Would You Choose Work-Study or Student Loans?

Parent Cafe
1

<p>Ok, I did a tentive (but pretty close to accurate) tax return today and according to the EFC calculator, I have underestimated my parental contribution by about half!!! :@( This has not been a good month…</p>

<p>Our daughter currently works VERY hard to keep her grades in the high 90’s. She is active in extracurriculars that also take a good deal of time. Between these things, she has little time for socializing outside of school, and she is becoming very sleep deprived. In fact, she took some time to relax and go out this weekend, and as a result, was up until 3:30 A.M. Sunday night trying to finish her homework because she underestimated the time needed.</p>

<p>Primarily for these reasons, we have not wanted our daughter to work after school/weekends. She is very low maintenance, makes few monetary demands. She also did not work summers so that she would be free to camp with us and she has assisted in my business or with watching her brother. </p>

<p>I have to say honestly as well that I was not able to handle college and working, although I was raising my daughter. But I also think that I was a better student than my daughter. I tried work study, but was grateful that I was able to drop it without a huge hardship to myself. </p>

<p>The FAFSA asks if we are interested in student loans and/or work-study. While I believe that I can make this increased EFC, I am not at all confident that I can give her anything else. I am self-employed, so this is pretty scary. What is really scary is that the income is not even reflective of my usual output. I am a service professional and I only get paid after the job is done, which can often take a year. I was very ill in 2005 and took on little work in 2005 and 2006 just to manage the work that I already have. Consequently, my income from 2007 is actually money that was owed me for those years. </p>

<p>With the lower EFC, I had intended to pay for a laptop, pay for dorm set-up, send her care packages, pay for trips home, pay for a phone, and the little incidentals. But these are things that are not all at once. However, if I have to fork over all of this money as EFC for tuition and board, this is a problem.</p>

<p>I also did not want her to HAVE to work while in college. Given what I’ve seen here, I have concerns for her taking on college coursework as it is. We expect that she would continue the same extracurriculars and also find time to exercise and make friends. While work study can be a nice opportunity, I am concerned that she will find herself overwhelmed and be unable to put her studies first by dropping work study if needed.</p>

<p>Additionally, we intend to continue having family camping trips in the summer while she is home and would not want to rely on her working during that time. These trips are very important to us. In the past, we put off these kinds of things for the day when we “had more time and money”. But after we dealt with some life-threatening illnesses, we decided that we didn’t want to chance someone not being here when the money came… </p>

<p>We also are not sure if this would change our EFC if she were to work the summer before college.</p>

<p>I am inclined to put “student loans” only on the FAFSA for the reason that we can at least ensure that everything is covered financially, and if I can swing more money, there will just be less debt. </p>

<p>But then again, maybe I should put both, because if I don’t, she definitely won’t have work study as an option. </p>

<p>What would you all advise?</p>

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<p>Work study can work quite well, it only ends up being around 10 hours a week in most cases and the student is supposed to have the ability to request schedule accomodations- such as not working the week of mid terms. My D (Berkeley) with a normal schedule, in a sorority and on a sport team has had no problem with the timing.</p>

<p>My other D who took a very very heavy schedule was less excited by the work study, but she did a double major including a science one in 4 years</p>

3

<p>Say your EFC is $17,000
If your daughter is applying to a school that meets 100% of need- and the cost of attending that school- inc room and board and * possibly* a little for transportation & books, is estimated to be $47,000- if she is accepted the school will meet need of $30,000/</p>

<p>This need will be met by any combination of subsidized/unsubsidized loans, grants & work study.
For instance teh above scenario you might have
$1,000 of Perkins loan,
$5,000 of Stafford loan
$4,000 work study
and $20,000 in grants.</p>

<p>Or since all the schools that meet 100% of need that I know of, are private schools who also have their own forms to identify additional resources, those forms might increase the EFC to $20,000 and then the school will arrange aid for $27,000 instead of $30,000.</p>

<p>Personally- I think workstudy is very valuable- it helps the student organize their time- build skills- often provides a way to meet others on campus and it is critical IMO that the student have a investment into what it takes to provide them with an education.</p>

<p>Obviously your family needs to decide what the priorities are.
Both my kids have worked summers since they were about 14. All summer since they were 16. We still can go camping, we just don’t go for more than 2 or the most three nights at a time.
COlleges will also expect students to earn money for their education during the summer & that will be shown in their EFC, not necessarily in teh FAFSA EFC.
If families want to come up with that money themselves then that is certainly their perogative, but your EFC isn’t going to be lowered just because she opts out of loans or workstudy.
Students always think if their need is $20,000 and they put they don’t want work/study or loans, they will get a larger grant.
Doesn’t work that way.
ALso remember.
Most schools do not meet 100% of need.</p>

<p>She can always drop her job, if it is too much for her.
THe advantage with work study as opposed to an outside job is that while they both count for taxes, the work study job is financial aid & will not be added into available money for tuition.</p>

4

<p>Thank you all for your posts.</p>

<p>As she will be attending a state school, there will be little grant money offered, I am pretty sure. Nor do I expect her to get any scholarships because while she is good enough to get into the school, she is not THAT good. </p>

<p>The situation with the camping is that we camp at NYS parks. We do not have equipment/trailer, we camp with my elderly mother who would not sleep in a tent, and these cabins are extremely cheap (like only $250-300/wk.). The one and only problem with the NYS parks is that they require a week state during the summer. In fact, our first camping trip was to a private campground, and everyone I’ve seen also expects a week stay during peak season. We have often found that the first and last day of the trip is spent on packing and driving, so we do look forward to these trips. In the scheme of things, these trips cost so little in terms of the benefits that we have received. The one and only reason that there would be a problem is if my daughter worked a summer job and her boss gave her a hard time.</p>

<p>The other consideration is that if my daughter REALLY helped me with my business, I probably could greatly increase my income over that summer, and then the bills would get taken care of, we’d go camping. But I don’t think that I can trust her to do that. The plan last summer was for my daughter to participate in an athletic program (2 hrs/day), study for the SAT, and help me with my business. The only thing that actually did happen was that she did the program. She totally blew off the SAT. I cut back on work during the summer to make time for the kids (keep in mind, son is 8). I spent my mornings carting them to swimming and this athletic camp, and having lunch with them. But I did ask her to take her little brother to the park to do organized crafts and let him play, and she always gave me a hard time, although she did take him if I insisted. But the fact that I had to argue to get it was not really good for anyone. And ultimately, she somehow managed to not actually help me with my work either. Keep in mind though, I don’t regret taking the time, I think that this time that I took with the kids this summer was very beneficial for all of us and has had its own rewards. </p>

<p>I talked to my daughter this morning about how she feels about work-study and her answer is “I don’t know”, which is probably the most common phrase out of her mouth these days. Maybe she was just too tired, but the only concern that she really expressed was whether she’d be able to get out of it if it proves too much. Basically, it seems to me that she wants me to make this decision. </p>

<p>My daughter has no idea what she wants to do. But she is leaning towards sciences, so she could end up in a tough curriculum. I am inclined to think that for her first year, she should register for no more than 4 academic classes, unless there is a phys ed requirement, then I’d say go ahead and add that too. I would think that she could spend her morning in class, eat lunch, get in her workout, go to work study, go to dinner, and then have her evenings free for study, student clubs, and socializing. We really don’t know at this time if the student orchestras, chorus, etc. meet in the evenings or during the school day though. </p>

<p>I believe that the public college will meet full need. I thinking that if I check off “student loans only”, then she’ll get all loans. But maybe she can handle the work and she would have lost all chance to even try the work study. If I check off both “work study” and “student loans”, they will give work study and decrease the loans. So if she bails out of the work study, that would leave an unmet need of about 2000 during the year. Would she be able to change her financial aid to add a loan at that point?</p>

<p>I would give all of these things time to play out, but I want to get this FAFSA filed, and so this question is my only real problem.</p>

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<p>I am a big fan or work study … I believe it helps the student have some skin in the game paying for college. I also thnk it should be limited to 8-10 hours a week so it does not seriously impose on study/play time. Work study provides short-term incentive to do well in school without serious long-term consequences. (There is one big caveat to my comment … if a student has a big-time EC ( a varsity sport or a serious performing arts commitment) I would tend to try to skip the sork study if economically feasible).</p>

<p>I HATE kids having debt coming out of school. Loans certainly give kids skin in the game but also have a negative long-term impact on their lives. IF loans are necessary hopefully they will be relatively small loans.</p>

<p>So for me bottom line … I think work-study is much preferred over loans for students.</p>

6

<p>And I believe that many summer jobs can offer the flexibility to provide an unpaid week off if the employer is given notice well in advance. (Camp counselors notwithstanding.) My kids are lifeguards and that has proved to be wonderfully flexible summer work. They are able to work a full-time schedule and arrange for part-time guards to cover their shifts if they need/want some extended time off. Yes, you do have to get certified, but in our case it has been well worth it. As a matter of fact since our local rec department hires part-time guards, some years my kids have been able to do travel programs or work other jobs and still guard and make a very nice summer “living”. They have then used this money to cover their summer and school year personal expenses.</p>

7

<p>I agree with the posters about their feelings on debt. I, unfortunately, have my own substantial student loan debt. My own college choices were limited to my local state school (but could have done better). I always anticipated paying for the local state school for my daughter. But in choosing a state school that is non-local, this has tacked on room and board costs that I never anticipated. </p>

<p>However, I recognize that the local school is not the best school, nor the one that is best for my daughter. She will go to a top public school and she will not going into a school with a child or other baggage like I did either. I’m going to do all that I can to help her not leave with the burdensome loans that I did by the time that she graduates. </p>

<p>But I agree that she needs to accept some responsibility too. I really didn’t appreciate that she was not helpful last summer, and I think that it is time to grow up.</p>

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<p>runnersmom, when your children worked in the summer, did that negatively affect their award for the same year? If my daughter works this summer, or even starts now, I’m wondering if that money would be counted.</p>

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<p>When I was in college, some of my work-study jobs were fun; scraping plates in the dining hall is kind of gross, but if you’re with a bunch of other students you can talk to, it’s a social event.</p>

10

<p>W, unfortunately we don’t qualify for financial aid at all, but we felt that our kids needed to have some stake in this. So I can’t comment on whether working would impact your D’s financial aid awards, but I’m sure the others posters will know the answer to that question. If I remember previous discussions however, it appears that for many schools there is a factor of “student contribution” involved. I also read with interest what you said about your D’s previous summer with respect to your business, and I must say that the one summer my boys worked for their Dad they did not take it quite as seriously as the summers they worked for independent employers. We believed that if they were not doing something otherwise productive to their future (such as the summer my eldest studied in Vladivostok, Russia after his second year at college), they should be working. And in his case he got a job teaching English while he was there to supplement his spending and travel funds. The lessons learned by working for a non-family employer are invaluable.</p>

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<p>My grades went up when I started working ten hours a week. I think for most kids 10 hours a week gets them more organized, but is not a hardship. The jobs (working in the library) was on my resume for years and led to a number of other jobs in libraries.</p>

12

<p>My D’s work-study job is very important to her. Because it’s student oriented, she can adjust her hours a bit, depending on her workload. She works 6 to 10 hours a week in the Provost’s office. She is a junior and has had this job since her first semester as a freshman. To her mind she is building an employment resume more valuable than an internship, and since she knows the provost, and even the president of the college and her direct assistant, she is pretty sure she can garner good recommendation.</p>

<p>She does not, alas, does EC’s because of it’s time commitment.</p>

<p>She gave me money in her year between freshman year and sophomore. Last year it did not work out through no fault of hers really. She kept her provost job, was supposed to get subsidized housing, but she waited too long to apply because an internship was supposed to come through. However, although she didn’t use the money for her education, and I am proud of her that she was able to work full time, pay for her own NYC housing and her food. She really experienced being an adult.</p>

<p>This year all bets are off because she is spending a semester in London. Ouch! She isn’t working (needs visa which I suppose she could get) and with the dollar so weak I can’t keep her in money.</p>

<p>It will end like a Dickens novel I know; they will cart me away to the poor house…Stop me! I am digressing.</p>

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<p>*unfortunately, have my own substantial student loan debt. *</p>

<p>Right- didn’t you say you have a doctorate?
That must have added up.
Does your husband have school debt also?
As you posted earlier- you said your EFC was $3,000 according to calculators and if your actual EFC is double that, then $6,000 for an EFC is not really too bad.
Students can earn at least $3,000 summers without a lot of problem.\It also is not burdensome to graduate with $20,000 or so of debt.
If you don’t think she can cover that debt & have it paid off in 10 years or so, may I ask, " why is she planning on going to college"?</p>

<p>I think its important to remember that we always have choices and our choices have consequences.
We want to take a few weeks off at one time to go on vacation?
A choice
We want to vacation with our parents who make our vacation choices limited?
A choice.
We don’t want our kid to have loans, or to have to work or we want a doctorate?
A choice.
Its also important that we teach our kids they have choices, so they feel invested and involved in their own life.</p>

<p>You have a Phd. that is quite an accomplishment, Im sure it took alot of sacrificing & you had to make tough choices.
But remember that only 25% of people in your age group even have a B.A., let alone advanced study, yet they manage to send their kids to school too.</p>

<p>Im sure you can make it work- but you might need to reassess how your choices are impacting other choices you have available.</p>

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<p>It depends on where your D is attending school. </p>

<p>My D accepted $2500 work study for her freshman year (in addition to her loans, etc.) and because of the small size of her school and its rural location, she was barely able to get 5 hours a week of work (even trying to pick up for others who wanted time off), and at the end of an entire school year, her total was a measly $725. Not even 50% of what she’d agreed to, which meant additional out of pocket expense. </p>

<p>Work study $ isn’t a given, it’s more of a supposition. At least with a loan, you know that $ will be forthcoming.</p>

<p>Quick add - D has since transfered to another small LAC, but in NYC, and works part time (about 20 hrs a week), not part of work study. This has been a better choice…for her.</p>

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<p>Good point "just"aMom.</p>

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<p>when your children worked in the summer, did that negatively affect their award for the same year? If my daughter works this summer, or even starts now, I’m wondering if that money would be counted.</p>

<p>Some schools assume students will contribute $3,000 or so from summer jobs towards their costs- so it is already taken into consideration for EFC.
Other schools don’t have a seperate EFC for parents and students but while a summer paycheck may slightly increase their EFC, it wont be dollar for dollar, additionally students will be building work experience and ethic which can only improve their transition to the full time work force once they graduate.</p>

<p>Also if you are talking about the 2008-2009 school year, only income from 2007 is counted for aid purposes.</p>

17

<p>I’d go with 10 hours of work per week. It does provide structure. Depending on the location, it does not have to be a work-study job (this is a job that takes place on campus and is federally subsidized. I believe that the university pays something like 40% and the fed pays 60%). Some students work in restaurants or in shops. When I was a student, there was only one Chinese restaurant in Cambridge, MA. It was said that all the (Chinese) waiters were MIT students. I myself worked as a waitress one summer and made very good money in tips.</p>

18

<p>Anecdotal, but in my case work study was a phenomenal deal with far-reaching consequences. I managed to get a job at a research lab on campus starting as a spanking new freshman. I had the good fortune to have a family friend who also worked in the same field, and who gave me a letter of introduction to the head of the lab. However, what sealed the deal was that work-study allowed the lab to hire me for next to nothing, since the federal government covered most of my paycheck. That job lasted for four years, and eventually led to a permanent job in the same field upon graduation. This was a few decades ago, and may not be a possible given a student’s interests, or their school’s resources. But it’s another point to consider.</p>

19

<p>My S has the ususal loans and does the max allowed of work study, 20 hours a week. He also has a 2nd job of about 5 to 6 hours a week, that pays more per hour than the work study does. He also joined a fraternity. I don’t think he’s all that organized but some how he gets it all done and keeps his grades up. I think some of the benefits of a work study job is they will work around your school hours and many of them give you time to study. As a previous poster said above jobs in the “real” world pay more but their scheduling may not be so forgiving or understanding, as well as having to get transportation. I definitly feel that a student needs to help out financially as much as possible, after all it is their education. My S also works summers and works breaks, he is lucky that the place he worked through HS (grocery checker) will take him on during breaks. In some ways I wish I could provide him with a complete “free” education, but I can’t. He is really driven to succeed in his chosen career and I feel with all of his working contributions he will be better prepared for the ups and downs of the real world.</p>

20

<p>I worked 20-30 hours a week when I was in college and it was horrible. I think I am the only person who HATED college, simply because I had NO time at all for any of the fun things associated with the college experience. </p>

<p>My son works about 10 hours/week, plus 15 hours per semester of volunteer time (isn’t REQUIRED “volunteering” akin to conscription? I always hate that whole idea.) is required for one of his grants. He tutors first grade boys in math and is a monster on the Halloween Train in the college town. At 6’7", he makes a pretty formidible ghoul.</p>

<p>The 10 hours of work per week are very good for his grades. He’d just be goofing off then anyway.</p>

<p>I am concerned for Twin A and Twin B though, since they’ll not have time for much work if they fence in college.</p>