PAYING FOR COLLEGE

The U.S. Department of Labor indicates that over 85 percent of jobs require some type of education beyond high school.  Yet, tuition costs for higher education have doubled over the last ten years and are expected to double again over the coming decade.  AFGE members have an ally to help them understand the student aid process.  Union Plus Education Services is the resource you need in your search for information and funding for higher education. 

Why get a college degree?

Enrollment in colleges and universities is expected to increase to over 17 million by 2012.  More people each year decide to invest in their children’s (or their own) future.  Simply stated, college graduates are likely to earn much higher salaries. According to the Census Bureau, a bachelor's degree is worth about $1 million more during a work life than a high school diploma.

What is it going to cost to send my child to college?

Even if the only cost parents had to worry about was tuition that would be a high order. Tuition is usually the largest expense, but don’t forget about fees for technology or laboratory use, or the expenses associated with room and board, books and supplies, transportation and personal expenses. 

Parents and students are expected to pay a certain amount of the educational costs based upon the family’s financial circumstances.  The difference between the cost of attendance and the amount the student and parent are expected to pay (EFC-Expected Family Contribution) determines financial need. 

What is a FAFSA ?

The Free Application for Federal Student Aid or FAFSA is the most important form you must fill out in order to be considered for most need-based programs.  You will need the information from your tax return forms in order to complete this form.  You may apply by paper application or over the Internet, but you should submit this form as soon as possible after January 1 of the year that the student will begin college.  Forms can be obtained by calling 1-800-4-FED-AID, or by visiting www.fafsa.ed.gov.

What types of aid might I be eligible for upon completing the FAFSA?

There are four types of student aid available that can depend upon the information you supplied in the FAFSA:

•          Grants are free money (they do not need to be repaid) that are usually awarded by the government and are based upon financial need.
•          Scholarships also do not need to be repaid, but they are generally awarded to students who demonstrate or show promise of high achievement in academics, athletics, music, art or other areas. 
•          Work/Study Awards are payments earned by students who work on or off campus while attending school to help pay for school costs. 
•          Loans are borrowed money that must be paid back at a specific interest rate. 

What is the difference between a Subsidized Stafford Loan and an Unsubsidized Stafford Loan?

Federal Stafford Loans are long-term, low-interest loans made to a student by private lending institutions such as banks or credit unions, through a federal program administered by American Education Services (AES).  The student, not the parent, is responsible for repaying these loans. 

With subsidized loans, the federal government will pay the interest on a student’s loan while he/she is in school, during his or her grace period and during any deferments after payments have begun.  Students must demonstrate “financial need” according to government formulas in order to qualify for the interest subsidy benefits.  

“Need” is not a factor considered when the borrower applies for an Unsubsidized Stafford Loan; however, the borrower will be responsible for all interest on this type of loan from the date it is disbursed because the federal government does not pay the interest on the borrower’s behalf. 

Does AFGE have a scholarship program for my children or me?

Yes. AFGE Members, their spouses and dependent children (as defined under IRS regulations) can apply for one-time awards in amounts between $500 and $4,000.  Applications are available in September each year and must be postmarked by January 31 in order to be considered. Winners are announced in late May.

Members are also eligible for the JNS College Scholarship, established by the Executive Board of the AFGE to honor John N. Sturdivant, President of the AFGE from 1988 to 1997. Scholarships are awarded in amounts ranging from $500.00 to $1,000.00 per eligible individual for each year and are to provide assistance to attend the college degree program at the George Meany Center for Labor Studies.

Members can find out about the more than $4 million in union-sponsored scholarships and details about eligibility, application deadlines and contact information by visiting www.afge.org, click on “Member Benefits.

What if I still don’t have enough to cover the entire cost of my child’s education?

Federal PLUS Loans are available to parents who wish to borrow to help their children pay for their education.  A credit check is a requirement of this loan.  Payment of this loan begins upon disbursement. 

After all other aid has been secured, private or alternative loans can be considered to cover any additional necessary aid.  Private loans do not require school certification as other loans do, but they include some up-front fees and higher interest rates than federally backed loans do.  The interest rate and approval for this loan is based upon credit worthiness.  Students and parents should exhaust all other means of student aid before considering these loans.

Where can I get expert advice on the "going-to-college" process - from conducting career assessments to completing admissions forms?

Call toll-free 1-877-881-1022 to speak to a Union Plus financial aid counselor and fellow union member. Experts are on hand to answer your questions and guide you through the application process.  Or go visit www.afge.org, “Member Only” click on “Benefits”