How to Use Work-Study Funds When Hiring a Student Worker
- Verify any work-study award with the student. You may request a copy of the Financial Aid Award Notification (FAAN) from the student. Ask for permission to use the student’s work-study award and have the student acknowledge that permission is granted.
- Enter payroll information into PeopleSoft. Colleges and administrative units are responsible for maintaining source documents with approvals for data entered into the system.
- Place the student’s work study in the PeopleSoft WorkStudy Placement Panel.
- Make sure that student workers using work study report time in PeopleSoft Time and Absence regardless of fixed percentage or flexible hourly appointments.
Special Circumstances
- Students may continue to work using work-study funds during breaks and between semesters if they were registered for the previous term and can prove registration for the upcoming semester.
- Work study cannot be used for more than 40 hours of employment per week, or to fund paid holidays, paid sick days, paid parental leave, paid military leave, or paid jury duty.
- Students’ earnings may not be funded by work study for the official University holidays or for emergency closings. If their duties require them to work on holidays or emergency closings for whatever reason, they must be paid entirely from departmental funds.
- University off-cycle checks are not eligible for automatic reimbursement of the 70% split. If you process an off-cycle check for a student worker, you must request reimbursement on behalf of the department. Decisions are made based on availability of work-study funds and the student’s eligibility.
- Students who drop below the minimum credit requirement lose eligibility to hold a student job, and employers lose work-study funding. Employers are responsible for 100% of a student’s earnings, retroactive to the beginning of the semester.
Time Cards
- On campus: Students who work on campus must submit time cards online through MyU. Online time submissions must be approved by a supervisor electronically.
- Off campus: Time cards must be kept regardless of fixed or flexible appointment. Time cards must be signed by the supervisor and student employee.
- Departments are responsible for ensuring that time cards reflect actual hours worked.
Employer Responsibilities
Employers of work-study students are responsible for:
- Verifying proper registration each semester. See the “Hiring student workers” section of the Hiring and Managing Student Workers page.
- Placing the award using the PeopleSoft Work-Study Award Placement Panel. The award must be manually placed in this panel with the correct job record number.
- Monitoring work-study earnings (see next section for more information).
- Terminating a student’s work-study appointment and changing the appointment to a non-work study account when the student earns their total work-study award for the semester. The award total is the maximum amount the student may earn in gross pay during the award period. Note that award amounts can change due to changes in the financial aid package. Monitoring the Work-Study Placement Panel in PeopleSoft will catch these changes.
- Retaining work-study employee-reported paid time for five years. Paid time is required for both fixed percentage and flexible appointments. State and federal auditors may ask for a random sample of student time cards each year, and you may be asked to provide original time cards for the audit.
- Following work-study guidelines. Your department may be charged 100% of a student’s wages if you fail to comply with the established processes outlined on this page.
Monitoring Work-Study Earnings
Work-study earnings are limited to each student’s total award. The Office of Student Finance determines a student’s award based on the individual needs of the student and the amount of the state and federal work-study money allocated to the University.
Students may accept more than one position, but work-study reimbursement ends when the student’s total earnings exceed the total work-study award. You may ask students if they are seeking or are currently employed in another position using their work-study funds. Work-study awards may then be divided between the two employing departments. How the award is divided is up to the student. Student employment staff will need help in splitting the award in the PeopleSoft Work-Study Placement Panel. Call 612-626-8608 for assistance.
The amount of the work-study award represents the maximum gross earnings for which employing departments will receive work-study reimbursement. In other words, the student’s gross earnings are subtracted from the award total each pay period. The employing departments will be reimbursed for 70% of the student’s gross earnings for each pay period until the award is gone.
For example, if the student has an award of $2,700 and works enough hours to earn the entire award, the department will be reimbursed for 70% of $2,700. The department will not be reimbursed for any unearned work-study funds. This means if the student does not earn the entire work-study award, the department will only be reimbursed for 70% of the student’s actual gross earnings.
Split the fall/spring award evenly between fall and spring semesters to avoid any charge-backs. For example, if you hire a student who has a total award of $3,000, the student can earn $1,500 for fall semester and $1,500 for spring semester. If the student becomes ineligible for student employment after the start of spring semester, their award would be reduced from $3,000 to $1,500. Your department would be charged back for any of the student’s earnings in excess of the $1,500 fall semester allotment. By distributing the award evenly over the two semesters, you reduce the risk of exceeding the work-study award and incurring a 70% charge-back for reimbursement overages.
Be aware that students' work-study awards can change throughout the school year. Students' financial aid records are reviewed each semester to ensure that all students are meeting Office of Student Finance eligibility requirements. Students who are not meeting these requirements may have their work-study award reduced. The Office of Student Finance notifies students of changes in their award amounts. The student is responsible for communicating an award change to their supervisor/employer.
Graduate Academic Work-Study Employment
If you are recruiting students with work study for graduate assistant appointments, follow the policies and procedures outlined by Graduate Assistant Services.
You may request a copy of the Financial Aid Award Notification (FAAN) from the graduate student applicant. Discuss the terms of employment with the student. For your records, obtain a signed statement from the student stating the amount of the work-study award the student is designating to the department. After the hiring decision has been made, departments are responsible for placing the student's work study with the appropriate combo code and correct HRMS job record.
May/Summer Work Study
The Office of Student Finance will approve May/summer work-study awards to students who earned fall/spring work study and are eligible for financial aid in the summer (on the student's request).
Students who did not have work study in the fall and spring terms but are eligible for May/summer financial aid may also request work study from the Office of Student Finance at 612-624-1111. Signature stamps cannot be used.
Note:
- Students who receive May/summer work study must meet and maintain the same registration requirements for the summer terms as the academic term. See the “Hiring student workers” section of the Hiring and Managing Student Workers page.
- Employers of students continuing in a job from the fall/spring term into the May/summer term must verify work-study funds. It is advisable to confirm the status, as students do not always receive the same type of financial aid award from one award period to the next.