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BUSINESS Friday 19 July 2019
A25

Will a summer job burn your financial aid for college?

By RYAN LANE depend on your entire fi-
NerdWallet nancial picture — but Pell
Associated Press Grant amounts and EFC
Roughly one-third of teen- are directly correlated.
agers have summer jobs, Currently, if you attend col-
according to the Pew Re- lege full time and have an
search Center. Some of EFC of $3,000, you’d qualify
these jobs may make you for a Pell Grant of $3,245,
very familiar with the let- provided the school’s
ters “SPF.” But every work- cost of attendance ex-
ing student should know a ceeds $6,195. If your EFC
different abbreviation to increased to $5,000, your
avoid getting burned: EFC. grant would decrease to
While you may be working $1,245. You can estimate
to help pay for college, the this potential effect on your
money you earn could af- situation with the U.S. Edu-
fect the financial aid you cation Department’s FAF-
receive. Here’s how. SA4Caster .
INCOME AND FINANCIAL DETAILS TO KNOW
AID If you make a lot of money,
Every student who wants you’ll want to understand
federal financial aid must the school year those earn-
complete the Free Appli- ings affect because the
cation for Federal Student FAFSA uses income infor-
Aid, or FAFSA. Colleges use mation from two years ago.
this information to calcu- In this June 20, 2019, photo a student walks past a mural in the library at Virginia Commonwealth “For a student who’s an
late how much a student University in Richmond, Va. incoming freshman, calen-
and their family can pay for Associated Press dar year 2017 is what is be-
school. This is known as the works with low-income, first- from the financial aid for- service workers according ing taken into account on
expected family contribu- generation students. mula — to a point. to the Bureau of Labor Sta- their FAFSA,” Keller says.
tion , or EFC. Need-based aid includes For dependent students, tistics. You’d have to work This wrinkle means college
The EFC considers the in- Pell Grants, which you don’t “The FAFSA wipes out any more than 630 hours to hit students close to graduat-
come and assets of parents repay, and subsidized fed- income earned at $6,660 the income maximum. ing who land high-paying
and students. In general, eral loans, whose interest or below,” says MorraLee That’s not likely over the jobs or internships would
those with more money the government pays while Keller, director of technical summer, but you could likely finish school before
pay more money — and you’re in school. Schools assistance for the National earn more than $10,600 by that money counts toward
may not qualify for more may also use the FAFSA to College Access Network, working 20 hours a week their EFC. Work-study jobs
desirable aid as a result. determine institutional aid, a nonprofit organization at that salary for the entire also don’t count toward
“Typically, students with awarding some scholar- in Washington, D.C. If you year. In that instance, the the amount of income stu-
higher EFCs won’t be eli- ships and grants based on exceed the maximum, the FAFSA would ignore $6,600, dents can earn. You could
gible for need-based mon- financial need. formula counts half the ex- and $2,000 of the remain- make $3,000 from a work-
ey,” says Lauren Brantley , STUDENT INCOME PROTEC- cess earnings. ing $4,000 would affect study job and $4,000 from
an eAdvisor for the College TION For example, say you your EFC. a summer job, but only the
Advising Corps , a nonprofit Penalizing working students worked at an ice cream It’s tough to say how much latter would go into the EFC
organization based in Cha- may sound unfair, but an- shop earning $10.45 an need-based aid that $2,000 calculation — keeping you
pel Hill, North Carolina , that nual earnings are excluded hour, the median for food could cost you — it would below $6,660.q
Weak Netflix results send US stocks lower

By DAMIAN J. TROISE ing solid financial results ings that easily beat ana-
Associated Press and helped lead technol- lysts’ estimates. Corporate
NEW YORK (AP) — U.S. ogy stocks higher. earnings are in full swing
stocks moved lower in early The sector held up the best and investors have been
trading on Wall Street Thurs- in the early going. Apple, cautiously assessing results
day after Netflix reported a Nvidia and Applied Materi- and company statements.
slump in new subscribers als also made solid gains. Only about 13% of S&P 500 In this June 19, 2019, file photo trader Steven Kaplan, right, works
and dragged down com- Banks led financial stocks companies have reported on the floor of the New York Stock Exchange.
munications companies. higher. BB&T rose 1.9% according to FactSet, and Associated Press
The streaming video ser- and SunTrust Banks rose analysts expect profits to
vice plunged after sub- 1.7%. Both reported earn- fall 2.4% overall.q
scriber additions fell far
below Wall Street forecasts
during its April-June period.
The communications sec- Two story luxury spacious Villa, located in the most
tor, which also includes High end gated community area of the island.
Walt Disney and Face- Villa consist of a separate 2 bedroom guest suite,
book, had the most severe Personal office, 4 bedrooms, 3 ½ bathrooms, hobby room
drop.
Health insurer UnitedHealth A spacious family room, formal dining room
Group led health care Gourmet kitchen, 3 cars garage
stocks broadly lower.
IBM rose 2.8% after report-