Understanding Federal Work-Study — Earning While Learning

Federal Work-Study (FWS) is a federal financial aid program that helps students earn money to cover their education costs while balancing their academic responsibilities. It provides part-time job opportunities to students with financial need, allowing them to work on-campus or in community service roles. For many students, Work-Study offers a valuable way to gain work experience and reduce their reliance on student loans.

In the 2020-2021 academic year, nearly 640,000 students participated in the Federal Work-Study program, earning an average of $1,800. With the right job placement, you can manage your work hours around your class schedule, making it an attractive option for those looking to support themselves financially while pursuing their degrees.

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What is Federal Work-Study?

Federal Work-Study is a federal program that provides part-time employment opportunities to undergraduate and graduate students with financial need. 

The program aims to help students earn money to pay for educational expenses while gaining work experience. Unlike student loans, Work-Study earnings do not have to be repaid, making it a beneficial option for eligible students.

Who is eligible for Federal Work-Study?

To qualify for Federal Work-Study, you must meet the following criteria:

• Financial need: Demonstrated through the FAFSA, indicating you have significant financial need based on your Expected Family Contribution (EFC) and cost of attendance. For the 2023-24 academic year, students typically qualify if their EFC is below $7,400.

• Enrollment status: You must be enrolled at least half-time (6 credits for undergraduates and 4.5 credits for graduate students) at an eligible institution.

• Citizenship: U.S. citizens or eligible non-citizens are eligible. International students are not eligible for Federal Work-Study.

How do I apply for Federal Work-Study?

To apply for Federal Work-Study, you need to complete the Free Application for Federal Student Aid (FAFSA). Your financial need and eligibility will be evaluated based on the information provided. If you qualify, your school will include a Work-Study award — how much you’re permitted to earn/work on campus — in your financial aid package, and you will be notified of available job opportunities.

Important: Federal Work-Study is not guaranteed even if you are eligible. Funding is limited and awarded on a first-come, first-served basis, so early application is important to secure a Work-Study position.

What types of jobs are available through Federal Work-Study?

Federal Work-Study jobs vary widely and may include:

• On-campus jobs: Positions such as library assistants, lab technicians, or administrative roles.

• Off-campus jobs: You can use Federal Work-Study funds for off-campus jobs if they are with approved non-profit organizations or in roles related to your field of study. Your school’s financial aid office must approve these placements. In 2020-21, approximately 55% of Work-Study jobs were off-campus.

How much can I work and earn through Federal Work-Study?

Your earnings through Federal Work-Study vary based on financial need, the federal minimum wage, and your school's allocation. Generally, you can expect to earn between $7.25 and $15 per hour. For the 2022-23 academic year, the average award was about $1,800.

Typically, you can work 10 to 20 hours per week, depending on your award amount and class schedule. The exact number of hours will be tailored to your Work-Study allocation and job requirements.

Note: You can have multiple Work-Study jobs, but you must manage your total work hours to avoid exceeding the maximum allowed per week. Balancing multiple jobs should not interfere with your academic performance.

What can I use Work-Study wages to pay for?

Federal Work-Study wages can be used to cover various educational expenses. You can apply these earnings toward tuition, fees, books, and living costs. This includes room and board, as these are considered part of your educational expenses.

Typically, you have two options for applying your earnings:

• Direct payment: Often, work-study wages can be applied directly to your tuition bill. This means the funds are sent directly to your school to cover tuition.

• Reimbursement: In some cases, you may receive your earnings as a paycheck and then submit it to your school's financial aid office for reimbursement, which is then applied to your tuition or other expenses.

Note: If you don’t use the full amount of your Work-Study award, the remaining funds typically do not carry over to the next academic year, so it's crucial to manage your work hours to use the entire award within the current year.

Why is Work-Study preferable to a ‘regular’ job?

Federal Work-Study (FWS) has several advantages over a regular part-time job, making it a preferable option for many students:

1. Flexible scheduling: Work-Study jobs are designed to accommodate your class schedule, ensuring that your work hours don’t interfere with your academic responsibilities. This flexibility is often not available with regular jobs.

2. On-campus opportunities: Many Work-Study positions are located on or near campus, reducing commuting time and making it easier to balance work with your studies. This convenience can be a significant advantage over off-campus jobs.

3. Financial aid integration: Work-Study funds are part of your financial aid package, and your earnings are considered part of your total financial aid award. This means you don’t need to report Work-Study earnings as income when applying for additional financial aid, unlike earnings from regular jobs.

4. Income tax benefits: Earnings from Work-Study jobs are not subject to federal income tax withholding, though they may be taxed when you file your annual return. This can result in a more straightforward tax situation compared to regular job income.

5. Focus on educational goals: Work-Study jobs often relate to your field of study or offer professional experience, which can enhance your resume and provide valuable career skills. This is a distinct benefit over many regular jobs that may not align with your academic or career interests.

How does Federal Work-Study affect taxes or other financial aid?

Federal Work-Study earnings are taxable and must be reported on your federal income tax return. Like any other job income, these earnings are subject to federal and possibly state income taxes. Your Work-Study employer will typically withhold taxes from your paycheck, and you'll receive a W-2 form at the end of the year, detailing your earnings and withheld taxes.

While Work-Study earnings are taxed, they usually don't impact your financial aid for the current academic year. However, they can affect your aid for future years since your total income, including Work-Study, helps determine your Expected Family Contribution (EFC) on the FAFSA. To avoid penalties, file your taxes accurately and on time.