A sluggish economy and declining federal funding are depriving some work-study students of extra cash this year, according to University administrators.
Due to increasing demand for the work-study program and a simultaneous decrease in government funding for Penn's program, the University will be forced to limit the amount of money eligible students can earn this semester. The limitations will affect only those students who are eligible to earn more money than the initial allotment in their financial aid package.
"We're in a tight financial situation with the program this year," Director of Student Financial Aid William Schilling said.
Each school year, over 4,000 Penn students who demonstrate financial need are given the opportunity to earn money through the federal work-study program, under which students can work federally subsidized jobs on campus. The upper limit of their earnings is set in their financial aid packages.
In the past, Penn has been able to employ students who surpass their allotment yet remain eligible for additional funds under the program. This year, Penn will still be able to accommodate students but will be forced to impose a limit on the amount of extra money a student can earn.
"On the one hand, there have been some declines in the allocations of funding for the program," Schilling said. And starting in the 2002-2003 school year, "the number of students working on work-study has significantly increased -- we think that's largely a result of the national economic picture."
Since fiscal year 2002, Penn has seen a 16 percent increase in the number of students who participate in work-study, according to University Treasurer and Senior Vice President for Finance Craig Carnaroli. That number is likely to increase by 5 percent again next year, Carnaroli said.
"More importantly, the amount of allocation of federal money that we get has gone down 13 percent since 2002," Carnaroli added. "Next year, we expect it to go down again another 5 percent."
Schilling expects to receive about 200 requests for additional work-study hours this year but now will only be able to fulfill these requests up to $500 per student, depending on student eligibility.
Lisa Fusick, a student in the Graduate School of Education, is one of the students who is affected this year.
Fusick, who said she depends upon her work-study money for transportation and other basic costs, was "shocked" when she first received an e-mail stating that she must end her work-study job immediately.
"I thought maybe it was a mistake -- and when I realized that it wasn't, I just thought that it was really unprofessional," she said.
Fusick was concerned about the impact the work-study cuts would have on other students.
"It can't come down to only if you have the money can you attend this school," Fusick said.
Schilling and Carnaroli said the measures the University is taking will ensure that each student who needs work-study aid will receive it.
By placing a limit on the amount of extra funds students can earn, the University is ensuring that the program remains accessible to all students who are eligible and wish to utilize the work-study program, according to officials.
In addition to limiting the amount of extra funds students can earn, the University will increase the amount that it contributes to student salaries from 30 percent to 40 percent, Carnaroli said.
Though the amount of contribution varies from institution to institution, a 70 percent government and 30 percent school contribution is typical, Carnaroli said. The additional money will come from the employing departments' operating budgets.
"Departments may be looking more carefully at the utilization of student workers, but I don't think this is going to have a significant impact on the availability of work-study positions," Schilling said.
"We have significantly more work-study positions right now than there are students in the program," Schilling added.
