34 CFR §675.23

1. (a)An institution may use up to 25 percent of its FWS allocation and reallocation for an award year to pay the compensation of FWS students employed by a private for-profit organization.
2. (b)If a student is employed by a private, for-profit organization—
   1. (1)The work that the student performs must be academically relevant to the student's educational program, to the maximum extent practicable; and
   2. (2)The private for-profit organization—
      1. (i)Must provide the non-Federal share of the student's compensation; and
      2. (ii)May not use any FWS funds to pay an employee who would otherwise be employed by that organization.