<p>I'm finishing my junior year and summer (and college) are right around the corner.
I had an interview and got a job for 16.50/hr. I'm very very happy! I plan to work very hard this summer and help my parents in paying for my college and putting away money.</p>
<p>But when applying for need-based financial aid and benefits, will this hurt my chances? I don't want the state/fed government thinking my family is better off than they really are.</p>
<p>Another question, what exactly does the gov look at when I apply for financial aid/scholarship money?</p>
<p>The more money you have in YOUR name, the more you will be expected to use toward YOUR education. Your parents money will have a larger percentage “protected” with regard to calculating an EFC on the FAFSA. Schools requiring the CSS/Profile will look even more closely at how much you all have stashed, and where the money is. I think that such a great paying job is still worth it though. Lots better than working for minimum wage!</p>
<p>Yes, once a student shows they can earn, say, $2K over the summer, the college may expect the student to earn that much every year. But it sounds like you are a go-getter and that may be possible for you. Even with this great summer job, you’re not pulling down huge numbers (in part because you are only working about 12 weeks). I think you should hold your head high and get the work experience. </p>
<p>Good on you, too, for thinking ahead – but please know a lot of this is trade offs. You might knock up some of the Financial Aid numbers because of this salary but then you might, at the same time, be stronger in the running for certain scholarships. You just have to go with your strengths – as you are doing.</p>
<p>So… are you saying it would be better to use/take out my money in my bank when applying for financial aid? I don’t think I’ll be able to keep the same job when I move away to college.</p>
<p>Your financial aid will depend on what you have earned, and what you have sitting in the bank on the date you fill out your financial aid applications. Don’t hesitate to earn money, but keep in mind that you will be expected to contribute a portion of it toward your college costs. You’re still better off earning $2K and paying an extra $1K toward college than not earning any money at all, <em>and</em> the job experience will help you get another good job down the line. That said, if you have any large expenses coming up, it might make sense for you to spend your summer earnings on those things (new computer, etc.) before you fill out the financial aid forms.</p>
<p>Thank you for all the responses! They have been very informative :)</p>
<p>But yes, the experience is what I’m actually looking forward to. Instead of flipping burgers, i will be working at an office! Plus, I’ll be able to earn my own and help my parents out :D</p>
<p>But mathmomvt… instead of spending it on goods/products, what if I just withdrew my money from my checkings? Wouldn’t I be able to get the most out of my financial aid?</p>
<p>If you withdraw the money but still have the cash in the house, you are still required to report that money. You have to spend it in order to not be obligated to report it as a liquid asset.</p>
<p>It’s a balancing act. Of course you can’t spend it <em>all</em> because you will still have to report having earned the income, and on the basis of the income alone, you will be expected to contribute more to your education.</p>
<p>For federal aid, its formulae based, but I dont know exact forumulea.</p>
<ol>
<li><p>Student income, I think about 5K is “protected” 1/2 of excess will reduce aid.</p></li>
<li><p>Student assets – I think 35% is expected to be used. I think assets are as of year end, so if you earn over summer, spend on books etc, it wont be there.</p></li>
</ol>
<p>The student’s income protection allowance is $5250. Any income in excess of that amount is used to calculate EFC.</p>
<p>A student has no asset protection allowance. All money in the student’s name (cash, checking, investments) counts at the rate of 20% in the EFC. The asset amount is a snapshot of asset value at the time FAFSA is filed, usually in January.</p>
<p>Doesn’t this sort of depend upon the student’s EFC range and FA package? Obviously it’s better in the long run for future earnings to take the job. However, if the EFC is right at the Pell Grant line and/or the financial aid package contains need-based aid, you should be careful. If you’re on the edge and you earn over the invisible line, it might push you out of eligibility.</p>
<p>I’m in that exact situation, but I’m an adult with a family and a breadwinner husband. If I earn more than a $1-2K per year, it pushes me out of pell and state grant money eligibility. If I earn more than that, I lose double or triple that in need based aid.</p>
<p>Or is it different for a dependent student/parents?</p>
<p>Yes, the formula is different for independent students vs dependent students and their parents. And yes, anyone at the margin should do the calculation to determine what effect additional marginal income and assets will have.</p>
<p>A dependent student whose parents fall into the automatic 0 EFC formula can earn a million dollars & the EFC will still be 0. However, if the school collects additional information to award its own aid, the million dollars might be a factor in awarding institutional aid. Much hinges on the EFC and on school policies.</p>
<p>You can pay your parents room an board and they can stash it in an account in their names to use for your college costs. That way it isn’t sitting there to be assessed at student rates.</p>