to work or not to work?

Paying for College
1

<p>This is a question for a friend, who is currently an undergraduate in college full-time, not working, and receiving the maximum amount for the Pell grant, plus some merit scholarships from her college. </p>

<p>She is barely paying the bills with her grant money, parents’ EFC is zero, as they are unemployed/disabled.</p>

<p>So my question is, what if another one of my friends could hire her, and she made no more than $5,000 a year working part-time? This amount is under the IRS standard deduction, so for taxable purposes it’s <em>sort of</em> like making absolutely nothing (you’re not taxed on it). </p>

<p>BUT — would it hurt her chances to get the maximum financial aid??? Her gross income would still be $5,000 before deductions. Would that make her own estimated contribution towards her tuition $5,000, even though it’s under the standard deduction amount? I’m not sure how this works, and I don’t want to screw her over!!</p>

2

<p>Any scholarship and/or grant money over and above qualified tuition expenses would be added to her income for tax purposes. That being said, it seems to me that making some money, even if your taxed on it, is better than no money at all.</p>

3

<p>I agree with the above.</p>

<p>Even if she can’t make $5k, then making less would be better than nothing. It sounds like an extra $2k+ per year would help.</p>

<p>How much are her merit scholarships and what are they used for? If they’re used for tuition and/or books, I don’t think they will count.</p>

<p>Would that make her own estimated contribution towards her tuition $5,000,</p>

<p>No…absolutely not.</p>