University changes policy amid criticism surrounding use of work-study money

Pullquote:”We need more student-workers in labs and fewer sweeping the floors.” – Michael Sullivan, member of the Faculty Senate

University officials announced Friday federal work-study dollars would no longer be used to pay the employees at any of the four private businesses in the Student Center.

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The University implemented the new policy after the Financial Aid Office launched an investigation into the legalities of private businesses using work-study money to pay employees, said Director Daniel Mann.

Mann said Department of Education officials said work-study regulations allowed the practice, but pressure from students and faculty made the businesses decide against continuing the practice.

“I think we had concluded that we would like to see the practice stopped as well,” he said. “But then when we went to the business partners, they agreed. There really was no conflict in coming to that conclusion.”

The investigation began when a professor questioned whether using federal work-study dollars to pay private business employees was what the intentions of work-study were. Most public institutions in Illinois do not use that option.

Several peer Universities said they have enough on-campus jobs to fill the positions without branching into the private sector. Others said they interpreted the regulations to permit work-study only at non-profit businesses.

Larry Dietz, vice chancellor for Student Affairs and Enrollment Management who distributes the Student Center’s work-study funds, said he was unaware of the situation until the issue became public. He also said the Student Center’s current director inherited the practice. Dietz was unsure of when the usage actually began.

Dietz said although the $34,410 allotted to the businesses is a relatively small percentage of the total funds, they did not want to deprive any departments of needed funding.

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“I just think it’s the right thing to do,” he said.

The policy is retroactive to the beginning of this year, and the businesses have agreed to pay back what they have used.

McDonalds and Chartwells, which manages the rest of the food services, will return $21,150, and the University Bookstore, owned by the Follett Corporation, will return $13,260. Mann said the Student Center would have the first opportunity at the redistributed money, but leftover funds will be given to the departments who most need it.

Representatives from the businesses were unable to be reached for comment.

Dietz said the University attempted to contact the students who will be affected by the new policy Friday. He also said the University would find jobs for any student who loses their job resulting from the change. But Mann said the businesses have agreed to continue to employ and pay the wages of those students affected.

Michael Sullivan, a mathematics professor and a member of the Faculty Senate, said in an email interview he believed the University has made the right decision. Furthermore, he said he would like to see the University use the work-study money to benefit student’s academic studies and future careers.

“We need more student workers in labs and fewer sweeping the floors,” Sullivan said.