Will my son's $1000/month job affect his FAFSA eligibility? (Gross vs. Net income confusion)

my kid works part time & still got fafsa $$ last yr. dont think $1000/mo is enuff to mess things up but not 100% sure

Student income IS assessed for FAFSA, but with the new FAFSA Simplification Act for 2024-2025, the impact is much less significant than before. Here's what you need to know: 1. FAFSA uses GROSS income (before taxes/deductions) 2. The student income protection allowance has increased substantially - for dependent students it's around $9,410 for the 2024-2025 application 3. Only 50% of student income above that protection allowance counts against aid So for your son earning $12,000/year ($1000 × 12 months), only about $1,295 would potentially impact his aid eligibility (($12,000 - $9,410) × 50%) That's a relatively small impact compared to the benefits of work experience and having income. The actual reduction in aid would likely be even less than this amount.

THEY WANT GROSS INCOME!! I made this mistake last year when my daughter started working and put her net income on FAFSA. Got flagged for verification and had to redo everything!!! Was a HUGE HEADACHE trying to get ahold of someone at financial aid office to fix it. Cost us weeks of delay and almost missed a deadline for school-specific scholarships.

I help families with financial aid planning, and this student income question comes up frequently. Your son should absolutely take the job - the benefits far outweigh any minor reduction in aid. One thing to remember: income reported on the 2025-2026 FAFSA will be from the 2023 tax year (prior-prior year). So if he's starting work in 2024, it won't affect his FAFSA until 2026-2027 application. Also, if he's struggling to get answers directly from Federal Student Aid, I've had clients have success using Claimyr (claimyr.com) to get through to FSA agents quickly instead of waiting on hold for hours. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ

my son earned way more than that (like $18k from his tech internship) and still qualified for some grants not just loans. dont overthink it. the work experience is WAY more valuable than whatever tiny aid adjustment might happen. employers want students with real work experience!!

Question sort of related to this thread - my daughter is starting school this fall and reported her 2022 income on FAFSA (about $8,000 from her part-time job), but she's not working her freshman year to focus on studies. Can we update her FAFSA to show zero income since that's what she'll actually have during college? Would that increase her aid?

Thank you everyone for the great advice! I'm going to encourage my son to take the job - sounds like the impact on his aid will be minimal compared to the benefits of working. Just to clarify what I learned: 1. FAFSA uses GROSS income (before taxes) 2. There's a protection allowance of about $9,410 3. Only 50% of income above that affects aid 4. They use prior-prior year tax info This community has been incredibly helpful!

As someone who just went through this process with my own child, I wanted to add one more point that might be helpful. Make sure your son keeps good records of his earnings throughout the year - pay stubs, W-2 forms, etc. When it comes time to fill out the FAFSA, having organized documentation makes the process much smoother. Also, if he does end up earning significantly more or less than expected, some schools will consider "professional judgment" adjustments to reflect current circumstances rather than just the prior-prior year income. It's worth asking the financial aid office about their policies on this. Good luck to your son with his new job!

Just wanted to chime in as someone who's been through this recently! My daughter worked part-time throughout high school and college, and we were initially worried about the same thing. The key thing I learned is that student income has much less impact than parent income on FAFSA calculations. One tip that might help - if your son can find work-study opportunities once he gets to campus, those earnings won't count against his FAFSA at all (as someone mentioned above). But even regular employment like what he's considering is totally fine. The work experience and financial responsibility he'll gain are invaluable, and $1000/month really shouldn't significantly hurt his aid eligibility. Also, don't forget that he can potentially claim education tax credits like the American Opportunity Tax Credit when he files his own taxes, which can offset some of the tax burden from his earnings. Best of luck to him with the new job!