Healthcare Provider Update: Offers HDHP plans with HSA contributions, dental, vision, and supplemental insurance options 9. As ACA premiums surge, Cabots high-deductible plans paired with HSA support provide a tax-efficient way to manage healthcare expenses and avoid marketplace volatility. Click here to learn more
Most Cabot 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 Cabot 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 Cabot employee could secure may surprise you.
- Finder.com, 2019
- StudentAid.gov, 2020
What is the primary purpose of Cabot's 401(k) plan?
The primary purpose of Cabot's 401(k) plan is to help employees save for retirement by allowing them to contribute a portion of their salary on a pre-tax basis.
How can employees enroll in Cabot's 401(k) plan?
Employees can enroll in Cabot's 401(k) plan by completing the enrollment process through the company's benefits portal during the enrollment period or after they become eligible.
What is the eligibility requirement for Cabot's 401(k) plan?
Employees at Cabot are generally eligible to participate in the 401(k) plan after completing a specified period of service, typically outlined in the employee handbook.
Does Cabot offer any matching contributions to the 401(k) plan?
Yes, Cabot offers a matching contribution to the 401(k) plan, which is designed to encourage employees to save for retirement.
How often can employees change their contribution rates to Cabot's 401(k) plan?
Employees can change their contribution rates to Cabot's 401(k) plan at any time, subject to the plan's guidelines.
What investment options are available in Cabot's 401(k) plan?
Cabot's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.
Can employees take loans against their 401(k) balances at Cabot?
Yes, Cabot allows employees to take loans against their 401(k) balances, subject to the terms and conditions of the plan.
What happens to Cabot's 401(k) plan if an employee leaves the company?
If an employee leaves Cabot, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Cabot plan if eligible.
Are there any fees associated with Cabot's 401(k) plan?
Yes, there may be administrative fees and investment-related fees associated with Cabot's 401(k) plan, which are disclosed in the plan documents.
How can employees access their 401(k) account information at Cabot?
Employees can access their 401(k) account information through the online portal provided by Cabot's plan administrator.
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