Unlike other types of student financial aid, the federal work-study program typically accounts for only a small portion of funding sources that families use to cover college expenses.
In 2022, for instance, 20% of families relied on work-study to pay for college, and the average aid amount among those families from that source was $1,531, according to Sallie Mae’s How America Pays for College 2022 study.
But when it comes to paying for college, every dollar counts. Here’s what students and parents should know about the federal work-study program.
What Is the Federal Work-Study Program?
Federal work-study is a form of need-based financial aid that offers undergraduate and graduate students the opportunity to work a part-time job to help cover their educational expenses.
[Read: How to Pay for College Using These Overlooked Strategies.]
The federal government subsidizes a portion of a student’s paycheck — up to 75% — so the employer only has to pay a fraction.
“It’s a great way for schools to hire students at a relatively low cost to the institution,” says Norm Bedford, associate vice president for student financial services at Virginia Commonwealth University.
Who Is Eligible for Work-Study?
Work-study is available to full- and part-time undergraduate, graduate and professional students at participating schools, but not all qualify. Students must demonstrate their financial need by filling out the Free Application for Federal Student Aid, or the FAFSA.
The total work-study award amount that students are eligible to receive depends on several factors, such as when they apply, their financial need and a school’s funding level.
How to Apply for Work-Study
One question on the FAFSA asks students if they are interested in participating in the work-study program. To be considered, applicants must answer “yes” and submit the form by the deadline for each institution to which they apply. Priority deadlines can be as early as November, so experts recommend applying early.
[Read: An Ultimate Guide to Understanding College Financial Aid.]
“There’s only so much financial aid funding available,” Bedford says. “Federal work-study is not an infinite pool of money. Schools only receive so much from the U.S. Department of Education. In order to maximize the money that you have, there has to be a deadline for this.”
Federal work-study is not guaranteed simply because a student has financial need. Like any other job, students have to apply and go through an interview process. Job listings can usually be found on a college’s student employment webpage, which typically indicates what jobs are eligible for work-study.
Additionally, qualifying for the work-study program once does not mean a student can participate each year. Students need to complete the FAFSA every year they want any form of financial aid, as family income often changes and may result in a student no longer qualifying.
Types of Jobs Available
Work-study students typically have jobs on campus, such as in the library, financial aid office or admissions office. However, students can seek off-campus employment at companies that serve the public interest, such as a nonprofit or government agency.
“On-campus jobs may be more accommodating with the demands of classes and the academic calendar and may be more convenient without transportation,” Elizabeth Milam, director of financial aid at Clemson University in South Carolina, wrote in an email.
Work-study jobs tend to be flexible, with students working anywhere between five and 20 hours a week. During school breaks, such as the summer, students may be able to work up to 40 hours in some cases, experts say.
Compensation varies, depending on the skills required and a student’s level of work experience. But schools must at least meet federal and state minimum wage regulations.
Students get paid weekly or biweekly, so work-study money is not immediately available to pay off tuition at the start of the semester, says Shannon Vasconcelos, senior director of college finance and social media at Bright Horizons College Coach, an education consulting company.
“You actually have to get the job and work the hours before you see any money,” she says. “So I tend to consider it more for financing some living expenses throughout the semester or buying books.”
[Read: Financial Aid for Online Programs: What to Expect.]
Work-study earnings do not count against a student when completing the FAFSA for the following year, but the wages must be reported to the Internal Revenue Service for tax purposes. If a student works two jobs, one at Target and the other on campus through a work-study position, for instance, only the earnings from Target would count toward the total income on the FAFSA, Bedford says.
Benefits of the Work-Study Program
There are several non-monetary benefits to the federal work-study program, including gaining work experience and developing necessary workplace skills.
Even if the work-study position is not career-related, it can still help students figure out what they like and dislike in a job. And it also allows students to build connections with their peers and adults on campus.
“The convenience of working on campus, the opportunity to work closely with the college’s staff and faculty and the recognition that FWS employees are students first — these unique aspects of the FWS program enhance its value in college financing and career planning,” Milam wrote in an email. “In addition to earning money for college expenses, many students find their vocational calling.”
Trying to fund your education? Get tips and more in the U.S. News Paying for Collegecenter.
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Facts About the Federal Work-Study Program originally appeared on usnews.com
Update 03/02/23: This story was published at an earlier date and has been updated with new information.
