<p>I received a $3000 outside scholarship that I can use either to reduce my student contribution from the summer or my federal work study. My question is if it is better to reduce the student contribution. If I reduce my student contribution, I will have to pay $3000 less upfront and then will get the extra $2000 I will earn from federal work study throughout the year, right? Whereas if I eliminate my work study, then I won't get that $2000 throughout the year and will only pay $1000 less for my student contribution instead of $3000 less. So basically, I will be paying more student contribution and losing out on a chance of a $2000 paying job. I'm sorry, but I don't understand how work study works clearly, and was wondering if my above thinking is true. What should I use my scholarship for?? Thanks for any help!</p>
<p>I would use your outside funds to reduce your summer contribution. Having a work study job makes you more employable on campus, and employed students tend to have better grades and study habits (Perhaps because some of them are in their field of interest or in libraries where they can study?). This also gives you the freedom to take a non paying job during the summer, and in this economy, that may be the only way to find something that pertains to your interests. (BTW, I don’t know how the work study would be applied to your expenses, my thinking is based on maximizing work experience for that after graduation job!).</p>
<p>I would also reduce the summer contribution. You can still work and save money in case you can’t find or handle the work study job. Unlike regular employment, work study will not contribute to your EFC for the following year.</p>