<p>It seems like I could work my butt off this summer and make a good deal of money or even try and get multiple scholarships, but in the end these things will be taken into account and my EFC will go up next year. So my question is, if the college is going to only fill so much of a gap, why shoud I work hard or compete for scholarships when I won’t actually be getting ahead?</p>
<p>I’m looking for suggestions for making money that I use to pay off my debt without hurting the amount of $$$ I get in grants next year.</p>
<p>So far, working seems to be ok but I’ve read that if I report (by way of W2) more than $3,000 in earnings the college will just raise my EFC. If I get scholarships, the college will decrease my grants. If I buy and sell stocks, the college will count that income against me and raise my EFC. What can someone do that’s actually productive?</p>
<p>Actually, all the strategies you indicated will be productive.</p>
<p>If you work and earn money – $3,000 is protected from being tapped for the EFC and after that, you can expect that they will be looking for ~50% of the after tax amount. You still come out ahead – If you earn $5000, then you have ~$4000 that won’t be tapped for the EFC. Plus – work-study earnings are also exempt.</p>
<p>many schools allow outside scholarships to be used to offset the loans and/or work-study portion of the FA package after they are applied to the amount they gap you – is that not the case for your school? Outside scholarships won’t increase your EFC, but they will decrease your need.</p>
<p>thx I didn’t think of work earnings in that sense. </p>
<p>As for the scholarships part, from financial aid books I’ve read it sounds like most colleges will decrease the amount of grants that I receive (which are basically automatic for the year) if I work hard and win a scholarship. It seems silly to work so hard for scholarships if I can already get that much from the school just due to my income. My school (and most others from what I’ve seen) ask students to report outside scholarships for just that reason.</p>
<p>brand_182 – many schools use the scholarships to offset the amount they gapped and then apply it against loans. Where do you attend school? Have you confirmed that your grants will be decreased in the case of an outside scholarship?</p>
<p>I don’t know if you attend Wesleyan (it is the location you list) but they do use outside scholarships to offset any loans that are part of your FA package. From their FA booklet: “The University acknowledges the achievement of winners of merit-based outside scholarships by reducing self-help (loans or employment) dollar for dollar. Normally loans are decreased first, but at the student’s request, we will reduce the work component first. Awards not based on merit (such as tuition remission benefits) will reduce self-help only by the first $500. All amounts over $500 reduce Wesleyan gift-aid, if eligible.”</p>
<p><a href=“http://www.wesleyan.edu/finaid/forms/Guide0708.pdf[/url]”>http://www.wesleyan.edu/finaid/forms/Guide0708.pdf</a></p>
<p>This means that if your FA package includes $5000 in loans and you are awarded a $5000 outside scholarship – you would end up with no loans that year.</p>
<p>It seems to me that it would make sense to put some effort into earning outside scholarships – then you would have fewer loans to pay back.</p>
<p>oh wow thank you very much. I will work on getting some scholarships then. :)</p>
<p>You can borrow against the stocks, that would not affect FA, it might be better because it reduces your asset.</p>