What Families Need to Know About This Financial Aid Program
As financial aid award letters begin arriving, you may notice an item called Federal Work-Study (FWS) listed on your student’s financial aid package.
This need-based federal program can offer great opportunities for students. I’m a big supporter of the work-study program, but I’m not a fan of how it’s often presented on financial aid award letters.
Many colleges lump Federal Work-Study in with scholarships, grants, and loans, making the total financial aid package appear larger than it actually is.
Here’s the important distinction:
- Scholarships, grants, and loans are applied directly to your tuition bill.
- Work-study funds are not.
Instead, students earn the money through part-time employment. Because of this, the award amount listed on the letter can make the financial aid package seem larger than the amount that will actually reduce your college bill.
Let’s break down how the Federal Work-Study program really works.
What Is the Federal Work-Study Program?
Federal Work-Study (FWS) is a need-based financial aid program. The student’s eligibility for this program is determined by the information submitted on the FAFSA.
If a student qualifies, the college may include work-study as part of the financial aid package.
The program is jointly funded by the federal government and participating colleges, which means funding is limited.
Federal Work-Study provides part-time job opportunities for students, typically on campus or with nearby community organizations.
Instead of receiving the funds upfront:
- Students work part-time
- They earn wages for hours worked
- Paychecks are paid directly to the student
These earnings can then be used for personal expenses, books, or other college costs.
If you found this information helpful, click the link below to read the full article on Substack and subscribe to our free newsletter!