<p>I've been working for $30 to $40 a week since freshman year, paying for a lot of my personal expenses (it's a long story). Today, I was offered a job that would earn me $180 a week. I've been waiting for a job like this for a long time because I've been struggling to keep myself afloat financially. My parents do not want me to take the job because they believe I will earn too much and that I will not receive any financial aid when applying to college.</p>
<p>My mom believes that the money I earn would not only be taxed but would also be deducted from my financial aid, but that would mean that there would be no point in working and getting a job. My dad wants me to keep living on $40 a week because it wouldn't be taxed as heavily and because it wouldn't be deducted from my financial aid.</p>
<p>“Income protection allowance” of FAFSA shields a portion of student’s income from the financial aid calculation and is not counted towards the EFC.</p>
<p>For the 2012-2013 academic year, the FAFSA’s income protection for dependent students is $6,000, from 2011 earnings.</p>
<p>The student’s income protection allowance likely stays at $6,000 for 2013-2014.</p>
<p>You can earn up to $6,000 without affecting student aid.</p>
<p>However, where is that money going to go? If it’s sitting in your savings acct when you file FAFSA, then that could hurt you. But if it’s spent on a car, or family expenses, or your expenses, then it won’t.</p>
<p>Thank you so much for your replies! I’m not going to get much into details, but my parents and I have been intensely arguing over whether I should be making so much money and it’s oddly comforting to read your opinions on the matter. </p>
<p>I’ll likely be using the money on the job on personal expenses such as food, clothing, college dorm stuff, etc. Thanks for that heads up, mom2collegekids.</p>
<p>Well, stop arguing and show your parents this thread. As long as you earn less than $6k each year, no effect on your aid. If you earn more than $6k, then every dollar you earn in excess of that $6k will have some affect on your EFC (but not dollar for dollar). For instance if you were to earn $7k, then the extra $1000 might cause your EFC to increase by $500…but the fact remains that you earned $7k, so in reality, you’d be able to afford to pay $500 towards college, right???</p>
<p>That said, earning $180 a week will be about $9,000. so, that extra $3k will affect your aid by about $1500, so be sure to be prepared for that…(doing the give the parents money idea). </p>
<p>It’s ok if you earn $180 a week between now and New Years Eve, because you won’t have earned that much in 2012. However, if you earn 180 per week in 2013, then you will earn $9k. </p>
<p>I’m concerned that you’ll be working too much and it will affect your grades. Can you work less hours in 2013…maybe earn about $110 per week? </p>
<p>As for your money being taxed…someone here can give an exact number, but you really won’t owe federal income taxes on the first few thousand you earn. Even if some is withheld, you’d get it back when you file. </p>
<p>You will still come out ahead if you work.</p>
<p>However, it sounds like you’ll be earning more than you’ll be spending, so do this. Give your parents X amount each week to go towards basic expenses that they pay for you. then have them put the same amount into THEIR savings. As long as THEY (the parents) don’t have more than about $40k in savings, that savings won’t hurt your EFC either.</p>
<p>Most important of all, your parents need to know that the vast majority of colleges and universities do not meet the need of all of their students. Even if your increased earnings would mean that you no longer qualify for a Pell Grant (free federal money) or some state grant that is income dependent, it is almost certain that you are much better off making (and saving) more money than you would be by earning less.</p>
<p>Please show your parents this thread (as well as many others on the CC Financial Aid site). There are so many reasons to earn as much as possible now and very few legitimate reasons to not work (as long as your grades don’t slip).</p>
<p>In the worst case, 50% of the money you earn will go to your college’s EFC and 20% will go to taxes (Social Security and federal/state income tax). That means at least 30% of your earnings you will keep - without considering the waivers on your initial earnings.</p>
<p>College will most likely not meet your EFC. You will need money. The best approach is to start now.</p>