Work StudyIt is important to know that work study can be affected by accepting student loans and vise versa. Please read the examples below to understand how Work Study may affect loan eligibility.
Example of Loans and Work Study not being affected
1. Ricky is eligible for awards amounting in $14,065 for the school year based on NIC Financial Aid Office calculations. Ricky is then awarded a Federal Pell Grant of $5,550. His remaining eligibility is now 8,515 (14065 – 5550 = 8515).
It is NIC Financial Aid Office Policy to initially award all students their maximum eligibility in a Subsidized Loan. Also, for the sake of this example, let's assume Ricky has been awarded an Unsubsidized Loan based on his submission of an Unsubsidized Loan Request Form. Because Ricky is a dependent freshman student, he is eligible for $3,500 in Subsidized Loans and $2,000 in Unsubsidized Loans for a total of $5,500.
Ricky now has 3,015 remaining in eligibility (8515 – 5500 = 3015).
It is also the NIC Financial Aid Office Policy to award a maximum work study award of $2,000.
In this case, Ricky would be able to accept his student loans and still be able to receive a work study award.
Example of Loans and Work Study affecting eligibility
2. Jenny is eligible for $8,000 for the school year based on NIC Financial Aid Office calculations. Jenny is then awarded the Federal Pell Grant of $1900. Her remaining eligibility is now 6,100 (8,000 – 1900 = 6,100).
Jenny is an independent sophomore and is eligible for $4,500 in Subsidized Loans. Here remaining eligibility is 1,600 (6,100 - 4,500). For the sake of this example, let's assume Jenny has been awarded an Unsubsidized Loan based on her submission of an Unsubsidized Loan Request Form and was awarded $1,600. At this point, Jenny has 0 eligibility remaining (1,600 – 1,600 = 0). Jenny would not be eligible for any work study funds because she accepted all of her loans.
If Jenny decided to decline all or a portion of her student loans she would have remaining eligibility and could be awarded work study.