Community service requirements in the Federal Work Study (FWS) Program are infamous for their complexity. At the 2008 NASFAA Conference, representatives from the U.S Department of Education (ED) reviewed the requirements for the community service components of FWS, and offered a grave reminder to the audience about the consequences of not fulfilling the requirements.

Two Requirements

There are two community service requirements. The first requirement is that an institution must use at least seven percent of its total FWS allocation (initial and supplemental) to pay students employed in community service.

The second requirement is that at least one of the FWS students employed in community service must work as a reading tutor for children in a reading tutor project or performing family literacy activities in a family literacy project.

Calculating Minimum Spending Amounts

An institution must spend the greater of the following two amounts on community service:

• Seven percent of the total of the school's original and any supplemental FWS allocations minus any federal FWS funds returned through the reallocation process or earlier; or

• 100 percent of any supplemental FWS allocation.

Waivers of Community Service Requirements

The presenters reminded the audience that it is possible to waive the community service requirements. The Secretary of Education may waive one or both of the community service requirements if a school can demonstrate that enforcing the requirement would cause a hardship for its students. The fact that it is difficult for a school to comply with the requirements is not, in and of itself, a basis for granting a waiver. The Secretary has granted a limited number of waivers due to small FWS allocations, school location in a rural area, schools with a specialized program, and major natural disasters.

Community Service Isn't Optional

ED ended the session by presenting information about the failure to meet the community service requirements. During the 2006-07 award year, approximately 300 schools failed to meet the seven percent expenditure requirement. As described in Dear Colleague Letter CB-07-08, a participating institution that fails to meet one or both of the community service requirements for the 2007-08 or subsequent award years will be required to return federal FWS funds in the amount that represents the difference between what the institution should have spent on community service and its actual expenditures. Additionally, an institution that is out of compliance with the community service requirements may also be subject to a Limitation, Suspension, and Termination proceeding, the result of which could be the inability to participate in FWS and/or other Title IV programs, or a substantial fine.

By Jennifer Martin
NASFAA Assistant Director for Professional Assessment, Training, and Regulatory Assistance

Posted 07/18/08 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.