What is work-study? Everything you need to know about how this federal program can reduce the costs of college

Working a part-time job during college can help offset steep tuition costs and day-to-day expenditures like transportation and dining. But finding a job that allows for the flexibility you need to both earn some cash and concentrate on your studies isn't easy. That's where work-study comes in.

Work-study positions are employment opportunities for college students funded by federal (and occasionally state) sources. If you want to get a work-study job, you first have to qualify for a work-study award (e.g., $1,500). Then, you have to find an eligible work-study job to earn that award amount.

Sounds complicated? Don't worry — CNBC Select breaks down what you need to know about work-study and whether it's right for you.  

• How to apply for federal work-study
• What is the average work-study award?
• Where to find an eligible work-study job
• Is a work-study job right for you?
• Bottom line

The first step to getting work-study is finding out if you're eligible by filling out the Federal Student Aid (FAFSA) form. Although 3,400 secondary schools have a federal work-study program, not all schools do, so be sure to check with the financial aid offices at the schools you're interested in attending.

How much and whether you qualify for work-study depends on your financial needs and the availability of funds a college has.

While each state has its own deadline to submit a FAFSA application, applying sooner rather than later can increase your chances of eligibility and getting rewarded the maximum amount, as some aid programs get offered on a first-come, first-served basis. 

Filling out the form 

As you fill out the FAFSA, you should come across a box asking whether you'd like to be considered for work-study (you need to answer yes!). However, there's no guarantee you'll get a work-study award just because you asked for it. You'll find out if you qualify for work-study (along with other financial aid such as loans or grants) when you receive your Student Aid Report (SAR). This typically happens a few days after you submit your FAFSA online (or in 7-10 days if you used a paper application).

If you've been awarded a certain amount and decide to accept, you'll then have to find a work-study-eligible job and work enough hours to earn that amount.

How much you earn for work-study is dependent on your school's program, however, you are guaranteed to earn at least the federal minimum wage, which is $7.25 an hour. Depending on where you live, you could earn the state minimum wage if it's higher. 

The annual award amount can range from $1,000 to $4,000 for undergraduate students and up to $5,000 for graduate students, according to the University of Virginia. You can choose to either get paid by check, direct deposit or credit to your school account to cover college fees like tuition or room and board. 

According to the annual Sallie Mae report "How America Pays for College" 20% of families used federal work-study in 2022 as a source of funding for college with an average amount of $1,531 among users.  

Work-study jobs are commonly found on campus and can include roles like administrative assistant, library assistant or tutor. There can also be off-campus work-study jobs that involve community service work with nonprofit organizations or local elementary schools.   

Some colleges also have jobs that may relate to your field of study, which can help you get some early firsthand experience in your possible future profession. You can contact the career center or financial aid office on campus to see what your school offers.   

Whether you choose a work-study job, or a regular part-time job depends on how much you want to work and how much you need to earn. A work-study job can give you the flexibility to juggle schoolwork and a job since your hours are typically designed to work around your class schedule.  

The big drawback of a work-study job is that you can only earn up to your award amount for the year. If that's not enough for your budget, you might want to get a regular part-time job instead. Just remember that the income you earn from a job not associated with a work-study program could count against you when it comes to qualifying for financial aid.

But regardless of what type of job you choose, you should also have a high-yield savings account to store any extra money you earn (if possible). Our top pick for a high-yield savings account with no monthly fees is the Marcus by Goldman Sachs High Yield Online Savings, which currently offers a 3.40% APY.

The SoFi Checking and Savings also offer a valuable welcome bonus: after you set up and receive direct deposit payments with the welcome bonus you can earn $50 or $400.

A work-study job can be a great option for qualifying college students who are seeking financial assistance. While you may be limited to the amount you're awarded, it can help reduce your reliance on student loans without affecting your student aid package.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal finance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best products.

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