As you fill out the FAFSA each year, you may notice a question that asks whether or not you are interested in Federal Work Study (FWS). I never checked this box when I was in school, and to this day it remains one of my biggest financial aid regrets.
Just what is work study, and how can the Federal Work Study program help you pay for college or graduate school? Read on to find out.
Federal Work Study is a form of financial aid
What is work study, exactly? As opposed to scholarships, grants, and loans — which simply require that you meet the eligibility criteria and make satisfactory academic progress — work study requires that you work at a job, either on or off campus, to earn the money.
Like scholarships and grants (but unlike loans), work study is a type of financial aid that does not have to be paid back. Undergraduate, graduate, and professional students in financial need are eligible for the work study program.
Although the rules of the Federal Work Study program state that you can only work part-time, you are guaranteed to make the federal minimum wage, which is currently $7.25 per hour. Additionally, work-study aid is exempt from FICA taxes, which means that your paychecks will be bigger because Social Security and Medicaid taxes will not be withheld.
Benefits of Federal Work Study
In addition to decreasing the amount of loans that you will need to take out to pay for school, there are many additional benefits to the work study program. Here are just a few:
1. You’ll work in a job that interests you.
Unlike most federal aid, which is awarded directly to the student, work-study funds are given to institutions of higher education to be allocated at their discretion. However, one of the stipulations of the funds is that they should be used to provide jobs that are related to students’ courses of study.
For example, you might be assigned to work in the front office of the department of your major. You could also work off-campus in a job that relates to your course of study, depending on the relationships that your university has built with other organizations in your community.
This means your job will be relevant to what you are studying. Beats waiting tables or slinging coffee, doesn’t it?
2. Your employer is required to work around your school schedule.
While most part-time jobs allow you to indicate your availability, there’s no guarantee you’ll get your requested hours. Even worse, taking extra time off to study for finals or an important test could be frowned upon.
This could force you to decide between earning the money you need to pay your bills and doing well academically. Unlike many off-campus jobs, work study employers are understanding of your situation, and they will work with you to come up with a schedule that allows you to put in the hours you need while still succeeding in school.
3. The work takes place during normal business hours during the semester.
Because work study aid is awarded on a semester-to-semester basis, you will not be asked to work during holidays or school breaks. So if you want to go home to visit family between semesters or take the summer off to participate in an internship, you will not need to make separate arrangements with your employer.
Additionally, because most FWS jobs take place on campus, it’s unlikely that you will be asked to work in the evenings or on the weekends. Instead, you can tell your employer when you are on campus and put in shifts before, between, or after classes.
This allows you to use your time efficiently by reducing the need to commute and taking advantage of times when you were on campus anyway.
The downsides to federal work study
Although the work study program has many advantages, there are a few things you need to know in order to make the most out of this program.
1. Funding is limited.
Institutions receiving FWS funds from the government receive a set amount that is awarded on a first-come, first-served basis. Once a college or university’s funds for a particular academic year have been allocated, no more is available until the next academic year.
It’s extremely important to fill out the FAFSA as soon as possible so that you are at the top of your school’s list to receive these funds. If you wait too long, the funding may be given to other interested students, and you may miss out on aid you might otherwise have been eligible for.
2. You won’t make enough to live off of.
If you’re hoping to completely offset your cost of living by participating in this program, think again. You will almost certainly not be offered more than 20 hours per week. And even with FICA taxes withheld, $7.25 an hour is probably not enough to live off of.
Is work study for you?
The program is not designed to fully cover your cost of living. Instead, the aim of FWS is to reduce your student loan burden so you can pay them off faster after graduation, and to provide professional experience in a job that is related to your major.
I know of several students who went on to work for the university as full-time staff members after graduating as a direct result of the time that they spent in the federal work-study program. While it may not be a full-time job while you’re still in school, it can lead to full-time work after graduation.
If you are interested in reducing your student loan burden after graduation, check the Federal Work Study box on the FAFSA. It pays — literally!
Need a student loan?Here are our top student loan lenders of 2018!
|1 Important Disclosures for CollegeAve.
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or Nationwide Bank, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
Information advertised valid as of 11/1/2018. Variable interest rates may increase after consummation.
2 Important Disclosures for Discover.
3 Important Disclosures for Ascent.
Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB) or Turnstile Capital Management, LLC (TCM), which are not affiliated entities. Certain restrictions and limitations may apply. Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. All loan products may not be available in certain jurisdictions. Other terms and conditions apply. Ascent is a federally registered trademark of TCM and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.
* Application times vary depending on the applicants ability to supply the necessary information for submission.
* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
4 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
5 Important Disclosures for PNC.
PNC Bank is one of the nation’s largest education loan providers. For over 40 years, PNC has been committed to helping students and their families make possible the adventure of college.
6 Important Disclosures for SunTrust.
Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.
Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.
SunTrust Bank, Member FDIC. ©2018 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.
7 Important Disclosures for LendKey.
Additional terms and conditions apply. For more details see LendKey
8 Important Disclosures for CommonBond.
A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.
Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.
Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.
Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.
9 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|3.94% – 12.78%1||Undergraduate, Graduate, and Parents|
|3.97% – 12.97%3||Undergraduate and Graduate|
|4.34% – 12.99%2||Undergraduate and Graduate|
|4.12% – 10.98%*,4||Undergraduate and Graduate|
|5.03% – 11.23%5||Undergraduate and Graduate|
|4.12% – 13.13%6||Undergraduate and Graduate|
|4.92% – 10.01%7||Undergraduate and Graduate|
|3.72% – 9.68%8||Undergraduate, Graduate, and Parents|
|4.26% – 12.13%9||Undergraduate, Graduate, and Parents|