Hi Deb,
We have experienced this as well. Our students were disappointed to
learn that their grant wages could potentially put them in a situation
to have to repay federal student grants. We are now more cognizant of
the need to explain to students how the determination of financial need
is made and how earnings are handled. It really only becomes a problem
if they are surprised with a bill from financial aid at the end of the
project.
Dawn

Dawn Underwood
Associate Director
Sponsored Programs
Indiana State University
Terre Haute, Indiana
Phone: 812-237-3088
Fax: 812-237-3092

>>> xxxxxx@UNCP.EDU 7/26/2006 4:56 PM >>>
Greetings!

One of our faculty recently received an NIH education and training
grant,
providing biomedical research opportunities to undergraduate students.
He
is currently establishing policies/procedures and methods for students
to
apply to participate in the program.  An issue emerged related to
student
wages from the project and the effects of this wage on financial aid
eligibility.  The project budget includes student wages during the
academic
year and summer for participants in the program.  These wages are meant
to
offset the need for external employment so that the students are fully
engaged in the project rather than needing to secure outside employment
to
maintain themselves (room and board, etc).  The PI is learning (from
the
Financial Aid office) that the wages the students will earn will affect
the
level of financial aid they may be eligible to receive.  This may
become a
deterrent for students who would want to participate in the program,
but
have financial concerns.

Has anyone else encountered this issue?  If so, what resolution did
you
arrive at?  Does anyone know of any mechanisms in which a student
could
receive support that did not adversely affect financial aid status?  We
will
be communicating further with our Financial Aid office, but wanted to
survey
other institutions that have had experience with this situation.

Please feel free to email me directly at xxxxxx@uncp.edu.

Thanks!

Deborah Lundin, Ed.D.

Research and Training Coordinator/Assistant Director

Center for Sponsored Research and Programs

University of North Carolina at Pembroke

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