6.3 Allowances and Allotments


R1. Allowances

Centers must:

a. Issue personal allowances to students in accordance with the procedures specified in Exhibit 6-2, Student Allowance and Allotment System (SAAS).

b. Ensure the physical security and financial accountability of payroll funds pending disbursement to students.

c. Notify all students upon enrollment that they shall receive allowances as follows:

1. Paid biweekly, in cash, by electronic funds transfer (EFT) to a bank account with a debit card or to a non-bank issued debit card, for all days in paid status in amounts specified in Exhibit 6-2, subject to the following restrictions:

​(a) Job Corps Data Center will not change its financial transfer process;

(b) Students must not be charged fees to access their funds, including automated teller machine (ATM) fees;

(c) Charging any transaction fees to students is prohibited; and

(d) Operators must effect any changes using current resources.

2. For re-enrolled students, paid at base allowance levels as if they were newly enrolled (including students with prior fraudulent enrollments).

3. For reinstated and re-established students, paid at their previous base allowance levels.

4. Increases in base allowance levels paid automatically as specified in Exhibit 6-2.

5. Arrival pay in amounts as specified in Exhibit 6-2.

R2. Transition Allowances

a. Outreach and Admissions (OA) contractors must notify all applicants upon enrollment, and centers must notify all students upon arrival, that they may become eligible, at the time of graduation, to receive a transition allowance as an incentive for attainment of academic credentials and those associated with career technical training, such as industry-recognized credentials, as designated in Exhibit 6-2.

b. At the time of graduation, students must be notified that they must provide forwarding information to ensure proper delivery of the transition allowances.

c. Students must be notified that failure to cash a received transition allowance check or failure to report non-receipt of a check within 12 months of the date of separation will result in forfeiture of the payment.

d. Students who re-enroll and subsequently graduate from the program are entitled to receive a transition allowance based on those academic and career technical training credentials obtained while enrolled in Job Corps according to the requirements stated in Exhibit 6-2​, and are also entitled to the transportation benefits as shown in Exhibit 6-3, Student Transportation.

e. Centers must disburse partial transition allowances to graduated students, at time of departure, as shown in Exhibit 6-2.

R3. Allowances and Taxes

a. Advise students that personal allowances, transition allowances, and other benefits are subject to Federal payroll withholding and Social Security taxes, because students are considered Federal employees for purposes of Federal payroll taxes.

b. Ensure that an income tax withholding form (W-4 form) is completed for each new enrollee as required by the tax code.

c. Ensure that wage and tax statements (W-2 forms) received by the center from the Job Corps Data Center (JCDC) are immediately distributed to all enrolled students or forwarded directly to separated students.

R4. Advances and General Indebtedness

a. Centers may issue personal advances to students to help satisfy pressing financial obligation(s), such as a court fine, bail bond, clothing, or other personal needs. Such advances must not exceed $250 at any given time. A personal advance may be issued only upon determination by the Center Director or designee when practical alternatives are not available to the student; failure to satisfy the financial obligation would unduly interfere with the student’s successful enrollment in Job Corps; and there is a reasonable expectation that the student will be able to repay the advance. The Job Corps Data Center (JCDC) will promptly reimburse a center for its disbursement of allowable personal advances to students.

b. Centers must ensure that the following instances of student indebtedness to Job Corps are promptly and accurately recorded in Center Information System (CIS) and also documented and maintained in the student’s personnel records. Items of student indebtedness that must be recorded in CIS include:

1. Personal advance

2. The cost of government-furnished travel needed by the student to return to the center from an Unauthorized Absence

3. The cost of government-furnished travel based upon misrepresentation by the student

4. Student’s share of dependent’s allotment

c. Students must repay their indebtedness to Job Corps. Repayment of indebtedness recorded in CIS shall be initiated through automatic payroll deductions from personal allowances. In no case shall indebtedness deductions from personal allowances exceed 50 percent of the personal allowance. For students separating from the program prior to full reimbursement of indebtedness, the outstanding balance must be collected automatically from any transition payment monies available at the time of separation.

d. Centers must recover Other Student Indebtedness as specified below and in R4.c. above.

1. Reimbursement for lost or damaged government property, with total indebtedness against a student not to exceed $500. Student reimbursement for property loss or damage must not exceed 50 percent per pay period as a deduction against student’s personal allowance. Center operators must apply such student reimbursements as offsets to be credited to the contract or interagency agreement and used to repair and replace damaged property or for other allowable costs.  Any balance remaining due from the student at time of separation may be deducted from any transition payment due to the student. Thereafter, any remaining balance due must be treated as uncollectible.

2. Center-imposed disciplinary fines may be collected from the student after the student receives his or her biweekly living allowance, not to exceed $5 per pay period. Such fines must be paid to the Student Benefit Fund. Disciplinary fines may not be collected from any source other than a student’s biweekly living allowance.

R5. Allotments

Centers must initiate allotments for those students who desire to make a support payment for dependents in accordance with Exhibit 6-2 and the following criteria:

a. An allotment may be initiated by a student who has a child(ren) who draws substantial support from the student. The student must provide proof of dependency.

b. Allotment amounts shall be matched by the government at five times the amount of the allotment. Students may contribute $5 or $10 initially, and then increase the amount to $15, if they choose, after a minimum of 57 paid days in the Job Corps program.

c. Allotments must be paid according to procedures specified in Exhibit 6-2​.

d. Students must be advised that the personal allowance and transition allowance will be reduced by the amount of their designated allotment(s).

Exhibit 6-2 Student Allowance and Allotment System
Exhibit 6-3 Student Transportation