Work study is a type of financial aid available to undergraduate and graduate students that does not have to be repaid.

Federal work study is a type of financial aid awarded to undergraduate and graduate students who apply through the Free Application for Federal Student Aid (FAFSA) and qualify based on financial need. Most four-year academic institutions offer a work-study program.

When the institution sends the financial aid award letter to the FAFSA applicant, the letter will state whether the student has qualified for any funding through the work-study program.

• FAFSA: www.fafsa.ed.gov

How does the work-study program work?

Students who decide to accept work-study funds submit their response to the financial aid award letter indicating that they are accepting the funds. They apply for employment on campus and, if hired, are able to earn income tax-free up to a certain amount. The employer pays part of the student’s income, and the work-study program pays the other part.

The amount of money a work-study employee can make depends on many factors, such as:

• The maximum amount of funds available to that student, based on the award

• The type of job the student gets and the student’s experience level

• The student’s schedule

Work-study positions are usually on-campus jobs at places like the library, bookstore or dining hall.

When the student is paid, he or she receives a paycheck at least once a month. Work-study participants can deposit these funds and use them to pay for education costs. Work-study employees also can request their paychecks be sent directly to the college or university. The federal government does not include pay from work study as income, unless the student earns more than the amount stated in the financial aid award letter.

Where do I find a work-study job?

The best place to look for work-study positions is through the institution’s job bank, financial aid office or campus employment office. Employment is not guaranteed for work-study students — you must find and apply to positions just like non-work-study applicants.

Often, the financial aid office will help you get work-study employment interviews, but it is up to the employer to decide if you are a good fit for the position. The job interview process can be time consuming, but since the school sponsors work-study, it’s often easier for work-study students to find a job than those applying on their own.

Do I have to pay back work-study funds?

Work study is a form of financial aid that does not have to be repaid. But, there are some requirements to maintain your work-study funding status.

Often your work-study status depends on maintaining a certain academic standing — keeping up your grades and attending classes regularly. When you take on a work-study job, you have to make sure you can balance the demands of working part time with your course load. If you decide to take on work study, be sure that you plan your classes accordingly so that you are able to manage both.

You don’t want to get in a situation where you feel overworked and aren’t able to keep up with your studies. If your grades fall or you miss too many classes, you might lose your work-study support.

Words to know

Unsure about something you read? Many of the financial terms you came across in this article are defined in our financial glossary. A-Z Glossary

Links we like

Here are a few online resources you might find useful:

• FAFSA: www.fafsa.ed.gov
• U.S. Department of Education work study:
  www2.ed.gov/programs/fws/index.html
• Student Aid work study:
  studentaid.ed.gov/students/publications/student_guide/2010-2011/english/typesofFSA_fws.htm