CFDA Number: 84.033
Program Type: Formula Grants
Also Known As: Formerly known as College Work-Study Program

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: (1) a percentage of net income (remaining income after subtracting allowances for basic living expenses) and (2) 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 Information Report (ISIR), which provides the student's EFC.

FSA Handbook: Federal Work Study

Federal Work-Study (FWS) allocations are made to eligible institutions for the purpose of providing part-time employment to needy undergraduate and graduate students attending participating institutions. Institutional allocations are based on institutional requests for program funding under a statutory formula. Under the funding formula, funds are distributed to institutions, first, on the basis of the institution's base guarantee plus the pro rata share received during the 1999–2000 award year under the FWS Program and, then, on the basis of the aggregate need of the eligible students in attendance. Employers of FWS recipients must contribute 25 percent of the funding (except in the case of private, for-profit organizations, which must match 50 percent, and in the case of established criteria for which the matching requirement is waived). The U.S. Department of Education encourages colleges and universities to use FWS Program funds to promote community service activities. Institutions must use at least 7 percent of their Work-Study allocation to support students working in community service jobs, including: reading tutors for preschool age or elementary school children; mathematics tutors for students enrolled in elementary school through ninth grade; or literacy tutors in a family literacy project performing family literacy activities. Students receive FWS awards from participating institutions after filing the Free Application for Federal Student Aid (FAFSA) to determine their financial need and may be employed by: the institution itself; a federal, state, or local public agency; a private nonprofit organization; or a private for-profit organization.