<p>I am currently a junior in high school and need some guidance dealing with financial aid. I am mainly concerned about how my parents would have to pay for my college tuition. In fact, for both me and my twin sister as we both wish to attend University of Texas under financial aid but are quite unclear how FAFSA works. </p>
<p>A little background, me and my sister rank top 7% of our class of 1842 students and are waiting to receive our SAT scores. Only my dad works right now and makes roughly $1800 a month to support six individuals (my mother and his four kids). His paycheck barely supports us which is why me and my sister are planning to get jobs our senior years at Co-op program between our school and the Shell Oil Company. Our coordinator estimated that each of us would receive about $190 each week ($9.5 an hour from 12 PM to 5 PM). I know that FAFSA only allows a student to earn $6000 a year before deducting the amount of financial aid we received. All in all, if me and my sister were to get a job our senior year, will it impact our financial aid eligibility?</p>
<p>I can’t answer your question entirely but I can explain a little about the FAFSA. All the FAFSA really does is take a strong look at the finances of your family and based on that comes up with an expected family contribution. (EFC for short). In your case, it is highly unlikely that you will have much of an EFC at all. Even if you do, however, it doesn’t automatically equate to a dollar for dollar reduction in aid from the school. You would have to ask your individual institution. </p>
<p>Also, the FAFSA rarely has any impact on merit scholarships at all. Your class rank indicates you will likely be eligible for some form of merit aid even at UT. That aid has almost no relationship to your EFC even though you will likely be asked to fill out the FAFSA. </p>
<p>Now on to your specific question - The actual amount this year is around $6250 and quite frankly I would be surprised if you earn that in 2014 if you do not start your coop until August. The FAFSA will be based on your 2014 calendar year income and not your academic school year income.</p>
<p>Let’s go one step further, however and say you work the Spring of your senior year and all summer nearly full time. Then the following year, it is possible your EFC could be impacted by any earnings above that 6200 or so dollars and unfortunately it is a disproportionate amount compared to your parents income.</p>
<p>That said, you also have to keep in mind that the EFC is an imaginary number. It is used to determine Pell grant eligibility and in some schools they will meet 100 percent of need regardless. The EFC does not mean you will have to find that much in cash to attend school - It is simply what the government estimates to be your available money for school. If you have a shortfall that isn’t all that great, a student loan may be a good option.</p>
<p>One final note - Keep in mind that once you get to school, any work study money you earn does not count against your 6250. If you get an outside job, however, it will count. </p>
<p>There is an entire forum here devoted to financial aid questions. Pinned at the top of the thread is a Financial Aid FAQ that you should read. There is also a FAFSA walk through thread.
<a href=“Financial Aid and Scholarships - College Confidential Forums”>http://talk.collegeconfidential.com/financial-aid-scholarships/</a></p>
<p>Your earnings as described will not affect your financial aid. But you will have to contribute a portion of your savings. That is why you should give your money to your parents and have them keep it in a college account for you in their name. Savings in the parent name is assessed at a lower percentage.</p>