<p>I've been working as work study since 2012. Last year, I made around $4,200; and combined with my parents' income, our annual household income was about $26,000. My Pell Grant was lowered to $4800 instead of full $5500. This year my parents have estimated to make around $30,000 and I think I make a lot more than last year, maybe $8000 (I had a part-time job during summer and my current school pays their student workers more than my older one). For 2013-2014, my Fin Aid (grants and scholarships) covered my tuition (I don't pay any tuition for 13 credits hour, but pay around $200 if I take 15 credits). My school tuition is around $13,000. So I worry that my Fin Aid will be reduced for 2014-2015 and seriously don't want to get a loan.</p>
<p>Since most of my income comes from work-study, does it still come as income? Can I reduce my income with tuition or any other school-related expenses (like books)? My little brother will attend college next year as well, will it affect anything? I have around $1000 in my saving account, do I have to put that in FAFSA?</p>
<p>Work study income is NOT used in the formula for computing need based aid on the FAFSA. Yes, you include it in income for you…but there is also a question that asks about work study income. You include the amount you earned via work study, and it is deducted from the need based aid calculation.</p>
<p>Your work study Income should NOT affect your Pell eligibility…unless I have something wrong.</p>
<p>In addition, I believe you can earn about $6000 without it affecting your EFC…which is how the Pell is determined. </p>
<p>Are you certain you completed your FAFSA properly last year?</p>
<p>Yes…if you have a balance in your bank account on the day you file your FAFSA, you are required to include it.</p>
<p>With two of you in college, your EFC should be sufficiently low to qualify for your Pell grant, I would think.</p>
<p>I hope someone else will pipe in just in case I am incorrect.</p>
<p>Work Study income does not increase your EFC and will have no impact on your Pell grant eligibility.</p>
<p>When you complete FAFSA, the WS income is included in the student’s reported AGI from the student’s tax return. Another question in FAFSA asks how much work study and taxable scholarships were included in the student’s AGI. This is so that the WS and taxable scholaarships can be deducted from the AGI in the EFC formula before the EFC is calculated. Make sure you answer the questions correctly as asked on FAFSA.</p>
<p>When your sibling is in college at the same time as you, the part of the EFC generated by parent income and assets will be divided equally between the 2 students. The part of the EFC generated by a student’s income/assets stays with that student.</p>
<p>Another important note is that all money earned at your “Work Study job” might not be actual Work Study funds.</p>
<p>Your FA package will specify how much WS money you are eligible for. This is the amount that will be split 75/25 with the federal government. However, your employer might offer you enough hours that you will earn more than this allotted amount. If this happens, the amount that you earn over the FA-specified amount is no longer consdered WS and will impact your EFC. </p>
<p>If your FA package included only $3,500 in WS money, but you earned $4,200 at your WS job, the extra $700 would be considered income to be counted against your EFC. This $700 would have been paid 100% by your employer.</p>
<p>*at least as far as I understood the explanation from our FA office - feel free to correct me if my understanding is incorrect.</p>
<p>That’s the FAFSA question where you enter the amount of work-study income included in AGI on your tax return. With $8000 of income in 2013 you will have to file a return for 2013 if you can be claimed as a dependent on your parent’s return. And you will have a $6260 income allowance(not including work study) before it affects your efc.</p>
<p>Edited to add: If your parent’s AGI is $30k and they can file a 1040a then you would qualify for the simplified means test. That means neither your nor your parent’s assets would be counted. Otherwise, if you know the amount, if any, of your $1000 savings that came from work-study, you don’t need to include that in your assets.</p>