USAA Employees: Unlock the Benefits of the Federal Student Grant Program for Your Family's Education

Most USAA 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 USAA 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

Featured Video

Articles you may find interesting:

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 USAA employee could secure may surprise you.

Finder.com, 2019

StudentAid.gov, 2020

What types of retirement savings plans does USAA offer?

USAA offers a 401(k) plan as part of its retirement savings options for employees.

How does USAA match employee contributions to the 401(k) plan?

USAA matches employee contributions up to a certain percentage, typically a dollar-for-dollar match up to a specified limit.

Can employees at USAA choose their investment options within the 401(k) plan?

Yes, USAA allows employees to choose from a variety of investment options within the 401(k) plan to suit their individual retirement goals.

What is the vesting schedule for USAA's 401(k) matching contributions?

USAA has a vesting schedule that determines how long an employee must work at the company to fully own the matching contributions made by USAA.

How can USAA employees access their 401(k) account information?

USAA employees can access their 401(k) account information through the USAA employee portal or by contacting the HR department.

Does USAA offer any educational resources for employees regarding their 401(k) plans?

Yes, USAA provides educational resources and workshops to help employees understand their 401(k) plans and make informed investment decisions.

What is the minimum contribution percentage required for USAA employees to participate in the 401(k) plan?

USAA typically requires employees to contribute a minimum percentage of their salary to participate in the 401(k) plan, which may vary by plan specifics.

Are there any fees associated with USAA's 401(k) plan?

Yes, USAA’s 401(k) plan may have administrative fees, which are disclosed in the plan documents provided to employees.

Can USAA employees take loans against their 401(k) savings?

Yes, USAA allows employees to take loans against their 401(k) savings, subject to specific terms and conditions outlined in the plan.

What happens to a USAA employee's 401(k) if they leave the company?

If a USAA employee leaves the company, they have several options for their 401(k), including rolling it over to an IRA or a new employer's plan, or cashing it out.