Many students benefit from work-study.
Federal work-study reach is broad, with more than a half-million students participating in the program annually. The federal government spent nearly $1 billion on the program during the 2016-2017 school year, allocating funds to colleges and universities, according to the most recent data from the Department of Education. Under the program, federal funds usually subsidize up to 75 percent of students’ wages and institutions fund the remaining portion. But there are instances where the federal share can be as much as 90 percent. Here are 10 things to know about work-study.
Work-study is awarded as part of financial aid.
To be eligible, students must demonstrate that they qualify for federal financial aid through the Free Application for Federal Student Aid, known as the FAFSA. Typically, students receive work-study as part of their financial aid package. Work-study is available to full- and part-time undergraduate and graduate students.
Not all work-study positions are on campus.
The aim of the federal work-study program is to provide financial assistance to students. While there are work-study opportunities on campus, some schools partner with nonprofit organizations, public agencies or for-profit employers. In recent years, universities have added work-study jobs with a community-service focus, says Elizabeth Milam, senior associate director of financial aid at Clemson University in South Carolina. For example, she says, Clemson partners with local elementary schools through America Reads and offers work-study positions as literacy tutors.
The number of work-study jobs may be limited.
Among the more than 3,000 colleges and universities that offered work-study to at least one recipient in 2016-2017, around half of institutions offered it to more than 100 recipients that year, Department of Education data show. Under the current structure, which requires institutions to fund a portion of work-study, there are sometimes more opportunities offered by private four-year institutions compared with large public National Universities. For example, Syracuse University in New York, a private institution with around 15,000 undergraduates, received nearly $2.5 million in federal funds for the 2016-2017 year, with the school awarding nearly 3,000 students a work-study position. San Diego State University, with nearly double the number of undergraduates enrolled, received roughly half that amount and awarded work-study to nearly 800 students that year.
Being awarded work-study doesn’t guarantee a position.
While some schools match students with a work-study position, other institutions require recipients to find and apply for positions on their own just like any other job. At the University of California–Berkeley, being awarded federal work-study in a financial aid letter means you’re eligible to apply for one of these positions.
Funds aren’t applied to your tuition bill.
While work-study often appears in a financial aid letter, these funds are earned in the form of a paycheck. College financial aid directors say funds earned through work-study are best used to help students with educational expenses like books, transportation or living costs. “Most colleges make it clear that [federal work-study] funds are not applicable to tuition, as students are paid weekly [or] biweekly for the actual hours they have worked. And tuition expenses are typically due prior to the start of the semester,” says Mark Stephens, director of financial aid at Pace University in New York.
You’re not guaranteed work-study from year to year.
Several factors determine work-study eligibility. If a student’s family income increased, for instance, it could affect his or her ability to qualify on the FAFSA. Other factors include whether the student utilized a previous work-study award and how much funding the school receives that year for the program. Experts say students who file the FAFSA early increase their odds of being offered work-study.
Hourly pay is at least minimum wage.
While students will earn at least the federal minimum wage of $7.25 per hour, pay is determined by the school. At Cleveland Community College in North Carolina, for example, students earn $9 an hour for work-study employment and are paid once a month.
The number of working hours may vary.
College and universities set the hours for work-study employment for their students. Under the program, students typically work no more than 20 hours a week during a semester since it’s intended to be part-time work. Sometimes students will exhaust their semester’s work-study allotment by working only 12 hours a week. At Bates College in Maine, “Most students can earn their entire study award by working an average of eight to 12 hours per week during the academic year,” according to the institution’s website. Students aren’t allowed to exceed the allotted hours from their financial aid award.
Financial aid eligibility isn’t affected by work-study earnings.
A perk of work-study is that the earnings, unlike with other types of employment, don’t count against a student when completing the FAFSA. “Federal work-study earnings are backed off the Free Application for Federal Student Aid, FAFSA, so the income does not jeopardize future financial aid eligibility,” Milam says.
Earnings are subject to state and federal taxes.
The money a student earns from federal work-study is generally subject to federal and state income tax. But the earnings are usually exempt from FICA taxes if the student is enrolled full time and works only part time. Experts say students should also be sure to report amounts based on the calendar year on their taxes, not the amount they earned during the school year.
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10 Facts to Know About the Federal Work-Study Program originally appeared on usnews.com
