<p>Hi, I found an on-Grounds job that pays better than most work-study jobs (around 9.75/hr + free "gourmet food", whereas most of the first-year/freshman work study positions go around 7.00 to 8.25/hr). The thing though is that I'm being directly hired by Aramark, so I don't think it's going to take anything out of my work study funds. </p>
<p>Is the fact that none of my work-study funds are used a good thing or a bad thing?</p>
<p>To try to "maximise" my income, I'm going to try to use my work study funds this semester too, but I wonder what will happen when I submit next year's FAFSA, where they will see that I have a part-time job but didn't use a lot of work-study. I'm trying to subsidise my mother's EFC so I don't have to ask her for money ... but if I get loans reduced, I think this will defeat the entire purpose. </p>
<p>On the other hand, if my only work-study is reduced next year (they reduce grants last), this may not necessarily be a bad thing either, but what happens if I want to quit my job in the following years for a higher-paying work-study position? My sister is going to college next year too.</p>
<p>The difference between WS earnings and non work study earnings for FAFSA is that non work study earnings may increase your EFC while WS earnings will not. You have a protected income allowance of $3200 (for 2008-2009 - it will probably increase a little next year). 50% of any student earnings over the protected amount will go toward your EFC. So if your total earnings (excluding WS) for the year will be below the protected allowance then going for the non WS job should not negatively affect your financial aid. if your total earnings for the year (excluding WS) will put you over the protected income allowance then you would be better off with the WS job.</p>
<p>For instance if your total earnings for the year will be $5,000 but this consists of $3000 non WS and $2000 WS then your non WS income is below the protected allowance so no impact on your EFC.</p>
<p>If your total earning for the year is $5000 and it is all non WS then your income is over the protected allowance and your EFC will increase by @ 900 (5000-3200 = 1800. 1800 x 50% = 900). An increase of 900 will decrease your financial aid.</p>
<p>One exception to this - if you qualify for the automatic 0 EFC ( parent income below $20k this school year, $30k next plus they file a 1040a o 1040ez or receive certain means tested benefits) then your income will not affect your EFC.</p>
<p>So this protected income quota is universal (in the US at least) for all schools? Haha I would be happy to earn more than 3200 in non-WS this year, this reassures me somewhat, thanks! I'm just trying to save up for a laptop while I try to obtain a laptop loan, lol.</p>
<p>Also, last FAFSA I was really confused about applying/reporting 1098-T -- I'm not sure if my mother even filed for it this year -- but should I start another thread for that?</p>
<p>
[quote]
So this protected income quota is universal (in the US at least) for all schools?
[/quote]
It is part of the EFC formula used by FAFSA. All FAFSA EFCs are calculated using the exact same formula whatever school you are going to (FAFSA calculates the FAFSA EFC - not the school). If your school uses css/profile then they will have their own way of calculating their EFC for institutional aid purposes.</p>
<p>I think the 1098t should be reported on your tax return not your mothers. If you have any scholarships/grants that exceed tuition/fees/required book then they are taxable income and s/b reported on your tax return (assuming your earnings are enough to file ot that you are filing to get tax refunded). Taxable scholarship/grant money does increase your AGI on your tax return and that AGI has to be reported on FAFSA. However, like the WS earnings, the taxable scholarships/grants are also reported on worksheet C and are deducted from you AGI before the EFC is calculated so as not to negatively impact your EFC.</p>