Son has been very lucky to get two paid summer internship offers from two very famous comanies. Pay is very well and he will be working from home on his laptop. Most of the neetings will be on skype. Any air travel expanses will be covered by the company. I am wondering what portion of his income will be claimed by college and result in reduction of college aid. Is there any formula to cacculate it. Appreciate your help.
Situations vary, but if these internships are independent of the school then he should be getting paid directly. This summer income becomes part of the equation when he fills out the FAFSA for the next year and will affect the aid package in that way. Unless the school set up and sponsors the internship, I woudn’t think they have a direct “claim” on any of his income.
what year is your son?
college aid is determined by taxes filed 2 yrs prior. eg: his FA for upcoming 2019/20 comes from his/your earnings in 2017.
Money earned from this summer would affect his financial aid in 2021-22. Maybe he’ll be done with college by then!
Student wages do make a difference on the kid’s EFC if it’s a big amount. So many people here on CC know the technical details . . .
No they are not through college. He is a high school senior who is waiting to know where he is being admitted. Iamm just trying to understand on a income of 1500 per week, how much school will reduce their aid. Is there any formula in FFSA OR CSS PROFILE to calculate this.
$1500 per week will indeed add up to real money. 
From what I’ve read, the FAFSA counts student income and assets more heavily than parents’, so if he earns of $9K or $12K, that will indeed have a substantial impact. But as @bgbg4us said above, it won’t count until his junior year.
For FAFSA calculations see Page 10, the student’s income protection allowance is at least $6,660. Possibly more based on taxes paid or if family has negative adjusted available income.
https://ifap.ed.gov/efcformulaguide/attachments/1920EFCFormulaGuide.pdf
I found a few privates (Notre Dame/Princeton) that seemed to treat student income/assets even more favorably than the FAFSA. You can use the net price calculators of the target schools to get a sense of how different student income scenarios affect the need based aid calculations.
But, does it really matter? If he can earn $1500/week - wouldn’t that experience be more beneficial than losing some portion of that in need based aid? Many scholarship organizations and internship/co-op employers want to see that a student has a work history so positives usually outweigh any loss in need based aid.
In two years, $15000 (for 10 weeks this summer) will be assessed against his EFC at 50%(?)for income and if he still has it as an asset in his bank account, that amount at 20%
The EFC formula for 2021/22 FAFSA hasn’t come out yet.
2019 income would be used for that FAFSA.
In recent years a dependent student had an income protection amount slightly higher than standard deduction before the rest of income was assessed at 50%.
I don’t know if the income protection allowance will increase to match the new higher standard deduction in 2018.
Thanks
How can you send a private message to someone. I have recived many and replied, but do not know how to create one. Thanks
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This is true. If he works 10 weeks (can he work 8 weeks?) and earns $15,000, why wouldn’t spending some of that on college be a good thing?
Curious…how does a high school senior get a summer internship paying $1500 per week? Doing what?
Who pays a rising college freshman $37/hour for a 10 week internship? Is that amount correct???
And it won’t affect 2019-20 aid that was filed already. And when you file for 2020-21 aid, it won’t show up either…except for anything saved, so put that in a 529 and buy necessary items, car, repairs, etc, before filing.
Sounds like a CS internship and sounds like the student is a hotshot coder? That is great money. Any reduction in aid by the school can be offset by the student saving the $$ and paying towards COA. You can’t have your cake and eat it too.
Kind of like our daughter who thought it would be swell if we paid her summer apartment rental while she pocketed her more than sufficient income from her co-op!