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Author Topic: How does working 1L and 2L summer affect financial aid?  (Read 1388 times)

bachismo

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How does working 1L and 2L summer affect financial aid?
« on: August 03, 2006, 06:31:15 PM »
I'm interested to know if schools (specifically Michigan) reduce their financial aid package, and if so by how much, if a student works at a big law firm and makes big $.

greengrl

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #1 on: August 03, 2006, 11:28:39 PM »
I'm interested to know if schools (specifically Michigan) reduce their financial aid package, and if so by how much, if a student works at a big law firm and makes big $.

financial aid is contingent on your declared income. if you are only making money for three months, it's not going to make a large enough difference to dramatically off set your financial aid needs. If you make a LOT of money then you might have your subsidized financial aid reduced a bit and your unsubsidized slightly increased but nothing that's going to be that drastic. Your EFC won't change enough to make your total contribution so large that you wouldn't be able to get loans to cover the whole cost of tuition.  Does that make sense??

simple--you'll be fine.


moonpie

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #2 on: August 04, 2006, 05:44:11 AM »
uh..i have a hard time thinking a school is going to offer the same aid package to the student who makes 3,000/wk at a firm for 10 weeks, and the student who makes 500/wk at an NGO for the same amount of time.

Clearing 30k like that could seriously muck about with EFC stuff; the danger isn't not being able to get loans at all, but losing out on the subsidized ones and any financial aid.

bachismo

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #3 on: August 04, 2006, 08:44:53 AM »
I wasn't really concerned about not being able to get loans, as there seems to be tons of companies willing to make me an indentured servant.  But when calculating how much debt you'll end up with, how do you estimate how much your summer earnings will actually reduce your debt.  If the school reduces your grant package significantly because you earned $25,000 for the summer, then it may not even be worth it to take a firm job. 

queencruella

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #4 on: August 04, 2006, 08:58:42 AM »
I wasn't really concerned about not being able to get loans, as there seems to be tons of companies willing to make me an indentured servant.  But when calculating how much debt you'll end up with, how do you estimate how much your summer earnings will actually reduce your debt.  If the school reduces your grant package significantly because you earned $25,000 for the summer, then it may not even be worth it to take a firm job. 

Taking the job isn't just about the money though- it's about possibly getting a job later. If you want to work at a big firm, you'd be silly to pass up a summer associate position where they wine and dine you and try to make you think that working in a big law firm is all fun and games. I don't think this is something most people are considering because very few people receive grants around the $25K range. If you're just getting a $10K grant, chances are that you'll be able to contribute more than that from the $25K you made during the summer.

smiley

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #5 on: August 04, 2006, 12:54:36 PM »
Since you are asking specifically about Michigan, I know Michigan uses some kind of formula to assess one's financial need. For Michigan you do have to fill out NeedAccess, which asks not only your info that will be on that year's FAFSA, but asks for projected income for the coming summer and the next school year after that. So, if you're filling out the NeedAccess in January or February or whenever, and you already have a 1L firm job lined up for the summer, I would think you need to plug that into the NeedAccess and your grants from the school might decrease. Michigan financial aid also says specifically they expect each student to save and be able to contribute at least $2500 from their summer employment. I do expect my grant to decrease next year if I am able to get one of those coveted 1L jobs, but hopefully be able to make enough and save enough to offset the difference. I think Queencruella is right that taking the firm job would always be worth it, even if the financial aid gets skewed a bit. Michigan says the formula to determine need is applied in the same way to everyone, but I know of people who had lower EFCs than I did who got less grant money. So it depends if you can be declared independent of your parents (which for Michigan is 5 years of not being claimed by your parents), it depends if you have a working spouse, all of that could contribute.

SanchoPanzo

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #6 on: August 04, 2006, 08:03:41 PM »
If Iím remembering correctly, at my school you can make up to a certain amount that the school won't touch. It's about 10 grand. Anything above that is fair game. This is important because if you have grants, those will be the first to go. Of course, this is probably no reason to turn down a well paying cushy job where they wine and dine you for weeks.
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Steve.jd

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #7 on: August 16, 2006, 11:01:46 PM »
I'm interested to know if schools (specifically Michigan) reduce their financial aid package, and if so by how much, if a student works at a big law firm and makes big $.

it varies by school, but there is a good chance your fin aid will be affected.

At my school, a certain amount is fine (like 9 or 10k), anything after that the school adds 90 cents of every dollar you earn to your expected contribution and subtracts that from grants (if any).
HLS '09

Towelie

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #8 on: August 18, 2006, 11:30:37 PM »
Some schools do (Georgetown, for example), others don't (Penn, Columbia, Northwestern.) It really depends. Since Penn's grant amount won't go down even if I get an awesome summer job, I figure that even though they offered me $25k less than Gtown, I may be able to make that up.
Penn Law '09

Towelie

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Re: How does working 1L and 2L summer affect financial aid?
« Reply #9 on: August 18, 2006, 11:38:50 PM »
Michigan told me that they will re-evaluate my need-based grant money every year.  I'm not sure what percentage of what you make will be taken from your grant, however.

Yeah, that basically means whatever grant you have been offered in your second and third year will almost definitely go down. This makes sense, of course, but I do love the schools that let you keep your award no matter how much you make.
Penn Law '09