Are Incarcerated Students Eligible For FWS Or FSEOG?

Guidance under "Incarcerated students and sex offenders” in Volume 1, Chapter 6 of the FSA Handbook states that such students may be potentially eligible to receive Federal Supplemental Educational Opportunity Grant (FSEOG) or Federal Work-Study (FWS) funds. NASFAA interprets this language as meaning incarcerated students are technically eligible for FSEOG or FWS funds, but practically it would be difficult for those students to actually receive FSEOG or to work an FWS job due to the rules governing FWS.

Guidance found on StudentAid.gov states that if the student is in a federal or state facility, the student can receive FSEOG and FWS, but probably won’t because:

• Schools are limited in the amount of FSEOG funds available; and
• The logistical difficulties of performing an FWS job while incarcerated would likely be too great for students to be awarded FWS funds.

Institutional Employment (PEP as an Additional Location): Because a Prison Education Program (PEP) is considered an additional location of the institution, some FWS positions performed at the correctional facility may qualify as institutional employment. In these cases, the positions are generally treated similarly to on-campus employment, even though the work is performed at a correctional facility rather than the institution's main campus.

Off-Campus Employment (Community Service or External Employer): If the student is employed by a federal, state, or local public agency, or by a private nonprofit organization (including certain correctional agencies or community service partners), the position is generally considered off-campus employment. These positions must satisfy the applicable off-campus FWS requirements, including the public-interest requirement.

Key Distinction: The classification depends on who employs and supervises the student, rather than the physical location where the work is performed. A position located within a correctional facility may be considered institutional employment if the institution is the employer, while a position at the same facility may be considered off-campus employment if the student is employed through an external public agency or nonprofit organization.

School Responsibility: Regardless of whether the position is classified as institutional or off-campus employment, the school remains responsible for ensuring appropriate supervision, compliance with FWS requirements, and proper documentation of the employment relationship.

Current ED Guidance: ED has clarified that PEPs are additional locations for Title IV purposes; however, guidance regarding the application of FWS and community service requirements within PEP settings remains limited. Schools should carefully document the basis for classifying positions as institutional or off-campus employment.

With Federal Pell Grant restoration, this may be an area the U.S. Department of Education (ED) focuses on at some point--that is, providing schools with more guidance on how incarcerated students might be able to access FWS funds.

P&P Builder: NASFAA’s Policies & Procedures (P&P) Builder guides you step-by-step through the creation of a centralized, accessible policies and procedures manual. This is included in the cost of NASFAA Value Plus membership. There is an additional cost for other membership levels.