How are you going to pay for your kids’ college tuition? The union can help!

As we noted two weeks ago when we told you about beneficial changes in 529 plans to help you save money for your children's college education, the two biggest areas of the economy that have outpaced the rate of inflation in recent years are the cost of medical care and college tuition. While members of our union do not have to worry about medical coverage for themselves and their family members, the rising cost of college tuition is a big concern. That's why members should keep in mind that there is help available through their membership in our union.

 

For starters, there is our union's scholarship programs. As all members should be aware, information on the annual Vito J. Pitta scholarship awards and the Hotel Trades Council Division A scholarships is published in Hotel Voice each January and February. There is also the Union Plus scholarship program, the details of which were published in last week's edition of Hotel Voice .

There is other help available for paying for college from the Union Plus program. Although Union Plus was forced to terminate its low-interest rate college loans due to the sub-prime mortgage crisis, it still provides plenty of information on other means to help your children attend college. For example, Union Plus offers a financial aid counselor that you can speak with at the following toll-free number: 1-877-881- 1022. The program's experts are on hand to answer members' questions and guide them through the application process. You can also access Union Plus on the web at unionplus.com. There is also information available there regarding FAFSA, the Free Application for Federal Student Aid (FAFSA).

Many consider FAFSA as the starting point for applying for almost all student financial assistance programs. For example, you need to complete the free application to receive any federal student aid. Many schools also use the FAFSA as part of their application process for nonfederal aid. To obtain a FAFSA application and thus to be able to begin the college financing process, visit the following website: fafsa.ed.gov/

You should also know that the federal Department of Education's website explains the purpose of the FAFSA questions and how to complete a FAFSA form. For information on this, visit studentaid.ed.gov. Here are some of the forms of college assistance you can learn about by visiting Union Plus on the web of calling them at 1-877-881-1022.

The Pell Grant: One of the most wellknown sources of aid is the Pell Grant, a scholarship that is awarded solely on the basis of financial need and that can be worth well over $5,000. The amount of the grant depends in part on the student's enrollment status and length of enrollment. The Pell Grant is a one-time award that does not need to be repaid. Please note that students must apply for Pell Grants no later than May 1, 2010 for the 2010-2011 school year.

Direct and FFEL Stafford Loans: These loans provide up to $3,000 per year for freshmen and sophomore students and $4,000 a year for juniors and seniors at interest rates that are quite reasonable. To be eligible for this loan, however, there must be evidence of financial need. Repayment begins six months after students leave school.

PLUS Loans (Loans for parents): Parents can obtain these loans to finance their children's undergraduate studies. Parents who apply generally will be required to pass a credit check. Interest rates are variable but will never exceed nine percent. There is a fee of up to four percent of the loan.

Consolidation Loans: A program where several federal loans from multiple lenders are combined into one loan to lower the monthly payment amount and/or extend the repayment period.

Federal SEOG: For undergraduates only. These are grants that do not need to be repaid. The grants are extended only to students with exceptional financial need. Priority is given to Federal Pell Grant recipients. The grants can range from $100 to $4,000 a year.

Federal Work Study: The program provides jobs on and off campus for undergraduate and graduate students.

Federal Perkins Loans: For undergraduate and graduate students with exceptional financial need. The interest rate is five percent. The loans are made by the schools themselves and students must sign a promissory note agreeing to repay. Again, for additional information on these programs and other sources of assistance for college students and their parents you can call the Union Plus financial aid counselor at 1-877-881-1022.

You can also directly access federal college aid and loan programs at this toll-free phone number: 1-800-4-FEDAID (1- 800-433-3243). It is the phone number for the Federal Student Aid Information Center and it is available to assist you Mondays through Fridays, from 9:00 a.m. to 8:00 p.m.