[Code of Federal Regulations] [Title 34, Volume 3] [Revised as of July 1, 2007] From the U.S. Government Printing Office via GPO Access [CITE: 34CFR675.16] [Page 622-624] 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. 675.16 Payments to students. (a)(1) An institution must pay a student FWS compensation at least once a month. (2) Before an institution makes an initial disbursement of FWS compensation to a student for an award period, the institution must notify the student of the amount of funds the student is authorized to earn, and how and when the FWS compensation will be paid. (3) An institution must pay FWS compensation to a student by-- [[Page 623]] (i) Check or similar instrument that the student can cash on his or her own endorsement; (ii) Initiating an electronic funds transfer (EFT) to a bank account designated by the student after obtaining the authorization described in paragraph (a)(4)(i) of this section; (iii) Crediting the student's account at the institution after obtaining the authorization described in paragraph (a)(4)(i) of this section. The institution may only credit the student's account at the institution to satisfy current award year charges for-- (A) Tuition and fees; (B) Board, if the student contracts with the institution for board; (C) Room, if the student contracts with the institution for room; and (D) Other institutionally provided educationally related goods and services; or (iv) Crediting the student's account at the institution to satisfy minor prior award year authorized charges if these charges are less than $100 or if the payment of these charges does not, and will not, prevent the student from paying his or her current educational costs after obtaining the authorization described in paragraph (a)(4)(i) of this section. (4)(i) Except for the noncash contributions allowed under paragraphs (b)(2) and (b)(3) of this section, an institution must obtain a separate written authorization from the student if the student is paid FWS compensation by-- (A) Crediting the student's account at the institution; or (B) Initiating an EFT to a bank account designated by the student. (ii) If an institution obtains a written authorization from the student, the institution may hold excess FWS funds under paragraph (a)(8) of this section. (iii) The institution must obtain and use the written authorization in accordance with the requirements of paragraphs (a)(5) and (a)(6) of this section. (5) In obtaining the student's written authorization described in paragraph (a)(4) of this section, an institution-- (i) May not require or coerce the student to provide that authorization; (ii) Must allow the student to cancel or modify that authorization at any time; and (iii) Must clearly explain to the student how it will carry out that activity. (6)(i) If a student modifies the written authorization described in paragraph (a)(4) of this section, the modification takes effect on the date the institution receives the modification notice. (ii) If a student cancels the written authorization described in paragraph (a)(4)(i)(A) of this section, the institution may use the FWS compensation to pay only those authorized charges incurred by the student before the institution received the notice. (7) If an institution pays a student FWS compensation by crediting the student's account, and the result is a credit balance, the institution must pay the credit balance directly to the student as soon as possible but no later than 14 days after the balance occurred on the account. (8) Except if prohibited by the Secretary under the reimbursement payment method, an institution may hold, on behalf of the student, FWS funds that would otherwise be paid directly to the student under paragraph (a)(7) of this section, if the institution obtains the authorization described in paragraph (a)(4)(ii) of this section. If an institution holds excess FWS funds, the institution must-- (i) Identify the amount of FWS funds the institution holds for each student in a subsidiary ledger account designated for that purpose; (ii) Maintain, at all times, cash in its bank account in an amount at least equal to the amount of FWS funds the institution holds for the student; and (iii) Pay any remaining balance by the end of the institution's final FWS payroll period for an award period. (9) If a student cancels the written authorization as described in paragraph (a)(4)(ii) of this section to hold excess FWS funds, the institution must pay those funds directly to the student as soon as possible but no later than 14 days after the institution receives that cancellation notice. (10) Regardless of who employs the student, the institution is responsible [[Page 624]] for ensuring that the student is paid for work performed. (11) A student's FWS compensation is earned when the student performs the work. (12) An institution may pay a student after the student's last day of attendance for FWS compensation earned while he or she was in attendance at the institution. (b)(1) Except for the noncash contributions allowed under paragraph (b)(2) or (b)(3) of this section, an institution must pay the student its share of his or her FWS compensation at the same time it pays the Federal share. (2) If an institution pays a student its FWS share for an award period in the form of tuition, fees, services, or equipment, it must pay that share before the student's final payroll period. (3) If an institution pays its FWS share in the form of prepaid tuition, fees, services, or equipment for a forthcoming academic period, it must give the student a statement before the close of his or her final payroll period listing the amount of tuition, fees, services, or equipment earned. (c) A correspondence student must submit his or her first completed lesson before receiving a payment. (d) The institution may not obtain a student's power of attorney to authorize any disbursement of funds without prior approval from the Secretary. (Approved by the Office of Management and Budget under control number 1845-0019) (Authority: 20 U.S.C. 1091, 42 U.S.C. 2753) [52 FR 45770, Dec. 1, 1987, as amended at 53 FR 49147, Dec. 6, 1988; 57 FR 32356, July 21, 1992; 59 FR 61419, Nov. 30, 1994; 64 FR 58292, Oct. 28, 1999]