"For more than half a century, the Federal Work-Study (FWS) program has plugged along, dutifully providing hundreds of thousands of students each year with jobs while colleges benefit from their subsidized labor," Education Dive reports.

"Despite its scale, critics say the program isn't accomplishing at least two of its mandates: helping low-income students afford college and offering positions that match their academic and career goals.

Although the $1 billion in funding for FWS each year is relatively small compared to the $28.2 billion spent on Pell Grants in 2017-18, its time in the spotlight may have come. With momentum building for reauthorization of the Higher Education Act, several policy proposals and industry-backed bipartisan legislation are poised to change the federal student employment program.

The Trump administration is also throwing its weight behind the desire for change, this week announcing a new pilot program that expands how institutions can use FWS funding, particularly with private-sector employers.

...More than half of FWS funds are allocated based on how long a college has participated in the program. The formula also considers students' unmet financial need. However, that still tends to favor higher-priced colleges over less expensive schools whose students have greater need, though in smaller amounts, explains Sandy Baum, a nonresident fellow at the Urban Institute, in her recent report on potential changes to FWS.

That leaves "less funding available for growing schools serving increasing numbers of financially needy students," said Karen McCarthy, director of policy analysis at the National Association of Student Financial Aid Administrators (NASFAA).

...Several policy recommendations and proposed legislative changes could help to write a new future for FWS.

NASFAA put forth more than a dozen such ideas for policymakers, the Ed Department and universities in a 2016 report. They include dedicating a staff position within institutions to improving and innovating FWS, adding peer-mentoring for participating students and using FWS to reduce student debt."

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: 5/23/2019