There’s no feeling like the feeling of finally getting your financial aid package. Congrats!
As you’re going through your financial aid package, you might see something along the lines of “Federal Work-Study” and an amount attached to it. What exactly does that mean?
In this article, we’ll break down what federal work-study is and if it’s a good idea to accept it.
What Is Work-Study?
Work-study is a federal aid program that provides part-time jobs to undergraduate and graduate students with financial need. While work-study aid won’t completely cover the cost of college, it can help you lower the amount you need to borrow.
Who is Eligible for Work-Study?
To qualify for work-study, you must demonstrate financial need, which is determined by the information you provide on the FAFSA. Both full-time and part-time undergraduate, graduate, and professional students are eligible for the work-study program.
That said, you may qualify for work-study but be ineligible to receive it if your school does not participate in the federal work-study program. Around 3,400 postsecondary institutions participate.
Additionally, receiving federal work-study aid in your financial aid package does not guarantee you a job in the program. The funds will only be available to you if you secure a work-study job through your college or university.
Jobs in the Work-Study Program
If you receive federal work-study aid, it is your responsibility to find a job within the program if you actually want to receive the funds. The jobs available will differ from school to school, although most schools offer both on-campus and off-campus opportunities.
Some common on-campus opportunities include working as a library assistant, a department receptionist, or as a cashier at your school’s dining hall. Some common off-campus opportunities include working for non-profit organizations and public agencies, providing support in a variety of areas. That said, the exact work-study job you take on will depend on what your college/university offers and what off-campus opportunities are available to you.
Remember, just because you received work-study aid in your financial aid package does not mean that you will automatically get a job. Some schools might match students with a job on-campus or off-campus, but most will require that you seek out these opportunities for yourself. You should speak to your financial aid office to learn more about what the process looks like at your school and what opportunities are available.
How Much Does Work-Study Pay?
The amount of money you make through a work-study job depends on when you applied for work-study, your level of financial need, and the funds your school has for the work-study program.
That said, jobs under the work-study program will pay at least $7.25 per hour, per federal regulations. If the state minimum wage is higher, you’ll earn at least that amount. According to a 2020 report by Sallie Mae, the average work-study award was about $1,847 for students with an eligible job.
Keep in mind that in order to receive the entire amount of work-study aid you are eligible to receive, you must work enough hours to earn it. For example, if you received up to $1,847 in work-study aid, and the wage of your work-study job is $7.25 per hour, you will need to work around 254 hours total to earn the entire aid award. That said, some colleges and universities may cap the amount of hours you can work per week, often to ensure that students can balance their paid work and their classwork. If you have questions about how much you can work, reach out to your school’s financial aid office.
What Can You Spend Work-Study Aid On?
Unlike other forms of financial aid, you’ll be paid directly by check or direct deposit into your bank account. However, you can always opt to have the money credited into your student account to cover the cost of tuition or housing.
Regardless, there really isn’t a requirement to use your work-study funds for anything specific, so feel free to spend your hard-earned money on groceries or other expenses you need to cover.
Should I Accept Federal Work-Study Aid?
Before accepting any aid, weigh out all the financial aid offered to you and accept it intentionally. When it comes to it, accept your aid in the following order:
Scholarships/Grants (free money) → Work-Study (earned money) → Loans (borrowed money)
Always accept loans at the end as they may be more costly in the long run with the accrued interest that will add up post-graduation. Work-study will at least give you an opportunity to fund your education by way of a steady job on or off-campus. The less money you have to borrow, the better.
Frequently Asked Questions About Federal Work-Study
Is Work-Study the Same as an Internship?
No, work-study is not the same as an internship. While work-study is a need-based, federally-run program. Internships are often conducted by public and private companies and do not consider your financial need when hiring. Also, while work-study jobs are always paid, internships are often unpaid opportunities.
What are the Disadvantages of Work-Study?
While there are few disadvantages of receiving work-study aid, some of the commonly reported ones are:
- Jobs may be scarce or competitive to receive.
- Compensation may be lower than other non-work-study jobs on or off campus.
- There may be a cap on the number of hours you can work per week.
Does Work-Study Count as Income on the FAFSA?
Work-study funds are considered taxable income, however, it won’t be counted in the calculations that determine your financial aid eligibility in future years. So, make sure to report earned work-study aid as income, but rest assured that it won’t count against you when filing the FAFSA in future years.
To Wrap Up
Sometimes, participating or not participating in the program might impact a student’s decision to attend a certain college/university. But, you’re taking an important step in trying to learn more about what your aid means before accepting it. Way to be proactive in your collegiate journey!
If you haven’t already done so, fill out the FAFSA as soon as possible. Filling out the form sooner might mean more work-study aid. When it comes to the federal work-study program, it’s important to reach out to your college/university’s financial aid office to determine what jobs are available.