NASFAA Mention: Ed Dept to Expand Federal Work-Study to Private Sector

"Institutions from all over the country were invited to participate in the department's experiment, which would let them use FWS funds to pay for students' work in the private sector that relates to their fields of study. It would also cover work required through the curriculum, such as student teaching or clinical rotations. Historically, FWS only allowed on-campus employment," Education Dive reports.

"More than 3,000 colleges and universities provided roughly 600,000 students with FWS opportunities during the 2016-17 academic year, the department said in its announcement. But a small fraction — less than one-tenth of 1% — involved off-campus, private-sector jobs. 

The department said it will review factors including retention, completion and students' post-graduation job placements to determine whether they are better served by the expanded uses for FWS funds.


Approximately 617,000 students received FWS in 2016-17, according to an analysis by the National Association of Student Financial Aid Administrators. But only about 44% of the dependent, undergraduate recipients came from families with incomes of less than $42,000, while nearly 41% had family incomes of $60,000 or greater. 

Moreover, a larger share of students at private nonprofit colleges, which tend to have higher sticker prices, participate in FWS as compared to their peers at public institutions, according to an analysis last year by the Urban Institute's Center on Education Data and Policy."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 2/21/2020

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