How a Part-Time Job Can Affect Your FAFSA and Financial Aid Eligibility

A responsible student will typically look at the college costs and financial aid options, consider their need for work experience to enhance their resume, and begin the search for a part-time job for college students. After all, a part-time job means money, and as every college student can attest, it’s kind of important when paying for school and maintaining the student life. However, in some cases, a part-time job can hurt rather than help – financially speaking, that is. When it's time to find a part-time job, students should consider how much they’ll earn and how those earnings could affect FAFSA results. Get the why and how to make a part-time job work best for you and your financial circumstances below.

Can a Part-Time Job Reduce My Financial Aid?

As it turns out, a part-time job – or the earnings from a part-time job – can impact your FAFSA and financial aid eligibility. When the FAFSA is filed, it takes into account not only parental finances and contributions but also students' own financial situations. When a student includes their income on the FAFSA, it makes them appear less financially in need, which can reduce aid amounts. Though a college student may not be using their part-time job income to pay for college, the federal government will view the income as a means to pay for school – even though most students use their income to pay for living expenses, food, or transportation costs.

Protecting Your Financial Aid Eligibility While Working Part-Time

Fortunately, there are FAFSA income limits that protect students’ ability to work while maintaining eligibility for grants and scholarships. According to BestColleges, students can earn up to $7,040 per year without it impacting their FAFSA results. To make that much, a student would have to work at least 18 hours a week at minimum wage. With that in mind, calculate your expenses during the job search, not after you've secured a part-time job. Ask about pay rates and hours to ensure that the expected income will not exceed FAFSA thresholds that could reduce need-based aid like Pell Grants, work-study program or subsidized loans.

How to Shield Part-Time Income on Your FAFSA

If your earnings exceed the FAFSA income limit, there are ways to minimize the impact of your part-time job on financial aid. One strategy is to spend eligible funds before October 1, the date the FAFSA opens. For instance, if the student wants to buy a car for college, it’s best to do so earlier than October 1 of the year before they plan to file. Another option for students to contribute extra earnings to a 529 college savings account, in your parents’ name. Student income is assessed more harshly than parent income, and 529 accounts are considered a parent assets–meaning they count less against aid eligibility while still supporting college costs.

When to Ask for Financial Aid Help

Each student’s situation is unique. If you’re unsure how your part-time job affects financial aid, contact a financial aid officer at your college. They can explain how income is evaluated and, in some cases, adjust your Student Aid Index (SAI) or help you file a financial aid appeal to reflect your financial situation better. Don’t hesitate to ask for guidance; being proactive about your FAFSA can lead to a more accurate and favorable financial aid package.

Search for Part-Time Jobs That Support College Costs

In a survey, 85% of Fastweb members said tuition assistance is an important factor when job hunting. When searching, look for part-time jobs near campus or home and employers offering tuition reimbursement or education benefits. Working part-time while in college is smart; just be strategic about how your income affects your FAFSA to make sure your hard work doesn’t reduce your financial aid!