How Does Federal Work-Study Work?
Unpack Federal Work-Study: a comprehensive guide to understanding this financial aid program, from securing eligibility to managing your earnings.
Federal Work-Study (FWS) is a federal financial aid program designed to assist students in covering their educational expenses through part-time employment. The program operates on a need-based system, meaning eligibility is determined by a student’s demonstrated financial need. FWS offers a way to gain valuable work experience while managing academic commitments.
Determining Eligibility and Award
The journey to receiving Federal Work-Study begins with completing the Free Application for Federal Student Aid (FAFSA). This application serves as the primary tool for assessing a student’s financial situation and determining eligibility for various federal student aid programs, including FWS. Students must indicate their interest in Federal Work-Study on the FAFSA to be considered for the program.
A student’s “financial need” is calculated by subtracting their Expected Family Contribution (EFC) and any other financial aid from the institution’s Cost of Attendance (COA). The COA encompasses tuition, fees, room and board, books, supplies, and other educational expenses. The financial aid office at the student’s college or university then reviews the FAFSA data to determine if they qualify for FWS based on this calculated need.
An FWS award represents the maximum amount of money a student can earn through the program during the academic year, not a direct grant or a guaranteed payment. Students are typically notified of their FWS award through their official financial aid offer letter from the institution. This award amount is subject to the school’s funding levels and the student’s financial need, and it does not guarantee employment; students must still secure a position.
Securing a Work-Study Position
After receiving an FWS award, the student must actively seek and secure an eligible work-study position. Colleges and universities typically provide resources to help students find these jobs, such as campus job boards, university career services websites, or direct postings from the financial aid office or specific departmental listings. Some schools may use online platforms like Handshake to list available FWS opportunities.
Work-study positions can be located both on campus and off campus. On-campus roles often include working in the library, administrative offices, academic departments, or laboratories. Off-campus opportunities are usually with federal, state, or local public agencies, or certain private non-profit organizations, and the work performed must serve the public interest. Some institutions may also partner with private for-profit organizations for FWS jobs, but these must be academically relevant to the student’s course of study.
The application process for FWS jobs generally mirrors that of any other employment opportunity. Students may be required to submit a resume, a cover letter tailored to the specific position, and participate in an interview with the prospective supervisor. It is important for students to understand the job duties, the expected work hours, and the supervisor’s expectations during this process.
Understanding Your Earnings
Once a student secures and begins an FWS position, they are paid an hourly wage. Undergraduate students are almost always paid by the hour, while graduate students may be paid hourly or receive a salary depending on the role. Payments are usually made directly to the student, often through direct deposit, similar to a regular paycheck. This direct payment allows students flexibility in how they use their earned funds, whether for tuition, books, living expenses, or other needs.
Students are limited by the total FWS award amount for the academic year. Once the student has earned the full amount of their award, they must stop working under the FWS program. Tracking work hours is essential, and students submit their hours through an online timesheet system for supervisor approval. Paychecks are usually distributed on a regular schedule, such as bi-weekly or monthly.
Federal Work-Study earnings are considered taxable income, and students receive a Form W-2 for tax reporting. FWS earnings are exempt from Federal Insurance Contributions Act (FICA) taxes (Social Security and Medicare) if the student is enrolled at least half-time and works less than full-time. FWS earnings do not count against a student’s financial need in future FAFSA calculations, preserving eligibility for other financial aid.