Work-Study Debt Offset Calculator
Example: Hourly wage: 14 $ · Hours per week: 12 hrs · Weeks worked per year: 30 weeks · Years of school: 4 years · Loan rate you would have paid (APR): 6.5 % · Loan term you would have used: 120 months
| Total earned over degree | $20,160 |
| Earned per year | $5,040 |
| Loan interest avoided | $7,310 |
| Total debt burden avoided | $27,470 |
Worked example
Working 12 hours a week at $14 an hour for 30 weeks earns about $5,040 a year, or $20,160 over four years. If that money would otherwise have been borrowed at 6.5% and repaid over 10 years, you also skip roughly $7,300 in interest, so the campus job cuts your total future debt burden by about $27,500 — far more than the wages alone suggest.
Frequently asked questions
What is federal work-study?
Federal Work-Study is a financial aid program that funds part-time jobs, often on campus, for students with financial need. Your earnings are paid to you and, unlike loans, never have to be repaid. You must file the FAFSA and be offered work-study in your aid package to participate.
Why count avoided interest, not just wages?
Money you earn instead of borrow saves you the interest you would have paid on that borrowed amount for years. That is why the true benefit of working is larger than your paycheck — this tool adds the interest you never have to pay on the debt you never take on.
Do work-study earnings hurt my financial aid?
Generally no in the way regular income can. Federal work-study earnings are treated favorably and are excluded from the income used to calculate your aid eligibility on the FAFSA, which is a key advantage over a normal off-campus job.
How many hours should I work?
Research suggests a moderate amount — often around 10 to 15 hours a week — can be managed without hurting grades, while too many hours can. Enter realistic hours you can sustain, and remember on-campus jobs are often built around class schedules.