ED Announces Partnership With NASFAA to Connect Work-Study Jobs to Career Goals
The U.S. Department of Education announced yesterday it is partnering with NASFAA and other stakeholders on a White House initiative to encourage campuses to use the Federal Work-Study program to place students in positions related to their learning and career interests and goals.
The Federal Work-Study announcement was just one part of a multifaceted "Startup America" initiative launched by the Obama administration to coordinate the country’s entrepreneurs, corporations, universities, foundations, and other leaders, with a wide range of federal agencies to increase the prevalence and success of America’s entrepreneurs.
"Connecting students with small businesses and local startups – whether budding businesses or new social ventures – related to their college experience is one way to achieve this goal while also helping students develop skills for starting a company or a non-profit organization of their own," the Department says in a fact sheet about the initiative.
The Department also highlighted Income-Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF) as ways to make student loans more affordable for entrepreneurs. A new webcenter on studentaid.ed.gov encourages entrepreneurs to contact their loan servicer to take advantage of IBR.
"Your most recent tax return may reflect an income that is significantly higher than your current income – for example, if you recently lost your job or you have started a new business," the webcenter states. "In these situations you should inform your Federal student loan servicer of the change in your financial circumstances. Your servicer can then determine your IBR payment amount based on alternative documentation of income you provide that more accurately shows your current income."
"NASFAA is pleased to work with the White House, the U.S. Department of Education and others to maximize the effectiveness of the Federal Work-Study Program," said NASFAA President Justin Draeger. "More than 2,000 campuses administer nearly $1 billion a year in this critical student aid program that provides part-time work to students to help pay for college. Research has shown that FWS programs increase the chances of student success and it can help minimize the amount students have to borrow. Getting students focused on career goals and entrepreneurship while they earn money toward a degree is a win-win."