If a proposal by U.S. Rep Joe Knollenberg becomes law, about 3,500 University students' paychecks will be a little larger.
The bill, which was proposed last week, would make work-study earnings free from federal income tax.
"Tuition costs are rising faster than most incomes," said Knollenberg (R-Bloomfield Hills). "This is a way to ease that burden."
As President Clinton continues to promote plans to expand the Hope Scholarship and Pell Grant programs to help lower-income students, Knollenberg said work-study programs also aid middle-income students who need assistance in paying for college.
"We hear a great deal about the various scholarship programs," Knollenberg said. "But you don't hear about those folks caught in the cracks. This is creating a level playing field between scholarship students, grant students and work-study students."
Knollenberg said that although some may say his proposal will cause the government to lose money, the government will benefit from it in the long run.
"If these students can get their work-study income tax-free, they can get a supplemental job that will increase government revenue," Knollenberg said.
Knollenberg said he hopes there will be bipartisan support for the proposal.
"It should have support from both Republicans and Democrats," Knollenberg said.
Vicki Crupper, interim assistant director of the University's Office of Financial Aid, said that while the proposal is intended to benefit students, it does not have a large effect on most of them.
"Most students who work work-study do not earn enough for which they are required to pay tax," Crupper said.
Under current laws, people who are claimed as dependents may deduct up to $4,000 from their taxable income.
But some work-study students said the extra money every week would be a pleasant surprise.
"I really think it would help me out," said LSA sophomore Michael Anderson, who participates in a work-study program in the Media Union.
Engineering junior Jason Beck, who has held a work-study job, said the tax deduction would not have been an incentive to work more hours.
"I had to work as much as I could anyway," Beck said.
Others, however, believe that the larger paychecks will encourage students to work more.
"It's definitely a bonus for students, although most of them get the money back anyway," said Michigan Student Assembly President Michael Nagrant. "It will certainly encourage students to participate in work-study more."
On 92 college campuses in Michigan, 22,850 students receive work-study funds. The allocation to work-study in the state is more than $24.8 million. More than 945,000 students nationwide participate in work-study jobs.