<p>I got this offered to me and its about $1,000 a semester. Now I work a job and then what? I get the $1,000 and I still pocket the money I earn from the job? Or is the $1,000 the money I get from working the job... like a salary I guess.</p>
<p>You have to find a WS job and apply for it. This may be on campus or in some cases off campus (my daughter works at a govt lab for her WS).</p>
<p>You work at the job.</p>
<p>You will get a paycheck based on the # of hours you work and the pay rate. At my daughter’s school the paychecks are every other week.</p>
<p>WS is taxable income for state and federal taxes but not for FICA.</p>
<p>WS earnings are not held against you in calculating the next years EFC (non WS earnings have a certain amount of income protection - @$3800 this year - then 50% over that goes to the EFC).</p>
<p>Federal Work Study is money the Feds give to subsidize the work you do. Thus, you get paid $7/hr, but it only costs the school $4/hr (feds pick up the difference). Note: These numbers are only hypothetical, but are representative.</p>
<p>The theory is: The cheaper it is to employ you, the more likely the school is to create a job for you. Note: This is exactly the opposite argument politicians make regarding the effects of raising the minimum wage. Supports say that raising the minimum wage will not result in lost jobs. I guess dropping it (federal subsidy) increase jobs, but raising it doesn’t.</p>
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But FAFSA doesn’t ask you whether the income is from WS or not, and yet it spits out an EFC by assuming that it’s real income.</p>
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<p>Yes it does. The AGI includes the WS as income (and also any taxable scholarships/grants). Then in question 46c FAFSA asks what amount of WS was included in the AGI. In the formula the amount that is WS reported in 46c is deducted from the student AGI before the EFC is calculated. So if the total AGI was $7,000 and $3000 was from WS, only $4,000 is considered by the EFC formula.</p>