Do You Get Paid for Federal Work Study?
Discover how Federal Work-Study functions as a paid employment program, helping students finance their education through practical work.
Federal Work-Study is a program that allows eligible students to earn money to help pay for educational expenses. It is a form of financial aid that provides part-time employment opportunities for students while they are enrolled in college or career school. Unlike grants or scholarships, which do not require repayment, or loans, which must be repaid with interest, Federal Work-Study funds are earned through work, making it a distinct type of financial assistance.
Understanding Federal Work-Study Payments
Federal Work-Study funds are paid directly to the student for hours worked, rather than being applied to the student’s tuition bill upfront. Students receive a paycheck, typically on a bi-weekly or monthly basis, for the hours they complete. The amount a student earns is directly tied to the hourly wage and the number of hours worked, up to the maximum Federal Work-Study award amount determined by their school. While the funds are usually for day-to-day expenses like food, transportation, and school supplies, some institutions may allow students to authorize the school to apply the earnings directly to their account for billed expenses such as tuition or housing.
Determining Federal Work-Study Eligibility
Eligibility for Federal Work-Study is based on demonstrated financial need, determined by information provided on the Free Application for Federal Student Aid (FAFSA). Students must complete the FAFSA annually and indicate their interest in Federal Work-Study. General eligibility requirements for federal student aid apply, including U.S. citizenship or eligible non-citizen status, enrollment in an eligible degree or certificate program, and maintaining satisfactory academic progress. The financial aid office at each school determines the Federal Work-Study award amount as part of the student’s overall financial aid package, considering FAFSA information and the availability of funds.
Securing a Federal Work-Study Position
An offer of Federal Work-Study funds does not guarantee a job; students must actively search for and apply to available positions. Schools typically list Federal Work-Study job openings through their financial aid offices, career services departments, or online university job portals. The process generally involves searching for suitable roles, submitting applications, participating in interviews, and ultimately being hired. Federal Work-Study positions can include on-campus departmental jobs or off-campus community service opportunities with non-profit organizations or public agencies. These jobs are designed to be part-time and flexible, allowing students to balance their work commitments with their academic schedules.
Managing Federal Work-Study Earnings
Once employed in a Federal Work-Study position, students are subject to an earning limit, which is the maximum amount they can earn for the academic year. If a student approaches or reaches this limit, their work hours may be reduced or stopped to prevent exceeding the awarded amount. Federal Work-Study earnings are considered taxable income for both federal and state tax purposes, meaning they must be reported when filing annual tax returns. However, these earnings are typically exempt from Federal Insurance Contributions Act (FICA) taxes, such as Social Security and Medicare, for students enrolled full-time. Federal Work-Study earnings generally do not count as income when determining eligibility for federal financial aid in subsequent years.