9 things you should know about work-study

Weighing the work-study option? It's a great way to get money for school without any repayment worries. But if your schedule's tight, it's also one more obligation.

Here are nine things to consider:

1. The job should be about more than money. You probably elected to try work-study because of the financial benefits, but it's a great opportunity to network, both for your campus life and career. "It's to assist the student in not only getting the financial reward but an employment experience as well," says Ronald W. Johnson, director of financial aid for UCLA and co-author of "Financial Aid for College: Understand and Plan Your Funding Options."

It's a good way to test-drive a career. "It can lead to a reinforcement of their career goals or help them to see different or new opportunities," says Johnson, whose work-study influenced his career path.

"I worked as a peer counselor in the financial aid office," he recalls. "Even though I was majoring in marketing, I decided this is the field I want to be in." And armed with that experience, he was able to get his first job after college in the career of his choice.

2. It could affect your insurance. If a student "earns too much it could put them in a position where they would no longer be qualified on the parents' health plan," says Stuart Sorkin, partner in Offit Kurman, a Maryland-based law firm.

Since that benefit alone is worth hundreds per month, you want to investigate before you sign up for work-study or any other type of job. "Check with the agent writing the policy to make sure that's not a problem," he says.

And when you ask, be sure to total up all income you might have made in the calendar year, from summer jobs to the part-time work you did on winter break to the maximum you could get from work-study.

3. You will owe taxes. "I hear a lot of people say, 'I don't have to pay taxes; I'm a student,'" says Barry Picker, of New York-based Picker & Weinberg CPAs. "No, you pay taxes like everybody else."

Before you start work, you have to fill out withholdings forms, just as with any job. This is something you want to look at carefully. Since you need the money now for living expenses, a refund at the end of the year isn't going to be that useful. At the same time, you don't want a bill at the end of the year, either.

So take the maximum amount of exemptions that you can. One thing to watch: Are your parents supporting you? If they are, whether or not they claim you on their taxes, you cannot claim yourself, says Picker.

But, he says, if your parents don't claim you as an exemption, you can claim your education tax credits. Bottom line: Talk to your parents before you fill out your paperwork.

4. You don't have to take the first work-study job you find. "The student usually has a degree of flexibility," says Johnson.

Interview for several that seem to meet your needs, whether it's a quiet place where you can get some studying done or something challenging in a career that sparks your interest.