The work-learning-service program is the thing being defined, and it has six requirements of its own. Section 1087-58(e)(2) defines a "comprehensive student work-learning-service program" as one that is an integral and stated part of the institution's educational philosophy and program; requires participation of all resident students for enrollment and graduation; includes learning objectives, evaluation and a record of work performance as part of the student's college record; provides programmatic leadership by college personnel at levels comparable to traditional academic programs; recognizes the educational role of work-learning-service supervisors; and includes consequences for nonperformance or failure similar to the consequences for failure in the regular academic program. That last requirement is the one that separates a work college from a campus with a lot of student jobs: at a work college a failed work assignment is an academic problem.
A wording discrepancy worth knowing about. The Department of Education's own 2026-2027 Federal Student Aid Handbook renders the third part of the institutional test as requiring "resident students, including at least one-half of all students who are enrolled on a full-time basis" to participate. The statute says "requires students, including at least one-half of all students who are enrolled on a full-time basis." The word "resident" was struck from subsection (e) by the 2008 Higher Education Opportunity Act, which replaced the subsection entirely; it survives in the definition of the program at (e)(2)(B), which does require participation of all resident students for enrollment and graduation, but not in the definition of the institution. Where the handbook and the Code differ on a statutory definition, the Code governs.
How the money works, and why it is not simply extra Work-Study. Section 1087-58(b)(1) allows an institution to transfer funds allocated under the Work-Study part and the Perkins part into the Work-Colleges Program, and the Department's handbook confirms a work college may transfer up to 100 percent of its Federal Work-Study allocation. Every transferred dollar must be matched dollar for dollar from non-federal sources, and the handbook states there are no exceptions to that match, including the exceptions that reduce a school's share for Work-Study students doing reading tutoring or family literacy work. Money may not move the other way into the Supplemental Educational Opportunity Grant program, and a school may carry forward or carry back up to 10 percent of its Work-College allocation. A school running both programs keeps two accounting records.
What the funds may pay for. Section 1087-58(b)(2) authorizes using them to support the educational costs of qualified students through self-help payments or credits under the program; to promote the work-learning-service experience; to carry out Federal Work-Study and Job Location and Development activities; to administer, develop and assess the program; to coordinate joint projects; and to conduct a longitudinal study of student academic progress and career outcomes. The Department adds two limits from its side: program funds may not pay for the purchase, construction or alteration of physical facilities or for indirect administrative costs, and funds may be awarded and paid only to students who have financial need, with students whose need is already met paid from institutional funds instead.
The program is live. The 2026-2027 Federal Student Aid Handbook carries a full Work-Colleges Program section citing section 448, 20 U.S.C. 1087-58 and 34 CFR 675.41(b), 675.45 through 675.47, and directs both new and returning schools to apply through the Common Origination and Disbursement system under Electronic Announcement CB-26-03. The number of participating institutions and the size of the appropriation change from year to year, and neither is stated here for that reason.