Joint Initiative Will Leverage Federal Work Study Program to Encourage Youth Entrepreneurship & Job Creation
Washington, DC -- December 09, 2011 -- NASFAA, the association representing nearly 20,000 of America’s financial aid administrators, announced yesterday that it is partnering with the U.S. Department of Education and other stakeholders on a White House initiative to encourage college campuses to use the Federal Work-Study Program (FWS) to place students in positions related to their learning and career interests and goals. 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.
The Federal Work-Study announcement was just one part of a multifaceted "Startup America" initiative launched by the Obama administration on Thursday 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.
According to an Education Department fact sheet about the initiative, "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 also highlighted Income-Based Repayment (IBR) and Public Service Loan Forgiveness (PSLF) as ways to make student loans more affordable for entrepreneurs. A new web center 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 web center 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."
"The National Association of Student Financial Aid Administrators (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. "Research has shown that FWS programs increase the chances of student success and 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."
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents nearly 20,000 financial aid professionals at 2,800 colleges, universities, and career schools across the country. Each year, financial aid professionals help more than 16 million students receive funding for post secondary education. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators.
Publication Date: 12/9/2011