NASFAA Mention: How a Student's Job Affects College Aid

"Will working during the summer or at a part-time job hurt a student’s prospects for financial aid? It’s a question that many students ask—and the answer can be confusing," writes The Wall Street Journal.

"To help demystify things, here are answers to some common questions about summer and part-time work and college aid:

...How much can a student earn before financial aid is affected?

It depends on several factors, including whether the student is considered a dependent or independent for financial-aid purposes.

Dependent students applying for aid for the coming school year could have earned up to $6,660 after taxes during calendar year 2017 without affecting their aid eligibility. Single, separated, divorced or widowed independent students without dependents of their own seeking aid for the 2019-2020 school year could have earned $10,360 after taxes without affecting their aid eligibility. The threshold—known as the income-protection allowance—increases each year based on inflation.

For students worried that a summer job might push them over the limit, consider this: A dependent student who works 40 hours a week for 10 weeks this summer and doesn’t work during the rest of 2019 would likely have to make more than $17 an hour before there would be an impact when applying for financial aid for the 2021-2022 academic year, says Jill Desjean, policy analyst at the National Association of Student Financial Aid Administrators.

Generally, most students with summer jobs won’t make enough for their earnings to affect aid eligibility. On average, incoming and returning students earned about $1,500 during the summer of 2016, according to the most recent data from the College Board, which collects this information from CSS Profile, the application used by nearly 400 colleges to award nonfederal financial aid.

'Most students should not be concerned about working over the summer and affecting their financial aid,' Ms. Desjean says. Even if they do surpass the threshold, students will be better off financially by having worked, even if the end result is a little bit less financial aid, she says."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 5/16/2019

View Desktop Version