<p>My question is whether working too much during the summer will affect/reduce my financial aid package for the following year?
Or is there a set limit of how much I can make before it does start affecting it?
Thanks!</p>
<p>Others can correct me if I’m wrong, but I think a student can earn around $5k (not counting work study money) before it affects EFC.</p>
<p>That said…if you hold those earnings in a student savings acct and the money is there when you file your next FAFSA, that “saved” money could change your EFC. </p>
<p>But, if you’re just going to earn a couple thousand this summer and used the money for books and stuff, you’re fine.</p>
<p>The $5K is what we heard, too that is protected and does not count against your EFC. Also, work study can be in addition to that and does not count toward EFC.</p>
<p>I agree with the 5,000 figure.</p>
<p>does this include before taxes or after taxes?</p>
<p>As a student you have an income allowance of $5250 on the 2011 FAFSA (it might change in 2012). You will report your adjusted gross income, which is line 37 of your Federal form 1040 (if you file it). Adjusted gross income includes earned income and income from investments (dividends, capital gains, etc). This is your before-tax income. If your AGI is greater than $5250, then 50% of your income above your allowance is added to your EFC. So if your total AGI is $6250, then your EFC would increase by ($6250-5250) x .50 = $500.</p>
<p>It depends. It depends on the amounts and it depends on the college and what forms and methodology they use in giving out their own funds in aid. Some colleges do use the figure in determining the student contribution.</p>
<p>Keep in mind that under the Institutional Methodology (IM), there is no allowance against student income, as with the $5250 on the FAFSA. So, if you are applying to a CSS school or looking for institutional aid, schools will consider all student income. However, most of these schools also expect a summer contribution of $2000-$2500 for a summer income contribution on the student contribution of the EFC. CSS schools are going to expect 50% of student income to go towards the student EFC. So, the net result is that a student applying to a CSS school that earns $4000-$5000 in the summer won’t do much to change the “already expected” income contribution of $2000 that the school is already expecting.</p>