The average student loan borrower has roughly $38,000 in debt upon completing their degree (Education Data Initiative). Depending on the school you attend and your major, you may have more or less debt.
If this hefty sum of money seems like something you’d like to avoid after graduating college, there are ways of doing so. Namely, Federal Work-Study programs.
These programs are designed to help students attain career readiness and achieve valuable experience while also using this money to pay for school. Unlike financial aid loans, these funds aren’t something you repay, making them ideal for anyone looking for less debt upon graduation.
So should you say “yes” to Work-Study programs? Absolutely! And here’s why.
What Is a FAFSA Work-Study Program?
The federal government offers Work-Study to any eligible students enrolled in undergraduate and graduate programs. These students must be enrolled at least part-time to qualify. Students can also be enrolled in technical or trade schools.
The great thing about Work-Study is that students have flexibility when working. If a student finds something off campus, it might qualify for Work-Study if their school approves it. The job they apply for should be related to the area they’re studying, so keep this in mind if you’re interested in this program.
Work-Study programs offer students real-world experience to help them secure employment after graduation. Through these skills, students can prepare for their chosen career paths, learning time management and responsibility while also earning money to pay for college.
Although students can just look for jobs off-campus, Work-Study programs are ideal as there’s no need to commute anywhere or compete with outside competition.
Who Qualifies for Work-Study?
Federal Work-Study programs are available to any student enrolled in undergraduate or graduate programs. Students enrolled in professional programs also qualify. Regardless of their study area, students must be enrolled part-time to be eligible.
Work-Study is similar to a grant from the government. This type of financial aid is based on a student’s monetary need and their ability to pay for college. This is why students and their families must complete the FAFSA, as this helps educational institutions determine who qualifies for financial aid, and how much.
Several items are considered when calculating a student’s financial need. This includes but isn’t limited to:
- Family size
- Total household income
- The total number of family members currently enrolled in higher education
It’s important not to assume all schools participate in Federal Work-Study programs, as some don’t. The best way to determine who participates is to contact the schools you’re interested in ahead of time and ask.
How Much Does Work-Study Pay?
Students enrolled in a Federal Work-Study program can expect to earn between $16 and $23.50 an hour. This is mandated, so students should not receive less. There are certain instances, however, where students can receive more, but this is typically no more than $25 an hour and this rate must be approved first.
Eligible students who participate in this program are paid a regular paycheck, at least once a month. Depending on the school, a student might be paid weekly or every other week.
Typically, these funds are directly deposited into a student’s bank account, although some people still receive paychecks. Once paid, students apply this money toward their tuition bills. Always check with your financial aid office to ensure how you should use this money to pay any fees associated with attending school.
Do You Have to Pay Taxes on Work-Study Funds?
Yes, Federal Work-Study funds are taxable.
When working with a Federal Work-Study program during the school year, students pay federal and state taxes. However, they don’t pay FICA taxes if they work less than part-time but are enrolled in full-time classes.
Should students continue with a Federal Work-Study program in the summer, so long as they’re not in school full-time, they have to pay state, federal, and FICA taxes on any money they make.
If a student wants to work longer and their employer agrees, they can retain their Work-Study job during break, including summer, winter, and spring.
Federal Work-Study Guidelines
As with any program, there are guidelines for students to follow. In general, students can work a maximum of 15 hours every week, per academic school year. As previously mentioned, they also have to be attending school at least part-time.
Summer sessions are different. Should there be available funds, students can work a maximum of thirty hours a week.
For students to receive Work-Study funds, they have to meet the appropriate criteria. Either the student or their family must demonstrate a financial need. Funds earned from the previous year’s Work-Study program (when applicable) also play a determining factor. Additionally, an educational institution’s amount of available Work-Study funds plays a role.
Are Grades Factored Into Work Study Programs?
Yes, grades play a part in whether students are eligible for a Federal Work-Study program. Each school has specific requirements for a student’s grades and GPA, so always find out what your grades must be to qualify and remain eligible.
Some universities require a minimum GPA of 2.0, but a Federal Work-Study program isn’t the only reason to keep your grades up. Certain majors require a minimum GPA while some higher education institutions award academic scholarships, so always strive for the best grades possible.
Consider Federal Work-Study Programs to Help Pay for College
Should you say “yes” to Work-Study on FAFSA? Absolutely!
Depending on your financial need, you may qualify for a Federal Work-Study program through your college, university, or trade school. This money doesn’t have to be repaid, which makes it ideal for students looking for ways to offset the cost of college. Be sure to complete the FAFSA, as this information is required when determining your eligibility for Work-Study, along with certain types of student loans, grants, scholarships, and more.
For more help understanding Work-Study, don’t hesitate to contact College Funding Professionals. We have the knowledge and expertise to guide you and your family through the entire college application process.
Join our free online Facebook Group to gain access to the best college planning advice anywhere. No matter what questions you have, our resourceful team can help. Call us at 201-285-7890 or send us an email at info@collegefunding.com.