Financial Aid 101 - The Federal Work-Study (FWS) Program

The Federal Work-Study (FWS) program provides part-time jobs for students with financial need to help them pay for their education. More than 3,400 schools participate in the Federal Work-Study program. In 2007, over 800,000 students received work-study aid.

The FWS Program provides funds that are earned through part-time employment to assist students in financing the costs of postsecondary education. Students can receive FWS funds at approximately 3,400 participating postsecondary institutions. Institutional financial aid administrators at participating institutions have substantial flexibility in determining the amount of FWS awards to provide to students who are enrolled or accepted for enrollment. Hourly wages must not be less than the federal minimum wage.

Financial need is determined by the Department, using a standard formula established by Congress, to evaluate the financial information reported on the FAFSA and to determine the expected family contribution (EFC). The fundamental elements in this standard formula are the student's income (and assets, if the student is independent), the parents' income and assets (if the student is dependent), the family's household size, and the number of family members (excluding parents) attending postsecondary institutions.

The EFC is the sum of:

• a percentage of net income (remaining income after subtracting allowances for basic living expenses) and
• a percentage of net assets (assets remaining after subtracting an asset protection allowance).

Different assessment rates and allowances are used for dependent students, independent students without dependents, and independent students with dependents. After filing a FAFSA, the student receives a Student Aid Report (SAR), or the institution receives an Institutional Student Institutional Student Information Report (ISIR), which provides the student's EFC.