siuDE.com

Bigger paychecks mean bad news for students counting on federal work-study wages this summer.

Minimum wage in Illinois increased from $6.50 to $7.50 in July 2007, which may put low-income students in financial checkmate.

Billie Jo Hamilton, director of the Financial Aid Office, said the wage increase caused the university to expend their federal work-study budget in the fall and spring, leaving none for summer 2008.

"Unfortunately, we don't get additional federal funding to cover it when minimum wage goes up," Hamilton said.

Without work-study funds, the university pays student workers' wages. Those wages are included in students' estimated family contribution for financial aid purposes, thus decreasing the amount of financial aid for which the student is eligible.

Chuck Lewis, a sophomore from Herrin studying psychology, said he makes good money working at McDonald's in the Student Center. Lewis said his employer is hiring new people and cutting back on overtime, which he said has hurt him financially.

If he receives less financial aid, he said he might have to get another part-time job or take time off from school to put aside money.

"Students who need that money are either going to have to drop out and go to community college or move somewhere cheaper," he said.

Kelli Nugent, a freshman from Chicago studying education, said she would have to transfer to a community college if she received less financial aid. She said it is hard for her mom to help her because her brother is in private school.

"I really, really am worried because I've already got $7,000 in student loans," she said.

Hamilton said the university receives about $2.4 million each year in federal work-study. Last year, before the minimum wage increase, $180,000 of that money was paid in the summer semester, she said.

Illinois minimum wage will continue to increase 25 cents each year until it reaches $8.25 in 2010.

Brandy Oxford can be reached at 536-3311 ext. 255 or brandy_oxford@siude.com.

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