DEPARTMENT OF TREASURY  
HIGHER EDUCATION ASSISTANCE AUTHORITY  
MICHIGAN WORK-STUDY GRADUATE PROGRAM  
(By authority conferred on the Michigan higher education assistance authority by  
section 11 of Act No. 303 of the Public Acts of 1986, being S390.1321 of the Michigan  
Compiled Laws)  
R 390.1771 Definitions.  
Rule 1. (1) As used in these rules:  
(a) "Act" means Act No. 303 of the Public Acts of 1986, being S390.1321 et seq. of the  
Michigan Compiled Laws.  
(b) "Application" means the period of time covered by the MWSG award at a  
postsecondary school.  
(c) "Authority" means the Michigan higher education assistance authority created by  
Act No. 77 of the Public Acts of 1960, as amended, being S390.951 et seq. of the  
Michigan Compiled Laws.  
(d) "Campus-based aid" means the federal financial aid programs administered by  
the financial aid officer at a participating postsecondary school. These programs shall  
include supplemental educational opportunity grants, college work-study, and Perkins  
loans.  
(e) "CWS" means the college work-study program established under the federal  
higher education act.  
(f) "Default" means failure to comply with the terms of a loan guaranteed by the  
authority so that the authority finds it necessary to reimburse the lending institution for  
the balance of the loan.  
(g) "Educational expenses" means student costs related to attendance as specified by the  
postsecondary school. These expenses may include tuition and fees charged to the  
student and a reasonable allowance for room and board, transportation, books and  
equipment, and incidental expenses.  
(h) "Employment" means working 40 hours or less per week in conjunction with the  
MWSG program.  
(i) "Financial need" means the positive difference found by the postsecondary  
school between the applicant's educational expenses and any reasonable family unit  
contribution identified consistent with current need analysis review procedures  
approved for use with campus-based title IV federal student aid programs as provided  
for under the federal higher education act. Other sources of student aid to be  
received by the applicant for the award period in question shall be included by the  
postsecondary school in the computation of financial need.  
(j) "Full-time study" means enrollment for the number of credit hours per enrollment  
period officially defined as full-time by the postsecondary school. Enrollment status  
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shall be determined as of a uniform date established each enrollment period by the  
recognized postsecondary school for all MWSG recipients.  
(k) "Graduate or professional graduate program of study" means graduate-level  
courses that lead to a graduate or professional graduate degree.  
(l) "Half-time study" means enrollment for not less than half of the credit hours  
officially defined as full-time by the postsecondary school. Enrollment status shall be  
determined as of a uniform date established each enrollment period by the  
postsecondary school for all MWSG recipients.  
(m) "Higher education act" means title IV of the federal higher education act of  
1965, as amended, 20 U.S.C. S1070 et seq.  
(n) "Incarcerated" means currently interned in a correctional facility on either a full-  
time or a part-time basis.  
(o) "Independent or self-supporting status" means current federal requirements, as  
defined in 34 C.F.R. S668.1a, as amended, have been met concerning conditions under  
which parental resources can be disregarded in the computation of a student's eligibility  
for financial aid.  
(p) "MWSG" means the Michigan work-study graduate program as established by the  
act.  
(q) "Perkins loans" means the Perkins loan program established under the federal higher  
education act.  
(r) "Permanent resident" means an applicant who is classified as a permanent  
resident by the United States immigration and naturalization service for the MWSG  
program award period in question.  
(s) "Postsecondary school" means a public or nonpublic degree-granting college or  
university located within the state of Michigan that meets all of the following criteria:  
(i) Is approved by the Michigan state board of education and is eligible to be listed in  
the Michigan department of education's publication entitled "Directory of Michigan  
Institutions of Higher Education."  
(ii) Is currently participating in the federal college work-study program as  
authorized by the federal higher education act.  
(iii) Offers graduate or professional graduate academic programs that are not  
comprised solely of sectarian instruction or religious worship.  
(t) "Resident" means either of the following:  
(i) For a dependent student who does not meet current federal guidelines for  
independent or self-supporting status as provided for under the federal higher  
education act, it means that the student's home address formally recognized by the  
school as the basis for residency documentation has been in Michigan for a minimum of  
12 months immediately preceding the postsecondary school's MWSG award period and  
that the school does not consider the student a resident of any other state.  
(ii) For an independent student who does meet current federal guidelines for  
independent or self-supporting status as provided for under the federal higher  
education act, it means that the student involved has resided in Michigan  
continuously for a minimum of 12 months immediately preceding the postsecondary  
school's MWSG award period and that the student involved is not considered a  
resident of any other state.  
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(u) "Satisfactory academic progress" means, at  
a
minimum, compliance with  
standards established by the postsecondary school of enrollment pursuant to the  
federal higher education act regarding minimal criteria of academic progress needed to  
maintain eligibility for the federal campus-based student aid programs.  
(v) "Sectarian instruction or religious worship" means a program of study leading to  
a degree in theology or divinity.  
(w) "Student aid" means scholarship, grant, loan, or employment aid that the applicant  
might receive from any source other than the MWSG program.  
(2) Terms defined in the act have the same meanings when used in these rules.  
History: 1988 AACS.  
R 390.1772 Program administration; activities.  
Rule 2. The authority shall administer the MWSG program in conjunction with  
postsecondary schools. Participating schools shall be responsible for all of the following  
activities:  
(a) Signing and maintaining MWSG employer agreements.  
(b) Selecting eligible student recipients.  
(c) Awarding MWSG funds to eligible students.  
(d) Monitoring employment hours and MWSG program matching requirements and  
payroll distribution.  
(e) Reporting MWSG expenditures and related data to the authority on a timely basis.  
(f) Refunding unused MWSG funds to the authority promptly at the end of each fiscal  
year.  
History: 1988 AACS.  
R 390.1773 Eligible schools.  
Rule 3. (1) Postsecondary schools shall be eligible to receive MWSG funds and  
make student awards under the MWSG program.  
(2) Eligible postsecondary schools shall notify the authority not later than February 1  
preceding the fiscal year of funding if they choose not to participate in the MWSG  
program.  
History: 1988 AACS.  
R 390.1774 Eligible students.  
Rule 4. Postsecondary schools participating in the MWSG program may make awards to  
students who meet all of the following criteria:  
(a) Are Michigan residents and not considered residents of any other state.  
(b) Are not currently incarcerated in a correctional facility.  
(c) Are enrolled, or accepted for enrollment, in a postsecondary school at the graduate  
or professional graduate level on at least a half-time basis.  
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(d) Are not enrolled in a program of study which leads to a degree in theology or  
divinity.  
(e) Are determined by the postsecondary school to financially need the MWSG awards  
to help meet educational expenses.  
(f) Are United States citizens or permanent residents.  
(g) Are not in default on a loan guaranteed by the authority. Exceptions may be made if  
a defaulted borrower has made satisfactory repayment arrangements on the defaulted  
amount of the loan as determined by the authority.  
(h) Are making satisfactory academic progress as determined by the  
postsecondary school of enrollment.  
History: 1988 AACS.  
R 390.1775 Eligible employers.  
Rule 5. (1) Postsecondary schools may enter into written MWSG employment  
agreements with nonprofit employers who meet all of the following criteria:  
(a) Provide not less than 20% of the wages earned by each MWSG student placed.  
(b) Do not use MWSG recipients to displace employed workers.  
(c) Do not employ MWSG recipients to construct, operate, or maintain facilities of  
sectarian instruction or religious worship.  
(d) Do not pay MWSG recipients at a rate less than the prevailing federal minimum  
wage.  
(e) Enter into a signed written agreement with the postsecondary school to provide such  
employment for students recommended by the school.  
(f) Postsecondary schools employing MWSG students on campus will be considered  
nonprofit employers for purposes of these rules.  
(2) Postsecondary schools may enter into written MWSG employment agreements  
with profit-making employers who meet all of the following criteria:  
(a) Provide not less than 50% of the wages earned by each MWSG student placed.  
(b) Do not use MWSG recipients to displace employed workers.  
(c) Do not employ MWSG recipients to construct, operate, or maintain facilities of  
sectarian instruction or religious worship.  
(d) Do not employ MWSG recipients at a rate less than the prevailing federal  
minimum wage.  
(e) Enter into a signed written agreement with the postsecondary school to provide such  
employment for students recommended by the school.  
(3) The written employment agreement shall specify whether the employing  
organization or the postsecondary school is considered the student's employer and  
which entity is responsible for any fringe benefit payments and the employer's share of  
any welfare or insurance programs associated with MWSG employment. State MWSG  
funds shall not be used to pay for any of the following:  
(a) The employer's share of social security, workman's compensation, unemployment  
insurance, retirement, or any other welfare or insurance that the employer pays on behalf  
of the student employee.  
(b) Fringe benefits, such as paid sick days, paid vacations, or paid holidays.  
(c) Job-related injuries or illnesses.  
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(4) The employment agreement shall further specify whether the postsecondary  
school or the employer shall be responsible for actually paying the student and the  
frequency of payment.  
(5) In other areas not specified in the act or these rules or by the authority, the  
employment agreement format and content shall follow prevailing federal college  
work-study practices.  
(6) All such written employment agreements shall be maintained by the postsecondary  
school for audit purposes.  
History: 1988 AACS.  
R 390.1776 MWSG award computation.  
Rule 6. (1) Postsecondary schools participating in the MWSG program shall make  
awards to eligible students consistent with all of the following provisions:  
(a) The MWSG funds awarded, in combination with other student aid received,  
shall not exceed the amount of financial need as determined by the postsecondary  
school. The MWSG award itself shall not exceed any ceiling stipulated by the  
authority.  
(b) MWSG award priority shall be given to eligible students with the greatest  
financial need as determined by the postsecondary school.  
(c) MWSG funds shall not be paid to any eligible student for more than a total of 8  
semesters or 12 terms of full-time study at any particular school and degree level. To  
monitor the amount of cumulative MWSG assistance provided, participating schools  
shall charge recipients with a semester or term count for each enrollment period in which  
MWSG funds are paid according to the following schedule:  
(i) Full-time enrollment at a semester school equals a 1.5 count per enrollment period.  
(ii) Full-time enrollment at a term school equals a 1.0 count per enrollment period.  
(iii) Half-time enrollment or more than half-time enrollment but less than full-time  
enrollment at a semester or term school equals a 0.5 count per enrollment period. A  
cumulative semester or term payment count of 12 or higher shall eliminate the student  
from the MWSG program at a given degree level at any particular school. Each  
postsecondary school participating in the MWSG program shall maintain and monitor  
cumulative institutional records regarding individual student participation.  
(d) Unearned MWSG funds may be reawarded within the fiscal year by the school to  
other eligible students.  
(e) Continued MWSG program eligibility shall be a function of the financial need  
demonstrated and the MWSG funds available at each participating postsecondary  
school if a recipient transfers from one institution to another.  
(f) All MWSG funds provided by the authority shall be used for student wages within  
the state fiscal year for which the funds were appropriated. This language shall not  
prevent a school from making awards and initiating employment consistent with an  
academic year cycle which would begin on or after August 1.  
(g) All funds awarded to students shall carry the MWSG title in communications  
made to student recipients by the schools involved.  
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(2) Nothing in these rules shall preclude the campus financial aid administrator from  
exercising professional judgment and disregarding all or a portion of assets when  
deemed appropriate by the financial aid administrator in determining eligibility.  
History: 1988 AACS.  
R 390.1777 MWSG campus allocations.  
Rule 7. (1) The authority shall distribute MWSG funds to postsecondary schools  
participating in the program according to the provisions of the act.  
(2) Postsecondary schools participating in the MWSG program shall provide to the  
authority, by the stated deadline, the data necessary to implement the campus allocation  
formula.  
(3) Postsecondary schools participating in the MWSG program shall maintain a  
separate restricted account for funds and transactions pertaining to the program.  
(4) A minimal MWSG annual payment of $5,000.00 shall be made to all eligible  
postsecondary schools participating in the MWSG program.  
History: 1988 AACS.  
R 390.1778 Annual report.  
Rule 8. Each postsecondary school participating in the MWSG program shall provide  
an annual report in the format specified by the authority. It shall include all of the  
following information:  
(a) The number of students served.  
(b) The number of employers utilized.  
(c) MWSG payment by employer category.  
(d) MWSG dollar match by employer category.  
(e) Year-end refund of unutilized funds.  
(f) Other related data needed by the authority for accounting or audit purposes.  
History: 1988 AACS.  
R 390.1779 Records; retention.  
Rule 9. (1) Postsecondary schools participating in the MWSG program shall make all  
MWSG records part of their permanent student financial aid office files.  
(2) Records which provide any of the following information shall be maintained:  
(a) Student eligibility.  
(b) Employer contracts.  
(c) Wages and matching funds paid.  
(d) Any award adjustments and refund calculations made.  
(e) Cumulative awards made to each participant.  
(3) All MWSG program records shall be made available for audit purposes upon  
request.  
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(4) All MWSG program records shall be maintained for a minimum of 5 years by  
each participating institution.  
History: 1988 AACS.  
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;