Effective July 1, 2008, Federal regs 4 CFR Parts 668, 674, 676 was enacted regarding use of Federal Work Study funds. These regulations require an institution to return any funds that it attempts to disburse directly to the student, but the student does not receive or negotiate these funds.
The law stipulates: No later than a 240 day period the institution must cease any additional disbursement attempts and immediately return those funds. To effectively manage FWS funding, any checks 180 days old (based on paycheck date) and not picked up by student from Payroll will need to have funding changed via an RFA (retroactive funding adjustment).
Payroll will be contacting department PRS and the student 90 days after the check issue date so that they come and pick up the check(s). Follow up will then occur at 135 and 170 days before the 180 day deadline.
This entire Federal regulation can be found at the following URL:
Click Here
A list serve message was sent to all campus on 9/26/08 informing of how Payroll and Office of Student Financial Aid would be proceeding with this regulation. This message can be found by
clicking here.
