Part of my D’s aid package was $1500 in work study. When I am determining how much I will have to pay for this year, I take the total cost of tuition that the school sent me, minus the aid award amount they also sent me (which includes the $1500 work study) and that gives me how much I owe the school, right? But if she hasn’t yet earned the $1500, don’t I add that back into the total amount I owe? Am I making sense? Example: if tuition is $50K, aid award is $30K, I owe $20K or do I owe $21500K when trying to budget?
We are budgeted VERY tightly and I really need to understand this, please help - thank you!
It is not much different than a regular job. the only difference is that he will work on campus. It is simply work for pay. It WILL NOT be credited to his tuition bill. He needs to save every penny in the bank so he can then pay tuition with it. There lies the rub.
I am not sure about the very first year. Others can chime in on that. they might defer that portion owed until he earns it. A very good practical question. Otherwise you need to come up with it first only to be paid back by your D working.
No, don’t include the work study in the calculations when to determine how much you will pay for each semester.
$1500 in work study is $50 a week for total 30 weeks in the school year.
It can pay for shampoo, laundry, pizza with friends, a haircut, maybe some textbooks in spring semester if D doesn’t spend it all, but should not be figured into the college budget.
D will have to apply for work study jobs in the fall, get one and work her hours and get a paycheck. It’s not avaiable up front.
But she can work this summer and contribute that amount to the college expenses.
If her ED school is indeed affordable, it needs to be affordable without the workstudy, and if ex’s income goes up, and when costs increase every year.
There is no deferring the amount owed because of work study. There is no guarantee that the student will find a job or earn all the work study money.
Most likely, the work study will be divided $750 for each semester. If your daughter earns $750 in the summer, she can spend some of it in Sept for books and expenses, and then replenish that account with the $750 earned first semester. That way, she’ll always have $750 to start every semester.
My daughter did not find a ws job last semester and this semester she’s on study abroad, so she never got that part of her financial aid.
We considered work study as a source of spending money only. It’s a help because we don’t have to give our son x number of dollars per week for incidentals, and it frees up summer work earnings so they can be used for books and other up front expenses. Plus, he has a cushy job on campus that’s related to his field. We think it’s a great deal.
Payment isn’t deferred because there’s no guarantee a student will get a job or that they’ll show up if they do. So yes, we have to subtract work study from the grants to get an accurate balance.
Your daughter will need to get a job and earn that $1500. She is able to do probably $750 each term. If she has a summer job, and a job now, she should be able to cover that.
Many students use their work study income to cover their own personal spending. In my eyes, that is a HUGE help!!
When you look at what YOU need to pay…you include tuition, fees, room, board, health insurance (if you have to purchase that from the school). Then you subtract her financial aid (not including work study) from the total.
Remember too…she will only get 1/2 of that aid per semester.
One thing you might want to see is if Richmond has a monthly payment plan. We found this to be helped in terms of parent cash flow.
Ok, this summer aside, as far as school goes, when I am figuring out my budget, do I add work study back into what I need to pay the school? If so, why would they do a work study when I could just dole that same $1500 out to her monthly for incidentals? This is so confusing - why is this under aid if I need to pay it to them - it is costing me more?
I am still confused, adding summer into this confuses me even more. She has a school trip for 3 wks in the middle of the summer and is flying to CA to see her grandmother so not sure anyone will want to hire her so let’s leave that off the table. I just want to know if I have to pay an additional $1500 to the school and if so, what is the point in that?
Richmond has a 10 mos payment plan, no insurance requirement, she is on mine anyway. So in my non math brain, if the total costs the school sent me is $50K, their aid award is $30, then I need to budget $20K for 10 months or am I budgeting $21500 for 10 mons? (these are not the real #'s just for ease of understanding).
@austinmshauri You said it doesn’t cost more but you also said if we lose ws I still pay the $1500? Huh? This is SO CONFUSING. I thought I was done w/ all this school stuff! This ws process makes NO sense to me! Yes - I think its good for spending $ for her, she will do it, I get that part but have no idea how if can cost me MORE in budgeting?
Work study is paid out to your daughter directly, probably something like every one or two weeks based on how many hours she worked that period, just like any other job. So you really need to think of that as just a way for her to earn money for her expenses at school, and not as something the school will pay you or you will pay the school.
It’s possible that she could earn more than $1500 during the school year, either by having a second job, or if they let her keep the same job after the work-study funds provided for it are used up (might or might not be possible). If so, she could cover more of her expenses like books and travel, but it probably wouldn’t be enough to contribute much if anything to paying money to the school.
What you owe the school is tuition + fees + room and board minus scholarship and grants. If that’s $20,000, and your daughter has (let’s say) a $5500 direct loan, they will subtract half the loan each semester from your bill. In that case, your first semester bill would be half of the $20,000 minus half of the $5500, which comes to $7250 per semester owed to the school. Probably they have some sort of plan to divide up that figure you owe each semester over several months.
And congrats on your daughter getting a package you can afford (however barely)!
Work study is a federal program that helps fund employment for college students. It is sometimes easier to get certain on campus jobs - or have priority for some jobs too.
Take it out of the aid # when figuring out what you owe the school - especially for year 1.
Just to clarify: Your daughter has to apply for and get a work-study job. And work at it probably 6-12 hours a week. But they are easier to get than regular jobs, because much of what it being paid is subsidized.
Sorry, I meant the up front cost that you pay to the school isn’t more. What might be more is the amount you have to lay out for spending money. It’s easier to get a student to live on a budget if they have to earn the money as they spend it.
Some people seem to be able to save a little work study money to cover books for the following semester. If your daughter can do that then you may save a little by having her work. I think that would be tough on $750/semester though.
Only subtract grants and any scholarships from the school from direct costs (things school bills for like T&F&R&B) don’t subtract the work study, then you don’t have go add it back in.
She was awarded work study based on her FAFSA EFC, but it is not money available now so it should not be part of the calculation.
Thanks everyone but I’m sorry, I don’t understand a thing any of you have said. Its’ beyond me math wise, please talk to me like I am a 3 yr old @Wilson98 when you add the $5500 in the mix you confuse me although I was closer to understanding you until you said that, lol.
They way Richmond does it is give me the # of tuition ($50K in my ex) and gives me the TOTAL aid award (which includes work study, pell grant, sub/unsub loans & university grant) of say $30K so that means ALL aid is accounted for - so that leaves me owing $20K to budget over 10 mons. PLEASE tell me if I add the $1500 to the $20K so I budget $21500? This is the ONLY way my brain can understand this!
Sorry but I do not do math! This is why, my heart races and I cry!