34 CFR 675.21 - Institutional employment.
(a) An institution, other than a proprietary institution, may employ a student to work for the institution itself, including those operations, such as food service, cleaning, maintenance, or security, for which the institution contracts, if the contract specifies -
(1) The number of students to be employed; and
(2) That the institution selects the students to be employed and determines each student's pay rate.
(b) A proprietary institution may employ a student to work for the institution, but only in jobs that -
(1) Are in community services as defined in § 675.2; or
(2) Are on campus and that -
(i) Involve the provision of student services as defined in § 675.2(b) that are directly related to the work-study student's training or education;
(ii) To the maximum extent possible, complement and reinforce the educational program or vocational goals of the student; and
(iii) Do not involve the solicitation of potential students to enroll at the proprietary institution.