Is Work-Study Considered Financial Aid?

Work-study is a type of financial assistance designed to help students pay for educational expenses. Unlike grants, which do not need to be repaid, or loans, which must be repaid, work-study provides funds through part-time employment. The money earned contributes directly to covering college costs, making it a distinct yet integrated component of a student’s overall financial aid package.

Understanding Federal Work-Study

The Federal Work-Study (FWS) program is a federally funded, need-based financial aid initiative that offers part-time employment opportunities to students. This program allows students to earn money to help cover their educational expenses. FWS differs from grants and loans because the income is earned through work.

FWS aims to provide students with demonstrated financial need the chance to work and gain experience while pursuing their education. Jobs are often located on campus or with approved non-profit organizations, sometimes aligning with a student’s field of study or involving community service. Funds are paid directly to the student based on hours worked, similar to a regular job, helping manage daily living expenses like food, transportation, and supplies.

Qualifying for Work-Study

Eligibility for Federal Work-Study is determined through the Free Application for Federal Student Aid (FAFSA). Students must demonstrate financial need, meaning their Cost of Attendance (COA) exceeds their Expected Family Contribution (EFC).

Additional requirements include enrollment in an eligible degree or certificate program, maintaining satisfactory academic progress, and being U.S. citizens or eligible non-citizens. Not all educational institutions participate in FWS, and funding is limited. Awards are communicated as part of the official financial aid offer; early FAFSA submission can increase the likelihood of receiving an award.

Receiving Work-Study Funds

A work-study award indicates the maximum amount a student can earn, not a guaranteed lump sum. Students must actively seek and secure a work-study job, often through their school’s career services or job boards. These positions require students to apply, interview, and be hired.

Once employed, students work assigned hours and submit timesheets, receiving regular paychecks directly from the school or employer. This earned income is subject to federal and state income taxes, and students receive a W-2 form for tax filing. FWS earnings are generally exempt from FICA taxes (Social Security and Medicare) if the student is enrolled full-time and works part-time. These earnings typically do not reduce a student’s eligibility for financial aid in subsequent years. Limits exist on the number of hours a student can work and the total amount they can earn, determined by their financial aid award and school policies.