Student Loans: School Loans Vs. Federal Work Study Program?

The basic purpose of the Federal Work Study Program (FWS) is to help provide struggling college students with financial funds that are earned by working at a part-time, school-related job. These funds then go to help the struggling student finance their college education and they are usually paid at the level of minimum wage. School loans are monies borrowed that must be repaid.

How does a Student Get into the Federal Work Study Program?
There are about 3,400 universities that participate in the Federal Work Study Program and this program has helped provide a way for millions of college students to pursue their educational goals. However, in order to be able to enroll in this government funded program, it is up to the financial aid administration board to decide which student can be accepted and enrolled in their institutions Federal Work Study Program.

How is Financial Need Determined for the Student Who Wants to Be Considered for the Federal Work Study Program?
In order for a college student to quality for the Federal Work Study Program their financial need has to be determined. The financial need is determined by the Department of Education and this department bases its calculation on a standard formula created by Congress. This standard formula is used to help evaluate the student’s reported financial information.

How is a Student’s Reported Financial Information Calculated for their Eligibility for the Federal Work Study (FWS) Program ?
The student’s financial information is based on their FAFSA application and by their family’s expected contribution (EFC) to their college education. Some of the elements that are in included in the standard formula are the student’s family household size, the number of other family members that are also attending college, the parent’s income if they are a dependent student and/or their income if they are an independent student.
The family’s expected contribution is based on two different percentages. One of these percentages is the net income percentage. This is acquired when you subtract all the allowances a college student is expected to need for their basic living expenses (food, shelter, etc.).
The other percentage is the net asset percentage which is based on all the assets that remain after you subtract any and all of the student’s asset protection. However, there are differences in the allowances and assessment rates for every student. This is because every student has a different financial background and different financial status.
There are different assessment rates for paternal dependent students, independent students who have living dependents, independent students who do not have dependents and students with established financial opportunities.

How does a Student Apply to the Federal Work Study Program?
The student that wants to be a part of the Federal Work Study Program needs to first file a FAFSA form and get it completed. When their FAFSA form is complete, the student will receive their student aid report (SAR) or the Institutional Student Information Report (ISIR). Regardless of the form received, either form will have the student’s EFC. This number is what will help the university decide which attending student can enroll in the Federal Work Study Program.

I need school loans, what should I do?
Alsways borrow Federal Student Loans before borrowing other types of School Loans. First, learn as much as you can about the different types of school loans. For Federal Loans, visit StudentLoans.gov. Become informed before borrowing! Browse additional school loan informative articles at Finaid.org.