If you filled out the Free Application for Federal Student Aid (FAFSA) and received a federal financial aid package offer, you might have noticed work-study as an option provided to you. But it can be confusing as to exactly what that entails and how much money it will actually save you when paying for college.
Here’s everything you’d ever want to know about the federal program and how to maximize the benefit.
What is work-study?
Offered through the government and participating schools, a work-study program provides part-time jobs to both undergraduate and graduate students as part of their financial aid package. Jobs are typically community-service based or centered on the field in which the student is studying, and they can be on or off campus. The money earned from the job goes towards covering college expenses.
But these federal financial aid programs can be confusing. Knowing a few key details is helpful in understanding exactly how the work-study program can reduce your college expenses.
Eligibility for work-study
When you fill out the FAFSA, there will be a box where you can indicate if you want to be considered for a work-study program as part of your financial aid package. Financial need is the main criteria taken into consideration, and you must attend a school that participates in the program.
To increase your chances of getting awarded work-study as an option, it’s best to fill out the FAFSA early, as funds for this program are limited. Only about 500,000 students get offered the opportunity, according to research by the Brookings Institution.
To find out the likelihood of getting work-study and how much you would get, you can use tools such as FAFSA4caster. After inputting your family’s financial information, it will reveal how much work-study you could receive based on national estimates in addition to what other types of aid (grants, federal loans, etc.) you could be awarded.
How the work-study program works
Just because a work-study option is listed on your award letter doesn’t mean you’re guaranteed a job placement or a certain amount of money. The financial aid package might say that you’re eligible for $3,000 worth of work-study, but you still have to find an employer to hire you and secure enough hours to equal that amount.
While there is no minimum or maximum amount awarded, the average work-study award is $1,550, which covers about 16% of the average public tuition and fees. And that amount is not guaranteed from year to year.
You will find out about your exact job and weekly hours once you’re at school. There you will be able to search through work opportunities at the financial aid office or on-campus employment department. Then, like with any other job, you will have to apply and interview for the position. The final decision is up to the employer.
Some schools might have job placement available, but it’s best to be prepared for a job search ahead of the start of the semester.
Types of jobs included in work-study
The jobs are mostly academic or community-related. If the job is on campus, you’ll likely work for the school in some capacity. This could mean you help a professor with research, complete administrative tasks in an office, or work in the school library.
An off-campus job is typically with a private nonprofit organization or a public agency that benefits the community in some way. You could work in childcare or tutoring, for example. In fact, at least 7% of work-study jobs must be community service gigs such as these, according to the Department of Education.
In some cases, schools may have partnered with a for-profit employer, but those jobs would have to be related to your coursework to be considered eligible.
Typical work-study hours and pay
The good news is these jobs tend to have flexible hours to work around your school schedule. The bad news for those eager to rack up the hours is that there’s a limit: You’re only allowed to work the number of hours that’s equivalent to the amount that you’ve been awarded.
So, if you were awarded $3,000 worth of work-study, your combo of wage and number of hours could not exceed that amount. You can only work part-time hours through the federal program, and most students work 10 to 20 hours per week on average.
As for pay, it’s required that you earn at least the current federal or state minimum wage, depending on which is higher. But you could earn more than that depending on the job, skill level required, whether you’re a graduate or undergraduate student, and the amount of funding your school receives.
The only major difference between undergraduate and graduate students is that undergrads are paid by the hour whereas graduate or professional students can be paid by the hour or a salary.
As for when you’ll get paid, your employer has to give you a paycheck a minimum of once a month.
Benefits of work-study vs. a part-time job
You might think you’re better off working a non-work-study job to make more money. While that could be true, there are some things you should consider:
- Although your income is subject to federal and state income taxes, if you’re a full-time student and working less than 20 hours a week, you’re exempt.
- Work-study earnings are not considered traditional income and therefore are not calculated into your FAFSA.
- The government and school don’t dictate how you spend your income.
Maximize the benefits of work-study
There are many ways you can make the most out of your work-study program. First, if you can get a job in your academic field, it can go on your resume as related experience. This could help later on when you’re searching for a full-time position and put you ahead of other candidates. Also, you’ll likely be working with someone who is an expert in this field and therefore can act as a mentor, especially when it comes time to graduate.
Also, since work-study jobs were created to be flexible and fit around your schedule, it might be an opportunity to get involved in extracurricular activities or take on a side hustle to make even more money while you’re still in school.
Lastly, when school is on break, so are you. Knowing you’ll have particular periods of time off can help you plan to visit your family, secure an internship, or apply for another part-time job during those breaks.
Use work-study to borrow less for college
Since no one dictates how you spend your money, you can allocate it to cover any aspect of your life. The program wasn’t created to fully cover a major cost like tuition or room and board, but the money is typically used to cover the cost of living. This, in turn, brings down the overall cost of college, so you might not have to borrow as much in loans.
You can also use the bonus of having a steady income and flexible hours to try other side hustles such as Uber or TaskRabbit. That combined cash flow can ensure you have funds to pay for the more major costs, such as tuition or housing, in real time.
Or you could save what you make in one semester and use it to pay for the next, meaning you won’t have to borrow as much money in the future. This too keeps your overall college costs down.
Alternatives to work-study
Just because you don’t get offered a federal work-study option doesn’t mean you can’t make money while in school and still have flexible hours. There are some alternatives to consider.
1. Another on-campus job
Academic and administrative departments receive money to hire students to help with particular jobs that don’t necessarily fall into the work-study program. Keep an eye out for openings on the school’s job board or talk to your professors to see if they need help with a project.
2. State work-study programs
Usually, your school has to participate in the federal work-study program, but some states actually provide the benefit as well. For example, Minnesota has a state-run work-study program where undergraduate, graduate, and vocational students can work part-time on or off campus to help pay for college. Some jobs are even set up as internships so that you can get the real-life work experience at private institutions as well.
Washington state also has a similar program for low and middle-income students, so be sure to research what types of programs your state has available.
3. Personal side hustle
The rise of the gig economy has made it possible for students to make extra cash while still enrolled in school full-time. Research which opportunities would work best for you, and know that with most of these apps there are no startup costs and you determine the hours.
4. Employer tuition assistance
Instead of working for a school which will give you money to pay for college costs, consider working for an employer who will. There are many companies — AT&T, Bank of America, and Comcast, for example — that have tuition-assistance programs. These programs usually reimburse you for approved educational expenses. Research which companies have these benefits and the time requirement to see if it’s a feasible way to lower your total college costs.
Work-study can help lower college costs
If you’re offered a work-study program as part of your federal financial aid package, you might want to consider it. Research shows that although the award amount is not high, every little bit you don’t have to borrow means you’ll be spending less on your education in the long run.
Plus, if you can maximize your work-study to help secure a more lucrative full-time job or use the flexibility to take on a side hustle, then there’s even more of a benefit than the nominal award amount.
That said, just because you’re offered work-study doesn’t mean you have to accept it. Consider if taking it on is worth your time to bring down college costs.
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|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). 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. Loan products may not be available in certain jurisdictions, and certain restrictions, limitations; and terms and conditions may apply. Ascent is a federally registered trademark of Turnstile Capital Management (TCM) and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.
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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.
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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|
|4.04% – 13.04%3||Undergraduate and Graduate|
|4.34% – 12.99%2||Undergraduate and Graduate|
|4.25% – 11.10%*,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|