Daughter received a paid internship offer to work in artificial Intellegence lab. The company is very well known multi national and creating a summer internship program for her in a year before senior year in High school. She did it by proving to the company as she worked on a non paid summer internship. My question as she will be applying for substantial need based scholarship to college starting next year, will it be detrimental in any way. thanks
How much will she earn? Money earned in 2018 will need to be listed on her 2020-2012 financial aid application forms.
If she is applying to college for admission in Fall 2019 then the 2019-2020 FAFSA will be filed…and it will use the 2017 tax return information.
Well exact amount is not know but the recruiter told that she will be paid what other top computer summer interns are paid. Today. One additional company has now asked her to interview also as her last summer internship work is pretty substantive, she attended a AI conference attended by technical directors of fortune 100 companies. She was the only student invited to the conference debating emerging trend in the AI field.
@thumper Will her income be counted or just her assets for that FAFSA year? If it’s income and assets, what is the percentage of each for a student that will be used in the FA calculation?
I would think it would amount to a relatively small amount of money (used for the calculation and included in the EFC) if it is only one summer’s worth of income?
@thumper thanks. Well we have to declare everything anyway. Thanks God I am now filling her financial aid information for prep school, there was no income this year for her.
@LeastComplicated I remember that when my two old daughters worked in summer while in College @ Wall Street, Harvard did not ask more money and keep paying them full financial aid for all 4 years. But that time most of their money went to summer housing and food and transportation. Experience was good as they both joined top companies after graduation. However. this time where the third daughter will be working from home on a lap top and fly in paid by the company that is why I am just asking. but you raise important points and that I am thinking about
When she files the 2018-2019 FAFSA…for college entry fall 2018…her income from 2016 will be used
BUT any money she has in the bank the day she files her FAFSA will be considered HER asset and will be assessed at 20% of its value for FAFSA EFC determination purposes. So…if she has $10,000 in the bank the day she files that FAFSA, it will add $2000 to her FAFSA EFC.
One option would be to put the money into a 529…if she intends to use it for education purposes anyway. A 529 is counted as a parent asset and is assessed at 5.6% of value as a parent asset. That is an option to consider. On $10,000 I believe that would add only $560 to the FAFSA EFC.
Thanks a lot @thumper1, I will ask her to do so.
The long term benefits of that internship probably outweigh any impact on financial aid. Yes, if she is at a college that provides 100% need based aid,then she is going to get somewhat less if she has some savings in a bank account and income over a certain amount… but that internship/employment history is probably going to open a lot of doors.
And you really have no idea what sort of scholarship aid she might get in any event.
@calmom True we have no idea what future brings. When she went to prep school on full need based aid we do wondered what career ahe will pursue. She was a math and science kid, now she has done well in all subject’s, yet she found her calling in computer science. Prep school name has opened doors for her, she works very hard to achieve where she is now. She is very fortunate that she found a mentor to guide her career.
She sounds like she is doing very well and will have wonderful opportunities ahead of her. So I do think she should embrace the opportunity she now has (unless an even better offer comes along). It should open up even more doors for her, as well as increasing her earning capacity during college-- as well as post-college.