<p>Hey guys, from my financial package, I have been offered a federal work study program for $1500. I was wondering if I HAVE to work? Or it's a take it or leave it program? Thanks!</p>
<p>You may decline it and come up with the $1500 yourself.</p>
<p>Is the $1500 for the tuition or for my own use (for books, etc)?</p>
<p>You don't have to, but you might want to. If EFC doesn't matter to you and you can make more in a non-FWS job, then skip the FWS. Money earned under work-study is not counted as income by FAFSA. (Actually you fill in any FWS amount on Worksheet C and the FAFSA formula subtracts it from your income.)</p>
<p>For EFC purposes 50% of student income is counted. There are some allowances, however. For 2007 income, there was a $3080 allowance. In addition the student is given an allowance for US & state income tax paid, and social security tax paid.</p>
<p>What this means is that if you make less than $3080 FWS wouldn't matter since your general allowance would mean you have no income for EFC purposes.</p>
<p>However, suppose your income is $6000.
$6000 - $3080 - $520 (estimated taxes) = $2400
FAFSA would expect a contribution of 50%, or $1200.</p>
<p>If $1500 was from work study, the calculation is,
$6000 - $1500 - $3080 - $520 (estimated taxes) = $900
FAFSA would expect $450, a reduction of EFC by $750.</p>
<p>Schools like FSW because the federal government pays a substantial part of your wages. i.e., they get student labor cheap.</p>