Work Smarter, Not Harder
Things students must consider before seeking employement
For most students, college is a time for being scholarly, adventuresome, and flat-out broke. Hey, you're not called Starving Students for nothing. To combat the cash crisis, 40 percent all full-time college students and more than 80 percent of all part-time students earn while they learn, according to the Bureau of Labor Statistics. While having cash for necessities such as books, groceries, and the occasional night out is undoubtedly nice, what many students don't know is that a paid job or internship, even a part-time one, can secretly affect your financial aid eligibility.
According to the rules of federal financial aid, working students may earn up to $3,000 per year without penalty. For every dollar earned above the $3,000 mark, students lose $.50 in federal financial aid. That means students who draw $5,000 per year in income also lose $1,000 of government scholarships or loans. Yikes! Thankfully there are a couple of ways to avoid getting fiscally punished for working hard. Here's how to earn without getting burned:
Work-Study Positions: Though you won't be making the big bucks, students who land work-study jobs won't lose a dime of their financial aid package either. Available at approximately 3,400 institutions across the nation, the federal work-study program provides qualified students with part-time positions (usually requiring 10 to 15 hours per week) in departments throughout their college or university. Most work-study positions pay hourly rates just above minimum wage; however, students frequently have flexible schedules and the ability to take time off for holidays and exam cram sessions.
Federal Community Service Programs: A second way to cash in without subtracting from your aid award is to join a federal community service program such as Americorps, the Peace Corps, or Teach for America. In addition to gaining résumé-building work experience and stories to last a lifetime, students who sign on to any of these programs also receive a living stipend and an educational reward of up to $9,450 that won't affect your financial aid package. Students with federal Perkins Loans, listen up. As an additional reward for your service, all three programs offer qualified students the opportunity to knock 15 percent off of their Perkins Loan just for signing on.
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