; and (C) the employment— (i) involves less than 25 percent administrative work; and (ii) is for at least 20 hours per week, unless the institution waives such requirement— (I) at the request of the student; or (II) based on a finding by the institution that such requirement presents a hardship in finding a work-based learning position for the student. (2) Funds earned (A) In general Any funds earned by a student (beyond standard living expenses (as such term is described in section 413D(c)(3)(C))) during the qualified period of nonenrollment less than or equal to $2,500 may not be applied to such student’s cost of attendance for the next period in which the student is enrolled. (B) Excess funds Any funds earned by a student (beyond standard living expenses (as such term is described in section 413D(c)(3)(C))) during the qualified period of nonenrollment in excess of $2,500 shall be applied to such student’s cost of attendance for the next period in which the student is enrolled. (3) Definition of qualified period of nonenrollment In this subsection, the term qualified period of nonenrollment means, with respect to a student, a period of nonenrollment that— (A) occurs between a period of enrollment and a period of anticipated enrollment; and (B) the duration of which is no longer than 6 months. . 4204. Flexible use of funds Section 445 of the Higher Education Act of 1965 ( 20 U.S.C. 1087–55 ) is amended— (1) in subsection (a), by adding at the end the following: (3) In addition to the carry-over sums authorized under paragraph (1) of this section, an institution may permit a student who completed the previous award period to continue to earn unearned portions of the student’s work-study award from that previous period if— (A) any reduction in the student’s need upon which the award was based is accounted for in the remaining portion; and (B) the student is currently employed in a work-based learning position.