January 26, 2001

U.S. Clarifies Policy on Billing of Tuition Waivers to Government

By JEFFREY BRAINARD

The Clinton administration this month clarified a policy that allows institutions to bill the government for tuition waivers they provide to graduate students involved in research projects.

University officials had worried that under the old wording, institutions might not be able to recover such costs, and might have to withhold income taxes on the waiver amounts. Their concerns were heightened by a False Claims Act lawsuit, filed against the University of California system, that

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