Secre-
tary of Health, Education, and Weliare,
and approved by the President to effec-
tuate the provisions of section 601 of the
Civil Rights Act of 1964 (Public Law

_ 88-352).

Purpose and objectives.


Allotment of Federal funds to States.

Program eligibility. —

Eligibility and selection of student
participants. i
175.6 Limitations on the number of hours

. of employment.

175.7 Use of funds.

175.8 lLimitations‘on Federal share of stu-
dent compensation.

Minimum wage rate. :

Nature and source of institutional
share of student compensation.

Maintenance of level of expenditures.

Coordination of student financial
aid programs.

Institutional agreement and appli-
cation for funds.

Criteria for approval of applications,

Payment and reallocation of grant





175.16 procedures, records, and
reports. ¢
Preceding provisions not exhaustive
of jurisdiction of the Commis-


AurHoriry:! The provisions of this Part 175
issued under 82 Stat. 1014, 20 U.S.C. 1011,


Public Law 89-329, Higher Education Act of

1965, as amended, Title IV, Part C.

§ 175.1 Purpose and objectives.

(a) The purpose of the College Work-
Study Program is to stimulate and
promote the part-time employment of
students, particularly those from low-

_ income families, who are in need of the
earnings from such employment in order
to pursue courses of study at eligible

(b) This purpose will be promoted
through the development of student
employment programs designed to meet
the following objectives:

(1) Encourage eligible institutions to
expand their efforts to enroll needy stu-
dents, particularly those from low-
income families;

(2) Increase the proportion of eligible
high school graduates who continue
their education in eligible institutions;

(3) Provide financial aid for eligible
students through combining the earn-
ings from part-time employment with
other forms of financial assistance to

enable students to meet their educa-
tional expenses without the necessity of



incurring an unduly heavy burden of
indebtedness; and :

(4) Broaden the range of worthwhile
job opportunities for qualified students
in employment for the institution itself
or for public or private nonprofit organi-
zations, especially those engaged in
health, education, welfare, and related
public service activities.

§ 175.2 Definitions.

(a) “Act” means Title IV, Part C of
the Higher Education Act of 1965, as
amended (Public Law 89-329, 79 Stat.
1219). e

(b) “Administrative expenses” means
those direct costs incurred by an eligible
institution which are necessary for the
proper ana efficient administration of a
Work-Study Program. conducted pur-
suant to an institutional agreement, but
only to the extent that the items of cost
are attributable to that portion of such
program in which students are working
for public or private nonprofit organiza-
tions other than the institution itself,
ineluding such items as salaries of staff,
communications, supplies and printing,
and travel; but exclusive of overhead,
other indirect costs, and equipment.

(c) “Area vocational school” means;

(1) A specialized high school used
exclusively or principally for the provi-
sion of vocational education to persons
who are available for full-time study in
preparation for entering the labor mar-
ket, or

(2) The department of a high school
exclusively or principally used for pro-
viding vocational education in no less
than five different occupational fields to
persons who are available for full-time
study in preparation for entering the
labor market, or

(3) A technical or vocational school
used exclusively or principally for the
provision. of vocational education to
persons who have completed or left high
school and who are available for full-
time study in preparation for entering
the labor market, or

(4) The department or division of a
junior college or community college or
university which provides vocational edu-
cation in no less than five different oc-
cupational fields, under the supervision
of the State board, leading to immediate
employment but not leading to a bac-
calaureate degree,

if it is available to all residents of the
State or an area of the State designated
and approved by the State Board, and
if, in the case of a school, department,
or division described in subparagraph
(3) or (4) of this paragraph, it admits
as regular students both persons who
have completed high school and persons
who have left high school. The term
“State Board” as used in this definition
means the State board for vocational
education designated or created pursuant
to section 5 of the Smith-Hughes Act
(that is the Act approved Feb. 23, 1917
(39 Stat. 929, ch, 114; 20 U.S.C. 11-15,
16-28)) to secure to the State the bene-
fits of that Act.

(d) “Commissioner” means the U.S.
Commissioner of Education or his

(e). “Cooperative education” means a
full-time course of study in an institu-
tion, under which all students in the
institution, or a major subdivision
thereof, may alternate periods of full-
time attendance with periods of related

full-time employment, upon the comple- ~—

tion of which course of study a degree
or other certificate is normally awarded.

(f) “Eligible institution” or “institu-
tion” means an institution of higher.
education or an area vocational school
(as herein defined) , except that no insti-
tution of the United States shall be
eligible to enter into an institutional
agreement with the Commissioner.

(g) “Family” means parents or other
individuals (except foster parents) who
stand in loco parentis.

(h) “Fiscal year” means the Federal
fiscal year commencing on the first day
of July and ending on the 30th day of
the following June.

(i) “Full-time attendance’ means
compliance by a full-time student with
the policies and regulations regarding
attendance in effect at the institution in
which he is enrolled.

(j) “Full-time student” means a stu-
dent who is pursuing any combination
of courses, research, or special] studies
(whether or not for credit) which, ac-
cording to the standards and practices
of the institution in which the student
is enrolled, is considered full-time study.

(k) “Good standing” means the eligi-
bility of a student to continue in full-
time attendance in accordance with the
standards and practices of the institu-
tion in which he is enrolled.

() “Institution of higher education”
means an educational institution in any
State which meets the requirements of
section 435(b) of the Act. The term
“educational institution” limits the scope
of this definition to establishments where
teaching is conducted and which have
an identity of their own.

(m) “Institutional agreement” means
the written agreement between an eligi-
ble institution and the Commissioner,
which provides for the conduct of a
Work-Study Program and which meeis
the conditions of section 444 of the Act.

() “Low-income family” means a
family whose basic needs exceed its
means to satisfy them primarily because
its annual income is less than the mini-
mum amount determined, according to
standards promulgated by the Commis-
sioner from time to time, to be necessary
to maintain a decent standard of living.

(o) “National of the United States”
means (1) a citizen of the United States,
or (2) a person who though not a citizen
of the United States owes permanent al-
legiance to the United States. (8. U.S.C.A.
1101 (a) (22)).

(p) “Part-time employment’ means
hourly employment of a student under
the Work-Study Program in accordance
with the limits established in § 175.6.
Work performed as a prereduisite to a
degree or a certificate will not be con-
sidered employment except for not more


than 120 days of work performed during
any full-time work period of an orga-
nized cooperative education program.

(q) “Period of non-regular enroll-
ment” means a summer vacation period
or an equivalent period such as the full-
time work period of an organized cooper-
ative education program during which
the student is enrolled in one or more

(ry) “Period of regular enrollment”
means any period of time during which
a particular student is normally expected
by his institution to be pursuing a course
of full-time studies, according to the
usual standards and practices of the

(s) “Private nonprofit” (as applied to
any school, institution, organization or
agency) means a school, institution, or-
ganization or agency, no part of whose
earnings inures or lawfuly may inure
directly or indirectly to the benefit of
any private member, shareholder, or
other individual.

(t) “Public organization” includes a
school, agency, organization or institu-
tion of the United States.

(u) “State” means, in addition to the
several States of the Union, the District
of Columbia, the Commonwealth of
Puerto Rico, Guam, American Samoa,

the Trust Territory of the Pacific Is-

lands, and the Virgin Islands.
§ 175.3 Allotment of Federal funds to

(a) Initial allotments: From sums ap-
propriated to carry out this part for a
fiscal year, not to oe 2 per centum
shall be allotted by the Commissioner
among Puerto Rico, Guam, American
Samoa, the Trust Territory of the Pacific
Islands, and the Virgin Islands aeccord-
ing to their respective needs for assist-
ance under this part. In addition to such
sum, an amount shall be reserved to pro-
vide work-study assistance to students
who reside in, but attend eligible institu-
tions outside of, American Samoa or the
Trust Territory of the Pacifie Islands.
The amount so reserved shall be allotted
to eligible institutions and shall be avail-
able only for the purpose of providing
work-study assistance to such students.
The remainder of the sums shall be
allotted among the remaining States as
provided in paragraph (b) of this sec-
tion. For the purposes of computing this
allotment, the Commissioner will use in-
formation for the most recent year for
ta satisfactory data are available to

(b) Of the sums being allotted under
this paragraph: .

(1) One-third shall be allotted by the

Commissioner among the States so that
the allotment to each State under this
clause will be an amount which bears
the same ratio to such one-third as the
number of persons enrolled on a full-
time basis in institutions of higher edu-
cation in such State bears to the total
number of persons enrolled on a full-
time basis in institutions of higher edu-
cation in all the States;

(2) One-third shall be allotted by the
Commissioner among the States so that


the allotment to each State under this
clause will be an amount which bears
the same ratio to such one-third as the
number of high school graduates (as de-
fined in section 103(d) (3) of the Higher
Education Facilities Act of 1963) of such
State bears to the total number of such
high school graduates of all the States;

(3) One-third shall be allotted by the
Commissioner among the States so that
the allotment to each State under this
clause will be an amount which bears
the same ratio to such one-third as the
number of related children under 18
years of age living in families with an-
nual incomes of less than $3,000 in such
State bears to the number of related chil-
dren under 18 years of age living in fami-
lies with annual incomes of less than
$3,000 in all the States.

(c) Reallotment: The amount of any
State’s allotment which has not been
granted to an institution at the end of
the fiscal year for which appropriated
shall be reallotted by the Commissioner
in such a manner as he determines will
best assist in achieving the purposes of
the Act. Amounts reallotted under this
paragraph shall be available for making
grants until the close of the fiscal year
next succeeding the fiscal year for which

§ 175.4 Program eligibility.

(a) General. Work-Study Programs
operated under an institutional agree-
ment for the part-time employment of
students may involve work for the insti-
tution itself or work for a public or pri-
vate nonprofit organization in any State.

(1) Such programs:

(i) Must not result in the displace-
ment of employed workers or impair ex-
isting contracts for services;

(ii) Must not involve the construction,
operation, or maintenance of so much of
any facility as is used or is to be used
for sectarian instruction or as a place
of religious worship.

(2) The work provided under such pro-
grams (i) must not involve any partisan

_ or nonpartisan political activity associ-

ated with a candidate, or contending
faction or group, in an election for public
or party office, and (ii) must be governed
by such conditions of employment, in-
cluding compensation, as will be appro-
priate and reasonable in light of such
factors as type of work performed, geo-
graphical region, proficiency of the em-
ployee, and any applicable Federal, State,
or local legislation. ?

tb) Work for the institution itself. 'To
be eligible for Federal financial partici-
pation, work for the institution itself (in-
eluding any nonprofit entity which is
under the control of the governing board
of the institution) must result in an ex-
pansion or broadening of the institution’s
student employment programs,

(c) Work for a public or private non-
profit organization. To be eligible for
Federal financial participation, work for
a, public or private nonprofit organization
other than the institution must (1) be in
the public interest (devoted to the gen-
eral, national or community welfare


rather than that of a particular interest
or group), and (2) be evidenced by a
written agreement containing the condi-
tions of such work between the institution
and the organization. The institution is
responsible for ensuring that any ar-
rangements be with a reliable organiza-
tion with professional direction and staff,
and that the work performed by each stu-
dent will be properly supervised, and
consistent with the purposes of the Act.

(d) Work in the public interest. In no
event shall work be considered to be in
the public interest where (1) it is work
for which the political support or affilia-
tion of the student is a prerequisite or
consideration for employment, (2) it is
work to be performed for an elected offi-
cial other than as part of the regular ad-
ministration of Federal, State or local
government or (3) it is work which is
primarily for the benefit of the members
of a limited membership organization
(such as a credit union, fraternal order,
or @ cooperative) , rather than the public.

§ 175.5 Eligibility and selection of stu-
dent participants.

(a) Eligibility. A student is eligible for
part-time employment under the Work-
Study Program only during periods in
which he meets all of the following

(1) Is a national of the United States,
or is in the United States for other than
a temporary purpose and intends to be-
come a permanent resident thereof, or
is a permanent resident of the Trust
Territory of the Pacific Islands;

(2) Is in need of the earnings from
such employment in order to pursue a
course of study at the institution;

(3) Is capable, in the opinion of the
institution, of maintaining good stand-
ing in such course of study while em-
ployed under this program; and

(4) Has been accepted for enrollment
as a full-time student at the institution
or, in the case of a student already en-
rolled in and attending the institution,
is in good standing and in full-time at-
tendance there, either as an undergradu-
ate, graduate or professional student.

(b) Eligibility of students attending
area \vocational schools. A student en-
Tolled in an area vocational school is
eligible for employment under the Col-
lege Work-Study Program only if he
meets the following conditions in addi-
tion to the provisions described in para-
graph (a) of this section:

(1) Has a certificate of graduation
from a school providing secondary edu-
cation or the recognized equivalent of
such a certificate, and

(2) Is pursuing a program of educa-
tion or training which requires at least
6 months to complete and is designed
to prepare the student for gainful em-
ployment in a recognized occupation. —

(ce) Determination of need. In deter-
mining whether, and to what extent, a
student is in need of the earnings from
employment, the institution shall, at
least annually, (1) determine what in-
come, assets, and other resources (in-
cluding other forms of aid) are avail-
able to the student for the time period



under consideration; (2) calculate ac-
cording to standards published from time
to time by the Commissioner what por-
tion of the income, assets, and resources
of the student’s family may reasonably
be expected to be made available to the
student; and (3) determine the cost
reasonably necessary-for the student’s
attendance at the institution, including
any special needs and obligations which
directly affect the student’s financial
ability to attend the institution on a
full-time basis. A student shall be con-
sidered to be in need to the extent that
such costs of attendance exceed the sum
of the amounts determined to be avail-
able to the student and the amounts, if
any, which may reasonably be expected
to be made available to him by his family.

(d) Selection of students. In the selec-
tion of students for employment under
the Work-Study Program, an institution
shall give preference to students from
low-income families.

(e) Availability of student employ-
ment. Each institution shall make em-
ployment under the Work-Study Pro-
gram, or equivalent employment offered
or arranged for by the institution, rea-
sonably available (to the extent of avail-
able funds) to all eligible students in the
institution in need thereof.

; (f) Record of approval or disapproval.

Each institution shall maintain records
which refiect the approval or disapproval
of all or part of each student’s applica-
tion for employment under the program
and which identify the institutional of-
ficer who made each such determination.

§ 175.6 Limitations on the number of
hours of employment.

(a) During periods of regular enroll-
ment, when classes in which a student
is enrolled are in session, he shall be
limited to working no more than an aver-
age of 15 hours per week under the pro-
gram, averaged over the semester or
other time period on the basis of which
the institution in which he is enrolled
awards academic credits. Work per-
formed during any week when the stu-
dent is on vacation shall not exceed 40
hours and shall not be counted as con-
tributing toward the average of 15 hours
per week established in the preceding

(b) During periods of nonregular en-
rollment, when classes in which a stu-
dent is enrolled are in session he may be
employed under the program for as many
as 40 hours per week or such lesser num-
ber of hours per week as the institution
may determine in accordance with its
own standards and practices and con-
sidering (1) the extent of the student’s
financial need and (2) the harm or po-
tential harm of a particular combina-
tion of hours of work and hours of study
on a given student’s health or academic

(ec) During periods not covered under
paragraphs (a) and (b) of this section,
a student may work up to 40 hours per
week under the program.

§ 175.7 Use of funds.

(a) Federal funds made available on
the basis of an approved application


submitted pursuant to this part may be
used only (1) to pay the Federal share
of compensation to eligible students em-
ployed in eligible Work-Study Programs,
and (2) to meet administrative expenses,
as defined in § 175.2(b). The amount for
such administrative expenses may not
exceed 5 percent of that portion of the
Federal payments used for compensation
of students in work for public or private
nonprofit organizations other than the
institution itself.

(b) Interest, if any, earned on Fed-
eral funds shall be remitted to the Com-
missioner in accordance with instructions
issued by him.

§ 175.8. Limitations on Federal share of
student compensation.

(a) The Federal share of the com-
pensation of students employed in any
Work-Study Program under an institu-
tional agreement shall not exceed 80
percent of such compensation for part-
time employment, except that in unusual
cases a Federal share in excess of 80
percent may be approved by the Com-
missioner, but only and to the extent

that he determines, pursuant to such ob- -

jective criteria as may be established in
regulations, that a Federal share in ex-
cess of 80 percent is required to achieve
the purposes of this part.

(b) The Federal share of compensa-
tion for part-time employment shall be
calculated on the basis of the hourly rate
paid the student for actual time on the
job but such calculation shall not include
any compensation paid which is in ex-
cess of such maximum hourly wage rate
as may from time to time be set by the
Commissioner, or any costs of the em-
ployer’s contribution to Social Security,
workmen’s compensation, retirement, or
any other welfare or insurance programs
which may be paid by the employer on
account of a student employed ater the
Work-Study Program,

§ 175.9 Minimum wage rate.

The minimum rate of compensation
for a student employed under the Work-

- Study Program shall be

(a) $1.15 an hour for work performed
through January 31, 1969;

(b) $1.30 an hour for work performed
from February 1, 1969, through Janu-
ary 31, 1970;

(ec) $1.45 an hour for work performed
from February 1, 1970, through Janu-
ary 31,1971; and

(d) $1.60 an hour for work performed

(e) Or such higher minimum wage as
may be required under any applicable
Federal, State, or local legislation; ex-
cept that the Commissioner may approve
a lower rate of compensation in cases
(1) where a lower minimum wage for
such employees has been established by
the Secretary of Labor, under the provi-
sions of the Fair Labor Standards Act,
or (2) where exceptional circumstances
warrant a lower rate and where the ap-
proval of a lower rate is not precluded
by law and is consistent with and pro-
motive of the purposes of this part,

§ 175.10 Nature and source of institu-
tional share of student compensation.

(a) An institution may use any source
available to it to pay its share of the
compensation paid to students employed
under the Work-Study Program.

(b) No institution shall solicit or
permit any public or private nonprofit
organization with which it has an ar-
rangement pursuant to §175.4(c) to
solicit from a student or any other per-
son any fee, commission, or compensa-
tion of any kind, or the granting of a gift
or gratuity of any kind, as a considera-
tion or a prerequisite for the employ-
ment of any particular student under the

§ 175.11 Maintenance of level of ex-

In each fiscal year during which the
institutional agreement remains in
effect, the institution shall expend (from
sources other than payments of Federal
grants under this part) for the employ-
ment of its students (whether or not in
employment eligible for assistance under
this part) an amount that is not less
than the institution’s average annual ex-
penditures for such employment during
the three fiscal years preceding the fiscal
year for which the institutional agree-
ment is in effect.

§ 175.12 Coordination of student finan-
cial aid programs.

In order to carry out the purpose of
the Work-Study Program, the institu-
tion shall provide for the coordination
of this program with other programs of
student financial aid, including the Na-
tional Defense Student Loan and Edu-
cational Opportunity Grants Programs
where the institution also participates
in such programs. Responsibility for the
general conduct of the operation of the
Work-Study Program shall be assigned
to an institutional official who has other
student financial aid responsibility.

§ 175.13 Institutional agreement and ap-
plication for funds,

(a) Applications for Federal funds
under this part shall be approved only if
there is in.effect an institutional agree-
ment. Such agreement shall be executed
by an official of the institution who is
legally authorized to commit the institu-

(b) Applications for Federal funds
must be submitted to the Commissioner
by an authorized official ofthe institu-
tion in such form and at such time as
the Commissioner may prescribe,

§ 175.14 Criteria for approval of insti-
tutional applications.

In order to achieve equitable distribu-
tion of assistance as required by section
446 of the Act, institutional applications
for the allocation of funds under this
program shall be reviewed and approved,
in whole or in part, on the basis of, but
not limited to, the following criteria:

(a) Whether the institution employs
under the program a large proportion
of students from low-income families in
relation to the total number of needy
students employed under the program;


(b) Whether provision has been made
for effective administration of the pro-
gram, including effective coordination
with -institutional and other Federal
programs of student financial aid;

(c} Whether public and private non-
profit organizations, especially those en-
gaged in health, education, welfare, and
related public service activities have
been included;

(d) Whether the institution has dem-
onstrated a strong commitment to enroll
students from low-income families, as
evidenced by (1) specialized recruitment
and admission, such as that provided
through the programs of Talent Search
or Upward Bound, (2) remedial instruc-
tion, (3) specialized counseling, and (4)
any other relevant factors;

(e) The anticipated number of stu-
dents to be employed under this pro-
gram as compared to the institution’s
anticipated enrollment; :

(f) The anticipated average compen-
sation of Work-Study students in rela-
tion to the institution’s average educa-
tional costs;

(g) The institution’s utilization of
Work-Study Program funds, if any, allo-
cated in previous years; and

(h) The institution’s total request for
Federal student financial aid funds (in-
eluding Educational Opportunity Grants
and National Defense Student Loans)
in relation to the average cost of educa-
tion at the institution and the institu-
tion’s anticipated enrollment.

§ 175.15 Payment and reallocation of
grant funds.

(a) Payment of funds. Funds will be
made available in advance on the basis
of substantiated need and periodic fiscal
reports submitted by the institution.

(b) Reallocation of unused Federal
funds. Any funds which are available to
an institution but not used, or which the
institution agrees will not be used, by the
end of the period for which such funds
were made available shall, in the discre-
tion of the Commissioner, either remain


available for use by the institution dur-
ing a subsequent grant period or be made
available for use by other eligible

(c) No waiver. Neither approval of any
application nor any payment of funds to
an institution shall be deemed to waive
the right or duty of the Commissioner to
withhold funds by reason of failure of
the institution to observe, before or after
such administrative action, any Federal

§ 175.16 Fiscal procedures, records, and

(a) Fiscal procedures. (1) The insti-
tution shall administer the Work-Study
Program in such a manner as to provide
for an adequate system of internal con-
trols. Wherever practical, the various ad-
ministrative responsibilities shall be di-
vided so as to prevent the handling of
all aspects of the program by a single

(2) If a fiscal agent is utilized by the

‘institution, its function must be limited

solely to the performance of ministerial
acts. The responsibilities of the institu-
tion to make determinations relative to
the eligibility of students for employ-
ment under the program cannot be

(3) Payments to students shall be
made at least once a month. The insti-
tution is responsible for ensuring that
students are paid the full amount of
wages earned under the program,
whether the work is for the institution
itself or for a public or private non-
profit organization.

(b) Records. The institution shall
maintain, on a current basis, adequate
records which reflect all transactions
with respect to the program, and shall
establish and maintain such general led-
ger control accounts and related subsid-
lary accounts as are prescribed by the
Commissioner. Such records shall:

(1) Meet at least the minimum stand-
ards prescribed by the Commissioner as
set forth in the most recent officia] Col-


lege Work-Study Manual and other of-
ficial guidelines that may be issued from
time to time;

(2) Be maintained in such a manner
as to separately identify all program
transactions from other institutional
funds and activities; and

(3) Be maintained in such a manner
as to be readily auditable. All records
pertaining to activity during a given fis-
cal year, including applications of stu-
dents for employment under the Work-
Study Program during that fiscal year,
shall be retained for a period of 5 years
following the end of the fiscal year, or
until audited by a representative of the
Commissioner, whichever is earlier. Rec-
ords involved in any claim or expendi-
ture questioned by the Commissioner, or
on audit, shall be retained until neces-
sary adjustments have been reviewed
and approved by the Commissioner.

(c) Reports. Institutions shall submit
such reports and information as the
Commissioner may reasonably require in
connection with the administration of
the Work-Study Program and shall com-
ply with such procedures as he may find
necessary to ensure the correctness and
verification of such reports.

§ 175.17 Preceding provisions not ex-
haustive of jurisdiction of the Com-

No provision of this part now or here-
after promulgated shall be deemed ex-
haustive of the jurisdiction of the
Commissioner under the Act. The pro-
visions of this part may be modified or
further regulations may be issued here-
after as circumstances may warrant.

Dated: April 10, 1969.

U.S. Commissioner of Education, ”

Approved: May 7, 1969.

RosBERT H. FiIncH,
Secretary of Health,
Education, and Welfare.

[F.R. Doc. 69-5667; Filed, May 12, 1969;
8:45 a.m,]



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