Are students penalized for not accepting work study or student loans?

Paying for College
1

<p>Say a student got the following package offer from a college:</p>

<p>Student Loan (Perkins or Stafford): $4,000
Work Study $3,000
College Grant $3,000
EFC (Parent Pay) $20,000</p>

<p>If the student declines the work study and the student loan by finding another way to pay those costs (say, the grandparents kick in $7,000) does that jeopardize the $3,000 college grant? Is the grant contingent on the student accepting the other parts of the deal? (Ignore the EFC for purposes of this discussion–the parents will pay that.)</p>

2

<p>Not that I know of. How it affects the student in subsequent years would depend on the school. How you report the gifted money.</p>

3

<p>You are not “penalized” if you don’t accept your grants/workstudy. However, the college does not make up the shortfall in your financial aid if you don’t accept them. They will want to know how you filled the short fall.</p>

<p>In the event that your g-parents kick in $7000 in gift money, this money is to be reported when you file FA and it does impact your EFC which indirectly may affect your $3000 college grant.</p>

<p>Keep in mind that there are a lot of good reasons to work (remember that there is life after college and you will want to get some work experience under your belt). Your work study obligation will be some where between 5 and 15 hourss a week and the rate of pay. If you are interested in doing research, community service or are interested in a particualar academic area, you could probably be assigned a work study postition in that department.</p>

4

<p>sybbie is correct. I general, you pay the work study part up front and the student is paid for whatever work he/she does.</p>