Let’s Look at the Issues
In this edition of Hotel Voice we announce the rapidly-approaching deadline for Union Plus scholarships. This program should not be confused with the Vito J. Pitta scholarship program, which has awarded more than $7 million in scholarships to children of Hotel Trades Council members since its inception in 1987, nor should it be confused with the Hotel Trades Council Division A scholarship program which last year awarded the largest amount of college grants in its history. Request forms for applications for the Vito J. Pitta scholarships will be published later this month in Hotel Voice, and request forms for applications for Hotel Trades Council Division A scholarships will be published after that.
Our Union has always encouraged members to send their children to college. Besides publishing information on scholarships available to your children through your union membership, we often provide other information to assist you in sending your children to college. There’s a reason for this. Going to college makes a lifelong difference.
In the most recent report issued by the U.S. Census Bureau that measured differences in income levels, it was revealed that the average gap in earnings between adults with college degrees and those with high school diplomas is almost $28,000 a year. According to this data, college graduates earned an average of $63,700 in 2012, the most recent year measured, compared with $35,800 for adults with a high school diploma. That’s a hefty difference, and it is solid evidence that a college degree is crucial for success in the job market young people face today. The report contained other solid evidence of the value of education. It showed that those without a high school diploma or GED earned an average of only $25,200 a year, but that those with advanced college degrees earned nearly $100,000. These differences in income applied to both men and women and across the board for all racial and ethnic groups. We should add that the New York Times has twice reported in the last year that college graduates under 30 years of age have a much lower unemployment rate than high school graduates in that same age group.
With statistics like these, no one can deny the value of a college education. At the same time, however, no one can deny that the cost of college tuition is quite high. In fact, along with the cost of health care, the cost of college education has risen well above the annual rate of inflation during the last 15 years. That’s why we think it is important to provide the following information to those of you who have children planning to attend college.
If your child is planning to enter college in the fall of 2014 or if you are planning to attend college yourself, now is the time to apply for financial aid by filling out a form known as the Free Application for Federal Student Aid, or FAFSA. You can find this form online at fafsa.ed.gov
We are told that the earlier you complete the form, the more likely you are to have a head start on the aid money that is available. This year it is estimated that $170 billion in college tuition aid will be available. At the FAFSA website you can determine if you or your child are eligible for college aid and, if so, how much aid you are eligible to receive.
Filling out the FAFSA form can pay strong dividends. As an example, it is estimated that as many as two million people who did not file a FAFSA form last year would have been eligible for a Pell Grant, which can provide college students with up to $5,550 a year and does not have to be paid back to the federal government. In addition, some of your children may qualify for the SEOG program — federal government grants up to $4,000 that also do not need to be repaid. SEOG grants are extended to students with exceptional financial need, and priority is given to federal Pell Grant recipients. But, remember, you cannot qualify for either a Pell Grant, the SEOG program or most other financial assistance programs without filling out a FAFSA form.
There are also low-cost student loans and work study programs available from the government and other sources. There is a good deal of information on college loans and grants available to you through your union membership at the Union Plus website (unionplus.org). In addition, you can 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.
We know that college education is expensive, but we also know that it is very valuable investment. If you have a child who is a graduating high school senior planning to attend college in the fall, please take the steps needed right now to help them obtain the financing they need. Those who are eligible must apply for the Union Plus scholarship by January 31 and should look in upcoming editions of Hotel Voice for eligibility information forms for the Vito J. Pitta scholarship competition and the Hotel Trades Council Division A program. But remember, there is plenty of other help available, even to students that don’t win a scholarship, and it all begins by filling out a FAFSA form and learning about the other types of student aid that are available.
