[Code of Federal Regulations]
[Title 34, Volume 3]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR675.26]

[Page 628-629]
 
                           TITLE 34--EDUCATION
 
             CHAPTER VI--OFFICE OF POSTSECONDARY EDUCATION,
                         DEPARTMENT OF EDUCATION
 
PART 675--FEDERAL WORK-STUDY PROGRAMS--Table of Contents
 
                  Subpart A--Federal Work-Study Program
 
Sec. 675.26  FWS Federal share limitations.

    (a)(1) The Federal share of FWS compensation paid to a student 
employed other than by a private for-profit organization, as described 
in Sec. 675.23, may not exceed 75 percent unless the Secretary approves 
a higher share under paragraph (a)(2) or (d) of this section.
    (2) The Federal share of the compensation paid to a student may 
exceed 75 percent, but may not exceed 90 percent, if--
    (i) The student is employed at a private nonprofit organization or a 
Federal, State, or local public agency that--
    (A) Is not a part of, and is not owned, operated, or controlled by, 
or under common ownership, operation, or control with, the institution;
    (B) Is selected by the institution on an individual case-by-case 
basis;
    (C) Would otherwise be unable to afford the costs of this 
employment; and
    (ii) The number of students compensated under paragraph (a)(2)(i) of 
this section is not more than 10 percent of the total number of students 
paid under the FWS Program at the institution.
    (3) The Federal share of the compensation paid to a student employed 
by a private for-profit organization may not exceed 50 percent.
    (4) An institution may not use FWS funds to pay a student after he 
or she has, in addition to other resources, earned $300 or more over his 
or her financial need.
    (b) The institution may not include the following when determining 
the Federal share:
    (1) Fringe benefits such as paid sick days, paid vacations, or paid 
holidays.
    (2) The employer's share of social security, workers' compensation, 
retirement, or any other welfare or insurance program that the employer 
must pay on account of the student employee.
    (c) If an institution receives more money under an employment 
agreement from an off-campus employer than required employer costs, its 
not-Federal share, and any share of administrative costs that the 
employer agreed to pay, the excess funds must be--
    (1) Used to reduce the Federal share on a dollar-for-dollar basis;
    (2) Held in trust for off-campus student employment next year; or
    (3) Refunded to the off-campus employer.
    (d) For each award year, the Secretary authorizes a Federal share of 
100 percent of the compensation earned by a student under this part if--
    (1) The work performed by the student is for the institution itself, 
for a Federal, State, or local public agency, or for a private nonprofit 
organization; and
    (2)(i) The institution in which the student is enrolled--
    (A) Is designated as an eligible institution under--
    (1) The Developing Hispanic-Serving Institutions Program (34 CFR 
part 606);

[[Page 629]]

    (2) The Strengthening Institutions Program, American Indian Tribally 
Controlled Colleges and Universities Program, or Alaska Native and 
Native Hawaiian-Serving Institutions Program (34 CFR part 607);
    (3) The Strengthening Historically Black Colleges and Universities 
Program (34 CFR part 608); or
    (4) The Strengthening Historically Black Graduate Institutions 
Program (34 CFR part 609); and
    (B) Requests that increased Federal share as part of its regular FWS 
funding application for that year;
    (ii) The student is employed as a reading tutor for preschool age 
children or children who are in elementary school;
    (iii) The student is performing family literacy activities in a 
family literacy project that provides services to families with 
preschool age children or children who are in elementary school; or
    (iv) The student is employed as a mathematics tutor for children who 
are in elementary school through the ninth grade.

(Authority: 20 U.S.C. 1068d and 1103d; 42 U.S.C. 2753)

[52 FR 45770, Dec. 1, 1987, as amended at 59 FR 61417, 61419, Nov. 30, 
1994; 61 FR 60396, Nov. 27, 1996; 62 FR 63439, Nov. 28, 1997; 63 FR 
52855, Oct. 1, 1998; 64 FR 58294, Oct. 28, 1999; 66 FR 34039, June 26, 
2001]