Healthcare Provider Update: Offers medical, dental, vision, prescription, disability, and life insurance, with full-time employees paying only 16% of total premium costs 3. As ACA subsidies phase out, American Waters low employee contribution rates and broad coverage make its plans a financially stable alternative to marketplace options. Click here to learn more
Most American Water Works employees have already heard of the Free Application for Federal Student Aid, or FAFSA, if they or someone they know has plans to attend a college, career school, or university. Last year, around 70% of families submitted a FAFSA to the Department of Education to secure financial assistance. But what many prospective and current students may overlook are the various federal grants awarded to students in need each year.
Granted value
Most federal grants, unlike loans, function as sources of funding. There are some exceptions, though. For example, if a student is awarded a grant, but withdraws from the program in which they’re enrolled, they may be required to pay back all or a portion of that grant.
Know your grants
The Department of Education offers multiple aid packages as part of the Federal Student Grant Program and all American Water Works employees should be aware of them. The following four are granted most often, and each has different requirements for eligibility. The information below applies to the 2023-2024 academic year:
- Federal Pell Grants - With a maximum award of $6,895, Pell Grants are reserved for undergraduate students who have exceptional financial need and have not earned a bachelor’s, graduate, or professional degree yet.
- Federal Supplemental Educational Opportunity Grants (FSEO) - FSEO Grants award a maximum of $4,000 to those who demonstrate exceptional need and have not yet earned a bachelor’s or graduate degree. FSEO Grants also give priority to Pell Grant recipients over other applicants.
- Iraq and Afghanistan Service Grants - These grants award a maximum of $6,895, and they’re only for students whose parent or guardian served in a branch of the U.S. Armed Forces and died while serving in Iraq or Afghanistan after the events of 9/11.
- Teacher Education Assistance for College and Higher Education (TEACH) Grants - TEACH Grants award a maximum of $4,000, and they’re reserved for students who are enrolled in teaching preparation programs and agree to teach for a minimum of 4 years at the elementary or secondary school level in a high-need field.
FAFSA Required
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No matter who you are or your financial situation, you may want to consider submitting a FAFSA. After all, the grants listed above do require recipients to have an application on file with the Department of Education. And who knows? The potential financial benefit that you as a American Water Works employee could secure may surprise you.
- Finder.com, 2019
- StudentAid.gov, 2020
What type of retirement savings plan does American Water Works offer to its employees?
American Water Works offers a 401(k) retirement savings plan to its employees.
How can employees of American Water Works enroll in the 401(k) plan?
Employees of American Water Works can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
Does American Water Works match employee contributions to the 401(k) plan?
Yes, American Water Works provides a matching contribution to employee 401(k) plan contributions, subject to certain limits.
What is the maximum contribution limit for the American Water Works 401(k) plan?
The maximum contribution limit for the American Water Works 401(k) plan is determined by IRS guidelines, which may change annually.
Can employees of American Water Works take loans against their 401(k) savings?
Yes, American Water Works allows employees to take loans against their 401(k) savings, subject to the plan’s terms and conditions.
What investment options are available in the American Water Works 401(k) plan?
The American Water Works 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.
When can employees of American Water Works start withdrawing from their 401(k) accounts?
Employees of American Water Works can start withdrawing from their 401(k) accounts at age 59½, or earlier under certain circumstances.
Is there a vesting schedule for employer contributions in the American Water Works 401(k) plan?
Yes, American Water Works has a vesting schedule for employer contributions, which determines how much of the employer match employees are entitled to based on their years of service.
How often can employees of American Water Works change their 401(k) contribution amounts?
Employees of American Water Works can change their 401(k) contribution amounts at any time, subject to plan rules.
Does American Water Works provide educational resources for employees regarding their 401(k) plan?
Yes, American Water Works provides educational resources and tools to help employees understand their 401(k) plan and make informed investment decisions.
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