This study examined the impact of participation and non-participation in a federal work-study (FWS) program on student persistence and accrued student debt for undergraduate students enrolled in a small, public, four-year, liberal arts college in the South. Sanford's (1967) theory of Challenge and Support and Tinto's (1986) Integration Model were used as theoretical frameworks for this study. This study implemented a quantitative design using existing student records from entering first-year cohorts of 2005, 2006, and 2007 to determine if any of the eight study variables had an effect on student persistence and accrued student loan debt for work-study eligible recipients. Two specific research questions guided the study: Do students who work in the FWS program persist at higher rates than students who are eligible for FWS but do not hold FWS positions? And do students who work in the FWS program accumulate less student loan debt than students who are eligible for FWS but do not hold FWS positions? The researcher found that participation in the FWS program directly related to persistence and loan debt. The study includes recommendations for policy and procedure development for increased investments in the FWS program. Furthermore, the inclusion of financial literacy and additional advising with financial aid counselors was also recommended. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://bibliotheek.ehb.be:2222/en-US/products/dissertations/individuals.shtml.]